BOARD MEETING DATE: September 11, 2009
AGENDA NO. 26

REPORT:

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s regularly scheduled meetings on July 16 and August 20, 2009. The MSRC’s next scheduled meeting is September 10, 2009, at 2:00 p.m. in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.
 

Henry Hogo
Assistant Deputy Executive Officer/
Science & Technology Advancement

Approved July 16, 2009 MSRC Meeting Minutes

The July 16, 2009 MSRC meeting minutes were approved by the MSRC at its August 20, 2009 meeting; they are attached for your information (Attachment 1). At the July 16, 2009 meeting, the MSRC also ratified the actions taken at its June 18, 2009 meeting, which were taken by a committee of the whole due to the lack of a quorum. The actions taken on June 18, 2009, were enumerated in the committee report provided to the AQMD Board at its July 10, 2009 meeting.
 

Clarify Approval of Technical Advisor Services Contract

At its June 18, 2009 meeting, as a committee of the whole, the MSRC approved a new two-year contract in the amount of $317,016 for Technical Advisor Services for FYs 2009-10 & 2010-11, including a two-year option to extend, subject to approval by the MSRC and AQMD Board. At its August 20, 2009 meeting, the MSRC ratified this action and addressed a request by staff for clarification on the option to extend. The MSRC clarified that the contract will include an option clause to be exercised at the MSRC’s discretion, for a subsequent two-year term in the amount of $323,356, which includes a two percent increase, subject to approval by the AQMD Board at a later date. The AQMD Board will consider this contract award at its September 11, 2009 meeting.
 

Approval of Fund Transfer for FY 2009-10 Administrative Expenses

Administrative costs for the AB 2766 Discretionary Program are limited to five percent annually per statute. Every year the MSRC adopts an Administrative Budget for the upcoming fiscal year to ensure costs remain within this limitation. On June 18, 2009, as a committee of the whole, the MSRC adopted its FY 2009-10 Administrative Budget in the amount of $660,953, nearly $30,000 below the five percent cap. The MSRC ratified this action at its July 16, 2009 meeting. However, while the Administrative Budget is adopted annually by the MSRC, expenditures are not directly drawn from the MSRC fund account, but are taken directly from the AQMD’s budget and subsequently reimbursed from the MSRC fund account. In order to do this, a fund transfer must be done. Thus, on July 16, 2009, the MSRC approved a fund transfer in the amount of $58,880 from Special Fund 23 to the AQMD’s FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, to facilitate payment of MSRC Miscellaneous Direct and Travel Costs. The fund transfer is subject to AQMD Board approval on September 11, 2009.
 

Issuance of New/Replacement Contract for CNG Bus Demonstration

The MSRC awarded BusWest, Inc. $90,928 for the lease of two CNG school buses to support the Mountain Area CNG School Bus Demonstration Program. The buses entered service in August 2008. Due to refueling infrastructure difficulties, the buses were unable to accrue the intended length of service. Consequently, in March 2009 the MSRC approved augmenting the contract in the amount of $10,928 and extending the lease term. Unfortunately, the modification was not executed before the contract’s expiration date. Of the $101,856 approved for the bus leases, $33,660 remains currently unspent. At its July 16, 2009 meeting, the MSRC unanimously approved a new/replacement contract to BusWest, Inc. in an amount not to exceed $33,660 for a five-month term to fulfill the MSRC’s intent. The replacement contract is subject to AQMD Board approval on September 11, 2009.
 

Modifications to MSRC’s Regional 511 Outreach Program

The MSRC previously awarded a $1,000,000 sole-source contract to the Los Angeles County Metropolitan Transportation Authority to implement an outreach campaign for 511 Commuter Services. Subsequently, a decision was made to separate and apportion outreach activities on a sub-regional basis. At its July 16, 2009 meeting, the MSRC unanimously agreed to bifurcate the original Metro contract and approved a reduction in scope and contract value in the amount of $300,000, as well as a contractor name change from Metro to LA SAFE, which is the legal public entity authorized to establish a 511 traveler information system. The MSRC also approved LA SAFE’s Media Plan for their 511 Outreach Program. Next, the MSRC awarded a $350,000 sole-source contract to RCTC for implementation of a similar outreach program in Riverside and San Bernardino Counties. Finally, the MSRC awarded a $50,000 sole-source contract to The Better World Group, which is the MSRC’s existing Outreach Coordinator. The Better World Group will perform pre- and post-campaign surveying and effectiveness evaluation to ensure uniformity and completion in a timely manner for both programs. These actions are subject to AQMD Board approval on September 11, 2009. On August 20, 2009, the MSRC approved RCTC’s Media Plan for their 511 Outreach Program.
 

