PROPOSAL:
Approve Contracts under the Local Government Match 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 MSRC released a $2 million Local Government Match Program
Announcement & Application (PA) to fund alternative fuel vehicles and
infrastructure. The PA opened November 1, 2001, and closed on February 28,
2002, at which time fifteen applications totaling $2,526,584 had been
received. The MSRC requests approval to fund all applications. The MSRC
also requests authority to adjust contracts up to five percent and
authority for the Board Chairman to execute agreements.
COMMITTEE:
Mobile Source Air Pollution Reduction Review Committee,
March 28, 2002, Unanimously Approved
RECOMMENDED ACTION:
-
Approve the award of fifteen applications totaling
$2,526,584 under the Local Government Match Program as part of the FY
2001-02 AB 2766 Discretionary Fund Work Program as described in this
letter and the attachments;
-
Authorize MSRC the authority to adjust contracts up to 5%,
as necessary; and
-
Authorize the Chairman of the Board to execute fifteen
contracts as specified in Attachment 1.
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 offsets.
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 $1 million Diesel Particulate Trap Retrofit
Program Announcement & Application, and a $2 million Local Government Match
Program Announcement & Application. The Match Program provided 50-75% match
funding to local governments for alternative fuel infrastructure and 100%
match funding towards the purchase of medium- and heavy-duty alternative
fuel vehicles.
The Local Government Match Program (see Attachment 2 - Program
Announcement) opened November 1, 2001 and applications were accepted
through February 28, 2002, on a first-come, first-serve basis, and/or until
such time as all available program funds were expended. Fifteen applications
totaling $2,526,584 were received.
Outreach
In accordance with the AQMD's consulting and contracting policies, a
public notice advertising the Local Government Match Program was published
on two different days in 26 newspapers and publications, including several
targeting minorities.
The Local Government Match 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.
The complete Program Announcement and Application was mailed directly to
all city mayors and city managers within the South Coast Air Basin as well
as to the Subvention Fund technical contacts identified by the AQMD's
Transportation Division.
Bidders' Conference
A Bidders' Conference was conducted on August 2, 2001, at AQMD
headquarters in Room CC6. A general question-and-answer session was
conducted, and approximately 30 city representatives were in attendance.
Proposals Received and Evaluation Process
Fifteen applications were received from various cities throughout the
Basin. The MSRC's Technical Advisory Committee (MSRC-TAC) formed an
evaluation subcommittee to review the applications to determine eligibility,
using the criteria within the Program Announcement. Funds were available on
first-come, first serve basis. At its March 28, 2002 meeting, the MSRC
considered recommendations from its MSRC-TAC.
Proposals
In order to meet the demands of the applicants, the MSRC augmented the $2
million allocated to the Match Program by utilizing additional unallocated
funds. The MSRC unanimously approved funding all fifteen applications
received for a total Match Program package totaling $2,562,584. It was noted
that the demand for vehicles was greater than infrastructure by 3:1 ratio.
At this time the MSRC requests Board approval to fund the projects
identified in Attachment 1 as part of the FY 2001-02 Work Program.
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 all agreements 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
Attachment 1 - Local Government Match Program Summary
Attachment 2 - Program Announcement & Application #PA2002-01
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