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

PROPOSAL:

Adopt Resolution Accepting Requirements of CARBs Lawn and Garden Equipment Replacement Program, Recognize Funds and Execute Contracts to Conduct 2010 Lawn Mower Exchange Program

SYNOPSIS:

At its November 6, 2009 meeting, the Board approved release of a Program Announcement to solicit competitive bids from cordless electric lawn mower manufacturers for the 2010 Lawn Mower Exchange Program.  At that time, CARB cost-share was anticipated through their AB 118 AQIP Program.  This action is to adopt a resolution accepting the requirements of CARBs AB 118 AQIP Lawn and Garden Equipment Replacement Program 2009-10 Grant Proposal Solicitation and recognize funds in the amount not to exceed $816,000 from CARB to purchase additional lawn mowers.  This action is to also (1) execute contracts with two manufacturers to conduct the 2010 Lawn Mower Exchange Program in an amount not to exceed $1,632,000; and (2) transfer $126,000 from the AQIP Special Revenue Fund to carry out the 2010 Lawnmower Exchange Program.

COMMITTEE:

Mobile Source, January 22, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

1. Adopt Resolution and recognize up to $816,000 from CARB under the AB 118 AQIP Program, place the funds in the AQIP Special Revenue Fund and authorize the purchase of cordless electric lawn mowers;
   
2. Authorize the Chairman to execute a contract with:

1. Neuton Lawn Mower Company to purchase up to 4,690 cordless electric lawnmowers and to conduct Mow Down Air Pollution 2010 Lawn Mower Exchange events in an amount not exceed $816,000;

2. Black & Decker Company to purchase up to 4,690 cordless electric lawn mowers and to conduct Mow Down Air Pollution 2010 Lawn Mower Exchange events in an amount not exceed $816,000. 

3. Authorize Executive Officer to redistribute (add or reduce) funding among the participating contractors to address the demand not to exceed a total amount of $1,632,000.
   
4. Transfer $126,000 from the Air Quality Improvement Fund to the FY 2009-10 Science and Technology Advancement Budget: $30,000 to the Salaries and Employee Benefits Major Object, Overtime Account; $96,000 to the Services and Supplies Major Object, Professional and Special Services Account to assist in implementing AQMDs Mow Down Air Pollution 2010 program.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Rule 2202 Air Quality Investment Program (AQIP) allows subject employers to participate by electing to invest in an AQMD-administered restricted fund.  Investment can be either $60 annually per employee reporting to the worksite during the 6 a.m. to 10 a.m. peak window or $125 triennially per employee.  The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the Rule, and there is no need for the employer to take further action to reduce mobile source emissions.  The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions.

In CY 2009, 102 employers participated in the AQIP Program and contributed $528,760.  In addition, an amount of $141,564 is available from the interest accrued during the FY 2008-09, a roll-over amount of $301,919 is available from the previous year, and an amount of $187,603 is available from one expired contract (Science and Technology Advancement, Inc. C07011) for a total balance of $1,148,600. 

For the past seven years, the AQMD has conducted lawnmower exchange programs through which 28,475 gasoline-powered lawn mowers were traded in for cordless electric mowers that produce zero emissions.  At its December 4, 2009 meeting, the Board approved the allocation of $816,000 toward the 2010 Lawn Mower Exchange Project from the Rule 2202, Air Quality Investment Program Special Revenue Fund (27). 

Proposal

In response to the Program Announcement issued on November 6, 2009, proposals from four manufacturers were received.  Neuton Lawn Mower Company is offering two models, a 14-inch model and a 19-inch model used in prior exchanges.  The proposal from Black and Decker offers two different 19inch models.  The proposal from Turfstar is offering a 20-inch model manufactured by Toro, and the proposal from Drive by Solar, Inc is offering a 14.5-inch lithium battery model.  Table 1 shows a comparison of the specifications and costs of the four proposals.

AQMD has used mowers from both Neuton and Black & Decker in the past, and both companies have supplied quality products and service.  The Toro brand cordless mower and Recharge mower from Driven by Solar Inc. are both in prototype stages and are not available in the market yet.  Staff believes that it would be prudent to wait at least one year before reconsidering their products. 

This year, staff recommends offering a choice of four mowers from two manufacturers.  The 14-inch mower offered in past programs was extremely popular at $100 each.  This represents a discount of $174, and staff recommends offering this model again at this price.  Staff also recommends the same discount of $174 for the other three models, providing customers the option of larger models at a higher cost. 

Staff recommends that $942,000 of the available AQMD AQIP funds be used to conduct the 2010 Lawn Mower Exchange Program; $816,000 as incentive funding and $126,000 for program administration.  In addition to AQMD funding, CARB has offered match funding through its AB 118 Air Quality Improvement Program (AQIP).  Staff applied for and was awarded the requested 1:1 matching funds of $816,000, bringing the total incentive budget for this years program to $1,632,000.  This will result in more than twice the number of mowers offered in last years program for exchange, or approximately 9,379 units.  A maximum of $1,632,000 will be contracted between the two manufacturers, where the split in funding will be determined by the choices made by the customers.

In accordance with AQMDs Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids for the lawn mowers 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 AQMDs own electronic listing of certified minority vendors.  Notice 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 AQMDs 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 AQMDs bidders 24-hour telephone message line (909) 396-2724.

A public notice for pre-registration for residents to secure an appointment for lawn mower exchange will be sent as part of the utility bills issued by LADWP and Southern California Edison; and will be posted on AQMD website.  Supplementary outreach can be conducted in local newspapers and community TV network if needed.

Benefits to AQMD

Table 2 illustrates the Rule 2202 AQIP emission bank status and the benefits from the 2010 Lawn Mower Exchange Program.  The past awards have resulted in a surplus of emission credits.

Resource Impact

AQMD portion of the total cost of the proposed lawnmower exchange program and its implementation support shall not exceed $816,000 from the Rule 2202 Air Quality Investment Program Special Revenue Fund, and $816,000 is available from AB 118 AQIP matching funds from CARB.

Attachments (DOC, 64k)

• Table 1 - Comparison of Lawnmower Specifications and Pricing
• Table 2 - Emissions Bank Status and Benefits
• A Resolution of the South Coast Air Quality Management District Board Recognizing Funds and Accepting the Requirements of the CARBs AB 118 AQIP Lawn and Garden Equipment Replacement Program 2009-10 Grant Proposal Solicitation