BOARD MEETING DATE: March 6, 2009
AGENDA NO. 5

PROPOSAL:

Execute Contracts for FY 2007-08 “Year 1” Proposition 1B Goods Movement Emission Reduction Program, Issue Program Announcement for Trucks Serving Intermodal Rail Yards and Locomotives and Recognize Funds from U.S. EPA to Execute Contract for Truck Retrofits

SYNOPSIS:

In May 2008, CARB allocated $24,037,500 to the AQMD under the “Year 1” Proposition 1B – Goods Movement Program to fund non-drayage trucks, trucks serving ports and intermodal rail yards and locomotive projects. In response to AQMD’s program announcement, 311 proposals were received requesting $63.6 million in funding. However, while the non-drayage truck category was heavily oversubscribed, the other two categories were undersubscribed. These actions are to a) execute contracts under the Proposition 1B – Goods Movement Program in an amount not to exceed $17,520,000, contingent upon receipt of funds from CARB, b) issue program announcement for the undersubscribed categories of locomotives and trucks serving ports and intermodal rail yards, and c) recognize $1 million in grant funds from U.S. EPA and execute contract for retrofit of heavy-duty trucks.

COMMITTEE:

Technology, February 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

  1. Authorize the Chairman to execute the following contracts from the Proposition 1B - Goods Movement Fund (81) contingent upon receipt of funds from CARB:

    Projects under the “Other Trucks and Truck Stop/Distribution Center Electrification” category
     
    1. Asbury Environmental for the retrofit of 77 Class 8, pre-2006 diesel trucks in an amount not to exceed $385,000;
    2. Gardner Trucking for the retrofit of 51 Class 8, pre-2006 diesel trucks in an amount not to exceed $255,000;
    3. Giese Trucking for the retrofit of 15 Class 8, pre-2006 diesel trucks in an amount not to exceed $75,000;
    4. AJR Trucking for replacement of 3 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    5. Budway Trucking and Warehousing for replacement of 10 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $500,000;
    6. California Bulk Inc. for replacement of 1 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $50,000;
    7. CEMAK Trucking for replacement of 23 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $1,150,000;
    8. Central California Leasing for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    9. CR&R Incorporated for replacement of 12 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $600,000;
    10. Dependable Highway Express for replacement of 3 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    11. Doug Martin Contracting Company for replacement of 4 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed  $200,000;
    12. Ecology Auto Parts for replacement of 42 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $2,100,000;
    13. F.L. Transportation Corp. for replacement of 7 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $350,000;
    14. Farmer Bros. Co for replacement of 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    15. FSI Transportation dba VSR Logistics for replacement of 31 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $1,550,000;
    16. G.Q. Quarles for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    17. G.S. Truck Lines, Inc. for replacement of 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    18. Ken Arnett for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    19. McAnally Enterprises for replacement of 5 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $250,000;
    20. Mega Fr8 Ways Inc. for replacement of 3 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    21. New Bern Transportation Corp. for replacement of 5 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    22. Norco Ranch Inc. for replacement of 6 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $300,000;
    23. Pacific Tank Lines, Inc. for replacement of 3 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    24. Ralphs Grocery Company for replacement of 23 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $1,150,000;
    25. Redwood Products, Inc. for replacement of 5 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $250,000;.
    26. Rockview Farms for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    27. RPM Consolidated Services for replacement of 5 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $250,000;
    28. RRM Properties Ltd for replacement of 87 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $4,350,000;
    29. Security Express for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    30. Soto Provision Inc. for replacement of 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    31. Stockton Enterprises Sales for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;.
    32. The Complete Logistics Company for replacement of 9 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $450,000;
    33. Transport Express for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    34. UPS for replacement of 30 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $1,500,000;
    35. Vernon Transportation Co. for replacement of 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    36. Westar Transport for replacement of 3 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $150,000; and
    37. XRT Express Reefer Transport, Inc. for electrification of 12 TRU docks in an amount not to exceed $85,000.

