BOARD MEETING DATE: May 2, 2008
AGENDA NO. 14

RECOMMENDED ACTIONS:

1. Approve new/replacement contract, as part of FY 2003-04 Work Program, with Riverside County Transportation Commission (RCTC) in the amount of $225,000 to enhance the region’s rideshare database systems through the creation of a direct communications link between RCTC’s RidePro system and the Los Angeles County Metropolitan Transportation Authority’s (MTA’s) TripMaster, as described in this letter;
2. Approve contract modification with Raymond J. Gorski (Contract #MS05071) to make reimbursement of indirect costs relating to continued maintenance and hosting of the BikeMetro website an allowable expense, under the FY 2004-05 Work Program, as described in this letter;
3. Approve a sole-source contract with RCTC in an amount not to exceed $200,000 to upgrade and migrate the existing BikeMetro website into the regional CommuteSmart.info website, under the FY 2006-07 Work Program, as described in this letter;
4. Approve augmentations totaling $128,019 for four contracts/awards under the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program as part of the FY 2006-07 Work Program, as described in this letter and as follows:
   1. Augmentation of award/contract with Griffith Company in an amount not to exceed $66,800;
   2. Augmentation of award/contract with County Sanitation Districts of Los Angeles County in an amount not to exceed $16,919;
   3. Augmentation of award/contract with SKANSKA in an amount not to exceed $36,400; and
   4. Augmentation of award/contract with Sukut Equipment in an amount not to exceed $7,900.
5. Approve the award of nine contracts totaling $1,499,998 for the Alternative Fuel Heavy-Duty Engines for On-Road Vehicles Program under the FY 2007-08 Work Program, as described in this letter and as follows:
   1. A contract with the City of San Bernardino in an amount not to exceed $183,696 for the purchase of up to 13 heavy-duty, low-emission natural gas vehicles;
   2. A contract with Yosemite Waters in an amount not to exceed $180,000 for the purchase of up to 6 heavy-duty, low-emission natural gas vehicles;
   3. A contract with Burrtec Waste Industries in an amount not to exceed $211,956 for the purchase of up to 15 heavy-duty, low-emission natural gas vehicles for their Azusa location;
   4. A contract with Burrtec Waste Industries in an amount not to exceed $211,956 for the purchase of up to 15 heavy-duty, low-emission natural gas vehicles for their Saugus location;
   5. A contract with United Parcel Service in an amount not to exceed $141,304 for the purchase of up to 10 heavy-duty, low-emission natural gas vehicles;
   6. A contract with Diversified Truck Rental in an amount not to exceed $141,304 for the purchase of up to 10 heavy-duty, low-emission natural gas vehicles;
   7. A contract with Los Angeles World Airports (City of Los Angeles) in an amount not to exceed $409,782 for the purchase of up to 29 heavy-duty, low-emission natural gas vehicles;
   8. A contract with Orange County Transportation Authority (OCTA) in an amount not to exceed $10,000 for the purchase of up to 20 heavy-duty, low-emission natural gas vehicles; and
   9. A contract with Green Fleet Systems in an amount not to exceed $10,000 for the purchase of up to 30 heavy-duty, low-emission natural gas vehicles.
6. Approve the award of two contracts totaling $1,000,000 for the Heavy-Duty Natural Gas Off-Road Cargo Handling Equipment Program under the FY 2007-08 Work Program, as described in this letter and as follows:
   1. A contract with California Cartage Company in an amount not to exceed $500,000 for the purchase of up to 13 heavy-duty, low-emission natural gas yard tractors; and
   2. A contract with United Parcel Service in an amount not to exceed $500,000 for the purchase of up to 13 heavy-duty, low-emission natural gas yard tractors.
7. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
8. Authorize the Chairman of the Board to execute new and modified contracts under FYs 2003-04, 2004-05, 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.
    

Gwenn Norton-Perry
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the Board.

