BOARD MEETING DATE: October 2, 2009
AGENDA NO. 10

PROPOSAL:

Execute Truck Fleet Modernization Contracts for Carl Moyer Program

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-served basis and are submitted monthly to the Board for approval. This action is to execute fleet modernization contracts from the Carl Moyer SB 1107 Program Fund.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

Authorize the Chairman to execute contracts under the Carl Moyer Fleet Modernization Program from the “Year 9” Carl Moyer Program SB 1107 Fund (32) Account with the following entities:

1. Independent Transport LLC (AKA I.B.H. Independent LLC) to replace one Class 8, 1985 model year diesel truck (1985 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $60,144;
    
2. Wanda Releford (DBA Releford Trucking) to replace one Class 8, 1986 model year diesel truck (1986 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $82,043;
    
3. Karapet Petrosyan to replace one Class 8, 1990 model year diesel truck (1989 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $87,228;
    
4. Bryan Clemons to replace one Class 8, 1988 model year diesel truck (1988 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $81,187;
    
5. Gregory Littleton (DBA Littleton Trucking) to replace one Class 8, 1984 model year diesel truck (1983 engine) with one Class 8 diesel truck (2007 engine or newer) in an amount not to exceed $87,228; and
    
6. Cayetano Valenzuela Orozco to replace one Class 8, 1984 model year diesel truck (1983 engine) with one Class 8 diesel truck (2007 or newer) in an amount not to exceed $87,228.
    

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 heavy-duty truck fleet modernization contracts to replace pre-1990 trucks with model year 2007 or newer diesel trucks in an amount not to exceed $485,058 from the “Year 9” Carl Moyer SB 1107 Program Fund.

Table 1 provides details about the proposed projects. These projects were chosen based on the first-come, first-served criterion and the cost-effectiveness of NOx and PM reductions. Each 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 projects are approximately 5.2 tons/year and 0.44 tons/year, respectively.
 

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, 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 $485,058 for the proposed truck fleet modernization projects will be funded from the “Year 9” Carl Moyer Program SB 1107 Fund (32).
 

Attachment (DOC, 35k)

Table 1: Proposed “Year 9” Heavy-Duty Truck Fleet Modernization Projects