BOARD MEETING DATE: November 3, 2006
AGENDA NO. 11

Appropriate Funds for PAMS Program, Appropriate and Reallocate Funds for PM2.5 Program, Recognize and Appropriate Funds for Enhanced Particulate Monitoring Program, and Issue Purchase Order, RFQs and RFP.

SYNOPSIS: 

U.S. EPA has allocated Section 105 Grant funds of $1,282,303 for the 15^th Year of the PAMS program.  As such, this action is to: (a) upon receipt of the award, appropriate funds to the FY 2006-07 Budget for the 15^th year PAMS program, (b) reduce the previously approved carryover budget, and (c) issue RFQs and an RFP.  In addition, this action is to appropriate and reallocate unspent U.S. EPA funds from the last year’s PM2.5 monitoring program to the FY 2006-07 Budget and to reduce the previously approved budget to reflect a $6,527 grant reduction.  Lastly, the AQMD has been assisting U.S. EPA on a national enhanced particulate monitoring program.  The U.S. Department of Homeland Security has taken over this program and has allocated $3,129,017 for the ongoing and expansion of the Enhanced Particulate Monitoring Program in FY 2006-07.  As such, this action is to: (a) recognize revenue and appropriate funds to the FY 2006-07 Budget for this program and (b) issue a purchase order and an RFQ for fixed assets under this program.

COMMITTEE: 

Administrative, October 13, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Upon receipt of the U.S. EPA Section 105 15th year (FFY 2007) PAMS award, appropriate $1,109,793 from the Undesignated Fund balance to the Major Objects in the Science & Technology Advancement and Planning, Rule Development & Area Sources FY 2006-07 Budgets as set forth in Attachment 1.  (Expenditure appropriation excludes $172,510 in Salary and Employee Benefit amounts, which were included in the FY 2006-07 adopted budget).
2. To accurately reflect the FY 2006-07 PAMS carryover amount, reduce by $75,439 the PAMS FY 2006-07 carryover budget as approved by the Board in July 2006.  The budget reductions are provided in Attachments 2 and 3.
3. Authorize the Procurement Manager to:

1. Release RFQ #Q2007-03 for two (2) CNG-powered Calibration/Repair Vans at a cost not to exceed $96,000 as budgeted in the 15^th year (FFY 2007) PAMS award (purchase will not be recommended until receipt of the award);

2. Release RFQ #Q2007-05 for six (6) Gas Generators at a cost not to exceed $72,000 as budgeted in the 15^th year (FFY 2007) PAMS award (purchase will not be recommended until receipt of the award); and

3. Issue RFP #2007-16 to develop and install upgraded air quality data software in an amount not to exceed $150,000 as budgeted in the 15^th year (FFY 2007) PAMS award (recommendation for issuing contract will not occur until receipt of the award).

4. Appropriate from the Undesignated Fund balance and reallocate FFY 2005-06 unspent funds of $20,000 associated with the U.S. EPA Section 103 PM 2.5 grant to the Major Objects in Science & Technology Advancement's FY 2006-07 Budget as set forth in Attachment 4.  (Expenditure appropriations exclude $32,535 in Salary and Employee Benefit amounts, which were included in the FY 2006-07 adopted budget).
    
5. To accurately reflect the FY 2006-07 PM2.5 appropriation amount due to a grant reduction associated with Hurricane Katrina relief, decrease by $6,527 the PM2.5 FY 2006-07 expenditure budget as approved by the Board in July 2006.  The budget reductions are provided in Attachment 5.
    
6. Recognize revenue from the Department of Homeland Security in the amount of $929,017 in the FY 2006-07 Budget (Revenue recognized excludes $2.2M that was included in the FY 2006-07 adopted budget).
    
7. Appropriate from the Undesignated Fund balance $959,019 to the Major Objects in Science & Technology Advancement's FY 2006-07 Budget as set forth in Attachment 6 for the Enhanced Particulate Monitoring program.  (Expenditure appropriations exclude $2,169,998 in Salary and Employee Benefit amounts and indirect costs which were included in the FY 2006-07 adopted budget).
    
8. Authorize the Procurement Manager to:

1. Execute a sole-source purchase order with HI-Q Environmental Products for an amount not to exceed $122,840 for the purchase of twenty (20) particulate samplers and accessories as budgeted in the Enhanced Particulate Monitoring program; and
2. Release RFQ #Q2007-02 for nine (9) CNG-powered Compact Vehicles at a cost not to exceed $252,000 as budgeted in the Enhanced Particulate Monitoring program.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

PAMS Program
In February 1993, the U.S. EPA promulgated the PAMS regulations for areas classified as serious, severe or extreme non-attainment.  These regulations require AQMD to conduct monitoring for ozone precursors with enhanced monitoring equipment at a total of seven sites.  The PAMS program is also funding the meteorological upper air profilers sited at LAX and Ontario airports, the upper air site installed at Moreno Valley in Riverside County, and a new upper air site planned for Orange County.  Since the onset of the PAMS program, U.S. EPA has annually allocated Section 105 supplemental Grant funds in support of this requirement.

