HomeMy WebLinkAboutC-3123(A) - South Coast Quality Air Management District Alternate Fuels, Vehicle ProgramFrom: Butler, Irene
Sent: Wednesday, February 26, 1997 10:09 AM
To: Niederhaus, Dave
Subject: RE: AQMD - NATURAL GAS VEHICLES
A copy will be in your mail slot before the end of the day. Thanks for your prompt response.
Sent: Wednesday, February 26, 1997 9:13 AM
To: IBUTLER
Subject: FW: AQMD - NATURAL GAS VEHICLES
Importance: High
Please provide a copy of the Sunset document so I can prepare correspondence.
Both the contract and the agreement will be cancelled and I will info your
office.
From: Pisani, Mike on Wed, Feb 26, 1997 8:47 AM
Subject: FW: AQMD - NATURAL GAS VEHICLES
To: Niederhaus, Dave
fyi
From: Butler, Irene on Wed, Feb 26, 1997 8:52 AM
Subject: AQMD - NATURAL GAS VEHICLES
To: Simpson, Evelyn
Cc: Pisani, Mike
Item 19 on the 2/24/97 Council Agenda - The action by Council was to
direct staff to inform AQMD that due to delays in the production of CNG
vehicles and higher than anticipated costs, the city wishes to cancel the
alternative fuel contract; and directed staff to proceed with the
rebidding process to purchase five front loading refuse trucks and three
rear loading refuse trucks with diesel engines.
Our AQMD file (Contract No. 3123) also contains an Indemnity Agreement
with Sunset Property Services to operate 5 commercial street sweepers.
Can you research or consult with Dave Niederhaus if the above action
means that the agreement with Sunset Property is also canceled?
I need to know if I can retire the file to the attic as closed /completed.
Thanks.
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TO:
FROM:
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FEB 2 4199T
Mayor & City Council
General Services Director
SUBJECT: AQMD Grant for Natural Gas Vehicles
Recommendations:
(3 Z)
City Council Agenda
Item No. 19
February 24, 1997
Direct staff to inform AQMD that due to delays in the production of CNG vehicles and
higher than anticipated costs, the City wishes to cancel the alternative fuel contract.
Further, direct staff to proceed with the rebidding process to purchase five front
loading refuse trucks and three rear loading refuse trucks with diesel engines.
Background
On October 28, 1996, the City Council approved an alternative fuel project by
accepting a $500,000 grant from AQMD. The contract was subsequently executed
on November 7, 1996.
The grant was structured to pay for the incremental cost of the purchase of 10 refuse
trucks purchased with original equipment manufacture (OEM) compressed natural
gas (CNG) engines. A small portion of the grant, $17,000, was designated for the
monitoring and data collection related to the study, and the remainder, $70,000, was
to be used for the purchase of private CNG street sweepers.
Staff developed specifications for the two classes of trucks, a large three axle front
end loader (FEL) with a Cummins L10 CNG engine, and a smaller rear loading packer
(RLP) with a Cummins 8.31, CNG engine. The preparations required an inordinate
amount of time due to complexity of the equipment, particularly the CNG fuel tanks
which are available in a variety of materials and weights.
Bids for the two types of trucks were received on December 31, 1996. Only two of 18
truck dealers chose to bid, primarily due to the restrictions and availability of an
OEM CNG engine. Both bidders were Volvo dealerships, Pacific Coast of Riverside
and Carmenita Truck Center of Santa Fe Springs. The costs per type truck including
tax were as follows:
Carmenita Truck Center
Pacific Coast
FEL
$202,182
$183,336
RLP
$153,645
$145,958
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Note: The staff report to Council of October 28, 1996 provided estimates of $171,561
(FEL) and $128,060 (RLP) respectively.
Total cost for the six FEL's and four RLP's from the low bidder, Pacific Coast, is
$1,683,851 including tax. The total estimated cost quoted to Council in the earlier
staff report was $1,541,606.
The bidders had also been asked to provide bids for like models powered by
conventional diesel engines to provide the basis for calculating incremental costs.
The results were:
Carmenita Truck Center
Pacific Coast
FEL
$146,690
$139,159
RLP
$102,463
$100,595
Note: As a comparison, the City purchased a similar FEL in 1994 for $111,785 and a
RLP in 1995 for $70,872. The total estimated cost quoted to Council on October 28,
1996 for 10 diesel powered trucks was $1,060,236. Using the bids above, the total
cost would be $1,237,334. Costs of the new diesel trucks could be substantially
decreased by $15,000 to $20,000 per truck if rebid to more truck manufacturers.
The following data provides the City costs associated with a purchase of trucks from
the low bidder (Pacific Coast):
Front End Loaders (6) $ 1,100,019
Rear Loading Packers (4) 583,832
1,683,851
Plus Financing Costs (5 years) 370,447
Less AQMD Grant (Incremental cost)
Less AB2766 Funds (Incremental cost) (33
City Cost for 10 CNG Trucks 1,607,
Less Diesel Equivalent (10 trucks) $(1,237,
Out-of-pocket cost to City for CNG (10 versus 10) 370.
The above information sums up the costs of the two alternatives, CNG or diesel -
equivalent trucks, adds the two available funding opportunities (AQMD & AB2766
non - discretionary funds), and subtracts the diesel equivalent truck costs. The end
result, $370,444, illustrates the substantial extra expense to the City associated with
the CNG program.
Another more serious complication beyond the higher costs of the consultant and the
CNG trucks is the availability of the trucks.
The AQMD Schedule of Deliverables calls for delivery of the trucks in the four to six
month interval of the two year program. That is equivalent to March 1997 through
August 1997. Volvo representatives met with staff on January 13 and confirmed in
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writing on January 16 (see attached) that the Cummins 8.3L had not been
• engineered into Volvo truck chassis as previously confirmed by Volvo, and due to
major losses of research and development personnel associated with moving the
Volvo production plant from Ohio to Virginia in early 1997, Volvo could not produce
any CNG 8.3L powered vehicles of the size needed by the City before 1998.
In addition, Volvo representatives also confirmed that the smaller chassis normally
used in our smaller refuse truck will no longer be produced. This action is a factor in
the increased cost of the CNG and diesel trucks.
The attached letter to AQMD outlining the current difficulties and requesting AQMD
assistance was sent on January 27, 1997. Staff was contacted by AQMD staff on
January 30 to offer the possibility of increasing the grant fund by 5% ($12,390) upon
request by the City.
Alternatives
One alternative to the delay in the availability of the CNG 8.3L engine is to revert to
powering all of the 10 refuse trucks with the Cummins L10 CNG engine. This would
result in the additional expenses of a larger engine and transmission in one of the
smallest heavy duty refuse trucks manufactured. Although the incremental
additional costs could be home by using AB2766 non - discretionary funds, the goal of
the grant is to provide data favorable to the expanded use of CNG vehicles, which
• may not be the case if the fuel and acquisition costs for the smaller rear loading
packers with corresponding small payloads are unusually high. Staff does not
recommend this alternative.
A second alternative would be to decrease the size of the program to six FEL's and
purchase three diesel powered RLP's in the interim. The latter is of an immediate
nature as the diesel powered packers that are to be replaced have been extended
several years beyond the normal service life and are very expensive to maintain due
to extensive repairs. We simply cannot continue to extend the refuse trucks
scheduled for replacement beyond another six months. The movement of the Volvo
plant in early 1997 would delay the production of the six FEL's as well, possibly as
late as October 1997.
Recommendations
Either alternative requires a formal proposal to AQMD for approval for either a new
mix or decreased number of trucks, an increase in grant funds (limit 5 %) and an
extended timeframe to meet milestones due to delays in truck production.
Staff favors neither alternative, and strongly recommends that the City inform
AQMD that. due to continued delays in the acquisition of the trucks, higher out -of-
pocket costs to the City, and the immediate need to replace worn out refuse trucks,
that the City wishes to terminate the contract.
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Upon direction of the Council, a letter to AQMD stating the City decision to withdraw
from the alternative fuel program will be prepared. As a matter of information, the •
first AQMD quarterly report is due February 15, 1997. Staff is of the opinion that we
cannot delay this decision any longer.
An AQMD grant increase of $12,390 (5% increase noted earlier) is not considered by
staff as sufficient incentive to continue the CNG program.
The only out -of- pocket costs to the City at this time has been limited to extensive
man-hours in researching CNG vehicles to prepare bid specifications, which has led to
delays in purchasing other essential equipment. We have not executed a consulting
contract with Fuel Solutions LLC, so the City has no obligation for consulting service.
At a mi_mimum, the current bids (both CNG and diesel) should be rejected as too
expensive, and new specifications prepared, but only as a last resort if the decision is
made to salvage a portion of the CNG project.
Staff is of the opinion that the diesel powered trucks can be purchased at a
considerable savings (minimum of $15,000 to $20,000 per truck) over the above
quotes if rebid with a wider range of truck, body, and engine manufacturers. No
budget amendment action is necessary to purchase diesel powered trucks as
sufficient funds are available in the current budget to purchase five front end loaders
and three rear loading packers. There will be no need to purchase any refuse trucks
in FY 97 -98 provided the eight diesel powered trucks are purchased in the current
fiscal year.
Very respectfully,
David E. Niederhaus
DEN /mhl
Attachments
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Volvo GM Heavy Truck
L J
January 16, 1997
7900 Nalio vice Road •
P.O. Box 267TS
Greensboro. NC 27402.6115
Telephone 910 093-2000
David Niederhaus
City of Newport Beach
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, CA 92659 -1768
David,
Thank you for your time Monday in discussing the CWTent natural gas project for
Newport Beach. Our corporation is very sorry for the delay in design work on the
Cununuis 8.3 litre natural gas engine. As discussed the following items caused the
delay:
Volvo GM Heavy Truck Corporation announced the closure of our manufacturing
plant in Oluo and the movement of all product to Virginia.
02. Job offers made to 45 engineering
accepted (6 of those to Greensboro).
and R &D people to move and only 21
3. Tlus has caused many projects to be delayed. The natural gas 8.3 has been
moved to 1998 because of new engine installations required for 1998.
Again, we are very sorry for the complication but hope we can continue to support
your programs. We \vant you to understand this in no way affects the L10 CNG
program.
Sincerely,
Mike Cantwell
Product Manager
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 •
RE: Contract # AB2766196036
Mr. John Longville, Chairman
Mobile Source Air Pollution Reduction Review Committee
South Coast Air Quality Management District
21865 East Copley Drive
Diamond Bar, CA 91765
Dear Mr. Longville,
January 27, 1997
Several difficulties have developed with our alternative fuel program since the signing
of the AQMD contract on November 7, 1996 that will prevent our meeting the project
goals and schedule of deliverables. I would appreciate any assistance or suggestions
by yourself or AQMD staff to resolve these problem areas.
Specifically, there are three areas of concern. One, the direct costs of the program to
the City have increased substantially. Two, a major delay in the construction of the •
trucks will necessitate the downsizing of the program. Three, as a result of costs and
delivery delays, the overall feasibility and value of the program is being carefully
reviewed by City staff.
The original estimate made to our City Council regarding direct City costs of the
program was that the alternative fuels project would have neutral costs after the use
of grant funds. The actual cost after analyzing competitive bid results for the ten
CNG trucks and comparing the results with a purchase of the seven diesel equivalent
trucks scheduled for replacement is $749,357. As a part of the competitive bid
process, staff requested corresponding bids for diesel equivalent trucks to establish an
incremental cost. The incremental costs are $44,177 for the front end loader trucks
and $45,363 for the rear loading trucks for a total of $446,517. The contract provides
a maximum grant of $413,000 for the entire purchase of 10 trucks. While AB2766
non - discretionary funds could be used for the difference in cost, it is felt that the grant
for funding should be substantially increased to more clearly offset the true
incremental costs as well as the significant additional expense the City assumes by
purchasing CNG trucks instead of diesel equivalents.
A more immediate concern is the revised production schedule of the CNG trucks. At
our request, Volvo confirmed on January 16, 1997 (see attached letter) the closure of
their truck manufacturing plant in Ohio and the movement of that function to
Virginia. This action on the part of the major manufacturer of heavy duty CNG
refuse trucks would delay the arrival of the trucks until at least the November -
December 1997 timeframe. There is a further complication in that Volvo will lose •
approximately half of their research and development personnel who have refused to
relocate resulting in a substantial delay of the production of the four, rear loading
3300 Newport Boulevard, Newport Beach
. refuse trucks powered by the Cummins CNG 8.3L engine until 1998. The latest
Volvo information noted above contradicts what we were told by Volvo during the
bidding process. Unfortunately, due to the age of the current City refuse packers,
the City will be unable to delay that portion of the CNG program. We will be
recommending to our City Council that we proceed with the replacement of the four
rear loading trucks within the next 30 days.
Our staff have considered several alternatives, all of which would require formal
AQMD approval. One alternative would be to proceed with a scaled down program in
1997 of only the six front end loaders. If the City were to do this, additional grant
funding would be requested to neutralize the higher direct City costs.
Another alternative would be to rebid the 10 trucks with the Cummins L 10 engine
with the larger Allison World Transmission. However, this would result in the use of a
heavier engine and transmission in the smaller rear packers and further reduce the
original potential payload of four tons. The end result would be a small, heavy and
expensive refuse truck carrying a minimal payload and would adversely affect any
favorable CNG /alternative fuel operating data that could form the basis for expanded
future applications.
A possible further alternative would be to seek out other CNG engine applications
such as the John Deere CNG 8L for the smaller rear packer truck. Use of such an
engine would hinge on availability and delivery possibilities, since the City cannot
•extend the current rear loading packers beyond another six months. Volvo would
have to be excluded due to the lack of a research and development capability to
engineer a new engine into their chassis. Any information available on this
alternative such as truck manufacturers, engine availability and parameters, and
current usage would be appreciated.
At this point, we are seriously reviewing our participation in the program in view of
the cost and obstacles to the program. We have expended a great deal of staff time
and effort in hopes of bringing alternative fueled vehicles into our fleet for cleaner air.
We will work with you in good faith to try and explore reasonable and timely
alternatives. We would appreciate any suggestions or assistance you or your staff
may have to resolve the current difficulties. Please contact our General Services
Director, David E. Niederhaus, at 714 - 644 -3055 if you have any questions regarding
our request or can provide technical assistance.
Sincerely,
J. by
City Man er
KJM/mW
Attachment
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ITEMS REMOVED FROM THE CONSENT CALENDAR
2. ADOPTED ORDINANCE NO. 97 -11 REDUCING THE SPEED LIMTr ON SAN
JOAQUIN HILLS ROAD AND MARGUERITE AVENUE BY 5 MPH. Appeal of the
decision by the Traffic Affairs Committee (TAC) to maintain the existing speed limits on San
Joaquin Hills Road and Marguerite Avenue. Since the appeal of TAC's decision, additional
speed surveys have been conducted and the matter reviewed by the City Council Public
Works Committee. Based on this review, the Committee recommends reducing the speed
limit on Marguerite by 5 mph and install additional signage; returning the speed limit on
San Joaquin Hills Road to its prior speed limit and adding additional signage and markings.
9. COUNCIL POLICY K -7. Approved revised amendment to Council Policy K -7,
Determination of Convenience and Necessity for Alcoholic Beverage Outlets, to include a
time restriction and to provide an appeal process.
17., - HOLISTIC HEALTH PRACTITIONER DENIAL FOR ANDREA DANIELS. Continued
to March 10, 1997:.' .
19. AQMD GRANT FOR NATURAL GAS VEHICLES. Directed staff to inform AQMD that
due to delays in the production of CNG vehicles and higher than anticipated costs, the city
wishes to cancel the alternative fuel contract; and directed staff to proceed with the re-
bidding process to purchase five front loading refuse trucks and three rear loading refuse
trucks with diesel engines.
PUBLIC COMMENTS - See official minutes.
20.; ARPOIN
coirnu�
by`Cour
jA3/97, 1
Action:
Confirmed the following nominations and continued the remaining as noted.
Bicycle Trails Citizens Advisory Committee
(District 1) Council Member Hedges' appointment of
(continued indefinitely).
(District 7) Council Member Thomson's appointment of and
Environmental Quality Affairs Citizens Advisory Committee
(District 4) Mayor Pro Tem. Edwards' appointment of Jon Robertson
(Note: Mr. Robertson appointed by Council Member Noyes on
1/13/97, therefore appointment will be rescheduled for
3/10/97).
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AGENDA ITEM NO. 12
CITY OF NEWPORT BEACH
Office of the City Manager
October 28, 1996
tlY I HE U1 Y WUWAL -
cnY OF NEWPORT BfT "'H
OCT 2 8 '
TO: Honorable Mayor and Members of the City Council
FROM: Kevin J. Murphy, City Manager f l C -3123
PUBJECT: AQMD GRANT FOR NATURAL GAS FUELED
REFUSE VEHICLES
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y Attached is a lengthy staff report prepared by the General Services Director on
the $500,000 grant awarded to the City of Newport Beach by the AQMD, subject
to acceptance by the City Council. The staff report is lengthy and detailed and
has been revised numerous times over the past few months as the staff, with
consultant assistance, has refined and improved the grant proposal as new
• information became available to City staff based on extensive research.
thought I would try to boil the staff report down into some succinct facts for the
City Council:
The AQMD legally levies and collects fees on Motor Vehicle Licenses to
reduce air pollution emissions (AB 2766 fees). A portion of the fees are
retained by AQMD for their programs, a portion is utilized in competitive
grant programs, as in this case, and a portion is distributed yearly to each
City to locally reduce air emissions (Newport Beach annually receives
approximately $76,000).
2. The City applied for a competitive grant in September 1995 from AQMD
in a heavy duty vehicle category to replace a portion of our diesel refuse
vehicles requiring normal replacement with compressed natural gas
(CNG) refuse vehicles. CNG refuse vehicles are more expensive than
diesel versions and the grant, plus $68,000 of local City AB 2766 monies,
is intended to make up the difference in the price of the two different
versions. For example, the CNG versions cost $172,000 and $128,000
for the two engine sizes purchased, while the diesel versions cost
$125,000 and $78,000.
3. The total grant is $500,000, with the City receiving $413,000 and Sunset
Property Services (a private subgrantee of the City) receiving $77,000 for
five (5) CNG street sweepers.
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4. The City would normally be replacing seven (7) refuse vehicles out of a
total of eighteen (18) in the total fleet in 1996 -97. The AQMD grant •
allows the City to replace ten (10) refuse vehicles for $41,000 less than
ten (10) comparably powered diesel vehicles.
5. Other benefits of the grant program include:
a. Reduced vehicle maintenance costs for the three (3) refuse
vehicles replaced earlier than scheduled. (The City has
lengthened its replacement schedule from seven to ten years with
an increase in maintenance costs and downtime.)
b. 33% lower per gallon equivalent fuel costs. Diesel today is $0.99
per gallon, while the cost at the City Yard CNG fueling facility will
be $0.67 per gallon.
C. The air pollution emissions will be reduced by a total estimated
minimum of 9,493 pounds per year. The City can use these
emission reductions as a tool to revise its Rideshare Program
when our two year contract with AQMD expires next year. The
current Rideshare Program costs the City $30,000 in direct
expenses, plus additional indirect overhead expenses and
valuable time of City employees involved in administering the
program at each job site.
d. Reduced operating noise from refuse vehicles operating in tight •
quarters in many prominent parts of the City.
Inasmuch as the refuse function is an essential City service which must
be accomplished on a daily basis on a cost efficient and environmentally
safe manner, the City staff very carefully evaluated the quality and
reliability of the CNG engines proposed for use through this grant. City
staff personally discussed the experience of other refuse and bus
operators who have utilized the specified CNG engine and who plan to
further expand their fleets further with CNG fueled equipment in the
future. Quality, reliability and on -going maintenance costs were
discussed in detail. Until we could be reassured of these key issues, we
could not recommend the grant to the City Council. Tonight we
recommend we proceed on this grant program.
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Council Agenda
Item No.
October 28, 1996
TO: Mayor and City Council
FROM: General Services Director
SUBJECT: AQMD Grant for Natural Gas Vehicles
Recommendations
Approve the attached AQMD contract that stipulates the conditions of acceptance of
a grant for $500,000 for an alternative fuel vehicles program and authorize staff to
execute the contract and proceed with the program.
Approve the attached budget amendment for $475,532 for the purchase of ten
compressed natural gas refuse trucks. Authorization will provide interim funding
until AQMD grant funds are received.
Approve budget amendments for: the construction of a Corporation Yard compressed
natural gas fueling station, mechanic training, tools, and upgrades to the Equipment
. Maintenance Shop as outlined within this staff report.
Background
As the Air Quality Management District (AQMD) has sought further ways to ensure
cleaner air in Southern California, interest has focused on the use of alternate fuels
and Alternative Fuel Vehicles (AFV). The advantages of using alternative fuels
include energy independence from imported fuels, emissions reductions, and lower fleet
operating costs.
One of the AFV alternatives is the use of compressed natural gas (CNG) to power
heavy duty vehicles such as street sweepers and refuse trucks. CNG is one of six
types of alternative fuels that are currently available. As of July 1, 1996, City
vehicles are using two other types of alternative fuels exclusively, reformulated
gasoline and "clean" diesel fuel. The large rise in the cost of reformulated fuels, both
diesel and gasoline, has added significant unbudgeted expenses to various
departmental budgets that justify the consideration of the six non - petroleum based
alternative fuels (natural gas, propane, methanol, ethanol, hydrogen, and electricity).
Of the six non - petroleum based alternative fuels, CNG represents the best
alternative for City use. Lower fuel costs (below that of reformulated gasoline and
"clean" diesel fuel), reduced air emissions, decreased maintenance costs, development
• of efficient CNG engines by major engine manufacturers, and government grant
programs make the conversion to CNG an attractive option.
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The use of alternative fuels in heavy duty equipment that are on the street for long,
daily operating periods of time, such as buses, refuse trucks, and street sweepers, is •
the focus of AQMD grant programs to reduce emissions. For instance, a CNG-
powered heavy duty urban bus produces 92% less hydrocarbons (322 pounds /year
versus 4,095 pounds/year) than its diesel- powered counterpart.
On a biennial basis, AQMD solicits proposals from local governments for grants
related to the expansion of AFV use. Grants are then funded from AQMD
discretionary funds administered by AQMD. Local governments are expected to
provide matching funds, or in some cases, due to the competition for funds, the
majority of the funding related to a proposal.
In September 1995, City staff, with the help of an outside consultant, The Planning
Center, developed and submitted a proposal that would use AQMD grant funding to
provide partial payment for the purchase of compressed natural gas powered street
sweepers and refuse trucks. The original City request for funding was $1,016,000
with a portion of the City's grant ($70,000) to be administered for a private street
sweeping firm, Sunset Property Services, for the purchase of street sweepers. The
private street sweepers were included in the grant due to their extensive daily use and
potential to decrease air pollution, which enhanced our grant application's probability
of success. Council approved the grant submittal on September 11, 1995 with the
provision that the Council approve final acceptance of the AQMD contract.
In conjunction with the AFV proposal was a City plan to coordinate the development
of an AFV fueling station at the intersection of a triangular area bounded by •
MacArthur Boulevard, Jamboree Road, and the Corona del Mar Freeway. The land
owner (The Irvine Company), Southern California Gas Company, and a private
developer of fueling stations (MESA Inc.) met with City staff on numerous occasions
in an effort to ensure an alternative fuels station would be available for public use
within the City limits, as well as providing a convenient refueling point for City
vehicles acquired through the AQMD grant program. The site would serve the general
public and vehicles associated with John Wayne Airport. In particular, Super Shuttle
and Yellow Cab plan to fuel their fleets, which are now fueling in Anaheim, at this new
site or an alternate City location. This requirement to develop an AFV fueling station
has been deleted from the grant requirements for reasons later detailed in this report.
The City grant proposal requesting $1,016,000 was submitted to AQMD on
September 19, 1995. The total cost of the project was originally estimated to be
$3,622,575 which included co- funding by the City, private developers, and AQMD.
Attachment A provides details of the grant and co- funding associated with the project
after subsequent changes were made to reduce City and co- funding obligations. These
changes are further described in the following paragraphs.
AQMD Grant Proposal
On November 1, 1995, City staff were notified by AQMD staff that a grant of
$500,000 had been recommended by the Mobile Source Air Pollution Reduction
Review Committee. The project had also been reduced by the Committee from the •
original request of 27 vehicles (that would have been converted or replaced) to the
purchase of 15 new CNG dedicated fuel vehicles. The grant was further refined on
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November 7, 1995 to include five commercial street sweepers (private) and ten
• municipal (City) refuse trucks. The award remained at $500,000 of which $17,000
must be used for a 12 -month monitoring and data collection program, and $70,000
must be used to convert or purchase private commercial street sweepers. The
remainder, $413,000, can only be used to offset the incremental cost of the purchase
of ten original equipment manufacture (OEM) CNG dedicated fuel refuse trucks. As a
matter of clarification, the City will have no direct role with the purchase nor
operation of the private street sweepers. We will, however, utilize a common
consultant to monitor and report technical operating data to AQMD.
