South Coast Air Quality/AB 2766 DMV Fee Funding 08South Coast Goan Transpesaon Contract No. MLO7O41
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Air Quality Management District Funding Po."°°m �MSR`
LOCAL GOVERNMENT MATCH PROGRAM CONTRACT
PARTIES - The parties to this Contract are the South Coast Air Quality Management District (hereinafter
referred to as "AQMD") whose address is 21865 Copley Drive, Diamond Bar, California 91765-4178, and the
City of La Quinta (hereinafter referred to as "CONTRACTOR") whose address is 78495 Calle Tampico, La
Quinta, California 92253.
2. RECITALS
A. AQMD 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). AQMD is authorized under State Health &
Safety Code Section 44225 (Assembly Bill (AB) 2766) to levy a fee on motor vehicles for the purpose of
reducing air pollution from such vehicles and to implement the California Clean Air Act.
B. Under AB 2766 the AQMD'S Governing Board has authorized the imposition of the statutorily set motor
vehicle fee. By taking such action the State's Department of Motor Vehicles (DMV) is required to collect
such fee and remit it periodically to AQMD.
C. AB 2766 further mandates that thirty (30) percent of such vehicle registration fees be placed by AQMD
into a separate account for the sole purpose of implementing and monitoring programs to reduce air
pollution from motor vehicles.
D. AB 2766 creates a regional Mobile Source Air Pollution Reduction Review Committee (MSRC) to
develop a work program to fund projects from the separate account. Pursuant to approval of the work
program by AQMD'S Governing Board, AQMD Board authorized a contract with CONTRACTOR for
services described in Attachment 1 - Statement of Work, expressly incorporated herein by this reference
and made a part hereof of this Contract.
E. CONTRACTOR has met the requirements for receipt of AB 2766 Discretionary Funds as set forth in
CONTRACTOR's Local Government Match Program Application dated May 4, 2007.
3. DMV FEES - CONTRACTOR acknowledges that AQMD cannot guarantee the amount of fees to be
collected under AB 2766 will be sufficient to fund this Contract. CONTRACTOR further acknowledges that
AQMD'S receipt of funds is contingent on the timely remittance by State's DMV. AQMD assumes no
responsibility for the collection and remittance of motor vehicle registration fees by DMV to AQMD in a timely
manner.
4. AUDIT - Additionally, CONTRACTOR shall, at least once every two years, or within two years of the
termination of the Contract if the term is less than two years, be subject to an audit by AQMD or its
authorized representative to determine if the revenues received by CONTRACTOR were spent for the
reduction of pollution from Motor Vehicles pursuant to the Clean Air Act of 1988. AQMD shall coordinate
such audit through CONTRACTOR'S audit staff. If an amount is found to be inappropriately expended,
AQMD may withhold revenue from CONTRACTOR in the amount equal to the amount which was
inappropriately expended. Such withholding shall not be construed as AQMD'S sole remedy and shall not
relieve CONTRACTOR of its obligation to perform under the terms of this Contract.
Contract No. MLO7O41
5. REPORTING - CONTRACTOR shall submit reports to AQMD as outlined in Attachment 1 - Statement of
Work. AQMD reserves the right to review, comment, and request changes to any report produced as a
result of this Contract.
6. TERM - The term of this Contract is for seventy two (72) months from the date of execution by both parties,
unless terminated earlier as provided for in Clause 7 below entitled Termination, extended by amendment of
this Contract in writing, or unless all work is completed and a final report is submitted and approved by
AQMD prior to the termination date. No work shall commence prior to the Contract start date, except at
CONTRACTOR'S cost and risk, and no charges are authorized until this Contract is fully executed. Upon
written request and with adequate justification from CONTRACTOR, the MSRC Contracts Administrator may
extend the Contract up to an additional six months at no additional cost. Term extensions greater than six
months must be reviewed and approved by the MSRC.
TERMINATION - In the event any party fails to comply with any term or condition of this Contract, or fails to
provide the services in the manner agreed upon by the parties, including, but not limited to, the requirements
of Attachment 1 - Statement of Work, this shall constitute a material breach of the Contract. The
nonbreaching party shall have the sole and exclusive option either to notify the breaching party that it must
cure this breach within fifteen (15) days or provide written notification of its intention to terminate this
Contract with thirty (30) day's written notice. Notification shall be provided in the manner set forth in Clause
15 below, entitled - Notices. Termination shall not be the exclusive remedy of the nonbreaching party. The
nonbreaching party reserves the right to seek any and all remedies provided by law. AQMD will reimburse
CONTRACTOR for actual costs incurred (not to exceed the total Contract value), including all
noncancellable commitments incurred in performance of this Contract through the effective date of
termination for any reason other than breach.
EARLY TERMINATION — This Contract may be terminated early due to any of the following circumstances:
A. The vehicles or equipment become inoperable through mechanical failure of components or systems
directly related to the alternative fuel technology being utilized and such failure is not caused by
CONTRACTOR'S negligence, misuse, or malfeasance.
B. The fueling station becomes inoperable, and is either not technically able to be repaired, or is too costly
to repair, and such failure is not caused by CONTRACTOR's negligence, misuse, or malfeasance.
9. INSURANCE
A. CONTRACTOR shall furnish evidence to AQMD of workers' compensation insurance for each of its
employees, in accordance with either California or other states' applicable statutory requirements prior to
commencement of any work on this Contract.
B. CONTRACTOR shall furnish evidence to AQMD of general liability insurance with a limit of at least
$1,000,000 per occurrence, and $2,000,000 in a general aggregate prior to commencement of any work
on this Contract. AQMD shall be named as an additional insured on any such liability policy, and thirty
(30) days written notice prior to cancellation of any such insurance shall be given by CONTRACTOR to
AQMD.
C. CONTRACTOR shall furnish evidence to AQMD of 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, prior to commencement of any
work on this Contract. AQMD shall be named as an additional insured on any such liability policy, and
2
Contract No. ML07041
thirty (30) days written notice prior to cancellation of any such insurance shall be given by
CONTRACTOR to AQMD.
D. If CONTRACTOR fails to maintain the required insurance coverage set forth above, AQMD reserves the
right either to purchase such additional insurance and to deduct the cost thereof from any payments
owed to CONTRACTOR or terminate this Contract for breach.
E. All insurance certificates should be mailed to: AQMD Risk Management, 21865 Copley Drive, Diamond
Bar, CA 91765-4178. The AQMD Contract Number must be included on the face of the certificate.
F. CONTRACTOR must provide updates on the insurance coverage throughout the term of the Contract to
ensure that there is no break in coverage during the period of contract performance. Failure to provide
evidence of current coverage shall be grounds for termination for breach of Contract.
10. INDEMNIFICATION — CONTRACTOR agrees to hold harmless, defend, and indemnify, AQMD, its officers,
employees, agents, representatives, and successors -in -interest against any and all loss, damage, cost, or
expenses which AQMD, its officers, employees, agents, representatives, and successors -in -interest may
incur or be required to pay by reason of any injury or property damage caused or incurred by
CONTRACTOR, its employees, subcontractors, or agents in the performance of this Contract.
11. PAYMENT
A. AQMD shall pay CONTRACTOR a Firm Fixed Price of Twenty Five Thousand Dollars ($25,000) upon
completion of the project on a reimbursement basis. Any funds not expended upon early contract
termination or contract completion shall revert to the AB 2766 Discretionary Fund. Payment of charges
shall be made by AQMD to CONTRACTOR within thirty (30) days after approval by AQMD of an
itemized invoice prepared and furnished by CONTRACTOR.
B. An invoice submitted to AQMD for payment must be prepared in duplicate, on company letterhead, and
list AQMD'S contract number, period covered by invoice, and CONTRACTOR'S social security number
or Employer Identification Number and submitted to:
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765-4178
Attn: Cynthia Ravenstein, MSRC Contract Administrator
C. No funds shall be paid out to CONTRACTOR pursuant to this Contract, until the project described in
Attachments 1 and 2 is completed and proof of completion is provided to AQMD. If the project
described in Attachments 1 and 2 is not completed and satisfactory proof of completion is not provided
to AQMD, no monies shall be due and payable to CONTRACTOR. Proof of completion shall include a
Final Report detailing the project goals and accomplishments.
D. Additional AB 2766 Discretionary Match Funds will not be available to fund project cost overruns. Any
project cost overruns must be funded from other than AB 2766 Discretionary Funds.
E. The Firm Fixed Price amount of this Contract shall not exceed the total AB 2766 Funds applied to the
project described in Attachments 1, 2, and 3 of this Contract.
F. If, at the completion of the Project described in Attachment 1, the vehicle expenditures and/or
infrastructure expenditures are less than the Total Cost amount(s) contained in Attachment 2, the actual
amount of AB 2766 Discretionary Funds reimbursed to CONTRACTOR shall be adjusted on a prorated
basis as described in Attachment 2.
G. CONTRACTOR must submit final invoice no later than ninety (90) days after the termination date of this
Contract or invoice may not be paid.
Contract No. ML07041
12. MOBILE SOURCE EMISSION REDUCTION CREDITS (MSERCs)
A. The MSRC has adopted a policy that no MSERCs resulting from AB 2766 Discretionary Funds may be
generated and/or sold.
B. CONTRACTOR has the opportunity to generate MSERCs as a by-product of the project if a portion of the
air quality benefits attributable to the project resulted from other funding sources. These MSERCs, which
are issued by AQMD, are based upon the quantified vehicle miles traveled (VMT) by project vehicles or
other activity data as appropriate. Therefore, a portion of prospective MSERCs, generated as a result of
AB 2766 Funds, must be retired. The portion of prospective credits funded by the AB 2766 program, and
which are subject to retirement, shall be referred to as "AB 2766-MSERCs."
C. The determination of AB 2766-MSERC's is to be prorated based upon the AB 2766 program's
contribution to the cost associated with the air quality benefits. In the case where AB 2766 Discretionary
Funds are used to pay for the full differential cost of a new alternative fuel vehicle or for the retrofitting or
repowering of an existing vehicle, all MSERCs attributable to AB 2766 Discretionary Funds must be
retired. The determination of AB 2766-MSERCs for infrastructure and other ancillary items is to be
prorated based upon the AB 2766 program's contribution to the associated air quality benefits.
Determination of the project's overall cost will be on a case -by -case basis at the time an MSERC
application is submitted. AQMD staff, at the time an MSERC application is submitted, will calculate total
MSERCs and retire the AB 2766-MSERCs. CONTRACTOR would then receive the balance of the
MSERCs not associated with AB 2766 funding.
13. DISPLAY OF MSRC LOGO - CONTRACTOR agrees to permanently display one MSRC decal in a
prominent location on each vehicle purchased pursuant to this Contract. CONTRACTOR also agrees to
permanently display one MSRC decal in a prominent location on each fueling or charging station
constructed or upgraded pursuant to this Contract. Decals will be provided by MSRC upon notification that
subject fueling station equipment and/or vehicles are placed into service. Decals are approximately twelve
(12) inches in height and eighteen (18) inches in width (Note: a smaller decal may be provided if
CONTRACTOR demonstrates that application of the standard decal is not feasible). CONTRACTOR shall
maintain decal for life of vehicle or equipment subject to this Contract. Should any decal become damaged,
faded, or otherwise unreadable, CONTRACTOR shall request replacement decal from MSRC and apply new
decal in the same or other prominent location. MSRC shall not be responsible for damage to paint or other
vehicle surfaces arising from application or removal of decals. In addition, all promotional materials related to
the project, including, but not limited to, press kits, brochures and signs shall include the MSRC logo. Press
releases shall acknowledge MSRC financial support for the project.
14. ACCRUAL OF MILEAGE WITHIN SOUTH COAST AIR QUALITY DISTRICT — CONTRACTOR is obligated
to comply with the geographical restriction requirements as follows:
A. Each of the vehicles funded under this Contract must accrue at least 85% of its annual mileage or engine
hours of operation within the geographical boundaries of the South Coast Air Quality Management
District for a period of no less than five (5) years from the date the vehicle enters service (new vehicles)
or returns to service (repowered vehicles). Should CONTRACTOR deviate from or fail to comply with this
obligation, for reasons other than those stated in Clause B.A., CONTRACTOR shall reimburse AQMD for
a prorated share of the funds provided for the vehicle as indicated in the table below:
4
Contract No. MLO7O41
5 year Operations Obligation
Termination Occurs
Percentage of MSRC Funds
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 AQMD within sixty (60) days from the date the
vehicle ceases to operate in accordance with the geographical restriction. CONTRACTOR shall not be
responsible for any reimbursement to AQMD if the obligation is terminated as a result from one or more
reasons set forth in Clause 8.A.
C. Should CONTRACTOR sell, lease, transfer, assign or otherwise divest itself of the vehicles during the
five year period referred to in clause 14.A, notice shall be provided to AQMD no less than 30 days
preceding the sale, lease, transfer, or assignment is effectuated. The agreement effectuating the sale,
lease, transfer or assignment shall state that the AQMD is an intended third -party beneficiary of the
agreement and shall include the following requirement: the obligation to accrue mileage within the South
Coast Air Quality Management District shall be a continuing obligation of the subsequent purchaser,
lessee, transferee, successor in interest, heir or assign and shall remain in full force and effect until the
expiration of the five year operation period. This obligation shall be passed down to any subsequent
purchaser, lessee or transferee during this five year term and AQMD shall be an intended third -party
beneficiary of any subsequent agreement. Upon receiving notice of any subsequent sale, lease, transfer,
assignment or other divestiture, AQMD may elect to either require the reimbursement specified in Clause
14.A and 14.B, or require the subsequent purchaser, lessee, transferee or assignee to comply with the
continuing obligation to operate the vehicle for a period of no less than five (5) years from the date the
vehicle entered service (new vehicles) or re -service (re -powered vehicles). Notice of AQMD's election of
remedies shall be provided to CONTRACTOR and any subsequent purchaser, lessee, transferee or
assignee in a timely fashion.
15. NOTICES - Any notices from either party to the other shall be given in writing to the attention of the persons
listed below or to other such addresses or addressees as may hereafter be designated in writing for notices
by either party to the other. A notice shall be deemed received when delivered or three days after deposit in
the U.S. Mail, postage prepaid, whichever is earlier.
AQMD: South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765-4178
Attn: Cynthia Ravenstein, MSRC Contract Administrator
CONTRACTOR: City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attn: Therese Vella-Finorio
Contract No. MLO7O41
16. EMPLOYEES OF CONTRACTOR
A. CONTRACTOR warrants that it will employ no subcontractor without written approval from AQMD.
CONTRACTOR shall be responsible for the cost of regular pay to its employees, as well as cost of
vacation, vacation replacements, sick leave, severance pay and pay for legal holidays.
B. CONTRACTOR shall also pay all federal and state payroll taxes for its employees and shall maintain
workers' compensation and liability insurance for each of its employees.
C. CONTRACTOR, its officers, employees, agents, or representatives shall in no sense be considered
employees or agents of AQMD, nor shall CONTRACTOR, its officers, employees, agents, or
representatives be entitled to or eligible to participate in any benefits, privileges, or plans, given or
extended by AQMD to its employees.
D. CONTRACTOR warrants that it has no interest and shall not acquire any interest, direct or indirect,
which would conflict in any manner or degree with the performance of services required to be performed
under this Contract. CONTRACTOR further represents that in performance of this Contract, no person
having any such interest shall be employed by CONTRACTOR or any subcontractor.
17. NON-DISCRIMINATION - In the performance of this Contract, CONTRACTOR shall not discriminate in
recruiting, hiring, promotion, demotion, or termination practices on the basis of race, religious creed, color,
national origin, ancestry, sex, age, or physical handicap and shall comply with the provisions of the
California Fair Employment & Housing Act (Government Code Section 12900, et sea.), the Federal Civil
Rights Act of 1964 (P.L. 88-352) and all amendments thereto, Executive Order No. 11246 (30 Federal
Register 12319), and all administrative rules and regulations issued pursuant to said Acts and Order.
CONTRACTOR shall likewise require each subcontractor to comply with this clause and shall include in
each such subcontract language similar to this clause.
18, COMPLIANCE WITH APPLICABLE LAWS - CONTRACTOR agrees to comply with all federal, state, and
local laws, ordinances, codes and regulations and orders of public authorities in the performance of this
Contract and to ensure that the provisions of this clause are included in all subcontracts.
