BOARD MEETING DATE: December 5, 2008
AGENDA NO. 6

PROPOSAL:

Approve Grants for New School Buses and Retrofits, Issue Program Announcement for Replacement and Retrofit of School Buses and Amend SOON Contract

SYNOPSIS:

At its July 11, 2008 meeting, the Board authorized issuance of a Program Announcement with $67.4 million in Proposition 1B funds to replace pre-1987 school buses with new alternative fuel school buses and to retrofit school buses with Level 3 PM traps. The first two actions are to replace 299 pre-1987 school buses with new buses in an amount not to exceed $41,580,000 from Proposition 1B funds and $5,501,000 from AB 923 funds and to retrofit 613 buses with PM traps in an amount not to exceed $9,664,500 from Proposition 1B funds. The third action is to also issue a new program announcement soliciting applications for the replacement or retrofit of school buses with the remaining $16.1 million in Proposition 1B funds. The final requested action is to amend a contract under the SOON Provision with the addition of $94,073 from the Carl Moyer Program Fund SB 1107 Account.

COMMITTEE:

Technology, November 21, 2008, Recommended for Approval

RECOMMENDED ACTIONS:

A. Upon receipt of Proposition 1B funds, authorize the Chairman to approve grant awards to the following public schools, listed by County, for a total of 299 alternative fuel school bus replacements and infrastructure, as identified in Table 2, in an amount not to exceed $41,580,000 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82) and $5,501,000 from the Carl Moyer Program Fund AB 923 Account:

Los Angeles County

1. Azusa Unified School District to purchase 2 CNG buses with supporting infrastructure in an amount not to exceed $316,000;

2. Long Beach Unified School District to purchase 9 CNG buses with supporting infrastructure in an amount not to exceed $1,422,000;

3. Los Angeles Unified School District to purchase 260 CNG buses with supporting infrastructure in an amount not to exceed $41,080,000;

4. Newhall School District to purchase 2 propane buses with supporting infrastructure in an amount not to exceed $228,000;

5. Saugus Unified School District to purchase 2 propane buses with supporting infrastructure in an amount not to exceed $228,000;

6. Sulphur Springs School District to purchase 2 propane buses with supporting infrastructure in an amount not to exceed $228,000; and

7. William Hart School District to purchase 1 propane bus with supporting infrastructure in an amount not to exceed $114,000.
 

Orange County

  1. Westminster Unified School District to purchase 3 CNG buses with supporting infrastructure in an amount not to exceed $474,000.
     

Riverside County

  1. Jurupa Unified School District to purchase 1 CNG bus with supporting infrastructure in an amount not to exceed $158,000.
     

San Bernardino County

  1. Chaffey Joint School District to purchase 2 CNG buses with supporting infrastructure in an amount not to exceed $316,000;
  2. Chino Valley Unified School District to purchase 7 CNG buses with supporting infrastructure in an amount not to exceed $1,078,000;
  3. Redlands Unified School District to purchase 1 CNG bus with supporting infrastructure in an amount not to exceed $158,000; and
  4. Rim of the World Unified School District to purchase 7 CNG buses with supporting infrastructure in an amount not to exceed $1,281,000.

B. Upon receipt of Proposition 1B funds, authorize the Chairman to approve grant awards to the following public schools and private operators to retrofit 613 school buses with Level 3 PM traps, as identified in Table 3, in an amount not to exceed $9,664,500 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82):

  1. Aerocoach Transportation to retrofit 1 school bus in an amount not to exceed $20,000;
  2. Alliance Bus Lines, LLC to retrofit 2 school buses in an amount not to exceed $39,275;
  3. Anaheim City School District to retrofit 2 school buses in an amount not to exceed $39,150;
  4. Azusa Unified School District to retrofit 3 school buses in an amount not to exceed $58,737;
  5. Certified Transportation Services to retrofit 20 school buses in an amount not to exceed $396,000;
  6. Chino Valley Unified School District to retrofit 3 school buses in an amount not to exceed $59,000;
  7. Colton Joint Unified School District to retrofit 1 school bus in an amount not to exceed $20,000;
  8. Cucamonga School District to retrofit 9 school buses in an amount not to exceed $121,500;
  9. Desert Sands to retrofit 14 school buses in an amount not to exceed $263,600;
  10. Durham Services to retrofit 32 school buses in an amount not to exceed $416,000;
  11. El Monte Union School District to retrofit 2 school buses in an amount not to exceed $40,000;
  12. First Student to retrofit 291 school buses in an amount not to exceed $4,381,500;
  13. Fullerton School District to retrofit 4 school buses in an amount not to exceed $80,000;
  14. Huntington Beach Union High School District to retrofit 1 school bus in an amount not to exceed $18,500;
  15. Inglewood Unified School District to retrofit 6 school buses in an amount not to exceed $120,000;
  16. Monrovia Unified School District to retrofit 2 school buses in an amount not to exceed $39,550;
  17. Moreno Unified School District to retrofit 33 school buses in an amount not to exceed $646,200;
  18. Newhall School District to retrofit 5 school buses in an amount not to exceed $70,000;
  19. Newport Mesa Unified School District to retrofit 5 school buses in an amount not to exceed $100,000;
  20. Norwalk La Mirada Unified School District to retrofit 2 school buses in an amount not to exceed $40,000;
  21. Ocean View School District to retrofit 7 school buses in an amount not to exceed $140,000;
  22. Redlands Unified School District to retrofit 3 school buses in an amount not to exceed $57,750;
  23. Rialto Unified School District to retrofit 4 school buses in an amount not to exceed $56,000;
  24. Richmond Transportation to retrofit 1 school bus in an amount not to exceed $20,000;
  25. Rim of the World to retrofit 7 school buses in an amount not to exceed $94,500;
  26. Saugus Union Unified School District to retrofit 12 school buses in an amount not to exceed $240,000;
  27. Sulphur Springs Unified School District to retrofit 7 school buses in an amount not to exceed $134,650;
  28. Temecula Unified School District to retrofit 13 school buses in an amount not to exceed $260,000;
  29. Torrance Unified School District to retrofit 6 school buses in an amount not to exceed $111,000;
  30. Tumbleweed Transportation to retrofit 68 school buses in an amount not to exceed $884,000;
  31. William Hart Union School District to retrofit 31 school buses in an amount not to exceed $403,000;
  32. West Covina Unified School District to retrofit 6 school buses in an amount not to exceed $111,400; and
  33. Westminister School District to retrofit 10 school buses in an amount not to exceed $183,188.

