BOARD MEETING DATE: September 11, 2009
AGENDA NO. 9

PROPOSAL:

Approve Contract Modifications and Awards under FYs 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 AB 2766 Discretionary Fund Work Programs and Fund Transfer for Miscellaneous Costs in FY 2009-10

SYNOPSIS:

The MSRC previously approved release of an RFP to solicit technical advisor services. The MSRC unanimously awarded the contract to Raymond Gorski as part of FYs 2009-10, 2010-11 and 2011-12 Work Programs. The MSRC also approved multiple awards for local government match projects; a replacement contract for demonstration CNG buses; augmentation of previously awarded contract to provide alternative fuel school bus incentives for school districts; modifications to contractor names, vehicle locations, and incentive amounts; allocation of funds to incentivize alternative fuel buses for private pupil transportation; as well as awards to provide 511 commuter services outreach and evaluation of the campaign, as part of FYs 2006-07, 2007-08 and 2008-09 Work Programs. Additionally, every year the MSRC adopts an Administrative Budget which includes transference of funds to the AQMD Budget to cover administrative expenses. The MSRC seeks AQMD Board approval of these contract awards and modifications and the fund transfer.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, May 21, June 18, and July 16, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

  1. Approve modification of contract #MS07054 for the purchase of forty natural gas refuse trucks, changing the contractor’s name from Allied Waste Services to Republic Services, as part of the FY 2006-07 Work Program, as described in this letter;
  2. Approve new/replacement contract, as part of FYs 2006-07 and 2008-09 Work Programs, with BusWest, Inc. in the amount of $33,660 to provide two CNG school buses for the Mountain Area CNG School Bus Demonstration Program, as described in this letter;
  3. Approve modification of contract #MS07003 with Westport Fuel Systems, increasing the incentive amount per HPDI system from $35,000 to $45,333 with no increase to the contract value, and providing the incentive as an up-front buydown rather than a rebate under the Advanced Natural Gas Engine Incentive Program, as part of the FY 2006-07 Work Program, as described in this letter;
  4. Approve modifications to the 511 Commuter Services Outreach and Public Awareness Campaign, as part of the FY 2006-07 Work Program, as described in this letter and as follows:
    1. Approve a change in the contractor’s name from Los Angeles County Metropolitan Transportation Authority to Los Angeles Service Authority for Freeway Emergencies (LA SAFE), a reduction in the award amount from $1,000,000 to $700,000, and a reduction in scope limiting outreach to Los Angeles and Orange Counties only, for a previously awarded contract to provide regional outreach for 511 Commuter Services;
    2. Approve a sole-source award to Riverside County Transportation Commission in the amount of $350,000 to provide outreach to Riverside and San Bernardino Counties for 511 Commuter Services; and
    3. Approve a sole-source award to the Better World Group in the amount of $50,000 to conduct pre- and post-511 Outreach campaign surveys and evaluation, and implement this award via an increase in the value of existing contract #MS07058;
  5. Approve contract modifications with Burrtec Waste Industries to change the locations at which heavy-duty, low-emission natural gas trucks will be operated, as part of the FYs 2007-08 and 2008-09 Work Programs, as described in this letter and as follows:
    1. For fifteen trucks originally intended to be operated at Burrtec’s Azusa location, change location to twelve trucks in Azusa and three in Fontana; and
    2. For fifteen trucks originally intended to be operated at Burrtec’s Saugus location, change location to eight trucks in Riverside and seven in Upland;
  6. Approve a funding augmentation in an amount not to exceed $120,000 to existing contract #MS09002 with A-Z Bus Sales under the Alternative Fuel School Bus Incentives Program, using funds previously allocated to this Program but not yet awarded, as part of the FY 2008-09 Work Program, as described in this letter;
  7. Approve a Partial FY 2009-10 AB 2766 Discretionary Fund Work Program with the following elements:
    1. Technical Advisor Services totaling $89,161;
    2. Local Government Match Program projects totaling $2,774,840; and
    3. Alternative Fuel School Bus Incentives for Private Pupil Transportation Providers totaling $2,000,000;
  8. Approve contract award totaling $317,016 to Raymond Gorski for technical advisor services for a two-year term beginning October 1, 2009 and ending September 30, 2011, as described in this letter and as follows:
    1. For the first nine months of the contract term, 75 percent (or $89,161) will be covered in the FY 2009-10 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $29,720) will be covered by the MSRC’s administrative budget for FY 2009-10;
    2. For next twelve months of the contract term, 75 percent (or $118,881) will be covered in the FY 2010-11 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $39,627) will be covered by the MSRC’s administrative budget for FY 2010-11;
    3. For the last three months of the contract term, 75 percent (or $29,720) will be covered in the FY 2011-12 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $9,907) will be covered by the MSRC’s administrative budget for FY 2011-12;
    4. Authorize the MSRC the authority to incorporate and exercise an option clause in the contract to Raymond Gorski for a second two-year term for services from October 1, 2011 to September 30, 2013, subject to funding approval by the MSRC and AQMD Board at a later date;
  9. Approve the award of 29 contracts totaling $5,774,840 (using the $3,000,000 originally allocated in the FY 2008-09 Work Program plus $2,774,840 from the FY 2009-10 Work Program) for the Local Government Match Program as part of the FYs 2008-09 and 2009-10 Work Programs, as described in this letter and as follows:
    1. A contract with the City of Rancho Cucamonga in an amount not to exceed $167,500 for the purchase of up to 2 natural gas heavy-duty vehicles and modifications to their vehicle maintenance facility ($87,572 as part of the FY 2008-09 Work Program and $79,928 as part of the FY 2009-10 Work Program);
    2. A contract with the City of Culver City in an amount not to exceed $200,000 for the purchase of up to 8 natural gas heavy-duty vehicles ($90,567 as part of the FY 2008-09 Work Program and $109,433 as part of the FY 2009-10 Work Program);
    3. A contract with the City of South Pasadena in an amount not to exceed $160,000 for the expansion of their existing CNG station ($72,454 as part of the FY 2008-09 Work Program and $87,546 as part of the FY 2009-10 Work Program);
    4. A contract with the City of Palm Springs in an amount not to exceed $25,000 for the purchase of a natural gas heavy-duty vehicle ($17,297 as part of the FY 2008-09 Work Program and $7,703 as part of the FY 2009-10 Work Program);
