BOARD MEETING DATE: September 7, 2007
AGENDA NO. 8

RECOMMENDED ACTIONS:

1. Authorize the Chairman to temporarily transfer $277,443 from the “Year 8” Carl Moyer Program Fund AB 923 Account to the “Year 8” Carl Moyer Program Fund SB 1107 Account, and later return the $277,443 to the AB 923 Account when SB 1107 funds become available from CARB.
2. 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 Robert Campos to replace one Class 8, 1990 model year diesel truck (1989 engine) with one Class 8, 2007 model year diesel truck (2007 engine) in an amount not to exceed $87,040.
   2. A contract with A.E. Schmidt Co., Inc. to replace one Class 8, 1987 model year diesel truck (1987 engine) and one Class 8, 1990 model year diesel truck (1989 engine) with two Class 8, 2007 model year diesel trucks (2007 engines) in an amount not to exceed $142,489.
   3. A contract with Pavement Recycling Systems to replace one Class 8, 1988 model year diesel truck (1987 engine) with one Class 8, 2008 model year diesel truck (2007 engine) in an amount not to exceed $47,914.

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

This action is to execute heavy-duty truck fleet modernization contracts to replace pre-1990 trucks with model year 2007 and newer diesel trucks in an amount not to exceed $277,443 from the “Year 8” Carl Moyer Program Fund AB 923 Account. CARB has approved “Year 8” SB 1107 funds for these projects, but at the present AQMD has not received sufficient funds from CARB to cover the cost of these projects. So, it is necessary to transfer funds from AB 923 Fund to SB 1107 Fund. When CARB disburses sufficient SB 1107 funds, the amount of $277,443 will be returned to AB 923 Fund.

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 2.5 tons/year and 0.2 tons/year, respectively. All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

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 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. The vehicles funded under this program will operate many years and will provide long-term emissions reductions.

Resource Impacts

The total project cost of $277,443 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund AB 923 Account. When SB 1107 account funds become available from CARB, $277,443 will be transferred back to the AB 923 Account.

Attachment:

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Projects

Table 1: Proposed Heavy-Duty Truck Fleet Modernization Projects