BOARD MEETING DATE: April 2, 2010
AGENDA NO. 5
PROPOSAL:
Execute Contracts for FY 2008-09 “Year 11” Carl Moyer Program and SOON Provision and Amend Award under Carl Moyer Program
SYNOPSIS:
On November 6 and 20, 2009, proposals were received in response to the SOON Provision of the State In-Use Off-Road Vehicle Regulation and the “Year 11” Carl Moyer Air Quality Standards Attainment Program Solicitations, respectively. On February 5, 2010, the Board approved Carl Moyer and SOON projects for $7,855,537. Since then, staff has worked with applicants and completed evaluation of additional projects. These actions are to execute contracts under the Carl Moyer Program and the SOON Provision in an amount not to exceed $2,450,676 from the Carl Moyer Program Fund. Finally, this action is a no-cost amendment to a Carl Moyer Program award.
COMMITTEE:
Technology, March 19, 2010. Less than a quorum was present; the Committee Member present expressed her concurrence that this item be recommended for approval by the Board.
RECOMMENDED ACTIONS:
Authorize the Chairman to execute the following contracts under the Carl Moyer Program from the Carl Moyer Program SB 1107 Fund (32):
Covanta Long Beach Renewable Energy for the replacement of 1 off-road vehicle in an amount not to exceed $18,315;
Dowd Equipment for the repower of 1 off-road vehicle in an amount not to exceed $98,855;
Gregory Dowd Equipment for the repower of 1 off-road vehicle in an amount not to exceed $104,472;
Suchy Trenching for the repower of 6 off-road vehicles in an amount not to exceed $232,512;
R.A. Bell Equipment for the repower of 4 off-road vehicles in an amount not to exceed $819,456; and
Valley Vista Services for the repower of 4 vehicles in an amount not to exceed $190,650.
Authorize the Chairman to execute the following contracts under the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program SB 1107 Fund (32):
Mesa Contracting for the repower of 4 off-road vehicles in an amount not to exceed $508,270;
Burrtec Waste Industries for the repower of 3 off-road vehicles in an amount not to exceed $317,565; and
County Sanitation District of Los Angeles for the replacement of 2 off-road vehicles in an amount not to exceed $160,581.
Amend an award to Savage Transportation Management to purchase a switcher locomotive instead of repowering it.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In July and September 2009, the Board approved projects for the “Year 11”Carl Moyer Program. However, since the program was undersubscribed, new solicitations were issued under both the SOON Provision and the Carl Moyer Program, which closed on November 6 and 20, 2009, respectively. On February 5, 2010, the Board approved Carl Moyer and SOON projects for $7,855,537. Since then staff has worked with applicants and completed evaluation of additional projects that are now ready for implementation.
Proposal
This action is to approve the recommended projects as outlined in Table 1 under the Carl Moyer Program in an amount not to exceed $1,464,260 from the Carl Moyer Program SB 1107 Fund (32). Total NOx and PM reductions from the recommended projects are approximately 12.0 tons/year and 0.51 tons/year, respectively. This action is also to approve the recommended off-road projects, as outlined in Table 2, under the SOON provision in an amount not to exceed $986,416 from the Carl Moyer Program SB 1107 Fund (32). Total NOx reductions from the recommended projects is approximately 12.1 tons/year. Finally, this action is to amend an award to Savage Transportation Management approved by the Board on February 5, 2010, to purchase a switcher locomotive instead of repowering it due to an inadvertent mistake by staff in the Board Letter. The evaluation and cost-effectiveness calculation of the project was based on new purchase, and a total cost remains unchanged at $1,057,400.
Table 3 summarizes staff’s recommendation for the Carl Moyer Program and the SOON Provision awards in disproportionately impacted areas under the requirements of AB 1390. The total amount of projects funded in disproportionately impacted areas is $2,218,164, while the total amount of projects funded solely based on cost-effectiveness is $232,512. In summary, 90% of the projects are in disproportionately impacted areas.
The applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008. The proposed project with Valley Vista Services is a repower project subject to case-by-case approval by CARB. Staff is working closely with CARB to obtain the final approval, after which the contract will be executed.
Funding Distribution
Funding for projects has been recommended based on the priorities of the “Carl Moyer Program Guidelines under SB 1107 & AB 923” adopted by the Board on July 8, 2005. The priorities of the guideline are:
Goods Movement (no less than 40%)
Environmental Justice (no less than 50%)
Cost Effectiveness
Low Emission Engine/Vehicle Preference
Early Commercialization of Advanced Technologies/Fuels
Fleet Rules
School Buses
The Board’s allocation of funds for the Fleet Modernization Program and the implementation of the Proposition 1B Goods Movement Program by far exceeds the goods movement objective. Approximately 90% of the award dollars are recommended for projects under the Environmental Justice category in disproportionately impacted (DI) areas. In the evaluation process, staff recommended cost-effective proposals in the DI areas first with 50% of the available funding based on their ranking as described below. The remaining qualified DI proposals with all other qualified proposals were then recommended for funding based on cost effectiveness only.
Disproportionate Impact (DI) Point Ranking
The requirements of AB 1390 are implemented according to the following criteria.
All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the Program Announcement.
All projects were evaluated according to the following criteria to qualify for funding under DI requirements:
Poverty Level: All projects in areas where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, are eligible to be included in this category, and
PM Exposure: All projects in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. The highest 15% of PM concentration level is 46 micrograms per cubic meter and above, on an annual average, or
Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on MATES II estimates) will be eligible to be ranked in this category.
The maximum score is comprised of 40 percent for poverty level, and 30 percent each for PM and toxic exposures. Special circumstances exist in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty ranking from the adjacent on-shore areas was extended to the port since these populated areas are directly impacted by port activities.
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 Basin.
Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ has 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 website (http://www.aqmd.gov. Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
Benefits to AQMD
The successful implementation of the Carl Moyer Program and the SOON provision will provide direct emissions reductions for both NOx and PM as required by the programs. Since the vehicles and equipment funded under this program will operate for many years, the emissions reductions will provide long-term benefits.
Resource Impacts
Funding for the Carl Moyer Program and the SOON Provision shall not exceed $1,464,260, and $986,416, respectively from the Carl Moyer Program SB 1107 Fund (32).
Attachment (DOC, 39k)
Table 1 – Recommended Carl Moyer Program Awards with SB 1107 Funds
Table 2 – Recommended SOON Provision Awards with SB 1107 Funds
Table 3 – Funding Distribution of Recommended Carl Moyer Program and SOON Provision Awards