BOARD MEETING DATE: February 3, 2006
AGENDA NO. 5

Execute Contract and Agreement to Implement High Emitter Identification Program and Voluntary High Emitting Vehicle Scrapping Program

SYNPOSIS:

On September 9, 2005, the Board issued an RFP to solicit a contractor to identify the high emitting vehicles within the jurisdictional boundaries of the AQMD using remote sensing device (RSD) technology, and to solicit a licensed vehicle dismantler for a Voluntary High Emitting Vehicle Scrapping Program. Each solicitation received one response. This action is to execute a contract with Environmental Systems Products Holdings, Inc. for the High Emitter Identification Program at a cost not to exceed $1 million. Addition-ally, staff recommends entering into an agreement with Pick-Your-Part Auto Wrecking for the auto dismantling and scrapping program consisting of a reimbursement to the AQMD of $15.00 per vehicle scrapped.

COMMITTEE:

Technology, January 27, 2006. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

1. Authorize the Chairman to a execute contract with Environmental Systems Products Holdings, Inc. for the High Emitter Identification Program at a cost not to exceed $1 million from the Carl Moyer Program Fund, AB 923 Special Revenue Account.
2. Authorize the Chairman to enter into an agreement with Pick-Your-Part Auto Wrecking for the auto dismantling and scrapping program consisting of a reimbursement to the AQMD of $15.00 per vehicle scrapped. Funds received from the scrapping pro-gram will be placed in the Carl Moyer Program Fund, AB 923 Special Revenue Ac-count.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has a long history implementing programs to reduce mobile source related emissions, including programs that encourage the use of low-emission vehicles for purposes of achieving state and federal ambient air quality standards. The Board has adopted several programs to reduce emissions from on-road and off-road vehicles, as well as emissions from other equipment, including the School Bus Incentive Program and the Carl Moyer Program.

On September 23, 2004, the Governor signed AB 923 (Firebaugh) which resulted in a significant increase in funding for programs that achieve emission reductions from vehicular sources and off-road engines. At its February 2005 meeting, the Board established the AB 923 Special Revenue Account under the Carl Moyer Fund to receive and administer funds authorized under provisions of AB 923, and subsequently approved the allocation of $4 million from this Special Revenue Account to identify the highest emitting light- and medium-duty vehicles operating within AQMD jurisdictional boundaries using remote sensing technology and reduce emissions from these vehicles through a voluntary vehicle emission testing, repair and scrapping program (the Program). The Program, described in more detail in the September 9, 2005 Board letter, comprises five elements: 1) Identifying High Emitting Vehicles using Remote Sensing Devices (RSDs), at a cost not to exceed $1 million; 2) Emission Testing and Repair through a sole source contract with the Foundation of California Community Colleges (FCCC) at a cost not to exceed $1 million; 3) a Voluntary Vehicle Scrapping Incentive program through a licensed auto dismantler not to exceed $1 million; 4) a Contingency Fund to allow for adjustments in the program ($700,000); and 5) Outreach and Data Analysis ($300,000).

The September 9, 2005 Board letter requested, and was granted Board approval to continue the development of the Program by approving: the sole source contract with the FCCC for the Emission Testing and Repair component; the issuance of a RFP to develop and implement the High Emitting Vehicle Identification using RSDs component; and the issuance of a program announcement for licensed vehicle dismantlers for the Voluntary Vehicle Scrapping Incentive component of the Program.

Proposal

High Emitting Vehicle Identification

Staff proposes to develop and implement a program to identify the highest emitting light- and medium-duty vehicles operating within the AQMD jurisdictional boundaries and re-duce precursor emissions from high emitting vehicles through a voluntary repair or retirement (scrapping) program. The program will use remote sensing devices (RSDs) in conjunction with video cameras and recording equipment to measure and identify approximately 10% of the total light- and medium-duty vehicle population within the AQMD jurisdictional boundaries. A database of high emitting vehicles will be developed to include vehicle identification information using DMV records.

RFP# 2006-06 – Identifying, and Maintaining a Database for High-Emitting Light- and Medium-Duty On-Road Vehicles Using Remote Sensing Technology was issued on September 9, 2005. An optional Bidder’s Conference was held October 4, 2005 and was at-tended by six individuals representing four companies or agencies. RFP# 2006-06 was closed for bidding at 5:00 pm PST on November 16, 2005. One proposal from Environ-mental Systems Products Holdings, Inc. (ESP) was received in response to this RFP.