FY 2003-04 Work Program
As part of the FY 2003-04 Work Program, RCTC was awarded a contract for $225,000 to enhance the region’s rideshare database systems through the creation of a direct communications link between RCTC’s RidePro system and MTA’s TripMaster. The direct communications link will allow transit itineraries to be requested and published on RideGuides created by the regional ride matching database system, as well as facilitating the access of transit itineraries through the CommuteSmart.info website. In January 2008 the MSRC approved RCTC’s request for a six-month contract term extension, but RCTC was unable to return the signed contract modification before the contract expired on February 28, 2008. On April 17, 2008, the MSRC considered a new/replacement contract for RCTC as part of the FY 2003-04 Work Program. Further details are described below in the Proposals section.

FY 2004-05 Work Program
As an element of their FY 2001-02 Work Program, the MSRC co-funded the development of a web-based bicycle routing and mapping system. GeoPerception, Inc., the developer of the BikeMetro website, was required to provide website hosting and maintenance for a period of five years. This contractual obligation ended in March 2008. Recently, the MSRC was contacted by Surf Consulting, which has been performing BikeMetro hosting and maintenance on behalf of GeoPerception since October 2005. Surf Consulting sought direction concerning the MSRC’s desires relative to the possible continued availability of BikeMetro to the South Coast’s cycling community. The cost for follow-on website hosting services has been quoted by Surf Consulting at $400.00 per month. This cost would include website hosting and minor maintenance only.

In a separate recommended action in this letter, the bicycle routing and mapping capability included in BikeMetro is currently recommended to be migrated to the regional CommuteSmart.info website under a contract to the Riverside County Transportation Commission (RCTC); however, this new capability is not anticipated to be available for approximately 12 months. On April 17, 2008, the MSRC considered options for continued operation of the BikeMetro website in the interim. Further details are described below in the Proposals section.

FY 2006-07 Work Program
The FY 2006-07 Work Program, implemented in two phases, included $200,000 for upgrade and hosting of the BikeMetro website and $1,000,000 for the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program.

1. Upgrade and Migration of BikeMetro Website

As mentioned above, the MSRC co-funded the development of a web-based bicycle routing and mapping system as an element of their FY 2001-02 Work Program. GeoPerception, Inc., the developer of the BikeMetro website, is no longer an operating business entity. While GeoPerception did make arrangements for Surf Consulting to fulfill GeoPerception’s contractual hosting requirements through March 2008, the website has not been periodically upgraded as originally envisioned. Also, higher than normal site downtime was noted in the first few months of 2006. On August 17, 2006, the MSRC considered various options for long-term viability of the BikeMetro website. Further details are described below in the Proposals section.

2. Augmentation of “Showcase” Program Awards

The MSRC partnered with CARB to conduct a broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment. The MSRC initially allocated $1 million to implement the “Showcase” Program, which will reduce the public’s exposure to diesel exhaust particulate while encouraging the verification of diesel retrofit devices for off-road construction equipment. Since requests for funding totaled nearly $5 million, and to ensure demonstration across as many vehicle classes as possible, the MSRC allocated an additional $2.6 million, and AQMD contributed almost $1.25 million to demonstrate combined NOx and PM reducing emission technologies. Thus, on October 5, 2007, the AQMD Board approved awards to 18 fleets to participate in the Program. Subsequently, a retrofit device manufacturer withdrew one of their devices from participation in the Program, necessitating re-matching of the vehicles which had been matched with that device, resulting in increased retrofit cost. A few vehicles which would have been eligible for funding were also discovered to have been overlooked in the original data entry process. As a result, the amounts awarded to four of the participating fleets are not sufficient to cover the anticipated costs of their eligible retrofits. On April 17, 2008, the MSRC considered award of additional funds. Further details are described below in the Proposals section.