The Governing Board of AQMD subsequently approved the grant as part of the AB
2766 FY 95 -97 Work Program. Three amendments were made to the final contract
at the request of City staff. Final AQMD approval is reserved until the City approves
the attached contract stipulating detailed conditions of the use of grant funds.
Even prior to the grant application and submittal, staff began investigating the use of
alternative fuels in the City fleet. The first step was to identify an experienced
consultant to assess the best type of alternative fuel for use. Fuel Solutions, LLC
was identified as a recognized independent alternative fuels authority in the Southern
California area, not just in the conversion of fleets to alternative fuels, but also
experienced in the planning, construction, and operation of alternative fuels fueling
stations.
Since August 1995 staff have worked with Fuel Solutions, LLC to submit additional
• required information, technical data, and documents to AQMD staff in preparation for
the joint contract between the City and AQMD. Due to timing difficulties encountered
by AQMD staff, the completion date for all the contracts was extended from the
original May 9, 1996 due date.
AQMD has provided the attached contract with three amendments (Attachment B)
for Council consideration. A decision to approve the final contract or withdraw the
proposal must be accomplished no later than October 31, 1996.
AQMD Contract
The AQMD contract (Attachment B) provides the conditions associated with
accepting the grant of $500,000 as well as three amendments. It has been reviewed
by the Assistant City Attorney. The following summary is provided:
a. The term is 24 months. A data collection period of 12 months starting July
1, 1997, utilizing the 15 CNG vehicles and at least one diesel powered
vehicle, has been specified by AQMD.
b. Quarterly progress reports, as well as a final report, are required.
c. City may receive Emission Reduction Credits based on miles traveled with
alternative fuel vehicles. This amenity could offset current expenditures for
Rideshare programs.
d. City retains full ownership rights of the alternative fuel vehicles.
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e. Annual Nox emission reductions as a result of the use of the 15 CNG trucks .
are projected to be 9,493 pounds per year.
f. Alternative fuel vehicles must be competitively bid and undergo acceptance
testing by the City.
g. A detailed fueling plan is required in the first month of operations.
h. The Corporation Yard fueling station will be the primary fueling facility for
City.
L The City will be responsible for designing, permitting, and constructing the
Corporation Yard fueling station.
j. The contract requires that Sunset Property Services (the private street
sweeping company) purchase and operate five CNG fueled street sweepers.
Failure of Sunset to perform as specified would subject the City to a claim
of a material breach of the contract. The City Attorney has prepared an
agreement between the City and Sunset to indemnify the City from
potential risk.
k. Under the indemnification provision of the contract, the City agrees to
indemnify not only for the City's acts, but acts of its subcontractors.
Therefore, since Sunset Property Services is a subcontractor, the City
would be required to indemnify AQMD for loss or damages by Sunset's
performance under this contract. An indemnification waiver has been
provided by staff to Sunset Property. As noted above in paragraph j, an
indemnification proposal has been forwarded to Sunset for consideration.
1. The City is responsible for the training of City drivers and mechanics.
m. The City must advance the full cost of the trucks and subsequently request
reimbursement for the incremental cost from AQMD. This requirement will .
require approval of the attached budget amendment for $475,532 as the
current budget contains only authority for the first of five annual lease
payments for the equipment less the grant (Attachment F).
n. There is a 10% withholding cost imposed by AQMD on all submitted
invoices. These monies ($50,000) will be received upon successful
completion of the program.
o. The contract contains no allowance for amendments, although the City
requested and received approval from AQMD on three amendments during
September 1996 as noted below.
Originally, the City proposed the use of a larger engine and transmission in the six
larger refuse vehicles. In April 1996, staff opted to use a common, smaller 8.3 liter
engine in all ten vehicles as a means of lowering the cost of the ten trucks. Research
conducted since that time has convinced staff the original plan offers the optimum
chance of success in operating CNG refuse trucks as well as ensuring full usage of the
trucks in steeply inclined areas such as Spyglass and possibly in future Newport
Coast areas since these vehicles will be in use for 7 - 10 years. The additional cost to
the program for the six larger engines is approximately $61,800 and would be funded
from City AB 2766 funds. This amendment provides essential flexibility in the use of
the equipment.
Staff and our consultant made presentations to two separate AQMD committees on
September 26, 1996 requesting three amendments to the contract. AQMD approved •
each of the three amendments as follows:
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a. Six of the ten refuse trucks may be purchased with the larger Cummins L-
• 10 engine.
b. The City Yard fueling station will become the primary fueling point for City
equipment.
c. The City will no longer be bound by contract to develop a public access
alternative fuels station (although we intend to assist in the planning
process).
Equipment Requirements
Staff has been researching the development, availability, and cost of dedicated and
approved compressed natural gas engines for refuse trucks. At this time, Cummins,
John Deere, and Caterpillar are the only manufacturers of large heavy duty CNG
engines suitable for use in heavy duty trucks. Staff has been able to identify
powertrain components and design requirements unique to CNG vehicles. In some
cases the limited availability of the CNG engine has added considerable cost, which
will be offset by the use of grant funds. Preliminary equipment cost estimates have
been developed with the results noted by Attachment C.
Attachment C also provides overall costs of CNG configured refuse trucks as well as
current costs of conventional diesel- powered trucks. The comparison of costs were
further matched against the $413,000 grant. The effects of financing the purchase of
ten refuse trucks over the next five years is also illustrated by Attachments C and D.
• Due to a large number of refuse truck purchases in 1987, a significant portion of the
fleet (7 of 18) is due for normal replacement in FY 96 -97. The main advantage of
accepting the AQMD grant is the availability of financial assistance at a time when
so many refuse trucks need to be replaced.
Prior to 1993, City refuse trucks were replaced on a seven -year cycle, which is the
general industry standard. Due to budgetary constraints, the interval has been
gradually lengthened to the current ten -year cycle. As a result of the extended service
life interval, two of the ten refuse trucks proposed for replacement with CNG units
would normally be deferred from replacement one or two years.
The grant provides the opportunity to replace 10 of the 18 refuse trucks, a purchase
that is partially included in the FY 96 -97 budget, as well as to considerably reduce the
current overall costs of maintenance that has increased as the trucks have been
extended in service.
It is important to again emphasize that the purchase of two of the ten CNG powered
refuse trucks would be accelerated by one to two years with the acceptance of the
AQMD grant. The acceleration of purchase would be aided by the use of not only the
AQMD grant funds, but by the use of City AB 2766 subvention funds as well. In
actuality, the trucks would be replaced in a time frame that more closely duplicates
industry standards, decreases maintenance costs, and uses non - General Fund dollars
to accomplish this objective.
•
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AQMD Funding •
In addition to discretionary funding ($500,000) from the proposed AQMD grant, the
City receives AB 2766 subvention funding on an annual basis from the AB 2766 -
Vehicle Registration Fee Program and is held in a separate City account. Subvention
funding can only be used for specific tasks such as alternative fuels programs, and
other studies or programs directly related to improving air quality. The City now uses
$30,000 annually of the City's AB 2766 monies to assist the two Transportation
Management Associations (Centeride and Coastal Motion), which recently made
presentations to the City Council.
The current balance of AB 2766 subvention funding allocated to the City is $305,858
with expected annual additions of $76,000. By July 1, 1997, the City AQMD Special
Revenue Fund should have $250,000 available for use to offset the incremental cost
of the CNG trucks as well as costs of CNG associated projects. Staff is still
researching how the use of this grant to purchase CNG vehicles could be used as
credit for our air emission requirements and scale back our $30,000 General Fund
allocation for employee Rideshare programs. If the grant is accepted by the City
Council, staff will proceed aggressively on this matter to generate additional General
Fund savings.
A possible and permitted use of the remaining subvention funds is the portion of the
incremental cost of the CNG refuse trucks not covered by the grant ($68,370), the
construction and equipping of a City Yard CNG station as well as mechanic training •
and special tools ($97,000), and field test and project management ($66,000).
Attachments C and E illustrate how the use of AB 2766 subvention funds would
offset the City direct costs of. lease - purchasing the ten new CNG refuse trucks, data
collection and project management, and facilities improvements.
Only $68,370 of the available $250,000 of subvention funds is needed to offset the
incremental cost of the new trucks. Due to AQMD rules, AB 2766 subvention
revenue that would be received in future fiscal years (FY 97 -98 and beyond), cannot
be used to offset future annual principal and interest payments for the CNG trucks.
This restriction is due to the fact that the incremental cost of the trucks, ($481,370)
is fully covered by the AQMD grant of $413,000 and $68,370 of AB 2766 subvention
funds. However, the City will have annual fuel savings on an on -going basis and the
likelihood of a reduced cost or elimination of our current Rideshare Program.
AFT Fueling Station
The original grant proposal included the siting of a public access alternative fuels
station at MacArthur Blvd. and Jamboree Road. Staff has worked diligently with The
Irvine Company (TIC), MESA, Inc. and Southern California Gas Company to site
the facility. However, during late August, TIC gave notice to the City that the
original site may be too costly and time consuming to develop as a fueling station due
to its topography and the environmental mitigation anticipated to be required by
resource agencies. Staff continues to coordinate with TIC and Southern California •
Gas Company to identify fueling sites within the City.
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While there is a CNG fueling facility available at the Orange County Sanitation
. District Fountain Valley location, it is not economical nor feasible to refuel ten City
refuse trucks there on a daily or even a twice - weekly basis. The establishment of a
"slow" or "fast fill" CNG fueling station within the City limits is essential to the City
introduction and use of CNG vehicles.
A "slow fill", or timed fuel CNG fueling station at City Yard is programmed to be the
primary fueling facility for this project. City AB 2766 subvention funds would be used
to build and equip the Yard fueling facility. Southern California Gas Company (SCG)
has offered the complimentary installation of a separate gas meter at the City Yard,
as well as the sale of equipment for 12 fueling stations at a reduced cost. CNG
purchased directly from SCG via a City Yard fueling station will be considerably less
expensive than CNG purchased at a private "fast fill" station. This is due to the cost
to compress CNG ( +3000 pounds per square inch) for expedited or "fast fill" fueling.
For example, the fueling costs on a per gallon diesel equivalent basis will be
approximately $30 per gallon at a fast fill site, versus approximately $.67 per gallon
at the slow fill City Yard site. The City currently spends $.99 per gallon for diesel fuel.
In addition, State fuel tax permits will be purchased for each new CNG truck resulting
in an annual estimated tax savings of $4,720.
Proposal Expenditures
The grant will require expenditures for: training City mechanics to repair CNG
. vehicles ($5,000), the cost of modifying the Equipment Maintenance Facility to
accommodate CNG vehicles ($20,000), the cost of tools and gas sensors to maintain
CNG vehicles ($2,000), and the cost to construct and equip a slow fill CNG fueling
station at City Yard ($70,000). If Council approves an alternative fuel program,
budget amendments for the Corporation Yard fueling station, modifications to the
repair facility, training, and special tools will be prepared for later Council approval
utilizing AB 2766 subvention funds.
The full "pre -grant" cost of the ten refuse trucks is estimated to be $1,682,682
(Attachment E). To initiate the program, the City will have to obligate itself for the
full amount upon issuing a purchasing order. Upon delivery of the units to the City,
financial arrangements will be made to postpone the first payment until grant funding
from AQMD is obtained and applied against the loan. The current budget provides for
only $1,207,150 of the $1,682,682 estimated to be needed. A budget amendment for
the difference ($475,532) has been attached for consideration (Attachment F).
Summary
There are major advantages to accepting the AQMD grant other than the monetary
award of $500,000. The City would be the first city agency in Orange County to
utilize heavy duty CNG refuse collection vehicles, although the City of Irvine has
numerous light and medium duty CNG vehicles as well as their own fueling station.
In addition, the City would be participating in a public - private grant partnership with
• a private street sweeping company. The City would be able to use AB 2766
subvention funding totaling at least $250,000 that would be otherwise limited in the
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available uses and directly assisting to offset General Fund costs. The use of the 15
CNG sweeper or refuse trucks would reduce the amount of pollution emissions by a
minimum of 9,493 pounds per year. Finally, the City will be able to lower long term
fueling costs for ten refuse trucks by approximately 35 %.
The decision to accept or decline the AQMD grant has required careful consideration
by the City staff and our consultant, Fuel Solutions, LLC. There are numerous
positive and negative factors that affect the implementation and success of a City
CNG vehicle program. From a technical and operations point of view, significant staff
resources that have been depleted due to budgetary cutbacks would have to be
committed to a CNG program, but this can be partially offset by the use of a
consultant utilizing grant and AB 2766 funding. Should we encounter mechanical
difficulties with our new CNG trucks, our financial advantage in collecting municipal
solid waste could easily evaporate or decline long term resulting in higher costs that
must be taken directly from the City General Fund. Cummins engineering personnel
assure City staff that the new 8.3 liter CNG engine has been totally redesigned for
reliability and the City will receive full factory support (Attachment G). The
Southern California Gas Company offers customer service and technical engineering
assistance as well (Attachment H). Staff is confident that all major factors affecting
the proposed CNG program have been thoroughly and exhaustively addressed, and
that staff and the consultant will be able to resolve any obstacles to a successful
program.
Should the Council decide to decline the AQMD grant, staff would submit a budget
amendment at a subsequent Council meeting substituting the purchase of seven •
diesel- powered refuse trucks for the ten units presently included in the FY 96 -97
budget. Since the purchase price of three of seven diesel units would be below the
normal financing level and we would pay the full amount for each unit, additional FY
96 -97 funding in the amount of $75,000 would need to be transferred from the
accumulated reserve of the Equipment Replacement Fund to the Equipment
Purchasing account.
In summary, staff recommends that the Council accept the AQMD grant of $500,000
and the associated contract conditions and amendments. This recommendation is
based on value of the AQMD grant, the ability to use AB 2766 subvention funds
($250,000), financial assistance in replacing ten of eighteen refuse collection trucks
($413,000), an estimate of decreased annual fuel and fuel tax costs ($4,720 per year),
estimated annual sales tax savings by using CNG ($5,000), annual reduction of
almost five tons of pollution emissions, and a possible elimination or reduction of
annual City expenses ($30,000) associated with Rideshare programs.
Very respectfully,
i
David E. Niederhaus
DEN /mhl •
0
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Attachments:
• A. AQMD Grant Proposal Funding
B. AQMD Grant Contract (with 3 amendments)
C. CNG vs. Diesel Refuse Truck Cost Comparison
D. Annual Vehicle Lease Payments (CNG vs. Diesel Refuse Vehicles)
E. Direct City Costs with Acceptance of AQMD Grant
F. Budget Amendment
G. Cummins Cal Pacific Inc. letter of August 21, 1996
H. Southern California Gas Company letter of August 19, 1996
11
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Proposal No.4 -6 Contract No. AB2766/96036
• SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
STANDARD CONTRACT
PARTIES - The parties to this Contract are the South Coast Air Quality Management District (hereinafter referred
to as "DISTRICT') whose address is 21865 Copley Drive, Diamond Bar, California 91765, and City of Newport
Beach (hereinafter referred to as "CONTRACTOR") whose address is 3300 Newport Boulevard, Newport Beach,
CA 92658.
2. RECITALS
A. DISTRICT is the local agency with primary responsibility for regulating stationary source air pollution in the
South Coast Air Basin in the State of California (State). DISTRICT 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 DISTRICT'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 DISTRICT.
C. AB 2766 further mandates that thirty (30) percent of such vehicle registration fees be placed by DISTRICT
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
DISTRICT'S Governing Board, DISTRICT Board authorized a contract with CONTRACTOR for services
•described in Attachment 2 - Work Statement, expressly incorporated herein by this reference and made a part
hereof of this Contract. CONTRACTOR warrants that it is well qualified, experienced, and has the expertise to
provide such services on the terms set forth here.
3. TERMS AND CONDITIONS OF PERFORMANCE
A. CONTRACTOR acknowledges that DISTRICT cannot guarantee the amount of fee to be collected under
AB2766 will be sufficient to fund this Contract. CONTRACTOR further acknowledges that DISTRICTS receipts of
funds is contingent on the timely remittance by State's DMV. DISTRICT assumes no responsibility for the
collection and remittance of motor vehicle registration fees by DMV to DISTRICT in a timely manner.
B. For cofunded projects, CONTRACTOR shall obtain sufficient monies (cofunding) to fund the total cost of the
project, as outlined in Attachment 2 - Work Statement and Attachment 5 - Supporting Documents expressly
incorporated herein by this reference and made a part hereof of this Contract. Satisfactory written evidence of
such funding commitments shall be provided to DISTRICT prior to the release of DISTRICT'S contribution under
this Contract.
C. In the event funding from other sources for the total cost of the project, as outlined in Paragraph 38, is not
received within the stipulated time, or fee revenues are not made available to DISTRICT by DMV, DISTRICT
reserves the right to terminate or renegotiate this Contract as set forth in Paragraph 6 below, entitled Termination.
D. CONTRACTOR shall submit all reports and deliverables listed in Attachment 2 - Work Statement and
invoices for payment to DISTRICT. DISTRICT will coordinate any program review it performs through
CONTRACTOR'S program staff. If an amount is found to be inappropriately expended as a result of any review
by DISTRICT, DISTRICT may withhold revenue from CONTRACTOR in the amount equal to the amount which
was inappropriately expended. Such withholding shall not be construed as DISTRICTS sole remedy and shall not
relieve CONTRACTOR of its obligation to perform under the terms of this Contract.
E. 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 DISTRICT 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. DISTRICT shalt coordinate such audit through CONTRACTOR'S
audit staff. If an amount is found to be inappropriately expended, DISTRICT may withhold revenue from
CONTRACTOR in the amount equal to the amount which was inappropriately expended. Such withholding shall
Attactment B \S
0
not be construed as DISTRICT'S sole remedy and shall not relieve CONTRACTOR of its obligation to perform
under the terms of this Contract. •
F. CONTRACTOR shall provide DISTRICT with CONTRACTOR'S bid process and documentation if a bid
process is required to expend the funds provided to CONTRACTOR under the terms of this contract. These
documents will be included in Attachment 5 - Supporting Documents.
4. SERVICES
A. CONTRACTOR agrees to furnish all labor, materials, equipment, required licenses, permits, fees, and other
appropriate legal authorization from all applicable federal, state, and local jurisdictions necessary to perform and
complete, per schedule, in a professional manner, the services described herein.
B. CONTRACTOR shall submit quarterty progress reports to DISTRICT within fifteen (15) days of the end of the
reporting period. Such reports shall detail: 1) work performed during the current reporting period; 2) work planned
for the next reporting period; 3) problems Identified, solved, and/or unresolved; 4) the percentage of each task
completed; 5) any slips in the project schedule should be explained and include a description of what steps will be
taken to complete the project on time. Progress reports that do not comply will be returned to CONTRACTOR as
inadequate; and 6) a cost breakdown by cost category for each task showing both the amount of AB2768 funds
expended and co- funding expended for the reporting period and the cumulative period to date..
C. CONTRACTOR shall provide DISTRICT with a comprehensive final report prior to end of contract term. The
final report shall be subject to review by the MSRC and approval by DISTRICT. The final report shall be
complete, on letter -size paper, and include illustrations and graphs, as appropriate, to document the work
performed and the results thereof under this Contract. The final report will also contain, in detail, the reduction of
mobile source air pollution emissions resulting from the project's implementation.
5. TERM - The term of this Contract is for twenty -four (24) months from the date first entered hereon, unless
terminated earlier as provided for in Paragraph 6 below entitled Termination, extended by amendment of this
Contract in writing or unless a final report is submitted and approved by DISTRICT prior to the twenty -four (24)
month time period. 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. .
6. 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 2 - Work Statement, 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 Paragraph 13 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. DISTRICT reserves the right to terminate this Contract for
nonbreach and will reimburse CONTRACTOR for actual costs incurred in performance of this Contract through
the effective date of termination for nonbreach.
INSURANCE - CONTRACTOR is permissibly self- insured and will maintain self - insurance in accordance with
applicable provisions of California law as evidenced by certificate of self - insurance in Attachment 5, herein.
CONTRACTOR shall maintain such coverage during the term of this Contract and any extensions thereof. If
CONTRACTOR fails to maintain the required insurance coverage, DISTRICT 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.
8. INDEMNIFICATION - CONTRACTOR agrees to hold harmless, defend, and indemnify DISTRICT, its officers,
employees, agents, representatives, and successors -in- interest against any and all loss, damage, cost, or
expenses which DISTRICT, 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. .
9. PAYMENT •
A. DISTRICT shall reimburse CONTRACTOR up to a total amount of Five Hundred Thousand Dollars ($500,000)
in accordance with Attachment 3 - Cost Schedule, expressly incorporated herein by this reference and made a
part hereof of this Contract. Any funds not expended upon early contract termination or contract completion shall
revert to the AB2766 Discretionary Fund. Payment of charges shall be made by DISTRICT to CONTRACTOR
\0
within thirty (30) days after approval by DISTRICT of an itemized invoice prepared and furnished by
,CONTRACTOR, referencing the task completed or a percent of work accomplished and detailing line item
expenditures as listed in Attachment 3, Costs by Category, and the amount of charge claimed.
B. Total costs per task and costs by category, as listed in Attachment 3 - Cost Schedule, are estimates.
Reallocation of costs between tasks and/or cost elements (cost by category) is permitted up to a total cumulative
limit of Five Thousand Dollars ($5,000). Written notification of this reallocation must be submitted to DISTRICT.
Amounts in excess of $5,000 require a Contract amendment in writing.
C. An invoice submitted to DISTRICT for payment must be prepared in duplicate, on company letterhead, and list
DISTRICTS 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 East
Copley Drive, Diamond Bar, CA 91765. Attn: Michele Stitzel.
D. DISTRICT'S payment of invoices shall be subject to the following limitations and requirements:
1) Charges for equipment, material, and supply costs, travel expenses, subcontractors, and other charges, as
applicable, must be itemized by CONTRACTOR. Reimbursement for equipment, material, supplies,
subcontractors, and other charges shall be made at actual cost. Supporting documentation must be provided for
all individual charges (with the exception of direct labor charges provided by CONTRACTOR) in excess of Two
Hundred and Fifty Dollars ($250).
ii) CONTRACTOR'S failure to provide receipts shall be grounds for DISTRICT'S non - reimbursement of such
charges. DISTRICT may reduce payments on invoices by those charges for which receipts were not provided.
E. DISTRICT shall pay CONTRACTOR for travel - related expenses only if such travel is expressly set forth in
Attachment 3 - Cost Schedule of this Contract or pre- authorized by DISTRICT in writing.
F. An amount equal to ten percent (10 %) shall be withheld from each invoice paid. Upon satisfactory completion
and final acceptance of work and the final report by DISTRICT, CONTRACTOR'S invoice for the 10% withheld
will be released. The total amount for which DISTRICT may be held liable for the performance of work specified
herein, including any authorized travel - related expenses and other direct charges, shall not exceed Five Hundred
Thousand Dollars ($500,000).
REPORT FORMAT - CONTRACTOR shall submit reports to DISTRICT as outlined in Attachment 2 - Work
IStatement and Attachment 4 - Schedule of Deliverables expressly incorporated herein by this reference and
made a part hereof of this Contract. All reports shall be submitted in the following manner: recycled paper;
stapled, not bound; black and white, double -sided print; and no three -ring, spiral, or plastic binders or cardstock
covers. DISTRICT reserves the right to review, comment, and request changes to any report produced as a
result of this Contract.
11. EMISSION REDUCTION CREDITS (ERCs)
A. The MSRC has adopted a policy that no ERCs may be generated and sold as a result of AB 2766 funding.
B. CONTRACTOR has the opportunity to generate ERCs as a by- product of the project. These ERCs, which are
issued by DISTRICT, are based upon the quantified vehicle miles traveled (VMT) by project vehicles. Therefore,
a portion of prospective ERCs, generated as a result of MSRC funding, 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- ERCs."
C. The determination of AB 2766 -ERC's is to be prorated based upon the AB 2766 program's contribution to the
overall cost. Determination of the project's overall cost will be on a case by case basis at the time an ERG
application is submitted. DISTRICT staff, at the time an ERC application is submitted, will calculate total ERCs
and then retire the AB 2766 -ERCs. CONTRACTOR would then receive the balance of the ERCs not associated
with AB 2766 funding.
