HomeMy WebLinkAbout2/17/2016 - STAFF REPORTS - 2.J. A.O�Q P L M S,p�
.y
e
V N
S
k �U.r094ff�f
C4<1FORQ��P. City Council Staff Report
Date: February 17, 2016 CONSENT CALENDAR
Subject: APPROVAL OF AB 2766/MSRC LOCAL GOVERNMENT MATCH
PROGRAM CONTRACT NO. ML16038 IN THE AMOUNT OF $495,000
WITH THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
(SCAQMD) FOR BIKE LANE INSTALLATION AND PURCHASE OF
HEAVY DUTY COMPRESSED NATURAL GAS (CNG) FUELED
VEHICLES.
From: David H. Ready, City Manager
Initiated by: Office of Sustainability
SUMMARY
On January 12, 2016, the Office of Sustainability was notified that the South Coast Air
Quality Management District (SCAQMD) approved a grant of $230,000 to be awarded
to the City for installation of bike lanes and the purchase of four (4) CNG fueled vehicles
through its Assembly Bill 2766/Mobile Source Air Pollution Reduction Review
Committee (AB 2766 / MSRC) Local Government Match Program.
The Local Government Match Program requires a match of local funds for both project
elements making the total project cost $495,000. To honor the terms of the grant
contract for the CNG fueled vehicles, the City must provide matching funds of $55,000
from the City's annual motor vehicle replacement funds and another $100,000 from AB
2766 Subvention Funds. The total amount project cost for the CNG vehicles is
$275,000. To honor the terms of the grant contract for the bike lanes installation
element, the City must provide matching funds of $110,000 which were previously
allocated in the City's Measure J fund for a total project cost of$220,000.
RECOMMENDATION:
1. Approve AB 2766 / MSRC Local Government Match Program Contract No.
ML16038 with South Coast Air Quality Management District, in the amount of
In September 1990, Assembly Bill 2766 (AB 2766) was signed into law initially authorizing a $2 motor
vehicle registration fee surcharge. Section 44223 of the Health & Safety (H&S) Code, enacted by AB
2766, specifies that this motor vehicle registration fee be used "...for the reduction of air pollution from
motor vehicles pursuant to, and for related planning, monitoring, enforcement, and technical studies
necessary for implementation of the California Clean Air Act of 1988."
ITEM NO._ ��
City Council Staff Report
February 17, 2016-- Page 2
AQMD Contract No. ML16038
$495,000 ($230,000 AQMD Discretionary Funds Grant / $100,000 City's AB2766
Subvention Funds / $165,000 Local Funding) for purchase of four (4) CNG heavy
duty vehicles and installation of bike lanes; and
2. Authorize Procurement to conduct the appropriate bid processes, or utilize
cooperative purchase contracts if available, in accordance with the Procurement
Ordinance and authorize the City Manager to execute all necessary documents,
including all purchase orders, as necessary to purchase the four (4) CNG heavy duty
vehicles; and
3. Authorize the City Manager to'execute all necessary documents.
STAFF ANALYSIS:
The Office of Sustainability has successfully applied for several grants to foster the
culture of sustainability within the community and in City operations. These grants have
helped fund costs associated with implementation of various programs in the last few
years including electric vehicle infrastructure and bike parking.
In May 2015, the Office of Sustainability submitted a grant application to AQMD for
funding towards bike lane installation and four heavy-duty compressed natural gas
vehicles. On January 12, 2016, SCAQMD notified the City of its award of funding
through the AB 2766 / MSRC Local Government Match Program, and provided Contract
No.ML16038 to facilitate the City's award for both projects.
SCAQMD granted $110,000 in AB2766 Discretionary funds to the City for bike lane
improvements. The bike lane improvements consist of both Class II and III bike lane
improvements including shared lane markings (sharrows) as indicated in Table 1 below.
By approving Contract No. ML16038 the City would be obligated to match 100% of the
SCAQMD grant award in the amount of $110,000. Measure J funds have been
allocated for just such bike lane improvements and are available to use as matching
funds for this portion of the project.
For the remainder of the projects awarded through the contract, the City will utilize AB
2766 Subvention fundS2 which are allocated to the City of Palm Springs through AQMD
on an annual basis for the purpose of implementing such projects.
s Since 1991, local governments have received AB 2766 funds to implement programs that reduce air
pollution from motor vehicles. The motor vehicle registration fee surcharge is collected by the Department
of Motor Vehicles and sub-vented to AQMD for disbursement whereby a portion of these funds are
allocated to local governments (the "subvention' portion); AQMD is applying $100,000 of the City's
allocation of Subvention Funds towards this grant contract.
