BOARD MEETING DATE: July 10, 2009
AGENDA NO. 8

PROPOSAL:

Approve Addition of Funds to School Bus Replacement Awards under Proposition 1B Lower-Emission School Bus Program and Approve New Grants for School Bus Retrofits

SYNOPSIS:

Under the Proposition 1B Lower-Emission School Bus Program, CARB had previously allocated $70.1 million to the AQMD. The Program, however, was suspended in late 2008 due to the state’s severe economic condition. CARB has now re-initiated the program with the release of $44.8 million to the AQMD. This action is to approve the addition of $945,462 from the Carl Moyer Program AB 923 Fund to the school bus replacement awards approved in July and December 2008, to cover the recently enacted one percent sales tax increase in the amount of up to $460,713, and to cover the shortfall in state bond funds in the amount of $484,749. Furthermore, these actions are to approve the retrofit of 16 school buses in the amount of $320,000 from state bond funds and approve a backup list for school bus replacements. In addition, this action is to approve $95,300 from the Lower-Emission School Bus Fund, including $39,539 in unspent U.S. EPA school bus grant funds to co-fund the purchase of PM trap cleaners.

COMMITTEE:

Technology, June 19, 2009. Less than a quorum was present for the discussion of this item; the Committee members present communicated their concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

1. Approve the transfer of $945,462 from the Carl Moyer Program AB 923 Fund (80) to the Proposition 1B Lower-Emission School Bus Fund (82) and the contract award modifications necessary to cover the additional costs associated with the school bus replacement awards approved in July and December 2008, as set forth in Table 1, from Fund 82 related to:
   1. The recently enacted one percent sales tax increase in the amount of up to $460,713; and
   2. The shortfall in state bond funds for the replacement of pre-1987 school buses in the amount of up to $484,749.
2. Authorize the Chairman to approve grant awards to the following public school districts to retrofit 16 school buses with Level 3 PM traps, as identified in Table 2, in an amount not to exceed $320,000 from the Proposition 1B Lower-Emission School Bus Fund (82):
   1. Lake Elsinore to retrofit 4 school buses in an amount not to exceed $80,000;
   2. Brea Olinda to retrofit 2 school buses in an amount not to exceed $40,000; and
   3. Fountain Valley to retrofit 10 school buses in an amount not to exceed $200,000.
3. Authorize the Chairman to approve additional funds to school districts as identified in Table 4, to co-fund the purchase of PM trap cleaners in an amount not to exceed $95,300, including $39,538 in unspent EPA school bus grant funds from the Lower-Emission School Bus Fund (33).
4. Authorize the Chairman to approve grants for school bus replacements from the backup list as set forth in Table 5, should additional funds become available from turn-back projects.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its March 2008 Board meeting, CARB approved the allocation of $70.1 million to the AQMD under the Proposition 1B - Lower-Emission School Bus Program. Subsequently, the AQMD Board at its July and December 2008 meetings approved the replacement of five pre-1977 and 299 pre-1987 school buses, which included $42,280,000 in Proposition 1B funds in addition to AB 923 funds. Furthermore, $9,664,500 was approved in December 2008, for the retrofit of 613 school buses from the Proposition 1B funds. At its December 5, 2008 meeting, the Board also approved the issuance of Program Announcement PA #2009-05 to solicit more applications for school bus replacements and retrofits. These projects have not yet been implemented pending the suspension of the Proposition 1B Program in December 2008 due to unavailability of funds. Now with availability of some bond funds issued by the state in April, the AQMD is set to receive $44,805,376 as its partial share of funding under the Proposition 1B Lower-Emission School Bus Program.

Proposal

The recent allocation of the newly available state bond funds is not adequate to fund all the school bus replacement and retrofit projects approved in July and December 2008. Hence, priority is given to all the school bus replacement and the retrofit projects for buses belonging only to public school districts. Furthermore, since the approval of these awards the state sales tax has increased by one percent. Therefore, this action is to approve the transfer of $945,462 from the Carl Moyer Program AB 923 Fund (80) to the Proposition 1B Lower-Emission School Bus Fund (82) to cover the additional costs of the school bus replacement awards approved in July and December 2008, and as set forth in Table 1, to cover:

1. The recently enacted one percent sales tax increase in the amount of up to $460,713; and
2. The shortfall in Proposition 1B funds for the replacement of pre-1987 school buses in the amount of up to $484,749.

In response to the Program Announcement PA #2009-05 issued on December 5, 2008, seven applications were received for school bus replacements, and three applications were received for retrofits from public school districts. This action is to authorize the Chairman to approve grant awards to three public school districts to retrofit 16 school buses with Level 3 PM traps as listed in Table 2, in an amount not to exceed $320,000 from the new bond funds to be placed in Proposition 1B Lower-Emission School Bus Fund (82).

CARB recently informed AQMD that the new bond funds issued this April cannot be used to fund the maintenance of PM traps. The new bond funds can be used to fund PM trap cleaners instead. As a result, some school districts receiving PM traps may not get adequate grants to maintain their traps. Hence additional funds are needed to enable all school districts listed in Tables 2 and 3 to purchase PM trap cleaners. This action is to authorize the Chairman to approve additional funds to enable the school districts identified in Table 4, to purchase PM trap cleaners in an amount not to exceed $95,300, including $39,539 in unspent EPA school bus grant funds from the Lower-Emission School Bus Fund (33).

Due to the limited availability of the new bond funds and the need to spend them expeditiously, it is also proposed to use the school bus replacement requests that were submitted in response to the Program Announcement PA #2009-05 as backup in case of turn back funds from awarded projects. This action is to authorize the Chairman to approve grants for school bus replacements from the backup list as set forth in Table 5, should additional funds become available from turn back projects. The school bus selections will be prioritized based on the age of the buses, with the oldest school bus being replaced first from the available pool.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the program announcement 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 program announcement was 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

The program announcement was also mailed directly to the Directors of Transportation at public school districts within the AQMD’s jurisdiction.

Benefits to AQMD

The successful implementation of the Lower-Emission School Bus Replacement and Retrofit Program will provide less polluting and safer school transportation for school children, and will reduce public exposure to toxic diesel particulate matter emissions.  In addition, these awards comply with AB 1390 (Firebaugh) requirements, such that it would reduce air pollution in low-income, high-diesel and high-PM10 exposure areas as well as enhance the objectives of the Environmental Justice and Children’s Health Initiatives adopted by the AQMD Board.

Resource Impacts

Total amount of additional funding for the replacement of school buses as set forth in Table 1, shall not exceed $945,462 from the Carl Moyer Program AB 923 Fund (80).

Total amount of new retrofit projects as set forth in Table 2, shall not exceed $320,000 from the Proposition 1B Lower - Emission School Bus Fund (82).

Total amount of additional funds for purchasing PM trap cleaners, as set forth in Tables 4, shall not exceed $95,300, including $39,539 from unspent EPA school bus grant funds from the Lower-Emission School Bus Fund (33).

Attachments (DOC, 167kb)

Table 1: School Bus Replacements Approved in July & December 2008 with Addition of 1% Sales Tax Increase and Proposition 1B Shortfall

Table 2: Recommended PM Trap Awards Funded with Bond Funds from Program Announcement PA #2009-05

Table 3: Level 3 PM Trap Awards Funded with Bond Funds to Public School Districts Approved in December 2008

Table 4: Additional Funds for PM Trap Cleaning Equipment from the Lower-Emissions School Bus Fund

Table 5: Backup List of Recommended School Bus Replacements