    Projects under the “Trucks Serving Ports and Intermodal Rail Yards” category

    1. Alvaro E. Melara for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    2. Carlos Gavidia for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    3. Carlos L. Macias for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    4. Daniel Valadez for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    5. Frederick Teigaga for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    6. Gonzalo Briones for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    7. Jorge M. Rodriguez for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    8. Jose Luis Tamayo for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    9. Jose Martinez for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    10. Juan Gallo for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    11. Manuel Amaya for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    12. Manuel Castro for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    13. Rene Perez for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000;
    14. Rodolfo Villa for the retrofit of 1 Class 8, pre-2006 diesel drayage truck in an amount not to exceed $5,000; and
       
  2. Authorize the Chairman to execute the following contracts as back-up projects under the “Other Trucks and Truck Stop/Distribution Center Electrification” category, in the ranking order as approved by CARB, should funds become available from turn-back projects:
     
    1. Budway Trucking and Warehousing for replacement of up to 10 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $500,000;
    2. California Bulk Inc. for replacement of 1 Class 8, pre-2003 diesel truck with Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    3. Cardenas Markets Inc. for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    4. Dependable Highway Express for replacement of up to 3 Class 8, pre-2003 diesel trucks with a Class 8, 2008 or newer trucks in an amount not to exceed $150,000;
    5. Doug Martin Contracting Company for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    6. Ecology Auto Parts for replacement of up to 16 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $800,000;
    7. FL Transportation for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    8. FSI Transportation Dba VSR Logistics for replacement of up to 9 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $450,000;
    9. Matich Corporation for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    10. McAnally Enterprises for replacement of 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    11. New Bern Transportation Corp. for replacement of up to 4 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $128,000;
    12. Norco Ranch Inc. for replacement of up to 10 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $500,000;
    13. Pacific Tank Lines, Inc. for replacement of up to 2 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $100,000;
    14. Ralphs Grocery Company for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    15. RPM Consolidated Services for replacement of up to 4 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $200,000;
    16. RRM Properties Ltd for replacement of up to 5 Class 8, pre-2003 diesel trucks with Class 8, 2008 or newer trucks in an amount not to exceed $250,000;
    17. Southern Materials LLC for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000;
    18. Transport Express for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer trucks in an amount not to exceed $50,000;
    19. UPS for replacement of up to 8 Class 8, pre-2003 diesel trucks with a Class 8, 2008 or newer trucks in an amount not to exceed $400,000; and
    20. Yamato Trucking for replacement of 1 Class 8, pre-2003 diesel truck with a Class 8, 2008 or newer truck in an amount not to exceed $50,000.
       
  3. Approve issuance of Program Announcement PA #2009-08 in the amount of $5.4 million to solicit projects for the “Year 1” Proposition 1B-Goods Movement Program, in the categories of locomotives, and trucks serving ports and intermodal rail yards.
     
  4. Upon receipt of award, recognize $1 million in grant funds from the U.S. EPA for heavy-duty truck retrofit projects in the General Fund and appropriate $1 million from the Undesignated Fund Balance to the FY 2008-09 Science and Technology Advancement Budget, Professional and Special Services Account.
     
  5. Authorize the Chairman to execute a contract with Gardner Trucking to retrofit 200 heavy-duty trucks in an amount not to exceed $1 million from the Science and Technology Advancement Budget, Professional and Special Services Account.
     

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In November 2006, California voters approved Proposition 1B which provided $1 billion and established the Goods Movement Emission Reduction Program. Out of the $250 million budgeted for FY 2007-08, CARB initially made $25 million available for “Early Grant” projects, of which the AQMD was awarded $13.8 million for drayage and non-drayage truck projects. On May 22, 2008, CARB approved an additional award of $24,037,500 to the AQMD from the remaining $225 million for on- and off-road emission reduction projects in specific source categories. In total, including CARB’s awards to the Ports of Los Angeles and Long Beach, the South Coast region has been allocated 55% of the FY 2007-08 Funds.