02
City Council Staff Report
February 17, 2016-- Page 3
AQMD Contract No. ML16038
TABLE 1
CLASS 11 BIKE LANES
NO SEGMENT FROM TO
1 BARONA RD E. PALM CANYON DR E. MORONGO TR
2 E. MORONGO TR BARONA RD S. ARABY DR
3 CALLE EL SEGUNDO SATURNINO RD E. RAMON RD
4 MESQUITE AVE VELLA RD GENE AUTRY TR
515. PALM CANYON DR IMURRAY CANYON DR I ACANTO DR
TOTAL
CLASS III BIKE ROUTE
NO SEGMENT FROM TO
1 MESQUITE AVE EL CIELO RD VELLA RD
2 N. PALM CANYON DR ALEJO RD RAMON RD
3 N. CERRITOS RD E. JOYCE DR E. AMADO RD
4 E. JOYCE DR N. SUNRISE WAY N. FARRELL DR
SIN. FARRELL DR E. JOYCE DR E. RACQUET CLUB RD
6 34TH AVE CROSSLEY RD MARGUERITE ST
7 E. AMADO RD N. SUNRISE WAY N. FARRELL DR
8 S. CAMINO REAL S. CALLE PALO FIERRO E. PALM CANYON DR
9 S. CIVIC DR E. TAHQUITZ CANYON WAY E. BARISTO RD
10 ESCOBA DR EL CIELO RD 1650 E/O EL CIELO RD
11 E. FRANCIS DR N. INDIAN CANYON DR N. FARRELL DR
12 N. HERMOSA DR E. TACHEVAH DR E. ARENAS RD
13 E. MESQUITE AVE S. PALM CANYON DR S. CALLE PALO FIERRO
14 E. PASEO EL MIRADOR N. VIA MIRALESTE N. SUNRISE WAY
15 SUNNY DUNES RD JEL CIELO RD S. GENE AUTRY TR
161 E. TAMARISK RD IN. PALM CANYON DR N. FARRELL DR
171 E. TWIN PALMS DR IS. PALM CANYON OR S. LA VERNE WAY
The total made available for CNG vehicles is $120,000 (cost not to exceed $30,000 per
vehicle). The City has the obligation to match with $55,000 from the City's own local
funds, and $100,000 from the AB 2766 Subvention Funds allocated to the City by
AQMD. The City will use subvention funds of $50,000 from fiscal year 2015-16 and
$50,000 from fiscal year 2016-17. The details on the make and model of heavy duty
vehicles proposed for purchase is detailed in the table below.
03
City Council Staff Report
February 17, 2016-- Page 4
AQMD Contract No. ML16038
Vehicle Make Fuel Engine Model Gross Vehicle Vehicle Duty Annual Estimated Cost
&Model Type &Horsepower Vehicle Life Cycle Vehicle
Weight Operation
Rating (Years) (hours or
mileage)
1 Ford E350 CNG 6.2L V8 14,300 10 Passenge 10,000 $50,000
Van 316 r
2 Ford F350 CNG 6.2L V8 14,300 15 Flatbed 4,000 $65,000
385
3 Ford F550 CNG 6.81L V10 19,500 15 Dump 4,000 $80,000
362
4 Ford F550 CNG 6.8L V10 19,500 10 utility 4,000 $80,000
362
Total
$275,000
The City uses various procurement processes for the various types of vehicles allowed
by the Code, in the best interest of the City. Hence, some vehicles may be purchased
utilizing cooperative purchase contract if available and others may be direct competitive
bids, as determined by Procurement to conduct the most cost effective procedure to
obtain the most favorable price.
Staff recommends that City Council accept AB2766/MSRC Local Government Match
Program Contract No. ML16038 to allow for the installation of bike lanes and the
purchase of the four CNG vehicles. A copy of contract No. ML16038 is included as
Attachment 1.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a 'Project' as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a `Project' means the
whole of an action, which has a potential for resulting in either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the
environment. According to Section 15378(b), a Project does not include: (5)
Organizational or administrative activities of governments that will not result in direct or
indirect physical changes in the environment.
FISCAL IMPACT:
The AB 2766/MSRC Local Government Match Program Contract No. ML16038 provides
the City with $110,000 for bicycle lane improvements requiring a 100% match. Funds are
available for this purpose in Measure J Account No. 260-4500-59445.
Contract No. ML16038 also provides the City with up to $120,000 ($30,000 per vehicle) in
funding towards new CNG vehicles, requiring the City's commitment of $155,000 towards
the total cost. Funding is available in Account No. 149-4609-50000 for the City's 2015/16
04
City Council Staff Report
February 17, 2016 -- Page 5
AQMD Contract No. ML16038
and 2016/17 AB2766 subvention funds that will provide for $100,000 of the required
match. Funding is available in the City's annual motor vehicle replacement fund in
Account No. 510-5475-50020 for the additional $55,000 of remaining funds required.
SUBMITTED
Prepared by: Approved by:
A A J&A. ��
Michele Mician, MS, LEED GA
Sustainability Manager Assistant City Manager/City Engineer
David H. Ready, Esq., .
City Manager
Attachments:
1. AQMD Contract No. ML16038
05
ATTACHMENT 1
4 Px r
21865 Copley Drive
Diamond Bar
CA 91765
Clean Transportation 909.396.3269
Funding from the MSRC fox909.396.3682
Mobile Source Air Pollution Reduction Review Committee I
January 12, 2016
Mr. Marcus Fuller
City of Palm Springs
I 3200 E. Tahquitz Way
Palm Springs, CA 92264
Dear Mr. Fuller:
Please find attached two original copies of Contract Number ML16038 for signatures. This
contract is to Install Bike Lanes and Purchase of 4 Heavy-Duty Vehicles. Please sign the
signature page provided in the contract, and return both copies to me. If your agency's
policy compels you to use a separate signature page, make sure to include the
MSRC/SCAQMD contract number on the additional page.
Rachel Valenzuela
South Coast AQMD1MSRC
21865 Copley Drive
Diamond Bar, CA 91765
If we do not receive the signed contract within 12 months from the date this letter, we
reserve the right to terminate negotiations. If negotiations are terminated, the amount
previously awarded will revert to the AB 2766 Discretionary Fund.
Once the contract has been executed, I will return to you a copy for your files. If you have
any questions, please don't hesitate to call me at(909) 396-3101,
Sincerely,
Rachel B. Valenzuela
Contracts Assistant
MSRC Contracts Administration
rachel @cleantransoortafionfunding.org
Attachments
r±R
MEMBER ORGANIZATIONS:Colifornio Air Resources Boord• Los Angeles County Melr000&tan Tronsportotion Authority•Orange County
l i iransportolion Authorily•Riverside County Tromporiotion Commission•San Bemordno Associated Governments•South Coast Air Oualily
r Management District•Southern California Association at Governments•Regional Rideshoring Agency 07
xi
South Coast Contract No.ML16038
Air Quality Management District Clean Transportation
Funding from the MSRC
AB 27661MSRC LOCAL GOVERNMENT MATCH PROGRAM CONTRACT
1. PARTIES - The parties to this Contract are the South Coast Air Quality Management District (hereinafter
referred to as"SCAQMD")whose address is 21865 Copley Drive, Diamond Bar, California 917654178, and
the City of Palm Springs(hereinafter referred to as "CONTRACTOR")whose address is 3200 East Tahquitz
Way, Palm Springs, California 92264.
2. RECITALS
A. SCAQMD is the local agency with primary responsibility for regulating stationary source air pollution
within the geographical boundaries of the South Coast Air Quality Management District in the State of
California (State). SCAQMD is authorized under State Health & Safety Code Section 44225 (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, SCAQMD'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 SCAQMD.
C. AB 2766 further mandates that thirty (30) percent of such vehicle registration fees be placed by
SCAQMD into a separate account for the sale 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 SCAQMD's Governing Board, SCAQMD authorized this Contract with CONTRACTOR for
equipment or services described in Attachment 1 -Statement of Work, expressly incorporated herein by
this reference and made a part hereof of this Contract.
E. CONTRACTOR has met the requirements for receipt of AB 2766 Discretionary Funds as set forth in
CONTRACTOR's Local Government Match Program Application/Proposal dated June 1,2015.
F. CONTRACTOR is authorized to do business in the State of California and attests that it is in good tax
standing with the California Franchise Tax Board.
G. All parties to this Contract have had the opportunity to have this Contract reviewed by their attorney.
3. DMV FEES - CONTRACTOR acknowledges that SCAQMD cannot guarantee that the amount of fees to be
collected under AB 2766 will be sufficient to fund this Contract. CONTRACTOR further acknowledges that
payment under this Contract is contingent upon SCAQMD receiving sufficient funds from the DMV, and that
SCAQMD assumes no responsibility for the collection and remittance of motor vehicle registration fees.
4. AUDIT AND RECORDS RETENTION
A. 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 SCAQMD 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.
B. CONTRACTOR agrees to maintain records related to this Contract during the Contract term and
continue to retain these records for a period of two years beyond the Contract term, except that in no
case shall CONTRACTOR be required to retain more than the most recent five years' records.
SCAQMD shall coordinate such audit through CONTRACTOR'S audit staff.
1 08
Contract No.ML16038
C. If an amount is found to be inappropriately expended, SCAQMD may withhold funding, or seek
reimbursement, from CONTRACTOR in the amount equal to the amount that was inappropriately
expended. Such withholding shall not be construed as SCAQMD's sole remedy and shall not relieve
CONTRACTOR of its obligation to perform under the terms of this Contract.
5. TERM -The term of this Contract is for seventy six (76) months from the date of execution by both parties,
unless terminated earlier as provided for in the TERMINATION clause of this Contract, or the term is
extended by amendment of this Contract in writing. 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,
subject to the provisions stated in the PRE-CONTRACT COSTS clause of this Contract.
6. SUCCESSORS-IN-INTEREST - This Contract, and the obligations arising under the Contract, shall be
binding on and inure to the benefit of CONTRACTOR and their executors, administrators, successors, and
assigns.
7. REPORTING - CONTRACTOR shall submit reports to SCAQMD as outlined in Attachment 1 - Statement of
Work. SCAQMD reserves the right to review, comment, and request changes to any report produced as a
result of this Contract.
8. TERMINATION
A. In the event any party fails to comply with any term or condition of this Contract, or fails to provide
services in the manner agreed upon by the parties, including, but not limited to, the requirements of
Attachment 1 — Statement of Work, this failure shall constitute a breach of this Contract The non-
breaching party shall notify the breaching party that it must cure this breach or provide written notification
of its intention to terminate this contract. Notification shall be provided in the manner set forth in the
NOTICES clause of this Contract. The non-breaching party reserves all rights under law and equity to
enforce this Contract and recover damages.
B. SCAQMD reserves the right to terminate this Contract,in whole or in part, without cause,upon thirty(30)
days' written notice. Once such notice has been given, CONTRACTOR shall, except as and to the
extent or directed otherwise by SCAQMD, discontinue any Work being performed under this Contract
and cancel any of CONTRACTOR's orders for materials, facMties, and supplies in connection with such
Work, and shall use its best efforts to procure termination of existing subcontracts upon terms
satisfactory to SCAQMD. Thereafter, CONTRACTOR shall perform only such services as may be
necessary to preserve and protect any Work already in progress and to dispose of any property as
requested by SCAQMD.
C. CONTRACTOR shall be paid in accordance with this Contract for all Work performed before the
effective date of termination under section B of the TERMINATION clause of this Contract. Before
expiration of the thirty (30) days' written notice, CONTRACTOR shall promptly deliver to SCAQMD all
copies of documents and other information and data prepared or developed by CONTRACTOR under
this Contract with the exception of a record copy of such materials, which may be retained by
CONTRACTOR,
9. STOP WORK - SCAQMD may, at any time, by written notice to CONTRACTOR, require CONTRACTOR to
stop all or any part of the Statement of Work tasks in this Contract. A stop work order may be issued for
reasons including, but not limited to, the project exceeding the budget, out of scope work, delay in project
schedule, or misrepresentations. Upon receipt of the stop work order, CONTRACTOR shall immediately
take all necessary steps to comply with the order. CONTRACTOR shall resume the work only upon receipt
of written instructions from SCAQMD cancelling the stop work order. CONTRACTOR agrees and
2 Q9
Contract No.ML16038
understands that CONTRACTOR will not be paid for performing work while the stop work order is in effect,
unless SCAQMD agrees to do so in its written cancellation of the stop work order.