    5. A contract with the City of San Bernardino in an amount not to exceed $250,000 for the purchase of up to 10 natural gas heavy-duty vehicles ($130,704 as part of the FY 2008-09 Work Program and $119,296 as part of the FY 2009-10 Work Program);
    6. A contract with the City of Gardena in an amount not to exceed $25,000 for the purchase of a natural gas heavy-duty vehicle ($11,321 as part of the FY 2008-09 Work Program and $13,679 as part of the FY 2009-10 Work Program);
    7. A contract with the City of Riverside in an amount not to exceed $144,470 for a traffic signal synchronization project in conjunction with City of Moreno Valley and Riverside County Transportation Commission ($99,954 as part of the FY 2008-09 Work Program and $44,516 as part of the FY 2009-10 Work Program);
    8. A contract with the City of Riverside in an amount not to exceed $113,030 for a traffic signal synchronization project in conjunction with City of Corona and Riverside County Transportation Commission ($78,202 as part of the FY 2008-09 Work Program and $34,828 as part of the FY 2009-10 Work Program);
    9. A contract with the City of Riverside in an amount not to exceed $80,060 for a traffic signal synchronization project in conjunction with County of Riverside and Riverside County Transportation Commission ($55,391 as part of the FY 2008-09 Work Program and $24,669 as part of the FY 2009-10 Work Program);
    10. A contract with the County of San Bernardino, Department of Public Works in an amount not to exceed $50,000 for the installation of a time-fill CNG station ($26,141 as part of the FY 2008-09 Work Program and $23,859 as part of the FY 2009-10 Work Program);
    11. A contract with the County of San Bernardino, Department of Public Works in an amount not to exceed $200,000 for the purchase of up to 8 CNG heavy-duty vehicles ($104,563 as part of the FY 2008-09 Work Program and $95,437 as part of the FY 2009-10 Work Program);
    12. A contract with the Los Angeles Department of Water and Power in an amount not to exceed $850,000 for the retrofit of up to 85 off-road diesel vehicles with verified diesel emission control systems ($384,912 as part of the FY 2008-09 Work Program and $465,088 as part of the FY 2009-10 Work Program);
    13. A contract with the City of San Juan Capistrano in an amount not to exceed $10,125 for remote vehicle diagnostic systems for up to 45 vehicles as part of the FY 2008-09 Work Program;
    14. A contract with the County of San Bernardino, Fleet Management Department in an amount not to exceed $49,770 for remote vehicle diagnostic systems for up to 252 vehicles ($26,021 as part of the FY 2008-09 Work Program and $23,749 as part of the FY 2009-10 Work Program);
    15. A contract with the City of Palm Desert in an amount not to exceed $39,450 for a traffic signal synchronization project in conjunction with City of Rancho Mirage ($27,294 as part of the FY 2008-09 Work Program and $12,156 as part of the FY 2009-10 Work Program);
    16. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $8,250 for remote vehicle diagnostic systems for up to 15 vehicles ($3,736 as part of the FY 2008-09 Work Program and $4,514 as part of the FY 2009-10 Work Program);
    17. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $150,000 for the purchase of up to 2 natural gas heavy-duty vehicles and up to 4 LPG heavy-duty vehicles ($67,926 as part of the FY 2008-09 Work Program and $82,074 as part of the FY 2009-10 Work Program);
    18. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $400,000 for modifications to their vehicle maintenance facility ($181,135 as part of the FY 2008-09 Work Program and $218,865 as part of the FY 2009-10 Work Program);
    19. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $50,000 for remote vehicle diagnostic systems for up to 85 vehicles ($22,642 as part of the FY 2008-09 Work Program and $27,358 as part of the FY 2009-10 Work Program);
    20. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $250,000 for the repower of up to 5 off-road vehicles with new, lower-emitting engines ($113,209 as part of the FY 2008-09 Work Program and $136,791 as part of the FY 2009-10 Work Program);
    21. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $150,000 to create a freeway detector map interface ($67,926 as part of the FY 2008-09 Work Program and $82,074 as part of the FY 2009-10 Work Program);
    22. A contract with the County of Riverside, Waste Management Department in an amount not to exceed $140,000 for the retrofit of up to 7 off-road diesel vehicles with verified diesel emission control systems ($96,862 as part of the FY 2008-09 Work Program and $43,138 as part of the FY 2009-10 Work Program);
    23. A contract with the City of Whittier in an amount not to exceed $25,000 for the purchase of one natural gas heavy-duty vehicle ($11,321 as part of the FY 2008-09 Work Program and $13,679 as part of the FY 2009-10 Work Program);
    24. A contract with the City of Los Angeles in an amount not to exceed $22,310 for remote vehicle diagnostic systems for up to 107 vehicles ($10,103 as part of the FY 2008-09 Work Program and $12,207 as part of the FY 2009-10 Work Program);
    25. A contract with the City of Los Angeles in an amount not to exceed $825,000 for the purchase of up to 33 natural gas heavy-duty vehicles ($373,591 as part of the FY 2008-09 Work Program and $451,409 as part of the FY 2009-10 Work Program);
    26. A contract with Los Angeles World Airports in an amount not to exceed $475,000 for the purchase of up to 19 natural gas heavy-duty vehicles ($215,098 as part of the FY 2008-09 Work Program and $259,902 as part of the FY 2009-10 Work Program);
    27. A contract with the City of Beverly Hills in an amount not to exceed $550,000 for the purchase of up to 10 natural gas heavy-duty vehicles and installation of a new CNG fueling station ($249,061 as part of the FY 2008-09 Work Program and $300,939 as part of the FY 2009-10 Work Program);
    28. A contract with the City of La Palma in an amount not to exceed $25,000 for the purchase of an LPG heavy-duty vehicle as part of the FY 2008-09 Work Program;
    29. A contract with the City of Fullerton in an amount not to exceed $339,875 for the purchase of up to 2 natural gas heavy-duty vehicles and installation of a new CNG fueling station as part of the FY 2008-09 Work Program.
  10. Approve and allocate $2 million for alternative fuel school bus incentives for private providers of pupil transportation as a part of the FY 2009-10 Work Program, as described in this letter;
  11. Transfer $58,880 from the AB 2766 Discretionary Fund, Special Fund 23, to the FY 2009-10 Budget of Science and Technology Advancement, Services and Supplies Major Object, as provided in Table 1 of this letter to facilitate the payment of MSRC Miscellaneous Direct and Travel Costs;
  12. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary and previously granted in prior work programs; and
  13. Authorize the Chairman of the Board to execute new and modified contracts under FYs 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.
     