Approval of Local Government Match Program Projects

The MSRC allocated $3 million for the FY 2008-09 Local Government Match Program to fund alternative fuel vehicle and infrastructure projects as well as repowers and retrofits of emergency response and off-road vehicles, multi-jurisdictional traffic signal synchronization, and remote diagnostics of fleet vehicles. A total of 41 applications requesting more than $11 million were received when the Program Announcement closed on May 29, 2009. The PA included a $375,000 geographic minimum per county with funding to be awarded on a first-come, first-served basis; with applications received the first day deemed received at the same time. Funding requested the first day in the 27 applications received totaled $5.4 million. Staff prorated projects to remain within the $3 million allocated and prepared two backup lists. The first backup list, which would require an additional $2,774,840 in funding allocation, represents full funding for all applications received the first day as well as meeting the geographic minimum. The second backup list, totaling $5,252,341, would provide funding for all remaining applications received. Some cities have applied for Federal Stimulus monies, which may reduce their MSRC funding requests but this will be addressed at a later time when more details are known. At its July 16, 2009 meeting, the MSRC approved full funding for all applications received the first day as well as projects which would meet the geographic minimum totaling $5,774,840. The additional $2.77 million was approved as part of the FY 2009-10 AB 2766 Discretionary Fund Work Program.
 

Additional Alternative Fuel School Bus Funding for Private Pupil Transportation Providers

The MSRC previously allocated $4 million to buydown the cost of alternative fuel school buses for private pupil transportation providers as part of its FY 2006-07 Work Program. These funds have been exhausted but demand for incentives continues. To ensure compliance with Fleet Rule 1195, at its July 16, 2009 meeting, the MSRC unanimously approved allocating $2 million as part of its FY 2009-10 AB 2766 Discretionary Fund Work Program to continue to provide these incentives for the near future.
 

Update on FY 2009-10 AB 2766 Discretionary Fund Work Program

It is estimated that approximately $16 million is available for the FY 2009-10 AB 2766 Discretionary Fund Work Program. This includes projected revenue and interest, carryover and turnback funds. With the two allocations above approximately $11.3 million is still available for allocation under the FY 2009-10 Work Program. The MSRC-TAC formed four subcommittees to develop recommendations on how to allocate these funds. The MSRC will consider recommendations in September.
 

Received and Approved Final Reports

The MSRC received and approved the following final reports at their July 16 and August 20 meetings:

1. SunLine Transit Agency Contract #MS08022, which provided $311,625 towards the purchase of 15 CNG buses;
2. Pupil Transportation Cooperative Contract #MS08065, which provided $10,500 to existing CNG station modifications;
3. City of Culver City Contract #MS07055, which provided $192,000 towards the purchase of six refuse trucks equipped with advanced CNG engines;
4. Ware Disposal Company Contract #MS08020, which provided $900,000 towards the purchase of 30 refuse trucks equipped with advanced CNG engines; and
5. Consolidated Disposal Service Contract #MS06012, which provided $297,981 for installation of an LNG station and maintenance facility modifications.

All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's website at http://www.cleantransportationfunding.org.
 

Contract Modification Requests

At its July 16 and August 20, 2009 meetings, the MSRC considered contract modification requests and took the following unanimous actions:

1. For Westport Fuel Systems Contract #MS07003, which provides $1,500,000 for an Advanced Natural Gas Engine Incentive Program, approval of a six-month no-cost contract term extension, an increase in the incentive amount per vehicle from $35,000 to $45,333, and a change in the incentive mechanism from a rebate to a buydown (the incentive increase and mechanism are subject to AQMD Board approval on September 11, 2009);
2. For Allied Waste Services Contract #MS07054, which provides $1,280,000 towards the purchase of 40 natural gas refuse trucks, approval of a two-year no-cost contract term extension, and contractor name change to Republic Services Inc. as a result of a company merger (the name change is subject to AQMD Board approval on September 11, 2009);
3. For City of Inglewood Contract #ML06031, which provides $225,000 towards the purchase of seven heavy-duty LPG vehicles and installation of an LPG station, approval of a one-year no-cost contract term extension;
4. For City of Garden Grove Contract #ML07024, which provides $75,000 towards the purchase of three heavy-duty CNG vehicles, approval of a ten-month no-cost contract term extension;
5. For CR&R Inc. Contract #MS07057, which provides $896,000 towards the purchase of 28 natural gas refuse trucks, approval of a ten-month no-cost contract term extension;
6. For City of La Habra Contract #ML07033, which provides $75,000 towards the purchase of heavy-duty CNG vehicles and CNG station upgrade, approval of a 13-month no-cost contract term extension;
7. For Consolidated Disposal Service Contract #MS06012, which provides $297,981 for installation of an LNG station and maintenance facility modifications, approval of a one-year no-cost contract term extension, but denial of a contract value increase to cover higher than estimated project costs.

The MSRC also approved an amount not to exceed $250 for lodging expenses incurred by MSRC Chair Ron Roberts while attending the AQMD’s August 3-4, 2009 Green Tech Connect Forum in Pasadena, California; and $1,300 to procure promotional items for the MSRC’s booth at the same event and future events as supplies last.
 

Contracts Administrator’s Report

The MSRC's AB 2766 Contracts Administrator provides a written status report on all open contracts from FY 2002-03 through the present. The Contracts Administrator’s Report for August 2009 is attached (Attachment #2) for your information.
 

Attachments (EXE, 268k)

#1 – Approved 7/16/09 MSRC Minutes
#2 – August 2009 Contracts Administrator’s Report