BOARD MEETING DATE: May 7, 2010
AGENDA NO. 3

PROPOSAL:

Recognize Additional Proposition 1B – Lower Emission School Bus Program Funds from CARB and Approve School Bus Replacement and Retrofit Awards and Amend Contracts under Lower Emission School Bus Program

SYNOPSIS:

CARB has allocated an additional $1,079,635 to the AQMD for the Proposition 1B – School Bus Program. This action is to recognize these funds and place them in the Proposition 1B – Lower Emission School Bus Program Fund to replace 96 pre-1987 school buses with new CNG buses, retrofit 545 school buses with particulate traps, and allow the use of any unspent infrastructure funds towards the schools’ local match. Other actions are to amend contracts to pay for school bus safety equipment and other adjustments, such as an increase for sales tax. The final actions are to approve funding to upgrade two school bus fueling stations and donate a school bus to a public school district.

COMMITTEE:

Technology, April 16, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize upon receipt, $1,079,635 in Proposition 1B – School Bus Program funds and place them in the Proposition 1B – Lower Emission School Bus Program Fund (82).

2. Authorize the Chairman to execute contracts with the following public school districts to replace 96 pre-1987 school buses with new CNG buses in an amount not to exceed $16,242,304, comprised of $13,440,000 from the Proposition 1B – Lower Emission School Bus Program Fund (82), and $2,802,304 from the Carl Moyer Program AB 923 Fund (80), as set forth in Table 2:

3. Walnut Valley, 2 CNG buses in an amount not to exceed $331,048;

4. Downey, 2 CNG buses in an amount not to exceed $339,048;

5. Bonita, 5 CNG buses in an amount not to exceed $847,620;

6. Castaic, 1 CNG bus in an amount not to exceed $169,524;

7. Hacienda La Puente, 6 CNG buses in an amount not to exceed $993,144; and

8. Los Angeles, 80 CNG buses in an amount not to exceed $13,561,920.

3. Approve school districts to use surplus funds from previously awarded infrastructure grants from Fund 80, as these funds become available, for up to $14,000 per CNG bus and $10,000 per propane bus, to help further reduce the school match requirement for buses purchased under the Proposition 1B – Lower Emission School Bus Program.

4. Authorize the Chairman to execute contracts with the following school bus operators to retrofit 545 school buses with Level 3 PM traps in an amount not to exceed $8,894,500 from the Proposition 1B – Lower Emission School Bus Program Fund (82):

1. AeroCoach, 1 PM trap in an amount not to exceed $20,000;

2. Richmond, 1 PM trap in an amount not to exceed $20,000;

3. Alliance Bus Lines, 2 PM traps in an amount not to exceed $40,000;

4. Certified Transportation, 20 PM traps in an amount not to exceed $400,000;

5. Durham Services, 32 PM traps in an amount not to exceed $416,000;

6. Tumbleweed, 68 PM traps in an amount not to exceed $884,000;

7. Atlantic Express, 130 PM traps in an amount not to exceed $2,600,000; and

8. First Student, 291 PM traps in an amount not to exceed $4,514,500.

5. Authorize the Chairman to amend contracts with Rim of the World Unified School District for replacement of 12 new CNG school buses to equip the buses with necessary safety equipment for driving on mountain roads during severe weather conditions for the additional amount of up to $158,040, from the Clean Fuels Fund.

6. Authorize the Chairman to amend a contract with Temecula Valley School District for the replacement of seven school buses in the amount of $1,027,122, with the addition of up to $73,960, comprised of $70,920 from the Carl Moyer Program AB 923 Fund (80), and $3,040 in DERA interest from the Lower-Emission School Bus Program Fund (33).

7. Authorize the Chairman to approve grant awards at $40,000 each, to Placentia-Yorba Linda and West Covina Unified School Districts to upgrade their CNG school bus fueling stations in an amount not to exceed $80,000 from the Clean Fuels Fund (31).

8. Declare the AQMD’s 2002 Ford E450 CNG 14-passenger bus as surplus and authorize the removal of the item from the fixed assets inventory through a donation to the Los Angeles Unified School District.
   

Barry R. Wallerstein, D.Env.
Executive Officer

Background

CARB has allocated a total of $71,179,635 to the AQMD as its share of the Proposition 1B – Lower Emission School Bus Program. A summarized list of previous and current Proposition 1B installments announced by CARB is listed in Table 1.

The distribution of the Proposition 1B-School Bus Program funds were approved by CARB’s Board on March 27, 2008. Prior to that, CARB conducted a survey of the pre-1977 and the 1977-86 model year school bus population within each air district. Unlike the Carl Moyer Program, where the AQMD receives 43.7% of the funds based on the Basin’s population, and the Proposition 1B-Goods Movement Program, where the South Coast Basin receives 55% of the funds, the Prop 1B-School Bus funds were distributed based on each air district’s pre-1977 and 1977-86 school bus population. The table below shows the population distribution as gathered by CARB in March 2008.