FY 2007-08 Work Program
1. Alternative Fuel Heavy-Duty Engines for On-Road Vehicles

As a part of the FY 2007-08 Work Program, the MSRC released a $1.5 million Program Announcement #PA2008-04 for the purchase or repower of heavy-duty on-road vehicles with advanced low-emission natural gas engines certified by CARB at or below a 0.2 g/bhp-hr NOx emissions level. Maximum “per engine” funding under the Program was capped at $30,000. The Program included a geographic minimum of $200,000 per county and funds would be awarded on a first-come, first-served basis. Applications received the first day would be considered equal and funding would be pro-rated if first-day applications exceed the funding target. If each county did not request their full geographic minimum by the closing date, the funds could be used for applications from other counties on a first-come, first-served basis. The total award to any entity was not to exceed 40% of the total available funding, with this restriction able to be waived by the MSRC in the event that the MSRC did not receive meritorious applications from other bidders that met or exceeded 60% of the total available funds, or if the MSRC allocated additional funds to the Program. The application acceptance period commenced January 3, 2008, and closed February 15, 2008. At its April 17, 2008 meeting, the MSRC considered requests for funding from 21 applications under this Program; details are provided in the Proposals section.

2. Natural Gas Heavy-Duty Engines for Off-Road Cargo Handling Equipment

Also as part of the FY 2007-08 Work Program, the MSRC released a $1 million Program Announcement #PA2004-05 for the purchase of off-road cargo handling equipment with advanced low-emission natural gas engines certified by CARB at or below a 0.2 g/bhp-hr NOx emissions level. Maximum “per engine” funding under the Program was capped at $40,000. The Program included a geographic minimum of $80,000 per county and funds would be awarded on a first-come, first-served basis. Applications received the first day would be considered equal and funding would be pro-rated if first-day applications exceed the funding target. If each county did not request their full geographic minimum by the closing date, the funds could be used for applications from other counties on a first-come, first-served basis. The total award to any one entity was not to exceed 40% of the total available funding (i.e. $400,000), with this restriction able to be waived by the MSRC in the event that the MSRC did not receive meritorious applications from other bidders that met or exceeded 60% of the total available funds, or if the MSRC allocated additional funds to the Program. The application acceptance period commenced January 3, 2008, and closed February 15, 2008. At its April 17, 2008 meeting, the MSRC considered requests for funding from three applications (two from one proposer) under this Program; details are provided in the Proposals section.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, public notices advertising the Heavy-Duty Alternative Fuel On-Road Engines and Heavy-Duty Natural Gas Off-Road Cargo Handling Engines Program Announcements and inviting bids were published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the solicitations was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it could be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Further, the solicitations were posted on the MSRC’s website at http://www.cleantransportationfunding.org and electronic notifications were sent to those subscribing to this website’s notification service.

Proposal Evaluation and Panel Composition

Applications received in response to the Program Announcements (further outlined under the Proposals section) were evaluated by members of the MSRC’s Technical Advisory Committee (MSRC-TAC), a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Proposals

The MSRC considered recommendations from its MSRC-TAC and unanimously approved the following:

FY 2003-04 Work Program
As stated in the Background section, RCTC was awarded a contract for $225,000 to create a direct communications link between RCTC’s RidePro system and MTA’s TripMaster. The contract expired before all work could be completed. On April 17, 2008, the MSRC unanimously approved a new/replacement contract through February 2009 for RCTC in the amount of $225,000 for this work.

FY 2004-05 Work Program
As stated in the Background section, GeoPerception’s contractual obligation for continuing maintenance and hosting of the BikeMetro website ended in March 2008. On April 17, 2008, the MSRC considered options for continuing hosting and maintenance of BikeMetro. These options included discontinuing the operation of the existing BikeMetro site, funding BikeMetro’s operation on a month-to-month basis as an element of the current contract with Technical Advisor Raymond J. Gorski (Contract #MS05071), and funding operation via a new sole-source contract with Surf Consulting. The MSRC unanimously approved continuing the operation and maintenance of the BikeMetro website on a month-to-month basis as an element under the Technical Advisor’s contract, modifying the contract as necessary to allow for reimbursement of such charges. The MSRC intends to migrate and upgrade the BikeMetro service to RCTC, as described herein. This option would minimize, and hopefully avoid, any break in BikeMetro service. The total value of the Technical Advisor’s contract would not change.

