BOARD MEETING DATE: June 4, 2004 AGENDA NO. 4

Exhaust emissions from high emitting diesel-fueled school buses are harmful to children and are a source of public exposure to toxic diesel particulate matter and smog-forming pollutants. Most recently, the AQMD’s Multiple Air Toxics Exposure Study (MATES-II) found that mobile source emissions are major contributors to the potential cancer risk from air pollution. In addition, recent findings from long-term epidemiological studies of school age children conducted by the University of Southern California and University of California at Los Angeles indicate that nitrogen oxides, acids, and particulate matter have much greater impacts on limiting lung growth in children than believed in the past. Mobile source emissions are currently the major emission contributor to these problems. In turn, the Board has initiated incentive programs to accelerate the turnover of older diesel school buses and retrofit newer diesel school buses with particulate control devices.

In an effort to reduce exposure to children and to minimize emissions from public and private school buses, many public school districts and private school bus service providers have taken advantage of available AQMD incentive programs for the purchase of less polluting alternative fueled school buses. However, several school districts, as well as private school bus service providers, have no experience with alternative fuels such as CNG. By loaning a CNG school bus to entities with no previous experience using an alternative fuel, first-hand knowledge regarding the positive benefits of alternative-fueled school buses will be gained.

On March 5, 2004, the Board authorized an RFP to purchase an 84-passenger CNG school bus for the purpose of establishing a demonstration/loaner program. The RFP closed on April 6 and a three-member review panel was convened to evaluate the proposals.

Staff proposes to purchase one 84-passenger CNG school bus along with associated services necessary to implement a CNG school bus demonstration/loaner program from one school bus vendor. The demonstration program will introduce natural gas school buses to fleet operators that have not previously operated this bus type. Such a demonstration program will provide school districts and school bus transportation providers "hands-on" familiarity with a fully equipped CNG school bus. This program will enable a school bus fleet operator to use the CNG school bus on an assigned route during a normal school day in order to experience the operational and refueling characteristics of a natural gas vehicle prior to any purchase. Specifically, fleet operators will gain experience regarding the performance of CNG school buses in terms of drivability, range, fuel consumption and overall comfort as compared to corresponding diesel school buses. Each participant in the demonstration program will test drive the CNG school bus for a 30- to 45-day period. Staff estimates that seven school districts or school transportation providers would have use of the CNG school bus during a calendar year.

The selected school bus vendor will also provide supporting services as part of the school bus demonstration program. Some of these services will include promoting the demonstration program, inspecting and maintaining the bus, performing warranty repairs, detailing the bus prior to delivery to each user, and training for each user concerning the operation of the school bus. Each school district that participates in the demonstration/loaner program will provide insurance and pay for the fuel to operate the bus.

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	Korea Central Daily	19.	Precinct Reporter
2.	Black Voice News	11.	La Opinion	20.	Press Enterprise
3.	Chinese Daily News	12.	La Prensa Hispana	21.	Rafu Shimpo
4.	Desert Sun	13.	La Voz Publications	22.	San Bernardino Sun
5.	Eastern Group Publications	14.	Los Angeles Daily News	23.	State of California Contracts
6.	El Chicano	15.	Los Angeles Sentinel		Register
7.	El Informador	16.	Los Angeles Times	24.	The Excelsior
8.	Inland Empire Hispanic News	17.	Orange County Register	25.	The Signal
9.	Inland Valley Daily Bulletin	18.	Philippine News	26.	Wave Community Newspapers

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ was 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 Web site (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 was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Three proposals were submitted in response to the RFP by school bus vendors that sell school buses within AQMD’s jurisdiction. The three vendors submitting proposals were: (1) A-Z Bus Sales, Inc (A-Z); (2) Bus West (BW); and (3) California Bus Sales (CBS). The proposals were reviewed and scored by three evaluators, all working in the Technology and Advancement Office of the AQMD. All of the evaluators were male; one was Asian-Indian and two were Caucasian. Bus West was the school bus vendor selected for recommendation to receive the bid award, based on the selection criteria outlined in the RFP. The table below is the scoring summary in rank order for the three proposals.

	Bus West	A-Z Bus Sales	California Bus Sales
Technical Criteria (60 points maximum)	56.0	50.7	54.7
Cost (40 points maximum)	38.0	40.0	39.0
Other (15 points maximum) Small Bus./Local Bus./DVBE	5.0	5.0	0.0
Total Points	99.0	95.7	93.7
Total Cost	$145,000	$138,402	$142,144
Location	Whittier, CA	Colton, CA	Fresno, CA

The Bus West proposal scored the most points overall, which primarily resulted from their score for Technical Criteria. Bus West understood the requirements of the CNG school bus demonstration/loaner program and offered the most comprehensive package for overcoming possible objections as to why school districts may not want to "test drive" and ultimately purchase CNG school buses. The CNG school bus proposed by Bus West clearly exceeds the minimum requirements and includes options such as air-ride suspension, transmission retarder, top-of-the-line driver’s seat, five-cylinder CNG tank package, motorized mirrors and LED lights. In addition, Bus West intends to assemble experts on alternative fuel technology to address various natural gas school bus barrier issues such as fueling alternatives, training for the engine and fuel system and garage upgrades. This expertise will facilitate a successful CNG school bus demonstration/loaner program. For these reasons, Bus West received the highest technical score. Also, consistent with the SCAQMD contracting policy, Bus West received five points for being a local business.

This project will help demonstrate and introduce natural-gas engine technology to school districts. Staff believes that this demonstration program will positively address potential concerns regarding alternative-fuel school buses as school districts and school bus transportation providers gain first-hand experience with this advanced technology.

The total amount of AQMD funding for this program shall not exceed $145,000 as stated in the RFP. Sufficient funds are available from the Lower-Emission School Bus Replacement and Retrofit Program. This fund has been established as a separate fund by the AQMD, to be used for the replacement and retrofit of school buses in the Basin. After the loaner/demonstration period is completed, the purchased CNG school bus will be donated to a school district via the application-and-award process for future Lower-Emission School Bus Replacement and Retrofit Programs.