BOARD MEETING DATE: February 2, 2007
AGENDA NO. 10

Approve Grant Award to Colton Joint Unified School District for Purchase of New CNG School Buses

SYNOPSIS:

Colton Joint Unified School District has applied for eight new CNG school buses and has offered eight of its newer diesel buses to three other schools willing to crush six pre-1987 and two pre-1977 buses.  These schools are Fontana, Coachella Valley school districts and Sherman American-Indian High School.  Under the Lower-Emission School Bus Program guidelines, Colton Joint Unified can be awarded the eight new CNG buses with a local match of $25,000 per bus for the replacement of the pre-1987 buses, and $10,000 per bus for the replacement of the pre-1977 buses.  This action is to award eight new CNG school buses to Colton Joint Unified School District in an amount not to exceed $1,348,408, comprised of up to $1,178,408 from the Carl Moyer Program Fund AB 923 Account, and up to $170,000 from the Clean Fuels Fund as Colton Joint’s required local match.

COMMITTEE:

Technology, January 26, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

1. Transfer $170,000 from the Clean Fuels Fund to the Carl Moyer Program Fund AB 923 Account to fund the Colton Joint Unified School District grant award.
2. Authorize the Chairman to approve a grant award to Colton Joint Unified School District for eight school bus replacements and infrastructure in an amount not to exceed $1,348,408 from the Carl Moyer Program Fund AB 923 Account, comprised of up to $1,178,408 from the Carl Moyer Program Fund AB 923 Account, and up to $170,000 from the Clean Fuels Fund as Colton Joint Unified School District’s required local match.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Exhaust emissions from high emitting diesel-fueled school buses present a risk to children and are a source of public exposure to toxic diesel particulate matter and smog-forming pollutants.  To reduce emissions from these vehicles, AQMD has funded the replacement of older diesel buses with new lower-emitting diesel or CNG buses, and the retrofit of diesel school buses with particulate (PM) traps.  Over 50 percent of the funds have been awarded to school districts that operate school buses in communities meeting legislated criteria for disproportionate impacts, as set in Health and Safety Code Section 43023.5 (AB 1390, Firebaugh).

Table 1 summarizes awards made under previous AQMD program announcements for replacement of pre-1987 school buses, and retrofits of school buses with PM traps.

Table 1: Summary of Past AQMD School Bus and PM Trap Awards

*Includes funds for CNG infrastructure

Proposal

Colton Joint Unified School District (USD) has applied for eight new CNG school buses and has offered eight of its newer diesel buses to three other schools willing to crush six pre-1987 and two pre-1977 buses.  These schools are Fontana and Coachella Valley School Districts, and Sherman American-Indian High School.  Staff recommends the Board’s approval for awarding Colton Joint USD’s request under the Lower-Emission School Bus Program guidelines.  Under these guidelines, Colton Joint USD can be awarded the eight new CNG buses with requirement of a local match of $25,000 per bus is made for the replacement of the pre-1987 buses and $10,000 per bus for the replacement of the pre-1977 buses.

Staff also recommends Board’s approval for providing the required match funds from the Clean Fuels Fund.

Colton Joint USD has proposed to donate eight newer diesel buses to Fontana, Coachella Valley School Districts and Sherman American-Indian High School.  The three schools, in turn, have promised to crush six pre1987 buses and two pre1977 buses.  Fontana and Coachella Valley will crush six pre-1987 school buses in total, and Fontana and American-Indian Sherman High School will each crush a pre-1977 school bus.

Table 2, shows the amount of the recommended award to Colton Joint USD from the AB 923 and the Clean Fuels funds.

Table 2: Replacement of Pre-1987 and Pre-1977 Buses

Table 3, shows the list of the school buses that Colton Joint Unified School District will transfer to the schools mentioned above.

Table 3: List of School Buses to Be Donated by Colton Joint

School Bus Purchases Through Competitive Bids

School buses are required to be purchased through valid piggy-back bids issued by other public school districts, joint power authorities, etc.  These bids require that new school buses comply with all current California and Federal motor vehicle performance, safety, and emission standards in effect at the time of bid.  Such competitive bids allow more options and flexibility for school districts.  Currently, there are two legally valid bids available: Waterford (AZ Bus Sales) and Covina-Valley (Bus West). 

Staff recommends that the Board approve school bus purchases through these two legally valid bids and any other subsequent valid bid as long as the price does not exceed the price of the existing bids.

Award recipients under the Lower-Emission School Bus Program have to provide a maximum of $25,000 for replacing and crushing a pre-1987 school bus or a maximum of $10,000 for replacing and crushing a pre-1977 school bus.  After deducting the school district’s contribution, the AQMD award for each bus will cover the balance of the base CNG bus price.  The base CNG price includes the price of the CNG bus not exceeding $144,000 and sales tax (in LA. County, $11,880 and in Orange, Riverside, San Bernardino counties, $11,160) for a total price of $155,880 in L.A. County and $155,160 in the other counties.  Funding of up to 10 percent of the award amount for each new CNG bus will be made available for CNG fueling infrastructure.  AQMD’s award for school buses manufactured under the new seat belt law is:

• $130, 888 per bus if sold in L.A. County,
• $130,160 if sold in Orange, Riverside and San Bernardino counties, and
• Another $4,000 is offered for the option of adding a fire suppressant system. 

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified.  This request is made under provision B.2.c (1) “The unique experience and capabilities of the proposed contractor or contractor team”, and c(3) “The contractor has ownership of key assets required for project performance.”

The success of AQMD’s Lower-Emission School Bus Program is largely dependent on the determination and persistence of a handful of school districts to pursue the path of cleaner air for their students.  Colton Joint USD is the sole owner of the newer buses being proposed to be donated to the other schools and desires to continue replacement of school buses with the cleanest available school buses.  With this award, Colton Joint USD will be able to provide student transportation with the cleanest school buses on almost all of its 50 routes.

Colton Joint USD meets the AB 1390 Environmental Justice criteria (i.e., an area where more than ten percent of the population is below the federal poverty level and is exposed to high levels of air toxics or particulate matter).  In addition, when the settlement was made in July 2001 with the owner of a new peaking power plant located in the City of Colton, it was understood that the PM and NOx emissions generated by the power plant would be mitigated by assisting projects in the nearby vicinity.  By providing funds to cover their local match, AQMD will be assisting Colton Joint USD to purchase clean CNG buses that would substantially mitigate NOx and PM emissions.

Benefits to AQMD

This award will provide less polluting and safer school transportation for school children in the city of Colton, and will reduce public exposure to toxic diesel particulate matter emissions.  Since Colton Joint USD qualifies under AB 1390 criteria, this award will maximize the potential emission benefits in low income, high-diesel and high-PM10 exposure areas, and will enhance the objectives of the Environmental Justice and Children’s Health Initiatives adopted by the Board.

Resource Impacts

Total funding for the purchase of eight new CNG buses shall not exceed $1,348,408, comprised of up to $1,178,408 from the Carl Moyer Program Fund AB 923 Account, and up to $170,000 from the Clean Fuels Fund.

Sufficient funds are available from the Clean Fuels Fund.  The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, 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.