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HomeMy WebLinkAboutC29935 MOU AB2766 - PM10 Street Sweeping PgrmSTAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: August 27, 2020 PREPARED BY: Amy Lawrence, Management Analyst REQUEST: Consider Approval of Amendment Five to AB 2766 Memorandum of Understanding (MOU) between the Coachella Valley Association of Governments (CVAG) and Member Jurisdictions to Provide Sustainable Funding for the Regional PM10 Street Sweeping Program Recommendation By Minute Motion, 1. Approve amendment five to AB 2766 Memorandum of Understanding (MOU) between the Coachella Valley Association of Governments (CVAG) and member jurisdictions to maintain contributions from the cities and the County at 75% to provide Sustainable Funding for the Regional PM10 Street Sweeping Program from July 1, 2020 through June 30, 2024. 2. Authorize the City Manager to execute amendment five to the AB 2766 MOU. Strateaic Plan Obiective N/A Discussion The Coachella Valley is a designated non -attainment area for PM10, or air particulate matter smaller than 10 microns. The primary source of PM10 is dust -generating activities like vehicles traveling over paved or unpaved streets and through construction zones. Since the early 1990s, the Coachella Valley Association of Governments (CVAG) and its member agencies have cooperated on a Regional PM10 Street Sweeping Program. The street sweeping program is currently funded by three main sources: Grant funding from the South Coast Air Qualitv Management District (SCAQMD). The SCAQMD grant in the amount of $1,150,000 provides approximately $220,000 for each of five years for the street sweeping program. While the first year of funding was guaranteed, the remaining four years are pending a study of the street sweeping program's efficiency and effectiveness, which is also funded by the grant. The grant was initially awarded to make up for a funding shortfall after funding from SCAQMD's Mobile Air Source Pollution Reduction Review (MSRC) Committee ended in 2018. 2. Coachella Vallev Air Quality Enhancement Fund managed by Riverside County, also known as Colmac funds. Since July 2010, the County has set aside $150,000 each year for the regional street sweeping program. The current term ran through FY19/20, and CVAG is working with the County to request an additional five-year extension. August 27, 2020 - Staff Report AB 2766 Memorandum of Understanding (MOU) Amendment Five Page 2of2 3. Reallocation of a portion of AB 2766 funds dispersed to individual iurisdictions based on vehicle license plate renewals. AB 2766 funding sent to cities and counties by the SCAQMD is generated by a surcharge on annual DMV fees and must be used to reduce air pollution generated by motor vehicles. In previous years when funding from other sources tended to fluctuate, AB 2766 contributions from CVAG member jurisdictions also ranged from 33% to 100%. In 2016, the fourth amendment to the MOU for this reallocation requested that 75% of AB 2766 funds be directed toward the regional street sweeping program. The term of the fourth amendment expired on June 30, 2020. With this fifth amendment, CVAG requests that the jurisdictional contribution level remain at 75% for the next four years, through June 30, 2024. One hundred percent of all funding goes toward the street sweeping program, currently operated by CVAG under contract with M&M Sweeping, Inc. from Thousand Palms. Amendment Five to the MOU was also reviewed and supported by the CVAG Energy & Environment Committee on May 14, 2020, and approved by the CVAG Executive Committee on June 8, 2020. Identical MOU Amendments are being circulated to all participating member agencies for approval by their respective governing bodies. Fiscal Analvsis Approval of amendment five to the MOU will not negatively impact the General Fund. The City received $68,444 in AB 2766 funds in FY 18/19 and $50,851 for the first three quarters of FY 19/20. Payments to CVAG at the 75% allocation for the street sweeping program were $51,333 in FY 18/19 and $38,138 for the first three quarters of FY 19/20. Based on the estimated revenue of approximately $64,000 with a 75% allocation (or $48,000) to CVAG, there will remain a balance of approximately $16,000 annually to use for other designated programs. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW Ryan Stendell Robert W. Director of Janet M. Moore Hargreaves Community Director of Finance City Attorney Development City Manager, Lauri Aylaian: ASSISTANT CITY MANAGER .Andy ,Firestine Andy Firestine Assistant City Manager APPLICANT: Coachella Valley Association of Governments (CVAG) Attention: Libby Carlson 73710 Fred Waring Drive Palm Desert, California 92260 ATTACHMENTS: Amendment Five to AB 2766 Memorandum of Understanding AMENDMENT FIVE TO AB 2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND CVAG MEMBER JURISDICTIONS JULY 1, 2020 The AB 2766 Memorandum of Understanding (MOU) is made and entered into by and between the Coachella Valley Association of Governments (CVAG) and the CVAG member jurisdictions. The parties acknowledge that this Amendment shall be for the period starting July 1, 2020 and shall bind the parties hereunder for the entire term of the four-year amendment; through June 30, 2024. The AB 2766 MOU is hereby amended through this Amendment Five as follows: 1) At their June 1, 2020 meeting, the Executive Committee approved to maintain CVAG's AB 2766 formula at 75% to provide sustainable funding of the Regional PM10 Street Sweeping Program and related activities starting July 1, 2020 through June 30, 2024; 2) All other terms and conditions shall remain the same. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS By: Title: Jeff Grubbe, CVAG Chair Date: CITY (COUNTY) OF By: Title: Date: