BOARD MEETING DATE: March 4, 2005
AGENDA NO. 5

Execute Contracts for FY 2003–04 Carl Moyer Memorial Air Quality Standards Attainment Program and Adopt Policy for Contractors Submitting False Data

SYNOPSIS:

On October 28, 2004, proposals were received in response to an RFP for the Carl Moyer Memorial Air Quality Standards Attainment Program. A total amount of $9,300,040 comprised of $7,448,659 allocated to the AQMD under Proposition 40, and $1,851,381 in returned funds from prior year awards is available for the current solicitation. This action is to execute Carl Moyer contracts in an amount not to exceed $9,300,040 for qualified proposals. This action is also to adopt an enforcement policy for contractors submitting false data.

COMMITTEE:

Technology, February 25, 2005, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute the following contracts from the FY 2003-04 Carl Moyer Program Fund:

1. A contract with Omnitrans to purchase 8 new Gasoline/Hybrid transit buses, in an amount not to exceed $207,292 from the Carl Moyer Program Prop. 40 Fund.
    
2. A contract with the City of Whittier to purchase 1 CNG street sweeper, 2 CNG aerial trucks and 3 CNG refuse trucks, in an amount not to exceed $126,190 from the Carl Moyer Program Prop. 40 Fund.
    
3. A contract with the City of Santa Monica to purchase 13 CNG refuse trucks, in an amount not to exceed $104,000 from the Carl Moyer Program Fund.
    
4. A contract with Clean Street to purchase 12 CNG street sweepers, in an amount not to exceed $97,632 from the Carl Moyer Program Prop. 40 Fund.
    
5. A contract with London Bus & Taxi to repower 3 tour buses with CNG engines, in an amount not to exceed $285,000 from the Carl Moyer Program Prop. 40 Fund.
    
6. A contract with Westport Innovations Inc., to repower 10 refuse trucks with LNG engines, in an amount not to exceed $271,883 from the Clean Fuels Fund and $239,577 from the Carl Moyer Program Fund.
    
7. A contract with Kimberly Salas to repower 6 diesel marine engines, in an amount not to exceed $312,999 from the Carl Moyer Program Prop. 40 Fund.
    
8. A contract with Robert Black to repower 4 diesel marine engines, in an amount not to exceed $396,955 from the Carl Moyer Program Prop. 40 Fund.
    
9. A contract with Frontier Aluminum Corporation to purchase 1 new electric forklift, in an amount not to exceed $13,765 from the Carl Moyer Program Prop. 40 Fund.
    
10. A contract with Shaw Diversified Services Inc., to purchase 19 new electric forklifts, in an amount not to exceed $242,459 from the Carl Moyer Program Prop. 40 Fund.
     
11. A contract with TAMCO Steel to repower 3 diesel haul trucks and 11 diesel loaders, in an amount not to exceed $550,008 from the Carl Moyer Program Prop. 40 Fund.
     
12. A contract with Fontana Steel to repower 3 diesel loaders, in an amount not to exceed $112,300 from the Carl Moyer Program Prop. 40 Fund.
     
13. A contract with Ameron International to repower 7 diesel loaders and 2 diesel stackers, in an amount not to exceed $548,095 from the Carl Moyer Program Prop. 40 Fund.
     
14. A contract with Varner Construction Inc. to repower 17 diesel scrapers and 2 diesel rock trucks, in an amount not to exceed $1,444,414 from the Carl Moyer Program Prop. 40 Fund.
     
15. A contract with Peed Equipment to repower 4 diesel wheel scrapers, in an amount not to exceed $383,712 from the Carl Moyer Program Prop. 40 Fund.
     
16. A contract with Road Builders Inc., to repower 2 diesel scrapers, in an amount not to exceed $177,700 from the Carl Moyer Program Prop. 40 Fund.
     
17. A contract with Pick Your Part Auto Wrecking, Inc., to repower 1 diesel loader, in an amount not to exceed $26,260 from the Carl Moyer Program Prop. 40 Fund.
     
18. A contract with Rentrac to repower 2 dual engine wheel scrapers and 1 dual engine wheel scraper rear engine only, in an amount not to exceed $443,534 from the Carl Moyer Program Prop. 40 Fund.
     
19. A contract with Southern California Regional Rail Authority to retrofit 6 diesel locomotives, in an amount not to exceed $282,000 from the Carl Moyer Program Fund.
     
20. A contract with AMTRAK to retrofit 1 diesel-electric hybrid locomotive, in an amount not to exceed $615,000 from the Carl Moyer Prop. 40 Fund.
     
21. A contract with Pacific Harbor Line, Inc., to repower 1 diesel locomotive, in an amount not to exceed $400,000 from the Carl Moyer Program Prop. 40 Fund.
     
22. A contract with Hunter & Hunter Trucking, Inc., to retrofit 1 LNG locomotive, in an amount not to exceed $1,719,265 from the Carl Moyer Program Prop. 40 Fund.
     
23. A contract with IdleAire to construct and operate 30 truck stop electrification units, in an amount not to exceed $300,000 from the Carl Moyer Program Prop. 40 fund.

2. Establish an interim policy relative to incentive funding programs that if the Executive Officer determines that an applicant previously submitted false data or information pursuant to an earlier contract with AQMD, then the applicant will be precluded from receiving future contracts from the AQMD for up to two years from the date of the Executive Officer’s determination.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the sixth year of the Carl Moyer Memorial Air Quality Standards Attainment Program (CMP). The CMP provides funds on an incentive basis for the incremental cost of cleaner than required engines and equipment. Eligible projects include cleaner on-road, off-road, marine, locomotive and stationary agricultural pump engines, as well as forklifts, airport ground support equipment, and auxiliary power units. The program achieves near- term reductions in emissions of oxides of nitrogen (NOx), which are necessary for the AQMD to meet fulfill the State Implementation Plan. The CMP also reduces particulate matter (PM), a component of diesel exhaust, which is identified by CARB as a toxic air contaminant.

In the spring of 2002, California voters passed Proposition 40, the California Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Act. Proposition 40 allocated $50 million to CARB, for a period of two years, for distribution to the air districts for projects that "affect air quality in state and local parks and recreation areas", in accordance with the Carl Moyer guidelines. Of these funds, the Governor allocated $25 million to CARB for FY 2002-03. Furthermore, Assembly Bill 425 directs that 20 percent of the Proposition 40 funds be allocated for the acquisition of "clean, safe, school buses for use in California’s public schools that serve pupils in kindergarten and grades one to 12, inclusive." A total of $7,448,659 has been allocated to the AQMD for the CMP this year.

On October 28, 2004, 43 proposals with requests totaling over $31.8 million were received in response to RFP #P2005-02 for the CMP. Table 1 shows the total amount of funds available for awards, including funds allocated to AQMD under Proposition 40, and turnback funds. Table 2 shows the detailed breakdown of the turnback funds.

Table 1
Carl Moyer Program
Available Funds FY 2003-04
 

Table 2
Carl Moyer Program
Available Funds FY 2003-04
 

Proposal

Carl Moyer Program
At its August 2004 meeting, the Board approved the release of RFP #P2005-02 to solicit projects for vehicles and equipment, including refuse haulers, on-road trucks, transit buses, marine vessels and port applications, and construction and other equipment under the Carl Moyer program. New engines and retrofits are allowed within the program. Diesel to diesel repowers have only been funded in the off-road sector provided no feasible alternative fuel engine is available. Alternative fueled projects are given preference over all other proposals. Proposal submissions have been reviewed and ranked in all categories. Due to past difficulty in ensuring that certain types of marine vessels stay within the AQMD’s boundaries, fishing and charter type vessels were no longer eligible for funding.

In compliance with AB1390, at least 50% of funds must be spent in disproportionately impacted (DI) areas. In the evaluation process, staff first funded proposals in DI areas with 50% of the available funds; all remaining qualified DI proposals with all other qualified proposals were then included in the cost effectiveness evaluation and funded accordingly. Table 3 summarizes staff’s recommendation for awards that meet DI criteria totaling $5,942,069. Total NOx reductions from qualified DI projects are approximately 167 tons/year. Table 4 summarizes award recommendations for the remaining funds based on their cost effectiveness ranking totaling $3,357,971, which will result in approximately 102 tons/year of NOx reductions.

Table 5 provides a detailed list of all the projects proposed for funding. All funds must be expended on a strict timeline. In order to facilitate use of the funds more expeditiously, staff may return to the Board with new funding proposals in the event additional funds become available. Staff will be utilizing the proposals from the RFP #2005-02 solicitation as the basis of these awards.

