BOARD MEETING DATE: October 5, 2007
AGENDA NO. 17

PROPOSAL:

Approve Multiple Contract Awards and One Award Modification under FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs

SYNOPSIS:

 At its August 16 and September 20, 2007 meetings, the MSRC approved multiple contract awards and one award modification under the FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs. Awards include funding to several off-road construction equipment owners for participation in the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program as well as two awards for the purchase of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per bhp-hr standard. The MSRC also approved a modification to the Mountain-Area CNG School Bus Demonstration Program. The MSRC seeks AQMD Board approval for these contract awards and modification under the FYs 2006-07 and 2007-08 Work Programs.

COMMITTEE:

Mobile Source Air Pollution Reduction Review, August 16 and September 20, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve two awards totaling $416,000 under the Advanced Low-Emission Heavy-Duty Natural Gas Solid Waste Collection Engine Program as part of the FY 2006-07 Work Program, as described in this letter, and as follows:
   1. A contract to Waste Management-Santa Ana in an amount not to exceed $160,000 for up to five low-emission natural gas refuse trucks; and
   2. A contract to Waste Management-Dewey’s in an amount not to exceed $256,000 for up to eight low-emission natural gas refuse trucks;
2. Approve a modified Mountain-Area CNG School Bus Demonstration Program changing school district participation under the FY 2006-07 AB 2766 Discretionary Fund Work Program, as described in this letter;
3. Approve 18 awards totaling $3,641,013 (using the $1 million originally allocated to the “Showcase” Program in the FY 2006-07 Work Program plus $2,641,013 from the FY 2007-08 Work Program) to off-road construction equipment owners for participation in the Off-Road Diesel Construction Equipment Retrofit “Showcase” Program as part of the FY 2006-07 Discretionary Fund Work Program, as described in this letter, and as follows:
   1. An award to the County Sanitation Districts of Los Angeles County in an amount not to exceed $251,781 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   2. An award to Community Recycling & Resource Recovery, Inc. in an amount not to exceed $226,245 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   3. An award to the City of Los Angeles, General Services and Bureau of Sanitation Departments, in an amount not to exceed $155,192 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   4. An award to the California Department of Transportation (Caltrans) in an amount not to exceed $1,081,818 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   5. An award to Shimmick Construction in an amount not to exceed $82,850 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   6. An award to AltFillisch Contractors, Inc. in an amount not to exceed $371,765 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   7. An award to ECCO Equipment Corporation in an amount not to exceed 174,625 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   8. An award to SKANSKA in an amount not to exceed $111,700 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   9. An award to Recycled Materials Company in an amount not to exceed $99,900 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   10. An award to Sukut Equipment, Inc. in an amount not to exceed $16,820 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   11. An award to the City of Burbank in an amount not to exceed $8,895 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   12. An award to Griffifth Company in an amount not to exceed $150,905 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   13. An award to Tiger 4 Equipment Leasing in an amount not to exceed $393,217 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   14. An award to the City of Culver City Transportation Department in an amount not to exceed $75,365 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   15. An award to PEED Equipment Company in an amount not to exceed $21,825 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   16. An award to Albert W. Davies, Inc. in an amount not to exceed $39,200 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment;
   17. An award to Dan Copp Crushing in an amount not to exceed $44,600 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment; and
   18. An award to Reed Thomas Company, Inc. in an amount not to exceed $334,310 to participate in the “Showcase” Program through the purchase, installation, demonstration and evaluation of diesel emission control systems on heavy-duty off-road diesel construction equipment.
4. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary, and previously granted in prior work programs; and
5.  Authorize the Chairman of the Board to execute contracts under FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.

Ron Roberts
Vice-Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board.

Advanced Low-Emission Heavy-Duty Natural Gas Solid Waste Collection Engine Program
Under the FY 2006-07 Work Program, the MSRC released a $1.728 million Program Announcement #PA2007-10 for the purchase or repower of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard. It included a geographic minimum of $256,000 per county and funds would be awarded on a first-come, first-served basis. Applications received the first day are considered equal and funding will be pro-rated if first-day applications exceed the funding target. If each county does not request their full geographic minimum by the closing date, the funds can be used for applications from other counties on a first-come, first-served basis. The Program Announcement application period commenced April 3, 2007, and closed June 29, 2007. At its August 16, 2007 meeting, the MSRC considered requests for funding from 11 applications under this Program; details are provided in the Proposals section.