19. ASSIGNMENT - The rights granted hereby may not be assigned, sold, licensed, or otherwise transferred by
either party without the prior written consent of the other, and any attempt by either party to do so shall be
void upon inception.
20. NON -EFFECT OF WAIVER — CONTRACTOR'S or AQMD'S failure to insist upon the performance of any or
all of the terms, covenants, or conditions of this Contract, or failure to exercise any rights or remedies
hereunder, shall not be construed as a waiver or relinquishment of the future performance of any such
terms, covenants, or conditions, or of the future exercise of such rights or remedies, unless otherwise
provided for herein.
21. 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 attomeys' fees and
costs.
22. FORCE MAJEURE - Neither AQMD nor CONTRACTOR shall be liable or deemed to be in default for any
delay or failure in performance under this Contract or interruption of services resulting, directly or indirectly,
Contract No. MLO7041
from acts of God, civil or military authority, acts of public enemy, war, strikes, labor disputes, shortages of
suitable parts, materials, labor or transportation, or any similar cause beyond the reasonable control of
AQMD or CONTRACTOR.
23. 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.
24. 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.
25. DUPLICATE EXECUTION - This Contract is executed in duplicate. Each signed copy shall have the force
and effect of an original.
26. 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.
27. PRECONTRACT COSTS - Any costs incurred by CONTRACTOR prior to CONTRACTOR receipt of a fully
executed Contract shall be incurred solely at the risk of the CONTRACTOR. In the event that a formal
Contract is not executed, neither the MSRC nor the AQMD shall be liable for any amounts expended in
anticipation of a formal Contract. If a formal Contract does result, precontract cost expenditures authorized
by the Contract will be reimbursed in accordance with the cost schedule and payment provision of the
Contract.
28. CHANGE TERMS - Changes to any part of this Contract must be requested in writing by CONTRACTOR,
submitted to AQMD and approved by MSRC in accordance with MSRC policies and procedures.
CONTRACTOR must make such request a minimum of 90 days prior to desired effective date of change. All
modifications to this Contract shall be in writing and signed by both parties.
29. ENTIRE CONTRACT - This Contract represents the entire agreement between the parties hereto related to
CONTRACTOR providing services to AQMD and there are no understandings, representations, or
warranties of any kind except as expressly set forth herein. No waiver, alteration, or modification of any of
the provisions herein shall be binding on any party unless in writing and signed by the party against whom
enforcement of such waiver, alteration, or modification is sought. The Statement of Work - Attachment 1,
The Payment Schedule - Attachment 2, and Supporting Documentation - Attachment 3, are incorporated by
reference herein and made a part hereof.
30. 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.
Contract No. ML07041
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:
Dr. illiam A. Burke, Chairman, Governing Board
Date: hlot,
ATTEST:
Saundra McDaniel, Clerk of the Board
B:
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APPROVED AS TO FORM:
Kurt R. Wiese, District Counsel
Updated 03112108
CITY OF LA QUINTA
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Attachment 1
Statement of Work
City of La Quinta
Hereinafter Referred to as CONTRACTOR
Contract Number ML07041
Project Description
CONTRACTOR will purchase one heavy-duty vehicle as specified below.
Statement of Work
Vehicles
CONTRACTOR shall purchase one heavy-duty compressed natural gas (CNG) vehicle
as follows:
Vehicle
Life
Hours Per Year
Expectancy
Street sweeper, with gross vehicle weight
rating greater than 14,000 pounds,
5 years
874
equipped with dedicated CNG engine
Each model year 2006 or earlier engine must be certified to a low -emission or optional
NOX standard by the California Air Resources Board (CARB). Each model year 2007 or
later CNG engine must have a CARB NO, certification at least 30% lower than the
comparable diesel -fuel engine. AQMD staff shall be the final arbiters of comparability
between engines.
CONTRACTOR shall be reimbursed for vehicle according to the costs stated in
Attachment 2 — Payment Schedule.
Promotion
CONTRACTOR shall prepare and submit a proposed Public Outreach Plan to promote
the acquisition of the MSRC co -funded vehicle. Acceptable outreach may include, but
is not limited to, notices in CONTRACTOR mailings to residents, newspaper notices,
flyers, and information items at CONTRACTOR Board meetings and community events.
The Public Outreach Plan shall automatically be deemed approved 30 days following
receipt by AQMD staff, unless AQMD staff notify CONTRACTOR in writing of a Public
Outreach Plan deficiency. CONTRACTOR shall implement the approved Public
Outreach Plan in accordance with the Project Schedule below.
Project Schedule (based on date of Contract execution)
Task
Completion
Order vehicle
Month 3
Submit Public Outreach Plan
Month 7
Take delivery and place vehicle in
service
Month 10
Implement Public Outreach Plan
Month 11
Quarterly reports
Months 4, 7 and 10
Final Report
Month 12
Hardware: CNG-fueled vehicle as listed above.
Attachment 1
Statement of Work — continued
City of La Quinta
Hereinafter Referred to as CONTRACTOR
Contract Number ML07041
Reports
Quarterly Reports: Until all subject vehicles are entered into service, CONTRACTOR
shall provide quarterly progress reports that summarize the project results to date
including, but not limited to: tasks completed, issues or problems encountered,
resolutions implemented, and progress to date. Progress reports that do not comply will
be returned to the CONTRACTOR as inadequate.
Final Report: A Final Report shall be submitted by the CONTRACTOR in the
format provided by AQMD staff. Report shall include, at a minimum: a) an executive
summary; and b) a detailed discussion of the results and conclusions at this project.