12. ADDITIONAL PROVISIONS - Attachment 1 - Contract Provisions (three pages) to this Contract contains
additional provisions which are expressly incorporated herein by this reference and made a part hereof as though
fully set forth at this point.
13. 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.
DISTRICT: South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765
Attn: Michele Stitzel
CONTRACTOR: City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658
Attn: Kevin Murphy
41
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
By:
Jon D. Mikels, Chairman of the Board
Date:
ATTEST:
Jackie Dix, Clerk of the Board
By:
APPROVED AS TO FORM:
Peter Greenwald, District Counsel
lwlvm'M. ,
CITY OF NEWPORT BEACH
By:
By:
Date:
•
14
• STANDARD CONTRACT
ATTACHMENT 1 - Contract Provisions
Contract No. A82766/96036
CONTRACTOR'S REPRESENTATION - CONTRACTOR represents that CONTRACTOR has the expertise necessary to adequately perform
the services specified in Attachment 2 - Work Statement. DISTRICT Is entering Into this Contract based on CONTRACTOR'S expertise.
II. EMPLOYEES OF CONTRACTOR
A. CONTRACTOR warrants that he will employ no subcontractor without written approval from DISTRICT. CONTRACTOR shag be
responsible for the cost of regular pay to his 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 his 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 DISTRICT, 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 DISTRICT 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.
III. CONFIDENTIALITY - It is expressly understood and agreed that the information which either CONTRACTOR or DISTRICT designates as
confidential or proprietary information must be clearly identified as such by means of restrictive stamp, legend, or marking. With respect to such
designated information the parties agree to:
A. Observe complete confidentiality with respect to such information, Including without limitation, agreeing not to disclose or otherwise permit
access to such information by any other person or entity in any manner whatsoever, except that such disclosure or access shall be permitted to
employees and subcontractors of either party requiring access in fulfillment of the services provided under this Contract. Such information may be
•used by either party as follows:
1) only be used, duplicated and/or disclosed by the receiving party solely for the purposes of performance under this Contract and for no other
purpose whatsoever; and
ii) not be used, duplicated and/or disclosed by the receiving party for any other purpose whatsoever, Including, without limiting the generality of
the foregoing, for manufacture or procurement except as may be specifically granted under Paragraph V, below entitled - Ownership; and
iii) not be duplicated, reproduced or copied, in whole or In part, unless the sending parties restrictive legend or marking Is prominently displayed
on said copy a reproduction.
B. Oral or visual communications, Identified by either party at the time of disclosure as confidential or proprietary information, shall be protected
by the receiving party according to the terms hereof, provided that the disclosing party confirms In writing to the receiving party the confidential or
proprietary nature of said communication within ten (10) calendar days of said oral or visual disclosure.
C. Neither party shall be liable to the other party in any manner whatsoever for the use, duplication and/or disclosure of any part of the
confidential or proprietary information which is:
I) not identified as confidential or proprietary Information in accordance with paragraph III (basic) and subparagraph B hereof, (save and except
for any claims arising through infringement of registered patents owned or controlled by the disclosing party), or
ii) now or hereinafter comes into the public domain without breach of this Contract, or
iii) shown by the receiving party to be previously known to, or developed by ft, prior to the disclosure of said confidential or proprietary
Information, or
iv) shown by the receiving party to have been received from a third party without similar restrictions and without breach of this Contract, or
v) disclosed without restrictions by the sending party to a third party, or
A) used, duplicated or disclosed by the receiving party five (5) years or more after the disclosure of such confidential or proprietary information.
D. Both parties hereby covenant and agree to provide to each other thirty (30) calendar days prior written notice before use and/or disclosure is
made of confidential or proprietary information, protected according to the terms hereof, based upon the exceptions contained in Sections (i)
through (vi) of subparagraph C. above and as may be specifically granted under Paragraph V, below entitled - Ownership.
E. All confidential or proprietary Information disclosed hereunder shall remain the property of the disclosing party and all originals and copies of
said confidential or proprietary Information shall be returned promptly to the disclosing party upon the expiration or termination of this Contract,
excepting any reports provided to DISTRICT by CONTRACTOR Including the final report become the property of DISTRICT In perpetuity and after
•five (5) years time may be used, duplicated or disclosed without any restrictions.
F. Other than those rights and privileges granted expressly herein, neither the execution and delivery of this Contract, nor the delivery of any
confidential or proprietary information hereunder, shall be construed as granting either expressly, or by Implication, estoppel or otherwise, any right
in or license under any present or future confidential or proprietary information disclosed under this Contract, or under any invention of patent now
or hereafter owned or controlled by either party except as maybe specifically granted under paragraph V, below entitled - Ownership.
G. Each party shall notify promptly and in writing of the circumstances surrounding any possession, use, or knowledge of such information or
any part thereof by any person or entity other than those authorized by this paragraph.
H. Take at CONTRACTOR'S expense, but at DISTRICTS option and In any event under DISTRICTS control, any legal action necessary to •
prevent unauthorized use of such Information by any third party or entity which has gained access to such Information at least in part due to the
fault of CONTRACTOR.
I. Take at DISTRICTS expense, but at CONTRACTOR'S option and In any event under CONTRACTOR'S control, any legal action necessary
to prevent unauthorized use of such information by any third party or entity which has gained access to such information at West in part due to the
fault of DISTRICT.
J. Notwithstanding the above, nothing herein Is Intended to abrogate or modify the provisions of Government Code Section 6 250 st.seq. (Public
Records Act).
M PUBLICATION
A. Intonation, data, documents, or reports developed by CONTRACTOR for DISTRICT, pursuant to this Contract, shall be part of
DISTRICTS public record excepting data provided under Paragraph 111 above, entitled Confidentiality. CONTRACTOR may use or
publish, at its own expense, such Information provided to DISTRICT. The following acknowledgment of support and disclaimer must
appear in each document disseminated, whether copyrighted or not, and based upon the work performed under this Contrail
-This report was prepared as a result of work sponsored by the South Coast Air Quality Management District (DISTRICT). The
opinions, findings, conclusions, and recd nmendations are those of the author and do not necessarily represent the views of
DISTRICT. DISTRICT, its officers, employees, contractors, and subcontractors make no warranty, expressed or implied, and
assume no legal liability for the information in this report. DISTRICT has not approved or disapproved this report, nor has
DISTRICT passed upon the accuracy or adequacy of the information contained herein.'
B. CONTRACTOR shall Inform its officers, employees, and subcontractors involved in the performance of this Contract of the
restrictions contained herein and require compliance with the above publication terns.
C. DISTRICT shall have the right of prior written approval of any document which shall be disseminated to the public by
CONTRACTOR In which CONTRACTOR utilized Intonation obtained from DISTRICT In connection with performance under this
Contract.
V. OWNERSHIP - This and full ownership rights to any products purchased or developed under this Contract shall at all times remain with •
CONTRACTOR. CONTRACTOR shall also retain title and full ownership rights to any documents or reports developed under this Contract All
of the above shall be subject to the following limitations:
A. PATENT RIGHTS - CONTRACTOR shall have patent rights, as well as title and full ownership rights, for Invention(s) developed
under this contract, subject to DISTRICT retaining a no-cost, nonexclusive, nontransferable, irrevocable license to use or test such
invention(s) for DISTRICT purposes. CONTRACTOR must obtain agreements to effectuate this clause with all persons or entities
obtaining an ownership Interest in the patented subject invention(s). Previously documented (whether patented or unpatented under
the patent laws of the United States, 35U.S.C. 7 et seq., or any foreign country) Inventions are exempt from this provision.
CONTRACTOR shall submit a written report to DISTRICT'S Agent disclosing each subject invention and specifying patents applied
for, patents issued, and patent application(s) abandoned and/or cosponsored participants on subject invention(s).
B. RIGHTS OF TECHNICAL DATA - DISTRICT shall have unlimited right to use technical data resulting from performance of
CONTRACTOR under this Contract CONTRACTOR shall have the right to use data for its own benefit.
C. COPYRIGHT - CONTRACTOR agrees to grant DISTRICT a royalty free, nonexclusive, Irrevocable, nontransferable license to
produce, translate, publish, use, and dispose of all copyrightable material first produced or composed in the performance of this
Contract.
D. SOFTWARE RIGHTS - CONTRACTOR agrees to grant DISTRICT a worldwide, royalty free, nonexclusive, irrevocable, nontransferable
license in perpetuity to use any software developed by CONTRACTOR in performing its obligations under this Contract. CONTRACTOR further
agrees to obtain the rights required from any third party for DISTRICT to have a worldwide, royalty free, nonexclusive, irrevocable license in
perpetuity to use any other software essential to performance of CONTRACTOR'S obligations under this Contract or necessary to the operation of
the software developed by CONTRACTOR. CONTRACTOR shall provide DISTRICT with documentation confirming CONTRACTOR'S right to
assign the use of such software. CONTRACTOR shall also provide DISTRICT with all documentation and manuals required to operate the
software developed by it or third parties.
E. CONTRACTOR'S INSOLVENCY OR BANKRUPTCY, or PROJECTS DISCONTINUATION - CONTRACTOR agrees that In the event
that CONTRACTOR becomes Insolvent or files for bankruptcy during the term of the Contract or does not complete the intent of the project and
maintain its intention for a minimum period of one year beyond the term of this Contract, title to goods, services software, and equipment purchased
for the performance of this Contract with AB 2766 Discretionary Funds shalt revert back to the DISTRICT for deposit into the DISTRICTS
separate account for the purpose of continuation of implementing and monitoring programs to reduce air pollution from motor vehicles. Public
agencies and schools are exempt from this clause with the following exception: If any project discontinues or is not maintained for one year after the
term of this Contract, assets purchased by AB 2766 Discretionary Funds shall revert to the DISTRICT for deposit into the DISTRICTS separate
account for the purpose of continuation of implementing and monitoring programs to reduce air pollution from motor vehicles.
M. 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 fie
provisions of the California Fair Employment 8 Housing Act (Government Code Section 12900, at sea ), the Federal Civil Rights Ad of 1964 (P.L.
85-352) 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 paragraph and shall include In
each such subcontract language similar to this paragraph.
VII. SOLICITATION OF EMPLOYEES - CONTRACTOR expressly agrees that CONTRACTOR shall not, during the term of this Contract, nor for a
period of six months after termination, solicit for employment, whether as an employee or independent contractor, any person who Is or has been
employed by the DISTRICT during the term of this Contract without the consent of DISTRICT.
VIII. PROPERTY AND SECURITY - Without limiting CONTRACTOR'S obligations with regard to security. CONTRACTOR shall comply with all the
rules and regulations established by DISTRICT for access to and activity In and around DISTRICTS premises.
IX. ASSIGNMENT -The rights granted hereby may not be assigned, sold, licensed, or otherwise transferred by either party without the written consent
of the other, and any attempt by either party to do so shall be void upon inception.
X. NON - EFFECT OF WAIVER - CONTRACTOR'S or DISTRICTS 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 terms, covenants, or conditions, or of the future exercise of such rights or remedies, unless otherwise provided for
herein.
A. 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.
XII. FORCE MAJEURE - Neither DISTRICT 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, ads of public enemy, war,
•strikes, labor disputes, shortages of suitable parts, materials, labor or transportation, or any similar cause beyond the reasonable control of
DISTRICT or CONTRACTOR.
XIII. 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.
XIV. HEADINGS - Headings on the paragraphs 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.
XV. DUPLICATE EXECUTION - This Contract is executed in duplicate. Each signed copy shall have the force and effect of an original.
XVI. 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.
XVIL PRECONTRACT COSTS —Any costs incurred by Contractor prior to District 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 District 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.
XVIII. ENTIRE CONTRACT -This Contract represents the entire agreement between the parties hereto related to CONTRACTOR providing services to
DISTRICT 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.
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ATTACHMENT 2 — STATEMENT OF WORK
CITY OFNEH"RT BEACH
hereinafter referred to as CONTRACTOR
Contract No. AB 2766/96036
PROJECT PURPOSE
The purpose of this demonstration project is to facilitate the deployment of ten heavy -duty municipal refuse trucks
and five commercial street sweepers, all of which will be powered by original equipment manufacture (OEM)
compressed natural gas (CNG) engines and fuel systems.
The primary benefit of this deployment will be a significant reduction in NOx and other emissions, as well as to
demonstrate the viability of CNG - fueled vehicles in such fleet applications.
The viability of the CNG fleets will be verified during a 12 -month data collection program that will address many
aspects of the vehicles' operation, ranging from fueling and maintenance costs to usability and reliability
evaluations. Parallel data will also be collected from at least one appropriate conventionally fueled control
vehicle(s).
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A critical component of the project will be the development of an alternative -fuel station (Clean Fuel Station) that
will provide public access to CNG and methanol fuels, as well as electric vehicle (EV) recharging.
Funding for the project will come from a variety of sources. Co- funding for the project will come from: the •
CONTRACTOR (base cost of refuse haulers, portion of incremental -CNG cost of refuse haulers, certain station
development costs, project management and a portion of demonstration and data collection project); Sunset
Properties (base cost of street sweepers); MESA, Inc. (CNG fueling infrastructure at Station); and Southern
California Edison (EV recharging infrastructure at Station). The Mobile Source Air Pollution Reduction Review
Committee (MSRC) will fund the majority of the incremental cost of the 15 vehicles' CNG - related components and
equipment, as well as a portion of the data collection program.
EMISSIONS BENEFITS
Annual NOx Emission Reductions = 9,493 lbs.
The following Statement of Work is provided by the CONTRACTOR and becomes an integral part of the Contract.
CONTRACTOR agrees to perform the Statement of Work within the terms of the Contract and to expend funds as
set forth in Attachment 3 - Cost Schedule.
STATEMENT OF WORK
The following Tasks will be performed by the CONTRACTOR:
TASK 1 — SITE SELECTION
1.1 Confirm Fleets' Participation — CONTRACTOR has confirmed that two fleets will participate in the
project.
1.1.1 The CONTRACTOR will participate in the project by purchasing and operating ten CNG - fueled refuse
trucks. Contact information for the CONTRACTOR'S vehicle fleet operations is the General Services
1a
Director, City of Newport Beach, Post Office Box 1768, Newport Beach, CA 92659 -1768, (714) 644 -
3055, fax (714) 650 -0747. The geographic area the vehicles will operate ranges throughout the City of
Newport Beach, as well as portions of the City of Stanton.
1.1.2 Sunset Property Services will purchase and operate five CNG- fueled street sweepers. Contact
information for the firm's vehicle fleet operations is John D. Howhannesian, President, Sunset Property
Services, 16251 Construction Circle West, Irvine, CA 92714, (714) 551 -5151, fax (714) 5514371. The
geographic area the vehicles will serve includes all of Orange County and portions of Los Angeles and
Riverside Counties.
1.2 Commitments of Participation — CONTRACTOR has confirmed participation from the entities that will
be providing co-funding. Such confirmations are contained in letters of commitment from each entity
that is providing co- funding. The letters, which include the dollar values of the respective co- funding
amounts, are included herein as part of Attachment 5.
TASK 2 — VEHICLES
2.1 Vehicle Plan — Emission-certification status of engines to be put into service.
2.1.1 All ten of the CNG - fueled refuse haulers that the CONTRACTOR will place in service as a result of this
project will utilize the Cummins C8.3 engines. Further, the CNG systems and components on all of the
vehicles will be original equipment manufactured (OEM).
2.1.2.1 Three of the CNG - fueled street sweepers that Sunset Property Services will place in service as a result of
this project will utilize the GMC 366 cubic -inch engine. Further, the CNG systems and components on
all of the vehicles will be OEM. As the 1995 model -year version of the GMC 366 cubic -inch engine is
certified by CARB to conventional standards, it is anticipated that the 1996 model -year version of the
• engine will also be so certified within the next six months and in advance of the vehicles' delivery.
2.1.2.2 Two of the CNG - fueled street sweepers that Sunset Property Services will place in service as a result of
this project will utilize the medium-duty truck variant of the GMC 5.7 -liter engine. Further, the CNG
systems and components on the vehicles will be OEM. As the 1995 model -year version of the engine is
certified by CARB to conventional standards, it is anticipated that the 1996 model -year version of the
engine will also be so certified within the next six months and in advance of the vehicles' delivery.
2.2 Vehicle Delivery
2.2.1 The CONTRACTOR will prepare specifications for the ten CNG - fueled waste haulers that will be
released for competitive bid, in accordance with the City's Purchasing Procedures (see Attachment 5).
2.2.2 Sunset Property Services will procure the five CNG - fueled street sweepers in accordance with their
Purchasing Policy Statement (see Attachment 5).
2.3 Identification of Control Vehicles — Upon initiation of program, appropriate conventionally fueled
control vehicles will be identified by the CONTRACTOR.
2.4 Acceptance Testing — The CONTRACTOR, in conjunction with the Subcontractor (see Task 4.1), will
carry out acceptance testing of OEM vehicles preceding their delivery. This will include verification that
bid specifications have been met, quality of manufacture is acceptable, as well as certain performance and
functionality testing.
TASK 3 — REFUELING FACILITY ARRANGEMENTS AND SUPPORT
• 3.1 Fueling Plan — A detailed fueling plan will be submitted within the first month of the contract's
inception. It is anticipated that Clean Fuel Station, which is central to the fueling plan will not be placed
in service until August or September of 1997. The plan will include a multi -fuel Station that will provide
2
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• •
at least CNG and methanol fuels, as well as electric vehicle (EV) recharging. Co- funding for the
Station's development will come from MESA, Inc., Southern California Edison and the •
CONTRACTOR The proposed location for the Station is a five -acre site at Jamboree Road and
MacArthur Boulevard in the City of Newport Beach, which is near the convergence of the 405, 55 and 73
freeways.
3.2 Refueling Facility Development — The Clean Fuel Station will feature separate fueling dispenser islands
for light -duty vehicles and medium/heavy-duty trucks and it will also allow for 3,600 psig CNG fill
pressure, in addition to the standard 3,000 psig fill pressure. While the Clean Fuel Station will be the
primary fueling facility for the CONTRACTOR'S and Sunset Property Service's CNG fleets, backup
CNG fueling is available nearby at the Orange County Sanitation District.
MESA, Inc. will be responsible for designing, permitting and constructing the Station's CNG fueling
infrastructure.
3.3 Letter of Agreement — MESA, Inc. has ensured full public access to the CNG fueling facility, including
access by the CONTRACTOR and Sunset Property Services, by means of the attached letter (see
Attachment 5).
TASK 4 — FIELD TEST AND DATA COLLECTION
4.1 Vehicle Field Test Plan — Startup of the field test and data collection project is subject to the availability
of viable, accessible and affordable CNG fueling. Although the project's main fueling capacity will be
provided by the Clean Fuel Station, which will not be in service until the second half of 1997, the two
fleet operators participating in the test (City of Newport Beach and Sunset Property Services) will
facilitate their CNG fueling at the secondary fueling site, located at Orange County Sanitation District.
An important part of this project will be to demonstrate the viability of using heavy -duty CNG - fueled
•
refuse haulers and street sweepers. This will be accomplished by a subcontractor (to be selected by an
RFP) carrying out a comprehensive 12 -month data collection program that will encompass a full range of
in -use aspects of the vehicles' operation.
The approach for the field test will be to operate the ten CNG - fueled refuse haulers and five CNG - fueled
street sweepers (listed in Attachment 3A, 2.2 and 2.3, "Equipment Purchased/Parts ", above) and at least
one control vehicle(s) that will be fueled conventionally. This approach will allow the CNG vehicles'
overall operation, emissions output and operations costs to be compared to those of the baseline vehicles.
The detailed plan, which will be developed to accommodate specific objectives of the MSRC, will address
specific data-collection parameters (i.e. driving routes, distance, fuel consumption, scheduled and
unscheduled maintenance, oil consumption, subjective evaluations by drivers and repair technicians,
etc.). The plan will call for the control vehicle(s) to have duty cycles, etc. as similar as possible to the
CNG - fueled vehicles. The data collection project will utilize the CONTRACTOR'S existing EMS/PC
fleet management/data collection software, as well as other data collection systems that may be needed.
The project manager will maintain close contact with the fleet during the demonstration to uncover
incipient problems and arrange for their resolution.
Information collected during the project will be stored in a project database and validated. As the
demonstration progresses, the data will be plotted and analyzed to observe emerging trends, and at the
same time, to screen the data for validity and quality control. Data will be analyzed in accordance with
the field test plan.
The division of labor to be performed by the Data Collection Subcontractor is further described in Labor
Category Descriptions and Hours of the Direct Labor Costs, Data Collection table in Attachment 3.
•
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4.2 Training — The CONTRACTOR will facilitate the training of all personnel, as needed, in the use,
• servicing and safety aspects of the CNG- fueled vehicles. This will include training with respect to the
data collection responsibilities and procedures of the project.
4.3 Spare Parts and Fast - Response Arrangements — The CONTRACTOR will ensure that adequate CNG-
specific spare parts and fast - response servicing capabilities are available from the respective vendors.
4.4 Data Collection — The final data collection plan will be developed jointly by the subcontractor (to be
selected by RFP) and DISTRICT staff. Certain aspects that the plan are projected to contain are
described in 4. 1, above.
4.5 Results Database — The derivation, development and eventual disposition of the results database is
described in 4. 1, above.
TASK 5 — PROJECT MANAGEMENT AND REPORTING
5.1 The 12 -month demonstration will be managed by the subcontractor that will comprehensively coordinate
and oversee all aspects of the project. This will include communicating with the MSRC, the fuel
providers and vehicle warranty providers, as well as the fleet operators of the CONTRACTOR and
Sunset Property Services. Additionally, the subcontractor will develop and monitor a master schedule for
the project to ensure timely and regular progress towards achievement of project objectives.
The CONTRACTOR will report to the DISTRICT throughout the project on a quarterly basis to include
the following: 1) work performed during the current period includeing field testing and data information;
2) work planned for the next period; 3) problems identified, solved and/or unresolved; 4) the percentage
of each task completed and; 5) any slips in the project schedule should be explained and include a
description of what steps will be taken to complete the project on time. Progress reports that do not
is comply will be returned to the CONTRACTOR as inadequate. When invoicing, supporting
documentation must be provided for both AB 2766 and co- funded expenditures.
•
A final report, following the DISTRICT format, will be prepared by the CONTRACTOR and submitted
prior to the end date of the contract.
Page 4
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STANDARD CONTRACT
ATTACHMENT 3 — Cost Schedule •
Contract No. 2766/96036
TASKS AB 2766 AMOUNT CO- FUNDING
RECEIVED
TASK 1 — Site Selection $0 $125,000
TASK 2 — Engines & Vehicles 483,000 1,500,000
TASK 3 — Refueling Facilities 0 1,270,000
TASK 4 — Field Test & Data Collection 17,000 26,000
TASK 5 — Project Mgt. & Reporting 0 40.000
TOTAL PROGRAM COSTS 5500.000 52.961.000
COST BY CATEGORY
DIRECT LABOR (Provided through co-funding)
LABOR CATEGORIES FOR
PROJECT MANAGEMENT
AND REPORTING
RATE
HRS
TOTAL •
(estimations)
Project Manager
$90.00
199
$17,910
Engineer
80.00
89
7,120
Assist. Project Manager
80.00
79
6,320
Junior Engineer
61.55
59.95
3,690
Administrative
40.00
124
4,960
TOTAL
$40,000
OTHER DIRECT COSTS
Supplies $0
Equipment 3,253,000
CNG Vehicles = $1,983,000
Clean Fuel Facility = $1,270,000
Clean Fuels Stations Entitlement Processing (Contractor) $125,000
Subcontractor, other 43.000
Subtotal Other Direct Costs $3,421,000 •
TOTAL PROGRAM COSTS 10.561,400
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STANDARD CONTRACT
ITEMIZED BREAKDOWN OF DIRECT COSTS
Contract No. AB 2766/96036
1. EQUIPMENT/PURCHASED PARTS
1.1 Clean Fuel Station (co-funded)- $1,250,000 from MESA
$20,000 from SCE
$3,253,000
The City of Newport Beach plans to assist in the development of a multi-fuel station that will provide at
least CNG and possibly methanol fuels, as well as EV recharging. Among the participants in the
Station's development will be MESA, Inc. and Southern California Edison. The proposed location for
the Station is a five -acre site at Jamboree Road and MacArthur Boulevard in the City of Newport Beach,
which is near the convergence of the 405, 55 and 73 freeways.
The Station will feature separate CNG fueling dispenser islands for light-duty vehicles and
medium/heavy-duty trucks.
