BOARD MEETING DATE: February 5, 2010
AGENDA NO. 16

PROPOSAL:

Execute Contracts for FY 2008-09 “Year 11” Carl Moyer Memorial Air Quality Standards Attainment Program and Surplus Off-Road Opt-In for NOx Provision of State In-Use Off-Road Vehicle Regulation

SYNOPSIS:

On November 6 and 20, 2009, proposals were received in response to the program announcements that were issued for the SOON Provision of the State In-Use Off-Road Vehicle Regulation and the “Year 11” Carl Moyer Air Quality Standards Attainment Program, respectively. These actions are to execute contracts under the Carl Moyer Program and the SOON Provision in an amount not to exceed $7,855,537 from the Carl Moyer Program Fund.

COMMITTEE:

Technology, January 22, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

  1. Authorize the Chairman to execute the following contracts under the Carl Moyer Program AB 923 Fund (80) totaling $4,842,295:

    1. Seaway Company of Catalina for the repower of 4 main and 2 auxiliary engines of two marine vessels in an amount not to exceed $511,700;

    2. Sauce Brothers for the repower of 10 auxiliary engines of six marine vessels in an amount not to exceed $141,104;

    3. Long Beach Happy Man Sportfishing for the repower of 2 main and 1 auxiliary engine of a marine vessel in an amount not to exceed $226,350;

    4. American Marine Corp. for the repower of 6 main and 1 auxiliary engine of three marine vessels in an amount not to exceed $329,020;

    5. Los Angeles Maritime Institute for the repower of 1 main engine of a marine vessel in an amount not to exceed $40,578;

    6. Thunderbird Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $215,150;

    7. Cat Tow, Inc. for the repower of 2 main engines of a marine vessel in an amount not to exceed $42,932;

    8. Island Water Charters for the repower of 1 main engine of a marine vessel in an amount not to exceed $48,673;

    9. City of Long Beach Police Department for the repower of 2 main engines of a marine vessel in an amount not to exceed $72,474;

    10. Diving Charters AUXs for the repower of 2 auxiliary engines of a marine vessel in an amount not to exceed $50,540;

    11. Calamar Kid for the repower of 2 main and 1 auxiliary engines of two marine vessels in an amount not to exceed $187,950;

    12. Fukuto/Redlew Charters for the repower of 2 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $273,500;

    13. Carnage Fish Company for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $126,350;

    14. Gregory J. Kuglis for the repower of 1 main engine of a marine vessel in an amount not to exceed $65,600;

    15. Ashley & Brinton for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $120,750;

    16. Los Angeles County Fire Department for the repower of 2 main engines of a marine vessel in an amount not to exceed $57,923;

    17. More Carnage, LLC for the repower of 2 main and 1 auxiliary engines of two marine vessels in an amount not to exceed $181,944;

    18. Diving Charters Mains for the repower of 2 main engines of a marine vessel in an amount not to exceed $87,843;

    19. Harbor Dockside for the repower of 1 auxiliary engine of a marine vessel in an amount not to exceed $12,656;

    20. Pacific Tugboat Service for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $247,062;

    21. Great Escape Charters for the repower of 2 auxiliary engines of a marine vessel in an amount not to exceed $16,210;

    22. Savage Transportation Management for the repower of 1 switcher locomotive in an amount not to exceed $1,057,400;

    23. City of Santa Monica Big Blue Bus for the repower of 30 transit buses in an amount not to exceed $669,570;

    24. City of Monrovia for the retrofit of 3 off-road equipment in an amount not to exceed $45,306;

    25. City of Chino for the retrofit of 3 off-road equipment in an amount not to exceed $13,710.

  1. 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) totaling $2,700,423:

    1. Orange County Waste and Recycling for the repower of 1 diesel construction equipment in an amount not to exceed $143,548;

    2. Robertson’s Ready Mix for the repower of 33 diesel construction equipment in an amount not to exceed $2,465,925;

    3. Penhall Company for the repower of 2 construction equipment in an amount not to exceed 90,950.

  2. Authorize the Chairman to execute a contract under the SOON Provision with Foundation Pile, Inc. for the repower of 4 diesel construction equipment in an amount not to exceed $312,819, comprised of $104,840 from the Carl Moyer Program SB 1107 Fund (32), and $207,979 from the Carl Moyer Program AB 923 Fund (80).
     

 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the eleventh year of the Carl Moyer Program and the fifth year of the program with a long-term source of funding generated under SB 1107 and AB 923. For the FY 2008-09 “Year 11” Carl Moyer Program, CARB has allocated $29,740,049 under SB 1107 to the AQMD, comprised of $28,253,047 in project funds and $1,487,002 in administrative funds. In addition, $5,295,593 is required from the AQMD as its local match.

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. There are $2,805,263 from SB 1107 funds including the $1,792,704 in returned funds as shown in Table 1, and $7,091,390 from AB 923 funds as part of Years 10 and 11 local match funds available for new projects. 

Proposal

This action is to approve the recommended projects as outlined in Table 2, under the Carl Moyer Program in an amount not to exceed $4,842,295 from the Carl Moyer Program AB 923 Fund (80). All the marine vessel projects will be equipped with GPS units at an additional cost of $2,160 per vessel, for which funding has been set aside under a separate contract. Total NOx and PM reductions from the recommended projects are approximately 49.6 tons/year and 2.0 tons/year, respectively. This action is also to approve the recommended off-road projects, as outlined in Table 3, under the SOON provision in an amount not to exceed $3,013,242, comprised of $2,805,263 from the Carl Moyer Program SB 1107 Fund (32), and $207,979 from the Carl Moyer Program AB 923 Fund (80). Total NOx reductions from the recommended projects is approximately 35.6 tons/year. 

Table 4, 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 $2,258,281, while the total amount of projects funded solely based on cost-effectiveness is $5,597,256. This represents 29% of the projects deployed in disproportionately impacted areas. However, since the percentage of projects in disproportionately impacted areas awarded in September 2009, from $23 million “Year 11” funds was at 76%, the overall goal of at least 50% has been met. 

The applications were evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008. The remaining balance of the available funds will be awarded to projects that are still under evaluation under the SOON Provision and to projects that are being discussed with CARB subject to case-by-case approval under the Carl Moyer Program. 

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 29% 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.

  1. All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the Program Announcement.

  1. All projects were evaluated according to the following criteria to qualify for funding under DI requirements:

  1. 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

  1. 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

  1. 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 were 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 was 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 was 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 $7,855,537, $5,050,274, and $2,805,263, respectively from the Carl Moyer Program AB 923 Fund (80) and from the Carl Moyer Program SB 1107 Fund (32). There will be sufficient funds in the Carl Moyer Program Fund.

Attachment (DOC, 71k)

Table 1 – Carl Moyer Projects Returned Funds

Table 2 – Recommended Carl Moyer Program Awards with AB 923 Funds

Table 3 – Recommended SOON Provision Awards

Table 4 – Funding Distribution of Recommended Carl Moyer Program and SOON Provision Awards
 


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