BOARD MEETING DATE: May 1, 2009
AGENDA NO. 4

PROPOSAL:

Execute Truck Fleet Modernization Contracts for Carl Moyer Program, Extend Fleet Modernization Program Announcement Deadline and Switch Source of Funds in Carl Moyer Program Contracts Between SB 1107 and AB 923 Funds

SYNOPSIS:

On April 4, 2008, the Board approved release of a Program Announcement to solicit projects at a cost not to exceed $6 million under the “Year 9” Carl Moyer Truck Fleet Modernization Program. These projects are evaluated on a first-come first-serve basis, and are submitted monthly to the Board for approval. These actions are to execute a fleet modernization contract from the Carl Moyer SB 1107 Program Fund and to extend the Fleet Modernization Program Announcement deadline to December 31, 2009. The final action is to switch source of funds in selected Carl Moyer Program contracts between SB 1107 and AB 923 funds to meet the “Year 9” Carl Moyer Program expenditure requirement.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute a contract with Y.E. Orshan Trucking to replace one Class 8, 1984 model year diesel truck (1984 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $77,377 from the Carl Moyer SB 1107 Program Fund (32).
2. Extend the Fleet Modernization Program Announcement (PA #2008-08) deadline from June 30, 2009, to December 31, 2009.
3. Switch source of funds for the following Carl Moyer contracts between the Carl Moyer SB 1107 Program Fund (32) and Carl Moyer AB 923 Program Fund (80):

a) From AB 923 Fund to SB 1107 Fund
Waste Management, contract #8144, for $3,290,385
Republic Services, contract #8121, for $1,032,130

b) From SB 1107 Fund to AB 923 Fund
Nationwide, contract #9182, for $300,000;
Nationwide, contract #9007, for $309,630;
Clean Street, contract #9009, for $309,630;
City of Culver City, contract #9199, for $360,000;
Green Fleet Systems, contract #9167, for $900,000;
Sukut, contract #9032, for $940,920;
LR Johnson, contract #8007, for $297,937;
Living Water Tower, contract #9284, for $524,528;
Ameron International, contract #7158, for $183,771;
Camel Equipment, contract #8025, for $146,945; and
Cerenzia Foods, contract #7176, for $49,154 of a $57,000 contract
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2005, a heavy-duty on-road fleet modernization program category was added to the Carl Moyer Program. The Fleet Modernization Program provides financial incentives to replace older high-polluting diesel trucks with newer lower emissions diesel and natural gas trucks. Having obligated all the funds under the “Year 8” Program, the Board, at its April 4, 2008 meeting, approved the issuance of the “Year 9” Fleet Modernization Program Announcement PA #2008-08 to solicit projects for up to $6 million from the Carl Moyer SB 1107 Program Fund .
 

Proposal

Staff recommends the Board’s approval to execute a heavy-duty truck fleet modernization contract to replace a pre-1990 truck with a model year 2007 or newer diesel truck in an amount not to exceed $77,377 from the “Year 9” Carl Moyer SB 1107 Program Fund .

Table 1, provides details about the proposed project. This project was chosen based on the first-come, first-serve criterion and the cost-effectiveness of NOx and PM reductions. The award is evaluated based on a maximum allowable truck cost of $90,000. The maximum award amount may be up to eighty percent of the truck base price, sales tax, excise tax, and GPS unit and installation cost, not exceeding the cost-effectiveness limit of the program. GPS units will be installed on these trucks under an AQMD contract with a GPS vendor, and the cost will be reimbursed by the Carl Moyer Program.

Total NOx and PM reductions from the recommended project is approximately 0.763 tons/year and 0.062 tons/year, respectively.

Staff also recommends extending the Fleet Modernization Program Announcement (PA #2008-08) deadline from June 30, 2009 to December 31, 2009. The reason for this extension is that there is still about $1.3 million available from the original $6 million funds that can be utilized by fleet operators of three or fewer trucks on a first-come first-serve basis.

The severe economic downturn has slowed down the progress of the Carl Moyer Program projects under executed contracts significantly, but so far CARB has not been considering the extension of the expenditure deadlines for these projects. This has put an enormous burden on both the contractors and the air districts. In an attempt to meet the expenditure requirements of the SB 1107 funds under the “Year 9” Carl Moyer Program by June 30, 2009, staff recommends to switch source of funds for the Carl Moyer Program contracts as outlined in Table 2, between the Carl Moyer SB 1107 Program Fund and the Carl Moyer AB 923 Program Fund. This action will facilitate paying for projects that will be completed on time from the SB 1107 fund, while the slower projects will be paid from the AB 923 fund, which is the AQMD’s local match and has more flexibility.
 

Outreach

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 Air Basin. Also, staff has held several public workshops in the South Coast Air Basin, advertised in a trade journal, and has used consultants for outreach purposes.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notices 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
 

Benefits to AQMD

The successful implementation of the proposed projects will help the AQMD significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner. The vehicles funded under this program will operate many years and will provide long-term emissions reductions.
 

Resource Impacts

The total project cost of $77,377 for the proposed truck fleet modernization projects will be funded from the “Year 9” Carl Moyer SB 1107 Program Fund.
 

Attachment (DOC, 85k)

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Project
Table 2: Carl Moyer Projects to Be Switched Between SB 1107 and AB 923 Funds