C. Approve issuance of Program Announcement and Application PA #2009-05 to:

  1. Replace 1977-1986 school buses and 1987 and newer two stroke school buses owned by public school districts with alternative fuel buses, and
  2. Retrofit 1994 and newer school buses owned by public school districts and private operators with CARB verified Level 3 PM traps.

Approximately $16.1 million in Proposition 1B funds will be available for the replacement of pre-1987 buses and the retrofit of 1994 and newer buses. For the replacement of 1987 and newer two stroke school buses AB 923 funds will be used depending on the number of applications and availability of funds.

D. Authorize the Chairman to amend a previously awarded contract with Varner Construction to add $94,073 from the Carl Moyer Program Fund SB 1107 Account to cover 100% of the repower costs for five out of ten pieces of construction equipment under the SOON Provision.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Exhaust emissions from high emitting diesel-fueled school buses present a risk to children and are a source of public exposure to toxic diesel particulate matter and smog-forming pollutants. To reduce emissions from these vehicles, AQMD has funded the replacement of older diesel buses with new lower-emitting diesel or CNG buses, and the retrofit of diesel school buses with particulate (PM) traps. Over 50 percent of the funds have been awarded to school districts that operate school buses in communities meeting the AQMD’s criteria for disproportionately impacted areas, implementing Health and Safety Code Section 43023.5 (AB 1390, Firebaugh). Table 1 summarizes awards made under previous AQMD program announcements for replacement of pre-1987 school buses and retrofit of school buses with PM traps.

At its July 11, 2008 meeting, the Board issued program announcement PA #2009-01 seeking applications for replacement of pre-1987 school buses with new alternative fuel buses, and retrofit of 1994 and newer school buses with CARB verified Level 3 particulate traps. By the application deadline of August 29, 2008:

  • 13 school districts applied for 299 new school buses,
  • 26 school districts applied for 198 PM traps and
  • 7 private vendors applied for 415 PM traps.
     

Proposal

School Bus Replacements

Staff recommends the Board approve funding for replacement of 299 pre-1987 diesel school buses with new alternative fuel (292 CNG and 7 propane) buses, as identified in Table 2, in an amount not to exceed $47,081,000, comprised of $41,580,000 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82) and $5,501,000 from the Carl Moyer Program Fund AB 923 Account.

School districts will provide a maximum of $25,000 per bus for replacement and crushing of pre-1987 buses as their local match. The AQMD will contribute up to $140,000 for the balance of the base price of a new bus from the Proposition 1B funds. In addition, the AQMD will pay up to $4,000 per bus from AB 923 funds if the applicant opts to install a fire suppression system and/or a methane detection system in the new bus. The AQMD will also pay up to ten percent of its contribution for a new bus not exceeding $14,000 per bus for fueling infrastructure from AB 923 funds.

Staff also recommends providing $175,000 from the Carl Moyer Program Fund AB 923 Account as the Rim of the World School District’s local match. This funding will cover any unforeseen additional costs that may occur due to operation in the higher altitude and colder climates experienced in this region, where there is no extended experience using CNG.

School Bus Retrofits

Staff recommends the Board approve funding for the retrofit of 613 school buses with Level 3 CARB verified PM traps, as outlined in Table 3, in an amount not to exceed $9,664,500 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82). Prior to execution of the grant agreements, all awardees must provide evidence that the buses for which they have been granted funding are in compliance with the AQMD Rule 1195.

The AQMD awards will cover the cost of the trap, including sales tax and installation. For active filters requiring electrical regeneration, the awards will cover the cost of electrical outlets. In addition, funds will be provided for maintenance ranging from $1,500 to $2,500 per trap to cover de-ashing the filters for up to 11 years. The PM trap awards, as identfied in Table 3, are recommended for up to $20,000 per trap for active filters and lower amounts for passive filters as allowed within the limits of CARB’s 2008 Lower-Emission School Bus Program guidelines.

