BOARD MEETING DATE: July 11, 2008
AGENDA NO. 37

RECOMMENDED ACTIONS:

Receive and file.
 

Michael D. Antonovich
AQMD Representative on MSRC

MSRC’s Annual Offsite Retreat with its Technical Advisory Committee

The MSRC conducted its annual joint offsite retreat with its Technical Advisory Committee on Monday, June 30, 2008, at the Port of Long Beach. The MSRC heard presentations about the Port’s goods movement activities, its Green Port Policy, its Clean Air Action Plan (CAAP) intended to reduce 45% of San Pedro Bay pollution in the next five years, its new truck and infrastructure fees intended to generate incentive monies to implement the CAAP strategies, and its security framework and measures. The MSRC’s Outreach Coordinator—The Better World Group—also provided an update on regulatory and legislative issues of the day affecting the MSRC’s goals and future work programs. The MSRC and its Technical Advisory Committee along with MSRC staff also went on a boat tour to see first hand some of the Port activities, such as electrified cranes moving cargo containers onto ships. Discussions on options on allocating the remaining FY 2008-09 Work Program dollars will be considered by the MSRC at its next meeting.
 

Election of New MSRC Vice-Chair

Annually the MSRC elects its chair and vice-chair. At its May 15, 2008 meeting, the MSRC elected its new chair but postponed election of its vice-chair. On June 30, 2008, the MSRC unanimously elected Mr. Greg Winterbottom as its new vice-chair. Mr. Winterbottom represents the Orange County Transportation Authority on the MSRC, and a few years ago he served as the MSRC chair.
 

FY 2008-09 AB 2766 Discretionary Fund Work Program

At its June 30 and July 3, 2008 meetings, the MSRC approved contract awards and thereby established the elements and funding levels for its Partial FY 2008-09 AB 2766 Discretionary Fund Work Program, as follows:

1. Incentives for Alternative Fuel Heavy-Duty Engines for On-Road Vehicles totaling $4,861,627;
2. Local Government Match Program projects totaling $1,189,435;
3. Alternative Fuel Infrastructure Funding Opportunities totaling $5,186,600; and
4. Conversion of Taxicabs to Dedicated CNG totaling $225,000;

It is anticipated that the remaining elements of the FY 2008-09 Work Program will be considered by the MSRC at its next meeting and brought to the AQMD Board for consideration in September 2008. The Partial FY 2008-09 Work Program will be considered by the AQMD Board at its July 11, 2008 meeting.
 

Re-Affirm and Clarify Local Government Match Awards under FYs 2007-08 & 2008-09 Work Programs

Under its FY 2007-08 Work Program, the MSRC released a $3 million Local Government Match Program Announcement to provide a dollar-for-dollar match to local governments for heavy-duty alternative fueled vehicles, alternative fuel infrastructure, and installation of vehicle management systems to perform remote monitoring and diagnostics of vehicle emission control systems. The Program Announcement included a $75,000 per entity cap and a geographic minimum of $375,000 per county. Thirty eligible applications were received totaling $4,189,435. At its May 15, 2008 meeting, the MSRC unanimously approved funding all but one application, using $3 million from the original FY 2007-08 allocation and designating $1,189,435 as part of the FY 2008-09 Work Program funding to fund the backup list. The remaining application was also submitted under the Alternative Fuels Infrastructure Program, and is recommended for funding under that solicitation. The MSRC recognizes that the funds from the FY 2008-09 Work Program, which were used to fund the backup list, cannot be committed through contracts until the funding is received. On June 30, 2008, the MSRC re-affirmed and clarified these 29 awards would be funded using the original $3 million allocation in the FY 2007-08 Work Program plus $1,189,435 as part of the FY 2008-09 Work Program. These awards will be considered by the AQMD Board at its July 11, 2008 meeting.
 

FYs 2007-08 & 2008-09 Awards for Alternative Fuel Infrastructure Projects

The MSRC’s FY 2007-08 Alternative Fuel Infrastructure Funding Opportunities Program set aside $2.5 million for new, upgraded, or expanded alternative fuel stations as well as maintenance facility modifications. Twenty-nine proposals totaling more than $8 million were received; one from OCTA was subsequently withdrawn. The MSRC postponed action on these awards at its May 15, 2008, meeting because of a lack of quorum after abstentions. On June 30, 2008, as a committee of the whole, due again to a lack of a quorum for this item, the MSRC considered alternative fuel infrastructure project awards based on the recommendations of its Technical Advisory Committee. As a committee of the whole, the MSRC unanimously approved 28 awards totaling $7,686,600, using the $2.5 million originally allocated for this category under the FY 2007-08 Work Program plus $5,186,600 as part of the FY 2008-09 Work Program. At a special MSRC meeting on July 3, 2008, a quorum of the MSRC ratified these actions. These awards will be considered by the AQMD Board at its July 11, 2008 meeting.
 

FY 2008-09 Alternative Fuel Heavy-Duty Engine Incentives Awarded

As part of its FY 2007-08 Work Program, the MSRC had released a $1.5 million Program Announcement for the purchase or repower of heavy-duty on-road vehicles with advanced low-emission natural gas engines certified by CARB at or below 0.2 g/bhp-hr NOx emission levels. More than $12 million in projects were received. The MSRC previously awarded the $1.5 million originally allocated for this category to nine proposers. On June 30, 2008, the MSRC considered the backup list for this category, and unanimously approved augmenting the nine contracts previously awarded to provide full funding for each project as well as funded six additional contracts. The augmentations and new awards total $4,861,627 and were approved as part of the FY 2008-09 Work Program. These awards will be considered by the AQMD Board at its July 11, 2008 meeting.
 