10. INSURANCE - CONTRACTOR represents that it is permissibly self-insured and vrill maintain such self-
insurance in accordance with applicable provisions of California law throughout the term of this Contract.
CONTRACTOR shall provide evidence of sufficient coverage during the term of this Contract and any
extensions thereof that meet or exceed the minimum requirements set forth by the SCAQMD below, The
certificate of self-insurance shall be mailed to: SCAQMD, 21865 Copley Drive, Diamond Bar, CA 91765-
4178, Attention: Cynthia Ravenstein, MSRC Contracts Administrator. The SCAQMD Contract Number
must be included on the face of the certificate. If CONTRACTOR fails to maintain the required insurance
coverage, SCAQMD reserves the right to terminate the Contract or purchase such additional insurance and
bill CONTRACTOR or deduct the cost thereof from any payments owed to CONTRACTOR. Minimum
insurance coverages are as follows:
A. Worker's compensation insurance in accordance with either California or other state's
applicable statutory requirements.
B. General Liability insurance with a limit of at least$1,000,000 per occurrence, and
$2,000,000 in general aggregate.
C. Automobile Liability insurance with limits of at least$100,000 per person and $300,000 per
accident for bodily injuries and$50,000 in property damage,or$1,000,000 combined
single limit for bodily injury or property damage.
11. INDEMNIFICATION-CONTRACTOR agrees to hold harmless, defend and indemnify SCAQMD, its officers,
employees, agents, representatives, and successors-in-interest against any and all loss, damage, costs,
lawsuits, claims, demands, causes of action,judgments, attorney's fees, or any other expenses arising from
or related to any third party claim against SCAQMD, its officers, employees, agents, representatives, or
successors in interest that arise or result in whole or in part, from any actual or alleged act or omission of
CONTRACTOR, its employees, subcontractors, agents or representatives in the performance of this
Contract. This Indemnification Clause shall survive the expiration or termination (for any reason) of the
Contract and shall remain in full force and effect.
12. DISCLAIMER OF WARRANTY - The purchase or lease of funded vehicles/equipment is the
CONTRACTOR's decision. The SCAQMD does not make any express or implied warranty of
merchantability, fitness for a particular purpose or otherwise, quality or usefulness of the technology or
product. Without limiting the foregoing, the SCAQMD will not be financially responsible, or otherwise liable,
for the installation or performance of the vehicle/equipment.
13. PAYMENT
A. SCAQMD shall reimburse CONTRACTOR up to a total amount of Two Hundred Thirty Thousand Dollars
($230,000) in accordance with Attachment 2— Payment Schedule expressly incorporated herein by this
reference and made a part hereof of the Contract.
B. A withhold amount or percentage (if any) shall be identified in the Payment Schedule, and such amount
shall be withheld from each invoice. Upon satisfactory completion of project and final acceptance of
work and the final report, CONTRACTOR's invoice for the withheld amount shall be released. Proof of
project completion shall include a Final Report detailing the project goals and accomplishments, data
3 10
Contract No.ML16038
collected during project performance, if any, documentation of significant results, and emissions
reduction input data needed for calculation of emissions reductions.
C. Any funds not expended upon early Contract termination or Contract completion shall revert to the AB
2766 Discretionary Fund. Payment of charges shall be made by SCAQMD to CONTRACTOR within
thirty (30) days after approval by SCAQMD of an itemized invoice prepared and furnished by
CONTRACTOR.
D. An invoice submitted to SCAQMD for payment must be prepared in duplicate, on company letterhead,
and list SCAQMD's contract number, period covered by invoice, and CONTRACTOR's social security
number or Employer Identification Number and submitted to:
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765-4178
Attn: Cynthia Ravenstein, MSRC Contracts Administrator
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, as applicable, shall be made at actual cost.
Supporting documentation must be provided for al individual charges (with the exception of direct
labor charges provided by CONTRACTOR),
2. SCAQMD shall pay CONTRACTOR for travel-related expenses only if such travel is expressly set
forth in Attachment 2 — Payment Schedule of this Contract or pre-authorized by SCAQMD in
writing.
3. CONTRACTOR's failure to provide receipts shall be grounds for SCAQMD's non-reimbursement of
such charges. CONTRACTOR may reduce payments on invoices by those charges for which
receipts were not provided.
4. CONTRACTOR must submit final invoice no later than ninety(90)days after the termination date of
this Contract or invoice may not be paid.
14, COMPLIANCE WITH APPLICABLE LAWS - CONTRACTOR agrees to comply with all federal, state, and
local laws, ordinances, codes and regulations and orders of public authorities in the performance of this
Contract, CONTRACTOR must also ensure that the vehicles and/or equipment to be purchased, leased or
installed is in compliance with all applicable federal, state,and local air quality rules and regulations,and that
it will maintain compliance for the ful Contract term. CONTRACTOR shall ensure that the provisions of this
clause are included in all subcontracts.
15. MOBILE SOURCE EMISSION REDUCTION CREDITS (MSERCs)
A. The MSRC has adopted a policy that no MSERCs resulting from AB 2766 Discretionary Funds may be
generated and/or sold.
B. CONTRACTOR has the opportunity to generate MSERCs as a by-product of the project if a portion of
the air quality benefits attributable to the project resulted from funding sources other than AB2766.
These MSERCs, which are issued by SCAQMD, are based upon the quantified vehicle miles traveled
(VMT) by project vehicles or other activity data as appropriate. Therefore, a portion of prospective
MSERCs, generated as a result of AB 2766 Funds, must be rehired, The portion of prospective credits
funded by the AB 2766 program, and which are subject to retirement, shall be referred to as "AB 2766-
MSERCs."
