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HomeMy WebLinkAbout13 - AQMD Matching Funds for Alternative Fuel ProgramCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 13 May 11, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director (949) 644 -3055 mharmon @newportbeachca.gov SUBJECT: Approve Agreement with the South Coast Air Quality Management District (AQMD) to Accept Matching Funds of $162,500 for the City's Alternative Fuel Program ISSUE: Should the City Council approve the agreement with the AQMD to accept matching funds of $162,500 for the City's alternative fuel program? RECOMMENDATIONS: Approve the agreement with the AQMD to accept matching funds of $162,500 for the City's alternative fuel program. DISCUSSION: On July 14, 2009, the City Council authorized the purchase of four (4) compressed natural gas (CNG) refuse collection trucks (Attachment 1). The trucks have been received and started working collection routes earlier this month. The funding for these trucks included $154,000 from the City's AQMD Fund Surplus (AB2766 Subvention Funds), which are funds that the City receives through a vehicle registration surcharge. The AB2766 Subvention Funds must be used to fund local programs that reduce air pollution. The City currently has a balance of over $500,000 in the AQMD Fund Surplus account. During this time, staff submitted an application to participate in the AQMD Local Government Match Program, which is a grant program that matches the AB2766 Subvention Funds expended by cities for clean air /alternative fuel programs. On November 17, 2009, the City was informed by letter (Attachment 2) that the MSRC Committee of the AQMD had approved our application. By entering into the agreement AQMD Matching Funds Contract: Alternative Fuel Program May 11, 2010 Page 2 with the AQMD /MSRC, the City will receive $162,500 to offset the cost of the new refuse trucks that we have purchased, the renovation of the fleet shop so work can be completed on CNG equipment, and installation of a security camera at the new CNG fueling station. Financial Review The City recently purchased four (4) CNG powered refuse collection trucks. The total cost was $896,304, of which $154,000 came from the City's AQMD Surplus Fund. AQMD has awarded the City $162,500 in matching funds to offset our cost in promoting the use of clean air vehicles. The use of the funds shall be as follows: 1) $100,000 for the purchase of the refuse trucks ($25,000 per truck) 2) $12,500 for the CNG station upgrade (security camera system) 3) $50,000 for the modification of the fleet maintenance shop The $162,500 from the AQMD will be placed in Revenue Account #610 -4895: Equipment Fund- Refund and Rebates- Governmental. Environmental Review: This project does not require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Legal Review The City Attorney's Office has reviewed this report and signed the attached Contract. Submitted /Prepared by: General Services Director AQMD Matching Funds Contract: Alternative Fuel Program May 11, 2010 Page 3 Attachments 1) Staff Report (July 14, 2009) 2) AQMD Approval Letter to City (November 17, 2009) 3) AQMD /MSRC Matching Fund Contract CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 July 14, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Harmon, General Services Director 949 - 644 -3055 or mharmon @c4.newport- beach.ca.us Homer Bludau, City Manager 949/6443000 or hbludau (a)citv.newoort- beach.ca.us SUBJECT: Authorization to Purchase Four (4) Compressed Natural Gas (CNG) Refuse Collection Trucks ISSUE: Should the City Council authorize the purchase of two (2) CNG front loader refuse collection trucks and two (2) CNG rear loader refuse collection trucks, and approve a budget amendment to supplement the funding of this purchase? RECOMMENDATION: Authorize the purchase of two (2) Autocar WXLL64 /ACX64 CNG front loader refuse collection trucks from Carmenita Truck Center in the amount of $244,461 apiece; authorize the purchase of two (2) Peterbiit 320 CNG rear loader refuse collection trucks from Rush Truck Center in the amount of $203,691 apiece; and approve the attached budget amendment transferring $154,000 from un- appropriated AQMD Fund surplus to Account 2766 -9108 (AQMO Division- Alternative Fuel Vehicles) to supplement the funding of this purchase. DISCUSSION: Background: City crews and equipment are responsible for servicing approximately 70% of the residential refuse collection accounts in Newport Beach. To accomplish this, the Genera( Services Department utilizes two different type trucks; the front loader collection vehicle for wider streets in mostly single family residential areas, and the smaller rear loader truck designed to work in narrow alley ways and crowded streets. The City currently operates 25 of these refuse collection vehicles. CNG Refuse Coltection Truck Purchase Jury 14, 2009 Page 2 In 2001, the Air Quality Management District (AQMD), concerned with air quality problems in the District, adopted several rules that mandate the type of vehicles agencies may purchase when replacing heavy equipment. AQMD Rule 1193 applies directly to refuse collection equipment, and requires that all new trucks purchased must be powered by a clean air fuel approved by AQMD. For heavy trucks, this fuel would be compressed natural gas (CNG), liquefied natural gas (LNG), or propane. Since the implementation of the AQMD requirements, the City has deferred replacing refuse collection equipment until such time as an alternative fuel program could be established. The two necessary components of an alternative fuel program are a fueling station and a fleet maintenance shop capable of working on natural gas vehicles. In June 2008, Council approved an agreement with Clean Energy, Inc., to install a CNG fueling station at the City Maintenance Yard. In addition to this the City Council, as part of the 2009/10 budget, approved funding for the renovation of the existing fleet maintenance shop to accommodate the maintenance and repairs of CNG equipment_ The next step in the program is the purchase of replacement trucks that are powered by clean burning, CNG fuel. City Council Policy F -9 recommends the replacement of refuse collection vehicles every 8 years or 100,000 miles. Staff is recommending the replacement of the following - vehicles with this purchase, Vehicle No. Year Mileage 5005 1996 89,000 5029 1994 126,000 5007 1994 128,500 5011 1994 120,000 The four trucks listed above have exceeded their established