BOARD MEETING DATE: September 9, 2005
AGENDA NO. 5

Execute Contracts for AQIP Proposals Received During Second Semi-Annual Period of 2004, and Allocate Funds to Assist in Purchase of Natural Gas Fueled Vehicles for Taxicab Services

SYNOPSIS:

One of the compliance strategies under Rule 2202 allows employers to invest in AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. The Board approved release of an RFP on May 6, 2005 to solicit projects to meet the Rule 2202 emission reduction targets for the second semi-annual period of 2004. Staff evaluated the proposals received by June 17, 2005, the due date under the RFP. This action is to fund projects in an amount not to exceed $1,945,449. In addition, staff recommends allocation of remaining funds to assist in the purchase of natural gas vehicles for taxicab services.

COMMITTEE:

Mobile Source, July 22, 2005, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute the following contracts for a total amount not to exceed $1,945,449 from the AQIP Special Revenue Fund.

1. A contract with Hood Plumbing, Inc., in an amount not to exceed $135,000 to procure and operate 30 CNG pickup trucks.
    
2. A contract with Pick Your Part Auto Wrecking to generate emission credits by scrapping old vehicles under Regulation XVI in an amount not to exceed $1,000,000.
    
3. A contract with the City of Burbank to purchase seven CNG transit buses in an amount not to exceed $252,000.
    
4. A contract with Altfillisch Contractors, Inc., to repower four dual engine wheel type scrapers in an amount not to exceed $468,449.
    
5. A contract with Pacific Stihl to exchange 600 leaf blowers in an amount not to exceed $90,000.

2. Allocate $1,190,000 from Rule 2202 AQIP Special Reserve Fund (Fund 27) to assist in the buydown of up to 50 natural gas vehicles to facilitate implementation of Rule 1194. Authorize the Executive Officer to approve disbursement, up to $23,800 per vehicle, of these funds to cover the co-funding in the same manner as prior Rule 2202 AQIP funding request for taxicab buydown incentives.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 2202 Air Quality Investment Program (AQIP) allows subject employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window, or $125 triennially per employee. The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program. This Board letter contains a discussion regarding the disbursal of funds from the AQIP compliance option for the second semi-annual period of CY 2004.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions.

The second half of calendar year 2004 participation period ended on December 31, 2004 with 77 employers participating in the AQIP program. The total amount of AQIP funds available for this period was $1,678,915. The Board at its February Board meeting awarded a contract to Neuton Lawn Mower Co., in an amount not to exceed $756,000 and an additional amount of $116,000 to conduct the "Mow Down Air Pollution 2005" events. In addition, an amount of $2,443,779 is available from unused funds from projects turned back or de-obligated (as listed in Attachment 1, Tables 4). Therefore, the total amount available for this quarter is $3,250,694.

Proposal Evaluation

During the bidding process 15 proposals were received requesting funds ranging from $31,562 to $8,009,834. A summary of emission reduction targets and the emission reduction credit balance is provided in Attachment 2. Attachment 3 provides a summary of each proposal received and funds requested.

According to the May 6, 2005 revision of the RFP, the proposals were divided into six different categories as listed in Attachment 4. This attachment provides an overall summary of the proposals by category, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal.

All proposals submitted were reviewed and scored based on the information in the proposal as submitted to the AQMD. After the proposals were scored within their respective categories they were ranked by total score (as described in the RFP).

Selection Criteria

Attachment 5 provides a summary of the proposal rankings. After all the proposals were scored and ranked projects were selected from the highest scoring proposals with the specific goal of meeting the emission reduction targets for VOC, NOx, and CO respectively. Staff selected the highest ranking projects that would meet the one-year targets for all three pollutants. As part of the selection process, staff based its selection on the scoring criteria outlined in the RFP. Reasons for recommendations made are provided at the end of each proposal summary in Attachment 3.