FY 2006-07 Work Program
1. Upgrade and Migration of BikeMetro Website

As stated in the Background section, it came to the attention of the MSRC that GeoPerception had ceased to function as a business entity, the site was being maintained by a third party, and the BikeMetro website had been experiencing higher than normal downtime incidences. On August 17, 2006, the MSRC considered long-term options for BikeMetro. Alternatives included terminating operation, maintaining the site in its existing form, or upgrading. The MSRC determined that an opportunity existed, not only to upgrade the site with additional functionalities and updated mapping information, but also to bring BikeMetro to the attention of a wider audience, by re-hosting the site as an element of the broader CommuteSmart.info regional website. CommuteSmart.info is administered by RCTC on behalf of the transportation commissions for Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties. As an element of Phase I of their FY 2006-07 Work Program, the MSRC unanimously approved a sole-source contract with RCTC, in an amount not to exceed $200,000, to migrate BikeMetro into their CommuteSmart.info site. RCTC would be responsible for performing website upgrades, updates, hosting and maintenance.

2. Augmentation of “Showcase” Program Awards

As stated in the Background section, MSRC staff determined that the amounts awarded to four of the fleets participating in the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program are not sufficient to cover the anticipated cost of the retrofit of all eligible vehicles in the fleets’ applications. On April 17, 2008, the MSRC considered options to address this issue. Another fleet, Recycled Materials Company, declined their entire $99,900 funding award due to the delay of their local project, and the amount awarded to Tiger 4 Equipment exceeds the currently anticipated cost for retrofitting their participating vehicles by $59,250. The MSRC unanimously approved augmentations to funding awards totaling $128,019. At this time the MSRC requests approval of the following four award/contract augmentations for participation in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment, as an element of the FY 2006-07 Work Program:

1. Griffith Company, $66,800 increase, resulting in a total award not to exceed $217,705;
2. County Sanitation Districts of Los Angeles County, $16,919 increase, resulting in a total award not to exceed $268,700;
3. SKANSKA, $36,400 increase, resulting in a total award not to exceed $148,100; and
4. Sukut Equipment, $7,900 increase, resulting in a total award not to exceed $24,720.

FY 2007-08 Work Program
1. Alternative Fuel Heavy-Duty Engines for On-Road Vehicles

As stated in the Background section, under the FY 2007-08 Work Program, the MSRC released a $1.5 million Program Announcement #PA2008-04 for the purchase or repower of heavy-duty on-road vehicles with advanced low-emission natural gas engines certified by CARB at or below a 0.2 g/bhp-hr NOx emissions level. A total of 21 applications, requesting a total of $12,191,625 for the purchase of 411 vehicles equipped with qualifying natural gas engines, were received by the closing date of February 15, 2008.

First-day funding requests totaled $2.94 million for 98 vehicles; thus, the program was oversubscribed on the first day and pro-rating of funding awards was required. The geographic minimum for Orange County was not met on the first day applications were accepted; therefore, the one first-day application from an entity in Orange County is eligible to receive full funding, and two applications from Orange County entities received subsequent to the first day are eligible to receive the balance of the geographic funding minimum. All other first-day vehicles were deemed eligible to receive a pro-rated funding incentive. Applicants offered a pro-rated award would be offered the option to reduce the number of vehicles, but in no case would funding exceed the $30,000 per engine maximum specified in the Program Announcement. The MSRC unanimously approved funding for nine applications, as follows:

1. A contract with the City of San Bernardino in an amount not to exceed $183,696 for the purchase of up to 13 heavy-duty, low-emission natural gas vehicles;
2. A contract with Yosemite Waters in an amount not to exceed $180,000 for the purchase of up to 6 heavy-duty, low-emission natural gas vehicles;
3. A contract with Burrtec Waste Industries in an amount not to exceed $211,956 for the purchase of up to 15 heavy-duty, low-emission natural gas vehicles for their Azusa location;
4. A contract with Burrtec Waste Industries in an amount not to exceed $211,956 for the purchase of up to 15 heavy-duty, low-emission natural gas vehicles for their Saugus location;
5. A contract with United Parcel Service in an amount not to exceed $141,304 for the purchase of up to 10 heavy-duty, low-emission natural gas vehicles;
6. A contract with Diversified Truck Rental in an amount not to exceed $141,304 for the purchase of up to 10 heavy-duty, low-emission natural gas vehicles;
7. A contract with Los Angeles World Airports in an amount not to exceed $409,782 for the purchase of up to 29 heavy-duty, low-emission natural gas vehicles;
8. A contract with OCTA in an amount not to exceed $10,000 for the purchase of up to 20 heavy-duty, low-emission natural gas vehicles; and
9. A contract with Green Fleet Systems in an amount not to exceed $10,000 for the purchase of up to 30 heavy-duty, low-emission natural gas vehicles.