1.2 City of Newport Beach - Ten refuse haulers = $1,412,000
AB 2766 - differential cost of 8413, 000 (10 vehicles @ $41,300 each)
Co funding - $999,999 (6 front loaders @ 8114,700 each and 4 rear loaders @ 877,700 each)
11.1 (6) 1996 Volvo Xpeditor WXLL64 "front loader' heavy -duty refuse haulers
• OEM dedicated CNG - fueled Cummins C8.3 engine and fuel system
• 40 diesel equivalent - gallon CNG fuel storage
• Allison MD 3560 transmission
• 40 -cubic yard residential front - loader system (Amrep)
• 58,000 lb. GVWR, including Volvo T -ride rear suspension
• Anti-lock (ABS) brake system
• Low -entry design
• Dual factory steering with right -hand stand -up steering
1.2.2 (4) 1996 Volvo Xpeditor WX42 "rear loader" heavy -duty refuse haulers
• OEM dedicated CNG - fueled Cummins C8.3 engine and fuel system
• 40 diesel equivalent - gallon CNG fuel storage
• Allison MD 3560 transmission
• 16 -cubic yard Pak -Mor R100 rear loader packer
• 37,400 lb. GVWR
• Anti -lock (ABS) brake system
• Vendor: Pacific Empire, 9700 Galena Street, Riverside, CA 92509, (909) 6815600
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1.3 Sunset Property Services street sweepers, five vehicles = $571,000
AB 1766 - a portion of incremental cost of 3 sweepers @ $20, 000 each and 2 sweepers @ $5, 000 each .
Co funding - 3 sweepers @ $127, 000 each and 2 sweepers @ $45, 000
1.3.1 (3) Tymco/GMC Model 600 street sweepers @ $147,000 each
• OEM CNG fueled 366 GMC engine and fuel system
• 50 /60- gallon equivalent CNG fuel storage
• Ford 300 OEM CNG /gasoline dual - fueled auxiliary drive engine
• 6 cubic -yard capacity bin
• 31,000 lb. GVWR
1.3.1 (2) Tymc i/Isuzu/GMC W4 Model 210 street sweepers @ $65,000 each
• OEM CNG - fueled 5.7 GMC engine and fuel system
• 3045 equivalent diesel - gallon equivalent CNG fuel storage
• Wisconsin 37 h.p. OEM CNG /gasoline dual - fueled auxiliary drive engine
• 2 cubic -yard capacity bin
• 11,000 lb. GVWR
2. Clean Fuel Entitlement Processing - $125,000
The City of Newport Beach will provide the entitlement processing for the planned Clean Fuel Station. •
Composite site plan graphics $2,000
EIR 24,000
Topographical mapping and boundary surveying 14,000
Engineering for street and site grading; street improvements
and utility infrastructure 35,000
Geotechnica181ed investigation and written report 8,000
Level 1 environmental analysis for hazardous materials 2,000
Permit processing with Federal and state agencies 10,000
Entitlement processing project management 30 000
4. SUBCONTRACTORS /CONSULTANTS - $43,000
AB 2766 funds will fund $l7, 000 ofData Collection Activity
CONTRACTOR will fund $26, 000
Rates and Hours will be submitted to DISTRICT upon selection of subcontractor.
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STANDARD CONTRACT
ATTACHMENT 4 — Schedule of Deliverables
Contract No. 2766/96036
The following items are deliverables under the contract terms:
Task
Milestones & Deliverables
Due Date from Contract
Start Date
Task 1 —Site Selection
1.1 Participating fleets
List of fleets
completed
1.2 Commitments of participation
Letters of intent from Co-
completed
Funders and participating fleets
Task 2 — Vehicles
2.1 Vehicle plan
Vehicle plan
Month 1
2.2 Vehicle delivery
Month 5 -10
2.3 Identify control vehicle(s)
Month 1
2.4 Acceptance testing
Month 5 -10
Task 3 — Refueling Facility Arrangements
and Support
3.1 Fueling plan
Fueling plan
Month 2 -3
3.2 Refueling facility development*
Fueling station in service
Month 15
3.3 Letter of agreement for fuel access
Letter of agreement
completed
Task 4 — Field Test & Data Collection*
4.1 Develop vehicle field test plan
Test plan
Month 1 -3
4.2 Training
Month 2-4
4.3 Spare parts and fast - response
Month 2 4
arrangements
4.4 Start data collection*
Month 12
4.5 Results database, execute test (12
Month 12 -24
months only)*
Task 5 — Project Management &
Reporting
5.1 Develop communication system
Month 1 -2
5.2 Monitor schedule
Month 1 -2
5.3 Reporting **
Quarterly reports
Month 3, 6, 9, 12, 15, 18,
21,24
Final report
Month 24
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Hardware — A portion of the incremental CNGcquip ment cost of the vehicles will be funded by the MSRC as a
result of this contract
(6) 1996 Volvo Xpeditor WXLL64 "front loader" heavy -duty refuse haulers
(4) 19% Volvo Xpeditor WX42 "rear loader" heavy -duty refuse haulers
(3) Tymco/GMC Model 600 street sweepers
(2) Tymco/Isuzu/GMC W4 Model 210 street sweepers
In the event the CONTRACTOR files for bankruptcy or becomes insolvent or discontinues this project, the
following items revert back to the DISTRICT for disposition into the AB 2766 Discretionary Fund account: None.
Page 9
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STANDARD CONTRACT
ATTACHMENT S — Supporting Documents
Contract No. AB 2766/96036
The supporting documents attached hereto as Attachment 5, represent obligations of the CONTRACTOR
Nothing herein shalt be construed as an assumption of duties or obligations by the DISTRICT or granting any
rights to third parties against the DISTRICT.
1. Co-Funding Documentation
1.1 Letter from the City of Newport Beach - S 1,190,000
1.2 Letter form Sunset Property Services - $501,000
1.3 Letter from MESA, Inc. - $1,250,000
1.4 Letter from Southern California Edison - $20,000
2. Purchasing Policies and Procedures
2.1 Purchasing Guidelines from the City of Newport Beach
2.2 Purchasing Guidelines from Sunset Property Services
3. Letter of Self- Insurance, City of Newport Beach
Page 10
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SENT BY:NEWPORT BEACH
July 26, 1996
. 7 -26 -96 ;12:12PM
GENERA' -- - " - - -- 714650074709 396 3735;# 1
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
Michele Stizel
Intergovernmental Affairs /AB2766
Mobile Source Air Pollution Review Committee
South Coast Air Quality Management District
21865 E. Copley Drive
Diamond Bar, CA 91765 -4182
Dear Committee Members:
The City of Newport Beach is committed to the development of its compressed
natural gas (CNG)- fueled vehicle fleet and enjoying the benefits that include
reduced emissions and competitive fuel costs.
Accordingly, the City is committed to carrying out the terms and conditions of the
contract (RFP #9596 -04) to which this letter is attached. This will include co- funding
support by the City of the below- described aspectes of the contract:
• The base cost and a portion of the CNG- incremental cost of ten refuse haulers:
approximately $999,000
• A portion of the demonstration and data collection project: approximately
$26,000
• Project management, $40,000
• Entitlement processing for the Clean Fuel Station: approximately $125,000
The City looks forward to the entire project, including the public- access multi -fuel
Clean Fuel Station and its own CNG - fueled vehicle fleet, becoming a reality at the
earliest possible time. Should Committee members have any questions regarding
the subject contract or the City's commitment to its fulfillment, please call me.
Very truly yours,
KO� V-
City Manager
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Sunset Property Services
July 30, 1996
SENT BY TELECOPY
Mobile Source Air Pollution Reduction Review Committee
South Coast Air Quality Management District
21865 East Copely Drive
Diamond Bar, CA 91765
Dear Committee Members:
Sunset Property Services is a property maintenance company located in Irvine,
California. We operate one of the largest fleets of-.CNG-equipped sweepers in the country.
With contracts throughout Southern California, our fleet of CNG vehicles travel over
75,000 miles per year.
We wish to add our support to the proposal to build and operate a new CNG fueling
station in Newport Beach. We have made a significant commitment to CNG and intend to
purchase approximately five additional dedicated CNG OEM vehicles as our business
increases. The approximate co- funded costs of the three street sweepers and two parking
lot sweepers are $127,000 per vehicle and $60,000 per vehicle, respectively. All of our
vehicles will refuel at this new station.
CNG - equipped vehicles have been well received by our clients because of their reduced
emissions and improved efficiency over conventional power sources. As we continue to
add to the size of our fleet, we must have additional refueling options in place to support
our growth. We hope that this new station will be one of many planned for Southern
California.
SinceJeI
ohn D. Howhannesian
President
33
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MESR
September 14, 1995
Mobile Source Air Pollution Review Committee
South Coast Air Quality Management District
21865 East Copely Drive
Diamond Bar, CA 91765
Dear Committee Member:
On behalf of MESA, Inc. I am pleased to be a party to the City of Newport Beach's AB2766
Proposal submitted under the South Coast Air Quality Management District's Alternative Fuels - Heavy Duty
Vehicles demonstration (RFP # 9596 -04). It is our belief that natural gas vehicles will play an integral part in
southern California achieving thaw air quality goals.
Based upon sufficient fuel usage, as guaranteed by the City of Newport Beach, MESA is prepared to
construct and operate a natural gas fueling facility at the proposed site of Jamboree & MacArthur. This
station would be fully automated 24 -hour card access, public fueling facility, and MESA would provide all
operational, maintenance, emergency response and training support to meet or exceed industry federal, state
and local standards. MESA's construction and operation experience enables us to estimate the value of our
investment toward this project to be $1.25mm.
Again, MESA is excited about the possibility of becoming the fuel provider for natural gas vehicles
at Newport Beach and would encourage South Coast Air Quality Management District approval of the
subject proposal.
Should you have any questions regarding MESA's proposal, please do not hesitate to contact me at
(214) 402 -7025.
Si�ncerel
Hal J. Powell Jr.
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September 18,1995
John Longville, Chairman
Mobile Source Air Pollution Reduction Review Committee
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765 -11182
Subject: AB 7766 Grant Application --City of Newport Beach
Dear Mayor l.ongville:
Southern California Edison is pleased to support the application of the City of
Newport Beach for AB 2766 Discretionary Funds to purchase and install a fast charging
station. Experimental products are now available that can fully charge electric vehicles
in 20 minutes to an hour depending on the charger.
Because this is one of the first installations of a rapid charging station in Southern
. California Edisons territory, Edison is willing to commit up to $10,000 in inkind
contributions to fund the actual cost of utility-side infrastructure improvements
required to install the charger at the location in Newport Beach, We are also willing to
commit anther $10,000 toward the actual cnsr of installing customer -side
infrastructure necessary for the charger. Our interest is in testing the electric system
impact of this new type of charging technology and the infrastructure to support it. As
in previous years, our commitment is contingent on the project meeting the criteria
for field testing of infrastructure in our Low Emission Vehicle Application currently
pending before the California Public Utilities Commission and on Commission
approval of our funding request Our funding does not include the cost of the actual
charges.
We are delighted to see that local agencies are taking steps to begin establishing an
electric vehicle infrastructure network Consumer studies show that this network is
necessary for the successful introduction of electric vehicles in the South Coast Air
Quality Management District. We look forward to working with the City of Newport
Beach to demonstrate this new infrastructure technology.
Sincerely,
E
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
February 1, 1996
Michele Stizel
Intergovernmental Affairs /AB 2766
South Coast Air Quality Mgmt. District
21865 East Copley Drive
Diamond Bar CA 91765
Dear Ms. Stizel:
The City of Newport Beach is self insured as respects general liability
coverage with a self insured retention (SIR) limit of $1 million dollars
and excess coverage of $10 million dollars.
The City is also self insured as respects workers compensation
coverage with a SIR limit of $300,000 and excess coverage of $1
million dollars for Employers Liability.
If you need any further information regarding this letter, please
contact me at (714) 644 -3302.
Very
Lauren F. Farley
Risk Manager
LF /trn
cc: Patty Temple, Planning Manager
3300 Newport Boulevard, Newport Beach
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CITY OF NEWPORT BEACH
Administrative Services Department
Fiscal Services Division
PURCHASING PROCEDURES
PROCEDURES ARE CONTAINED IN A SEPARATE DOCUMENT
PROVIDED UPON REQUEST.
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Sunset Property Sewlces
PURCHASING POLICY STATEMENT
tO002
Sunset Property Services utilizes several payment modes, as negotiated
with the individual vendor /contractor.
The usual terms of payment are Net 10, Net 30, 30 -60 -90 and variations
thereof.
These items are subject to agreement between Sunset Property Services
and the vendor /contractor, and may be modified as deemed necessary.
CAPITAL VEMCLE PURCHASES
Vehicles are purchased subsequent to utilizing a bidding process.
All proposals must adhere to the exact specifications promulgated by
Sunset Property Services.
Sunset Property Services reserves the right to select the most responsible
bidder.
SINGLE SOURCE PROPOSALS
GENERAL
Prior to acceptance of a "singlelsole source" proposal, the purchase must
be justified to, and approved by the President.
Examples of the "singlelsole source" procurements would be the purchase
of sweeping units from TYMCO and in the purchase of specific use
components and spare parts.
TYMCO, for example, is the "single sole source" for the sweeper unit
configuration and CNG option for which Sunset Property Services has
become so well known.
Each procurement is thoroughly staffed, in house, and judged
independently and on its own merits.
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
February 1, 1996
Michele Stizel
Intergovernmental Affairs /AB 2766
South Coast Air Quality Mgmt. District
21865 East Copley Drive
Diamond Bar CA 91765
Dear Ms. Stizel:
The City of Newport. Beach is self insured as respects general liability
coverage with a self insured retention (SIR) limit of $1 million dollars
and excess coverage of $10 million dollars.
• The City is also self insured as respects workers compensation
coverage with a SIR limit of $300,000 and excess coverage of $1
million dollars for Employers Liability.
If you need any further information regarding this letter, please
contact me at (714) 644 -3302.
Very trulyNyours,
Lauren F. Farley
Risk Manager
LF /tm
cc: Patty Temple, Planning Manager
3300 Newport Boulevard. Newport Beach 30
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Attachnent E
A5
•CITY OF NEWPORT BEACH •
REQUESTS FOR FUNDS
•
Date October 15. 1996
TO: Finance Director
FROM: General Services Director
SUBJECT: REQUEST FOR FUNDS
Request for additional funds, $ 475,532
Funds are not available in the current budget.
Additional appropriation to Account No. 6120 -9100
is requested.
Additional funds are needed for:
The purchase of ten compressed natural gas refuse vehicles. Previously,
$1,207,150 had been approved for the same purpose during FY 96 -97. The
additional funds will be replaced by AQMD grant funds later in the FY.
•
Request for transfer of funds,
Transfer from Account No. to No.
Funds are available in the current budget.
Transfer of funds is needed for:
Approved:
City Manager
Finance Director
r i
U
Department ]lead
Attachment F
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•
•
Cummins Cal Pacific, Inc.
1105 So. Greenwood Ave.
Montebello, CA 90640
(213) 728 -8111 • FAX: (213) 889 -7499
August 21, 1996
Mr. David Niederhaus
City of Newport Beach
3300 Newport Blvd.
Newport Beach, Ca. 92659 -1768
Dear Mr. Niederhaus:
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This letter is to display the type of support that is available Gone Cummins Engine Cumpany and
Cummins Cal Pacific, Inc. for the CNG engines that your city is considering for your refuse fleet.
Support areas:
Factory:
Frank Shapiro- Cummins Engine Company Alternate Fuel Engineer is in- house. Frank has been
supporting the alternate fuel Field test programs for 4 years. He has experience with every Natural
Gas product Cummins offers.
Distributor:
Our Montebello branch has two technicians that are factory trained on the Cummins Natural
Gas products. Each is outfitted with field service vehicles. Each vehicle is equipped with natural gas
diagnostic tools. Montebello branch is scheduled to train one technician before the end of the year
and will train at least two more technicians before the end of 1997.
The Montebello branch has been supporting the following fleets of Natural Gas vehicles:
Los Angeles Metropolitan Transit Authority
- 150 LIOG's delivered
- 398 to be delivered over the next two years.
Los Angeles International Airport
- 20 LNG Gillig Buses
L.A. DOT
- Supported field test of B 5.9 gas engines
Long Beach General Services
- 3 L 10G powered Crane Carrier Refuse Vehicles
Los Angeles General Services
- Taking delivery of LIOG powered Volvo White Expediter Refuse Vehicles
Irvine, CA Montebello, CA Rialto, CA El Cajon, CA
(714) 253 -6000 (213) 728 -8111 (909) 877 -0433 (619) 593 -3093
Aso
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Attachumt G
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Training Abilities:
Cummins Cal Pacific, Inc. has the ability to train technicians at our training facility, located in Irvine,
Ca. or at customer sites. The Cummins Cal Pacific Inc. instructors are certified by the Cummins
Engine Company.
We at Cummins Cal Pacific look forward to supporting all of your needs as you convert to CNG.
Sincerely,
L. Mac McElmurry
Account Manager '
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The Gas Company`'
August 19, 1996
Mr. David E. Niederhaus
General Services Director
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92659 -1768
Dear Dave:
James N. Harger
Special Projects Manager
Natural Gas Vehicles
It has been a pleasure to work with you and Kevin Murphy during the past year on
the implementation of a natural gas powered refuse fleet for the City of Newport
Beach. I am also very pleased that the South Coast Air Quality Management
District (SCAQMD) agreed to partner with the City and to provide $413,000
toward the purchase of 10 new natural gas powered refuse trucks.
The new natural gas powered vehicles will provide substantial environmental
benefits for the City's residents (e.g. reduced noise and tailpipe emissions compared
to the existing diesel fleet), but also provide the City substantial operating cost
savings because of less expensive fuel costs. More important, the City will not have
to use any of its general funds to cover the incremental natural gas vehicle costs for
the fleet or ancillary equipment.
To assist in the development and operation of the City's natural gas refuse project,
the Southern California Gas Company (SoCalGas) is pleased to provide the
following services:
Cost of Fuel - SoCalGas provides two rates that are available for the City's new
natural gas powered refuse fleet: compressed rate ($0.66 /therm or
$0.90 /equivalent diesel gallon) and uncompressed rate ($0.31 /therm or
$0.42 /equivalent diesel gallon). The compressed rate applies to sales at
SoCalGas retail stations (e.g. City of Irvine), whereas the uncompressed rate
applies to customer owned fueling facilities. For the uncompressed rate, the
customer is responsible for operating and maintenance costs associated with the
station (i.e. conservatively $0.10- $0.15 /therm). Although taxes are not included
in these costs, state fuel taxes can be avoided by buying an annual CA Use Fuel
Permit ($168 /truck/year). As you know, cities are exempt from federal fuel
taxes and natural gas is exempt from local sales tax.
Ecotrans - Our upfit and conversion center is capable of repowering existing late
model vehicles, as well as installing natural gas cylinders on new and existing
vehicles. Ron Smith, Ecotrans General Manager, is currently negotiating with
Southern Caraame
Gas Company
555W. FY%&,, et
[nsnngeles. CA
90013 -1011
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0 s
•
Volvo /GM to become their west coast cylinder installer for refuse trucks and
other heavy -duty equipment. Ecotrans has upfitted thousands of vehicles since
opening for business more than two years ago. I know you have visited our
facility and will be pleased with their customer services support.
Mobile Source Emission Reduction Credits (MSERCs) - Lauren Dunlap and I
can assist the City in its effort to apply to the SCAQMD to generate MSERCs
for the emission reductions resulting from replacing the older diesel trucks with
clean burning natural gas trucks. MSERCs may also be used to offset Rideshare
programs the City is currently operating (the degree of offset depends on your
City - specific Rideshare requirements). Specifically, we can provide guidance
throughout the application process and set up appropriate SCAQMD staff
contacts. This could also include preparing an Air Quality Investment Program
(AQIP) proposal to the SCAQMD to apply for additional grant funds to support
additional vehicle purchases.
Turnkey Station Construction - SoCalGas can provide the necessary services to
design, permit and construct the facilities necessary for time - filling the new
refuse fleet as previously discussed. If the City agrees to pursue this option,
SoCalGas will be happy to submit a proposal for your consideration. •
• Customer Services Support - SoCalGas has both vehicle and station specialists
that will be available to the City on an ongoing basis. Their expertise will be
invaluable to the City for trouble shooting and making recommendations.
Again, I look forward to working with you and the entire team involved in this
project. If you should have any questions, please do not hesitate to call.
Sincerely,
��
i
jnh
1
5-a-
C�tv of Newport Beacto NO. BA- 015
BUDGET AMENDMENT
1996 -97 AMOUNT: $475,532.00
EEFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
Increase Budget 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 purchase ten compressed natural gas refuse vehicles to be reimbursed
by AQMD grant funds later in the FY
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Accoun
Internal Svc Fund 610 3605
NUEAPPROPRIATIONS (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Description
Fund Balance Control
Description
Signed:
Director
Administrative 4pro al: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$475,532.00
Automatic
$475,532.00
io -ice s�
Date
/D Z3"
Date
Date
4 --
Description
Division
Number
6120 Equipment Maintenance - Purchase
Account
Number
9100 Rolling Equipment
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Director
Administrative 4pro al: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$475,532.00
Automatic
$475,532.00
io -ice s�
Date
/D Z3"
Date
Date
4 --
0
Mobile Source
Air Pollution Reduction
Review Committee
November 13, 1996
Kevin Murphy
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92658
Dear Mr. Murphy:
Enclosed is a fully executed AB 2766 contract for your records. The contract number
is AB 27661196036. Please include your contract number on ALL correspondence sent to
the DISTRICT when referencing this project. Please address all correspondence to:
IGA/AB 2766
South Coast Air Quality Management District (SCAQMD)
21865 East Copley Drive
Diamond Bar, California 91765
(909) 396 -3479
Fax: (909) 396 -3682
Attn: Doris Moore
Included with this letter are the policies and procedures for the progress reports and
invoices you will be submitting during the contract term. Samples of progress reports,
invoices, a final report format, and contract scope changes and extensions are also
provided.
Progress reports should contain all pertinent information related to contract performance
during the period being reported on. A more in -depth description of progress report
requirements is enclosed. Progress reports are used to evaluate the overall performance of
the project and as a tool for determining if any MSRC action needs to be taken due to
problems or delays. If for some reason you may find that you need to extend the term of
the contract or have a change in the scope of the project, it is very important that you
record this in your progress reports and notify us immediately.
Funds are dispersed on a cost - reimbursement basis. Supporting documentation on
individual charges in excess of $250 is required on both AB 2766 and co funding
expenditures. Invoices should be submitted in duplicate.
21865 East Copley Drive Diamond Bar California 91765 909/396 -2479 or 396 -3043 fax 909/396 -3682
L7
Any contract modifications must be submitted to the AB 2766 Contract Administration
staff in writing. The procedure for presenting your request to the Mobile Source Air
Pollution Reduction Review Committee (MSRC) takes about six weeks to process. The
request will be presented to the following committees:
• Scope Change Subcommittee for evaluation and recommendation (s);
• MSRC -TAC, the Technical Advisory Committee (TAC) makes a recommendation to
the MSRC and;
• The MSRC will grant final approval or disapproval of the request.
I hope that the information in this package will answer most of your questions. Please
feel free to call us to discuss any problems or concerns you may have.
Sincerely,
Doris oore
Contracts and Financial Analyst
AB 276611995 -1997 Work Program
r
INDEMNITY AGREEMENT
0 e- 0123 <i3-)
This Agreement is entered into this /a-f- day of 1996 between the
CITY OF NEWPORT BEACH, a California municipal corporation and charter city
(hereinafter referred to as "City "), whose address is 3300 Newport Boulevard, Newport
Beach, California 92659 and SUNSET PROPERTY SERVICES, a limited liability
corporation (hereinafter referred to as "Sunset ") whose address is 16251 Construction
Circle West, Irvine, California 92714. This Agreement is entered into with regard to the
following:
RECITALS
A. City is considering entering into an agreement with the South Coast Air
Quality Management District (hereinafter referred to as "District ") identified as contract
number AB2766196036 for receipt of AB2677 funding for the deployment of ten (10)
heavy duty municipal refuse trucks and five (5) commercial street sweepers, all of which
will be powered by original equipment manufacturer compressed natural gas engines
and fuel systems, (hereinafter referred to as the "CNG Vehicle Agreement ").