Greg Winterbottom
Vice-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.
 

Advanced Natural Gas Engines for Solid Waste Collection Vehicles

As an element of the FY 2006-07 Work Program, the MSRC previously awarded funding to Allied Waste Services, in an amount not to exceed $1,280,000, to purchase 40 refuse trucks equipped with advanced natural gas engines. The contract to effectuate the award was executed on March 7, 2008. Subsequently, Allied Waste Services merged with Republic Services, Inc. At their July 16, 2009 meeting, the MSRC considered Allied Waste Services’ request that the named contractor be changed to Republic Services, Inc. Further details are provided below in the Proposals section.
 

Mountain Area CNG School Bus Demonstration

As an element of the FY 2006-07 Work Program, the MSRC funded the demonstration of two CNG school buses at the Bear Valley Unified School District. This demonstration project was comprised of two elements: 1) the lease of two natural gas buses from BusWest, Inc., and 2) the lease of a portable CNG refueling station. The buses were delivered and accepted for service in late August 2008. However, due to multiple technical issues with the station installation, a substitution of refueling station vendor was performed. Due to the recurrent problems with the original station and its subsequent removal, the buses had not accrued the intended amount of operation. In March 2009, as part of the FY 2008-09 Work Program, the MSRC authorized extending BusWest’s contract for the buses’ lease in order to allow the demonstration to continue through the 2009-10 school year, as well as an increase of up to $90,928 in the contract amount, to cover the additional demonstration period. AQMD proposed to partner with the MSRC on this project and provide $80,000 towards the lease extension; this award to BusWest was approved on May 1, 2009. Therefore, the MSRC’s funding toward the second year lease was reduced to $10,928. The contract modification to effectuate the extension and add these funds was not executed by all appropriate parties prior to the contract’s July 1, 2009 expiration date. On July 16, 2009, the MSRC considered a new/replacement contract for BusWest as an element of the FYs 2006-07 and 2008-09 Work Programs. Further details are provided below in the Proposals section.
 

Class 8 Goods Movement Advanced Natural Gas Engine Incentives

The Cummins ISX equipped with an HPDI system filled a several-year void in the availability of low emission engines for Class 7 and 8 truck applications. As an element of the FY 2006-07 Work Program, the MSRC reprised an element from their FY 2005-06 Work Program by again funding incentives for natural gas HPDI systems installed on Cummins ISX 15-liter engines. In the FY 2005-06 Work Program, the incentive level was $50,000 per vehicle. It was anticipated that economies of scale would result in a decreased HPDI system price for FY 2006-07. Therefore, $35,000 per-vehicle buydown or rebate incentives were authorized on a first-come, first-served basis via a $1.5 million sole-source contract with Westport Fuel Systems. On July 16, 2009, the MSRC considered Westport’s request to increase the per-vehicle incentive amount from $35,000 to $45,333, and to change the incentive mechanism from a rebate to a buydown, for the remainder of the contract. Further details are provided below in the Proposals section.
 

