HomeMy WebLinkAbout6/16/2004 - STAFF REPORTS (10) DATE: June 16, 2004
TO: City Council
FROM: Assistant City Manager- Administrations"
SUBJECT: Memorandum of Understanding between the Coachella Valley
Association of Governments (CVAG) and the City of Palm Springs
to fund the Regional PM10 Street Sweeping from local AB2766
funds.
RECOMMENDATION:
It is recommended that the City Council approve and authorize the Mayor to
execute a Memorandum of Understanding between CVAG and the City to fund
the Regional PM10 Street Sweeping Program from local AB2766 funds.
SUMMARY:
The Coachella Valley Association of Governments (CVAG) currently administers
the Regional PM10 Street Sweeping Program. Due to a funding shortfall, CVAG
is requesting each member jurisdiction to approve a Memorandum of
Understanding that will modify the existing AB2766 formula paid by each city to
help fund this program. Under the proposed formula, the City's contribution of
AB2766 funds will increase from $17,513 to $23,645 or $6,132 annually.
BACKGROUND:
Assembly Bill 2766 (AB2766) was adopted in 1990 to provide a stable revenue
source for local government agencies to reduce air pollution from motor vehicles
and for related planning monitoring, enforcement and technical studies. AB2766
authorizes the Department of Motor Vehicles to collect a registration surcharge of
$4 per vehicle to fund transportation-related projects that reduce air pollution. In
Fiscal Year 2003-04, the City received approximately $50,200 a year in AB2766
funds. The City uses its AB2766 fund for employee trip reduction programs as
required by the South Coast Air Quality Management District, as well as to fund
various regional programs including the PM10 Street Sweeping Program.
The Coachella Valley Association of Governments (CVAG) currently administers
the Regional PM10 Street Sweeping Program. Historically, this program has
been funded through a combination of Federal CMAQ (Congestion and Mitigation
of Air Quality Program) funds (88.53%), and local matching funds (11.47%).
Although each CVAG member jurisdiction contributes 33% of their total AB2766
fund to CVAG, the majority of the local match for this program has been paid by
Sunline. In 2003, an audit determined that Sunline could no longer pay its share
of the local match. Due to the loss of Sunline's portion of the local match, CVAG
was forced to shift funds from other programs and to use some of its reserves to
cover the Regional PM10 Street Sweeping Program. CVAG has agreed to
cover this program through the end of June while alternative funding is secured.
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CVAG has received an air quality grant from the South Coast Air Quality
Management District (SCAQMD) in the amount of$258,000 over the next three
years to offset a portion of the funds that had been paid by Sunline. An analysis
performed by CVAG indicates that the current 33% formula will create a shortfall
in funds required to properly maintain the program. At their March 29, 2004
meeting, CVAG's Executive Committee approved the modification of the AB2766
formula from 33% to 45% to help provide the local match beginning July 1, 2004
through June 30, 2007.
In Fiscal Year 2004-05 the City is projected to receive approximately $52,545 in
AB 2766 funds. Under the revised formula of 45%, the City will contribute an
additional $6,132 to CVAG.
While the PM10 Street Sweeping Program is certainly an important part of the
region's overall effort to achieve compliance with state and federal air quality
standards, the increase in the City's contribution to CVAG will ultimately reduce
the amount of available funding the City has used for other air quality programs
including the employee trip reduction program.
The South Coast Air Quality Management District (Rule 2202 and Rule 1502)
requires any employer that employs 250 or more employees to implement an
employee trip reduction plan which includes programs and strategies for reducing
work related vehicle trips. Because the City currently has over 450 employees it
is subject to this requirement. The City's trip reduction program is similar to other
public agencies and offers financial incentives to employees that rideshare or
take public transportation to work. These incentives are funded directly from the
City's AB2766 fund. Staff is concerned that a reduction in the amount of AB2766
funds could adversely impact the City's ability to offer these incentives in the
future. Ultimately, this could affect our compliance with District rules regarding
rideshare and trip reduction. If the City falls out of compliance with District rules
it could be subject to fines. Staff will aggressively monitor our compliance efforts
to insure that this does not occur. In addition, we will undertake a
comprehensive review of our current trip reduction plan to see if any changes
can be made to encourage a reduction in work related trips other than providing
financial incentives to employees.
y L. Butzl sistant City Manager- Administration
APPROVED !
City Manager
Attachments:
1. Minute Order
2. Memorandum of Understanding
2
AB2766 MEMORANDUM OF UNDERSTANDING
BETWEEN
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
AND
CITY OF PALM SPRINGS
JULY1, 2004
This Memorandum of Understanding (MOU) is made and entered into by and between the
Coachella Valley Association of Governments (CVAG) and the City of Palm Springs. The
purpose of this MOU is to documentthe parties'understanding of and responsibilities forthe
allocation of portion ofthefunds received bythe Cityof Palm Springsfrom revenues derived
from the AB2766 Motor Vehicle Registration Fee Assessments Program to CVAG for the
Coachella Valley Regional PM10 Air Quality Program.
BACKGROUND
AB2766 funds areto be used to reduce emissions caused by motorvehicles consistentwith
requirements of the California Clean Air Act and the South Coast Air Quality Management
Plan. Staff of the South Coast Air Quality Management District(SCAQM D)have stated it was
the District's intention when allocating initial supportto CVAG,that the portion of PM10 in the
Coachella Valley attributable to mobile sources be covered by local AB2766 funds allocated
to CVAG to help continue the regional administration of the PM10 Air Quality Program.
In addition to the regional administration of the PM10 Air Quality Program, CVAG's regional
AB2766 reserve funds have been allocated to the Clean Streets Management Program to
serve as a local match(11.47%)forfederal CMAQ funds (88.53%)which fund the Regional
PM 10 Street Sweeping Program.This amounted to$192,000 in regional AB2766 funds for
fiscal year 2003-04 and has depleted CVAG's reserve.
CVAG received an air quality grant from the South Coast Air Quality Management District
(AQMD)in the amountof$258,000 overthe nextthree years to assistwith the local regional
match for the Regional PM10 Street Sweeping Program. Their grant is tied to a dollar for
dollar match from CVAG. Analysis shows that we fall short of the dollar for dollar match to
AQMD's grant. Member jurisdictions will therefore need to contribute additional AB2766
funds.
At their March 29, 2004 meeting, the Executive Committee approved the following motion:
"That the Executive Committee approve the modification of CVAG's AB2766 formula from
33% to 45% to help provide the local match of 11.47% required for federal funds for the
Regional PM10 Street Sweeping Program beginning July 1, 2004 through June 30, 2007.
AB2766 MODEL MOU 4/29/04 0 3
RESTRICTIONS
The funds accruing to CVAG from this MOU are designated for the regional administration of
the PM10 Air Quality Program as outlined by the"State Implementation Plan for PM10 in the
Coachella Valley" (CVSIP)which was adopted by the SCAQMD Governing Board in June,
2002. Expenditures will be for salary and expenses relating to the ongoing management of
the Program such as staff, meetings, the preparation of agendas, publicity, community
outreach, and local match for the Regional PM10 Street Sweeping Program.
PROCEDURE
In 1991 each CVAG jurisdiction passed an ordinance adopting the AB2766 Program,setting
up a separate account from which to disburse and subsequently monitor and audit these
revenues. Revenues are distributed quarterly bythe SCAQMD, based on each jurisdiction's
proportionate number of registered motor vehicles. Effective July 1, 2004, and for each
quarter thereafter,the Cityof Palm Springs shall forward an amountequal to 45%of revenues
to CVAG. CVAG shall likewise deposit all monies received as a result of this MOU in a
separate account, and provide an annual report to each jurisdiction.
CANCELLATION CLAUSE
This MOU shall continue in effect until or unless the AB2766 MotorVehicle Registration Fee
Assessments Program is discontinued, orthe Coachella Valley Regional PM10 Air Quality
Program, as administered by CVAG, shall be discontinued or CVAG, for whatever reason,
is dissolved or otherwise disbanded, whichever shall occur sooner.
EXHIBIT A: A82766 Funds for 2002-03 and 1" Quarter 2003-04
EXHIBIT B: Revenue and Expenditures Projections for Fiscal Year Ending 6/30/2005
EXHIBIT C: Sample of impacts of increase in current formula to jurisdictions
CO=1A1SSOCIATION OF GOVERNMENTS
By:
Title: Chairman Date:
CITY OF PALM SPRINGS
By:
Title: Date:
(0"
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AB2766 MODEL MOU 4/29/04 F NFrank1in\PM10 Air Oualilyl9B 2766\Junsdichonal AB2766 MOU.wpd
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
EXHIBIT "A"
PMIO AIR QUALITY PROGRAM
AB 2766 Funds Received from Member Jurisdictions
Vehicle Registration Revenue
ACCOUNTING TABLE
Fiscal Veas 711102-6/30/03 - _ Fifeul:�fear 711103
15t QIr Ending.1301.2 2nd on Entling 1021102 3N QiC Ending 3131103 40 Qtr Ending 613M3 FY Oyo3 1MOtr Ending al30/03 2ntl glr Enb,n912/31/1 3, QIr En01ng 1131104 4N QV.Entling 6/30/04 FY 03104
Jurisdictions Amount Amount Amount Amount Total Amount Amount Amount Amount Total
Billed/Recived Billed/Recived Billed/Recived Billed/Recived Billed/Recived Billed/Reclved Billed/Recived Billed/Recived Billed/Recived BilledlRecived
Cathedral City $4,383.24 $4,092.36 $4,434.80 $4,480.22 $17,390.62 $4,570.30 $4,570.30
Coachella 2,346.10 2,190.40 2,373.69 2,357.73 $9,267.92 2,584.68 $2,584.58
Desert Hot Springs 1,631.65 1,523.37 1,650.84 1,113.34 $5,919.20 1,661.93 $1,661.93
Indian Wells 419.98 392.11 424.92 350.91 $1,587.92 425.15 $425.15
Indio 0�32,957.27
,039.76 4,705.32 5,099.04 4,930.92 $19,775.04 5,265.99 $5,265.99
La Quinta ,770.90 2,587.02 2,803.49 2,800.33 $10,961.74 2,942.19 $2,942.19
Palm Desert ,137.05 3,862.51 4,185.71 4,223.71 $16,408.98 4,241.78 $4,241.78
Palm S rin s ,219.12 3,939.13 4,268.74 4,300.22 $16,736.21 4,251.44 $4,251.44
Rancho Mirage ,385.45 1,293.51 1,401.75 1,356.83 $5,437.54 1,444.52 $1,444.52
River.Co.Unincor . ,624.02 6,184.44 6,701.93 6,839.39 $26,349.78 6,994.14 $6,994.14
TOTALS $30,770.17 $33,344.91 $32,762.60 $129,834.95 $34,382.12 $34,382.12
_ Willits ried6yfCA4MD=FY'03/o3 Di36arsed6y.SCA4MD:FY'OS/04:
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr. Total 1st Qtr. 2nd Qtr. 3rd Qtr. 41h Qtr. Total
Jlirisdictiolls Ending Ending Ending Ending for FY Ending Ending Ending Ending for FY
9/30/02 12/31/02 3/31103 6130103 2002/2003 9130193 12/31103 31311D4 e130104 20D312004
Cathedral City $13,149.74 $12,277.10 $13,304.41 $13,440.67 $52,171.92 $13,710.91 $13,710.91
Coachella 7,038.30 6,571.22 7,121.08 7,073.18 $27,803.78 7,754.05 $7,754.05
Desert Hot Springs 4,894.95 4,570.11 4,952.52 3,340.03 $17,757.61 4,985.79 $4,985.79
Indian Wells 1,259.94 1,176.33 1,274.76 1,052.73 $4,763.76 1,275.44 $1,275.44
Indio 15,119.30 14,115.96 15,297.15 14,792.76 $59,325.17 15,797.99 $15,797.99
La Quinta 8,312.72 7,761.08 8,410.49 8,401 00 $32,885.29 8,826.58 $8,826.58
Palm Desert 12,411.15 11,587.53 12,557.14 12,671.14 $49,226.96 12,725.35 $12,725.35
Palm Springs 12,657.35 11,817 39 12,806.23 12,927.65 $50,208.62 12,754.34 $12,754.34
Rancho Mirage 4,156.36 3,88054 4,205.25 4,070.50 $16,312.65 4,333.57 $4,333.57
River.Co. Unincor 127,876.84 119,390.80 129,380.98 132,034.52 $508,683.14 135,022.07 $135,022.07
TOTALS $206,876.65 $193,148.06 $209,310.01 $209,804.18 $819,138.90 $217,186.09 $217,186.09
