BOARD MEETING DATE: November 6, 2009
AGENDA NO. 11
PROPOSAL:
Amend Two Contracts and Execute Three New Contracts under Carl Moyer Program
SYNOPSIS:
On October 3, 2008 and September 11, 2009, the Board awarded several contracts to repower equipment under the Carl Moyer Program. Two of the awards were underestimated because the original cost quotations for parts and labor were lower than the actual costs to repower the equipment under the contracts. The cost-effectiveness of repowering the equipment remains below the Carl Moyer cost-effective threshold. In addition, staff has identified three additional projects that meet the Carl Moyer cost-effectiveness thresholds. This action is to amend two existing contracts for repower projects to provide additional funding, and execute three new contracts under the Carl Moyer Program.
COMMITTEE:
Technology, October 16, 2009, Recommended for Approval
RECOMMENDED ACTIONS:
Authorize the Chairman to amend the following Carl Moyer Program contracts with increased funding from the Carl Moyer Program SB 1107 Fund (32):
Christopher Lack Construction, originally approved on October 3, 2008, for an increase of $144,566 up to $886,035;
Sause Brothers, originally approved on September 11, 2009, for an increase of $91,592 up to $1,657,410.
Authorize the Chairman to execute the following contracts under the Carl Moyer Program SB 1107 Fund (32):
Fastrack Rentals for the repower of one single-engine scraper in an amount not to exceed $46,860;
Pacific Tractor West for the repower of one diesel forklift and two off-highway trucks in an amount not exceed $150,882;
D&S Equipment, Inc. for the repower of four single-engine scrapers in an amount not to exceed $502,676.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On October 3, 2008 and September 11, 2009, the Board awarded several contracts for on-and off-road projects under the Carl Moyer Program. Two of the contracts were granted to Christopher Lack Construction to repower six construction vehicles for $741,469 and Sause Brothers to repower six marine vessels for a total of $1,565,818. The awards need to be modified because the cost quotations for parts and labor for a construction vehicle repower were underestimated, and because of a software error in the Carl Moyer Program cost-effectiveness calculator.
On February 6, 2009, the Board approved the release of Program Announcement
PA # 2009-06 to solicit proposals for the “Year 11” Carl Moyer Program. The Program Announcement closed on May 1, 2009, and the Board awarded 40 contracts on September 11, 2009. Staff has been working with proponents of some of the remaining proposals to clarify or submit additional information such as hourly or fuel usage, repower cost quotations, and fleet size. This effort has resulted in three additional cost-effective repower projects.
Proposals
Funding Increase for Repower Projects
This action is to increase the original awards to Christopher Lack Construction and Sause Brothers by $144,566 and $91,592, respectively from the Carl Moyer Program SB 1107 Fund (32). Costs for parts and labor were underestimated for the repower of one of Christopher Lack fleet’s scraper. Staff believes that the increased costs are appropriate as unexpected challenges requiring additional labor and parts are typically encountered on first-time repowers. A software error in the Carl Moyer Program Calculator incorrectly assigned less funds to the Sause Brothers project and the fleet has requested they receive the correct amount of funding for the project.
The cost-effectiveness of each project with the recommended increases remains below the Carl Moyer cost-effective threshold. Staff requests these contracts be amended to cover these costs, totaling up to $236,158.
Three Additional Repower Projects
This action involves three projects to repower diesel powered off-road equipment with cleaner diesel engines. First, Fastrack Rentals proposes to repower a scraper powered by a Tier I engine with a Tier III engine. Second, Pacific Tractor West proposes to repower a forklift and two off-highway trucks powered by Tier 0 engines with Tier III engines. Finally, D&S Equipment seeks to repower four scrapers powered by Tier 0 engines with Tier III engines. This action is to execute three contracts under the Carl Moyer Program in an amount not exceed $700,418 from Carl Moyer Program SB 1107 Fund (32). Total NOx and PM reductions from the recommended projects are approximately 10 tons/year and 0.34 tons/year, respectively. The three applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008.
Benefits to AQMD
The successful implementation of the Carl Moyer Program will provide direct emissions reductions for both NOx and PM as required by the programs. Since the vehicles and equipment funded under these programs will operate for many years, the emissions reductions will provide long-term benefits.
Resource Impacts
Total funding for the amendment of the repower contracts and the execution of the three new contracts shall not exceed $936,576 from the Carl Moyer Program Fund, SB 1107 Account. There are sufficient funds in the Carl Moyer Program Fund for these activities.