BOARD MEETING DATE: February 5, 2010
AGENDA NO. 7
PROPOSAL:
Execute Contracts and Transfer Funds for Voucher Incentive Program
SYNOPSIS:
In May 2009, the Board recognized $3.4 million from CARB to implement the Carl Moyer On-Road Heavy-Duty Vehicle Voucher Incentive Program. As required, the AQMD identified an equal amount of local match, the largest portion from the AB 923 account. This action is to modify seven existing contracts and execute two new contracts with the dealerships to provide the reimbursements, and grant Executive Officer authority to redistribute the funds among the dealerships based on demand. The final action is to reimburse $35,000 from the SB 1107 Fund to the Executive Office Professional Services account for a previous voucher payment.
COMMITTEE:
Technology, January 22, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
1. Authorize the Chairman to modify existing contracts to award funding in the following amounts with the following dealerships from the Carl Moyer Program SB 1107 and AB 923 Funds:
Carmenita Truck Center ($500,000 SB 1107 and $250,000 AB 923)
Inland Kenworth (US) Inc ($500,000 SB 1107 and $250,000 AB 923)
Los Angeles Freightliner ($500,000 SB 1107 and $250,000 AB 923)
Rush Truck Centers of California Inc. DBA Rush Truck Center – Fontana ($465,000 SB 1107 and $250,000 AB 923)
TEC of California, Inc. ($500,000 SB 1107 and $250,000 AB 923)
Western Truck Exchange ($500,000 SB 1107 and $250,000 AB 923)
Westrux International ($500,000 SB 1107 and $250,000 AB 923)
2. Authorize the Chairman to execute contracts with the following dealerships in equal amounts of $750,000 per dealership, comprised of $500,000 from the Carl Moyer Program SB 1107 Fund and $250,000 from the Carl Moyer Program AB 923 Fund.
Peck Road Truck Center
Boerner Truck Center
Authorize Executive Officer to redistribute (add or reduce) funding amongst the participating dealerships to address demand not to exceed a total cost of $6.8million.
Transfer $35,000 from the Carl Moyer Program SB 1107 Fund to the General Fund and appropriate $35,000 to the Executive Office Budget, Services and Supplies Major Object, Professional & Special Services account to reimburse for a previous voucher payment.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The CARB On-Road Heavy-Duty Vehicle Voucher Incentive Program (VIP) was initiated in March 2009 to reduce the purchase cost to applicants replacing an old heavy-duty diesel vehicle with a newer, lower-emission vehicle. On May 1, 2009, the Board adopted a resolution to receive up to $3.4 million in grant funds from CARB to implement the VIP. The Board also approved the use of match funds up to $3,400,000 to satisfy CARB’s buy-in provision. These match funds consisted of $920,581 from the Carl Moyer Program SB 1107 Multidistrict returned funds, $179,419 from the SB 1107 Multidistrict interest and up to $2.3 million from the Carl Moyer Program AB 923 Fund. Total funding for the VIP is up to $6.8 million, including administrative funds.
The AQMD hosted a series of training workshops, explaining the program and inviting dealerships to participate in the VIP program. Due to the quick turnaround required by CARB in the processing and reimbursement of the vouchers, it has since been determined that contracts with these participating dealerships need to be executed.
Proposal
Staff recommends the Board authorize the Chairman to modify seven existing contracts and execute two new contracts with the following nine dealerships that have opted to participate in the VIP:
Boerner Truck Center
Carmenita Truck Center
Inland Kenworth (US), Inc.
Los Angeles Freightliner
Peck Road Truck Center
Rush Truck Centers of California Inc. DBA Rush Truck Center - Fontana
TEC of California, Inc.
Western Truck Exchange, and
Westrux International.
Since this is a fast-moving program and demand to each dealership is unknown, staff recommends allocating $750,000 to each dealership initially and authorizing the Executive Officer to redistribute the funds based on voucher activity. Staff recommends the transfer of $35,000 from the Carl Moyer Program SB 1107 Fund to the Executive Office Professional Services Account to reimburse this account for a voucher payment made on a single truck prior to the execution of these dealer contracts to meet the payment schedule required by the CARB guidelines.
Benefits to AQMD
The successful implementation of the Carl Moyer On-Road Heavy-Duty Voucher Incentive Program (VIP) will provide emission reductions of both NOx and PM as required by the program. Since the vehicles to be funded under this program will operate for many years, the emission reductions will provide long-term benefits.
Resource Impacts
The funds for this program have already been recognized and identified by the Board. There are sufficient funds in the Carl Moyer Program Fund.