BOARD MEETING DATE: February 6, 2009
AGENDA NO. 6

PROPOSAL:

Execute Contracts to Conduct 2009 Lawn Mower Exchange Program and Leaf Blower Exchange Program for Public Parks

SYNOPSIS:

At its September 5, 2008 meeting, the Board approved release of a Program Announcement to solicit competitive bids from cordless electric lawn mower manufacturers for the expanded 2009 Lawn Mower Exchange Program. This action is to (1) execute contracts with two manufacturers to conduct the 2009 Lawn Mower Exchange Program in an amount not to exceed $716,000; and (2) transfer $126,000 from the AQIP Special Revenue Fund to carry out the 2009 Lawnmower Exchange Program. This action also is to recognize potential additional funds from CARB under the AB 118 AQIP Program to purchase additional lawn mowers. Finally, the Leaf Blower Exchange Program will encourage public parks to exchange their old 2-stroke leaf blowers for new 4-stroke, low-emission and low-noise leaf blowers. This action is to execute a contract with Pacific Stihl to purchase 156 leaf blowers in an amount not to exceed $51,760.80 from the Rule 1309.1 Priority Reserve Mitigation Fees.

COMMITTEE:

Mobile Source, January 23, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the chairman to execute contracts with the following entities in an amount not to exceed $716,000, combined for both contracts and based on the number of mowers purchased from each contractor, from the AQIP Special Revenue Fund:

a. Neuton Lawnmower Company to purchase up to 4,000 cordless electric lawnmowers and to conduct “Mow Down Air Pollution 2009” Lawnmower Exchange events; and

b. Black & Decker Company to purchase up to 4,000 cordless electric lawnmowers and to conduct “Mow Down Air Pollution 2009” Lawnmower Exchange events.

The combined number of mowers purchased from both contractors with AQMD funding shall not exceed 4,000 units.

2. Transfer $126,000 from the AQIP Special Revenue Fund to Science & Technology’s FY 2008-09 Budget, Services and Supplies Major Object to solicit outside business and organizational support to assist in implementing AQMD’s “Mow Down Air Pollution 2009” program.

3. Recognize up to $842,000 from CARB under the AB 118 AQIP Program, place the funds in the AQIP Special Revenue Fund and authorize the purchase up to an additional 4,000 lawnmowers, should these funds become available.

4. Authorize the Chairman to approve a contract with Pacific Stihl to purchase 156 low-emission and low-noise leaf blowers for distribution to public parks in an amount not to exceed $51,760.80 from the Rule 1309.1 Priority Reserve Fund.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Lawn Mower Exchange Program
The Rule 2202 Air Quality Investment Program (AQIP) allows subject employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window or $125 triennially per employee. The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the Rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions.

At its November 7, 2008 meeting, the Board approved the use of $1,254,692 toward the 2009 Lawn Mower Exchange Program. In addition, $367,854 is available from the interest accrued during the FY 2007-08 for a total of $1,622,546. Staff recommends that $842,000 of the available funds be used to conduct the 2009 Lawn Mower Exchange Program.
 

Leaf Blower Exchange Program
Leaf blowers of the type and size used by commercial gardeners and municipal park maintenance staff typically have 2-stroke engines which release high levels of smog-forming pollutants. Over the past three years, the AQMD has offered a program for commercial gardeners to exchange their old blowers and buy new 4-stroke, low-polluting, low-noise blowers at the reduced price of $200 for a model valued at $469.95. However, even at the reduced price, many public parks were unable to make maximum use of the exchange opportunity.

The AQMD recognizes that switching to low-polluting blowers in public parks would help reduce exposure of children and adults to air pollutants. Therefore, staff recommends conducting a special exchange opportunity for public parks that would allow them to exchange their old blowers for low-emission blowers at zero cost.
 

Proposal

Lawn Mower Exchange Program
A typical gasoline lawnmower used weekly can produce as much pollution in a year as 43 new cars driven 12,000 miles each. For the past six years, the AQMD has conducted lawnmower exchange programs through which 24,579 gasoline-powered lawn mowers were traded in for cordless electric mowers that produce zero emissions. Staff proposes to carry out a similar exchange program in 2009, with a goal of exchanging up to 4,000 gasoline mowers for cordless electric lawn mowers.

In response to the Program Announcement issued on September 5, 2008, proposals from Neuton Lawn Mower Company and Black and Decker were received. Neuton Lawn Mower Company is offering two models, a 14 inch model used in prior exchanges and a new 19 inch model. The proposal from Black and Decker offers a 19 inch model. Table 1 shows a comparison of the specifications and costs of the two proposals.

