BOARD MEETING DATE: December 4, 2009
AGENDA NO. 16
PROPOSAL:
Approve Contract Modification under MSRC’s FY 2008-09 Work Program and Issue Solicitations under FY 2009-10 AB 2766 Discretionary Fund Work Program
SYNOPSIS:
At its November 19, 2009 meeting, the MSRC approved a contract modification for A-Z Bus Sales providing additional funds for alternative fuel school buses as well as the release of solicitations to implement the Alternative Fuel Infrastructure Funding Opportunities Program, the Incentives for Alternative Fuel Engines Program, and the Design, Implementation, and Evaluation of Telework Programs, as part of its FYs 2008-09 and 2009-10 AB 2766 Discretionary Fund Work Programs, respectively. The MSRC seeks Board approval to modify the contract and issue the three solicitations at this time.
COMMITTEE:
Mobile Source Air Pollution Reduction Review, November 19, 2009, Recommended for Approval
RECOMMENDED ACTIONS:
Approve a funding augmentation in an amount not to exceed $60,000 to existing contract #MS09002 with A-Z Bus Sales, Inc. under the Alternative Fuel School Bus Incentives Program, from the balance of funds previously allocated for this category, as part of the FY 2008-09 Work Program, as described in this letter;
Approve the issuance of three solicitations, with targeted funding levels totaling $5.65 million under the FY 2009-10 Work Program, as described in this letter and as follows:
Alternative Fuel Infrastructure Funding Opportunities Request for Proposals #P2010-15;
Incentives for Alternative Fuel Engines Program Announcement #PA2010-05; and
Design, Implementation, and Evaluation of Telework Programs Program Opportunity Notice #PON2010-01.
Authorize MSRC the authority to adjust contract awards up to five percent, as necessary and previously granted in prior work programs; and
Authorize the Chairman of the Board to execute a modified contract under FY 2008-09 AB 2766 Discretionary Fund Work Program, as described above and within this letter.
Ron Roberts
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 2008-09 Work Program
As an element of its FY 2008-09 Work Program, the MSRC has allocated a total of $3,000,000 for an Alternative Fuel School Bus Incentive Program to provide buydown incentives for school districts. To implement the Program, on August 21, 2008, the MSRC awarded a contract to A-Z Bus Sales, who was previously qualified to offer these incentives in response to the MSRC’s Request for Vendor Qualifications in FY 2007-08; subsequently, A-Z Bus Sales’ contract value has been increased due to sales performance, resulting in a total contract value of $1,600,000. At its November 19, 2009 meeting, the MSRC considered a request from A-Z Bus Sales for an additional $60,000 for a purchase from Mount Baldy Joint Unified School District; further details are provided below in the proposals section.
FY 2009-10 Work Program
At its September 10, 2009 meeting, the MSRC approved additional elements of its FY 2009-10 Work Program. The MSRC and AQMD Board already approved several awards to implement portions of the FY 2009-10 Work Program. At its November 19, 2009 meeting, the MSRC considered solicitations to implement the Alternative Fuel Infrastructure Funding Opportunities Program; the Incentives for Alternative Fuel Engines Program; and the Design, Implementation, and Evaluation of Telework Programs, three of the additional elements of their FY 2009-10 Work Program. Further details are described below in the Proposals section.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, public notices advertising the multiple solicitations 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 solicitations will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, 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. Further, the solicitations will be posted on the MSRC’s website at http://www.cleantransportationfunding.org and electronic notifications will be sent to those subscribing to this website’s notification service.
Bidder’s Conference
To assist potential bidders in submitting qualified applications, a non-mandatory Bidders’ Conference for the Alternative Fuel Infrastructure Funding Opportunities RFP will be conducted at AQMD headquarters at 10:30 a.m. in Room CC6 on Wednesday, January 6, 2010.
Proposal Evaluation and Panel Composition
Proposal received in response to each solicitation (further outlined under the Proposals section)will be 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. Separate evaluation teams will be formed to evaluate proposals submitted in response to the three solicitations.