Sole-Source Award under FY 2008-09 Work Program for CNG Taxicabs

The City of Long Beach has been proactive in promoting alternative fuel vehicles and have been in discussion with its taxicab service company, Administrative Services Co-Op/Long Beach Yellow Cab, on how to convert its taxicabs from traditional fuel to CNG. While the City of Long Beach intends to provide its service company funding for these conversions, additional funding is needed. At its June 30, 2008 meeting, the MSRC considered a sole-source award to Administrative Services Co-Op/Long Beach Yellow Cab and unanimously approved awarding $225,000 to provide up to $15,000 per vehicle for the conversion of 15 taxicabs to dedicated CNG. This award qualifies as a sole source because the entity is the only permitted entity authorized to operate cabs in the Long Beach area and the project involves multi-agency funding. This award will be considered by the AQMD Board at its July 11, 2008 meeting.
 

Adoption of FY 2008-09 Administrative Budget including Budget Transfer and Augmentation of Technical Advisor’s Contract

Administrative costs for the AB 2766 Discretionary Program are limited to five percent annually per statute. Every year the MSRC adopts an Administrative Budget for the upcoming fiscal year to ensure costs remain within this limitation. On June 30, 2008, the MSRC adopted its FY 2008-09 Administrative Budget in the amount of $672,821, which is more than $67,000 below the usual 5% cap. While the Administrative Budget is adopted annually by the MSRC, expenditures are not directly drawn from the MSRC fund account, but are taken directly from the AQMD’s budget and subsequently reimbursed from the MSRC fund account. On June 30, 2008, the MSRC approved a fund transfer for FY 2008-09 in the amount of $58,876 to the AQMD Science & Technology Advancement Budget for miscellaneous direct and travel costs. Staff will track expenses throughout the year, report to the MSRC on actual expenses, and any unused monies will be transferred back to the MSRC’s fund account (Fund 23) at the end of the fiscal year. A similar process is followed when the AQMD receives grant funds from other agencies or organizations. As part of the adoption of the FY 2008-09 Administrative Budget, the MSRC also specifically approved an allocation or augmentation to its Technical Advisor’s contract in the amount of $15,000. The Technical Advisor’s contract is paid, in part, from the Administrative Budget. These funds will be used towards a subcontractor to perform contracts assistance to MSRC staff on an as-needed, task order basis. The AQMD Board will consider the fund transfer and Technical Advisor’s contract augmentation at its July 11, 2008 meeting.
 

Issuance of New/Replacement Contract

The MSRC awarded the City of La Canada Flintridge $20,000 to purchase a heavy-duty CNG bus. In July 2007, the MSRC authorized a one-year contract term extension, contingent upon the City executing an agreement within six months with an agency on whose purchase they would “piggyback.” The executed modification included a clause automatically terminating the contract if the City did not meet a January 19, 2008, deadline for submission of the piggyback agreement. The City was unable to meet this deadline and requested the MSRC authorize a replacement contract to complete the project. At its June 30, 2008 meeting, the MSRC unanimously awarded a new contract to the City of La Canada Flintridge with a contract term of 24 months to complete this work. The AQMD Board will consider this new/replacement contract at its July 11, 2008 meeting.
 

Contract Modification Requests

At its June 30, 2008 meeting, the MSRC considered seven contract modification requests and took unanimous action, as follows:

1. For CR&R Inc. Contract #MS04039, which provides $436,168 towards the purchase of 30 LNG refuse trucks, approval of a six-month, no-cost contract term extension;
2. For County of Los Angeles, Department of Public Works, Contract #ML05013, which provides $313,000 for signal synchronization and traffic control system integration, approval of a one-year, no-cost contract term extension;
3. For City of Inglewood Contract #ML05026, which provides $60,000 towards the purchase of two CNG transit buses and a pothole patcher, approval of a six-month, no-cost contract term extension;
4. For Los Angeles County Metropolitan Transportation Authority Contract #MS04056, which provides $120,000 to enhance the regional rideshare database, approval of a six-month, no-cost contract term extension;
5. For County of Los Angeles, Department of Public Works, Contracts #PT05055 and #PT06005, which provided $212,500 and $193,500, respectively, for diesel exhaust after-treatment retrofits, approval of the deadline for installation from 24 to 28 months from contract execution;
6. For County of Los Angeles, Department of Public Works, Contract #ML06054, which provided $175,000 towards the purchase of seven heavy-duty LPG vehicles, approval to reduce the quantity of vehicles from seven to six as well as the substitution of CNG vehicles for three LPG vehicles; and
7. For A-Z Bus Sales Contract #MS08003, which provides funding for alternative fuel school bus incentives, a contract value increase of $360,000; the AQMD Board will consider this last modification at its July 11, 2008 Board meeting.
    

Contracts Administrator’s Report

The MSRC's AB 2766 Contracts Administrator provides a written status report on all open contracts from FY 2000-01 through the present. The Contracts Administrator’s Report for the month of June is attached for your information.

Attachment (pdf 208 kb)

Contract Administrator’s Report