Mountain-Area CNG School Bus Demonstration Program
On October 19, 2006, the MSRC approved two sole-source contracts to implement a Mountain Area CNG School Bus Demonstration Program. The AQMD Board approved these awards on December 1, 2006. The sole-source awards were to BusWest and S-W Compressors, Inc. in an aggregate amount not to exceed $150,930 to assist in administering this Program. It was intended that the program would be in partnership with the Bear Valley and Rim of the World Unified School Districts. Each school district would be provided one leased CNG bus and the use of a temporary CNG refueling station for a one-year period during which time data will be collected to determine the feasibility of CNG buses in these high-altitude, mountainous regions. Rim of the World USD has indicated they are not able to participate in the demonstration program, despite multiple attempts to persuade them otherwise. At its September 20, 2007 meeting, the MSRC considered options presented by its Technical Advisory Committee on how best to precede with the demonstration program; details are provided in the Proposals section.

Off-Road Diesel Construction Equipment Retrofit “Showcase” Program
As an element of their FY 2006-07 Work Program, the MSRC partnered with CARB to conduct a broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment. The MSRC initially allocated $1 million to implement the “Showcase” Program, which will reduce the public’s exposure to diesel exhaust particulate while encouraging the verification of diesel retrofit devices for off-road construction equipment. A primary goal of the “Showcase” Program is to provide essential in-use operations data necessary to support the verification of off-road retrofit devices. On March 2, 2007, the MSRC released a Request for Qualifications to identify eligible retrofit device manufacturers and a Program Announcement to solicit the participation of off-road construction equipment owners. The RFQ closed May 31, 2007 and the PA closed June 29, 2007. A total of 16 manufacturers submitted qualifications for 30 diesel emission control devices, and 18 equipment owners submitted applications for a total of 230 off-road vehicles. Requests for funding totaled nearly $5 million. At its September 20, 2007 meeting, the MSRC considered award recommendations by its Technical Advisory Committee to conduct this broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment; details are provided in the Proposals section.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFQ and PA 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 RFQ and PA 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. Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

CARB, as the MSRC’s partner in the “Showcase” Program, sent out special direct mailings to retrofit equipment manufacturers as well as fleets to apprise them of this opportunity. The solicitations were also placed on the MSRC’s website at http://www.cleantransportationfunding.org.

Bidders’ Conference

A workshop for diesel emission control systems manufacturers was conducted on March 22, 2007, at 1:00 p.m. in Conference Room CC8. Another workshop for off-road construction equipment fleet owners was also conducted on March 22, 2007, at 2:00 p.m. in Conference Room CC8.

Proposal Evaluation and Panel Composition

The MSRC’s Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the application received to determine eligibility, using the criteria within the respective solicitations. The MSRC-TAC is a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Proposals

At its August 16 and September 20, 2007 meeting, the MSRC considered recommendations from its MSRC-TAC and unanimously approved the following:

Advanced Low-Emission Heavy-Duty Natural Gas Solid Waste Collection Engine Program
As mentioned in the Background section, under the FY 2006-07 Work Program, the MSRC released a $1.728 million Program Announcement for the purchase or repower of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard. At its August 16, 2007 meeting, the MSRC awarded funding to 11 applicants totaling $3,968,000 under this Program. On September 7, 2007, the AQMD Board approved 9 of the 11 awards totaling $3,552,000. The remaining two awards, as follows, are hereby submitted again for the AQMD Board’s approval as part of the FY 2006-07 Work Program:

1. A contract to Waste Management-Santa Ana in an amount not to exceed $160,000 for up to five low-emission natural gas refuse trucks; and
2. A contract to Waste Management-Dewey’s in an amount not to exceed $256,000 for up to eight low-emission natural gas refuse trucks.

Mountain-Area CNG School Bus Demonstration Program

As mentioned in the Background section, the MSRC and the AQMD Board previously approved two sole-source contracts to implement a Mountain Area CNG School Bus Demonstration Program. The sole-source awards were to BusWest and S-W Compressors, Inc. in an aggregate amount not to exceed $150,930 to assist in administering this Program. It was originally intended that one bus each would be demonstrated by Bear Valley and Rim of the World Unified School Districts. BusWest would provide each school district with one leased CNG bus and S-W Compressors, Inc. would provide a temporary CNG refueling station. During the one-year demonstration, data will be collected to determine the feasibility of CNG buses in these high-altitude, mountainous regions. Rim of the World USD has indicated they are not able to participate in the demonstration program, despite multiple attempts to persuade them otherwise. Bear Valley USD, however, expressed their desire to demonstrate both CNG school buses and committed to removing a second older diesel bus from service if given the opportunity to demonstrate the second CNG bus. At its September 20, 2007 meeting, the MSRC unanimously approved allocating both CNG buses for demonstration purposes to Bear Valley USD and withdrew their offer to Rim of the World USD to participate in the demonstration program. There are no changes proposed to the two sole-source contracts, neither the award amounts nor the recipient. The MSRC requests the AQMD Board’s approval of the modified Mountain-Area CNG School Bus Demonstration Program changing school district participation in the Mountain-Area CNG School Bus Demonstration Program under the FY 2006-07 AB 2766 Discretionary Fund Work Program.