PM2.5 Program
Since 1998, U.S. EPA has been providing funds for a comprehensive PM2.5 air monitoring program under a Section 103 Grant, as part of the national program to enhance the monitoring network for PM2.5.  To date, there are 19 ambient monitoring stations operating 22 PM2.5 samplers under U.S. EPA funding.  In addition, U.S. EPA has supported the expansion of the network to collect continuous PM mass information at several sites within the South Coast Air Basin.  This augmentation substantially adds to the fine particulate data which will help in the characterization of air quality conditions and health impacts.

Expanded Enhanced Particulate Monitoring Program
The AQMD has been providing special particulate monitoring support to U.S. EPA as part of a national monitoring program since 2003. Actual sample collection began in early February 2003 and will continue for the foreseeable future.  To date, U.S. EPA has provided funding for training, sampling instruments, associated consumables, and AQMD labor resources.  The U.S. Department of Homeland Security (DHS) is now funding the special monitoring program.  For FY 2006-07, U.S. DHS expanded the current program scope and is providing additional funds to cover the costs associated with the expanded program.

Proposal

PAMS Program
U.S. EPA has estimated that the 15^th year PAMS program (FFY 2006-07) will be funded at $1,282,303.  The PAMS funds will assure adequate data capture to support this project which is of significant importance both to the AQMD and the U.S. EPA.  The proposed allocation of the 15^th year PAMS funds is provided in Attachment 1.  The U.S. EPA concurs with this use of the PAMS funds.

The Board approved the 14th year PAMS award in September 2005.  However, the AQMD did not receive the actual grant award until May 2, 2006, resulting in the need to appropriate unspent PAMS funds from FY 2005-06 to the FY 2006-07 Budget.  Any unspent funds must be recertified by U.S. EPA if there are unspent funds at the end of the federal fiscal year (September 30, 2006).  This year, U.S. EPA informed staff of some uncertainty in recertifying any unspent PAMS funds.  For this reason, in July 2006, the Board approved the carryover and the expenditure of unspent 14th year PAMS funds by the end of the federal fiscal year in the amount of $963,427.  This amount was an estimate since actual FY 2005-06 expenditures could not be determined at the time of the July 2006 Board meeting.  Subsequently, staff determined that the amount of unspent funds was overestimated, and that the available carryover amount must be reduced by $75,439 to $887,988.  Attachment 2 provides the differences between the estimated and actual FY2005-06 expenditures.  Staff revised the carry over funds allocation to reflect the reduced amount of $887,988 and is requesting the Board’s approval of a revised budget that fully reconciles the overestimated budget as provided in Attachment 3.

PM2.5 Program
In July 2006, the Board appropriated U.S. EPA Section 103 Grant funds in the amount of $569,466 for the FY 2006-07 PM2.5 Program Budget.  Unspent Section 103 PM2.5 Grant funds from FY 2005-06 are proposed to be reallocated to the FY 2006-07 Budget as provided in Attachment 4.  In addition, a grant reduction associated with Hurricane Katrina relief decreased the FFY 2006-07 grant award by $6,527.  As such, this action is to reduce the FY 2006-07 expenditure budget for the PM2.5 Program as approved by the Board in July 2006 by $6,527 to accurately reflect the Hurricane Katrina Relief allocation.  The proposed revised budget reductions are provided in Attachment 5.  The proposed allocations have been discussed with and accepted by U.S. EPA.

Expanded Enhanced Particulate Monitoring Program

The U.S. DHS has allocated $3,129,017 for the ongoing and expansion of the Enhanced Particulate Monitoring Program for FY 2006-07.  $2,200,000 of this grant amount has already been recognized in the AQMD FY 2006-07 Budget.  This action is to recognize the remaining revenue in the amount of $929,017 in the FY 2006-07 Budget.  In addition, this action is to appropriate $959,019 to the Major Objects in Science and Technology Advancement FY 2006-07 Budget as set forth in Attachment 6.  $2,169,998 in Salary and Employee Benefit amounts and indirect costs were previously included in the Board approved FY 2006-07 Budget.  

Recruitment is currently underway to fill staff positions specifically for this program.  It is expected that positions will be filled within the next six to eight months.  Meanwhile, there is a need to fulfill the tasks associated with the program as the permanent positions are filled.  As such, the proposed budget provided in Attachment 6 includes $208,000 for Temporary Agency Services to cover up to 12 months of program operation.  The proposed allocations have been discussed with and accepted by U.S. DHS. 

