BOARD MEETING DATE: July 7, 2006
AGENDA NO. 38

Execute Contracts for Carl Moyer Memorial Air Quality Standards Attainment Program with Returned Funds from Incomplete Projects

SYNOPSIS:

The AQMD has administered its Carl Moyer Program since FY 1998-99, awarding more than $85 million in projects for purchase of low-emitting heavy-duty vehicles, engines, and equipment.  Some of the awarded contracts have been returned by the recipients due to various reasons such as economic conditions and other business priorities.  This action is to execute new contracts under the Carl Moyer Program with companies that were unable to receive funds in the last round of awards in February 2006, with turn-back funds in an amount not to exceed $9.1 million.

COMMITTEE:

Technology, June 23, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts with turn-back dollars from the Carl Moyer Program Fund:
   1. A contract with Rentrac for the repower of five diesel dual engine scrapers in an amount not to exceed $1,064,270 from the Carl Moyer Program Fund Prop. 40 Account.
   2. A contract with Cash Grading for the repower of one dozer and 5 diesel dual engine scrapers in an amount not to exceed $74,614 from the Carl Moyer Program Prop. 40 Account and $862,545 from the Carl Moyer Program Fund.
   3. A contract with Bruno Farms for the repower of one diesel agricultural tractor in an amount not to exceed $55,821 from the Carl Moyer Program Fund SB1107 Account.
   4. A contract with JKM Equipment for the repower of seven diesel dual engine scrapers in an amount not to exceed $1,277,124 from the Carl Moyer Program Fund SB1107 Account and $212,854 from the Carl Moyer Program Fund.
   5. A contract with Yeager Skanska for the repower of one dual engine scraper in an amount not to exceed $194,000 from the Carl Moyer Program Fund.
   6. A contract with Parsec, Inc. for the purchase of ten new LNG yard tractors in an amount not to exceed $489,780 from the Carl Moyer Program Fund.
   7. A contract with KEC Engineering for the repower of four diesel cranes in an amount not to exceed $137,592 from the Carl Moyer Program Fund.
   8. A contract with Moss Equipment for the repower of 10 diesel dual engine scrapers in an amount not to exceed $1,326,625 from the Carl Moyer Program Fund.
   9. A contract with TNT Grading to repower seven diesel scrapers in an amount not to exceed $608,438 from the Carl Moyer Program Fund.
   10. A contract with American Contracting to repower two diesel dual engine scrapers in an amount not to exceed $374,990 from the Carl Moyer Program Fund.
   11. A contract with Dalton Trucking to repower two diesel pipe loader in an amount not to exceed $52,590 from the Carl Moyer Program Fund.
2. Authorize the Chairman to modify the following contracts with turn-back dollars from the Carl Moyer Program Fund:
   1. A contract with Pick Your Part to add the repower of three diesel scrap metal loaders in an amount not to exceed $20,065 from the Carl Moyer Program Fund Prop. 40 Account, $20,065 from the Carl Moyer Program Fund SB1107 Account, and $24,967 from the Carl Moyer Program Fund to the existing contract that is for the repower of 16 diesel scrap metal loaders for $496,988 from the Carl Moyer Program Fund Account AB923 originally approved on February 3, 2006.
   2. A contract with Sukut Equipment to add the repower of five diesel dozers, and six diesel single engine scrapers in an amount not to exceed $41,893 from the Carl Moyer Program Fund Prop. 40 Account, and $740,522 from the Carl Moyer Program Fund to the existing contract that is for the repower of one dual engine and 16 single engine diesel scrapers for $1,488,925 from the Carl Moyer Program Fund AB923 Account originally approved on February 3, 2006.
   3. A contract with Jagur Tractor to add the repower of eight diesel dual engine scrapers in an amount not to exceed $1,438,560 from the Carl Moyer Program Fund to the existing contract that is for the repower of nine diesel scrapers for $794,903 from the Carl Moyer Program Fund AB923 Account originally approved on February 3, 2006.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funding on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment.  Eligible projects include cleaner on- and off-road, marine, locomotive, and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units.  To date, the AQMD has awarded more than $85 million in projects for purchase of low-emitting heavy-duty vehicles, engines, and equipment under its Carl Moyer Program.  Some of the awarded contracts have been returned by the recipients due to various reasons such as economic conditions and other business priorities.  Table 1 shows the total amount of returned funds currently available under the Carl Moyer Program, and Table 2 shows the detailed breakdown of the turn-back funds.

Table 1:  Carl Moyer Program Available Dollars

Table 2:  Returned Program Dollars

Proposal

At its July 8, 2005 meeting, the Board approved the release of RFP #P2006-01 to solicit proposals for Year Seven of the Carl Moyer Program.  By the closing date of September 30, 2005, a total of 72 proposals were submitted requesting approximately $52 million in funding.  On December 2, 2005, and February 3, 2006, the Board approved awards for a total of $19,625,677.  This action is to execute new contracts under the Carl Moyer Program with companies that were unable to receive funds in the last round of awards under RFP #P2006-01, with turn-back funds in an amount not to exceed $9,017,315.  This amount is comprised of $1,353,010 from the Carl Moyer Program Fund Account SB1107, $1,200,842 from the Carl Moyer Program Fund Account Proposition 40, and $6,463,463 from the Carl Moyer Program Fund.  Table 3 provides a detailed list of all the projects proposed for funding.

Total NOx and PM reductions from the recommended projects are approximately 463 tons/year and 16 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by June 30, 2007.

In case of availability of additional turn-back funds, staff recommends the Board to approve the selection of projects and execution of contracts from unfunded projects under RFP #P2006-01, which is provided as a back-up list in Attachment 1.

Funding Distribution

Table 4 summarizes staff’s recommendation for awards in disproportionately impacted areas under the requirements of AB1390.  The total amount of projects funded in disproportionately impacted areas is $6,914,027.  The total amount of projects funded solely based on cost-effectiveness is $2,100,288.  In summary, 76.7% of the projects are in disproportionately impacted areas.  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:
   1. 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
   2. 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 level is 46 micrograms per cubic meter and above, on an annual average, or
   3. 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.

Table 3:  Recommended Awards by Fund Accounts

Table 4:  Award Recommendations and Proposed Funding Distribution

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:

Additionally, potential bidders may have been 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/).  Information was also available on 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 vehicles and equipment funded under this recommendation will operate many years and will provide long-term emissions reductions.

Resource Impacts

Funding for the recommended projects shall not exceed $9,017,315 in turn-back funds under the Carl Moyer Program comprised of $1,353,010 from the Carl Moyer Program Fund Account SB1107, $1,200,842 from the Carl Moyer Program Fund Proposition 40 Account, and $6,463,463 from the Carl Moyer Program Fund, which includes projected interest.

Attachment
Backup list of Qualified Projects from RFP #P2006-01

Attachment 1

Backup List of Qualified Projects from RFP #P2006-01