BOARD MEETING DATE: March 5, 2010
AGENDA NO. 7

PROPOSAL:

Amend Proposition 1B - Goods Movement Contract Awards

SYNOPSIS:

In September and November of 2009, the Board approved contract awards for truck replacement projects as part of the Proposition 1B - Goods Movement Emission Reduction Program. Due to the speed at which program implementation was required, staff anticipated minor changes as the 1,358 awards were processed into contracts. This action is to make such changes, specifically to correct an applicant name, provide appropriate vehicle identification numbers, and increase funding, at the applicant’s request, for a LNG instead of a diesel truck. All funds are from Proposition 1B – Goods Movement Fund (81).

COMMITTEE:

Technology, February 19, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Executive Officer to amend awards approved on November 6, 2009, under the Proposition 1B – Goods Movement Program, with the following entities:
   
   
   1. Harbor Express, Inc., to change the applicant name to Ramon Salcedo;
      
      
   2. Nunez Transportation, Inc., to exchange four truck replacement projects with other trucks and accept the new vehicle identification numbers as identified in Table 1;
      
      
   3. California Cartage Company, to exchange three truck replacement projects with other trucks and accept the new vehicle identification numbers as identified in Table 1, and to purchase a new LNG instead of a diesel truck for an additional amount of $50,000 from the the Proposition 1B-Goods Movement Program Fund (81).
      
      
2. Authorize the Executive Officer to amend awards approving administrative changes and/or reallocating program funding amongst the Board-approved fleet operators participating in the Proposition 1B-Goods Movement Program in the event the participation of fleet operators in the Program changes.
   
   

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On September 11 and November 6, 2009, the Board approved contract awards for drayage truck replacement projects as part of the Proposition 1B – Goods Movement Emission Reduction Program. The awards are for the replacement of older diesel trucks servicing the Ports of Los Angeles and Long Beach and/or intermodal rail yard facilities located in the Los Angeles/Inland Empire corridor. The funds will be used to purchase 2007 or newer model year trucks, including a grant of up to $50,000 per truck from Proposition 1B and an additional $50,000 for each natural gas truck from the AQMD and both Ports. The program is moving forward with drayage truck replacements and intermodal truck retrofit and replacement projects.  

Proposal

Staff proposes no cost amendments to awards approved by the Board in November 2009 under the Proposition 1B – Goods Movement Program. The amendments include changing of the applicant’s name from Harbor Express to Ramon Salcedo for replacement of one truck which inadvertently specified the Licensed Motor Carrier (LMC) as the applicant in the application; and changing of Vehicle Identification Numbers for seven trucks with other trucks as shown in Table 1. The trucks originally proposed by the applicants were deemed ineligible since they were not registered in the previous 12 months, but after consultation with the AQMD, the applicants submitted other trucks for consideration which were found to meet the registration requirements of the program. The final amendment is to approve California Cartage Company for purchase of new LNG instead of diesel truck for an additional amount of $50,000 from the “mixed fund” portion of Proposition 1B - Goods Movement Program Fund (81), provided by the AQMD and the Ports. 

Benefits to AQMD

The successful implementation of the truck replacement projects will reduce NOx, PM and other pollutant emissions in a cost-effective and expeditious manner which will help achieve the goals of the 2007 AQMP. These projects involve the replacement of a diesel truck with a natural gas truck which will provide additional benefits by reducing greenhouse gas emissions by about 25%. The new natural gas vehicles funded under this program are expected to operate for many years which will provide long-term emission reduction benefits at the Ports and in the region. 

Resource Impacts

The amended award shall not exceed $50,000 from the “mixed fund” portion of the Proposition 1B - Goods Movement Program Fund (81). 

Attachment (DOC, 33k)

Table 1: Amended Trucks in Phase 2 - LNG Truck Replacement Projects