service capacity and have become unreliable and costly to maintain. Competitive Bids Front Loader Refuse Trucks- On May 5, 2009, the City received five proposals for front loader refuse collection trucks (attachment ii) per the specifications issued by the City. The lowest responsive bid for the two trucks was submitted by Carmenita Truck Center in the amount of $488,922, with a delivery date from 140 to 210 days. CNG Refuse Collection Truck Purchase July 14, 2009 Page 3 Rear Loader Refuse Trucks- On May 5, 2009, the City received eight proposals for rear loader refuse collection trucks (attachment iii) per the specifications issued by the City. The lowest responsive bid for the two trucks was submitted by Rush Truck Center in the amount of $407,382, with a delivery date of 150 days. Environmental Review: The City Council's approval of this item does not require environmental review. Public Notice: The agenda item has been noticed according to the Brown Act (72 hours in advance of meeting at which the City Council considers the item). Financial Information: The total cost for the purchase of the four refuse collection vehicles is $896,304. Staff is recommending the funding for the purchase of these vehicles come from two separate funding sources: FY200912010 Budget- The equipment replacement budget for this fiscal year includes $1,400,000 for the purchase of CNG alternative fuel equipment. Staff is recommending that $742,304 of these funds be directed towards the purchase of the new refuse trucks. AQMD Fund Surplus (2766 Funds)- Assembly Bill 2766 requires the Department of Motor Vehicles (DMV) to collect a registration surcharge of $4.00 per vehicle to fund clean air programs. Forty percent of the AB2766 funds collected by the DMV are returned to cities and counties to fund local programs that reduce air pollution. The current balance of the City's AQMD Surplus Fund is approximately $450,000. One of the most effective uses of these funds is to fund the differential cost between a clean air vehicle and the same vehicle using conventional fuel. Staff has determined, through discussions with the equipment manufacturers, that the extra cost of the four refuse trucks due to the CNG equipment is $154,000. - FY09 /10 Budgeted Funds: $742,304 -AQMD Fund Surplus: $154,000 TOTAL COST OF EQUIPMENT: $896,304 CNG Refuse Collection Truck Purchase July 14, 2009 Page 4 In addition to the above, staff has submitted a grant application to the AQMD to assist in funding this purchase. We will know the status of that application in approximately one month. Any grant funds received will reduce the impact to the Equipment Replacement Fund. Submitted by: Y�O� Homer Bluda City Manager Reviewed by. Dennis Danner Administrative Services Director Prepared by: General Services Director Attachments: i. Budget Amendment ii. Front Loader Bid Results iii. Rear loader Bid Results City of Newport Beach NO. BA- 10BA -002 BUDGET AMENDMENT 2009 -10 AMOUNT: 5154,000.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND ®X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from the AQMD fund balance to CNG refuse trucks. ACCOUNTING ENTRY: BUDGETARYFUND BALANCE Fund Account 290 3605 REVENUEESTIMATES (3601) Fund /Division Account EXPENDITUREAPPROPRIATIONS (3603) Description AQMD -Fund Balance Description Signed: Signed: Services City Manager Amount Debit Credit $154,000.00 ` - Aulametic $154,000.00 Date ate Signed: City Council Approval. City Clerk Date Description Division Number 2766 AQMD Account Number 9108 Alternative Fuel Vehicles Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Services City Manager Amount Debit Credit $154,000.00 ` - Aulametic $154,000.00 Date ate Signed: City Council Approval. City Clerk Date RECAPITULATION FOR- (2) CNG- Equipped Front - Loading Refuse Trucks RFP NO. 4 -22 P.O. NO. 30 A total of five (5) Proposals were received from three (3) firms that provide CMG - Equipped Refuse Trucks The results are shown below: ' Carmenita Rush Truck Carmenila Truck Los Angeles Los Angeles Truck Center Center Center Freightliner Freightliner James Kevin James Ron Ron Blakely Voss Blakely Creighton Creighton Cab /Chassis Auto=WXGb4 Peter6 ➢t 320 Body Mammoth Western New Way Mammoth Quantity AulooarMLL64 Aulopr ACX64 Autocar ACX64 Amrep New Way Mammoth Amrep 1 220,644.00 224,800.00 228,935.00 229,388.00 234,535.00 2 441,288.00 449,600.00 457,870.00 458,776.00 469,070.00 SubTotal 441,288.00 449,600.00 457,870 -00 458,776.00 469,070.00 Tax 38,612.70 39,340A0 40,063.63 40,142.90 41,043.63 Tire Recycling Fee 21.00 21.00 21.00 21.00 21.00 Delivery Charges 9,000.00 0.00 0.00 0.00 0.00 Total $488,921.70 $488,961.00 $497,954.63 $498,939.90 $510,134.63 Rank LOWEST 2nd Lowest 3rd Lowest 4th Lowest HIGHEST Difference LOWEST $39.30 $9,032.92 $10,018.20 $21,212.93 Terms Net 30 Days Net30 Days Net 30 Days Net 30 Days Net 30 Days Delivery 140 -210 Days 150 Days 140 -210 Days 180 -220 Days 210 Days Quote # Notes: . 1. The Cab /Chassis and Body for each proposal are listed above. Tee 32,882,83 RECAPITULATION FOR: 32,285.10 33,106,26 32,392.50 92,711.53 (2) MG-Equipped Rear - Loading Refuse Trucks 36,368.90 The Recycling Fee 21.00 RFP NO, 4 -23 21.00 21.00 21.00 21.00 P.O. NO. 30 Delivery Charges 0.00 A total of eight (8) Proposals were received from three (3) firma that provide CNGEquipped Refuse Trucks 9000.00 0.00 90.00 The results are shown below: 0.00 .21.00 0.00 Total_ Rush Truck Rush Truck Carmanitt Truck Rush Truck Carmenits Truck Carmenita Los Angeles Los Angeles $41&16- 13.30 Center Center Center Canter Center Truck Center Freightliner Frelghtliner LOWEST xeWn KW, James Kevin James James ReA eon 80h Lowest Van Voss Blakely Vma Suks, Blakely Crexleen Cteeh., CablChessls Pote,brino Petamllt 320 Aulacar ACX42 Pelemn 32a Aulmer ACX42 AulwarACX42 Aulpcar ACX42 Avloom ACX42 Body FAGMAMR1008 New Way Viper 13 PakMar RllaB New Way Viperle N.Wey voir13 NewWNvi,.rle New Way Viperte MW.