CONTRACTOR will identify any barriers encountered and solutions developed to
overcome the barriers, and impact of project on future alternative fuel projects.
In the event the CONTRACTOR files for bankruptcy or becomes insolvent or
discontinues this project, no items revert to the AQMD for disposition into the AB 2766
Discretionary Fund account.
Attachment 2
Payment Schedule
City of La Quinta
Hereinafter Referred to as CONTRACTOR
Contract Number ML07041
Cost Breakdown
Local Gov't
Other Funds
Purchase
Total MSRC Costs
Funds
Applied
Total Cost
Category
Applied
Heavy Duty
$25,000
$217,000
$0
$242,000
CNG Vehicles
CONTRACTOR shall be reimbursed according to the amounts stated above per vehicle
upon proof of vehicle delivery, vehicle acceptance, and placement of vehicle into
service. Documentation of the specific engine installed in the vehicle, including the
year, manufacturer, and model, must accompany each request for reimbursement.
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, so that the amount reimbursed to
CONTRACTOR shall not exceed the amount of local funds applied, up to a maximum of
$25,000 per heavy-duty vehicle.
Attachment 3
Supporting Documentation
City of La Quinta
Hereinafter Referred to as CONTRACTOR
Contract Number ML07041
The supporting documents attached hereto as Attachment 3, represent obligations of
the CONTRACTOR. Nothing herein shall be construed as an assumption of duties or
obligations by the AQMD or granting any rights to third parties against the AQMD.
1. Proof of Insurance.
!�L? 2 9
CALIFORNIA
A
August 27, 2007
Mr. Bret Plumlee, Assistant City Manager
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Dear Mr. Plumlee:
On July 3, 2007, the California JPIA mailed your agency's Certificate of Liability Protection for the
2007-2008 coverage period to your agency's risk manager. If applicable, a Certificate of Workers'
Compensation Protection was also mailed.
This mailing includes the Liability Program Memorandum of Coverage (MOC) effective July 1, 2007,
for you to share with your agency's legal counsel. Please note that the definition of Protected
Contract, Section C (page 11) has been clarified as follows:
AP rotected Contract may cover an architect, engineer, or surveyor for his or her role as a Public Official, except for
the application of paragraphs B.(i) and B.(ii) below. Protected Contracts may apply to contract public works
directors, building officials, planning directors, City Managers, city attorneys, city prosecutors, redevelopment
directors, or other contracted Public Officials for occurrences arising out of thew official duties, but this coverage
applies only to the named contract Public Official and does not extend to other individuals within the contractor's firm.
It is important to note that while the MOC is a description of the self-insurance program, the excess
liability insurance layers may contain differences in insuring agreements, definitions, exclusions, and
conditions. This page on our website, http://www.cipia.orgt4dcgi/resources/coverage.shtmi, contains
the summaries of all of the programs available through the California JPIA for your reference. These
programs include: General Liability, Workers' Compensation, Property, Pollution Legal Liability,
Crime Coverage, and Special Events.
If you have questions, please contact Beth Lyons, Assistant Executive Officer, or me at (562) 467-
8700. You may also email us atjshull@cjpia.org orblyons@cjpia.org.
Sincerely,
Jonathan R. Shull
Executive Director
Enclosure
Distribution (with enclosure): California JPIA Director, City Manager, Risk Manager
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
8081 MOODY STREET, LA PALMA, CA 90623 TEL (562) 467-8700 FAX (562) 860-4992
To:
From:
Date:
Subject:
CALIFORNIA JPIA
MEMORANDUM
California JPIA Risk Man
Jonathan Shull, Executive
July 3, 2007
Certificates of Coverage for July 1, 2007 — June 30, 2008
Enclosed is your agency's Certificate of Liability Protection for the 2007-2008 coverage period
and, if applicable, your agency's Certificate of Workers' Compensation Protection for the same
coverage period.
In the next few weeks, a package will also be mailed to you, your City/Town Manager or
Executive Director, and your agency's California JPIA Director. The package will include
coverage summaries of all of the programs available through the CnLEFoxNa JPIA. Programs
include: General Liability, Workers' Compensation, Property, Pollution Legal Liability, Blanket
Fidelity Bond, and Special Events. The mailing will also include the Liability Program's
Memorandum of Coverage for the coverage period beginning July 1, 2007.
Please contact me at (562) 467-8787 or at jon@cjpia.org if you have questions.
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COVER PAGE
MEMORANDUM OF LIABILITY COVERAGE
FOR THE
gALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of La Quinta
MAILINGADDRESS: 78495 Calle Tampico
La Quinta, CA 92253
PROTECTION LIMITS: Primary layer: $5,000,000
$15,000,000 — Land Subsidence Only
PROTECTION PERIOD: From July 1, 2007 at 12:01 a.m. Pacific Time until
superseded or terminated.
This Memorandum is.a description of the terms and conditions of the Program through which
certain specified and limited self -insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South El Monte V.
Southern California Joint Powers Insurance Authority (1995), the pooling of self -insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
CALIFORNIAMIA
r
LIABILITY COVERAGE SUMMARY
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
PROTECTION LIMITS:
All covered claims other than subsidence:
Primary Layer (California JPIA SIR): $5,000,000 Per Member Per Occurrence
Coverage Details: California JPIA Memorandum of Coverage
Annual Aggregate: None
Excess Layers: $45,000,000 Per Member Per Occurrence
Coverage Details: Each Respective Excess Insurer Policy*
Annual Aggregate: $45,000,000 Per Member (products/completed
operations only)
Subsidence:
Primary Layer (California JPIA SIR): $15,000,000 Per Member Per Occurrence
Coverage Details: California JPIA Memorandum of Coverage
Annual Aggregate: None
Excess Layer:
Coverage Details:
Annual Aggregate:
PROTECTION PERIOD:
$10,000,000 Per Member Per Occurrence
Each Respective Excess Insurer Policy*
$10,000,000 Per Member
From July 1, 2007 at 12:01 a.m. Pacific Time until superseded or terminated.