On June 6, 2008, Program Announcement PA #2008-10 was issued to solicit project proposals for the “Year 1” Proposition 1B – Goods Movement Program. A total of 311 proposals were received requesting $63.6 million in funding. However, while the “Other Trucks and Truck Stop/Distribution Center Electrification” category was heavily oversubscribed, the “Switcher Locomotives” and the “Trucks Serving Ports and Intermodal Rail Yards” categories were undersubscribed.
 

Proposal

Staff recommends that the Board approve the recommended truck retrofit and replacement projects as outlined in Tables 1 and 2 in an amount not to exceed $17,520,000 from the Proposition 1B Goods Movement Fund (81), contingent upon receipt of funds from CARB. All the proposals have been evaluated based on their emission reductions and cost-effectiveness according to CARB’s Proposition 1B Program guidelines adopted on February 28, 2008. The recommended projects are selected based on their ranking order. Total NOx and PM reductions from the recommended projects are approximately 704 tons per year and 45 tons per year respectively.

In order to facilitate the use of funds more expeditiously, staff proposes the Board’s approval of the backup projects as set forth in Table 3, should funds become available from turn-back projects. Projects from this table will be selected based on their ranking order.

Staffs-evaluated ranking orders for the projects listed in Tables 1, 2, and 3, must be approved by CARB prior to execution of contracts.

Staff also recommends that the Board approve the issuance of Program Announcement PA #2009-08 for solicitation of on- and off-road emission reduction projects with the remaining $5.4 million in the undersubscribed source categories of “Switcher Locomotives” and “Trucks Serving Ports and Intermodal Rail Yards.” The amount of funding for switcher locomotives is $3.0 million, and the amount of funding for truck projects is $2.4 million. In order to ensure a more successful response to the new program announcement, after the retrofit of all eligible truck projects, replacement of trucks serving intermodal rail yards and replacement of port trucks have been added as eligible second and third project priorities, respectively. These additions have been approved by CARB.

Finally, staff recommends that the Board recognize $1 million in grant funds from the U.S. EPA in the General Fund and appropriate $1 million from the Undesignated Fund Balance to the FY 2008-09 Science and Technology Advancement Budget, Professional and Special Services Account, for a truck retrofit project as shown in Table 4.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids will be 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 be notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the Program Announcement will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, 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.

As for the recommended awards, in addition to the regular outreach activities, on March 25, 2008, AQMD along with the Ports of Los Angeles and Long Beach held a community meeting in Long Beach to discuss potential Proposition 1B projects for FY 2007-08. AQMD has also worked closely with the California Trucking Association and the California Dump Truck Owners Association in soliciting applications for the program. In addition, AQMD retained the services of several consultants to assist in soliciting potential applicants.
 

Benefits to AQMD

The successful implementation of the proposed projects will reduce NOx and PM emissions in a cost-effective and expeditious manner to meet the goals of the 2007 AQMP. The above proposed vehicles and equipment will operate for many years in the South Coast region and provide long-term emission reductions.
 

Resource Impacts

Total funding for the recommended projects shall not exceed $17,520,000 from the Proposition 1B - Goods Movement Fund (81) contingent upon receipt of funds from CARB.

Total funding for retrofit of trucks with U.S. EPA grant funds shall not exceed $1 million from the Science and Technology Advancement Budget, Professional and Special Services Account.
 

Attachments (EXE, 1.2m)

  • Attachment 1: Table 1 - Recommended Awards under the “Other Trucks and TruckStop/Distribution Center Electrification” Grant.
  • Attachment 2: Table 2 - Recommended Awards under the “Trucks Serving Ports and Intermodal Rail Yards” Grant
  • Attachment 3: Table 3 - Backup Projects for the “Other Trucks and Truck Stop/Distribution Center Electrification” Grant.
  • Attachment 4: Table 4 - Heavy-Duty Trucks Retrofit Award with U.S. EPA Grant
  • Attachment 5: Program Announcement PA #2009-08


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URL: ftp://lb1/hb/2009/March/09035a.htm