*,,MelmPak Quantity Nat 30 Days Net 30 Days Net 30 Days Net 30 bays 1 188,769.00 187,292.00 184,492.00 189,190.00 195,100.00 180,923,00 198,124.00 190,336.00 2 373,618.00 374,564.00 389,984,00 378,380.90 370,200.00 373,846.00 392,248.00 392,672.00 Tee 32,882,83 32,778,10 32,285.10 33,106,26 32,392.50 92,711.53 34,$21.70 36,368.90 The Recycling Fee 21.00 21.00 21.00 21.00 21.00 21.00 21,00 Delivery Charges 0.00 0.00 9000.00 0.00 90.00 9000,00 0.00 .21.00 0.00 Total_ E406,221A3 407.361.10 5410,291.10 $611.3 9.26 $41&16- 13.30 5418678.63 5429590.70 542705180 Rank LOWEST grid Lowest 3rd Lowest 481 Lowest 5th Lowest 80h Lowest 7th Lowest HIGHEST Dlfrarance LOWEST $1,169.27 $4,069.27 $5,287.42 $6,301,67 $9,356.70 $20.368,88 $20,829.98 Terms Net 30 Days Net 30 Cava Net 30 Days Nat 30 Days Net 30 Days Net 30 Days Net 30 bays Net 30 Days Delivery 150 Days 150 Days 140.280 Days 150 Days 140480 Days 140 -210 Days 180210 Days 180 Days Quote# Notes: 1. The CaVChassis and Body for each proposal are listed above. ,i Rg ffiS i" �l { 'Clean Transportation 4 Funding from the MSRC Mobile Source Alf Pollution Reduction Review Committee November 17, 2009 Mark Harmon "^ ? General Services Director City of Newport Beach 3300 Newport Blvd Newport Beach, CA 92658 21865 Copley Drive Diamond Bar CA 91765 909.396.3269 fax 909.396.3682 Subject: MSRC Proposal #PA2009 -07-41 Funding For Upgrade of Existing CNG Station, Maintenance Facility Modifications and 4 CNG Refuse Trucks Dear Mr. Harmon: The South Coast Air Quality Management District Governing Board approved funding for your project on November 6, 2009. Congratulations on the success of your MSRC proposal and subsequent award of funds in the amount of $162,500. MSRC staff will contact you with a contract detailing how work, payments, reports, etc., will occur. Generally, you should not start work until a contract has been executed. Any costs incurred prior to contract execution shall be incurred solely at your own risk. If you have any questions regarding this award of funds or the process that will take place, please contact me at (909) 396 -3269. I look forward to working with you. Sincerely, M r Cynthia Ravenstein MSRC Contracts Administrator cynth iaa cleantransportationfu nding:org MEMBER ORGANIZATIONS: California Air Resources Board • Los Angeles County Metropofron Transportation Authority • Orange County Transportation Authority • Riverside County Transportation Commission • San Bernardino Associated Governments • South Coast Air Quality Management District . Southern California Association of Governments • Regional Ridesharing Agency South Coast :a Contract No. ML09046 Cle n Transportation on from the MSPC Air Quality Management District LOCAL GOVERNMENT MATCH PROGRAM CONTRACT 1. PARTIES - The parties to this Contract are the South Coast Air Quality Management District (hereinafter referred to as "AQMD ") whose address is 21865 Copley Drive, Diamond Bar, California 91765 -4178, and the City of Newport Beach (hereinafter referred to as "CONTRACTOR ") whose address is 3300 Newport Boulevard, Newport Beach, California 92658 -8915. 2. RECITALS A. AQMD is the local agency with primary responsibility for regulating stationary source air pollution within the geographical boundaries of the South Coast Air Quality Management District in the State of Califomia (State). AQMD is authorized under State Health & Safety Code Section 44225 (Assembly Bill (AB) 2766) to levy a fee on motor vehicles for the purpose of reducing air pollution from such vehicles and to implement the California Clean Air Act. B. Under AB 2766 the AQMD'S Governing Board has authorized the imposition of the statutorily set motor vehicle fee. By taking such action the State's Department of Motor Vehicles (DMV) is required to collect such fee and remit it periodically to AQMD. C. AB 2766 further mandates that thirty (30) percent of such vehicle registration fees be placed by AQMD into a separate account for the sole purpose of implementing and monitoring programs to reduce air pollution from motor vehicles. D. AB 2766 creates a regional Mobile Source Air Pollution Reduction Review Committee (MSRC) to develop a work program to fund projects from the separate account. Pursuant to approval of the work program by AQMD'S Governing Board, AQMD Board authorized a contract with CONTRACTOR for services described in Attachment 1 - Statement of Work, expressly incorporated herein by this reference and made a part hereof of this Contract. E. CONTRACTOR has met the requirements for receipt of AB 2766 Discretionary Funds as set forth in CONTRACTOR's Local Government Match Program Application dated May 28, 2009. 3. DMV FEES - CONTRACTOR acknowledges that AQMD cannot guarantee the amount of fees to be collected under AB 2766 will be sufficient to fund this Contract. CONTRACTOR further acknowledges that AQMD'S receipt of funds is contingent on the timely remittance by State's DMV. AQMD assumes no responsibility for the collection and remittance of motor vehicle registration fees by DMV to AQMD in a timely manner, 4. AUDIT - Additionally, CONTRACTOR shall, at least once every two years, or within two years of the termination of the Contract if the term is less than two years, be subject to an audit by AQMD or its authorized representative to determine if the revenues received by CONTRACTOR were spent for the reduction of pollution from Motor Vehicles pursuant to the Clean Air Act of 1988. AQMD shall coordinate such audit through CONTRACTOR'S audit staff. If an amount is found to be inappropriately expended, AQMD may withhold revenue from CONTRACTOR in the amount equal to the amount which was inappropriately expended. Such withholding shall not be construed as AQMD'S sole remedy and shall not relieve CONTRACTOR of its obligation to perform under the terms of this Contract. Contract No. ML09O46 5. REPORTING - CONTRACTOR shall submit reports to AQMD as outlined in Attachment 1 - Statement of Work. AQMD reserves the right to review, comment, and request changes to any report produced as a result of this Contract. 6. TERM - The term of this Contract is for seventy two (72) months from the date of execution by both parties, unless terminated earlier as provided for in Clause 7 below entitled Termination, extended by amendment of this Contract in writing, or unless all work is completed and a final report is submitted and approved by AQMD prior to the termination date. No work shall commence prior to the Contract start date, except at CONTRACTOR'S cost and risk, and no charges are authorized until this Contract is fully executed. Upon written request and with adequate justification from CONTRACTOR, the MSRC Contracts Administrator may extend the Contract up to an additional six months at no additional cost. Term extensions greater than six months must be reviewed and approved by the MSRC. 7. TERMINATION - In the event any party fails to comply with any term or condition of this Contract, or fails to provide the services in the manner agreed upon by the parties, including, but not limited to, the requirements of Attachment 1 - Statement of Work, this shall constitute a material breach of the Contract. The nonbreaching party shall have the sole and exclusive option either to notify the breaching party that it must cure this breach within fifteen (15) days or provide written notification of its intention to terminate this Contract with thirty (30) day's written notice. Notification shall be provided in the manner set forth in Clause 15 below, entitled - Notices. Termination shall not be the exclusive remedy of the nonbreaching party. The nonbreaching party reserves the right to seek any and all remedies provided by law. AQMD will reimburse CONTRACTOR for actual costs incurred (not to exceed the total Contract value), including all noncancellable commitments incurred in performance of this Contract through the effective date of termination for any reason other than breach. 