Proposals
At its November 19, 2009 meeting, the MSRC considered recommendations from its MSRC-TAC and unanimously approved the following:
FY 2008-09 Work Program
The MSRC previously awarded a total of $1,600,000 to A-Z Bus Sales to continue implementation of the Alternative Fuel School Bus Incentives Program, based on their pending orders. This $1,600,000 has already been expended or has purchase orders issued against it. A-Z Bus Sales then received an order from the Mount Baldy Joint Unified School District for a CNG school bus. This bus would be eligible for a $60,000 incentive. The bus has not yet been delivered; A-Z Bus Sales is securing funding prior to delivery, as anticipated by Contract #MS09002. Therefore, A-Z Bus Sales requested an additional $60,000 to cover the buydown incentive for this bus. As mentioned above, the MSRC has allocated a total of $3,000,000 for the Alternative Fuel School Bus Incentives Program as part of their FY 2008-09 Work Program, with a balance of $1,400,000 remaining. At its November 19, 2009 meeting, the MSRC unanimously awarded $60,000 out of this allocation to A-Z Bus Sales in order to provide the full incentive for the ordered bus.
FY 2009-10 Work Program
Alternative Fuel Infrastructure Funding Opportunities Program
The MSRC unanimously approved release of Request for Proposals #P2010-15 under the FY 2009-10 AB 2766 Discretionary Fund Work Program. The RFP, with a targeted funding level of $3.15 million, provides funds for new and upgraded or expanded alternative fuel stations. Stations will be eligible for up to 50 percent of station capital equipment, site construction, signage, and reasonable project management costs, not to exceed the following maximum award amounts: $500,000 for new stations that offer around the clock access to any user; $500,000 for new stations that offer two or more eligible alternative fuels and offer access to other fleet users during posted business hours; $400,000 for new stations that offer a single alternative fuel and offer limited or no access to other users; and $300,000 for upgrade and expansion of existing refueling facilities. The MSRC’s co-funding will be inclusive of any AQMD cost-sharing, such that together the combined funding won’t exceed 50 percent of the total costs. Proposals will be competitively ranked on the basis of strategic location/gap closure, potential for multiple users, and fuel throughput/cost effectiveness. The RFP includes an open application period commencing with its release and closing February 9, 2010.
Incentives for Alternative Fuel Engines Program
The MSRC unanimously approved release of Program Announcement #PA2010-05 under the FY 2009-10 AB 2766 Discretionary Fund Work Program. The Program Announcement, with a targeted funding level of $2.35 million, provides funds for the incremental cost of the alternative fuel engine option for new heavy-duty vehicle purchases or the re-power of existing heavy-duty vehicles. Engines with displacements less than ten liters are eligible for a maximum of $35,000 each, and engines with displacements of ten liters or greater are eligible for a maximum of $50,000. All engines must be certified by CARB at or below the 2010 NOx standard of 0.2 g/bhp-hr prior to contract execution, and engines certified under a Family Emission Level by CARB and used in emissions banking and trading programs are not eligible to receive MSRC incentives. Funding for all eligible entities will be distributed on a first-come, first-served basis with a geographic minimum per county of $300,000. The Program Announcement includes an open application period commencing January 19, 2010 and closing February 9, 2010.
Design, Implementation and Evaluation of Telework Programs
The MSRC unanimously approved release of Program Opportunity Notice #PON2010-01 under the FY 2009-10 AB 2766 Discretionary Fund Work Program. The Program Opportunity Notice, with a targeted funding level of $150,000, seeks conceptual ideas for the potential design, implementation and evaluation of telework programs. Objectives to be accomplished include researching perceived barriers to telecommuting, development of strategies to remove the perceived barriers identified, and implementation of trial telework programs at employers which span a diverse spectrum of industries and organizational structures. If the MSRC receives a unique pre-proposal that is in keeping with the Program’s objectives, the MSRC could request that the submitter prepare and submit a full proposal for possible sole-source funding consideration. If the MSRC receives multiple pre-proposals that are meritorious, but offer a similar approach, the MSRC may issue an RFP at some later date. The Program Opportunity Notice includes an open submittal period commencing with its release and closing January 26, 2010.
At this time the MSRC requests the Board to approve the contract modification and to authorize the AQMD Chairman of the Board the authority to execute the agreement as part of the FY 2008-09 Work Program. The MSRC also requests approval to release the solicitations described in this letter under the FY 2009-10 Work Program. The MSRC further 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.
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 (EXE, 1.6m)
1. Alternative Fuel Infrastructure Funding Opportunities RFP #P2010-15
2. Incentives for Alternative Fuel Engines Program Announcement #PA2010-05
3. Design, Implementation and Evaluation of Telework Programs Program Opportunity Notice #PON2010-01