BOARD MEETING DATE: March 2, 2007
AGENDA NO. 5

Execute Fleet Modernization Contracts for Carl Moyer Memorial Air Quality Standards Attainment Program and Amend Contract with Consultant Providing Legal Advice

SYNOPSIS:

On July 7, 2006, the Board approved the release of a 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.  This program is being implemented on a first-come first-served basis, and will be ongoing until funds are expended.  The projects are evaluated as they are submitted on a monthly basis and are recommended for the Board's approval.  This action is to execute fleet modernization contracts under the Carl Moyer Program.  This action is also to execute a contract with a consultant to provide legal advice related to tax issues under the Carl Moyer Program for an additional amount of $25,000 from the Carl Moyer Program Fund SB1107 Account, allocated under administrative cost.

COMMITTEE:

Not Applicable

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 SB1107 Account:

1. A contract with Dwight Smith to replace a Class 8, 1977 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $86,289.
2. A contract with Hardy & Harper, Inc. to replace three Class 8 trucks of 1986, 1987, and 1989 model years with three Class 8, 2007 model year diesel trucks in an amount not to exceed $79,950.
3. A contract with Mountain Valley Express to replace a Class 8, 1988 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $56,934.
4. A contract with Flower Trucking, Inc. to replace a Class 8, 1989 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $70,229.
5. A contract with Dean Criske Trucking to replace a Class 8, 1987 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $127,764.
6. A contract with Hong Doy Tan to replace a Class 8, 1985 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $96,441.
7. A contract with Ricardo Sanchez to replace a Class 8, 1969 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $69,460.
8. A contract with A.M. Disposal Co. to replace a Class 8, 1984 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $87,127.
9. A contract with Intravaia Rock and Sand, Inc. to replace two Class 8 trucks of 1986 and 1987 model years with two Class 8, 2007 model year diesel trucks in an amount not to exceed $147,795.
10. A contract with Jose Hernandez to replace a Class 8, 1984 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $91,023.
11. A contract with DBA Payne & Sons Trucking to replace a Class 8, 1987 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $56,957.

2. Authorize the Chairman to execute a contract with Stradling, Yocca, Carlson & Rauth to seek legal advice for tax issues related to AQMD’s incentive funding programs in an amount not to exceed $25,000 with funds from the Carl Moyer Program Fund SB1107 Account designated as administrative costs.

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

Truck 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 and model year 2004 and newer natural gas trucks in an amount not to exceed $969,969.  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.  Total NOx and PM reductions from the recommended projects are approximately 8.8 tons/year and 0.81 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Global positioning systems (GPS) equipped with electronic monitoring units (EMU) will be installed on all trucks listed in Table 1 for monitoring the activity level of trucks in the South Coast Air Basin.  The GPS-EMU systems will be installed and paid under a separate contract between AQMD and a qualified GPS-EMU vendor.

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Projects
 

Contract Amendment for Legal Advice
Receiving funds under the AQMD’s incentive funding programs such as the Carl Moyer Program may potentially pose income tax complications for the award recipients.  Staff is therefore proposing that the Board approve execution of a contract with Stradling, Yocca, Carlson & Rauth to seek legal advice for tax issues related to AQMD’s incentive funding programs for the additional amount of $25,000 from the Carl Moyer Program Fund SB1107 Account designated as administrative costs.

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.

Outreach events were conducted on September 14^th, 2006 at the Port of Long Beach, September 21^st, 2006 at the Port of Los Angeles, and on October 10^th, 2006 at the Southern California Clean Vehicle Technology Expo in Ontario, CA.  In 2007, outreach efforts will be enhanced using AQMD consultants and conducting workshops in cooperation with labor unions and community groups.

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

Sole Source Justification

Section VA 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 1: “The cost of labor for preparing a bid solicitation package is in excess of the savings that would be derived from competitive proposals”.

In addition, the AQMD has an existing contract with Stradling, Yocca, Carlson & Rauth for seeking legal advice on issues related to prevailing wages, competitive bidding, and conflict of interest issues as they relate to AQMD projects.  The proposed contractor has the unique experience and expertise to further provide legal advice for potential tax issues related to the entities receiving funds from the AQMD under its different incentive funding programs such as the Carl Moyer Program.

Resource Impacts

The total project cost of $969,969 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account.  The total contract amendment cost of $25,000 for seeking legal advice on tax issues related to incentive programs will be funded from the Carl Moyer Program Fund SB 1107 Account designated as administrative cost.