Issue Program Announcement and Application

Staff recommends the Board approve issuance of Program Announcement and Application PA #2009-05 for the replacement of pre-1987 school buses with new alternative fuel buses and the retrofit of 1994 and newer school buses with particulate traps for approximately $16.1 million, which is remaining from the Proposition (Fund 82) – Lower-Emission School Bus Fund. Applications will also be accepted for replacement of 1987 and newer two stroke diesel school buses with new alternative fuel buses. Funding will be provided from the Carl Moyer Program Fund AB 923 Account and will depend on the number of applications received. Program Announcement and Application PA #2009-05 is attached.

SOON Provision Contract Amendment

Varner Construction was awarded $1,201,674 for the repower of ten off-road pieces of construction equipment on July 11, 2008. This amount covered up to 85% of the repower costs. Since then, Varner Construction has submitted information that five of the ten pieces of equipment were rebuilt within the last 36 months and is requesting that these pieces of equipment be funded at 100% rather than 85% of the repower costs for an additional $94,073. Staff recommends amending the contract with Varner Construction to add this $94,073 from the Carl Moyer Program Fund SB 1107 Account to cover the repower costs for five of the ten pieces of equipment under the SOON Provision. This will bring the total contract costs to $1,295,747.
 

School Bus Purchases through Competitive Bids

School buses must be purchased through valid piggy-back bids issued by other public school districts, joint power authorities, etc. These bids require that new school buses comply with all current California and Federal motor vehicle performance, safety, and emission standards in effect at the time of bid. Such competitive bids allow more options and flexibility for school districts. Currently, there are two legally valid bids available, Waterford (A-Z Bus Sales) and South-West (BusWest). Staff recommends that the Board approve school bus purchases through these two legally valid bids and any other subsequent valid bid as long as the price does not exceed the price of the existing bids.

Staff has previously met with the school bus vendors and discussed the issue of potential tax credits allowed under the Federal Energy Bill. In case of availability of tax credits from the sale of these buses, the school bus vendors have agreed to work with staff in order to use the credits towards the sale of more buses as requested by public school districts.
 

Funding Distribution and AB 1390 considerations

Funding is awarded to all applicants requesting school bus replacements. The awards remove the oldest buses in the Basin for which funding has been requested per the requirements of SB 88 (Stats 2007 Ch 181). These awards are also in compliance with AB 1390 (Firebaugh), which requires at least half the total funding directly benefit low-income communities and communities of color that are disproportionately impacted by air pollution according to the following criteria:

  • Poverty Level: All school districts in areas where at least 10% of the population falls below the Federal poverty level based on the Year 2000 Census will be eligible to be ranked in this category.
  • PM Exposure:  All school districts in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. Based on an annual average, the highest 15% of PM concentration is 46 micrograms per cubic meter and above.
  • Toxic Exposure: Based on AQMD’s MATES II estimates, all projects in areas with the highest 15% of toxic exposure, will be eligible to be ranked in this category. The highest 15% represents a cancer risk of 1,139 in a million and above (MATES II study).

Any applicant qualifying based on both the poverty level and either PM or toxic exposure qualifies for disproportionate impact funding. In this solicitation, Jurupa, Long Beach, Los Angeles and Westminster school districts qualified under AB 1390. Awards to these schools equals 273 buses out of 299 awarded, far exceeding the minimum fifty percent requirement. Similarly, the retrofit awards also comply with AB 1390, since the majority of private operators provide services to the Los Angeles Unified School District.
 

Outreach

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

The program announcement was also mailed directly to the Directors of Transportation at public school districts within the AQMD’s jurisdiction.
 

Benefits to AQMD

The successful implementation of the Lower-Emission School Bus Replacement and Retrofit Program provides safer and less polluting transportation for school children and reduces public exposure to toxic diesel particulate matter emissions. In addition, these awards comply with AB 1390 requirements, which reduces air pollution in low-income, high-diesel and high-PM10 exposure areas. Finally, these projects support the objectives of the Environmental Justice and Children’s Health Initiatives adopted by the AQMD Board.
 

Resource Impacts

Total funding for the replacement of 299 school buses and their associated infrastructure shall not exceed $47,081,000, comprised of $41,580,000 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82) and $5,501,000 from the Carl Moyer Program Fund AB 923 Account as identified in Table 2.

Total funding for the retrofit of 613 school buses with Level 3 PM traps shall not exceed $9,664,500 from the Proposition 1B – Lower-Emission School Bus Fund (Fund 82) as identified in Table 3.

Total funding for contract amendment under the SOON Provision shall not exceed $94,073 from the Carl Moyer Program Fund SB 1107 Account.
 

Attachments (ZIP, 927k)

Attachment 1: 

  • Table 1: Summary of Past AQMD School Bus and PM Trap Awards
  • Table 2: Alternative Fuel School Bus & Infrastructure Awards Recommended List
  • Table 3: Level 3 PM Trap Awards Recommended List

Attachment 2: Program Announcement and Application #PA 2009-05


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