511 Commuter Services Outreach and Public Awareness Campaign

As part of the FY 2006-07 Work Program, the MSRC awarded a $1,000,000 sole-source contract to Los Angeles County Metropolitan Transportation Authority (Metro) to implement a 511 Commuter Services Outreach and Public Awareness Campaign. The new 511 service would provide access to a host of commuter-related service, including but not limited to freeway drive time estimates, transit information, and roadside assistance. Use of MSRC funding was restricted to media placement and before and after surveys, and Metro was selected to implement the regional campaign in order to take advantage of their significant ad buying power and in-house creative resources. Subsequent to the award, but prior to contract execution, a decision was made to separate and apportion outreach activities on a sub-regional basis. The Los Angeles Service Authority for Freeway Emergencies (LA SAFE), on behalf of Metro, will be the lead for Los Angeles and Orange Counties, and the Riverside County Transportation Commission (RCTC) will assume the lead role for 511 outreach activities conducted in Riverside and San Bernardino Counties. As a result of this bifurcation of outreach responsibilities, Metro and RCTC requested the MSRC to bifurcate the original contract and it was determined to engage a third party to perform the pre- and post-campaign surveying and effectiveness evaluation to ensure uniformity, consistency, and completion in a timely manner for both programs. The MSRC considered these requests on July 16, 2009; further details are provided below in the Proposals section.
 

Alternative Fuel Heavy-Duty Engines for On-Road Vehicles

As part of the Alternative Fuel Heavy-Duty Engines for On-Road Vehicles element of the FY 2007-08 Work Program, the MSRC awarded contracts to Burrtec Waste Industries for the purchase of 30 natural gas vehicles to be deployed at Burrtec’s Azusa and Saugus facilities; subsequently, the MSRC awarded additional funding for these projects as part of the FY 2008-09 Work Program. At its May 21, 2009 meeting, the MSRC considered requests from Burrtec to change the locations at which some of these vehicles will be deployed; further details are provided below in the Proposals section.
 

Alternative Fuel School Bus Incentive Program for School Districts

As part of the FY 2008-09 Work Program, the MSRC has allocated a total of $3,000,000 for the Alternative Fuel School Bus Incentives Program to provide buydown incentives for school districts. The MSRC has previously awarded a total of $1,480,000 to A-Z Bus Sales, leaving an available balance of $1,520,000. At its June 18, 2009 meeting, the MSRC considered a request from A-Z Bus Sales for an additional $120,000 for an order from the Newhall School District; further details are provided below in the Proposals section.
 

Technical Advisor Services

The MSRC retains an independent contractor to provide technical assistance in support of the AB 2766 Discretionary Fund Program. The current Technical Advisor contract expires September 30, 2009. Therefore the MSRC unanimously approved release of an RFP, which the AQMD Governing Board subsequently approved for release on May 1, 2009, to solicit proposals to provide technical assistance for a two-year period. The RFP also included language for future consideration of an option to provide technical assistance for a subsequent two-year term. When the RFP closed on June 2, 2009, only one proposal was received. At its June 18, 2009 meeting, the MSRC considered recommendations from its Technical Advisory Committee for these services; details are provided in the Proposals section.
 

Local Government Match Program

As part of the FY 2008-09 Work Program, the MSRC released a $3 million Local Government Match Program Announcement #PA2009-07. Eligible categories include the traditional funding providing a dollar-for-dollar match, up to $25,000 per vehicle for heavy-duty alternative fuel vehicles and up to $400,000 for alternative fuel infrastructure. However, the Local Government Match Program also includes: a category to support the installation of vehicle management systems which perform remote performance monitoring, including monitoring and diagnostics of vehicle emission control system performance, with a maximum award per entity of $50,000 and a maximum total funding level of $250,000 for the category; incentives of up to $50,000 for the repower, or up to $20,000 for the retrofit of existing diesel emergency response vehicles or off-road diesel vehicles; and a $0.50 for dollar match for traffic signal synchronization, with a maximum award of $150,000 per project and a maximum total funding level of $500,000 for the category. Funding for all eligible applications will be distributed on a first-come, first-served basis with a geographic minimum per county of $375,000. The Program Announcement included an open application period commencing March 24, 2009 and closing May 29, 2009. At its July 16, 2009 meeting, the MSRC considered requests for funding from 41 applications under this Program; details are provided in the Proposals section.
 

Alternative Fuel School Bus Incentives for Private Pupil Transportation

AQMD Rule 1195 states that unless incentive moneys are available to pay for incremental costs of the vehicle, private pupil transportation providers cannot be compelled to buy an alternative fuel bus. For many years, the MSRC has supported the replacement of diesel-fueled school buses operated by private providers of pupil transportation. The program was set up so that private pupil transportation providers could apply for incentives, execute participant agreements, and the MSRC would fund incentives up to the amount necessary to ensure compliance with Rule 1195. AQMD staff have administered the program on behalf of MSRC. As part of the FY 2009-10 Work Program, at its July 16, 2009 meeting, the MSRC considered a recommendation to augment this funding based on demand to date with another $2 million; further details are provided below in the Proposals section.
 