THE ABOVE IS A SUMMARY OF THE LIABILITY LIMITS AVAILABLE TO
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY MEMBERS FOR
COVERED OCCURRENCES. IT DOES NOT MODIFY THE MEMORANDUM OF
COVERAGE, NOR THE EXCESS INSURANCE DOCUMENTS.
*Note thm the Memorandum of Coverage and each cwm haMty huwwzoe kw may contain d7Jjenvrees tm inswing agreements, dgEiftwn&
ezdwi w.andeon&1ow Forfafieaveregedetags.seethe Memorandumofcoverogeandfadfvuudpoitctes.
Revised 8/2"7
/NA&I
Clean Transportation
Funding from the MSRC
Mobile 59uroe Air Pollution ReducBon Review committee
21865 Copley Drive
Diamond Bar
CA 91765
909.396.3269
fax 909.396.3682
POLICY ON CONTRACT MODIFICATIONS
SCOPE CHANGES, EXTENSIONS, AND COST REALLOCATIONS
I 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
i 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 the
consideration and approval.
i' 2. Contract extensions and scope changes must be submitted by 9:00 a.m. on the first Monday
of the month to be considered by the MSRC-TAC and MSRC for that month. Requests
received after the first Monday 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.
3. Extension requests and scope changes will be considered by the MSRC-TAC and MSRC on
a case -by -case basis. An option clause shall be included in all contracts that will allow
MSRC staff the ability to extent a contract an additional six months at no cost to the MSRC
or the contractor. All subsequent extensions will be brought to the MSRC for its
consideration.
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.
i 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. The MSRC shall
have the discretion to seek legal consideration for extension or requests granted under these
circumstances.
MEMBER ORGANIZATIONS: California Air Resources Board • Los Angeles County Metropolitan Transportation Authority • Orange County
Transportation Authority . Riverside County Transportation Commission . San Bernardino Associated Governments • South Coast Air Quality
Management District . Southern California Association of Governments • Regional Ridesharing Agency
4. 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.
5. 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.
6. 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 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
term and may not bill for work done after this date.
Adopted May 25, 1995
Amended November 1& 1999
2
/ 21865 Copley Drive
Diamond Bar
CA 91765
Clean Transportation 909.396.3269
Funding from the MSRC fax909.396.3682
Mobile Source Air Pollution Reduction Review Committee ttachment A
Policy to Terminate Contracts Due to Lack of Progress
or Response by Contractors
The intent of this policy is to discourage Contractors from failing to provide documentation of progress
made on 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, the
MSRC may recommend that the contract be terminated and funds be reallocated to other projects.
MSRC contracts require all contractors to submit progress reports within 15 days of the end of the
reporting period (quarterly or monthly based upon the type of project). Under this policy, failure to
submit progress reports within the allotted time may be considered a material breach and subject to
termination. If the Contractor fails to submit progress reports as required by the contract, the following
shall occur:
If after seven (7) days past the progress report due date, the Contractor fails to submit progress reports as
required by the contract, Contract Staff will notify the Contractor in writing of the delinquency and
request that the progress report be submitted within seven (7) days of the written notice.
For Monthly Reports: If the CONTRACTOR fails to submit a progress report for the second consecutive
month, the Contracts Administrator shall send a second written notice indicating that two previous
progress reports are due and that they must be submitted within 15 days. If the CONTRACTOR fails to
provide a report for a third consecutive month, the AQMD's Contracts Manager shall provide written
notice to the CONTRACTOR to cure the delinquency within 15 days of the notice or be subject to
termination within 30 days.
For Quarterly Reports: If the CONTRACTOR fails to submit a progress report, the Contracts
Administrator shall send a written notice indicating that the progress report is due and that it must be
submitted within 15 days. If the CONTRACTOR does not respond within the allotted time, the AQMD's
Contracts Manager shall provide written notice to the CONTRACTOR to cure the delinquency within 15
days of the notice or be subject to termination within 30 days.
Also, if the CONTRACTOR has a history of non-consecutive (three or more occasions) delinquent
progress reports, this may be considered a material breach of the contract and be grounds for immediate
termination of the contract. For example, if 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).
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 3/23/94
Amended 11/18/99
MEMBER ORGANIZATIONS. California Air Resources Board • Los Angeles County Metropolitan Transportation Authority • Orange County
Transportation Authority • Riverside County Transportation Commission • San Bernardino Associated Governments • South Coast Air Quality
Management District • Southern California Association of Governments • Regional Ridesharing Agency
Task l
Task 2
Task
Attachment A
Quarterly (or monthly) Progress Report
For Reporting Period of
Contract No. AB 2766/XXXXX
(Contractor's Name)
Contract Period — March 15, 2001 through June 30, 2005
Vehicle Procurement/Design and Engineering
A bus bid specification was prepared detailing vehicle design and performance
parameters, as well as technical quality assurance, and warranty requirements.
Percent Completed this Reporting Period: 0%
Percent Complete 100%
Bid Process
An Invitation for Bid (IFB) package was issued to perspective bus manufacturers
of alternative fuel buses. (Contractor) reviewed and evaluated all Requests for
Approval Equals submitted by each bus manufacturer. Bid opening was May 30,
2001.