All proposals submitted for RFP #2006-06 were evaluated in accordance with the specifications in Section IX of the RFP. The evaluation criteria incorporated the following categories and maximum scores: Technical – 70 points, Cost – 30 points, and Additional points for Small Business, Disabled Veterans, Local Business and Low Emission Vehicle Business – 15 points. Proposals were required to score a minimum of 56 points in the Technical category to qualify for further evaluation. Two AQMD staff members and one CARB staff member familiar with the project were used to evaluate the proposal from ESP. The table below lists the scores for the ESP proposal and shows ESP’s proposal exceeding the minimum requirements in Technical proficiency, and achieving a score of 97.7 of a maximum 100 points, excluding additional points for which ESP does not qualify.

In complying with the requirements of #2006-06, ESP provided two cost estimates: one estimate when the RSD is supplied by the contractor and one when the RSD equipment is supplied by or through the AQMD. ESP cost estimates to conduct the program is $950,000 using its own state-of-the-art RSD Model 4600. However, the cost would be reduced to $808,971 if the RSD equipment was provided to the project. Staff is in discussions with the Bureau of Automotive Repair (BAR) regarding the availability of their RSD Model 4500 for the program.

ESP headquartered in East Granby, Connecticut, is a leading environmental technology company that provides clean air and safety solutions to domestic and world markets. The company offers a comprehensive array of vehicle emissions and safety inspection products and services. ESP has more than 25 years experience in the automotive inspection and maintenance (I/M) industry and holds 100 patents for emissions testing and related products, including ESP’s patented technology, AccuScan™, used in RSDs to unobtrusively and accurately measure a vehicle's exhaust in less than 1 second. ESP equipment and software programs have been used in technology and services tests of more than 27 million vehicles each year. The company’s centralized vehicle test equipment is used to inspect 12 million vehicles in nine states and the Canadian Province of British Columbia. The company also manufactures and markets decentralized test equipment and offers warranty support, post-sale servicing and independent data management for U.S. and international programs.
As such, staff is requesting Board approval to enter into a contract with Environmental Systems Products Holdings, Inc. for the High Emitter Identification Program at a cost not to exceed $1 million.

Voluntary Vehicle Scrapping Incentive

Program Announcement #PA 2006-04 was issued on September 9, 2005 to solicit competitive proposals from qualified automobile dismantlers and wreckers for the scrapping of high emitting vehicles. The successful bidders must be DMV certified dismantlers, knowledgeable and experienced in the scrapping of light- and medium-duty vehicles and offer cost sharing based on the scrap value of the retired vehicles. Revenue from these dismantlers would be deposited into the contingency fund established by the Board under the AB 923 restricted revenue account in the subsequent paragraph. The dismantler or dismantlers would have a dismantling facility within each of the four-county region of the AQMD. The qualified contractor or contractors will be required to have all emission-related and drive train parts of the identified high emitting vehicle removed and destroyed. Proof of destruction, as well as income eligibility will be required prior to vehicle owner’s receipt of the incentive funds and/or vouchers.

One bid from Pick-Your-Part Auto Wrecking was received in response to the program announcement. Their proposal meets the requirements of the Program Announcement as listed in the table below.

As such, staff is requesting Board approval to enter into an agreement with Pick-Your-Part Auto Wrecking for the auto dismantling and scrapping program consisting of a re-imbursement to the AQMD of $15.00 per vehicle scrapped and a total cost not to exceed $1 million. Revenues received from this program will be placed in the Carl Moyer Pro-gram Fund, AB 923 Special Revenue Account for future projects.

Benefits to AQMD

As emission contributions from stationary sources become a smaller component of the AQMD’s emissions inventory, the focus has been directed at mobile source emissions. Mobile source emissions represent a major category of the emissions inventories for both ozone and fine particulate matter. This proposed program focuses on the light- and medium-duty category which is a major category in the on-road emissions inventory. With the State of California having primary authority to control emissions from mobile sources, this AQMD program will be a voluntary program for consumers interested in reducing emissions from their vehicles either via a repair assistance program or a vehicle retirement and replacement program.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP and inviting bids was published in the following publications:

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Di-rectory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it could be viewed by making menu se-lections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportu-nities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Resource Impacts

Total allocations approved for the Program is $4 million from the AB 923 Special Revenue Account under the Carl Moyer Fund. Of that amount, the Board, on September 9, 2005, approved $1 million for a sole source contract with the Foundation of California Community Colleges (FCCC) to implement the Emission Testing and Repair component, $700,000 for a Contingency Fund, and $300,000 for Outreach and Data Analysis. Of the remaining $2 million, staff recommends (1) contracting with Environmental Systems Products Holdings, Inc. for the High Emitter Identification using RSDs component of the Program at a cost not to exceed $1 million; and (2) signing an agreement with Pick-Your-Part Auto Wrecking and establishing a Voluntary Vehicle Scrapping Incentive component of the Program in an amount not to exceed $1 million under the AB 923 Special Revenue Account.

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