FY 2009-10 Administrative Budget

Administrative costs for the AB 2766 Discretionary Program are limited by statute to five percent annually. Every year the MSRC adopts an Administrative Budget for the upcoming fiscal year to ensure costs remain within this limitation. For FY 2009-10, the MSRC adopted an Administrative Budget in the amount of $660,953, which is more than $29,000 below the five percent cap. While the Administrative Budget is adopted annually by the MSRC, staffing and administrative expenditures are not directly drawn from the MSRC fund account, but are paid from AQMD’s budget and subsequently reimbursed from the MSRC fund account. The AQMD FY 2009-10 Budget does not have sufficient funds to cover the MSRC Miscellaneous Direct and Travel Costs administrative expenditures. To address this concern, AQMD staff proposed the MSRC approve a fund transfer to the AQMD’s budget. The MSRC considered this fund transfer at its July 16, 2009 meeting. Further details are provided below in the Proposals section.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, public notices advertising the two solicitations and inviting bids were 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 have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the solicitations was 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 could 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 was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Further, the solicitations were posted on the MSRC’s website at http://www.cleantransportationfunding.org and electronic notifications were sent to those subscribing to this website’s notification service.
 

Bidder’s Conference

A non-mandatory Bidders’ Conference was conducted at AQMD headquarters on March 4, 2009 for the Local Government Match Program. A Bidders’ Conference was not conducted for the Technical Advisor Services RFP.
 

Proposal Evaluation and Panel Composition

Applications received in response to the solicitations were 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.
 

Proposals

At its May 21, June 18, and July 16, 2009 meetings, the MSRC considered recommendations from its MSRC-TAC and unanimously approved the following:
 

Advanced Natural Gas Engines for Solid Waste Collection Vehicles

As mentioned in the Background section, the MSRC previously awarded funding to Allied Waste Services in a total amount not to exceed $1,280,000 to purchase 40 advanced natural gas refuse trucks. The AQMD Board approved the award on September 7, 2007, and a contract was executed with Allied Waste Services to effectuate the award. Allied Waste Services merged with Republic Services Inc. in December 2008. They requested that the contractor name be changed to Republic Services Inc. Republic Services has represented that they will assume and comply with the performance requirements of the contract. At their July 16, 2009 meeting, the MSRC approved the request. It was the legal recommendation that the change be approved by the AQMD Board; thus, the MSRC requests AQMD Board approval of the change of the contractor’s name for this contract under the FY 2006-07 Work Program.
 

Mountain Area CNG School Bus Demonstration

As mentioned in the Background section, the MSRC previously approved additional funding and a term extension of Contract #MS07004 for BusWest to continue providing two CNG school buses for demonstration by the Bear Valley Unified School District. The contract expired before the extension could be executed. At their July 16, 2009 meeting, the MSRC approved a new/replacement contract with BusWest in an amount not to exceed $33,660 ($22,732 as part of the FY 2006-07 Work Program and $10,928 as part of the FY 2008-09 Work Program) for a term no greater than five months. The total funding expended between the original and replacement contracts would not exceed the $101,856 previously authorized.
 

Class 8 Goods Movement Advanced Natural Gas Engine Incentives

As mentioned in the Background section, the MSRC previously approved a $35,000 per-vehicle incentive for vehicles equipped with the HPDI system. Incentives were to be provided on a first-come, first-served basis via a $1.5 million sole-source contract with Westport Fuel Systems. While Westport had no difficulty in fulfilling the preceding FY 2005-06 contract, which offered incentives of $50,000 per vehicle, they found few customers willing to make HPDI system purchases at the $35,000 incentive level. They calculate the full incremental cost of the HPDI system, including state and federal taxes, at $97,000—about $68,000 if the customer has the tax liability to take the $28,800 Federal Tax Credit. Westport requested to increase the per-vehicle incentive amount from $35,000 to $45,333, which would correspondingly reduce the number of incentives remaining from 38 to 30. Westport further requested to change the incentive mechanism from a rebate to a buydown for the remainder of the contract. Buying the vehicle at a lower cost would reduce the sales tax owed. On July 16, 2009, as part of the FY 2006-07 Work Program, the MSRC approved the increase in per-vehicle incentive from $35,000 to $45,333 and the change from a rebate to an up-front buydown.
 

511 Commuter Services Outreach and Public Awareness Campaign

As discussed in the Background section, the MSRC 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. As a result of this bifurcation of outreach responsibilities, Metro and RCTC requested the MSRC to bifurcate the original contract and it was also decided to engage a third party to perform the pre- and post-campaign surveying and effectiveness evaluation to ensure uniformity and completion in a timely manner for both programs. Metro further requested that the contractor name for the Los Angeles/Orange County portion of the project be changed to LA SAFE because LA SAFE is a public entity authorized to establish a 511 traveler information system. On July 16, 2009, the MSRC approved modification of the original award to Metro as well as the award of two additional sole-source contracts, as part of the FY 2006-07 Work Program, as follows:

  1. For the previously awarded contract to provide regional outreach for 511 Commuter Services, change the contractor’s name from Los Angeles County Metropolitan Transportation Authority to LA SAFE, reduce the award amount from $1,000,000 to $700,000, and reduce scope limiting outreach to Los Angeles and Orange Counties only;
  2. Approve a sole-source award to Riverside County Transportation Commission, for which the sole-source justification is provided below, in the amount of $350,000 to provide outreach to Riverside and San Bernardino Counties for 511 Commuter Services; and
  3. Approve a sole-source award to the Better World Group, for which the sole-source justification is provided below, in the amount of $50,000 to conduct pre- and post-511 Outreach campaign surveys and evaluation, and implement this award via an increase in the value of existing contract #MS07058.
     