C. The determination of AB 2766-MSERCs is to be prorated based upon the AB 2766 program's
contribution to the cost associated with the air quality benefits. In the case where AB 2766 Discretionary
4 11
Contract No.ML16038
Funds are used to pay for the full differential cost of a new alternative fuel vehicle or for the retrofitting or
repowering of an existing vehicle, all MSERCs attributable to AB 2766 Discretionary Funds must be
retired. The determination of AB 2766-MSERCs for infrastructure and other ancillary items is to be
prorated based upon the AB 2766 program's contribution to the associated air quality benefits.
Determination of the project's overall cost will be on a case-by-case basis at the time an MSERC
application is submitted. SCAQMD staff, at the time an MSERC application is submitted, will calculate
total MSERCs and retire the AB 2766-MSERCs. CONTRACTOR would then receive the balance of the
MSERCs not associated with AB 2766 funding.
16. NOTICES-All notices that are required under this Contract shall be provided in the manner set forth herein,
unless specified otherwise. Notice to a party shall be delivered to the attention of the person listed below, or
to such other person or persons as may hereafter be designated by that party in writing. Notice shall be in
writing sent by email, U.S. Mail, express, certified, return receipt requested, or a nationally recognized
overnight courier service. In the case of email communications, valid notice shall be deemed to have been
delivered upon sending, provided the sender obtained an electronic confirmation of delivery. Email
communications shall be deemed to have been received on the date of such transmission, provided such
date was a business day (Tuesday-Friday) and delivered prior to 5:30pm Pacific Standard Time. Otherwise,
receipt of email communications shall be deemed to have occurred on the following business day. In the
case of U.S. Mail notice, notice shall be deemed to be received when delivered or five (5) business days
after deposit in the U. S. Mail. In the case of a nationally recognized overnight courier service, notice shall be
deemed received when delivered (written receipt of delivery).
SCAQMD:
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar,CA 917654178
Attn: Cynthia Ravenstein, MSRC Contracts Administrator,email: cravensteinpaomd.aov
CONTRACTOR:
City of Palm Springs
3200 E. Tahquitz Way
Palm Springs, CA 92264
Attn: Marcus Fuller,email: Marcus.Fuller0palmsprinasca.gov
17. INDEPENDENT CONTRACTOR - CONTRACTOR is an independent contractor. CONTRACTOR, its
Ricers, employees, agents, representatives, or subcontractors shall in no sense be considered employees
or agents of SCAQMD, nor shall CONTRACTOR, its officers, employees, agents, representatives, or
subcontractors be entitled to or eligible to participate in any benefits, privileges, or plans, given or extended
by SCAQMD to its employees. SCAQMD will not supervise, direct, or have control over, or be responsible
for, CONTRACTOR's or subcontractor's means, methods, techniques,work sequences or procedures, or for
the safety precautions and programs incident thereto, or for any failure by them to comply with any local,
state, or federal laws,or rules or regulations, including state minimum wage laws and OSHA requirements.
18. SUBCONTRACTOR APPROVAL- If CONTRACTOR intends to subcontract all or a portion of the work under
this Contract, then CONTRACTOR must first obtain written approval from SCAQMD's Executive Officer or
designee prior to subcontracting any work. Any material changes to the subcontract(s) that affect the scope
of work, deliverable schedule, and/or payment/cost schedule shall also require the prior written approval of
5 ��
Contract No.ML16038
the SCAQMD Executive Officer or designee. No subcontract charges will be reimbursed unless the required
approvals have been obtained from SCAQMD.
19. OWNERSHIP - Title and full ownership rights to any equipment purchased under this Contract shall at all
Eimes remain with CONTRACTOR.
20, SECURITY INTEREST - CONTRACTOR hereby grants SCAQMD a security interest in any and all
equipment purchased, in whale or in part, with funding provided by SCAQMD pursuant to this Contract.
CONTRACTOR acknowledges and agrees that SCAQMD shall have all lien rights as a secured creditor on
any and all equipment purchased in whole or in part by the CONTRACTOR, under this Contract or any
amendments thereto. The SCAQMD shall have ben rights in effect until the CONTRACTOR satisfies all
terms under the Contract, including but not limited to, the use and reporting requirements. Accordingly,
CONTRACTOR further agrees that SCAQMD is authorized to file a UCC filing statement or similar
security instrument to secure its interests in the equipment that is the subject of the Contract. In the
event CONTRACTOR files for bankruptcy protection, CONTRACTOR shall notify SCAQMD within 10
business days of such filing.
21. NON-DISCRIMINATION - In the performance of this Contract, CONTRACTOR shall not discriminate in
recruiting, hiring, promotion, demotion, or termination practices on the basis of race, religious creed, color,
national origin,ancestry, sex, age,or physical handicap and shall comply with the provisions of the California
Fair Employment& Housing Act (Government Code Section 12900, et sea.), the Federal Civil Rights Act of
1964 (P.L. 88-352) and all amendments thereto, Executive Order No. 11246 (30 Federal Register 12319),
and all administrative rules and regulations issued pursuant to said Acts and Order. CONTRACTOR shall
likewise require each subcontractor to comply with this clause and shall include in each such subcontract
language similar to this clause,
22. CITIZENSHIP AND ALIEN STATUS
A. CONTRACTOR warrants that it fully complies with all laws regarding the employment of aliens and
others, and that its employees performing services hereunder meet the citizenship or alien status
requirements contained in federal and state statutes and regulations including, but not limited to, the
Immigration Reform and Control Act of 1986(P.L. 99-603). CONTRACTOR shall obtain from all covered
employees performing services hereunder all verification and other documentation of employees'
eligibility status required by federal statutes and regulations as they currently exist and as they may be
hereafter amended. CONTRACTOR shall have a continuing obligation to verify and document the
continuing employment authorization and authorized alien status of employees performing services
under this Contract to insure continued compliance with all federal statutes and regulations.