r NCBe .ails ab ldg-n Run Date 215 Agn04
EXHIBIT "B"
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
AB2766 - REVENUE AND EXPENDITURES PROJECTIONS
FOR FISCAL YEAR ENDING JUNE 309 2005
Current Percentage(33.33%) Proposed Percentage(45.0%)
Revenue:
Investment income 1,000 1,000
AB2766 Revenue 135,867 183,435
Total Revenues 136,867 184,435
Expenditures:
Operating expenditures-CVAG (66,000) (66,000)
CMAQ program match-CVAG (7,000) (7,000)
Proposed contacts (3,000) (3,000)
Nick Nickerson's contract match (7,000) (7,000)
Street Sweeping Contact Match- CVAG
(S 172,050-50%AB2766;50%AQMD) (86,025) (86,025)
Total Expenditures (169,025) (169,025)
Balance after projectedFY2004/05 operations (32,158) 15,410
AB2766 FUND BALANCE
Balance as at 6/30/03 307,714
FY2003/04 PROJECTIONS
Revenue:
Investment income 1,000
AB2766 Revenue 132,821
Total Revenues 133,821
Expenditures:
Operating expenditures-CVAG (66,000)
CMAQ program match-CVAG (7,000)
Proposed contacts (10,000)
Nick Nickerson's contact match (7,000)
Sheet Sweeping Contact Match-CVAG (194,514)
In F 04/05, cash flow
Total Expenditures (284,514) needed will be less:
Balance after projected FY2003/04 operations 157,021 157,021
Cash flow needed for the program (141,321) (125,000)
Remainder for program 15,700 32,021
EXHIBIT "C"
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
VEHICLE REGISTRATION REVENUE / AB2766
FISCAL YEAR 2004/05 PROJECTION
PROJECTED DIST.
BY SCAQDID CVAG PORTION JURISDICTION PORTION
JURISDICTION (2.3%,INCREASE) 45.00% 33.33% 55.00% 66.67% Difference
Cathechal City $ 54,599.43 $ 24,569.74 $ 18.197.99 $ 30,029.69 $ 36,401.44 $ 6,371.75
Coachella $ 29,097.46 $ 13,093.86 $ 9,698.18 $ 16,003.60 $ 19,399.28 $ 3,395.67
Desert Hot Springs $ 18,583.85 $ 8,362.73 $ 6,194.00 $ 10,221.12 $ 12,389.85 $ 2,168.74
Indian Wells $ 4,985.41 $ 2,243.43 $ 1,661.64 $ 2,741.98 $ 3,323.77 $ 581.80
Indio $ 62,085.51 $ 27,938.48 $ 20,693.10 $ 34,147.03 $ 41,392.41 $ 7,245.38
La Quinta $ 34,415.41 $ 15,486.93 $ 11,470.66 $ 18,928.48 $ 22,944.75 $ 4,016.28
Palm Desert $ 51,517.44 $ 23,182.85 $ 17,170.76 $ 28,334.59 $ 34,346.68 $ 6,012.09
Palm Springs $ 52,544.78 $ 23,645.15 $ 17,513.18 $ 28,899.63 $ 35,031.60 $ 6,131.98
Rancho Mirage $ 17,071.66 $ 7,682.25 $ 5,699.98 $ 9,389.41 $ 11,381.68 $ 1,992.26
County-Unincorporated $ 532,351.66 $ 37,229.78 S 27,577.61 $ 495,121.88 $ 504,774.05 $ 9,652.17
TOTAL $ 857,252.61 $ 183,435.21 $ 135,867.10 $ 673,817.40 $ 721,385.51 $ 47,568.11
V
MINUTE ORDER NO.
APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE COACHELLA
VALLEY ASSOCIATION OF GOVERNMENTS AND
THE CITY OF PALM SPRINGS TO FUND THE
REGIONAL PM10 STREET SWEEPING PROGRAM
THROUGH AN INCREASE IN LOCAL AB2766
FUNDS
---------------
I HEREBY CERTIFY that this Minute Order, approving the Memorandum of
Understanding between the Coachella Valley Association of Governments and
the City of Palm Springs to fund the Regional PM10 Street Sweeping Program
through an increase in local AB2766 Funds was adopted by the City Council of
the City of Palm Springs, California, in a meeting thereof held on the 16th day of
June, 2004.
PATRICIA A. SANDERS
City Clerk
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