South Coast Air Quality Management District

Execute Additional Transit and Heavy-Duty Contracts and Alternative Fuels Subvention Fund Match Program Contracts within FY 2000-01 AB 2766 Discretionary Fund Work Program; Approve MSRC Authority to Adjust Project Costs Up 5%; and Authorize Chairman Authority to Execute Agreements

SYNOPSIS: 

In December 2000 the Board approved a $17.2 million FY 2000-01 Work Program. The MSRC has released $401,373 from other programs to fund two more projects within this Work Program. The MSRC requests Board approval to execute these contracts, authority to adjust project costs up 5%, and authorization for the Chairman to execute agreements. The Board approved an allocation of $3 million for the Alternative Fuels Subvention Fund Match Program. In September 2000 the Board approved release of the Program Application and Announcement for the Match Program, which provides a 50-75% match for participating cities towards the purchase of alternative fuel vehicles and infrastructure. The application process commended February 1 and closes June 30, 2001. The MSRC requests approval to execute contracts with local governments for eligible applications to date.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee, February 22, 2001 and March 22, 2001, Approved

RECOMMENDED ACTIONS:

1. As part of the FY 2000-01 AB 2766 Discretionary Fund Work Program, approve the following:

1. Funding totaling $3,014,934 for 31 applications received under the Alternative Fuels Subvention Fund Program for alternative fuel infrastructure and medium- and heavy-duty vehicles;
   
   
2. Funding totaling $249,124 for SunLine Services' transit vehicle project; and
   
   
3. Funding totaling $152,349 for Blue Barrel Disposal's heavy-duty project (in addition to the $33,536.72 already awarded)

2. Authorize the Board Chairman the authority to execute agreements with the proposers as set forth in this letter and the attachments for the FY 2000-01 Work Program;
   
   
3. Authorize MSRC the ability to adjust up to an additional 5%, as necessary, the funding of individual projects included in this letter and the attachments; and
   
   
4. Authorize the MSRC to withdraw approval of individual projects in cases where bidders are not able to successfully negotiate a contract; unused funds will return to the Discretionary Fund for distribution to future work programs.

Mayor William G. Kleindienst
Chair, MSRC

Background

In December 2000 the AQMD Board approved a $17.2 million FY 2000-01 Work Program including an allocation of $3 million for the Alternative Fuels Subvention Fund Match Program, with specific projects funded under this program to be approved by the Board at a later date. The Match Program set aside $1.5 million each for alternative fuels infrastructure and medium- and heavy-duty vehicles, and included a geographic minimum per county of $375,000. The application period commenced February 1 and closes June 30, 2001, and applications are accepted on a first-come, first-serve basis. In addition, when the Board approved the $17.2 million Work Program, there remained $11 million in unmet needs, primarily consisting of heavy-duty and transit fleet projects. The MSRC established waiting lists for all worthwhile projects in case additional monies became available.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Alternative Fuels Subvention Fund Match Program was published on two different days in 25 newspapers and publications, including several targeting minorities.

A Program Announcement and Application for the Match Program was placed on the MSRC's website at "http://www.msrc-cleanair.org" as well as the AQMD's website at "http://www.aqamd.gov" under the "Business and Job Opportunities" icon. Information was also included about the PA on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724.

The Program Announcement was mailed to all local governments receiving subvention funds and interested parties took advantage of the MSRC's website and registered online to download copies of the PA.

Bidders' Conferences

To assist potential bidders in submitting eligible proposals under the Match Program, two workshops were conducted at AQMD Headquarters on October 20, 2000 and January 12, 2001. Both were well attended by local government representatives.

Proposals Received

To date 31 applications have been received requesting $2,213,999 for vehicles and $780,935 for infrastructure for a total of $3,014,934. Of these 31 applications, 28 were received the first day of the open application period.

Proposal

At its March 22, 2001 meeting, the MSRC decided that the best action was to fund all Match Program applications received to date, but inform local governments that no further applications for alternative fuel vehicles would be accepted since the $1.5 million set aside was reached. The $14,934 above the $3 million included in the Work Program will be funded through the MSRC's reserve (typically maintained at $500,000). Applications for infrastructure will continue to be accepted through the June 30, 2001 deadline, but will be funded from turnback funds; if no turnback monies become available, it is the MSRC's intent to fund these projects through the next work program. Any additional applications will be submitted to the AQMD Board for approval. This action ensures the geographic distribution of infrastructure the program was intended to achieve, and supports the AQMD's fleet rules. The MSRC requests Board approval to fund 31 applications received under the Match Program, as detailed in the attachment, totaling $3,014,934 as part of the FY 2000-01 Work Program.

At its February 2001 meeting the MSRC took several actions and released $401,373 from other programs to provide funding for two more projects within the FY 2000-01 Work Program. When projects were initially funded, the MSRC's goal was to fund all public fleet projects. Subsequently, it was determined that SunLine Transit is a public transit agency. Consequently, the MSRC approved $249,124 in funding for SunLine to purchase alternative fuel street sweepers, heavy-duty trucks, and speciality vehicles. The remaining $152,349 was accepted by Blue Barrel Disposal (in addition to the $33,536.72 already awarded to them), the next ranked project on the heavy-duty waiting list, towards the purchase of alternative fuel refuse vehicles. The MSRC requests Board approval of these two awards as part of the FY 2000-01 Work Program.

In some cases the full amount requested by a proposer 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 the right to approve a portion of the proposers' 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 recommended, the MSRC requests the authority to rescind the funding commitment for that proposer and retain the funds in the Discretionary Fund account for future work programs.

The MSRC also requests authority to adjust the funds allocated to each project up to 5% of a project's recommended funding as specified in the attachments. 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 with the proposers set forth in this letter and the attachments for the FY 2000-01 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.

Attachment

Match Program Summary of Projects

/ / /