In the previous exchanges only one model was available to individuals. This year AQMD intends to offer a choice of three mowers from both manufacturers. The mower offered over the last five years had a cutting width of 14 inches at a cost of $100 each. This year AQMD intends to offer the same popular model for $100 again, which reflects a discount of $179. In addition, the same discount of $179 will be offered to the other two models, providing customers the option of two larger models at a slightly higher cost. In total, up to 4,000 mowers will be exchanged, each mower costing AQMD $179. A maximum of $716,000 will be distributed between the two manufacturers, where the split in funding will be determined by the choices made by the customers.
 

AB 118 AQIP Matching Funds from California Air Resources Board (CARB)

On October 14, 2007, AB 118 (Nunez) was chaptered into law, which created the Air Quality Improvement Program (AQIP) under Section 44274 of Health and Safety Code administered by CARB, in consultation with the local air districts. The purpose of the program is to fund, upon appropriation by the Legislature, air quality improvement projects related to fuel and vehicle technologies to reduce criteria pollutants. The AQMD has requested for 1:1 matching funds under the CARB AB 118 AQIP to substantially increase the number of mowers that could be exchanged. Subject to CARB Board approval, should matching funds of up to $842,000 become available, an additional 4,000 mowers will be exchanged.
 

Leaf Blower Exchange Program
This proposal is to encourage public parks to exchange their old 2-stroke leaf blowers for new Stihl BR500 leaf blowers that have the lowest emission levels and lowest noise currently available in the market.

The proposal requests authorization to purchase up to 156 of these low-emission leaf blowers and distribute them free-of-charge to public parks within the AQMD’s jurisdiction. The leaf blowers will be granted on a first-come-first served basis through a registration process with the AQMD, subject to the per-county allocation discussed below. The parks will need to exchange an old but operable leaf blower for each new one they receive. The distribution of leaf blowers will be proportional to each county’s population within the AQMD, according to the information obtained from the official website of the Census Bureau, as shown in Table 2. No public park will receive more than two leaf blowers unless the program is undersubscribed in that county in which case parks in that county may receive additional leaf blowers until the county allocation is exhausted. If requests in a county remain undersubscribed even after parks in that county have received all the units they request, the remaining leaf blowers will be proportionally distributed among the other counties. This program will be funded from the Rule 1309.1 Priority Reserve Mitigation Fees, that are intended to be used for projects that reduce air pollution.
 

Outreach

Lawn Mower Exchange Program
In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ have been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/
“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
 

Sole Source Justification

Leaf Blower Exchange Program
Section VIII.B.2. of the Procurement Policy and Procedures identifies four major provisions under which a sole source award may be justified. This request for sole source award to Pacific Stihl qualifies under two of those provisions: B.2.c(2) - The project involves use of proprietary technology and B.2.d(1) – The project involves cost sharing by multiple sponsors.

• The Stihl Model BR500 leaf blower uses a proprietary 4-stroke engine technology, and is the lowest emission, lowest noise leaf blower on the market.
• This is the only leaf blower in its displacement category that exceeds CARB’s BLUE SKY criteria of 36 gms per kilowatt hour
• From the cost sharing perspective, STIHL was the only company that submitted a proposal offering a discounted price (20% off MSRP) for the AQMD’s 2008 leaf blower exchange program, which was approved by the Board in June 2008 and completed in August 2008. STIHL is offering the same model blower for this Municipal Park Maintenance Department Program at an even greater discount (29% off MSRP).

MSRP    $469.95
AQMD Discount  $138.15
AQMD Pays  $331.80
 

Benefits to AQMD

Lawn Mower Exchange Program
Table 3, illustrates the Rule 2202 AQIP emission bank status and the benefits from the 2009 Lawn Mower Exchange Program
 

Leaf Blower Exchange Program
This program will exchange up to 156 old 2-stroke leaf blowers for new 4-stroke blowers. The STIHL BR500 leaf blower has been certified by CARB at 19 grams of HC+NOx per kilowatt hour. This is about ¼ the level of the current emission standard (72 grams) that CARB has established for new leaf blowers of that size sold in California.

Based on a conservative assumption that leaf blowers are used 6 hours per week, this exchange will result in emission reductions of 12,566 pounds per year of HC+NOx. The cost effectiveness of this exchange program will be $1.32/pound. By comparison, the cost effectiveness of the AQMD’s 2008 electric lawn mower exchange program was $4.97/pound.
 

Resource Impact

Total cost of the proposed lawnmower exchange program and its implementation support shall not exceed $842,000 from the Rule 2202 Air Quality Investment Program Special Revenue Fund and $842,000 from AB 118 AQIP matching funds from CARB.

Total cost of the leaf blower exchange program shall not exceed $51,760.80, from the
Rule 1309.1 Priority Reserve Mitigation Fees Fund. Sufficient funds are available.
 

Attachments (DOC, 73k)

Table 1 - Comparison of Lawnmower Specifications and Pricing
Table 2 - Proposed Distribution of Leaf Blowers per County
Table 3 - Emissions Bank Status and Benefits