Enforcement Policy Recommendation Regarding Submission of False Data and Information under Incentive Funding Programs
Concern has been raised regarding the award of incentive funds to contractors who the AQMD has determined have provided false data and information regarding their previous compliance with the terms of awarded incentive funds. To address this concern in the interim, staff proposes that the Board establish an interim policy regarding all incentive funding programs to not award any incentive funds contracts to the subject contractor for up to two years if the Executive Officer determines that the subject contractor has submitted false data and information. Staff also intends to consult with both CARB and other appropriate air districts to establish a statewide policy regarding this concern.

Funding Distribution

As in the past, AQMD exceeds the state requirement of distributing at least 50 percent of the allocated CMP funds in DI areas. In total, 63.9 percent of the recommended awards are for projects in disproportionately impacted areas as listed in Table 3.

Disproportionate Impact (DI) Point Ranking

The requirements of AB 1390 are implemented according to the following criteria.
 

1)	All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the RFP.
2)	All projects were evaluated according to the following criteria to qualify for funding under DI requirements:
	a)	Poverty Level: All projects in areas where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, are eligible to be included in this category, and
	b)	PM Exposure: All projects in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. The highest 15% of PM concentration is 46 micrograms per cubic meter and above, on an annual average, or
	c)	Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on Mates II estimates) will be eligible to be ranked in this category.

Special circumstances existed in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty ranking from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities.

Table 3
Proposed Projects under AB1390
 

Table 4
Projects Solely Based on
Cost-Effectiveness
 

Table 5
Awards by Fund
 

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
 

1.	Antelope Valley Press	11.	La Opinion	21.	Rafu Shimpo
2.	Black Voice News	12.	La Prensa Hispana	22.	San Bernardino Sun
3.	Chinese Daily News	13.	La Voz Publications	23.	State of California Contracts
4.	Desert Sun	14.	Los Angeles Daily News		Register
5.	Eastern Group Publications	15.	Los Angeles Sentinel	24.	The Daily Breeze
6.	El Chicano	16.	Los Angeles Times	25.	The Excelsior
7.	El Informador	17.	Orange County Register	26.	The Signal
8.	Inland Empire Hispanic News	18.	Philippine News	27.	Wave Community Newspapers
9.	Inland Valley Daily Bulletin	19.	Precinct Reporter
10.	Korea Central Daily	20.	Press Enterprise

Additionally, potential bidders were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and was placed on the Internet at AQMD’s Web site [http://www.aqmd.gov and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The successful implementation of the Carl Moyer Program is a direct result of these Technology Advancement activities. The proposed projects will have significant emission benefits for many years. Total NOx reductions from the proposed Carl Moyer projects are approximately 269 tons per year. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

The replacement of diesel-fueled refuse haulers with CNG-fueled refuse haulers, the re-powering of older marine diesel engines with low-emission new diesel engines, and the repowering of older locomotive diesel engines with new low-emission diesel, LNG and diesel/electric hybrids can reduce significant amounts of NOx emissions at an extremely competitive cost per ton.

Resource Impacts

The AQMD is expected to receive $7,448,659 of the available Proposition 40 Carl Moyer Proposition 40 funds for FY 2004 from CARB. The Carl Moyer Program requires that the local air district provide matching funds for engine, vehicle and equipment incentives on a 1:2 basis. The AQMD local match requirement of $3,724,330 million is from program administration support, and other qualified projects (see Attachment 1). Up to 15% of the match is allowed as in-kind costs. Therefore, up to $555,000 of the match funds required can be attributed to in kind operational support of the program. AQMD has identified an additional $3,230,000 million in qualifying infrastructure projects funded from Clean Fuel Funds as our required match as listed in Attachment 1.

Total funding for the Carl Moyer Program projects shall not exceed $9,300,040. There are sufficient funds in the Carl Moyer Program Fund from funding to be received from CARB under Proposition 40, and from returned project funds.

Attachment

1 - Qualified Match Fund Infrastructure Projects for Carl Moyer Program FY 2003-04

ATTACHMENT 1
South Coast Air Quality Management District
Qualified Match Fund Infrastructure Projects for
Carl Moyer Program FY 2003-04
 

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