Notwithstanding the above, CONTRACTOR, in the performance of this Contract, shall not discriminate
against any person in violation of 8 USC Section 1324b.
B. CONTRACTOR shall retain such documentation for all covered employees for the period described by
law. CONTRACTOR shall indemnify, defend, and hold harmless SCAQMD, its officers and employees
from employer sanctions and other liability which may be assessed against CONTRACTOR or
SCAOMD,or both in connection with any alleged violation of federal statutes or regulations pertaining to
the eligibility for employment of persons performing services under this Contract,
23. ASSIGNMENT AND TRANSFER OF EQUIPMENT
A. The rights and responsibilities granted hereby may not be assigned, sold, licensed, or otherwise
transferred by CONTRACTOR without the prior written consent of SCAQMD, and any attempt by
CONTRACTOR to do so shag be void upon inception.
6 13
Contract No.ML76036
B. CONTRACTOR agrees to obtain SCAQMD's written consent to any assignment, sale, license or transfer
of Equipment, if any, rigor to completing the transaction. CONTRACTOR shall inform the proposed
assignee, buyer, licensee or transferee (collectively referred to here as 'Buyer') of the terms of this
Contract. CONTRACTOR is responsible for establishing contact between SCAQMD and the Buyer and
shall assist SCAQMD in facilitating the transfer of this Contract's terms and conditions to the Buyer.
CONTRACTOR will not be relieved of the legal obligation to fulfill the terms and conditions of this
Contract untif and unless the Buyer has assumed responsibility of this Contract's terms and
conditions through an executed contract with SCAQMD,
24. NON-EFFECT OF WAIVER - The failure of CONTRACTOR or SCAQMD 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.
25. TAX IMPLICATIONS FROM RECEIPT OF MSRC FUNDS - CONTRACTOR is advised to consult a tax
attorney regarding potential tax implications from receipt of MSRC funds.
26. ATTORNEYS' FEES- In the event any action is filed in connection with the enforcement or interpretation of
this Contract, each party in said action shall pay its own attomeys'fees and costs.
27. FORCE MAJEURE-Neither SCAQMD nor CONTRACTOR shall be liable or deemed to be in default for any
delay or failure in performance under this Contract or interruption of services resulting, directly or indirectly,
from acts of God, civil or military authority, acts of public enemy, war, strikes, labor disputes, shortages of
suitable parts, materials, labor or transportation, or any similar cause beyond the reasonable control of
SCAQMD or CONTRACTOR.
28. 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.
29, HEADINGS - Headings on the clauses of this Contract are for convenience and reference only, and the
words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation,
construction,or meaning of the provisions of this Contract.
30. DUPLICATE EXECUTION -This Contract is executed in duplicate. Each signed copy shall have the force
and effect of an original.
31. 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
disputes under this Contract shall be Los Angeles County, California.
32. PRE-CONTRACT COSTS -Any costs incurred by CONTRACTOR prior to CONTRACTOR receipt of a fully
executed Contract shall be incurred solely at the risk of the CONTRACTOR. In the event that a formal
Contract is not executed, neither the MSRC nor the SCAQMD shall be liable for any amounts expended in
anticipation of a formal Contract. If a formal Contract does result, pre-contract cost expenditures authorized
7 14
Contract No.ML16038
by the Contract will be reimbursed in accordance with the Payment Schedule and payment provision of the
Contract.
33. CHANGE TERMS - Changes to any part of this Contract must be requested in writing by CONTRACTOR
and approved by MSRC in accordance with MSRC policies and procedures. CONTRACTOR must make
requests a minimum of 90 days prior to desired effective date of change. All modifications to this Contract
shall be in writing and signed by the authorized representatives of the parties. Fueling station location
changes shall not be approved under any circumstances.
34. PREVAILING WAGES — CONTRACTOR is alerted to the prevailing wage requirements of California Labor
Cade section 1770 at seq., and the compliance monitoring and enforcement of such requirements by the
Department of Industrial Relations ("DIR"). CONTRACTOR and all of CONTRACTOR's subcontractors must
comply with the California Public Works Contractor Registration Program and must be registered with the
DIR to participate in public works projects. CONTRACTOR shall be responsible for determining the
applicability of the provisions of California Labor Code and complying with the same, including, without
limitation, obtaining from the Director of the Department of Industrial Relations the general prevailing rate of
per diem wages and the general prevailing rate for holiday and overtime work, making the same available to
any interested party upon request, paying any applicable prevailing rates, posting copies thereof at the job
site and flowing all applicable prevailing wage rate requirements to its subcontractors. Proof of compliance
with these requirements must be provided to SCAQMD upon request. CONTRACTOR shall indemnify,
defend and hold harmless the South Coast Air Quality Management District against any and all claims,
demands,damages, defense costs or liabilities based on failure to adhere to the above referenced statutes.
35, ENTIRE CONTRACT - This Contract represents the entire agreement between CONTRACTOR and
SCAQMD. 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 authorized representative of the party against whom enforcement of
such waiver,alteration,or modification is sought,
36. AUTHORITY-The signator hereto represents and warrants that he or she is authorized and empowered and
has the legal capacity to execute this Contract and to legally bind CONTRACTOR both in an operational and
financial capacity and that the requirements and obligations under this Contract are legally enforceable and
binding on CONTRACTOR.
(THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK)
8 15
Contract No.ML16039
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 CITY OF PALM SPRINGS 40
By, By:
Dr,William A.Burke,Chairman,Governing Board Name:
Title:
Data. Dale:
ATTEST:
Saundra McDaniel,Clerk of the Board
By:
APPROVED AS TO FORM:
Kurt R.Wiese,General Counsel
By:
IIUSRCMaster6oilerp le
ReWsed December 16.2014
9 15
Attachment 1
Statement of Work
City of Palm Springs
Contract Number ML16038
1. Protect Elements
A. Purchase CNG-fueled Vehicles: The City of Palm Springs (hereinafter referred to as
"CONTRACTOR") is to purchase four heavy-duty compressed natural gas (CNG) on-road
vehicles, each equipped with a dedicated CNG engine as specified below. Each heavy-
duty vehicle must have a GVWR greater than 14,000 pounds. Each heavy-duty engine
must be certified by the California Air Resources Board at, or cleaner than, the 2010
heavy-duty engine emission standards of 0.2 g/bhp-hr for oxides of nitrogen (NOx) and
0.01 g/bhp-hr for particulate matter(PM).
Vehicles life Expectancy
(1) Passenger van 10 years
(1) Flatbed truck 15 years
(1) Dump truck 15 years
(1) Utility truck 10 years
B. Install Class II Bicycle Lanes: CONTRACTOR is also to install Class II bicycle lane (striped
lane for one-way bicycle travel adjacent to auto travel lanes) improvements along
approximately 4,000linear feet of roadway. Lanes are to be constructed on both sides of
the following roadway locations within the City of Palm Springs:
i. Barona Road from E. Palm Canyon Drive to E. Morongo Trail;
ii. E. Morongo Trail from Barona Road to S.Araby Drive;
Ili. Calle El Segundo from Satumino Road to E. Ramon Road;
iv. Mesquite Avenue from Vella Road to Gene Autry Trail; and
v. S. Palm Canyon Drive from Murray Canyon Drive to Acanto Drive.
C. Install Shared lane Markings: CONTRACTOR is also to install shared lane markings
(sharrows)which indicate to cyclists the proper position to ride within the travel lane and
alert motorists that the travel lane is to be shared with bicyclists along approximately
37,000 linear feet of roadway. Sharrow stencils are to be applied at least once every 250
feet on both sides of the following roadway locations within the City of palm Springs:
I. Mesquite Avenue from El Cielo Road to Vella Road;
IL N. Palm Canyon Drive from Alejo Road to Ramon Road;
Ili. N. Cerritos Road from E.Joyce Drive to Amado Road;
iv. E.Joyce Drive from N.Sunrise Way to N. Farrell Drive;
V. N. Farrell Drive from E.Joyce Drive to E. Racquet Club Road;
vi. 34th Avenue from Crossley Road to Marguerite Street;
vii. E.Amado Road from N.Sunrise Way to N. Farrell Drive;
viii. S.Camino Real from S. Calle Palo Fierro to E. Palm Canyon Drive;
Ix. S. Civic Drive from E.Tahquitz Canyon Way to E. Baristo Way;
X. Escoba Drive from El Cielo Road to E. Palm Canyon Drive;
A. E. Francis Drive from N. Indian Canyon Drive to N. Farrell Drive;
1 17
Attachment 1
Statement of Work
City of Palm Springs
Contract Number ML26038
xii. N. Hermosa Drive from E.Tachevah Drive to E.Arenas Road;
xiii. E. Mesquite Avenue from S. Palm Canyon Drive to S.Calle Palo Fierro;
xiv. E. Paseo Ell Mirador from N.Via Miraleste to N.Sunrise Way;
xv. Sunny Dunes Road from El Cielo Road to S.Gene Autry Trail;
xvi. E.Tamarisk Road from N. Palm Canyon Drive to N. Farrell Drive; and
xvii. Twin Palms Drive from S. Palm Canyon Drive to S. La Verne Way.
CONTRACTOR shall be reimbursed according to Attachment 2- Payment Schedule.
2. Operation Requirements and Reimbursement for Noncompliance-Vehicles
Vehicles are required to operate for a minimum of five years, but it is expected that the vehicles
will continue to operate for their entire life expectancy. CONTRACTOR is obligated to comply
with the geographical restriction requirements as follows:
A. Each of the vehicles funded under this Contract must accrue at least 85% of its annual
mileage or engine hours of operation within the geographical boundaries of the South
Coast Air Quality Management District for a period of no less than five (5)years from the
date the vehicle enters service(new vehicles) or returns to service (repowered vehicles).
Should CONTRACTOR deviate from or fail to comply with this obligation, CONTRACTOR
shall reimburse SCAQMD for a prorated share of the funds provided for the vehicle as
indicated in the table below:
5 year Operations Obligation Percentage of MSRC Funds
Termination Occurs to be Reimbursed
Within Year 1 100%
Between Years 1-2 80%
Between Years 2-3 60%
Between Years 3-4 40%
Between Years 4-5 20%
After Year 5 0%
B. The appropriate reimbursable amount shall be paid to SCAQMD within sixty (60) days
from the date the vehicle ceases to operate in accordance with the geographical
restriction.
C. Should CONTRACTOR sell, lease, transfer, assign or otherwise divest itself of the vehicles
during the five year period referred to above,notice shall be provided to SCAQMD no less
than 30 days preceding the sale, lease, transfer, or assignment is effectuated. The
agreement effectuating the sale, lease, transfer or assignment shall state that the
SCAQMD is an intended third-party beneficiary of the agreement and shall include the
following requirement: the obligation to accrue mileage within the South Coast Air
Quality Management District shall be a continuing obligation of the subsequent
purchaser, lessee,transferee,successor in interest, heir or assign and shall remain in full
force and effect until the expiration of the five year operation period. This obligation shall
2
Attachment 1
Statement of Work
City of Palm Springs
Contract Number ML16038
be passed down to any subsequent purchaser, lessee or transferee during this five year
term and SCAQMD shall be an intended third-party beneficiary of any subsequent
agreement. Upon receiving notice of any subsequent sale, lease,transfer, assignment or
other divestiture, SCAQMD may elect to either require the reimbursement specified
above,or require the subsequent purchaser,lessee,transferee or assignee to comply with
the continuing obligation to operate the vehicle for a period of no less than five (5)years
from the date the vehicle entered service (new vehicles) or re-service (re-powered
vehicles). Notice of SCAQMD's election of remedies shall be provided to CONTRACTOR
and any subsequent purchaser, lessee,transferee or assignee in a timely fashion.