The proposals were ranked by score within each of the five categories and all proposals were ranked by total score as provided in the RFP. The four top scoring proposals (Hood Plumbing, option 1 of Pick Your Part Auto Wrecking, City of Burbank and Altfillisch Contractors) were selected as they help meet the targets of all three pollutants VOC, NOx and CO. These four proposals also contained the highest scoring proposals from three categories. In addition, as sufficient funds are available, staff is proposing to fund Pacific Stihl (the highest ranking proposal in the Miscellaneous Category).

In summary, the following proposals are recommended for approval (as detailed in Attachment 6):
 

1. Hood Plumbing, Inc. Hood Plumbing Inc., proposes to generate emission reductions by replacing 30 gasoline pickup trucks with SULEV CNG pickup trucks. The cost-effectiveness of this proposal is $6.48 per pound. (Ranked highest - recommended for funding.)	$135,000
2. Pick Your Part Auto Wrecking Pick Your Part Auto Wrecking offers emission reduction credits from a combination of old vehicle scrapping under Rule 1610 and credits generated under Rule 1612. The cost-effectiveness of this proposal is $2.40 per pound. (Ranked first in its category and second overall. Option 1 recommended for funding to provide the bulk of the emission reductions needed.)	Option 1  $1,000,000
3. City of Burbank City of Burbank proposes to generate emission reductions by purchasing seven (7) CNG transit buses at a cost-effectiveness of $5.90 per pound over 12 years. (Ranked fourth overall; recommended for funding.)	$252,000
4. Altfillisch Contractors, Inc. Altfillisch Contractors, Inc. proposes to generate emission reductions by repowering four dual engine wheel type scrapers. The cost-effectiveness of this proposal is $1.60 per pound. (Ranked first in its category and fifth overall; recommended for funding due to large NOx reductions.)	$468,449
5. Pacific Stihl Pacific Stihl proposes to generate emission reductions by exchanging 600 commercial leaf blowers with low emission Stihl BR500 back pack leaf blowers. The cost-effectiveness of this proposal is $0.30 per pound. (Ranked first in its category; recommended for funding due to cost-effectiveness.)	$90,000

The total cost of the above five proposals is $1,945,449.

Outreach

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

Taxicab Services

Staff is recommending that $1,190,000 from the AQIP program be allocated to reinstate funding assistance for a taxicab buy down program to facilitate implementation of Rule 1194. Rule 1194 requires taxicab operators to purchase ULEV or cleaner vehicles. In addition, if funding is available to offset the purchase cost of an alternative fuel vehicle to $10,000 (plus applicable tax and license), the taxicab operator may purchase the alternative fuel vehicle. Recently, BAF Technologies indicated that they will certify the 2006 Ford Crown Victoria to run on natural gas. The certification will be at the super ultra-low emission vehicle (SULEV) level.

Staff believes that with the certification of the 2006 natural gas fueled Ford Crown Victoria, part of the remaining funds available under the current AQIP could be allocated to the taxicab program. A proposal was submitted under the current solicitation to provide a buy down program for 200 natural gas taxicabs. Staff, therefore, recommends that $1,190,000 of the remaining available AQIP funds be allocated to assist in the buy down of 50 natural gas vehicles for taxicab services. The buy down is up to $23,800 per vehicle. Staff also proposes that the buy down program be implemented by staff rather than the proposer, in the same manner as the prior taxicab buy down program. The emission reductions associated with the buy down program will be accounted as part of the Rule 2202 emission reduction target.

Resource Impact

Total cost of expenditure for the proposed projects shall not exceed $3,135,449 from the Rule 2202 Air Quality Investment Program Special Revenue Fund.

Attachments (DOC* 235kb)

1. AQIP Funding and Participation – 2004 2^nd Semiannual Period
2. Summary of Emission Reduction Targets and Credit Balances
3. Summary of AQIP Proposals Received
4. Summary of Proposals by Type
5. Summary of Proposal Ratings
6. Recommendation for Funding

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