Alternative Fuel Heavy-Duty Engines for On-Road Vehicles

As discussed in the Background section, the MSRC awarded funding to Burrtec Waste Industries for the purchase of 30 natural gas vehicles to be deployed at Burrtec’s Azusa and Saugus facilities. Two contracts were executed to effectuate the awards. Subsequently, due to contractual agreements with jurisdictions served by these facilities, Burrtec’s need to deploy new CNG trucks has been reduced in Azusa and eliminated in Saugus. Burrtec requested to deploy three trucks in Fontana instead of Azusa, and eight trucks in Riverside and seven trucks in Upland instead of Saugus. The trucks would still meet the Program criteria for accruing at least 85% of their operation with AQMD jurisdiction. At their May 21, 2009 meeting, the MSRC approved the requested location changes for Burrtec’s trucks as part of the FYs 2007-08 and 2008-09 Work Programs.
 

Alternative Fuel School Bus Incentive Program for School Districts

As mentioned in the Background section, A-Z Bus Sales requested additional funds under the MSRC’s Alternative Fuel School Bus Incentives Program for school districts. A-Z Bus Sales received an order form the Newhall school district for two CNG buses. The buses would each be eligible for a $60,000 incentive, totaling $120,000. At their June 18, 2009 meeting, acting as a Committee of the Whole, the MSRC awarded $120,000 to A-Z Bus Sales to fulfill the Newhall school district order as part of the FY 2008-09 Work Program. The MSRC ratified this action at their July 16, 2009 meeting.
 

Technical Advisor Services

As discussed in the Background section, the MSRC released an RFP to solicit proposals for Technical Advisor services. Although other inquiries were made, only one proposal was received by the closing date of June 2, 2009. The proposal was from Raymond Gorski, the MSRC’s current Technical Advisor, and it received an average score of 92 points. There were several tasks in the RFP Scope of Work, including vehicle incentive program support, participation at technical symposia and conferences, and special projects, which are dependent upon future MSRC direction. Due to uncertainties associated with these tasks, Mr. Gorski did not assign labor hours to the tasks and they were not included in the 1,400 hours per year proposed. The MSRC unanimously awarded a contract in the amount of $317,016 to Raymond Gorski for a two-year term beginning October 1, 2009 and ending September 30, 2011. This includes a 150-hour per year contingency for special projects, amounting to $46,620 over two years, which would only be initiated via Task Order upon direction of the MSRC. The contract will also include an option clause to be exercised at the MSRC’s discretion, for a subsequent two-year term, which will include a two percent increase, subject to funding approval by the AQMD Board at a later date. Funding specifics for the first two-year term are as follows:

  1. For the first nine months of the contract term, 75 percent (or $89,161) will be covered in the FY 2009-10 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $29,720) will be covered by the MSRC’s administrative budget for FY 2009-10;
  2. For next twelve months of the contract term, 75 percent (or $118,881) will be covered in the FY 2010-11 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $39,627) will be covered by the MSRC’s administrative budget for FY 2010-11;
  3. For the last three months of the contract term, 75 percent (or $29,720) will be covered in the FY 2011-12 AB 2766 Discretionary Fund Work Program and the balance (25 percent or $9,907) will be covered by the MSRC’s administrative budget for FY 2011-12.
     

Local Government Match Program

As mentioned in the Background section, as an element of their FY 2008-09 Work Program, the MSRC released a $3 million Local Government Match Program Announcement. The MSRC considered requests for funding from 41 applications under this Program. In accordance with the Program Announcement, the following ranking methodology was used: 1) meet geographical funding minimums in order of application receipt; then 2) ensure all applications received on the first day receive funding; and lastly 3) fund remaining applications in order of receipt. At their July 16, 2009 meeting, the MSRC approved funding totaling $5,774,840 for 29 applications, using the $3,000,000 originally allocated to the Local Government Match Program from the FY 2008-09 Work Program plus $2,774,840 from the FY 2009-10 Work Program, as follows:

  1. A contract with the City of Rancho Cucamonga in an amount not to exceed $167,500 for the purchase of up to 2 natural gas heavy-duty vehicles and modifications to their vehicle maintenance facility ($87,572 as part of the FY 2008-09 Work Program and $79,928 as part of the FY 2009-10 Work Program);
  2. A contract with the City of Culver City in an amount not to exceed $200,000 for the purchase of up to 8 natural gas heavy-duty vehicles ($90,567 as part of the FY 2008-09 Work Program and $109,433 as part of the FY 2009-10 Work Program);
  3. A contract with the City of South Pasadena in an amount not to exceed $160,000 for the expansion of their existing CNG station ($72,454 as part of the FY 2008-09 Work Program and $87,546 as part of the FY 2009-10 Work Program);
  4. A contract with the City of Palm Springs in an amount not to exceed $25,000 for the purchase of a natural gas heavy-duty vehicle ($17,297 as part of the FY 2008-09 Work Program and $7,703 as part of the FY 2009-10 Work Program);
  5. A contract with the City of San Bernardino in an amount not to exceed $250,000 for the purchase of up to 10 natural gas heavy-duty vehicles ($130,704 as part of the FY 2008-09 Work Program and $119,296 as part of the FY 2009-10 Work Program);
  6. A contract with the City of Gardena in an amount not to exceed $25,000 for the purchase of a natural gas heavy-duty vehicle ($11,321 as part of the FY 2008-09 Work Program and $13,679 as part of the FY 2009-10 Work Program);
  7. A contract with the City of Riverside in an amount not to exceed $144,470 for a traffic signal synchronization project in conjunction with City of Moreno Valley and Riverside County Transportation Commission ($99,954 as part of the FY 2008-09 Work Program and $44,516 as part of the FY 2009-10 Work Program);
  8. A contract with the City of Riverside in an amount not to exceed $113,030 for a traffic signal synchronization project in conjunction with City of Corona and Riverside County Transportation Commission ($78,202 as part of the FY 2008-09 Work Program and $34,828 as part of the FY 2009-10 Work Program);
  9. A contract with the City of Riverside in an amount not to exceed $80,060 for a traffic signal synchronization project in conjunction with County of Riverside and Riverside County Transportation Commission ($55,391 as part of the FY 2008-09 Work Program and $24,669 as part of the FY 2009-10 Work Program);
  10. A contract with the County of San Bernardino, Department of Public Works in an amount not to exceed $50,000 for the installation of a time-fill CNG station ($26,141 as part of the FY 2008-09 Work Program and $23,859 as part of the FY 2009-10 Work Program);
  11. A contract with the County of San Bernardino, Department of Public Works in an amount not to exceed $200,000 for the purchase of up to 8 CNG heavy-duty vehicles ($104,563 as part of the FY 2008-09 Work Program and $95,437 as part of the FY 2009-10 Work Program);
  12. A contract with the Los Angeles Department of Water and Power in an amount not to exceed $850,000 for the retrofit of up to 85 off-road diesel vehicles with verified diesel emission control systems ($384,912 as part of the FY 2008-09 Work Program and $465,088 as part of the FY 2009-10 Work Program);
  13. A contract with the City of San Juan Capistrano in an amount not to exceed $10,125 for remote vehicle diagnostic systems for up to 45 vehicles as part of the FY 2008-09 Work Program;
  14. A contract with the County of San Bernardino, Fleet Management Department in an amount not to exceed $49,770 for remote vehicle diagnostic systems for up to 252 vehicles ($26,021 as part of the FY 2008-09 Work Program and $23,749 as part of the FY 2009-10 Work Program);
  15. A contract with the City of Palm Desert in an amount not to exceed $39,450 for a traffic signal synchronization project in conjunction with City of Rancho Mirage ($27,294 as part of the FY 2008-09 Work Program and $12,156 as part of the FY 2009-10 Work Program);
  16. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $8,250 for remote vehicle diagnostic systems for up to 15 vehicles ($3,736 as part of the FY 2008-09 Work Program and $4,514 as part of the FY 2009-10 Work Program);
  17. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $150,000 for the purchase of up to 2 natural gas heavy-duty vehicles and up to 4 LPG heavy-duty vehicles ($67,926 as part of the FY 2008-09 Work Program and $82,074 as part of the FY 2009-10 Work Program);
  18. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $400,000 for modifications to their vehicle maintenance facility ($181,135 as part of the FY 2008-09 Work Program and $218,865 as part of the FY 2009-10 Work Program);
  19. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $50,000 for remote vehicle diagnostic systems for up to 85 vehicles ($22,642 as part of the FY 2008-09 Work Program and $27,358 as part of the FY 2009-10 Work Program);
  20. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $250,000 for the repower of up to 5 off-road vehicles with new, lower-emitting engines ($113,209 as part of the FY 2008-09 Work Program and $136,791 as part of the FY 2009-10 Work Program);
  21. A contract with the County of Los Angeles, Department of Public Works in an amount not to exceed $150,000 to create a freeway detector map interface ($67,926 as part of the FY 2008-09 Work Program and $82,074 as part of the FY 2009-10 Work Program);
  22. A contract with the County of Riverside, Waste Management Department in an amount not to exceed $140,000 for the retrofit of up to 7 off-road diesel vehicles with verified diesel emission control systems ($96,862 as part of the FY 2008-09 Work Program and $43,138 as part of the FY 2009-10 Work Program);
  23. A contract with the City of Whittier in an amount not to exceed $25,000 for the purchase of one natural gas heavy-duty vehicle ($11,321 as part of the FY 2008-09 Work Program and $13,679 as part of the FY 2009-10 Work Program);
  24. A contract with the City of Los Angeles in an amount not to exceed $22,310 for remote vehicle diagnostic systems for up to 107 vehicles ($10,103 as part of the FY 2008-09 Work Program and $12,207 as part of the FY 2009-10 Work Program);
  25. A contract with the City of Los Angeles in an amount not to exceed $825,000 for the purchase of up to 33 natural gas heavy-duty vehicles ($373,591 as part of the FY 2008-09 Work Program and $451,409 as part of the FY 2009-10 Work Program);
  26. A contract with Los Angeles World Airports in an amount not to exceed $475,000 for the purchase of up to 19 natural gas heavy-duty vehicles ($215,098 as part of the FY 2008-09 Work Program and $259,902 as part of the FY 2009-10 Work Program);
  27. A contract with the City of Beverly Hills in an amount not to exceed $550,000 for the purchase of up to 10 natural gas heavy-duty vehicles and installation of a new CNG fueling station ($249,061 as part of the FY 2008-09 Work Program and $300,939 as part of the FY 2009-10 Work Program);
  28. A contract with the City of La Palma in an amount not to exceed $25,000 for the purchase of an LPG heavy-duty vehicle as part of the FY 2008-09 Work Program;
  29. A contract with the City of Fullerton in an amount not to exceed $339,875 for the purchase of up to 2 natural gas heavy-duty vehicles and installation of a new CNG fueling station as part of the FY 2008-09 Work Program.
     