8. EARLY TERMINATION — This Contract may be terminated early due to any of the following circumstances: A. The vehicles or equipment become inoperable through mechanical failure of components or systems directly related to the alternative fuel technology being utilized and such failure is not caused by CONTRACTOR'S negligence, misuse, or malfeasance. B. The fueling station becomes inoperable, and is either not technically able to be repaired, or is too costly to repair, and such failure is not caused by CONTRACTOR's negligence, misuse, or malfeasance. 9. INSURANCE — CONTRACTOR represents that it is permissibly self- insured and will maintain such self - insurance in accordance with applicable provisions of California law throughout the term of this Contract. CONTRACTOR shall provide evidence of sufficient coverage during the term of this Contract and any extensions thereof that meet or exceed the minimum requirements set forth by the South Coast AQMD below. CONTRACTOR shall furnish certificate of self- insurance to: South Coast Air Quality Management District, Attn: Risk Management Office. The AQMD Contract Number shall be included on the face of the certificate. If CONTRACTOR fails to maintain the required insurance coverage, AQMD reserves the right to terminate the Contract or purchase such additional insurance and bill CONTRACTOR or deduct the cost thereof from any payments owed to CONTRACTOR. Minimum insurance coverages are as follows: A. Worker's compensation insurance in accordance with either California or other state's applicable statutory requirements. Contract No. ML09046 B. General Liability insurance with a limit of at least $1,000,000 per occurrence, and $2,000,000 in general aggregate. C. Automobile Liability insurance with limits of at least $100,000 per person and $300,000 per accident for bodily injuries and $50,000 in property damage, or $1,000,000 combined single limit for bodily injury or property damage. 10. INDEMNIFICATION — CONTRACTOR agrees to hold harmless, defend, and indemnify, AQMD, its officers, employees, agents, representatives, and successors -in- interest against any and all loss, damage, cost, or expenses which AQMD, its officers, employees, agents, representatives, and successors -in- interest may incur or be required to pay by reason of any injury or property damage caused or incurred by CONTRACTOR, its employees, subcontractors, or agents in the performance of this Contract. 11. PAYMENT A. AQMD shall pay CONTRACTOR a Firm Fixed Price of One Hundred Sixty Two Thousand Five Hundred Dollars ($162,500) upon completion of the project on a reimbursement basis. Any funds not expended upon early contract termination or contract completion shall revert to the AB 2766 Discretionary Fund. Payment of charges shall be made by AQMD to CONTRACTOR within thirty (30) days after approval by AQMD of an itemized invoice prepared and furnished by CONTRACTOR. B. An invoice submitted to AQMD for payment must be prepared in duplicate, on company letterhead, and list AQMD'S contract number, period covered by invoice, and CONTRACTOR'S social security number or Employer Identification Number and submitted to: South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 -4178 Attn: Cynthia Ravenstein, MSRC Contract Administrator C. No funds shall be paid out to CONTRACTOR pursuant to this Contract, until the project described in Attachments 1 and 2 is completed and proof of completion is provided to AQMD. If the project described in Attachments 1 and 2 is not completed and satisfactory proof of completion is not provided to AQMD, no monies shall be due and payable to CONTRACTOR. Proof of completion shall include a Final Report detailing the project goals and accomplishments. D. Additional AB 2766 Discretionary Match Funds will not be available to fund project cost overruns. Any project cost overruns must be funded from other than AB 2766 Discretionary Funds. E. The Firm Fixed Price amount of this Contract shall not exceed the total AB 2766 Funds applied to the project described in Attachments 1, 2, and 3 of this Contract. F. If, at the completion of the Project described in Attachment 1, the vehicle expenditures and /or infrastructure expenditures are less than the Total Cost amount(s) contained in Attachment 2, the actual amount of AB 2766 Discretionary Funds reimbursed to CONTRACTOR shall be adjusted on a prorated basis as described in Attachment 2. G. CONTRACTOR must submit final invoice no later than ninety (90) days after the termination date of this Contract or invoice may not be paid. 12. MOBILE SOURCE EMISSION REDUCTION CREDITS (MSERCs) A. The MSRC has adopted a policy that no MSERCs resulting from AB 2766 Discretionary Funds may be generated and/or sold. Contract No. ML09046 B. CONTRACTOR has the opportunity to generate MSERCs as a by- product of the project if a portion of the air quality benefits attributable to the project resulted from other funding sources. These MSERCs, which are issued by AQMD, are based upon the quantified vehicle miles traveled (VMT) by project vehicles or other activity data as appropriate. Therefore, a portion of prospective MSERCs, generated as a result of AB 2766 Funds, must be retired. The portion of prospective credits funded by the AB 2766 program, and which are subject to retirement, shall be referred to as "AB 2766- MSERCs." C. The determination of AB 2766- MSERC's is to be prorated based upon the AB 2766 program's contribution to the cost associated with the air quality benefits. In the case where AB 2766 Discretionary Funds are used to pay for the full differential cost of a new alternative fuel vehicle or for the retrofitting or repowering of an existing vehicle, all MSERCs attributable to AB 2766 Discretionary Funds must be retired. The determination of AB 2766 - MSERCs for infrastructure and other ancillary items is to be prorated based upon the AB 2766 program's contribution to the associated air quality benefits. Determination of the project's overall cost will be on a case -by -case basis at the time an MSERC application is submitted. AQMD staff, at the time an MSERC application is submitted, will calculate total MSERCs and retire the AB 2766- MSERCs. CONTRACTOR would then receive the balance of the MSERCs not associated with AB 2766 funding. 