BOARD MEETING DATE: February 19, 2010
AGENDA NO. 1
PROPOSAL:
Issue Program Announcement for Heavy-Duty Truck Replacements and Request for Quotations to Obtain Information on Truck Pricing, Post Financing Rates for New Trucks, and Amend Contracts to Secure Technical Assistance
SYNOPSIS:
Under the “Year 1” Proposition 1B-Goods Movement Program, CARB allocated $21,412,500 to the AQMD for non-drayage truck and locomotive projects. These funds were awarded in March 2009, but then CARB suspended the program due to the state’s inability to sell bonds. CARB recently informed the AQMD that these funds are now available and, together with unspent funds from the Ports’ drayage truck program, must be committed through executed contracts by June 30, 2010. Staff will execute available contracts from the previously awarded trucks but also recommends issuing a new program solicitation for additional truck projects to ensure full utilization of the available funding. Staff also recommends issuing a request for quotation to obtain pricing information from truck dealers and posting financing rates from financial institutions to ensure the lowest truck prices at favorable rates. Finally, staff recommends amending and executing a new contract with consultants to assist in the implementation of this program.
COMMITTEE:
Not Applicable
RECOMMENDED ACTIONS:
Approve issuance of Program Announcement #PA2010-07 for replacement of heavy-duty diesel trucks with new diesel or alternative fuel trucks;
Approve issuance of Request for Quotations #Q2010-10 to obtain quotes on truck pricings;
Authorize the Executive Officer to amend contracts with the following entities from the Clean Fuels Fund to provide technical assistance for the implementation of the truck replacement program:
1. Clean Fuel Connection in an amount not to exceed $150,000;
2. TIAX in an amount not to exceed $100,000;
3. Gladstein, Neandross & Associates in an amount not to exceed $75,000; and
4. Mark Weekly in an amount not to exceed $20,000.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Under the “Year 1” Proposition 1B-Goods Movement Program CARB allocated $21,412,500 to AQMD, comprised of $17.45 million for non-drayage trucks, $3.0 million for locomotives, and $962,500 for administrative funds. In March 2009, the Board approved awards for non-drayage truck replacement and retrofit projects, which were subsequently put on hold due to unavailability of funds. CARB has informed the AQMD that these funds are now available and together with unspent funds from the Ports’ drayage truck program they must be committed through executed contracts by June 30, 2010 (Attachment 1). In addition, there is approximately $16 million in state and federal grant funds that can be spent on alternative fuel trucks.
Proposal
Staff is currently reviewing and will contact the applicable recipients from the approved list of March 6, 2009. However, due to the prolonged lag time, many of the projects may no longer be available. To ensure an adequate pool of applicants for expeditious commitment of the Proposition 1B and other available federal and state grant funds, staff recommends issuing Program Announcement #PA2010-07 to solicit proposals for replacement of pre-2004 heavy-duty trucks in goods movement operation with 2007or newer diesel or alternative fuel trucks (Attachment 2). The funding amount per truck will be $50,000 for diesel trucks from Proposition 1B funds and $100,000 for alternative fuel trucks from state and federal grant funds.
Staff also recommends issuing the Request for Quotations #Q2010-10 to obtain quotes on truck pricings from truck dealers (Attachment 3). In addition, staff plans to post financing rates on AQMD’s website for participating financial institutions. These postings will help ensure the applicants are provided the lowest truck prices at favorable financing rates.
Finally, staff recommends approval to amend contracts with the following entities from the Clean Fuels Fund for consultant services and assistance in the implementation of this program:
1. Clean Fuel Connection in an amount not to exceed $150,000;
2. TIAX in an amount not to exceed $100,000;
3. Gladstein, Neandross & Associates in an amount not to exceed $75,000; and
4. Mark Weekly in an amount not to exceed $20,000.
The Board previously approved (June 5, 2009) the use of up to $3.5 million in Clean Fuels funds to cover implementation costs of the Proposition 1B Program while seeking reimbursement from CARB. The above additional technical support costs will also be within the June 5, 2009 approved overall expenditure amount.
Clean Fuel Connection, TIAX, and Gladstein, Neandross & Associates have already been providing consultant services for the implementation of the Proposition 1B and other incentive funding programs and were originally selected from a competitive list of applicants. Their services will include helping AQMD staff in outreach, application quality control and evaluations, and other project implementation activities. Mark Weekly is a former AQMD employee with many years of experience as Controller in the Finance division. His background in finance and familiarity with AQMD’s operation and accounting practices give him the unique ability to help AQMD in providing financing or loan guarantees for implementation of some of the incentive programs in the near future.
Sole Source Justification
Section V.A of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. It is requested that sole source awards be made under provision A.4: Other circumstances exist which, in the determination of the Executive Officer, require such waiver in the best interests of the AQMD. Clean Fuel Connection, TIAX, and Gladstein, Neandross & Associates were all initially selected from a competitive list of applicants for helping AQMD in implementation of the incentive funding programs. All three consultants are familiar with the Proposition 1B Program and AQMD’s procedures and have provided valuable assistance in outreach, quality control, and project evaluations. Mark Weekly is a former AQMD employee with many years of experience as Controller at the Finance division. He recently reviewed AQMD’s incentive programs and provided recommendations in preparation for the upcoming audits. His background in finance and familiarity with AQMD’s accounting practices give him the unique ability to help AQMD in providing additional options such as financing and loan guarantees for implementation of the incentive programs.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be 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 be notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ will be 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 where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). 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 proposed projects will reduce NOx and PM emissions in a cost-effective and expeditious manner to meet the goals of the 2007 AQMP. The above proposed vehicles and equipment will operate for many years in the South Coast region and provide long-term emission reductions.
Resource Impacts
Total funding for the recommended consultant services shall not exceed $345,000 from the Clean Fuels Fund.
Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
Attachments (EXE, 1.5m)
CARB’s Letter of February 9, 2010
Program Announcement #PA2010-07
Request for Quotations #Q2010-10
Errata sheet (PDF, 7k)