BOARD MEETING DATE: May 4, 2007
AGENDA NO. 4

PROPOSAL:

RECOMMENDED ACTIONS:

1. Transfer $71,949 in Clean Fuels funded projects approved in January 2007, as listed in Table 1, to the Carl Moyer Fund utilizing Carl Moyer Program turn-back funds as listed in Table 2, and $13,693 in Carl Moyer interest funds.
    
2.  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 Tracy Vann to replace one Class 8, 1990 model year diesel truck (1989 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $104,460.
2. A contract with Material Transport Service, Inc. to replace three Class 8, 1990 model year diesel trucks (1989 engines) with three Class 8, 2008 model year diesel trucks (2007 engines), one Class 8, 1989 model year diesel truck (1989 engine) with one Class 8, 2008 model year diesel truck (2007 engine), and one Class 8, 1984 model year diesel truck (1984 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $347,360.
3. A contract with DBA Miller Trucking to replace one Class 8, 1988 model year diesel truck (1988 engine) with one Class 8, 2008 model year diesel truck, (2007 engine) in an amount not to exceed $85,047.
4. A contract with Inland Topsoil Mixes to replace two Class 8, 1988 model year diesel trucks (1988 engines) with two Class 8, 2008 model year diesel trucks (2007 engines) in an amount not to exceed $204,307.
5. A contract with Jose Martinez 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 $139,878.
6. A contract with SunPac Containers to replace one Class 8, 1987 model year diesel truck (1987 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $63,786.
7. A contract with Reed Thomas Co., Inc. to replace one Class 8, 1985 model year diesel truck (1985 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $29,252.

3. Authorize the Chairman to amend an existing contract with Sukut Equipment, Inc. to replace three dozers with one dual engine scraper with no change in the total contract amount and an increase in emissions reductions.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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. In January 2007, the Board approved funding of construction equipment projects worth $3,998,787 using Clean Fuels Funds on the basis that this amount would be returned to the Clean Fuels program by future Carl Moyer turn-back funds. Currently, there is a sum of $58,256 in Carl Moyer turn-back funds.

Fleet Modernization Projects
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.

Existing Contract Amendment
In February 2006, Board approved execution of a contract with Sukut Equipment, Inc. to repower construction equipment in an amount not to exceed $2,271,230.

Proposal

Transfer of Funds
This action is to transfer $71,949 in Clean Fuels funded projects approved in January 2007, as listed in Table 1, to the Carl Moyer Fund utilizing Carl Moyer Program turn-back funds from Yusen Terminals as listed in Table 2, and $13,693 in Carl Moyer interest funds.

Fleet Modernization Projects
This action is also 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 $974,090. 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. 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 9 tons/year and 0.8 tons/year, respectively. All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Existing Contract Amendment
This action is also to amend an existing contract with Sukut Equipment, Inc. (Contract #06118) to replace three dozers with one dual engine scrasper with no change in the total contract amount of $2,271,230 and an increase in NOx emission reduction from 10.2 tons/year to 12.7 tons/year.

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 $974,090 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account.

Attachments  (DOC 265kb)

Table 1: Clean Fuels Project to Be Transferred to the Carl Moyer Fund
Table 2: Carl Moyer Project Returned Funds
Table 3: Proposed Heavy-Duty Truck Fleet Modernization Projects