B. Under the terms of the CNG Vehicle Agreement both City and Sunset will
receive funds from District and participate in the purchase, maintenance and use of
compressed natural gas fueled vehicles. City will operate the ten (10) municipal refuse
trucks and Sunset will operate the five (5) commercial street sweepers. As a condition of
receipt of the stated funding and participation in the purchase of the compressed natural
gas fueled vehicles, City, as contractor, is obligated to comply with all terms and
conditions of the CNG Vehicle Agreement including those obligations and conditions
relating to Sunset, and Sunset's operation of the street sweeping vehicles. City made the
application for funding, and must enter into a contract with the District based in part upon
on Sunset's agreement to participate in and comply with the terms and conditions of the
CNG Vehicle Agreement. Sunset has reviewed and understands all terms and conditions
of the CNG Vehicle Agreement.
NOW THEREFORE in consideration of Sunset's receipt of funding under the CNG
Vehicle Agreement and participation in the program, Sunset and City agree as follows:
1. City agrees to assume all project management, data collection and
reporting responsibility required by the CNG Vehicle Agreement.
2. Sunset shall cooperate with City and assist City in providing all required
reports, documentation or other information required under the terms and conditions of
the CNG Vehicle Agreement which relate to Sunset's purchase, maintenance and
operation of the five (5) commercial street sweepers.
3. Sunset shall comply with all applicable terms and conditions contained in
the CNG Vehicle Agreement and all attachments thereto.
0
4. (a) Sunset shall hold harmless, defend and indemnify City, its officers,
employees, agents, representatives and successors in interest against any
and all loss, damage, cost or expense which City, its officers, employees,
agents, and representatives may be required to pay by reason of
any injury or property damage caused or incurred by Sunset, its employees,
subcontractors, or agents in the performance of the CNG Vehicle
Agreement.
(b) Sunset shall hold harmless, defend and indemnify City against any
and all loss, damage, cost or expense which City may be required
to pay by reason of Sunset's default, or failure to perform any obligation, or
term or condition required to be performed by Sunset under the CNG
Vehicle Agreement. Sunset's indemnification under this subsection (b) shall
be limited to the amounts received by Sunset under the CNG Vehicle
Agreement.
5. Sunset represents that it maintains general and commercial liability,
automobile insurance sufficient to cover all its operations and services provided under the
CNG Vehicle Agreement, and will maintain worker's compensation to the extent required
by law. Sunset agrees to provide City with certificates evidencing such coverage and
maintain all such certificates evidencing uninterrupted insurance coverage for the duration
of the CNG Vehicle Agreement.
6. The rights granted and obligations undertaken by Sunset under this
Agreement and the CNG Vehicle Agreement may not be assigned, sold, licensed or
otherwise transferred without the written consent of City and District, any attempt to do so
shall be void upon inception.
WHEREAS, the parties have executed this Agreement and agree to its terms and
conditions as follows.
Approved As To Form:
I.
f catkLds%agrtindemnity.doc 10 -30-96
Sunset Property Services, LLC
Jofkb. HoWiannesian
City of Newport Beach
2
Polices and Procedures ..... (continued)
(Page 1)
Progress Reports and Final Report
Please refer to Attachment 4 - Schedule of Deliverables of your contract to determine
if you are required to submit monthly or quarterly reports. Quarterly reports are used
for contracts with a long lead time, for example, buying vehicles or the conversion of
vehicles. This basically covers the Alternative Fuels categories which includes Public
Transit Fleets, School Bus Fleets, and Fleet Acquisitions. Monthly reporting will be used
in the Rail Feeder and Transportation Control Measures (TCM) categories. Exception to
the monthly reporting rule may be considered if contract milestones are not triggered for
a long length of time.
Progress reports will contain specific information related to the performance of your
project. A spreadsheet is used to track the timely submission of progress reports and is
submitted to the MSRC -TAC and the MSRC for their review on a monthly basis.
Failure to provide the required documentation of progress will delay the payment of any
invoices that are submitted on the contract and can result in termination of your
contract. Included in this package is the Policy to Terminate Contracts Due to Lack of
Progress/Response by Contractors. Please read this policy carefully.
The following paragraphs, regarding progress reports, are included in the boilerplate
language of the standard contract.
Paragraph 10 - Report Format
CONTRACTOR shall submit reports to DISTRICT as outlined in Attachment 2 -
Statement of Work and Attachment 4 - Schedule of Deliverables expressly incorporated
herein by this reference and made a part hereof of this Contract. All reports shall be
submitted in the following manner: recycled paper: stapled, not bound, black and white,
double -sided print, and no three ring, spiral, or plastic binders or cardstock covers.
DISTRICT reserves the right to review, comment, and request changes to any report
produced as a result of this Contract.
Paragraph 4 - Services (sections B and C)
B. CONTRACTOR shall submit monthly progress reports to DISTRICT within
fifteen (15) days of the end of the reporting period. Such reports shall detail: 1)
work performed during the current reporting period, 2) work planned for the next
reporting period, 3) problems identified, solved, and/or unresolved, and 4) the percentage
of each task completed and, 5) a cost breakdown by cost category for each task showing
both the amount of AB 2766 funds expended and co funding expended for the reporting
period and the cumulative period to date (see sample attachment).
1,
Polices and Procedures ..... (continued)
(Page 2)
C. CONTRACTOR shall provide DISTRICT with a comprehensive final report prior to
end of contract term. The final report shall be subject to review by the MSRC AB 2766
Technical Consultant and approval by MSRC. The final report shall be complete, on
letter -size paper, and include illustrations and graphs, as appropriate, to document the
work performed and the results thereof under this Contract. The final report will also
contain, in detail, the reduction of mobile source air pollution emissions resulting from
the project's implementations (see sample attachment).
Invoicing
The procedures for invoicing and payment are also written in the standard contract as
follozos:
Paragraph 9 - Payment
A. DISTRICT shall pay CONTRACTOR up to a sum of $500,000 in accordance with
Attachment 3 - cost Schedule, expressly incorporated herein by this reference and made a
part hereof of this Contract. Payment of such compensation shall be made by DISTRICT
to CONTRACTOR within thirty (30) days after approval by DISTRICT of an itemized
invoice prepared and furnished by CONTRACTOR, referencing the task completed or a
percent of work accomplished and detailing line item expenditures as listed in
Attachment 3, Cost by Category, and the amount of charge claimed.
B. Total costs per task and costs by category, as listed in Attachment 3 - Cost Schedule
are estimates. Reallocation of costs between tasks and/or cost elements (cost by category)
is permitted tip to a total cumulative limit of Five Thousand Dollars ($5,000). Written
notification of this reallocation must be submitted to the DISTRICT. Amounts in excess
of $5,000 require a Contract amendment in writing. (An amendment to the Contract is
contingent upon approval by the MSRC.)
C. An invoice submitted to DISTRICT for payment must be prepared in
duplicate, on company letterhead, and list DISTRICT's contract number, period covered
by invoice, and CONTRACTOR'S social security number or Employer Identification
Number and submitted to:
IGA/AB 2766
South Coast Air Quality Management District (SCAQMD)
21865 East Copley Drive
Diamond Bar, California 91765
Attn: Doris Moore
Polices and Procedures ..... (continued)
(Page 3)
E. An amount equal to ten percent (10 %) shall be withheld from each invoice paid.
Upon MSRC approval of the final report, the CONTRACTOR shall then invoice for the
10% withhold. The 10% retention will only be released upon receipt of an invoice.
The DISTRICT'S payment of invoices shall be subject to the following
limitations and requirements:
• Labor - Costs invoiced to DISTRICT must be listed by rate, number of hours, and
professional category and must be in conformance with those set forth in Attachment
3 - Cost Schedule, Costs by Category.
• Equipment, Material, Supply Costs, Subcontractors and Other Charges -
Costs must be itemized by CONTRACTOR. Supporting documentation must be
provided on all AB 2766 expenditures (in excess of $250) and co- funding
expenditures. CONTRACTOR'S failure to provide receipts shall be grounds for
DISTRICT'S nonpayment of such charges. DISTRICT may reduce payments on
invoices by those charges for which receipts were not provided (see sample
attachment).
7
I
Mobile Sai;,ce
Air Poilirtior7
Review Committee
Policy To Terminate Contracts Due to Lack of progress
or Response by Contractors
Background: The Consultant /Advisor has experienced continuous delays in receiving progress
reports and in some cases a total lack of response by Contractors in response to both written
and verbal contacts regarding the Contractor's project.
The intent of this policy is to discourage contractors from failing to provide documentation of
progress being made on the AB 2766 Discretionary Fund projects. It is the intent of the
MSRC to ensure that work is completed pursuant to the work statement set forth in the
respective contracts. In the event that progress is not made without adequate justification by
the Contractor and subsequent approval by the MSRC, then the MSRC will recommend that
the contract be terminated so that funds may be reallocated to other projects.
Therefore, the following policy is proposed:
If within a period of thirty (30) days, the Contractor fails to submit progress reports as
required by the contract, the following shall occur:
The Consultant/Advisor will notify the Contractor in writing of the delinquency and
request that the progress report be submitted to the Consultant/Advisor within five (5) days of
written notice.
If the Contractor fails to submit a progress report for the second consecutive month,
the Consultant/Advisor shall send a second written notice indicating that the two previous
progress reports are due, that they must be submitted within fifteen (15) days of this notice,
and if the Contractor does not respond within the allotted time, then his/her conduct if the
monthly progress reports are submitted in such an inconsistent and sporadic fashion as to
indicate a lack of compliance with this contract provision (e.g., progress report submitted one
month, skipping several months thereafter).
After the second written notification by the Consultant/Advisor, the District's
Contracts Manager shall provide written notice to the Contractor to cure the delinquency
within fifteen (15) days of the date of the notice or be subject to termination within thirty (30)
days.
In addition, if a contract is terminated as a result of this policy, the direct contractor
involved will not be eligible to apply for AB 2766 Discretionary Funds for two program years.
Adopted 3/73/44
Mobile Sourc °e
Air Pollutior7
Review Committee=
POLICY ON CONTRACT SCOPE CHANGES AND EXTENSIONS
1. Contract extensions or scope changes may be requested on AB 2766
Discretionary Fund contracts. Contractors should submit requests in writing to the
Contract Administrator's office. Reasons for the request should be well
documented by the Contractor. The Contract Administrator will present the
requests to both the MSRC -TAC and the MSRC for consideration and approval.
Contract extensions and scope changes must be submitted by the first Tuesday of
the month to be considered by the MSRC -TAC and MSRC for that month.
Requests received after the first Tuesday of the month will be considered at the
following month's MSRC -TAC and MSRC meetings. Late extension requests for
contracts expiring prior to the following month's MSRC -TAC meeting, must include
a discussion of the compelling reasons for the untimely submission of the request.
Such requests will be considered on a case -by -case basis by the MSRC - TAC.
2. Extension requests and scope changes will be considered by the MSRC -TAC
and MSRC on a case -by -case basis. If a contract extension or scope change is for
the contractor's convenience, the MSRC shall have the discretion to request a
downward adjustment in the contract price, an additional task, an additional report
or seek other legal consideration as a condition of granting the extension or scope
change. Situations defined as convenience are problems or delays caused by
internal management or administration, for example, failure to submit progress
reports or final reports in a timely manner, failure to aggressively monitor the
project, and extensions merely to exhaust unexpended funds.
A delay due to problems with the delivery or manufacturing of equipment or
vehicles and circumstances beyond the control of the contractors will not be
considered as changes for the contractor's convenience. Documentation of delays
will be required.
Any contract changes made without prior approval of the MSRC will be at
the contractor's own risk. If the MSRC does not approve the change, the contractor
will not be reimbursed for any costs incurred as a result of the unapproved change.
3. The contractor is responsible for properly monitoring the project and should
notify the Contract Administrator immediately if the Contractor feels the project is
in jeopardy of falling behind schedule or problems arise.
4. Requests for extensions must be received in writing by the Contract
Administrator 60 days prior to the close of the contract. The approval process for
contract extensions and scope changes takes approximately six weeks. If a request
is made within 60 days of the end date of the contract, the contract may expire prior
to review and approval of the request. If this situation occurs, the contractor must
stop work until the time extension is approved. In the event the extension is not
approved the contractor must consider the end date of the contract firm and may
not bill for work done after this date.
Adopted May 25,1995
(a:sapolrev.doc)
r?
a
i.
M
Michele Stitzel
AB2766 Contract Liaison
SCAOMD /IGA
21865 E. Copley Drive
Diamond Bar. CA 91765
Invoice Number. _
Period Covered: 4/23/94 - 9/23194
Project No. 89
Contract No A62766/C.; .
Employer ID No. 95- 6000735
TASK #
TASK DESCRIPTION
% COMPLETE
(AS OF
9/30/94)
CHARGES
THIS
PERIOD
1
Project Management (100% Grant Funded)
98%
6,892.35
2
Analysis of Test Protocols (100% Grant Funded)
100%
0.00
3
Test Site Selection (100% Grant Funded)
100%
-79.82
4
Socioeconomic /Compliance Surveys
(100% Grant Funded)
100%
11,520.50
4 -1
Emissions Test Implementation
(100% Grant Funded)
100%
12,611.19
5
Voucher System (100% Grant Funded)
100%
0.00
6
Public Outreach (100% Grant Funded)
98%
0.00
7
Data Analysis (100% Grant Funded)
98%
17,280.13
8
Evaluation /Feasibility Study
(100% Grant Funded)
85%
9
Data Compilation {100% Matching Funds)
100%
0.00
10
Diagnostic and Repair Followup
(74% Grant, 26% Matching)
80%
0.00
TOTALS (all costs are for subcontractor charges)
48,224.35
TOTAL DOLLAR AMOUNT OF THIS INVOICE
co-jundwg
DISTRICT
SHARE
0.00
6,692.35
0.00
0.00
0.00
-79.82
0.00
11,520.50
0.001 12,611.19
e
M, ,� ' W,
o ll r r�
0.001 _48,224.35
48,224.35
NOTE: Please add two additional columns showing hours
worked and hourly rate.
r
February 1, 1995
TO: Ms. Michele Stitzel
AB2766 Contract Liaison
FROM:
RE: AB2766 Contract C0033
PERIOD: 1/1/95 - 1/31/95
DIRECT LABOR
Executive Director
Admin. Assistant
EXPENSES
Supplies
Phone
Postage /Delivery
Copying
Travel
Subcontractors
,esea:inv2766 113195
li
0
Invoice No. 11
HOURS RATE
2.80 $168.50
0.00 $ 46.77
Subtotal Direct Labor
Subtotal Expenses
TOTAL DUE THIS INVOICE...
AMOUNT
$ 471.80
0.00
$ 471.80
0.00
0.00
0.00
4.18
25.80
0.00
$ 29.98
$ 501.78
i
/O
�j CONTRACTOR NAME
CONTRACT#
MONTHLY PROGRESS REPORT
Period Covering 9 -1 -93 through 9 -30 -93
Section 1: Summary of major accomplishments and emissions reductions to date
Quantifiable data on emissions reductions will not be available until after
the results of the first mid -point survey are processed (mid -point survey
for the Ritz - Carlton scheduled for mid -June, 1994.)
Section 2: Work performed during this reporting period, by task and percentage
TASK # of each task completed
3.5 Procurement administration
Purchased all required system hardware and software for two current test
sites.
Percentage completed this reporting period: 70%
Percentage complete: 100%*
3.6 Prepare for and monitor equipment installation
Completed installation of debit card and parldng access equipment at Art
Center and Ritz Carlton test sites. Registered and distributed debit cards
to participating employees at Ritz Carlton and Art Center test sites.
Percentage completed this reporting period: 80%
Percentage complete: 100%*
4.1 Orient employers and others
Provided information on the project to three (3) interested worksites. In
each case, the site decided not to pursue the project.
Percentage completed this reporting period:
Percentage complete:
5170
75%
4.4 Disseminate information
Presented program to Art Center and Ritz Carlton employees. Held
orientation meetings on equipment operation for Art Center and Ritz
Carlton staff.
Percentage completed this reporting period: 70%
Percentage complete: 9090"
it
4.5 Ongoing administration of project set up
■ Given delays in launching the program at the Art Center and Ritz -
Carlton test sites, re- confirmed participation of matching, control
group sites.
■ Resolved all site design issues for the Ritz Carlton test site.
■ Revised and finalized pricing scheme for Ritz Carlton.
Transportation Allowance set at $20.00 per month with employee
parking costing $1.00 per day (essentially a break even program.)
■ Worked with Ritz Carlton staff to prepare for March 15, 1994
program launch.
■ Continued negotiations with Art Center staff to (1) develop a
pricing scheme that meets the test site's need to reduce demand for
parking while adequately complying with the Congestion Pricing
Project's objectives and (2) assign responsibilities for on -site
program management/administration among staff.
Percentage completed this reporting period: 80%
Percentage complete: 80%*
* given only two test sites and two control sites
Section III: Key problems identified, solved and/or unresolved
■ has experienced difficulty in holding test sites to the details
of their original commitments to the program. While both
confirmed test sites still intend to proceed with the program,
staffing changes and reductions have led to confusion over roles
and responsibilities for on -site administration/management of the
program.
■ In addition, both sites have revised their original transportation
allowance/parking pricing scheme (towards a lowering of the
burden on employees.) This has raised issues related to
conformity with the project's objectives, in particular, that the
pricing scheme give employees daily flexibility to choose commute
modes. In the case of the Ritz Carlton, these issues have been
resolved and the program is scheduled to launch, March 15, 1994.
continues to work with the Art Center to develop a pricing
scheme that is acceptable to both parties as well as to ensure that
the program is properly administered at the site level.
■ Previous recruiting drives covering wide areas of Los Angeles
County have thus far failed to result in securing additional test
sites. Not wishing to incur cost overruns in this task area,
refrained from active recruiting during this time period and
y,
0
0
focused instead on implementing the program at the two confirmed
test sites.
■ project manager, was on a leave of absence
from November 10, 1993 through March 14, 1994.
Section IV: Work planned in the next reporting period
■ Program set up: Schedule meeting with senior
management at Art Center test site to
resolve program administration/
pricing issues and clear the way for
project launch.
■ Program monitoring: Monitor and assist with program
launch and implementation at Ritz
Carlton test site.
■ Project outreach: In view of the lack of additional test
sites, develop a set of suggested
directions for the project including
new recruitment strategies as well as
an option to implement the program
only at the two confirmed test sites
while at the same time shifting the
emphasis of the project's evaluation
component towards a greater
emphasis on acceptance, of the
program by employers, building
owners, employees, etc.
For additional information on items contained wittin this reporr, "please contact
Mobile Source.
Air Pollution Reducei:
Review Committee
Final Report Format for AB 2766 Discretionary Fund Contracts
Each page of the report must be legible and suitable for photo reproduction. Use single
or one and one -half spacing. Do not double or triple space. All pages shall be of
standard size (&12 x 11). The title page should be numbered consecutively. Photo
reduction is not acceptable for tables or figures; these should be presented on
consecutive 8112 x 11 pages with each page containing one portion of the larger chart.
Color presentations are acceptable, printing should be in black. Do not include
corporate identification on any page of the Final Report, except on the title page. The
Final Report and any Appendices must be bound
Format details are as follows:
Title Pare - Include contract number, project title, contractor organization, and date,
and include the statement: "Prepared for the Mobile Sources Air Pollution Review
Committee (MSRC) under the AB 2766 Discretionary Fund Work Program.
Abstract - The abstract shall indicate the purpose and scope of the work undertaken, the
work performed, results obtained, and conclusions. The abstract must provide a short
discussion of the emissions benefits (with numerical benefits) of this contract compared
to the benefits contemplated in the proposal. The purpose of the abstract is to provide
the reader with useful information and with a means of determining whether the complete
document should be included for study. A brief statement should indicate whether this
project has developed or retained jobs. Because of the subsequent processing of
abstracts for bibliographic purposes, avoid usage of non - English or special characters
and inferior or superior figures (subscripts, formulas, etc.). The length of the abstract
should be about 200 words.
Acknowledgements - Only this section shall contain acknowledgments of key personnel
and organizations who were associated with the project. the last paragraph shall be as
follows: "This report was submitted in fulfillment of AB 27661 (contract
number) and (project title) by (contractor organization) under the (partial) sponsorship
of the Mobile Sources Air Pollution Reduction Review Committee (MSRC). Work was
completed as of (date) ".
Ll
Disclaimer -The following statement is to appear near the front of the report:
"The statement and conclusions in this report are those of the contractor and not
necessarily those of the Mobile Sources Air Pollution Review Committee or the South
Coast Air Quality Management District The mention of commercial products, their
sources or their uses in connection with material reported herein is not to be construed
as either an actual or implied endorsement of such products. "
Table of Contents
List of Figures - This is an optional item where there are fewer than five illustrations.
List of Tables - This is an optional item where there are fewer than five tables.
Summary and Conclusions - This is an important part of the report It is one of the
sections that will be read most frequently. This section should begin with the statement
of what was done and why, and how it was done. Major results of the study should then
be presented using clear, concise statements. A discussion must be included describing
the emissions benefits derived from this contract. This must include quantitative benefits
not simply a qualitative statement that benefits were achieved.
Recommendations - Use clear, concise statements to state recommended future actions
and further study that may be required.
Body of Report
a) Scope, purpose and background of the project, description of the various phases of
the project, theoretical approach to the solution of the problem and the limitations to
the work.
b) Design, construction, operations or evaluation phase or experimental phase,
materials, equipment, instrumentation and methodology, including data and results.
c) Discussion - detailed description and analysis of the work performed during the
course of the project that led to the conclusions. Identify innovations or development
of new techniques or processes. Include a discussion of how this project provided job
development or retention and whether products leading from this project will create
new jobs. Where, appropriate, include a discussion of cost projections and economic
analyses.
d) Emissions Benefits - detailed description of the benefits proposed compared with the
benefits achieved by this project. This section must be quantified to include
pollutants reduced, trips reduced, etc., so that the reader may determine the air
quality benefits of this project.
Procedures - Explain/describe the experimental procedure used to conduct the project.
Discuss successes and failures. The purpose of this section is to allow a subsequent
project to benefit from both your successes and failures.
References - Use consistent references which are full citations to work referenced
throughout the report and references to closely related work, background material, and
publications which offer additional information on aspects of the work. An option of the
author is to list these at the end of the chapter with citation, or list together in a separate
section following the body of the report.
List of Inventions Reported and Published - If any inventions have been reported, or
any publications or pending publications have been produced as a result of the project,
list the titles, authors, journals or magazines, dates of publication and identifying
numbers which will assist in locating such information in this section.
Glossary of Terms, Abbreviations and Symbols - When more than five of these items are
used in the text of the report, prepare a listing of all with explanations and definitions.
Every abbreviation and symbol will always be defined on its first appearance in the
report with a parenthesized symbol The total count of employed symbols and
abbreviations in the report text does not consider entries in tables or callouts and legends
in figures which should be self - contained. Measurements in the reports will be expressed
in metric units; however, for the convenience of engineers and other scientists
accustomed to using the British System of units, the values may be given in British units
as well in parentheses after the value in metric units. The expression of measurements by
both systems is especially encouraged for engineering reports.
Appendices - Related or additional material too bulky or detailed to include within the
discussion portion of the report shall be placed in appendices. The appendices shall be
made a part of the report, with consecutive page numbers. If the appendices are too
large for inclusions in the report, they shall be collated, and bound, as a separate
document with separate page numbers. The Contractor shall determine how appendices
are to be included in the Final Report. If a report has more than one appendix, each is
to be designated with a capital letter and page numbers are still continuations of the
body of the report.
(A :F,.&f.m)
/A,i11994)
(Revixdlwnary 1995)
/6
Sample - Co- Funning
Submit Co- Funding Documentation on (your) Company Letterhead
Include the following.
Date :
To: Name of Prime Contractor
Contact Person
Address
Subject: AB 2766 Contract Number
Co-Funding Documentation Invoice
Billing Period: Specify the billing period
Include task number
Specify if co-funding is for In -kind contribution, direct labor
hours, materials,data collection, advertising, service and
maintenance
DIRECT LABOR
Director 2
Task 2
$50.00
$100.00
4
Task 3
$50.00
$200.00
Support Staff 1
Task 2
$30.00
$30.00
4
Task 3
$30.00
$120.00
Total Direct Labor
Task 2
$30.00
$450.00
IN -KIND SERVICES
Chamber Director
1 1/2
Task 2
$75.00
$75.00
ETCs (6)
112 hr
Task 2
$35.00
$105.00
BODs (12)
1/2
Task 2
$100/00
$600.00
Staff Support
2
Task 2
$30.00
$50.00
Meeting Room
2
Task 3
$85.00
$170.00
Meeting Participants(19)
1
Task 3
$50.00
$950 00
Total In -kind services
$1.960.00
Total Due this invoice
17
Proposal No.4 -6 Contract No. AB2766196036
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
STANDARD CONTRACT
PARTIES - The parties to this Contract are the South Coast Air Quality Management District (hereinafter referred
to as "DISTRICT") whose address is 21865 Copley Drive, Diamond Bar, California 91765, and City of Newport
Beach (hereinafter referred to as "CONTRACTOR") whose address is 3300 Newport Boulevard, Newport Beach,
CA 92658.