Percent Completed this Reporting Period: 0%
Percent Complete 100%
Pre -Production Meetings
Pre -Production Meetings began in June of 2001, and were completed in August of
2001. Construction of the prototype bus has begun.
Percent Completed this Reporting Period:
Percent Complete
0%
100%
Attachment A
Task 4 Prototype Bus Production
Contractor has in place an inspection team consisting of one Warranty and
Equipment Mechanic and one Supervisor as required by the production process.
The pre -production prototype bus was completed in October 2001.
Percent Completed this Reporting Period: 0%
Percent Complete 100%
Task 5 Bus Production
Contractor has in place an onsite manufacturing inspection team which monitors
production quality and conformance to bus specifications. Once the production
buses are completed and presented for acceptance, the inspection team will
approve documents to allow for purchase and payment of buses.
Percent Completed this Reporting Period: 25%
Percent Complete 25%
Task 6 Service Preparation
Contractor has established a bus acceptance team to prepare new buses for
service. Each new bus is safety checked, cleaned, and function tested prior to
being placed into revenue service.
Percent Completed this Reporting Period: 13%
Percent Complete 13%
Task 7 Vehicle Performance Evaluation
New buses are assigned to designated service operating divisions for introduction
into Contractors fleet. Performance of vehicles is monitored and warranty
provisions of the contract are administered. This process is on -going throughout
the life of the bus and has no completion date. The following percentages
indicate buses presently in revenue service. While a number of new buses have
been placed in service, any performance evaluation at this point would be
Attachment A
premature. The buses, however, have not exhibited any evidence of major
problems or concerns.
Percent Completed this Reporting Period: 2%
Percent Complete 2%
Issues During Current Reporting Period:
1. Engine performance issues related to stalling have been addressed by the
manufacturer. The result has been a new engine electronic control module (ECM)
software release. In addition, testing is underway on a prototype fuel pressure
regulator.
2. Congestion at the fueling site was resolved by the addition and subsequent agreement
for use of a new fueling site adjacent to the central terminal.
Work Planned for Next Reporting Period:
I . Operational Evaluation of the in-service fleet will begin.
2. Contractor will continue to work with bus manufacturer and the engine manufacturer
to resolve any performance, reliability, or preventive maintenance issues that may
arise.
3. Contractor will also continue to work with the bus manufacturer to resolve various
issues related to the in-service fleet.
4. Engineering staff will continue with the full-time inspection and acceptance process
at the production facility.
For additional information or questions, please contact:
4
Letter of Certification
This letter certifies that (PLEASE TYPE IN YOUR ORGANIZATION has received the
vehicles that have been partially funded through the above -mentioned AB2766 Discretionary
Fund Contract and those vehicles have been tested and placed into regular service.
Signature
Date
Please submit with all invoices for vehicle reimbursement
Crean Transportation
Funding from the MSRC
Mobile Source Air Pollution Reduction Review Committee
PROJECT SUMMARY (FINAL REPORT) FORMAT
For Selected AB 2766 Discretionary Fund Contracts
21865 Copley Drive
Diamond Bar
CA 91765
909,396.3269
fax 909.396.3682
For contracts from Fiscal Year (FY) 2004-05 and earlier Work Programs, the Final Report
must be submitted in both paper copy and electronic Microsoft Word formats. For
contracts from FY 2005-06 and later Work Programs, the Final Report only needs to be
submitted electronically. The first two numeric characters of the contract number indicate the
FY Work Program (e.g. contract #ML04999 would be from FY 2003-04).
The paper copy, if required, must be bound in a three (3) ring binder. Each page of the report must
be legible and suitable for photo production. All pages should be of standard size (8'/2 x 11).
Photo reduction is not acceptable for tables or figures; these should be presented on consecutive
8 % 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 Project Summary Report should include the following:
Title Paae — Include contract number, project title, contractor organization, and date,
and include the statement: "Prepared for the Mobile Source Air Pollution Review
Committee (MSRC) under the AB 2766 Discretionary Fund Work Program."
Acknowlednements — Only this section shall contain acknowledgements 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 (contract
number) and (project title) by (contractor organization) under the (partial)
sponsorship of the Mobile Source Air Pollution Reduction Review Committee
(MSRC). Work was completed as of (date)".
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 Source Air Pollution Reduction Review
Committee (MSRC) or the South Coast Air Quality Management District
(SCAQMD). 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."
MEMBER ORGANIZATIONS, California Air Resources Board • Los Angelgs County Metropolitan Transportation Authority . Orange County
Transportation Authority • Riverside County Transportation Commissionll. San Bernardino Associated Governments • South Coast Air Quality
Management District . Southern California Association of Governments . Regional Rideshoring Agency
Summary and Conclusions
1. Scope, purpose and background of the project.
2. Detailed description and analysis of the work performed during the course of the
project that led to the conclusions. Where appropriate, include a discussion of cost
projections and economic analyses. 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.
Use clear, concise statements to state recommended future actions and further
study that may be required.
4. To document completed project, a picture or pictures of vehicles and/or
infrastructure showing MSRC logo/decal must be included in the report. This section
shall also include copies of any media/outreach materials and/or news clippings
generated by the project.