13. DISPLAY OF MSRC LOGO - CONTRACTOR agrees to permanently display one MSRC decal in a prominent location on each vehicle purchased pursuant to this Contract. CONTRACTOR also agrees to permanently display one MSRC decal in a prominent location on each fueling or charging station constructed or upgraded pursuant to this Contract. Decals will be provided by MSRC upon notification that subject fueling station equipment and/or vehicles are placed into service. Decals are approximately twelve (12) inches in height and eighteen (18) inches in width (Note: a smaller decal may be provided if CONTRACTOR demonstrates that application of the standard decal is not feasible). CONTRACTOR shall maintain decal for life of vehicle or equipment subject to this Contract. Should any decal become damaged, faded, or otherwise unreadable, CONTRACTOR shall request replacement decal from MSRC and apply new decal in the same or other prominent location. MSRC shall not be responsible for damage to paint or other vehicle surfaces arising from application or removal of decals. In addition, all promotional materials related to the project, including, but not limited to, press kits, brochures and signs shall include the MSRC logo. Press releases shall acknowledge MSRC financial support for the project. 14. ACCRUAL OF MILEAGE WITHIN SOUTH COAST AIR QUALITY DISTRICT — CONTRACTOR is obligated to comply with the geographical restriction requirements as follows: A. Each of the vehicles funded under this Contract must accrue at least 85% of its annual mileage or engine hours of operation within the geographical boundaries of the South Coast Air Quality Management District for a period of no less than five (5) years from the date the vehicle enters service (new vehicles) or returns to service (repowered vehicles). Should CONTRACTOR deviate from or fail to comply with this obligation, for reasons other than those stated in Clause 8.A., CONTRACTOR shall reimburse AQMD for a prorated share of the funds provided for the vehicle as indicated in the table below: Contract No. ML09046 B. The appropriate reimbursable amount shall be paid to AQMD within sixty (60) days from the date the vehicle ceases to operate in accordance with the geographical restriction. CONTRACTOR shall not be responsible for any reimbursement to AQMD if the obligation is terminated as a result from one or more reasons set forth in Clause 8.A. C. Should CONTRACTOR sell, lease, transfer, assign or otherwise divest itself of the vehicles during the five year period referred to in clause 14.A, notice shall be provided to AQMD no less than 30 days preceding the sale, lease, transfer, or assignment is effectuated. The agreement effectuating the sale, lease, transfer or assignment shall state that the AQMD is an intended third -party beneficiary of the agreement and shall include the following requirement: the obligation to accrue mileage within the South Coast Air Quality Management District shall be a continuing obligation of the subsequent purchaser, lessee, transferee, successor in interest, heir or assign and shall remain in full force and effect until the expiration of the five year operation period. This obligation shall be passed down to any subsequent purchaser, lessee or transferee during this five year term and AQMD shall be an intended third -party beneficiary of any subsequent agreement. Upon receiving notice of any subsequent sale, lease, transfer, assignment or other divestiture, AQMD may elect to either require the reimbursement specified in Clause 14.A and 14.B, or require the subsequent purchaser, lessee, transferee or assignee to comply with the continuing obligation to operate the vehicle for a period of no less than five (5) years from the date the vehicle entered service (new vehicles) or re- service (re- powered vehicles). Notice of AQMD's election of remedies shall be provided to CONTRACTOR and any subsequent purchaser, lessee, transferee or assignee in a timely fashion. 15. NOTICES - Any notices from either party to the other shall be given in writing to the attention of the persons listed below or to other such addresses or addressees as may hereafter be designated in writing for notices by either party to the other. A notice shall be deemed received when delivered or three days after deposit in the U.S. Mail, postage prepaid, whichever is earlier. AQMD: South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 -4178 Attn: Cynthia Ravenstein, MSRC Contract Administrator CONTRACTOR: City of Newport Beach P.O. Box 1763 Newport Beach, CA 92658 Attn: Mark Harmon Within Year 1 100% Between Years 1 -2 80% Between Years 2 -3 60% Between Years 3 -4 40% Between Years 4 -5 20% After Year 5 0% B. The appropriate reimbursable amount shall be paid to AQMD within sixty (60) days from the date the vehicle ceases to operate in accordance with the geographical restriction. CONTRACTOR shall not be responsible for any reimbursement to AQMD if the obligation is terminated as a result from one or more reasons set forth in Clause 8.A. C. Should CONTRACTOR sell, lease, transfer, assign or otherwise divest itself of the vehicles during the five year period referred to in clause 14.A, notice shall be provided to AQMD no less than 30 days preceding the sale, lease, transfer, or assignment is effectuated. The agreement effectuating the sale, lease, transfer or assignment shall state that the AQMD is an intended third -party beneficiary of the agreement and shall include the following requirement: the obligation to accrue mileage within the South Coast Air Quality Management District shall be a continuing obligation of the subsequent purchaser, lessee, transferee, successor in interest, heir or assign and shall remain in full force and effect until the expiration of the five year operation period. This obligation shall be passed down to any subsequent purchaser, lessee or transferee during this five year term and AQMD shall be an intended third -party beneficiary of any subsequent agreement. Upon receiving notice of any subsequent sale, lease, transfer, assignment or other divestiture, AQMD may elect to either require the reimbursement specified in Clause 14.A and 14.B, or require the subsequent purchaser, lessee, transferee or assignee to comply with the continuing obligation to operate the vehicle for a period of no less than five (5) years from the date the vehicle entered service (new vehicles) or re- service (re- powered vehicles). Notice of AQMD's election of remedies shall be provided to CONTRACTOR and any subsequent purchaser, lessee, transferee or assignee in a timely fashion. 