3. Display of MSRC Logo
CONTRACTOR agrees to permanently display one MSRC decal in a prominent location on each
vehicle purchased pursuant to this Contract. Decals will be provided by SCAQMD upon
notification that each subject vehicle and/or station becomes operational. Decals are
approximately twelve (12) Inches in height and eighteen (18) inches in width (Note: a smaller
decal may be provided if CONTRACTOR demonstrates that application of the standard decal is
not feasible). CONTRACTOR shall maintain decal for life of equipment subject to this Contract.
Should any decal become damaged,faded,or otherwise unreadable,CONTRACTOR shall request
replacement decal from SCAQMD and apply new decal in the same or other prominent location.
SCAQMD shall not be responsible for damage to paint or other surfaces arising from application
or removal of decals.
4. Promotion
CONTRACTOR shall prepare and submit a proposed Public Outreach Plan to promote the MSRC's
co-funding of the vehicles and bicycle lane improvements. Acceptable outreach may include,but
Is not limited to, notices in CONTRACTOR mailings to residents, newspaper notices, flyers, and
Information'items at CONTRACTOR Board meetings and community events. The Public Outreach
Plan shall automatically be deemed approved 30 days following receipt by SCAQMD staff, unless
SCAQMD staff notify CONTRACTOR in writing of a Public Outreach Plan deficiency. CONTRACTOR
shall implement the approved Public Outreach Plan in accordance with the Project Schedule
below.
S. Reports
Quarterly Reports: Until vehicles are entered into service and bicycle lane improvements are
complete, CONTRACTOR shall provide quarterly progress reports that summarize the project
results to date including, but not limited to: tasks completed, issues or problems encountered,
resolutions implemented, and progress to date. Progress reports that do not comply will be
returned to the CONTRACTOR as inadequate.
Final Report: A Final Report shall be submitted by the CONTRACTOR in the format
provided by SCAQMD staff. Report shall include, at a minimum: a) an executive summary; and
b) a detailed discussion of the results and conclusions of this project. CONTRACTOR will identify
3 19
Attachment 1
Statement of Work
City of Palm Springs
Contract Number ML16038
any barriers encountered and solutions developed to overcome the barriers, and impact of
project on future alternative fuel and bicycle transportation projects.
6. Protect Schedule
CONTRACTOR shall comply with the increments of progress identified in the following chart.
The completion month for each task is based on the date of Contract execution.
Task Completion
Order vehicles Month 5
Select contractor to implement bicycle lane Month 6
Improvements
Submit Public Outreach Plan Month 7
Enter vehicles into service Month 9
Complete bicycle lane improvements Month 13
Implement Public Outreach Plan Month 15
Quarterly reports Months 4,7,and 10
Final Report Month 16
4 2Q
Attachment 2
Payment Schedule
City of Palm Springs
Contract Number ML16038
Cost Breakdown
Maximum CONTRACTOR
AB2766 AB2766 Other Additional
Project Discretionary Subvention Funds Project Co- Total Cost
Element Funds payable Funds Applied to Funding(not
underthls Match matched)
Contract Applied
$120,000(not
Purchase CNG- to exceed
fueled vehicles $30,000 per $100,000 $20,000 $35,000 $275,000
heavy-duty
vehicle)
Implement
Bicycle Lane $110,000 $0 $110,000 $0 $220,000
Improvements
Totals $230,000 $100,000 $130,000 1 $35,000 142LOOO
No funds shall be paid to CONTRACTOR pursuant to this Contract for a project element, until the
project element as described in Attachment 1 is completed and proof of completion is provided
to SCAQMD. If the project element described in Attachment 1 is not completed and satisfactory
proof of completion is not provided to SCAQMD,no monies for that project element shall be due
and payable to CONTRACTOR. However,reimbursement may be made for vehicles even If bicycle
lane improvements are not yet complete, or vice versa. Proof of completion shall include:
Vehicles
o Proof of vehicle delivery,vehicle acceptance, and placement of vehicle into service
o Documentation of the specific engine installed in the vehicle, including the year,
manufacturer, and model
Bicycle Lane Improvements
o Representative photos;
o a report signed by a responsible official certifying that the bicycle lanes have been
completed as described In Attachment 1; and
o invoice(s)from subcontractor(s)performing the construction.
If, at the completion of the Project,the expenditures are less than the Total Cost amount above,
the actual amount of AB 2766 Discretionary Funds reimbursed to CONTRACTOR shall be adjusted
on a prorated basis, as follows:
• For vehicles,the amount reimbursed to CONTRACTOR shall not exceed the actual amount
of AB 2766 Subvention and other funds applied, up to a maximum of $10,000 per
medium-duty vehicle and$30,000 per heavy-duty vehicle; and
5 j7
Attachment 2
Payment Schedule
City of Palm Springs
Contract Number ML16038
• For Bicycle Lane Improvements, the amount reimbursed to CONTRACTOR shall not
exceed the actual amount of AS 2766 Subvention and other funds applied.
Additional AS 2766 Discretionary Match Funds will not be available to fund project cost overruns.
Any project cost overruns must be funded from other than AS 2766 Discretionary Funds.
6 �-2