2. RECITALS
A. DISTRICT is the local agency with primary responsibility for regulating stationary source air pollution in the
South Coast Air Basin in the State of California (State). DISTRICT 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 DISTRICTS 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 DISTRICT.
C. AB 2766 further mandates that thirty (30) percent of such vehicle registration fees be placed by DISTRICT
into a separate account for the sole purpose of implementing and monitoring programs to reduce air pollution
from motor vehicles.
D. AB 2768 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
DISTRICTS Governing Board, DISTRICT Board authorized a contract with CONTRACTOR for services
described in Attachment 2 - Work Statement, expressly incorporated herein by this reference and made a part
hereof of this Contract. CONTRACTOR warrants that it is well qualified, experienced, and has the expertise to
provide such services on the terms set forth here.
3. TERMS AND CONDITIONS OF PERFORMANCE
A. CONTRACTOR acknowledges that DISTRICT cannot guarantee the amount of fee to be collected under
AB2766 will be sufficient to fund this Contract. CONTRACTOR further acknowledges that DISTRICTS receipts of
funds is contingent on the timely remittance by State's DMV. DISTRICT assumes no responsibility for the
collection and remittance of motor vehicle registration fees by DMV to DISTRICT in a timely manner.
B. For cofunded projects, CONTRACTOR shall obtain sufficient monies (cofunding) to fund the total cost of the
project, as outlined in Attachment 2 - Work Statement and Attachment 5 - Supporting Documents expressly
incorporated herein by this reference and made a part hereof of this Contract. Satisfactory written evidence of
such funding commitments shall be provided to DISTRICT prior to the release of DISTRICTS contribution under
this Contract.
C. In the event funding from other sources for the total cost of the project, as outlined in Paragraph 3B, is not
received within the stipulated time, or fee revenues are not made available to DISTRICT by DMV, DISTRICT
reserves the right to terminate or renegotiate this Contract as set forth in Paragraph 6 below, entitled Termination.
D. CONTRACTOR shall submit all reports and deliverables listed in Attachment 2 - Work Statement and
invoices for payment to DISTRICT. DISTRICT will coordinate any program review it performs through
CONTRACTOR'S program staff. If an amount is found to be inappropriately expended as a result of any review
by DISTRICT, DISTRICT may withhold revenue from CONTRACTOR in the amount equal to the amount which
was inappropriately expended. Such withholding shall not be construed as DISTRICTS sole remedy and shall not
relieve CONTRACTOR of its obligation to perform under the terms of this Contract.
E. 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 DISTRICT 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. DISTRICT shall coordinate such audit through CONTRACTOR'S
audit staff. If an amount is found to be inappropriately expended, DISTRICT may withhold revenue from
CONTRACTOR in the amount equal to the amount which was inappropriately expended. Such withholding shall
/e
not be construed as DISTRICTS sole remedy and shall not relieve CONTRACTOR of its obligation to perform
under the terms of this Contract.
F. CONTRACTOR shall provide DISTRICT with CONTRACTOR'S bid process and documentation if a bid
process is required to expend the funds provided to CONTRACTOR under the terms of this contract. These
documents will be included in Attachment 5 - Supporting Documents.
4. SERVICES
A. CONTRACTOR agrees to furnish all labor, materials, equipment, required licenses, permits, fees, and other
appropriate legal authorization from all applicable federal, state, and local jurisdictions necessary to perform and
complete, per schedule, in a professional manner, the services described herein.
B. CONTRACTOR shall submit quarterly progress reports to DISTRICT within fifteen (15) days of the end of the
reporting period. Such reports shall detail: 1) work performed during the current reporting period; 2) work planned
for the next reporting period; 3) problems identified, solved, and /or unresolved; 4) the percentage of each task
completed; 5) any slips in the project schedule should be explained and include a description of what steps will be
taken to complete the project on time. Progress reports that do not comply will be returned to CONTRACTOR as
inadequate; and 6) a cost breakdown by cost category for each task showing both the amount of AB2766 funds
expended and co-funding expended for the reporting period and the cumulative period to date..
C. CONTRACTOR shall provide DISTRICT with a comprehensive final report prior to end of contract term. The
final report shall be subject to review by the MSRC and approval by DISTRICT. The final report shall be
complete, on letter -size paper, and include illustrations and graphs, as appropriate, to document the work
performed and the results thereof under this Contract. The final report will also contain, in detail, the reduction of
mobile source air pollution emissions resulting from the project's implementation.
5. TERM - The term of this Contract is for twenty -four (24) months from the date first entered hereon, unless
terminated earlier as provided for in Paragraph 6 below entitled Temnination, extended by amendment of this
Contract in writing or unless a final report is submitted and approved by DISTRICT prior to the twenty -four (24)
month time period. 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.
6. 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 2 - Work Statement, 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 Paragraph 13 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. DISTRICT reserves the right to terminate this Contract for
nonbreach and will reimburse CONTRACTOR for actual costs incurred in performance of this Contract through
the effective date of termination for nonbreach.
INSURANCE - CONTRACTOR is permissibly self - insured and will maintain self- insurance in accordance with
applicable provisions of California law as evidenced by certificate of self - insurance in Attachment 5, herein.
CONTRACTOR shall maintain such coverage during the term of this Contract and any extensions thereof. If
CONTRACTOR fails to maintain the required insurance coverage, DISTRICT 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.
8. INDEMNIFICATION - CONTRACTOR agrees to hold harmless, defend, and indemnify DISTRICT, its officers,
employees, agents, representatives, and successors-in- interest against any and all loss, damage, cost, or
expenses which DISTRICT, 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.
9. PAYMENT
A. DISTRICT shall reimburse CONTRACTOR up to a total amount of Five Hundred Thousand Dollars ($500,000)
in accordance with Attachment 3 - Cost Schedule, expressly incorporated herein by this reference and made a
part hereof of this Contract. Any funds not expended upon early contract termination or contract completion shall
revert to the AB2766 Discretionary Fund. Payment of charges shall be made by DISTRICT to CONTRACTOR
-9
within thirty (30) days after approval by DISTRICT of an itemized invoice prepared and furnished by
CONTRACTOR, referencing the task completed or a percent of work accomplished and detailing line item
expenditures as listed in Attachment 3, Costs by Category, and the amount of charge claimed.
B. Total costs per task and costs by category, as listed in Attachment 3 - Cost Schedule, are estimates.
Reallocation of costs between tasks and /or cost elements (cost by category) is permitted up to a total cumulative
limit of Five Thousand Dollars ($5,000). Written notification of this reallocation must be submitted to DISTRICT.
Amounts in excess of $5,000 require a Contract amendment in writing.
C. An invoice submitted to DISTRICT for payment must be prepared in duplicate, on company letterbead, and list
DISTRICTS 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 East
Copley Drive, Diamond Bar, CA 91765. Attn: Michele Stitzel.
D. DISTRICT'S payment of invoices shall be subject to the following limitations and requirements:
1) Charges for equipment, material, and supply costs, travel expenses, subcontractors, and other charges, as
applicable, must be itemized by CONTRACTOR. Reimbursement for equipment, material, supplies,
subcontractors, and other charges shall be made at actual cost. Supporting documentation must be provided for
all individual charges (with the exception of direct labor charges provided by CONTRACTOR) in excess of Two
Hundred and Fifty Dollars ($250).
ii) CONTRACTOR'S failure to provide receipts shall be grounds for DISTRICT'S non - reimbursement of such
charges. DISTRICT may reduce payments on invoices by those charges for which receipts were not provided.
E. DISTRICT shall pay CONTRACTOR for travel- related expenses only if such travel is expressly set forth in
Attachment 3 - Cost Schedule of this Contract or pre - authorized by DISTRICT in writing.
F. An amount equal to ten percent (10 %) shall be withheld from each invoice paid. Upon satisfactory completion
and final acceptance of work and the final report by DISTRICT, CONTRACTOR'S invoice for the 10% withheld
will be released. The total amount for which DISTRICT may be held liable for the performance of work specified
herein, including any authorized travel - related expenses and other direct charges, shall not exceed Five Hundred
Thousand Dollars ($500,000).
10. REPORT FORMAT - CONTRACTOR shall submit reports to DISTRICT as outlined in Attachment 2 - Work
Statement and Attachment 4 - Schedule of Deliverables expressly incorporated herein by this reference and
made a part hereof of this Contract. All reports shall be submitted in the following manner. recycled paper,
stapled, not bound; black and white, double -sided print; and no three -ring, spiral, or plastic binders or cardstock
covers. DISTRICT reserves the right to review, comment, and request changes to any report produced as a
result of this Contract.
11. EMISSION REDUCTION CREDITS (ERCs)
A. The MSRC has adopted a policy that no ERCs may be generated and sold as a result of AB 2766 funding.
B. CONTRACTOR has the opportunity to generate ERCs as a by- product of the project. These ERCs, which are
issued by DISTRICT, are based upon the quantified vehicle miles traveled (VMT) by project vehicles. Therefore,
a portion of prospective ERCs, generated as a result of MSRC funding, 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 - ERCs."
C. The determination of AB 2766 -ERC's is to be prorated based upon the AB 2766 program's contribution to the
overall cost. Determination of the projects overall cost will be on a case by case basis at the time an ERC
application is submitted. DISTRICT staff, at the time an ERC application is submitted, will calculate total ERCs
and then retire the AB 2766 -ERCs. CONTRACTOR would then receive the balance of the ERCs not associated
with AB 2766 funding.
12. ADDITIONAL PROVISIONS - Attachment 1 - Contract Provisions (three pages) to this Contract contains
additional provisions which are expressly incorporated herein by this reference and made a part hereof as though
fully set forth at this point.
13. 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.
of U
0
DISTRICT: South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765
Attn: Michele Stitzel
CONTRACTOR: City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658
Attn: Kevin Murphy
•
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
c
By:
J D. ikels, Chairman of the Board
Date: //` 9— ?c
ATTEST:
Jackie Dix, Clerk of the Board
B.
APPROVED AS TO FORM:
Peter Greenwald, District Counsel
CITY OF NEWPORT BEACH
By:
By:
Date: %/�7 46
APPRO 0 R
t
City Attorney ..
A� J
STANDARD CONTRACT
ATTACHMENT 1 - Contract Provisions
Contract No. AB2766/96036
CONTRACTOR'S REPRESENTATION - CONTRACTOR represents that CONTRACTOR has the expertise necessary to adequately per form
the servicea specified in Attachment 2 -Work Statement. DISTRICT Is entering into this Contract based on CONTRACTOR'S expertise.
EMPLOYEES OF CONTRACTOR
A. CONTRACTOR warrants that he will employ no subcontractor without written approval from DISTRICT. CONTRACTOR shall be
responsible for the cost of regular pay to his employees, as well as coal 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 his employes and shall maintain workers' compensation and lied ty
Insurance for each of Its employees.
C. CONTRACTOR, Its officers, employees, agents, or representatives shall in no sense be considered employees or agents of DISTRICT, nor
shall CONTRACTOR, Its ofNcers, employees, agents, or representatives be entitled to or eligible to participate in any benefits, prNNeges, or plans,
given or extended by DISTRICT to its employees.
D. CONTRACTOR warrants that it has no interest and shall not acquire any interest, direct or Inckect, which would conflict in arty 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.
111. CONFIDENTIALITY - it is expresely understood and agreed that the information which either CONTRACTOR or DISTRICT designates as
confidential or proprietary Information must be clearly identified as such by means of restrictive stamp, legend, or ma". With reaped to such
designated Information the parties agree to:
A. Observe complete confidentiality with respect to such Information, including without limitation, agreeing not to disclose or otherwise permit
access to such information by any otter person or antiy in any manner whatsoever, except that such disclosure or scene shall be permitted to
employees and subcontractors of either party requiring access in fulfillment of the services provided under this Contract. Such Information may be
used by ether party as Wows:
1) only be used, duplicated and/or disclosed by the receiving party solely for the purposes of performance Oder thb Contract and for no otter
purpose whatsoever; and
N) net be used, duplicated and/or disclosed by the receiving party for any other purpose wtatsoew, including, without Uniting the generality of
the foregoing, for manufacture or procurement except as may be specifically granted under Paragraph V, below aMltled - Ownership; and
fii) not be duplicated, reproduced or copied, in whale or in part, unless the sending parties restrictive legend or marking is prominently displayed
on said copy or reproduction.
B. Oral or visual communications, Identified by either party at the time of disclosure as confidential or proprietary Infomation, &hell be protected
by the receiving party according to the terms hereof, provided that the disclosing party confirms In writing to the receiving party the confidential or
proprietary nature of said ammunica0on within ten (10) calendar days of said oral or visual disclosure.
C. Neither party shall be Rabb to the other party in any manner whatsoever for the use, duplication and/or disclosure of any part of the
confidential or proprietary information which is:
not Identified as confidential or proprietary Information in accordance with paragraph III (basic) and subparagraph B hereof, (am and except
for any Claims arising through Infringement of registered patents owned or controlled by the disclosing party), or
ii) now or hereinafter cones into the pudic domain without breach of this Contract, or
RI) shown by the receiving party to be previou* I mown to, or developed by it, prior to the disclosure of said confider" or proprietary
informallon, or
Iv) shown by the receiving party to have been received from a third party without similar restrictions and wkhat breach of thb Contract, or
v) disclosed without restrictions by the sending party to a third party, or
vi) used, duplicated or disclosed by the receiving party five (5) years or more after the disclosure of such confidential or proprietary information.
D. Both parties hereby covenant and agree to provide to each ether thirty (30) calendar days prior written notice before use and/or disclosure Is
node of oonfkW tial or proprietary information, protected according to the terms hereof, based upon the exceptions contained In Sections (l)
through (vi) of subparagraph C. atone and as may be specifically granted under Paragraph V, below entttbd - Ownership.
E. All confidential or proprietary information disclosed hereunder shall remain the properly of the disclosing party and all origksls and copies of
said confidential or proprietary Information shall be returned promptly to the disclosing party upon the expiration or termination of this Contract,
excepting any reports provided to DISTRICT by CONTRACTOR Including the final report beowne the property of DISTRICT in perpetuity and after
five (5) yeas tins may be used, duplicated or disclosed without any restrictions.
F. Other than those rights and privileges granted expressly herein, neither the execution and delivery of this Contract, nor the delivery of any
confidential or proprietary Infomation hereunder, shall be construed as granting either expressly, or by Implication, estoppel or otherwise, any right
In or Rcerse undo any present or future confidential or proprietary information disclosed under tits Contract, or under any Invention of patent now
or thereafter owned or controW by either Party except as maybe specifically granted order paragraph V, below entitled - Ownership.
1az
G. Each party shelf notify promptly and In writing of the circumstances surrounding any possession, me, or knowledge of such Information or
any part thereof by any person or entity other than those authorized by this paragraph.
H. Take at CONTRACTOR'S expense, but at DISTRICTS option and in any event ur ter DISTRICTS control, arry "ai action necessary to
prevent unauthorized use of such Information by any third party or entity which has gained access to such Information at best In part due to the
fault of CONTRACTOR.
I. Take at DISTRICTS expense, but at CONTRACTOR'S option and In any event under CONTRACTOR'S control, any legal action necessary
to prevent unauthorized use of such Information by any third party or entity which has gained access to such Information at best in part due to the
fault of DISTRICT.
J. Notwithstanding the above, nothing herein is intended to abrogate or modify the provisions of Government Code Section 6250 et.seq. (Public
Records Act).
IV. PUBLICATION
A. Information, data, documents, or reports developed by CONTRACTOR for DISTRICT, pursuant to this Contract, shall be part of
DISTRICT'S pudic record excepting data provided under Paragraph III above, entitled Confidmtlailty. CONTRACTOR may use or
publish, at its own expense, such information provided to DISTRICT. The following aeknowledgmerA of support and disclaimer mud
appear In each document disseminated, whether copyrighted or not, and based upon the work performed under this Contract.
'This report was prepared as a result of work sponsored by the South Coast Alt quality Management District (DISTRICT). The
opinions, findings, conclusions, and recommendations are those of the author and do not necessarily represent the views of
DISTRICT. DISTRICT, Its officers, employees, contractors, and subcontractors make no warranty, expressed or implied, and
assume no legal liability for the information in this report DISTRICT has not approved or disapproved this report nor has
DISTRICT passed upon the accuracy or adequacy of the information contained herein.'
D. CONTRACTOR shall Inform its officers, employees, and subcontractors Involved in the performance of this Contract of the
restrictions contained herein and require conpllance with the above publication terms.
C. DISTRICT shall have the right of prior written approval of any document which shall be disseminated to the pudic by
CONTRACTOR in which CONTRACTOR utilized Information obtained from DISTRICT In connection with performance under tbls
Contract.
V. OWNERSHIP - The and full ownership rights to any products purchased or developed under this Contract shall at all tines remain with
CONTRACTOR. CONTRACTOR shall also retain the and full ownership rights to any documents or reports developed under this Contract All
of the above shag be subject to the following limitations:
A. PATENT RIGHTS - CONTRACTOR shall have patent rights, as well as title and full ownership rights, for I nvaMion($) developed
under this contract, subject to DISTRICT retaining a no-cost, nonexclusive, nontransferable, irrevocable license to use or test such
Invention(s) for DISTRICT purposes. CONTRACTOR must obtain agreements to effectuate this clause with all persons or entities
obtaining an ownership Interest in the patented subject Invention(s). Previously documented (whather patented or unpsterded under
the patent laws of the United States, 36U.S.C. 7 at seq., or any foreign country) Inventions are exempt from this provision.
CONTRACTOR shall subNt a written report to DISTRICTS Agent disclosing each subject invention and specifying patents applied
for, patents issued, and patent application(s) abandoned andfor cosponsored participants on subject Inventlon(s).
B. RIGHTS OF TECHNICAL DATA - DISTRICT shall have unlimited right to use technical data resulting from performance of
CONTRACTOR under this Contract. CONTRACTOR shall have the right to use data for Its own benefit
C. COPYRIGHT - CONTRACTOR agrees to grant DISTRICT a royalty free, nonexclusive, irrevocable, nontransferable license to
produce, translate, publish, use, and dispose of all copyrightable material first produced or composed In the performance of ids
Contract.
D. SOFTWARE RIGHTS - CONTRACTOR agrees to grant DISTRICT a worldwide, royalty free, nonexclusive, Irrevocable, nontransferable
license In perpetuity to use any software developed by CONTRACTOR In performing Its obligations under this Contract. CONTRACTOR further
agrees to obtain the rights required from any third party for DISTRICT to have a worldwide, royally free, nonexclusive, irrevocable goense In
perpetuity to use any other software essential to performance of CONTRACTOR'S obligations under this Contract or necessary to the operation of
the software developed by CONTRACTOR. CONTRACTOR shall provide DISTRICT with documentation confirming CONTRACTOR'S right to
assign the use of such software. CONTRACTOR shall also provide DISTRICT with all documentation and manuals required to operate the
software developed by it or third parties.
E. CONTRACTOR'S INSOLVENCY OR BANKRUPTCY, or PROJECTS DISCONTINUATION - CONTRACTOR epees that In the event
that CONTRACTOR becomes Insolvent or files for bankruptcy during the term of the Contract or does not compere the Intent of the project and
maintain its Intention for a o9nimum period of one year beyond the tens of this Contract, title to goods, services software, and equipment purchased
for the performance of this Contract with AB 2766 Discretionary Funds shall revert back to the DISTRICT far deposit Into the DISTRICTS
sepande account for the purpose of continuation of implementing and monitoring programs to reduce sir pollution from motor vehicles. Public
agencies and schools are exempt from this clause with the following exception: If any project discontinues or is riot maintained for one year after the
term of this Contract, assets purchased by AS 2766 Discretionary Funds shall revert to the DISTRICT for deposit into the DISTRICTS separate
account for the purpose of continuation of Implementing and monitoring programs to reduce alt pollution from motor vehicles.
s
•
VI. NON -DISCRIMINATION - In the performance of this Contract, CONTRACTOR shall net dkcrknMmte In recruiting, hiring, proration, demotion, or
termination practices on the basis of race, religious creed, color, national origin, ancestry, erne, age, or physical handicap aid shall comply with the
provisions of the California Fair Empbyrtent & Housing Ad (Government Code Section 12900, tLM.), the Federal Civil Rights Act of 1964 (P.L.
85,152) and all amendments thereto, Executive Order No. 11246 (30 Federal Register 12319), and all administrative rules and regulations issued
pursued to said Ads and Order. CONTRACTOR shall likewise require each subcontractor to coney with this paragraph and shall irakrde In
each such subcontract language sknilar to this paragraph.
VII. SOLICITATION OF EMPLOYEES - CONTRACTOR expressly agrees that CONTRACTOR shall rat, during the tern of this Contract, nor for a
period of six months altar termination, solicit for employment, wrattar as an employee or irdeperdent contractor, any person who is or has been
employed by the DISTRICT during the term of this Contract without the Consent of DISTRICT.
VIII. PROPERTY AND SECURITY - Without limiting CONTRACTOR'S obligations with regard to security, CONTRACTOR &hall compby with all the
rules and regulations established by DISTRICT for access to and acIJv ty in and around DISTRICTS premises.
IX. ASSIGNMENT - The rights granted hereby may not be assigned, sold, licensed, or otherwise transferred by either party wI&W the written consent
of the other, and any attempt by either party to do so shall be void upon Inception.
X. NON- EFFECT OF WAIVER - CONTRACTOR'S or DISTRICTS failure to insist upon the performance of any or all of the terms, covenants, or
conditions of thk Contract, or failure to exercise any rights or remedies hereunder, shall not be construed as a waiver or regrqubhwnent of the
future performance of any such terms, Covenants, or conditions, or of the future exercise of such rights or remedies. unless otherwise provided for
herein.
XI. ATTORNEYS' FEES - In the event any action (inxAuding arbitration) Is filed in connection with the enforcerterd or interpretation of this Coribad,
each party In said action shall pay Its own attorneys' fees and costs.
XII. FORCE MAJEURE - Neither DISTRICT nor CONTRACTOR shall be liable or deemed to be In default for any delay or faikae In performance
under this Contract or interruption of serviCea resulting, directly or Indirectly, from ads of God, civil or military authority, acts of public a army, war,
strikes, labor disputes, shortages of suitable parts, materials, labor or transportation, or any similar cause beyond the reasonable control of
DISTRICT or CONTRACTOR.
XIII. 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 net ailed any other provisions of this Contract, and the Contract shall then be
construed as H such unenforceable provisions are net a part hereof.
XIV. HEADINGS - Headings on the paragraphs 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.
XV. DUPLICATE EXECUTION - This Contract Is executed in duplicate. Each signed copy shag have the force and effect of an original.
XVI. GOVERNING LAW - This Contact shall be construed and interpreted and the legal relations Created thereby stall be determined in accordance
with the laws of the State of California. Venue for resolution of any dispute shall be Loa Angeles County, Caldomia.
XVIL PRECONTRACT COSTS —Any coats Incurred by Contractor prior to District 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 District shell be liable for any amounts
expended in anticipation of a formal Contract. If a formal Contract does result, preeordrad cost expenditures authorized by the Contract will be
reimbursed in accordance with the coat schedule and payment provision of the Contract.
XVIII. ENTIRE CONTRACT - This Contract represents the entire agreement between the parties hereto related to CONTRACTOR providing services to
DISTRICT and there are no understandings, representations, or warardiea of any ldnd except as expressly set forth herein. No wavier, akewlbn,
or modification of any of the provision herein shag be binding on any party unless in writing and signed by the party against whom enforcement of
such wavier, alteration, or modification Is sought.
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ATTACHMENT 2 — STATEMENT OF WORK
CITY OF NEWPORT BEACH
hereinafter referred to as CONTRACTOR
Contract Number AB 2766/96036
PROJECT PURPOSE
The purpose of this demonstration project is to facilitate the deployment of ten heavy -duty municipal refuse trucks
and five commercial street sweepers, all of which will be powered by original equipment manufacture (OEM)
compressed natural gas (CNG) engines and fuel systems.
The primary benefit of this deployment will be a significant reduction in NOx and other emissions, as well as to
demonstrate the viability of CNG - fueled vehicles in such fleet applications.