Off-Road Diesel Construction Equipment Retrofit “Showcase” Program

As mentioned in the Background section, as an element of their FY 2006-07 Work Program, the MSRC partnered with CARB to conduct a broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment. The MSRC initially allocated $1 million to implement the “Showcase” Program, which will reduce the public’s exposure to diesel exhaust particulate while encouraging the verification of diesel retrofit devices for off-road construction equipment. A primary goal of the “Showcase” Program is to provide essential in-use operations data necessary to support the verification of off-road retrofit devices.

On March 2, 2007, the MSRC released a Request for Qualifications to identify eligible retrofit device manufacturers and a Program Announcement to solicit the participation of off-road construction equipment fleet owners. The RFQ closed May 31, 2007 and the PA closed June 29, 2007. A total of 16 manufacturers submitted qualifications for 30 diesel emission control devices, and 18 equipment owners submitted applications for a total of 230 off-road vehicles. Requests for funding totaled nearly $5 million. The MSRC’s funds will be awarded to the equipment owners to fund the purchase and installation of the actual diesel emission control devices. Members of the MSRC’s Technical Advisory Committee and MSRC staff worked closely with CARB to match compatible diesel emission control devices with appropriate off-road construction equipment and ranked the devices and equipment to achieve the broadest demonstration across vehicle classes.

At its September 20, 2007 meeting, the MSRC unanimously awarded $3,641,013 using the $1 million originally allocated to the “Showcase” Program from the FY 2006-07 Work Program plus $2,641,013 from the FY 2007-08 Work Program to 18 off-road construction equipment fleet owners, as follows:

1. An award to the County Sanitation Districts of Los Angeles County in an amount not to exceed $251,781 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
2. An award to Community Recycling & Resource Recovery, Inc. in an amount not to exceed $226,245 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
3. An award to the City of Los Angeles, General Services and Bureau of Sanitation Departments, in an amount not to exceed $155,192 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
4. An award to the California Department of Transportation (Caltrans) in an amount not to exceed $1,081,818 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
5. An award to Shimmick Construction in an amount not to exceed $82,850 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
6. An award to AltFillisch Contractors, Inc. in an amount not to exceed $371,765 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
7. An award to ECCO Equipment Corporation in an amount not to exceed 174,625 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
8. An award to SKANSKA in an amount not to exceed $111,700 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
9. An award to Recycled Materials Company in an amount not to exceed $99,900 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
10. An award to Sukut Equipment, Inc. in an amount not to exceed $16,820 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
11. An award to the City of Burbank in an amount not to exceed $8,895 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
12. An award to Griffifth Company in an amount not to exceed $150,905 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
13. An award to Tiger 4 Equipment Leasing in an amount not to exceed $393,217;
14. An award to the City of Culver City Transportation Department in an amount not to exceed $75,365;
15. An award to PEED Equipment Company in an amount not to exceed $21,825 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
16. An award to Albert W. Davies, Inc. in an amount not to exceed $39,200 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment;
17. An award to Dan Copp Crushing in an amount not to exceed $44,600 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment; and
18. An award to Reed Thomas Company, Inc. in an amount not to exceed $334,310 to participate in the broad-based demonstration of diesel emission control systems on heavy-duty off-road diesel construction equipment.

In July 2007 the ARB approved the “In-Use Off-Road Diesel Vehicles” statewide regulation to address diesel vehicles including off-road construction vehicles. ARB estimates that the regulation will prevent 4,000 premature deaths and at its peak retrofit 100,000 vehicles. The “Showcase” Program is a key to the success in enforcing the statewide regulation since it is intended to result in the verification of diesel emissions control systems for off-road vehicles. The MSRC requests the AQMD Board’s approval of the above awards to implement the “Showcase” Program, as part of the FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs.

Additionally, since the requests for funding totaled nearly $5 million, and to ensure a broad-based demonstration across as many vehicle classes as possible, AQMD staff proposes to join in partnering the “Showcase” Program. From the backup list, which were all eligible applications exceeding the original $1 million allocation set aside by the MSRC, AQMD staff proposes to request the AQMD Governing Board to fund the demonstration of selective catalytic reduction systems with diesel particulate filter technology for both NOx and PM emissions control. The AQMD Board will consider concurrently the MSRC awards and its staff’s recommendation to fund 11 contract awards totaling $1,245,750 to demonstrate combined NOx and PM reducing emission technologies on 32 pieces of construction equipment. The MSRC requests authority to adjust the funds allocated to each project specified in this Board letter by up to five percent of the project’s recommended funding. The Board has granted this authority to the MSRC for all past work programs. Finally, the MSRC requests the Board authorize the AQMD Chairman of the Board the authority to execute the agreements described in this letter under the FYs 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

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