BOARD MEETING DATE: June 1, 2007
AGENDA NO. 17
PROPOSAL:
Amend Funding Award from MSRC for CNG School Buses to Private School Bus Transportation Service Provider
SYNOPSIS:
On September 8, 2006, the Board approved an MSRC allocation of $2 million for CNG school bus incentives to private school bus transportation service providers. Subsequently, on February 2, 2007, the Board approved an additional $2 million from the MSRC for this program. On January 5, 2007, the Board approved an award to Student Transportation of America, a private school bus transportation service provider, in the amount of $1,137,580 to purchase 23 CNG school buses which equates to an incentive amount of $49,460 per bus. Since the original award, the awardee has learned that fewer school buses are required. This action is to amend the award to Student Transportation of America by reducing the number of school buses from 23 to 10, and by increasing the award for each bus from $49,460 to $60,000 per bus. The total amount of the award will decrease from $1,137,580 to $600,000. An amount of $537,580 will revert to the Discretionary Fund for future allocation by the MSRC.
COMMITTEE:
Mobile Source Air Pollution Reduction Review, April 19, 2007, Recommended for Approval
RECOMMENDED ACTION:
Amend an award to Student Transportation of America for the cost differential to purchase 10 CNG school buses to be used in the South Coast Air District jurisdiction in an amount not to exceed $600,000 from MSRC Fund 23. An amount of $537,580 will revert to the MSRC Discretionary Fund.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
At its August 17, 2006 meeting, the MSRC approved funding under the FY 2006-07 Work Program for CNG school bus incentives to private school bus transportation service providers. Specifically, the MSRC approved an allocation of $2 million for CNG school bus incentives for private school bus transportation service providers with the program to be administered by AQMD staff. Subsequently, the Board approved this action at its September 8, 2006 meeting. At its January 5, 2007 meeting, the Board approved an award to Student Transportation of America in the amount of $1,137,580 from the MSRC to purchase 23 CNG school buses. Student Transportation now seeks a change in this award.
Proposal
This action is to amend the award to Student Transportation of America for the purchase of CNG school buses. Since the original award, Student Transportation of America has learned that due to existing contract obligations, fewer school buses are required, and the buses must be purchased directly from the dealer at a higher cost per bus. Therefore, Student Transportation of America has requested an amendment to the award whereby the MSRC will fund 10 buses instead of the 23 buses in the original award, and the amount awarded for each bus will increase from $49,460 to $60,000. The overall award will decrease from $1,137,580 to $600,000. An amount of $537,580 will revert to the MSRC Discretionary Fund.
Benefits to AQMD
This project will reduce exhaust emissions from higher emitting diesel school buses and exposure to toxic diesel particulate matter by school children and others that work in or near diesel-powered school buses. In addition, this project will further facilitate the implementation of Rule 1195.
Resource Impacts
The total amount of MSRC funding for Student Transportation of America will be reduced from $1,137,580 to $600,000. Subsequent to Board approval of funding award, a remaining balance of $987,371.20 would be available to other private school bus transportation service providers on a first-come, first-served basis.