Revised MOM
PTransportation
Funding from the MSRC
Mobile Source Air Pollution Reduction Review Committee
On-line Submission Instructions
Final Report, Photo(s) and Project Summary
21865 Copley Drive
Diamond Bar
CA 91765
909.396.3269
fax 909.396.3682
Final Reports shall be submitted electronically via the MSRC's well at
www.cleantransportationfunding.org. A separate upload of at least one project photo, and completion of
the on-line Project Summary, are also required as part of the Final Report submission. To use the on-line
submission features, follow these steps:
iFinal Reports
• Go to the MSRC website's homepage at www cleantransportationfunding oro.
I
I
Gesn Trouporltatton
Funding from the MSRC
• Select "Contractor Resources" from the blue box on the left side of the screen.
• On the Contractor Resources page, under Forms and Templates, go to Guidelines. Here you will
find a PDF version of the Final Report Format.
Final Report;P4f}
GUldehnes: Pleese follow these guidelines before submi lg your final Report
• Click Final Report to print out a copy of the Final Report Formats' guidelines.
• Following the format provided, prepare your Final Report including any charts, graphs, diagrams,
photographs, etc. and combine into a single Microsoft Word or Adobe Portable Document Format
(PDF) document.
To submit your Report:
• Go to the MSRC website's homepage.
MEMBER ORGANIZATIONS California Air Resources Board • Los Angles County Metropolitan Transportation Authority • Orange County
Transportation Authority • Riverside County Transportation Commission • San Bernardino Associated Governments • South Coast Air Quality
Management District • Southern California Association of Governments • Regional Ridesharing Agency
• Select "Contractor Resources" from the blue box on the left side of the screen.
• On the Contractor Resources page, under Forms and Templates, go to Final Report Submission:
Click Upload Report. You will be prompted to enter your MSRC contract number (be sure to
include any alpha characters, e.g. ML06888). Click " Browse" and locate the file you wish to
upload (maximum size 15 megabytes). Click the "Upload New PDF or Microsoft Word
Document" bar.
Upload - chcl} here tv submit Repo.
Report ; dx only:
To submit Photo(s) separately from the Final Report:
• On the Contractor Resources page, under Forms and Templates, go to Final Report Submission
and click Upload Pictures. You will be prompted to enter your MSRC contract number. Click
"Browse" and locate your file (maximum image width 800 pixels, maximum height 600 pixels,
maximum file size five megabytes). Click the "Upload New GIF, JPEG or TIFF Image" �bar. At
least one photo must be uploaded by this method, in addition to any photos incorporated in the
Final Report, so that a photo can be associated with the Project Summary discussed below. You
must upload photos individually.
Upload - clink nc _ to saarlithe 01du as of your =iga
Picture 8 tTIFFcrh ion;esoluLon dPG 80DXM0 M S4
To complete your Project Summary:
• On the Contractor Resources page, under Forms and Templates, go to Final Report Submission
and click Project Summary. You will be prompted to enter your MSRC contract number.
Pr i - Please smchte fnis ^nlme fcml as nar 0 Y-0,
Summary Finsl Revz t 9Jb:T 153199
• Enter your project information including your agency/company's address and contact information.
• Enter any co-sponsors or other project participants outside of your agency
• Complete the Project information requested for each category:
o Background - enter a brief background on the initiation of your project and your agency's
participation in clean air goals.
o Project Objectives - describe your project's objectives (i.e. to purchase five alternative
fuel vehicles to replace five gasoline powered vehicles, to build a fueling site, etc.)
o Implementation — describe what steps you took to implement your project (i.e. developed
plans and specifications, research, bidding process, etc).
o Status — describe the status of your project. (i.e. when did you complete the project? How
many vehicles did you deliver and when? Where are they used? Have you had any
issues with them? )
o Project Costs - what was your agency's cost to perform the project? Co-funders? What
did you receive from the MSRC?
o Results — what were the results of the project, emissions reductions?
o Project Expansion - do you have any recommendations for future replication of the
project?
Click Submit. Please note that only one Final Report per contract may be submitted on-line
at any one time. Should you submit a Final Report and then desire to revise it prior to its
approval by the MSRC, please contact MSRC Contracts Administration staff and ask us to
reject the Final Report.
If a Final Report contains materials that the contractor lacks the capability to submit electronically, the
entire Final Report must be submitted via a paper copy. Additionally, FY 2004-05 and earlier contracts
require submission of a paper copy. To submit a paper copy of the Final Report, the following is required:
The Final Report must be bound in a three-ring binder. Each page of the report must be legible and
suitable for photo production. All pages should be of standard size (8 '/2 x 11). IDo not reduce large
tables and figures to fit on the standard page; �hesO should be presented on consecutive 8 '/ x 11 pages
with each page containing one portion of the larger chart. Color images are acceptable; printing should
be in black.
STANDARD PHOTO RELEASE FORM
I hereby authorize the MSRC and AQMD to photograph, copy, publish, broadcast or otherwise distribute
photographs or likenesses of my place of business, vehicles, advertisements, promotional materials or
other work whether or not these materials are copyrighted, for use in the public service MSRC brochure,
placement on the MSRC website for informational purposes, and/or use in other MSRC outreach media.
I hold the copyright or I am the owner of the rights to the materials specified herein and am authorized to
grant the rights to such publication, reprint, broadcast or other distribution of the materials specified
herein.
If copyrighted, I grant this license and authorization for no fee and will not require any copyright attribution
for the described use for a public service and informational purpose.
I do not intend to waive any other rights to the reprint or representation or distribution of these materials
and reserve said rights.
If I require copyright attribution, I will provide notice of such copyright to AQMD/MSRC at the time this
authorization is executed.
I am empowered by and on behalf of the entity herein to consent and authorize the above -specified
Authorized Signature
Organization
Title
Date