15. NOTICES - Any notices from either party to the other shall be given in writing to the attention of the persons listed below or to other such addresses or addressees as may hereafter be designated in writing for notices by either party to the other. A notice shall be deemed received when delivered or three days after deposit in the U.S. Mail, postage prepaid, whichever is earlier. AQMD: South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 -4178 Attn: Cynthia Ravenstein, MSRC Contract Administrator CONTRACTOR: City of Newport Beach P.O. Box 1763 Newport Beach, CA 92658 Attn: Mark Harmon Contract No. ML09046 16. EMPLOYEES OF CONTRACTOR A. CONTRACTOR warrants that it will employ no subcontractor without written approval from AQMD. CONTRACTOR shall be responsible for the cost of regular pay to its employees, as well as cost of vacation, vacation replacements, sick leave, severance pay and pay for legal holidays. B. CONTRACTOR shall also pay all federal and state payroll taxes for its employees and shall maintain workers' compensation and liability insurance for each of its employees. C. CONTRACTOR, its officers, employees, agents, or representatives shall in no sense be considered employees or agents of AQMD, nor shall CONTRACTOR, its officers, employees, agents, or representatives be entitled to or eligible to participate in any benefits, privileges, or plans, given or extended by AQMD to its employees. D. CONTRACTOR warrants that it has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Contract. CONTRACTOR further represents that in performance of this Contract, no person having any such interest shall be employed by CONTRACTOR or any subcontractor. 17. NON- DISCRIMINATION - In the performance of this Contract, CONTRACTOR shall not discriminate in recruiting, hiring, promotion, demotion, or termination practices on the basis of race, religious creed, color, national origin., ancestry, sex, age, or physical handicap and shall comply with the provisions of the California Fair Employment & Housing Act (Government Code Section 12900, et sea.), the Federal Civil Rights Act of 1964 (P.L. 88 -352) and all amendments thereto, Executive Order No. 11246 (30 Federal Register 12319), and all administrative rules and regulations issued pursuant to said Acts and Order. CONTRACTOR shall likewise require each subcontractor to comply with this clause and shall include in each such subcontract language similar to this clause. 18. AQMD LIEN RIGHTS - CONTRACTOR agrees AQMD shall have lien rights on any and all equipment and/or vehicles purchased in whole or in part by the CONTRACTOR, under this Contract or any amendments thereto. The AQMD shall have lien rights in effect until the CONTRACTOR satisfies all terms under the Contract, including but not limited to, the use and reporting requirements. Accordingly, CONTRACTOR further agrees that AQMD is authorized to file a UCC filing statement to secure its interests in the equipment andor vehicles that are the subject of the Contract. In the event CONTRACTOR files for bankruptcy protection, CONTRACTOR shall notify AQMD within 10 business days of such filing. 19. COMPLIANCE WITH APPLICABLE LAWS - CONTRACTOR agrees to comply with all federal, state, and local laws, ordinances, codes and regulations and orders of public authorities in the performance of this Contract and to ensure that the provisions of this clause are included in all subcontracts. 20. ASSIGNMENT - The rights granted hereby may not be assigned, sold, licensed, or otherwise transferred by either party without the prior written consent of the other, and any attempt by either party to do so shall be void upon inception. 21. NON- EFFECT OF WAIVER — CONTRACTOR'S or AQMD'S failure to insist upon the performance of any or all of the terms, covenants, or conditions of this Contract, or failure to exercise any rights or remedies hereunder, shall not be construed as a waiver or relinquishment of the future performance of any such M Contract No. MLO9046 terms, covenants, or conditions, or of the future exercise of such rights or remedies, unless otherwise provided for herein. 22. ATTORNEYS' FEES - In the event any action (including arbitration) is filed in connection with the enforcement or interpretation of this Contract, each party in said action shall pay its own attorneys' fees and costs. 23. FORCE MAJEURE - Neither AQMD nor CONTRACTOR shall be liable or deemed to be in default for any delay or failure in performance under this Contract or interruption of services resulting, directly or indirectly, from acts of God, civil or military authority, acts of public enemy, war, strikes, labor disputes, shortages of suitable parts, materials, labor or transportation, or any similar cause beyond the reasonable control of AQMD or CONTRACTOR. 24. SEVERABILITY - In the event that any one or more of the provisions contained in this Contract shall for any reason be held to be unenforceable in any respect by a court of competent jurisdiction, such holding shall not affect any other provisions of this Contract, and the Contract shall then be construed as if such unenforceable provisions are not a part hereof. 25. HEADINGS - Headings on the clauses of this Contract are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Contract. 26. DUPLICATE EXECUTION - This Contract is executed in duplicate. Each signed copy shall have the force and effect of an original. 27. GOVERNING LAW - This Contract shall be construed and interpreted and the legal relations created thereby shall be determined in accordance with the laws of the State of California. Venue for resolution of any dispute shall be Los Angeles County, California. 