BOARD MEETING DATE: January 5, 2007
AGENDA NO. 8

Execute Construction Equipment and Truck Fleet Modernization Contracts for the Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On November 3, 2006, the Board approved the release of Program Announcement, in an amount not to exceed $12 million from the Clean Fuels Fund and Carl Moyer Program returned funds to fund cleaner construction equipment.  Also, on July 7, 2006, the Board approved the release of Program Announcement to solicit projects to replace pre-1990 diesel trucks with Model Year 2006 and newer diesel or 2004 and newer natural gas trucks at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program.  Both these programs are being implemented on a first-come first-served basis, and will be on-going until funds are expended.  These projects are evaluated as they are submitted on a monthly basis and are recommended for the Board's approval.  This action is to execute construction equipment and fleet modernization contracts under the Carl Moyer Program and Clean Fuels Fund.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following construction equipment contracts for the FY 2005-06 Carl Moyer Program:
   1. A contract with Southern California Grading, Inc. to repower one dozer and three single engine scrapers in an amount not to exceed $362,469 from the Carl Moyer Program Fund.
   2. A contract with Post Company Grading to repower one single engine and four dual engine diesel scrapers in an amount not to exceed $886,984 from the Carl Moyer Program Fund.
   3. A contract with Jagur Tractor to repower six dual engine scrapers in an amount not to exceed $1,486,880 from the Carl Moyer Program Fund.
   4. A contract with Grade-X Equipment, Inc. to repower one diesel waterpull, seven dual engine diesel scrapers, and one dozer in an amount not to exceed $1,655,532 from the Carl Moyer Program Fund.
   5. A contract with Vance Corporation to repower two diesel dual engine scrapers in an amount not to exceed $283,831 from the Carl Moyer Program Fund, $110,920 from the Carl Moyer Program Fund SB1107 Account, and $3,703 from the Carl Moyer Program Fund AB923 Account.
   6. A contract with Sukut Equipment Company to repower two diesel dual engine scrapers in an amount not to exceed $398,455 from the Carl Moyer Program Fund.
   7. A contract with Leko Construction to repower one dozer in an amount not to exceed $97,708 from the Carl Moyer Program Fund.
   8. A contract with Burrtec Waste Industries, Colton, to repower one diesel dozer in an amount not to exceed $69,812 from the Carl Moyer Program Fund.
2. Authorize the Chairman to execute the following construction equipment contracts under the Clean Fuels Program Fund:
   1. A contract with Robertson’s Ready Mix to repower two diesel dual engine shovels in an amount not to exceed $524,300.
   2. A contract with Rentrac Inc. to repower nine diesel dual engine scrapers in an amount not to exceed $1,793,047.
   3. A contract with Burrtec Waste Industries, Inc., Agua Mansa, to repower one dozer in an amount not to exceed $71,949.
   4. A contract with Burrtec Waste Industries, Inc., West Valley, to repower one dozer in an amount not to exceed $77,105.
   5. A contract with Peed Equipment Company, to repower six diesel dual engine scrapers in an amount not to exceed $1,327,386.
   6. A contract with Sukut Equipment Company to repower one diesel dual engine scraper in an amount not to exceed $205,000.
3. Authorize the Chairman to execute the following contracts under the Carl Moyer Fleet Modernization Program from the “Year 8” Carl Moyer Program Fund SB1107 Account:
   1. A contract with Juan Carlos Velasquez to replace a Class 8, 1988 model year diesel truck with a Class 8, 2006 model year diesel truck in an amount not to exceed $105,802.
   2. A contract with Ron Stanley to replace a Class 8, 1973 model year diesel truck with a Class 8, 2006 model year diesel truck in an amount not to exceed $129,180.
   3. A contract with Easy Roll Off Services to replace a Class 8, 1985 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $61,501.
   4. A contract with Arytyun Berberyan to replace a Class 8, 1986 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $89,376.
   5. A contract with Trench Shoring Company to replace four Class 8, 1989 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $241,782.
   6. A contract with G& F Roof Supply to replace two Class 8, 1988 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $145,401.
   7. A contract with Pollard Swain, Inc. to replace a Class 7, 1986 model year diesel truck with a Class 7, 2006 model year diesel truck in an amount not to exceed $29,948.
   8. A contract with Armen Dedeyan to replace a Class 8, 1986 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $103,206.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funds on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment.  CARB’s Carl Moyer Program guidelines have strict requirements for expenditure of funds for each year before allocation of new funds for each subsequent year.  On November 3, 2006, the Board approved the release of Program Announcement PA #2007-07, in an amount not to exceed $12 million comprised of up to $4 million from the Clean Fuels Fund and returned funds from the Carl Moyer Program to fund cleaner construction equipment on a first-come first-served basis with the requirement that all equipment be installed by May 31, 2007, and be invoiced no later than June 30, 2007.  Currently $9,356,294 is available, which is comprised of $5,356,294 in Carl Moyer Program returned funds and $4,000,000 from the Clean Fuels Fund.  The funds available under this program are listed in Table 1, and Table 2 provides a detailed account of the Carl Moyer Program returned funds.

In 2005, a heavy-duty on-road fleet modernization program category was added to the Carl Moyer Program.  The Fleet Modernization Program provides financial incentives to replace older high-polluting diesel trucks with newer lower emissions diesel and natural gas trucks.  At its February 2006 meeting, the Board set aside $6 million from the “Year 8” funds for the Fleet Modernization Program.  In July 2006, AQMD released the Program Announcement, PA #2007-01, to solicit projects for this program.

Table 1.  Carl Moyer Program Available Funds

Table 2.  Detailed List of Carl Moyer Returned Funds

Proposal

This action is to execute construction equipment contracts under the Carl Moyer Program in an amount not to exceed $9,356,294.  Table 3, provides a detailed list of all the projects proposed for funding.  These projects were chosen based on the first-come first-served criterion and the cost effectiveness of NOx and PM reductions.  Total NOx and PM reductions from the recommended projects are approximately 300 tons/year and 9 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by May 31, 2007, and to submit all invoices by June 30, 2007.

This action is also to execute heavy-duty truck fleet modernization contractsto replace pre-1990 trucks with model year 2006 and newer diesel trucks and model year 2004 and newer natural gas trucks in an amount not to exceed $906,196.  Table 4, provides a detailed list of all the projects proposed for funding.  These projects were chosen based on the first-come first-served criterion and the cost effectiveness of NOx and PM reductions.  Total NOx and PM reductions from the recommended projects are approximately 8 tons/year and 0.7 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Staff proposes to recommend construction equipment projects submitted under PA #2007-07 to the Board on a monthly basis for approval as more turn-back funds from Carl Moyer Years 1 through 7 become available.  Staff also proposes to recommend fleet modernization projects submitted under PA #2007-01 to the Board on a monthly basis for approval until the total funding of $6 million is expended.

Approximately 33% of the recommended award dollars for the construction projects and almost all the recommended projects under the Fleet Modernization Program are under the Environmental Justice (AB 1390) category in disproportionately impacted (DI) areas.

Table 3:  Recommended Awards

Table 4: Proposed Heavy-Duty Truck Fleet Modernization Projects

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the RFP/RFQ have been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, 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.

Benefits to AQMD

The successful implementation of the proposed projects will help the AQMD significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner.

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 RFP will operate many years and will provide long-term emissions reductions.

Resource Impacts

The total project cost of up to $9,356,294 for the proposed construction equipment projects will be comprised of $5,356,294 of returned funds from the Carl Moyer Program Fund and $4,000,000 from the Clean Fuels Fund.  The total project cost of $906,196 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account.

The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, 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.