2. Natural Gas Heavy-Duty Engines for Off-Road Cargo Handling Equipment

As stated in the Background section, under the FY 2007-08 Work Program, the MSRC released a $1.0 million Program Announcement #PA2008-05 for the purchase of heavy-duty off-road cargo handling equipment with advanced low emission natural gas engines certified by CARB at or below a 0.2 g/bhp-hr NOx emissions level. A total of 3 applications, including two from one proposer, requesting a total of $1,264,000 for the purchase of 32 vehicles equipped with qualifying natural gas engines, were received by the closing date of February 15, 2008.

All three applications were received on the first day, and thus deemed received at the same time. Two of the applications, requesting a total of $960,000, were submitted by United Parcel Service (UPS). While the proposed vehicles would be operated at different UPS locations, the MSRC determined that the applications were submitted by the same corporate entity, given that the cover letter signatory and corporate address were the same for each application. This means that UPS’s request exceeded the maximum allowable per-entity of $400,000 (40% of the total available funds). All applications came from Los Angeles County-based entities and there were no geographic minimum considerations. In the third application, California Cartage Company miscalculated or misinterpreted the amount of award to which they would be entitled. It appears they deducted the geographic minimum for three counties and applied for 40% of the funding minus this amount. Based on MSRC past practice, such errors can be corrected. California Cartage Company clearly stated that they wanted to apply for additional funding. They would have been entitled to receive the $400,000 maximum per entity if they had not misunderstood the Program Announcement and the method by which the MSRC calculates the awards. The MSRC determined that each applicant was entitled to the $400,000 maximum per entity, leaving a balance of $200,000. The MSRC was able to waive the per-entity maximum, and divided the remaining $200,000 equitably between the proposers. The MSRC unanimously approved funding as follows:

1. A contract with California Cartage Company in an amount not to exceed $500,000 for the purchase of up to 13 heavy-duty, low-emission natural gas yard tractors; and
2. A contract with United Parcel Service in an amount not to exceed $500,000 for the purchase of up to 13 heavy-duty, low-emission natural gas yard tractors.

The MSRC respectfully requests the Board’s approval of the above contract modifications and awards under the FYs 2003-04, 2004-05, 2006-07 and 2007-08 Work Programs. Additional FY 2007-08 Work Program elements are expected to be brought forward in the next few months. The MSRC also requests authority to adjust the funds allocated to each project specified in this Board letter by up to five percent of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs. Finally, the MSRC requests the Board authorize the AQMD Chairman of the Board the authority to execute all agreements described in this letter.

Sole-Source Justification

As an element of Phase I of its FY 2006-07 Work Program, the MSRC allocated $200,000 for upgrade of the BikeMetro website. As discussed in Proposals above, the MSRC determined that the best approach would be to integrate BikeMetro into the regional CommuteSmart.info website. CommuteSmart.info is the region’s primary rideshare website, providing tools and information to encourage alternative commute modes. BikeMetro’s capabilities would be an excellent fit. While the MSRC and AQMD strive to retain technical services and award contracts through a competitive bid basis, the AQMD’s Procurement Policy recognizes that at times circumstances exist which make a competitive bid process invalid. Therefore, the request for a sole-source award is made under provision Section VIII, B.2.c.1: The unique experience and capabilities of the proposed contractor or contractor team, and B.2.c.3.: The contractor has ownership of key assets required for project performance. CommuteSmart.info is the primary rideshare website for the region. CommuteSmart.info is administered by RCTC on behalf of five Southern California county transportation commissions including the four counties in the South Coast region. It is the intent of the MSRC to execute a sole-source contract with RCTC, in an amount not to exceed $200,000, to migrate, update and maintain BikeMetro as an element of CommuteSmart.info.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.