BOARD MEETING DATE: July 13, 2007
AGENDA NO. 3

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts under the Carl Moyer Fleet Modernization Program from the “Year 8” Carl Moyer Program Fund SB 1107 Account:

1. A contract with Reed Thomas Co., Inc. to replace one Class 8, 1989 model year diesel truck (1989 engine) with one Class 8, 2007 model year diesel truck (2007 engine) in an amount not to exceed $63,531.
2. A contract with Triple R.G. Transport to replace one Class 8, 1989 model year diesel truck (1989 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $82,672.
3. A contract with Sean Brodie Trucking to replace one Class 8, 1980 model year diesel truck (1985 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $61,378.
4. A contract with Jose Serrano to replace one Class 8, 1984 model year diesel truck (1983 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $76,969.
5. A contract with Warren Rafiel to replace one Class 8, 1979 model year diesel truck (1979 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $130,738.
6. A contract with General Auction Company to replace two Class 8, 1989 model year diesel trucks (1988 engines) with two Class 8, 2008 model year diesel trucks (2007 engines) in an amount not to exceed $127,502.
7. A contract with Ovanes Hagopian to replace one Class 8, 1984 model year diesel truck with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $56,295.
8. A contract with Emesio Briseno to replace one Class 8, 1974 model year diesel truck with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $38,980.

2. Authorized the Chairman to execute modifications to the following Carl Moyer Program Contracts:

1. A no cost modification to the contract with R.F. Dickson (Contract #07075) to repower ten street sweepers with CNG engines instead of purchasing ten new street sweepers.
2. A modification to the contract with Leko Construction (Contract #07313) to repower one diesel tractor with a Tier 3 engine instead of a Tier 2 engine in an amount not to exceed $116,747, instead of the original amount of $66,480 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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.

Proposal

Fleet Modernization
This action is to execute heavy-duty truck fleet modernization contracts to replace pre-1990 trucks with model year 2006 and newer diesel trucks in an amount not to exceed $638,065 from the “Year 8” Carl Moyer Program Fund SB 1107 Account. Table 1, 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. GPS units will be installed on these trucks under an AQMD contract with a GPS vendor, and the cost will be reimbursed by the Carl Moyer Program.

Total NOx and PM reductions from the recommended projects are approximately 5.2 tons/year and 0.5 tons/year, respectively. All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Contract Modifications
Staff proposes modifications to the following two contracts:

1. A no-cost modification to the contract with R.F. Dickson (Contract #07075) to repower ten street sweepers with CNG engines instead of purchasing ten new street sweepers.
2. A modification to the contract with Leko Construction (Contract #07313) increasing the contract amount by $50,267 to repower one diesel tractor with Tier 3 engine instead of a a Tier 2 engine in an amount not to exceed $116,747, instead of the original amount of $66,480 from the Clean Fuels Fund.

Both projects are under the “Year 8” Carl Moyer Program and are scheduled to be completed on time. The Leko Construction project is funded under the Clean Fuels Fund, because it is one of the projects that has been funded as a backup project under the “Year 8” Carl Moyer Program. The proposed modification results in larger emission reductions due to the Tier 3 engine, with the cost-effectiveness remaining below $5,000 per ton with the increased cost.

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 Air Basin. Also, staff has held several public workshops in the South Coast Air Basin, advertised in a trade journal, and has used consultants for outreach purposes.

Additionally, potential bidders may have been notified utilizing 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, the State of California Contracts Register website, 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

The successful implementation of the proposed projects will help the AQMD significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner. The vehicles funded under this program will operate many years and will provide long-term emissions reductions.

Resource Impacts

The total project cost of $638,065 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account. The increased project funding of $50,267 for modification of the Leko Construction contract will be funded from the Clean Fuels Fund.

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.

Attachment

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Projects

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Projects