The viability of the CNG fleets will be verified during a 12 -month data collection program that will address many
aspects of the vehicles' operation, ranging from fueling and maintenance costs to usability and reliability
evaluations. Parallel data will also be collected from at least one appropriate conventionally fueled control
vehicle(s).
Funding for the project will come from a variety of sources. Co- funding for the project will come from: the
CONTRACTOR (base cost of refuse haulers, portion of incremental -CNG cost of refuse haulers, certain station
development costs, project management and a portion of demonstration and data collection project); Sunset
Properties (base cost of street sweepers). The Mobile Source Air Pollution Reduction Review Committee (MSRC)
will fund the majority of the incremental cost of the 15 vehicles' CNG - related components and equipment, as well
as a portion of the data collection program.
EMISSIONS BENEFITS
Annual NOx Emission Reductions = 9,493 lbs.
The following Statement of Work is provided by the CONTRACTOR and becomes an integral part of the Contract.
CONTRACTOR agrees to perform the Statement of Work within the terms of the Contract and to expend funds as
set forth in Attachment 3 - Cost Schedule.
STATEMENT OF WORK
The following Tasks• will be performed by the CONTRACTOR:
TASK 1 — SITE SELECTION
1.1 Confirm Fleets' Participation — CONTRACTOR has confirmed that two fleets will participate in the
project.
1.1.1 The CONTRACTOR will participate in the project by purchasing and operating ten CNG - fueled refuse
trucks. Contact information for the CONTRACTOR'S vehicle fleet operations is the General Services
Director, City of Newport Beach, Post Office Box 1768, Newport Beach, CA 92659 -1768, (714) 644-
3055, fax (714) 650 -0747. The geographic area the vehicles will operate ranges throughout the City of
Newport Beach, as well as portions of the City of Stanton.
0 0
1.1.2 Sunset Property Services will purchase and operate five CNG- fueled street sweepers. Contact information
for the firm's vehicle fleet operations is John D. Howhannesian, President, Sunset Property Services,
16251 Construction Circle West, Irvine, CA 92714, (714) 551 -5151, fax (714) 551 -4371. The geographic
area the vehicles will serve includes all of Orange County and portions of Los Angeles and Riverside
Counties.
1.2 Commitments of Participation — CONTRACTOR has confirmed participation from the entities that will be
providing co- funding. Such confirmations are contained in letters of commitment from each entity that is
providing co- funding. The letters, which include the dollar values of the respective co- funding amounts,
are included herein as part of Attachment 5.
TASK 2 — VEHICLES
2.1 Vehicle Plan — Emission - certification status of engines to be put into service.
2.1.1 Four of the ten CNG - fueled refuse haulers that the CONTRACTOR will place in service as a result of this
project will utilize the Cummins C8.3 engines and six will utilize the Cummins L10 -300G. Further, the
CNG systems and components on all of the vehicles will be original equipment manufactured (OEM).
2.1.2.1 Three of the CNG - fueled street sweepers that Sunset Property Services will place in service as a result of
this project will utilize the GMC 366 cubic -inch engine. Further, the CNG systems and components on all
of the vehicles will be OEM. As the 1995 model -year version of the GMC 366 cubic -inch engine is
certified by CARB to conventional standards, it is anticipated that the 1996 model -year version of the
engine will also be so certified within the next six months and in advance of the vehicles' delivery.
2.1.2.2 Two of the CNG - fueled street sweepers that Sunset Property Services will place in service as a result of
this project will utilize the medium -duty truck variant of the GMC 5.7 -liter engine. Further, the CNG
systems and components on the vehicles will be OEM. As the 1995 model -year version of the engine is
certified by CARB to conventional standards, it is anticipated that the 1996 model -year version of the
engine will also be so certified within the next six months and in advance of the vehicles' delivery.
2.2 Vehicle Delivery
2.2.1 The CONTRACTOR will prepare specifications for the ten CNG - fueled waste haulers that will be
released for competitive bid, in accordance with the City's Purchasing Procedures (see Attachment 5).
2.2.2 Sunset Property Services will procure the five CNG - fueled street sweepers in accordance with their
Purchasing Policy Statement (see Attachment 5).
2.3 Identification of Control Vehicles — Upon initiation of program, appropriate conventionally fueled control
vehicles will be identified by the CONTRACTOR.
2.4 Acceptance Testing — The CONTRACTOR, in conjunction with the Subcontractor (see Task 4.1), will
carry out acceptance testing of OEM vehicles preceding their delivery. This will include verification that
bid specifications have been met, quality of manufacture is acceptable, as well as certain performance and
functionality testing.
TASK 3 — REFUELING FACILITY ARRANGEMENTS AND SUPPORT
3.1 Fueling Plan — A detailed fueling plan will be submitted within the first three month of the contract's
inception. The basis for this plan is a CNG fueling facility that will be built within the CONTRACTOR's
vehicle maintenance yard at 592 Superior, Newport Beach, CA. The facility will be a "time -fill" design
that will allow the ten waste haulers to fuel over night. The facility is expected to cost $70,000 and will
be funded entirely by the CONTRACTOR's subvention funds.
The five street sweepers to be operated by Sunset Properties will utilize various existing CNG fueling
facilities in Los Angeles County and Orange County.
TASK 4 — FIELD TEST AND DATA COLLECTION
4.1. Vehicle Field Test Plan - An important part of this project will be to demonstrate the viability of using
heavy -duty CNG - fueled refuse haulers and street sweepers. This will be accomplished by a subcontractor
(to be selected by an RFP) carrying out a comprehensive 12 -month data collection program that will
encompass a full range of in -use aspects of the vehicles' operation.
The approach for the field test will be to operate the ten CNG - fueled refuse haulers and five CNG - fueled
street sweepers (listed in Attachment 3A, 2.2 and 2.3, `Equipment Purchased/Parts ", above) and at least
one control vehicle(s) that will be fueled conventionally. This approach will allow the CNG vehicles'
overall operation, emissions output and operations costs to be compared to those of the baseline vehicles.
The detailed plan, which will be developed to accommodate specific objectives of the MSRC, will address
specific data - collection parameters (i.e. driving routes, distance, fuel consumption, scheduled and
unscheduled maintenance, oil consumption, subjective evaluations by drivers and repair technicians, etc.).
The plan will call for the control vehicle(s) to have duty cycles, etc. as similar as possible to the CNG -
fueled vehicles. The data collection project will utilize the CONTRACTOR'S existing EMS/PC fleet
managementidata collection software, as well as other data collection systems that may be needed.
The project manager will maintain close contact with the fleet during the demonstration to uncover
incipient problems and arrange for their resolution.
Information collected during the project will be stored in a project database and validated. As the
demonstration progresses, the data will be plotted and analyzed to observe emerging trends, and at the
same time, to screen the data for validity and quality control. Data will be analyzed in accordance with
the field test plan.
The division of labor to be performed by the Data Collection Subcontractor is further described in Labor
Category Descriptions and Hours of the Direct Labor Costs, Data Collection table in Attachment 3.
4.2 Training — The CONTRACTOR will facilitate the training of all personnel, as needed, in the use,
servicing and safety aspects of the CNG - fueled vehicles. This will include training with respect to the
data collection responsibilities and procedures of the project.
4.3 Spare Parts and Fast - Response Arrangements — The CONTRACTOR will ensure that adequate CNG -
specific spare parts and fast - response servicing capabilities are available from the respective vendors.
4.4 Data Collection — The final data collection plan will be developed jointly by the subcontractor (to be
selected by RFP) and DISTRICT staff. Certain aspects that the plan are projected to contain are described
in 4.1, above.
45 Results Database — The derivation, development and eventual disposition of the results database is
described in 4. 1, above.
TASK 5 — PROJECT MANAGEMENT AND REPORTING
5.1 The 12 -month demonstration will be managed by the subcontractor that will comprehensively coordinate
and oversee all aspects of the project. This will include communicating with the MSRC, the fuel
providers and vehicle warranty providers, as well as the fleet operators of the CONTRACTOR and Sunset
Property Services. Additionally, the subcontractor will develop and monitor a master schedule for the
project to ensure timely and regular progress towards achievement of project objectives.
Page 3
0
The CONTRACTOR will report to the DISTRICT throughout the project on a quarterly basis to include
the following: 1) work performed during the current period includeing field testing and data information;
2) work planned for the next period; 3) problems identified, solved and/or unresolved; 4) the percentage
of each task completed and; 5) any slips in the project schedule should be explained and include a
description of what steps will be taken to complete the project on time. Progress reports that do not
comply will be returned to the CONTRACTOR as inadequate. When invoicing, supporting
documentation must be provided for both AB 2766 and co- funded expenditures.
A final report, following the DISTRICT format, will be prepared by the CONTRACTOR and submitted
prior to the end date of the contract.
h {j
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STANDARD CONTRACT
ATTACHMENT 3 — Cost Schedule
Contract Number 2766/96036
TASKS
RATE
AB 2766 FUNDING
TASK 1
— Site Selection
$0
TASK 2
— Engines & Vehicles
483,000
TASK 3
— Refueling Facilities
0
TASK 4
— Field Test & Data Collection
17,000
TASK 5
— Project Mgt. & Reporting
0
TOTAL PROGRAM COSTS
14111,.1 tl CN:V Y_I[eZ�l:114
DIRECT LABOR (Provided through co- funding)
LABOR CATEGORIES FOR
PROJECT MANAGEMENT
CO- FUNDING
$0
1,523,094
70,000
26,000
40.000
$1.659.094
AND REPORTING
RATE
HRS
TOTAL
(estimations)
Project Manager
$90.00
199
$17,910
Engineer
80.00
89
7,120
Assist. Project Manager
80.00
79
6,320
Junior Engineer
61.55
59.95
3,690
Administrative
40.00
124
4.960
TOTAL
$40,000
11". 104 14MMIX"AL013 V
Supplies $0
Equipment 2,076,094
CNG Vehicles = $2,006,094
In -yard Fuel Facility = $70,000
Subcontractor, other 43.000
Subtotal Other Direct Costs $2,119,094
TOTAL PROGRAM COSTS X159.094
Page 5
STANDARD CONTRACT
ITEMIZED BREAKDOWN OF DIRECT COSTS
Contract Number AB 2766/96036
1. EQUIPMENT/PURCHASED PARTS $2,076,094
1.1 In -yard Fueling Facility $70,000
The City of Newport Beach will be developing its own CNG fueling facility that will be dedicated to
fueling its 10 CNG - fueled waste haulers. The facility will be built within the City's Corporate vehicle -
maintenance yard at 592 Superior, Newport Beach. The facility will provide "time -fill" CNG fueling for
the waste haulers during the time in which the vehicles are parked, usually over night, within the yard.
1.2 City of Newport Beach - Ten refuse haulers = $1,435,094
AB 2766 - differential cost of $413,000 (10 vehicles @ $41,300 each)
Co funding - S1,022,094 (6 front loaders @ $118,649 each and 4 rear loaders @ $77,500 each)
1.2.1 (6) 1996 Volvo Xpeditor WXLL64 "front loader" heavy -duty refuse haulers
• OEM dedicated CNG - fueled Cummins L10 -30OG engine and fuel system
• 40 diesel equivalent - gallon CNG fuel storage
• Allison MD 3560 transmission
• 40 -cubic yard residential front - loader system (Amrep)
• 58,000 lb. GV WR, including Volvo T -ride rear suspension
• Anti -lock (ABS) brake system
• Low -entry design
• Dual factory steering with right -hand stand -up steering
1.2.2 (4) 1996 Volvo Xpeditor WX42 "rear loader" heavy -duty refuse haulers
• OEM dedicated CNG - fueled Cummins C8.3 engine and fuel system
• 40 diesel equivalent - gallon CNG fuel storage
• Allison MD 3560 transmission
• 16 -cubic yard Pak -Mor R100 rear loader packer
• 37,400 lb. GVWR
• Anti -lock (ABS) brake system
1.3 Sunset Property Services street sweepers, five vehicles = $571,000
AB 2766 - a portion of incremental cost of 3 sweepers @ $20, 000 each and 2 sweepers @ $5, 000 each
Co funding - 3 sweepers @ $127, 000 each and 2 sweepers @ $60, 000
1.3.1 (3) Tymco /GMC Model 600 street sweepers @ $147,000 each
• OEM CNG fueled 366 GMC engine and fuel system
• 50/60- gallon equivalent CNG fuel storage
• Ford 300 OEM CNG /gasoline dual - fueled auxiliary drive engine
• 6 cubic -yard capacity bin
• 31,000 lb. GVWR
1.3.2 (2) Tymco /Isuzu/GMC W4 Model 210 street sweepers @ $65,000 each
• OEM CNG - fueled 5.7 GMC engine and fuel system
• 30 -45 equivalent diesel - gallon equivalent CNG fuel storage
• Wisconsin 37 h.p. OEM CNG /gasoline dual - fueled auxiliary drive engine
• 2 cubic -yard capacity bin
• 11,000 lb. GVWR
2. SUBCONTRACTORS /CONSULTANTS - $43,000
AB 2766 funds will fund $17,000 of Data Collection Activity
CONTRACTOR will fund $26, 000
Rates and Hours will be submitted to DISTRICT upon selection of subcontractor.
Jf
STANDARD CONTRACT
ATTACHMENT 4 — Schedule of Deliverables
Contract Number 2766/96036
The following items are deliverables under the contract terms:
Task
Milestones & Deliverables
Due Date from Contract
Start Date
Task 1 —Site Selection
1.1 Participating fleets
List of fleets
completed
1.2 Commitments of participation
Letters of intent from Co- Funders
completed
and participating fleets
Task 2 — Vehicles
2.1 Vehicle plan
Vehicle plan
Month 1
2.2 Vehicle delivery
Month 4 -6
2.3 Identify control vehicle(s)
Month 1
2.4 Acceptance testing
Month 5 -10
Task 3 — Refueling Facility Arrangements
and Support
3.1 Fueling plan
Fueling plan
Month 2 -3
3.2 Refueling facility development
Fueling station in service
Month 5
3.3 Letter of agreement for fuel access
Letter of agreement
completed
Task 4 — Field Test & Data Collection
4.1 Develop vehicle field test plan
Test plan
Month 1 -3
4.2 Training
Month 2 -4
4.3 Spare parts and fast - response
Month 2 -4
arrangements
4.4 Start data collection
Month 6
4.5 Results database, execute test (12
Month 6 -18
months only)
Task 5 — Project Management & Reporting
5.1 Develop communication system
Month 1 -2
5.2 Monitor schedule
Month 1 -2
5.3 Reporting
Quarterly reports
Month 3, 6, 9, 12, 15, 18,
Final report
Month 18
Page 8
•
Hardware — A portion of the incremental CNG -equip ment cost of the vehicles will be funded by the MSRC as a
result of this contract
(6) 1996 Volvo Xpeditor WXLL64 "front loader" heavy -duty refuse haulers
(4) 1996 Volvo Xpeditor WX42 "rear loader" heavy -duty refuse haulers
(3) Tymco /GMC Model 600 street sweepers
(2) Tymco /Isuzu/GMC W4 Model 210 street sweepers
In the event the CONTRACTOR files for bankruptcy or becomes insolvent or discontinues this project, the
following items revert back to the DISTRICT for disposition into the AB 2766 Discretionary Fund account: None.
Page 9
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STANDARD CONTRACT
ATTACHMENT 5 — Supporting Documents
Contract Number AB 2766/96036
The supporting documents attached hereto as Attachment 5, represent obligations of the CONTRACTOR. Nothing
herein shall be construed as an assumption of duties or obligations by the DISTRICT or granting any rights to third
parties against the DISTRICT.
1. Co- Funding Documentation
1.1 Letter from the City of Newport Beach - $1,092,094
1.2 Letter form Sunset Property Services - $501,000
2. Purchasing Policies and Procedures
2.1 Purchasing Guidelines from the City of Newport Beach
2.2 Purchasing Guidelines from Sunset Property Services
3. Letter of Self- Insurance, City of Newport Beach
10 i
SENT BY:}NEWPORT BEACH 7- 6 -96 t12:12PA 7 •GENERA'. ' "-71g65ee7a708 395 3735
July 26, 1996
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH. CA 92658-8915
Michele Stizel
Intergovernmental Affairs /AB2766
Mobile Source Air Pollution Review Committee
South Coast Air Quality Management District
21865 E. Copley Drive
Diamond Bar, CA 91765 -4182
Dear Committee Members:
The City of Newport Beach is committed to the development of its compressed
natural gas (CNG)- fueled vehicle fleet and enjoying the benefits that include
reduced emissions and competitive fuel costs.
Accordingly, the City is committed to carrying out the terms and conditions of the
contract (RFP #9596 -04) to which this letter is attached. This will include co- funding
support by the City of the below - described aspectes of the contract:
• The base cost and a portion of the CNG- incremental cost of ten refuse haulers:
approximately $999,000
• A portion of the demonstration and data collection project: approximately
$26,000
• Project management, $40,000
• Entitlement processing for the Clean Fuel Station: approximately $125,000
The City looks forward to the entire project, including the public- access multi -fuel
Clean Fuel Station and its own CNG - fueled vehicle fleet, becoming a reality at the
earliest possible time. Should Committee members have any questions regarding
the subject contract or the City's commitment to its fulfillment, please call me.
Very truly yours,
M 11
City Manager
Post -IC Fax Note 7671
oaL�7 Qlo a• °peed I
Ta -
Fivm M
oaJDeFL AZ1MD
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Phone a
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Fax 0lp- 31 & -37 5
",4. -ii
3300 Newport Boulevard, Newport Beach
# 1
Setting the Standard
Since 1967
Orange County
16251 Conslmclion
:irde West
'ruin. CAWWI 44t2
714)551 -5151
'7141551-4371 FAX
Inland Empire
1600 Chicago Avenue
Suite R 12
-livetside. CA 92507
600)286711 I
14:31 V714 551 4.
SUNSET
4551 4371 la 002
Sunset Property Services
July 30, 1996
SENT BY TELECOPY
Mobile Source Air Pollution Reduction Review Committee
South Coast Air Quality Management District
21865 East Copely Drive
Diamond Bar, CA 91765
Dear Committee Members:
Sunset Property Services is a property maintenance company located in Irvine,
California. We operate one of the largest fleets of-CNG-equipped sweepers in the country.
With contracts throughout Southern California, our fleet of CNG vehicles travel over
75,000 miles per year.
We wish to add our support to the proposal to build and operate a new CNG fueling
station in Newport Beach. We have made a significant commitment to CNG and intend to
purchase approximately five additional dedicated CNG OEM vehicles as our business
increases. The approximate co- funded costs of the three street sweepers and two parking
lot sweepers are $127,000 per vehicle and $60,000 per vehicle, respectively. All of our
vehicles will refuel at this new station.
CNG - equipped vehicles have been well received by our clients because of their reduced
emissions and improved efficiency over conventional power sources. As we continue to
add to the size of our fleet, we must have additional refueling options in place to support
our growth. We hope that this new station will be one of many planned for Southern
California.
Sincelel ;�_
i
7�/
Thn D. Howhannesian
President
3f,,
u
MESR
September 14, 1995
Mobile Source Air Pollution Review Committee
South Coast Air Quality Management District
21865 East Copely Drive
Diamond Bar, CA 91765
Dear Committee Member:
On behalf of MESA, Inc. I am pleased to be a party to the City of Newport Beach's AB2766
Proposal submitted under the South Coast Au Quality Management District's Alternative Fuels - Heavy Duty
Vehicles demonstration (RFP k 9596 -04). It is our belief that natural gas vehicles will play an integral part in
southern California achieving their air quality goals.
Based upon sufficient fuel usage, as guaranteed by the City of Newport Beach, MESA is prepared to
construct and operate a natural gas fueling facility at the proposed site of Jamboree & MacArthur. This
station would be fully automated 24 -hour card access, public fueling facility, and MESA would provide all
operational, maintenance, emergency response and training support to meet or exceed industry federal, state
and local standards. MESA's construction and operation experience enables us to estimate the value of our
investment toward this project to be $1.25mm.
Again, MESA is excited about the possibility of becoming the fuel provider for natural gas vehicles
at Newport Beach and would encourage South Coast Air Quality Management District approval of the
subject proposal.
Should you have any questions regarding MESA's proposal, please do not hesitate to contact me at
(214) 402 -7025.
Sinrerel
,Ct- k12
Hal J. Powell, Jr.
5205 NORTH O'CONNOR BOULEVARD / SUITE 1400 / (2141444-9001 / IRVING. TEXAS 75035 -3746 � „
OWNG 4 wfTTFNYGfiC
¢arrwc rwwNa�vwrwnWa
Sournam Csfifomia Edison Company
Y. n..O. y
at+ wwuu i uN� avF AVENUE
September 18, 1995
John Longville, Chairman
Mobile Source Air Pollution Reduction Review Committee
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765 -4182
Subject: AB 2766 Grant Application --City of Newport Beach
Dear Mayor Longville:
T6Ct,.M[
M�f aoa -aw,.,
Southern California Edison is pleased to support the application of the City of
Newport Beach for AB 2766 Discretionary Funds to purchase and install a fast charging
station. Experimental products are now available that can fully charge electric vehicles
in 20 minutes to an hour depending on the charger.
Because this is one of the first installations of a rapid charging station in Southern
California Edisoris territory, Edison is willing to commit up to $10,(100 in inkind
contributions to fund the actual cost of utility-side infrastructure improvements
required to install the charger at the location in Newport Beach. We are also willing to
commit another $10,000 toward the actual cosy of installing customer -side
infrastructure necessary for the charger. Our interest is in testing the electric system
impact of this new type of charging technology and the infrastructure to support it. As
in previous years, our commitment is contingent on the project meeting the criteria
for field testing of infrastructure in our Low Emission Vehicle Application currently
pending before the California Public Utilities Commission and on Commission
approval of our funding request Our funding does not include the cost of the actual
chargers.
We are delighted to see that local agencies are taking steps to begin establishing an
electric vehicle infrastructure network Consumer studies show that this network is
necessary for the successful introduction of electric vehicles in the South Coast Air
Quality Management District. We look forward to working with the City of Newport
Beach to demonstrate this new infrastructure technology.
Sincerely,
� /' /��
• i
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
February 1, 1996
Michele Stizel
Intergovernmental Affairs /AB 2766
South Coast Air Quality Mgmt. District
21865 East Copley Drive
Diamond Bar CA 91765
Dear Ms. Stizel:
The City of Newport Beach is self insured as respects general liability
coverage with a self insured retention (SIR) limit of $1 million dollars
and excess coverage of $10 million dollars.
The City is also self insured as respects workers compensation
coverage with a SIR limit of $300,000 and excess coverage of $1
million dollars for Employers Liability.
If you need any further information regarding this letter, please
contact me at (714) 644 -3302.
Very truly\yours,
Lauren F. Farley /
Risk Manager
LF /tm
cc: Patty Temple. Planning Manager
3300 Newport Boulevard, Newport Beach
-1.
\J7
Om *'e, 17, 7)9S 11.32
BACKGROUND
0
CITY OF NEWPORT BEACH
Administrative Services Department
Fiscal Services Division
PURCHASING PROCEDURES
DRAFT COPY ONLY
The purpose of this document is to set forth policy and provide procedural instructions
for the purchase of goods and services as required by the City of Newport Beach. This
instruction, along with other publications listed below, replace and supersede the City of
Newport Beach Purchasing Manual. Any policy and procedural matters previously
addressed in that Manual and not addressed here are contained in one of the other
publications listed. The term "purchases ", as it is used here refers generically to
acquisitions in the broadest sense. This document covers the first phase of the
purchasing "cycle "; the second phase being payment of the invoice, usually after goods
are delivered or services are received. Policy and instructions concerning this second
phase are contained in a separate document, City Procedures for Processing of Payables
(Accounts Payable Procedures). Other City publications having related information are
the Accounting Standard Operating Procedures, Purchasing Standard Operating
Procedures, Travel Policy, Property Control Procedures, and Warehouse, Issuance, and
Disposal Procedures.
A list of various types of purchases is shown below, along with a reference to where
information can be found on proper procedures for accomplishing each type (either in
this document or elsewhere). Regardless of where the instructions on purchase action
are to be found, procedures for the payment phase of the purchase cycle, for all types of
payments, are covered in the Accounts Payable Procedures.
Requirements for obtaining bids, identification to a specific line item in the budget, and
other actions vary depending on the type of purchase and its dollar value. In general,
purchases of less than $500, regardless of type, do not require centralized purchase
action by the Fiscal Services Division. They may be accomplished on the Department
level, with the approval of the Department Head, within the guidelines set forth below.