28. PRECONTRACT COSTS - Any costs incurred by CONTRACTOR prior to CONTRACTOR receipt of a fully executed Contract shall be incurred solely at the risk of the CONTRACTOR. In the event that a formal Contract is not executed, neither the MSRC nor the AQMD shall be liable for any amounts expended in anticipation of a formal Contract. If a formal Contract does result, precontract cost expenditures authorized by the Contract will be reimbursed in accordance with the cost schedule and payment provision of the Contract. 29. PREVAILING WAGES — CONTRACTOR is alerted to the prevailing wage requirements of California Labor Code section 1770 et seq. Copies of the prevailing rate of per diem wages are on file at the AQMD's headquarters, of which shall be made available to any interested party on request. Notwithstanding the preceding sentence, CONTRACTOR shall be responsible for determining the applicability of the provisions of California Labor Code and complying with the same, including, without limitation, obtaining from the Director of the Department of Industrial Relations the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work, making the same available to any interested party upon request, paying any applicable prevailing rates, posting copies thereof at the job site and flowing all applicable prevailing wage rate requirements to its subcontractors. CONTRACTOR shall indemnify, defend vJ Contract No. ML09046 and hold harmless the South Coast Air Quality Management District against any and all claims, demands, damages, defense costs or liabilities based on failure to adhere to the above referenced statutes. 30. CHANGE TERMS - Changes to any part of this Contract must be requested in writing by CONTRACTOR, submitted to AQMD and approved by MSRC in accordance with MSRC policies and procedures. CONTRACTOR must make such request a minimum of 90 days prior to desired effective date of change. All modifications to this Contract shall be in writing and signed by both parties. 31. ENTIRE CONTRACT - This Contract represents the entire agreement between the parties hereto related to CONTRACTOR providing services to AQMD and there are no understandings, representations, or warranties of any kind except as expressly set forth herein. No waiver, alteration, or modification of any of the provisions herein shall be binding on any party unless in writing and signed by the party against whom enforcement of such waiver,. alteration, or modification is sought. The Statement of Work - Attachment 1, The Payment Schedule - Attachment 2, and Supporting Documentation - Attachment 3, are incorporated by reference herein and made a part hereof. 32. AUTHORITY - The signator hereto represents and warrants that he or she is authorized and empowered and has the legal capacity to execute this Contract and to legally bind CONTRACTOR both in an operational and financial capacity and that the requirements and obligations under this Contract are legally enforceable and binding on CONTRACTOR. [The Remainder of this Page is Intentionally Left Blank] Contract No. ML09046 IN WITNESS WHEREOF, the parties to this Contract have caused this Contract to be duly executed on their behalf by their authorized representatives. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT M Dr, William A. Burke, Chairman, Governing Board Date: ATTEST: Saundra McDaniel, Clerk of the Board APPROVED AS TO FORM: Kurt R. Wiese, General Counsel By: 11MSRC06Loca1 Go vtMatch Updated 22 October 2008 0 CITY OF NEWPORT BEACH Name: u Title: Date: 6/q) ) 2.010 ATTEST: By: Leilani Brown, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: ? Leoni;� Mulvihill, Acting City Attorney Attachment 1 Statement of Work City of Newport Beach Hereinafter Referred to as CONTRACTOR Contract Number ML09046 Project Description CONTRACTOR will purchase 4 heavy -duty vehicles as specified below. CONTRACTOR shall also upgrade their existing CNG fueling station as specified in Attachment 3.1, Supporting Documents, CNG Fueling Station Specifications, and modify the maintenance facilities at their maintenance yard in Newport Beach as specified in Attachment 3.2, Supporting Documents, Maintenance Facility Modification Specifications. Statement of Work Vehicles CONTRACTOR shall purchase 4 heavy -duty vehicles, each with gross vehicle weight rating greater than 14,000 pounds and equipped with dedicated compressed natural gas - fueled (CNG) engines, as follows: Vehicles Life Expectancy Annual Operation (4) refuse collection g years each 5,500 miles each trucks Each model year 2006 or earlier engine must be certified to a low- emission or optional NO, standard by the California Air Resources Board (CARB). Each model year 2007 or later natural gas engine must have a CARB NOx certification at least 30% lower than the comparable diesel -fuel engine. AQMD staff shall be the final arbiters of comparability between engines. CONTRACTOR shall be reimbursed for vehicles according to the costs stated in Attachment 2 — Payment Schedule. CNG Fueling Station CONTRACTOR shall upgrade their existing CNG fueling station as specified in Attachment 3.1, CNG Fueling Station Specifications. CONTRACTOR shall be reimbursed according to Attachment 2, Payment Schedule. Maintenance Facility Modifications CONTRACTOR shall improve their vehicle maintenance facility as specified in Attachment 3.2, Maintenance Facility Modification Specifications. CONTRACTOR shall be reimbursed according to Attachment 2 - Payment Schedule. Promotion CONTRACTOR shall prepare and submit a proposed Public Outreach Plan to promote the MSRC's co- funding of the vehicles and infrastructure modifications. Acceptable outreach may include, but is not limited to, notices in CONTRACTOR mailings to residents, newspaper notices, flyers, and information items at CONTRACTOR Board meetings and community events. The Public Outreach Plan shall automatically be deemed approved 30 days following receipt by AQMD staff, unless AQMD staff notify Attachment 1 Statement of Work — continued City of Newport Beach Hereinafter Referred to as CONTRACTOR Contract Number ML09046 CONTRACTOR in writing of a Public Outreach Plan deficiency. CONTRACTOR shall implement the approved Public Outreach Plan in accordance with the Project Schedule below. Project Schedule (based on date of Contract execution) Task Completion Complete design and permitting for station upgrade and facility modifications Month 4 Order vehicles Month 4 Complete station upgrade and facility modifications Month 7 Submit Public Outreach Plan Month 7 Take delivery and place vehicles in service Month 8 Implement