BOARD MEETING DATE: March 1, 2002
AGENDA NO. 16

Approve Contracts under the Diesel Particulate Trap Retrofit Program as Part of the FY 2001-02 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to 5%; and Authorize Board Chairman to Execute Agreements

SYNOPSIS: 

In July 2001, as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program, the Board approved release of a Program Announcement for a $1 million Diesel Particulate Trap Retrofit Program. The program began October 1, 2001 and ends September 30, 2002. Proposals totaling $1,615,000 were received within the first three weeks of the program. At this time the MSRC requests approval of three projects totaling $994,500. The MSRC also requests authority to adjust contracts up to 5 percent and authority for the Board Chairman to execute agreements. The MSRC may allocate additional funds to the program depending on how much turn-back funds are received in the near future. If so, they will return to the Board for approval of additional projects at that time.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
January 24, 2002, Approved

RECOMMENDED ACTION:

1. Approve the award of three projects totaling $994,500 under the Diesel Particulate Trap Retrofit Program as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program as described in this letter;
   
    
2. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
   
    
3. Authorize the Chairman of the Board to execute three contracts with City of Los Angeles for $493,000, Pro Express for $93,500, and Long Beach Transit for $408,000.

William G. Kleindienst
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 AQMD Governing Board. Available monies for the FY 2001-02 Work Program are currently estimated at approximately $16 million, including revenues, interest, turn-back funds, and monies from CARB for peaker plant emissions.

On July 20, 2001, the Board approved the conceptual FY 2001-02 Work Program targeting $13,765,000 for five Clean Fuels Vehicle programs, one Light-Duty Vehicle program, and five TCM programs. The Work Program included 10 solicitations totaling $12,265,000, one contract with the California Energy Commission (CEC) for $1.5 million for participation in its CNG/Gasoline Hybrid Incentives Program, a $2 million Local Government Match Program Announcement & Application, and a $1 million Diesel Particulate Trap Retrofit Program Announcement & Application. The MSRC Program offers to fund 100% of the cost of purchasing and installation a CARB-verified particulate trap, up to a maximum of $8,000 per vehicle. In addition, the MSRC will make a one-time, up-front contribution of $500 per vehicle to offset the incremental cost of purchasing low-sulfur (15 ppm) diesel fuel.

The Diesel Particulate Trap Retrofit Program (see attached Program Announcement) opened October 1, 2001 and applications could be submitted until September 30, 2002, or until such time as all available program funds have been expended. Four proposals exceeding the $1 million allocation were received during the first month. Consequently, at this time the MSRC is asking for action by the Board on this program. Additional funding may be allocated to this program in the near future, in which case further awards would be presented to the Board for action.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Diesel Particulate Trap Retrofit Program was published on two different days in 26 newspapers and publications, including several targeting minorities.

The Diesel Particulate Trap Retrofit Program Announcement (PA) was placed on the MSRC's Web site at "http://www.msrc-cleanair.org" as well as the AQMD's Web site at "http://www.aqmd.gov" under the "Business and Job Opportunities" icon, and information was included about the PA on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724. Several PAs were downloaded from the MSRC's web site.

In addition to the AQMD's standard practices, a brochure announcing all of the MSRC's funding opportunities was mailed to over 1,600 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, the AQMD's Ethnic Communities Advisory Group, and business associations.

Proposals Received and Evaluation Process

Four proposals were received in the order listed as follows:
 

The MSRC's Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the proposals to determine eligibility, using the criteria within the Program Announcement. Funds were available on first-come, first serve basis. At its January 24, 2002 meeting, the MSRC considered recommendations from its MSRC-TAC.

Proposals

The MSRC requests Board approval to award the following: 1) a contract in the amount of $493,000 to City of Los Angeles for 58 vehicle traps; 2) a contract in the amount of $93,500 to Pro Express for 11 vehicle traps; and 3) a contract in the amount of $408,000 to Long Beach Transit for 48 vehicle traps. These three awards total $994,500 and include fuel subsidies of $500 per trap. As mentioned previously, the MSRC may allocate additional funding to this program in the near future. If so, the MSRC will return to the Board for approval of additional awards at that time.

In some cases the full amount requested by a proposal is not recommended for funding or the proposed scope of work has been modified. This is consistent with the MSRC's administrative policies, which allow the MSRC to approve a portion of a proposer’s scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as approved, the MSRC may rescind the funding commitment and retain the funds in the Discretionary Fund for future work programs.

The MSRC requests authority to adjust the funds allocated to each project specified in this Board letter by up to 5% of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs.

Finally, the MSRC requests that the Board authorize the AQMD Board Chairman the authority to execute agreements specified in this Board letter as part of the FY 2001-02 Work Program.

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.

Attachments

Program Announcement & Application #PA2002-02

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