Only individuals on the "Authorization List' list are authorized to execute purchase
Director. For these purchases, special attention must be given to Accounts Payable
procedures to insure payments are made in an accurate and timely manner. Although
not required, action on purchases of less than $500 will be provided by the Fiscal
Services Division if requested and deemed appropriate by the Department Head.
It is the function of the Fiscal Services Division to verify vendor capabilities, maintain
vendor lists, and, to the maximum practical extent, establish pricing guidelines for all
materials. In the Purchasing SOP, inventory management practices, appropriate on -hand
levels and ordering triggers for items are established. The Fiscal Services Division will
establish and maintain records concerning vendor performance as appropriate. In cases
where a department has recommended a specific vendor for a certain acquisition,
Purchasing should point out potentially better alternatives where they are thought to
exist. In cases where department level justification appears to be less than adequate, the
issue will be referred to the Administrative Services Director for resolution.
1
=r t)
oa. "fie 17, 1495 11,32 DRAFT COPY ONLY
TYPES OF CITY EXPENDITURES
Expenditures NOT Requiring Action by the Purchasing Office,
1. Employee payroll. The subject of a separate document similar to this one;
therefore not addressed here.
2. Monthly utfUly ills. Paid directly by Accounts Payable with occasional
verification by departments.
3. Legal fees. Paid directly by Accounts Payable upon certification by the City
Attorney or City Manager.
4. Insurance premiums. Certified as correct by the Risk Manager and submitted
directly to Accounts Payable for payment.
5. Deposit refunds. See special instruction in Accounts Payable Procedures.
6. Emergency repair items. Certified by Department Head and submitted
to Accounts Payable for action.
7. Employee expense reimbursements. Certified as correct by the
Accounting Manager or Administrative Services Director.
8. Travel expense reimbursements. The subject of a separate document
similar to this one; therefore not addressed here.
9. Council approved payments to organizations A copy of the Council
action should be submitted with the payment authorization (part of accounts
payable procedures). No other special purchasing action is required.
10.Contracts Adminlstration and Capital Projects. When a contract is
awarded, a copy of the contract and related information concerning payment
schedule, security deposit, completion withhold, etc., must be sent to the
Accounting Manager. Progress payments, change orders, deposits, etc. will be
tracked by the Accounting Manager, who will specifically and individually
approve every progress payment and /or other monetary transaction
concerning the contract. (Refer to the Accounts Payable Procedures.)
2
Oa& cr 17, 1995 11$2
Expenditures Requiring Action by the Purchasing Office.
DRAFT COPY ONLY
Purchase of real property or easements for public use These require
special Council action. A copy of the Council action should be submitted with the
payment authorization (part of accounts payable procedures). No other special
purchasing action is required. (Cross reference page one of the "Accounts
Payable" procedures.)
2. Leases Fall within the parameters of the instructions contained below.
3. All other purchases. Refer to instructions below.
PURCHASING PROCEDURES
The Requisition form is used to initiate purchase action through centralized purchasing.
Purchasing will then issue a Purchase Order for the requisition. A formal Purchase Order is
generally used for expenditures of City funds in excess of $1,000.00, with the exception of
the special categories listed above. A Purchase Order Number will be assigned to the
requisition received by the Purchasing Office of the Fiscal Services Division. Requisitions
require the signature approval of the originating Department before being submitted to
Purchasing for processing. The following polity approval instructions arc separated by dollar
value.
A Requisition form at a minimum, must contain the following information:
1. Suggested vendor, current address, telephone, fax number, and contact.
2. Date
3• Department and Division
4. Ship to Address (Current list available on request)
5. Quantity and Description (Be Specific)
6. Price /unit and the Extended Value.
7. If FOB and terms are discussed, this should be noted.
8. A proper budget number is required.
9. Authorized Signature (City Manager's approved list for each Department)
A Requisition represents a commitment of funds by a Department, but without the required bid
information Purchasing will not authorize the purchase. The Requisition form indicates a
request by the originating department for the involvement of the central Purchasing staff. (A
sample Requisition Form is available on request.)
A Purchase Order form is 8-1/2 x 11 and has five parts. It provides space for vital information
required to placed an order. The form represents a commitment by the City of Newport Beach.
One copy of the Purchase Order is mailed to the vendor, and copies are distributed internally
(one to the requisitioning Department, one to Accounts Payable, and two are retained in Fiscal
Services). All of the indicated information is required for processing and approval. The
Requisition that provided source information for the Purchase Order will be retained by the
Fiscal Services Division with their copy of the Purchase Order. As part of his normal duties,
the Fiscal Services Manager will follow up on missing and open Purchase Orders as required.
Oarber 17, 1995 11,33 DRAFT COPY ONLY
Routing and Approval
of
Requisitions and Formal Purchase Orders
(When a material or service is required, depending on cost, the criteria listed below should be followed.)
FOR PURCHASES LESS IT-AN $100: No Payment Authorization, Requisition, Verbal
Purchase Order, or Formal Purchase Order is required. The originating department should
stamp the invoice "Goods and Services Received ", affix the signature(s) approval, and forward
the to Accounts Payable._
FOR PURCHASES BETWEEN $100 AND $500: No formal Purchase Order is required.
If a vendor will not ship material without a purchase order number, the department may use
their department number (for instance, the Fire Department could use 2310). The vendor is
unaware of the significance of any number sequence; however, this order number will ensure
the originating department, Purchasing and Accounts Payable staff can match future paperwork
with the materials and/or services which were procured. A purchase order number is
required for services and /or materials that will be delivered to a City facility. If the material
is will called at the vendor by a department representative, an invoice should be obtained at
that time. Upon returning, a Payment Authorization form (with invoice attached) should be
forwarded to Accounts Payable.
• No bids are required. Purchases are approved at Department Head level.
• When purchases are completed and goods are received, invoices should be stamped
and sent directly to Accounts Payable.
• See also the City's Accounts Payable Procedures.
• For frequently used consumable items of relatively low dollar value, the Fiscal
Services Manager will renew existing and establish new "Blanket Agreements"
which allow Departments to obtain supplies expeditiously and at a low cost.
Departments should take advantage of procuring materials from suppliers having
Blanket Agreements with the City whenever practical.
FOR PURCHASES BETWEEN $500 AND $1,000: A Purchase Order is usually required.
The purchase of materials and/or services within this dollar category will normally involve
central purchasing staff.
• The Requisition must be signed by an authorized Department representative.
• The Purchase Order must be signed by the Fiscal Services Manager and, for
amounts greater than $5,000, the Administrative Services Director.
• The MIS Manager must review and approve all computer purchases.
• General Services must review and approve all Equipment and Vehicle purchases.
• The City Attorney must review and approve all contract purchases.
1-1
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Oao l 17, 1995 11-33
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0
BID THRESHOLDS AND
DOCUMENTATION REQUIREMENTS:
For amounts between $500 and $2,499:
• Three (3) telephone bids are required
• For other than three (3) bids, Department justification is required.
if the amount is between $2,500 and $4,999:
• Three (3) written bids are required.
• For other than three (3) bids, Department justification is required.
If the amount is between $5,000 and $29,999:
DRAFT COPY ONLY
• Three (3) written bids are required, unless specifically waived by the City
Manager. The Administrative Services Director will review and approve the bid
quatations for purchases in this range.
If the amount exceeds $30,000:
• Formal bidding is required unless a specific waiver is approved by City Council.
The Administrative Services Director will review and approve bids.
NOTES:
1. For Public Works Projects formal bidding and City Council approval are
required. For consulting services, formal qualification based selection
procedures and City Council approval are required.
2. For vehicle and equipment purchases approved by Council during budget review
do not require a second Council approval during the bid process provided the
amount is less than or equal to that previously approved. In addition, all
Purchasing procedures must be followed. The Administrative Services and
General Services Directors shall review and approve all equipment bids and
purchases jointly.
Note: Justification by Department may be (1) Emergencies and/or (2) Single Source
Vendors. For amounts between $500 and $4,999, Purchasing will obtain bid quotations if
required.
Samples of Bid Quotation Summaries which accompany Requisitions and Purchase Orders
are available upon request.
oacbcr 17, 1945 11:33 DRAFT COPY ONLY
APPENDIX 1
CHARTER, MUNICIPAL CODE, AND COUNCIL POLICY PROVISIONS
RELATIVE TO PURCHASING
All purchasing procedures must be in strict conformity with Charter provisions, sections
of the municipal code, ordinances and resolutions relative to purchasing.
Employees in City offices, departments and agencies handling requisitions will contact the
Fiscal Services Manager when in doubt concerning these matters. The Fiscal Services
Manager will, when necessary, refer all legal questions involving interpretation of the
Charter, municipal code, ordinances, resolutions, specifications, bids, contracts and other
legal matters pertaining to purchasing, to the City Attorney for interpretation.
Charter Section 420. Contracts. Restrictions. The City Council shall not have the power
to make or authorize any contract or lease or extension thereof for a longer period than
twenty-five years unless said contract, lease or extension be approved by a majority of all
qualified electors of the City voting on such question at any election. A contract, lease or
extension for a longer period shall be valid without such approval if it provides for the
acquisition by the City at the end of such period of the real or personal property so
leased or contracted for. This section shall not apply to any franchise granted pursuant to
the provisions of this Charter or to any contract for the furnishing, or acquisition of the
products, commodity or services of any public utility.
Charter Section 421. Contracts. Execution. The City shall not be bound by any
contract, except as hereinafter provided, unless the same shall be made in writing,
approved by the City Council and signed on behalf of the City by the Mayor and City
Clerk or by such officer or officers as shall be designated by the City Council, Any of said
offices shall sign a contract on behalf of the City when directed to do so by the City
Council.
By ordinance or resolution the City Council may authorize the City Manager to bind the
City, with or without a written contract, for the acquisition of equipment, materials,
supplies, labor, service or other items included within the budget approved by the City
Council, and may impose a monetary limit upon such authority.
The City Council may by ordinance or resolution provide a method for sale or exchange
of personal property not needed in the City Service or not fit for the purpose for which
intended, and for the conveyance of title thereto.
Contracts for the sale of the products, commodities or services of any public utility
owned, controlled or operated by the City may be made by the manager of such utility or
by the head of the department or City Manager upon forms approved by the City
Manager and at rates fixed by the City Council.
The provisions of this Section shall not apply to the services rendered by any person in
the employ of the City at a regular salary.
I.
5.
Wd
cr 17, 1>iS 11,33 • DRAFT COW ON'Ly
Charter Section 504. Powers and Duties. The City Manager shall be the head of the
administrative branch of the City government. He shall be responsible to the City Council
for the proper administration of all affairs of the City. Without limiting the foregoing
general grant of powers, responsibilities and duties, the City Manager shall have power
and be required to:
(E) Establish a centralized purchasing system for all City offices, departments
and agencies.
(F) Prepare rules and regulations gowning the contracting for, purchasing,
storing, distribution, or disposal of all supplies, materials and equipment required
by any office department or agency of the City government and recommend them
to the City Council for adoption by it.
Charter Section 608. Illegal Contracts, Financial Interest. No member of the City
Council, department head or other officer of the City (except a member of any board or
commission), shall be financially interested, directly or indirectly, in any contract, sale or
transaction to which the City is a party.
No member of any board or commission shall be financially interested, directly or
indirectly, in any contract, sale or transaction to which the City is a party and which
comes before the board or commission of which such person is a member for approval
or other official action of which pertains to the department, office or agency of the City
with which such board or commission is connected.
Any contract, sale or transaction in which there shall be such an interest, as specified in
this section, shall become void at the election of the City when so declared by resolution
of the City Council.
No member of the City Council, department head or other officer of the City or member
of any board or commission shall be deemed to be financially interested, within the
meaning of the foregoing provisions, in any contract made with a corporation where his
only interest in the corporation is that of a stockholder and the stock owned by him shall
amount to less than three percent of all the stock of such corporation issued and
outstanding.
if any member of the City Council, department head or other officer of the City, or
member of a board or commission be financially interested as aforesaid, upon conviction
thereof he shall forfeit his office in addition to any other penalty which may be imposed
for such violation of this Charter.
Charter Section 1106. Centralized Purchasing. Under the control and direction of the
City Manager there shall be established a centralized purchasing system for all City
departments and agencies, except as otherwise in this Charter provided.
7
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Section 1110. Contracts on Public Works. Every project for the construction or
improvement of public buildings, works, streets, drains, sewers, utilities, parks or
playgrounds, and every purchase of supplies or materials for any such project, when the
total expenditures required for the project exceed Thirty Thousand ($30,000), or such
lesser amount as may be established by ordinance, shall be let by the City Council by
contract to the lowest responsible bidder after notice by publication in the official
newspaper by one or more insertions, the first of which shall be at least ten days before
the time for opening bids. Projects for the maintenance or repair of such facilities are
excepted from the requirements of this paragraph if the City Council determines that
such work can be performed more economically by a City department than by
contracting for the doing of such work.
All bids shall be accompanied by either a certified or cashier's check, or a bidder's bond
executed by a corporate surety authorized to engage in such business in California, made
payable to the City. Such security shall be in an amount not less than that specified in the
notice inviting the bids or in the specifications referred to therein, or if no amount be so
specified then in an amount not less than ten 000 /o) of the aggregate amount of bid. if the
successful bidder neglects or refuses to enter into the contract, within the time specified
in the notice inviting bids or in specifications referred to therein, the amount of his or
her bidder's security shall be declared forfeited to the City and shall be collected and paid
into its general fund, and all bonds so forfeited shall be prosecuted and the amount
thereof collected and paid into such fund.
The City Council may reject any and all bids presented and may re- advertise in its
discretion.
The City Council, without advertising for bids, or after rejecting bids or if no bids were
received, may declare and determine that, in it's opinion, based on estimates approved
by the City Manager, the work in question may be performed better and more
economically by the City with its own employees or the supplies or material may be
purchased more economically on the open market, and after the adoption of a resolution
to this effect by at least five affirmative votes of the Council may proceed to have said
work done or said supplies or materials purchased in the manner stated, without further
observance of the provisions of this Section. Such contracts likewise may be let without
advertising for bids, if such work or supplies or materials shall be deemed by the City
Council to be of urgent necessity for the preservation of life, health or property and shall
be authorized by resolution passed by at least five affirmative votes of the Council and
containing a declaration of the facts constituting such urgency. (As amended by
amendments effective April 28, 1966, June 6, 1974, and November 4, 1986).
Section 1111. Purchasing Supplies. The City Council may prescribe by ordinance rules
and regulations for the purchasing of supplies, materials and equipment. When making
purchases for the City, merchants maintaining an established place of business within the
City shall be given the preference, quality and prices being equal.
E3
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Oaobcr ]7, 1995 21,33
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Municipal Code 2.12.040. Administrative Services Department. The Administrative
Services Department shall be under the supervision of the Administrative Services
Director, who shall have charge of the financial affairs of the City. The functions of the
Administrative Services Department, in addition to those duties imposed by the City
Charter, shall include:
(B) Purchase of supplies, equipment and services used by City Departments.
(C) Disposal of the obsolete and surplus City property.
(D) Provide centralized duplication services for all City Departments.
Purchasing Authority For Goods and Services (Council Polley F -14)
1. The City Manager shall have authority to approve the purchase of all capital outlay
items without further Council approval or authorization, subject to the following:
a) Capital outlay purchases will be procured as shown in the budget, provided the
amountt does not exceed the total budgeted appropriation;
2. The City Manager is further authorized to enter into contracts on behalf of the City
for the following:
a) Leasing servicing or maintenance of equipment, provided they have been
included within the approved budget and that the expenditure of each such
item shall not exceed $30,000.00.
b) Retain consultants for professional services without prior Council approval,
provided the fee does not exceed $30,000.00 and funds are available.
c) Contract with public agencies or private entities for law enforcement or other
services, provided the contract price does not exceed $30,000.00.
Further changes regarding the provisions of the subject policy shall be made by
resolution of the City Council.
3. No officer or employee, except the Fiscal Services Manager, may negotiate any
purchase contract for the City, for the acquisition of supplies, equipment or
services without authorization from the City Council or City Manager.
4. An Authorization List approved by the City Manager, of all persons authorized to
execute requisitions will be maintained by the Fiscal Services Manager. The
Authorization List includes persons authorized only to withdraw supplies from
City Warehouses. Changes in the list must be approved by the City Manager.
5. Any person not appearing on the Authorization List must present a requisition
signed by an authorized individual before any action will be taken.
9
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APPENDIX 2
CITY POLICY CONCERNING CONFLICT OF INTEREST
(As per City of Newport Beach Personnel Policies - Resolution 088 -13, dated Feb. 22, 1988)
300.1.1 Purpose
The purpose of this policy is to define the City's guidelines regarding the receipt of gifts,
gratuities or favors by the City Employees. The intent of the Policy is to ensure that all
employee contacts with citizens and the business community are free from conflict of interest,
compromise, or the appearance of same.
300.1.2 Policy
A. No City employee, member of that employee's immediate family shall solicit any gifts,
money, food, beverages, tickets, passes, travel, specific accommodations, favors or the
use of property or facilities from any individual, group or company with whom the
employee deals in the course of the City employment.
B. It is recognized that employees must conduct a certain amount of city business with
non -city employees during meals, or occasionally during entertainment events. In such
situations, it is always preferable that the City employee pay for their own meal or
ticket, utilizing city funds which have been budgeted for this purpose. However, an
employee may accept minor items such as business lunches and/or entertainment
tickets when, in the employee's judgment, such offers are made in the normal course of
the city business, they are the usual standard of the industry, and it is not appropriate
to decline. When such items are accepted, the employee should make an effort to
reciprocate in like manner in an appropriate business situation.
C. Employees and members of their family shall not accept any discount on purchases of
products or services that are offered as a result of employment with the city, unless
such a discount is made available to all city employees as a general business practice or
benefit, e.g., Magic Kingdom cards, Credit Union purchases.
D. This policy is not meant to preclude the acceptance of:
1) Free attendance or participation at official or quasi- official functions such as ground
breaking, oral boards, concerts, open houses, award ceremonies, banquets or similar
events which the employee attends in their normal or official capacity as a City
employee; or
2) Free meals and/or entertainment that are part of such programs or functions.
E. These policies are in addition to the City's Conflict of Interest Code which complies
with the provisions of the Political Reform Act, and nothing contained here shall
relieve any employee who is subject to that Code from complying to its provisions.
These policies also rely heavily on the individual employee's ability to use good
judgment and common sense.
F. Deliberate solicitation or acceptance of gifts, gratuities or favors, in violation of the
provisions of the Conflict of Interest Code as required by the Political Reform Act,
will be subject to an investigation conducted by either the City Attorney, the Orange
County District Attorney's office, or by the Fair Political Practices Commission.
Should the investigation determine that the employee was guilty of misconduct, the
employee will be subjected to an appropriate level of discipline up to and including
the possibility of termination.
10
0..Jcr 1'/, IJ93 11:33 • • DRAFT COPY ONLY
APPENDIX 3
SPECIAL INSTRUCTIONS FOR PURCHASE OF VEHICLES AND RELATED
EQUIPMENT
In accordance with Newport Beach City Charter Section 1106, Centralized Purchasing,
the City Manager has directed that when obtaining vehicles and rolling equipment, the
General Services Director is to balance the quality of City services and the effectiveness of
operations with any quantitative savings that may result. One of the goals of centralized
purchasing is to standardize equipment whenever possible to facilitate block purchasing,
economies of scale, ease of service and a supply of repair parts.
When preparing the annual fiscal year budget, Department Directors are to complete the
CO2 form specifying in detail their request for rolling equipment. The General Services
Director will review vehicle acquisitions identified in the budget and make
recommendations to the City Manager. The comments should address:
1. The suitability of the equipment for its intended use:
2. Whether similar equipment exists within the City;
3. Whether the equipment may be shared;
4. Whether Equipment Maintenance has facilities /staff to repair the equipment;
5. The suitability of requested options.
6. Recommendations on alternatives, including price, if appropriate.
Once a vehicle is included in the budget approved by the City Manager and City Council,
changes in approved requests for standard motor vehicles may not be made without the
approval of the City Manager.
Immediately following the approval of the budget by the City Council, the General
Services Director will prepare a list of standard motor vehicles approved for purchase
using the budget and the information contained on the CO2 forms submitted by the
Departments. General Services will prepare purchase requisitions and specifications for
standard motor vehicles for Departmental signature. Every effort is to be made to
purchase standard motor vehicles in a manner that is economical and efficient.
In purchasing equipment other than standard motor vehicles, specifications must be
developed in conjunction with the General Services Director. Once the specifications
have been prepared, the Purchasing Manager will send the requisitions out to bid or will
negotiate for the best price.
The bid results and/or findings will be reviewed by General Services Director and a
representative from the requesting Department. Based on the price, appropriate
application, and what is in the best interests of the City, a selection will be made and the
Purchase Order issued.
All leased vehicles require the approval of the Administrative Services Director.
11
50
Oa obcr 17, 1995 11:33
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In order to assist Department Directors in their requests for vehicles and/or equipment,
the following guidelines have been adopted and will be strictly adhered to:
1. With the exception of Police undercover cars having multiple use, full size
vehicles will only be purchased for use by Department Directors. These
vehicles shall have basic equipment only and may include air conditioning and
automatic transmission. Optional equipment such as power windows,tilt
steering wheel or cruise control will not be permitted, unless their deletion
from an available model would result in an increased cost to the City.
2. All service vehicles and equipment will be painted in the traditional and
standard Newport Beach blue and yellow colors except for those vehicles
operated by the Police and Fire Departments. Vehicles that are normally
operated in a stationary service position in traffic lanes shall be painted yellow.
Other exceptions must be specifically approved by the City Manager at the time
of budget review.
3. The method for handling the disposal of surplus vehicles and equipment will be
determined by the General Services Director in accordance with Section
2.12.040 of the Municipal Code.
4. All new equipment and vehicles will be delivered directly to the Equipment
Maintenance Shop located at 592 Superior Avenue to allow for the checking of
serial numbers, I.D. numbers and matching equipment to invoice.
5. The Administrative Services Director is prohibited from making any payment
for vehicles, goods and/or services that are not obtained in accordance with
approved procedures. Any agreement that is not made in accordance with
these procedures will not be honored by the City.
6. The replacement of all motor vehicles shall be based on Council Policy F -9
12
-/
,92 .O1 /00
EL��OPERA N w U_� 5��
Seftin971u S>anda7U
Since 1967
Orange County
16251 Cons&ucoon
G1de West
Wine, CA 92714e 12
(714) 551 -5151
(714)551-4371 FAX
INvd Empin,
16W CtWmgo Au me
Sude a -12
Riwe id% CA 92507
(800)266.7111
14:54 U714 551 J8 SUNSET
10 002
Sunset Property Services
PURCHASING POLICY STATEMENT
* Sunset Property Services utilizes several payment modes, as negotiated
with the individual vendor /contractor.
* The usual terms of payment are Net 10, Net 30, 30 -60 -90 and variations
thereof.
* These items are subject to agreement between Sunset Property Services
and the vendor /contractor, and may be modified as deemed necessary.
CAPITAL VEHICLE PURCHASES
* Vehicles are purchased subsequent to utilizing a bidding process.
* All proposals must adhere to the exact specifications promulgated by
Sunset Property Services.
* Sunset Property Services reserves the right to select the most responsible
bidder.
SINGLE SOURCE PROPOSALS
* Prior to acceptance of a "single/sole source" proposal, the purchase must
be justified to, and approved by the President
Examples of the "single/sole. source' procurements would be the purchase
of sweeping units from TYMCO and in the purchase of specific use
components and spare parts.
* TYMCO, for example, is the "single/sole. source" for the sweeper unit
configuration and CNG option for which Sunset Property Services has
become so well known.
GENERAL
Each procurement is thoroughly staffed, in house, and judged
independently and on its own merits.
r)
JOZ
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
February 1, 1996
Michele Stizel
Intergovernmental Affairs /AB 2766
South Coast Air Quality Mgmt. District
21865 East Copley Drive
Diamond Bar CA 91765
Dear Ms. Stizel:
The City of Newport. Beach is self insured as respects general liability
coverage with a self insured retention (SIR) limit of $1 million dollars
and excess coverage of $10 million dollars.
The City is also self insured as respects workers compensation
coverage with a SIR limit of $300,000 and excess coverage of $ 1
million dollars for Employers Liability.
If you need any further information regarding this letter, please
contact me at (714) 644 -3302.
Very
Lauren F. Farley
Risk Manager
LF /tm
cc: Patty Temple, Planning Manager
3300 Newport Boulevard, Newport Beach 53