Issue Purchase Order for Twenty (20) Particulate Samplers and Accessories

The expansion of the U.S. DHS Enhanced Particulate Monitoring Program requires the purchase of new particulate samplers for the additional sampling locations as specified by the U.S. Department of Homeland Security, the source of funding for this program.  Staff is requesting that the Board authorize the Procurement Manager to execute a sole-source purchase order with HI-Q Environmental Products for an amount not to exceed $122,840 for the purchase of twenty particulate samplers and accessories.

Sole Source Justification

A sole-source award is authorized under Sections IV.B of the Procurement Policy and Procedure when a purchase does not lend itself to substitution.  The new particulate samplers must be compatible with the current sampling equipment, and the sole vendor of this equipment has been specified by U.S. DHS, the source of funding for this program.  Therefore, the request for the sole-source purchase of the particulate samplers is made under Section VI.A.4.a of the Procurement Policy and Procedure; the items are available from only one source.

Issue RFQ for CNG-Powered Calibration and Repair Vans Under the PAMS Program

Due to an aging fleet of calibration and repair vans, staff is requesting the Board’s approval to replace these older high-mileage vehicles with new CNG-powered vans.  Calibration and repair vans are essential for staff to perform routine and non-routine calibration and maintenance of air monitoring equipment at the over 35 AQMD air monitoring sites.  Therefore, this action is to release RFQ #Q2007-03 (Attachment 7) for two CNG-powered calibration/repair vans at a cost not to exceed $96,000 as budgeted in Attachment 1.

Issue RFQ for Gas Generators Under the PAMS Program

Currently the AQMD laboratory utilizes bottled gases for all analytical needs.  These gases are provided by a number of vendors on a competitive bid basis.  In addition to the cost of the gases, all vendors charge a daily cylinder rental fee (demurrage).  While typically delivery has been reliable, the cost has increased with increased fuel charges.  The purchase of gas generators for use in the AQMD laboratory will provide several advantages over the current practice.  The use of gas generators eliminates the need for vendor gases and thus eliminates the costs of bottled gases and cylinder rental.  Given the cost of the gas generators compared to the cost of bottled gases, the generators will pay for themselves in less than three years of service.  Therefore, staff is requesting the Board to release RFQ #Q2007-05 (Attachment 8) for six Gas Generators at a cost not to exceed $72,000 as provided in Attachment 1.

Issue RFQ for Passenger Vehicles Under the Enhanced Particulate Monitoring Program

The expansion of the U.S. DHS Enhanced Particulate Monitoring Program requires additional vehicles for the new staff to perform their field work.  Sufficient numbers of vehicles do not exist in the current AQMD fleet and additional vehicles are budgeted as provided in Attachment 6.  Therefore, staff recommends that the Board authorize the release of RFQ #Q2007-02 (Attachment 9) for nine CNG-powered passenger vehicles at a cost not to exceed $252,000.

Issue RFP for Upgraded Air Quality Data Software Under the PAMS Program

Staff has identified a need to upgrade the AQMD air quality data software, including data retrieval, storage, access and validation.  The current system is based on out-dated software that has proven difficult to modify.  In addition, historical data are currently stored in multiple database formats that are difficult to access simultaneously.  Furthermore, current data validation procedures are cumbersome and time consuming as they are conducted manually.  For these reasons, staff is requesting the Board to release RFP #2007-16 (Attachment 10) at a cost not to exceed $150,000 to develop, create, and install a new state-of-the-art air quality data software system that will be easy to modify, provide consistent database structure, allow for user-friendly data access and report writing, include automated data validation tools, and be sufficiently flexible to handle future hardware changes and telemetry protocols.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be 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 be notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the RFP/RFQ will be 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 can 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 is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Resource Impacts

U.S. EPA Section 105 Grant funding will support the 15^th year operation of the PAMS program and will further provide for equipment, temporary services, supplies and services, necessary to meet the objectives of the program.

U.S. EPA Section 103 Grant funding will support the continuation of the PM2.5 Program.

U.S. DHS funding will fully support the Enhanced Particulate Monitoring Program.  

Attachment(s) (EXE 2373kb)
Attachment 1 –   Proposed PAMS 15th Year Expenditure
Attachment 2 –   PAMS 13^th & 14^th Year Budget and Remaining Balance as of 6/30/2006
Attachment 3 –   Revised PAMS 14^th Year Carryover Budget to FY2006-07
Attachment 4 –   PM2.5 Program U.S. EPA FFY 2005-06 Budget Carryover to FY 2006-07
Attachment 5 –   Revised PM2.5 Program Expenditure FFY 2006-07
Attachment 6 –   Proposed DHS Expanded Enhanced Particulate Monitoring Program
                         Expenditure FY 2006-07
Attachment 7–    RFQ #Q2007-03 for two CNG-powered calibration/repair vans
Attachment 8 –   RFQ #Q2007-05 for six Gas Generators
Attachment 9 –   RFQ #Q2007-02 for nine CNG-powered passenger vehicles
Attachment 10 – RFP #P2007-16 for Upgraded Air Quality Data Software