Public Outreach Plan Month 10 Quarterly Reports Months 4 and 7 Final Report Month 12 Hardware: Natural gas - fueled vehicles as listed above; security cameras, ventilation equipment and door motors. Reports Quarterly Reports: Until the station commences operation in its upgraded capacity, facility modifications are complete and all subject vehicles are entered into service, CONTRACTOR shall provide quarterly progress reports that summarize the project results to date including, but not limited to: tasks completed, issues or problems encountered, resolutions implemented, and progress to date. Progress reports that do not comply will be returned to the CONTRACTOR as inadequate. Final Report: A Final Report shall be submitted by the CONTRACTOR in the format provided by AQMD staff. Report shall include, at a minimum: a) an executive summary; and b) a detailed discussion of the results and conclusions at this project. CONTRACTOR will identify any barriers encountered and solutions developed to overcome the barriers, and impact of project on future alternative fuel projects. E Attachment 2 Payment Schedule City of Newport Beach Hereinafter Referred to as CONTRACTOR Contract Number ML09046 Cost Breakdown CONTRACTOR shall be reimbursed according to the amounts stated above per vehicle upon proof of vehicle delivery, vehicle acceptance, and placement of vehicle into service. Documentation of the specific engine installed in the vehicle, including the year, manufacturer, and model, must accompany each request for reimbursement. Reimbursement for station and facility modifications will be made: • only after verification of upgrade completion. At a minimum, acceptable verification shall consist of: • Representative photos of completed upgrades; • a report signed by a responsible official certifying that the station has been completed as described in Attachments 1 and 3; and • invoice(s) from subcontractor(s) performing the installations, if any. If, at the completion of the Project, the expenditures are less than the Total Cost amount above, the actual amount of AB 2766 Discretionary Funds reimbursed to CONTRACTOR shall be adjusted on a prorated basis, as follows: • For vehicles, the amount reimbursed to CONTRACTOR shall not exceed the amount of local funds applied, up to a maximum of $25,000 per heavy -duty vehicle; and • For fueling station and facility modifications, the amount reimbursed to CONTRACTOR shall not exceed the actual amount of Local Government Funds applied. Maximum AB2766 Discretionary Local Gov't Purchase Category Funds payable Funds Applied Total Cost under this Contract Heavy Duty Natural $100,000 (not to Gas Vehicles exceed $25,000 per $796,303 $896,303 vehicle CNG station $12,500 $12,500 $25,000 upgrade Maintenance facility $50,000 $50,000 $100,000 modifications Totals $162,500 $858,803 $1,021,303 CONTRACTOR shall be reimbursed according to the amounts stated above per vehicle upon proof of vehicle delivery, vehicle acceptance, and placement of vehicle into service. Documentation of the specific engine installed in the vehicle, including the year, manufacturer, and model, must accompany each request for reimbursement. Reimbursement for station and facility modifications will be made: • only after verification of upgrade completion. At a minimum, acceptable verification shall consist of: • Representative photos of completed upgrades; • a report signed by a responsible official certifying that the station has been completed as described in Attachments 1 and 3; and • invoice(s) from subcontractor(s) performing the installations, if any. If, at the completion of the Project, the expenditures are less than the Total Cost amount above, the actual amount of AB 2766 Discretionary Funds reimbursed to CONTRACTOR shall be adjusted on a prorated basis, as follows: • For vehicles, the amount reimbursed to CONTRACTOR shall not exceed the amount of local funds applied, up to a maximum of $25,000 per heavy -duty vehicle; and • For fueling station and facility modifications, the amount reimbursed to CONTRACTOR shall not exceed the actual amount of Local Government Funds applied. Attachment 3 Supporting Documentation City of Newport Beach Hereinafter Referred to as CONTRACTOR Contract Number ML09046 The supporting documents attached hereto as Attachment 3, represent obligations of the CONTRACTOR. Nothing herein shall be construed as an assumption of duties or obligations by the AQMD or granting any rights to third parties against the AQMD. 1. CNG Fueling Station Specifications 2. Maintenance Facility Modification Specifications 3. Proof of Insurance. Attachment 3 Supporting Documentation City of Newport Beach Hereinafter Referred to as CONTRACTOR Contract Number ML09046 CNG Fueling Station Specifications At a minimum, the public access CNG fueling station located at 592 Superior Avenue, Newport Beach, California shall be upgraded by the addition of security cameras. Maintenance Facility Modification Specifications At a minimum, the following modifications shall be made at the existing vehicle repair facility located at 592 Superior Avenue, Newport Beach, California: A. Surround 2 CNG vehicle bays with partition walls; B. Upgrade ceiling over 2 CNG vehicle bays to ceiling with a 1 -hour fire rating; C. Strengthen roof and install ventilation system with 2 spark- resistant centrifugal exhausters sized to generate at least 7 air changes per hour; D. Install methane detector; and E. Install circuitry and motors to automatically raise bay doors if methane detector is triggered. NEWPORT BEACH HUMAN RESOURCES Cassidy, J.D., May 27, 2009 MSRC Contracts Administrator South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, California 91765 RE: Insurance Coverage To Whom It May Concern: The City of Newport Beach is self - insured as respects general liability and automobile liability coverage. The City of Newport Beach has a self - insured retention (SIR) limit of $500,000 dollars with excess coverage of $50 million dollars. The City of Newport Beach is also self - insured as respects workers compensation coverage. The City of Newport Beach has statutory limits and employers' liability excess coverage of $1 million dollars. If you have any questions regarding this letter, please contact me at (949) 644 -3256. Sincerely, Jill amille Ortiz man p Resources S ecialist II 3300 Newport Boulevard • Post Office Box 1768 - Newport Beach, California 92658 -8915 Telephone: (949) 644 -3300 • Fax: (949) 644 -3305 • www.city.newport- beach.ca.us