Due to AQMD’s efforts in expending about $45 million of its own funds in addition to the state’s allocation of about $61 million in School Bus Program funds since Year 2001, the AQMD had a disproportionately lower percentage of older school buses at the time of the Proposition 1B funding distribution. The AQMD had 13% of the pre-1977 school buses and 38% of the 1977-86 school buses compared to the state’s population. With a funding amount of $140,000 per bus, the districts were allocated funds for replacing their entire pre-1977 school buses first, totaling $10.36 million statewide and $1.26 million for the AQMD. They were then allocated the balance of the available funds proportional to their 1977-86 school buses totaling $68.84 million or 38% of the funds for the AQMD. Overall the AQMD was allocated $70.1 million corresponding to 36.6% of the total funds. 

In July and December 2008, the Board issued Program Announcements PA2009-01 and PA2009-05, respectively. However, due to unavailability of Proposition 1B funds the program was temporarily suspended. At its July 2009 meeting, upon availability of Proposition 1B funds, the Board awarded 304 new CNG school buses and 172 particulate traps to public school districts. Furthermore, given public schools’ difficulty in providing local match of $25,000 per bus, the Board at its February 2010 meeting approved an additional $10,000 per bus to reduce school districts’ required match to $15,000. As a result, $44,805,376 in Proposition 1B-School Bus Program funds, and $6,661,462 in Carl Moyer Program AB 923 funds have already been awarded.

Proposal

CARB initially allocated $70.1 million to the AQMD under the Proposition 1B – Lower Emission School Bus Program, which was recognized by the Board on June 6, 2008. CARB has now allocated an additional $1,079,635 to the AQMD under this program. This action is to recognize $1,079,635 in Proposition 1B funds and place them in the Proposition 1B – Lower Emissions School Bus Program Fund (82).

These actions are also to approve: a) the replacement of 96 pre-1987 school buses with new CNG buses as listed in Table 2, in an amount not to exceed $16,242,304, comprised of $13,440,000 from the Proposition 1B – Lower Emission School Bus Program Fund (82), and $2,802,304 from the Carl Moyer Program AB 923 Fund (80); and b) the retrofit of 545 school buses with Level 3 PM traps as listed in Table 3, in an amount not to exceed $8,894,500 from the Proposition 1B – Lower-Emission School Bus Fund (82). 

In order to help schools through the current severe economic situation, this action is to approve school districts use of surplus funds from awarded infrastructure funds for up to $14,000 per CNG bus, and $10,000 per propane bus to help further reduce the schools’ match requirement for buses purchased under the Proposition 1B – Lower Emission School Bus Program.

Children attending the Rim of the World Unified School District reside in the mountainous area of San Bernardino County. Due to the unique operational conditions of the schools’ fleet, this action is to amend contracts with Rim of the World Unified School District to equip 12 new CNG replacement school buses with the necessary safety equipment for driving on mountain roads during severe weather conditions for the additional amount of up to $158,040, from the Clean Fuels Fund.

This action is to amend Temecula Valley School District’s contract for the replacement of seven school buses in the amount of $1,027,122, with the addition of up to $73,960, comprised of $70,920 from the Carl Moyer Program AB 923 Fund (80), and $3,040 in DERA interest from the Lower-Emission School Bus Program Fund (33). The amendment is to cover a shortfall due to a funding miscalculation related to the number of pre-1977 vs. pre-1987 buses, increase in sales tax, and the price differential between buying the 0.2 gram NOx certified Cummins CNG buses over the former John Deere CNG buses.

Finally, these actions are to approve grant awards at $40,000 each, to Placentia-Yorba Linda and West Covina Unified School Districts to upgrade their CNG school bus fueling stations in an amount not to exceed $80,000 from the Clean Fuels Fund, and to donate AQMD’s Ford E450 CNG shuttle van/school bus (Tag No. 38760) to the Los Angeles Unified School District. In July 2003, AQMD partnered with Ford Motor Company to demonstrate a CNG 14-passenger shuttle van/school bus. After developing and integrating the engine, however, Ford completely withdrew from the CNG market, and the vehicle has been rarely utilized by AQMD. As such, AQMD staff believes that Los Angeles Unified School District, which has the largest number of pre-1987 school buses, will best be able to maximize the use of the vehicle. 

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 has been 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 is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. 

Benefits to AQMD

The successful implementation of the Lower-Emission School Bus Replacement and Retrofit Program will provide less polluting and safer school transportation for school children and will reduce public exposure to toxic diesel particulate matter emissions. In addition, these awards comply with AB 1390 requirements, such that it would reduce air pollution in low-income, high-diesel and high-PM10 exposure areas as well as enhance the objectives of the Environmental Justice and Children’s Health Initiatives adopted by the AQMD Board. 

Resource Impacts

Total funding for the projects proposed in this Board letter shall not exceed $25,448,804 comprised of $22,334,500 from the Proposition 1B – Lower Emission School Bus Program Fund (82), $2,873,224 from the Carl Moyer Program AB 923 Fund (80), $238,040 from the Clean Fuels Fund (31), and $3,040 from the Lower-Emission School Bus Program Fund (33).

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.

Sufficient funds are also available in Proposition 1B – Lower Emission School Bus Program Fund (82), Carl Moyer Program AB 923 Fund (80), and the Lower-Emission School Bus Program Fund (33). 

Attachments (DOC, 66k)

Table 1: Proposition 1B - School Bus Program Funds

Table 2: Recommended School Bus Replacements

Table 3: Recommended PM Trap Awards to Private School Bus Operators