Alternative Fuel School Bus Incentives for Private Pupil Transportation

As mentioned in the Background section, the MSRC has previously funded incentives for private providers of pupil transportation to purchase alternative fuel school buses. AQMD staff has been administering the program on behalf of the MSRC. The last of the previously allocated FY 2006-07 Work Program funding was exhausted with an award to Student Transportation of America, which the MSRC approved in February 2009. At its July 16, 2009 meeting, the MSRC approved allocating an additional $2 million as part of the FY 2009-10 Work Program.
 

FY 2009-10 Administrative Budget

As mentioned in the Background section, every year the MSRC adopts an Administrative Budget for the upcoming fiscal year to ensure costs remain within the legislatively-mandated five percent cap for administrative expenses. For FY 2009-10, the MSRC adopted an Administrative Budget in the amount of $660,953. At its July 16, 2009 meeting, the MSRC unanimously approved a fund transfer of $58,880 to the AQMD Science and Technology Advancement FY 2009-10 Budget to facilitate the payment of MSRC Miscellaneous Direct and Travel Costs included in the MSRC’s FY 2009-10 Administrative Budget as shown in Table 1. Staff will track expenses throughout the year, report to the MSRC on actual expenses, and any unused monies will be transferred back to the MSRC’s discretionary fund account (Fund 23) at the end of the fiscal year. The MSRC requests AQMD Board approval of this fund transfer of $58,880 for FY 2009-10 as provided in Table 1.

Table 1. Estimated FY 2009-10 MSRC Miscellaneous and Direct Expenditures Proposed to be Allocated to AQMD Science and Technology Advancement FY 2009-10 Budget
 

  Budget
Code		 Program
Code		 Estimated
 Expenditure
Professional & Special Services 44003 67450 $9,360
Public Notice 44003 67500 $6,240
Communications 44003 67900 $520
Postage 44003 68060 $10,400
Office Expense/Supplies 44003 68100 $15,600
Miscellaneous Expense 44003 69700 $9,260
Conference- Related Expense 44003 69700 $5,000
Travel Costs 44003 67800 $2,500
Total     $58,880

At this time the MSRC requests the AQMD Board to approve the Partial FY 2009-10 AB 2766 Discretionary Fund Work Program as outlined above. The MSRC also requests the Board to authorize the AQMD Chairman of the Board the authority to execute all agreements described in this letter under the FYs 2006-07 through 2009-10 Work Programs. 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. Finally, the MSRC requests the AQMD Board to authorize a fund transfer of $58,880 from Fund 23 to Science & Technology Advancement’s Budget.

Sole Source Justifications

Previously, the MSRC and AQMD Board awarded $1,000,000 to Metro to implement a 511 Commuter Services Outreach and Public Awareness Campaign. Metro has since indicated that LA SAFE is a more appropriate entity to be the contractor of record, because LA SAFE is a public entity authorized to implement a 511 system. Additionally, a subsequent decision has been made to separate and apportion outreach activities on a sub-regional basis, leading Metro and RCTC to request the MSRC to bifurcate the original contract. Rather than have either LA SAFE or RCTC perform the pre- and post-campaign surveying and effectiveness evaluation for the entire region, it was decided that the MSRC should engage a third party to perform this work. The MSRC approved the award of two sole-source contracts to effectuate these changes.

  1. The request for a sole source award to RCTC is made under provision VIII.B.2.c.(1): The unique experience and capabilities of the proposed contractor or contractor team. RCTC is the only entity implementing 511 outreach in Riverside and San Bernardino Counties.
  2. The request for a sole source award to the Better World Group is made under provision VIII.B.2.c.(1): The unique experience and capabilities of the proposed contractor or contractor team; VIII.B.2.d.(2): Time extension of an existing contract; and VIII.B.2.d.(3): The project involves a commitment to multiple project phases. It is anticipated that outreach campaign activities by LA SAFE and RCTC will commence in early fall. The Better World Group is already under contract to serve as the MSRC’s Programmatic Outreach Coordinator, and has previously performed surveys and evaluated the results on behalf of the MSRC. This allows the Better World Group to begin work immediately on pre-campaign surveying, which by its nature must be completed prior to the launch of the outreach campaign in order to be of value. The project involves multiple phases, including a post-campaign survey and evaluation.

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.


This page updated: June 25, 2015
URL: ftp://lb1/hb/2009/September/09099a.htm