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HomeMy WebLinkAboutAB2766 MOU Amendment 4 - PM10 Street Sweeping PgrmREQUEST: SUBMITTED BY: DATE: CONTENT: Recommendation: By Minute Motion: CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT Approve Amendment Four to AB2766 Memorandum of Understanding (MOU) between CVAG and Member Jurisdictions for the Purpose of the Regional PM10 Street Sweeping Program and Related Activities Frankie Riddle, Director of Special Programs June 30, 2016 Amendment Four to AB2766 Memorandum of Understanding (MOU) 1. Approve Amendment Four to AB2766 Memorandum of Understanding (MOU) between CVAG and Member Jurisdictions for the purpose of the Regional PM10 Street Sweeping Program and related activities commencing July 1, 2016 through June 30, 2020; and 2. Authorize the City Manager to execute Amendment Four to the AB276 Memorandum of Understanding (MOU). Strategic Plan Obiective: N/A Discussion: Per the Coachella Valley Association of Governments (CVAG), there are three primary sources of funding for the regional street sweeping program: Mobile Source Air Pollution Reduction Review Committee (MSRC) grant funding, Colmac funding associated with mitigating air pollution impacts from a power plant, and AB2766 funds that are provided to cities/county from South Coast Air Quality Management District (AQMD) as a result of a $4 per vehicle surcharge on annual registration fees that must be used to reduce air pollution from motor vehicles. In previous years, as CVAG's sources of funding (MSRC and Colmac) either increase/decrease or program costs increase/decrease, the percentage of AB2766 funds from the cities/county to make up the shortfall has also been adjusted. The cities current share of AB2766 funding is 60%; however, CVAG is recommending that the cities portion increase from 60% to 75% and that the MOU time period increase from two years to four years (2020). The CVAG Energy and Environment, Technical Advisory, and Executive Committees have reviewed and approved this recommendation. STAFF REPORT AB2766 MEMORANDUM OF UNDERSTANDING (MOU) AMENDMENT PAGE 2 This recommendation is based on changes to MSRC funding. MSRC's annual Local Government Match Program (LGMP) has offered a separate category to support the Coachella Valley's Regional PM10 Street Sweeping Program. The category initially established a targeted funding level of $250,000 to be awarded on a dollar for dollar basis annually. Beginning in FY 2014/15, this amount was reduced from $250,000 to $125,000 annually and appears to be the case for FY 2016/17, which may continue in future years. There are no expected changes in Colmac funding, which is set by the County of Riverside at $150,000 through 2019/2020. Additionally, program costs are not expected to change; however, with the revenue reduction, an increase in cities' share is required in order to maintain the Regional Street Sweeping Program at its current standard. Fiscal Analysis: Increasing the City's AB2766 Funding share to 75% will not negatively impact the General Fund; however, it will reduce the amount of funding for City project(s) that may be considered in the future. The City received $62,553.11 in AB2766 funds in FY 14/15 and $47,244.09 for the first three quarters of FY 15/16. Payments to CVAG were $37,531.34 (FY 14/15) and $28,346 (FY 15/16 first three quarters) at the 60% allocation. Based on the estimated revenue of approximately $62,000 with a 75% allocation (or $46,500) to CVAG, there will remain a balance of approximately $15,500 yearly. Submitted By: Frankie Ri64te Director of Special Programs Reviewed: jan-afMoore Director of Finance Rudy Acosta Assistant City Manager Approved: us in McCarthy Inte im City Manager AMENDMENTFOUR TO AB2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND CVAG MEMBER JURISDICTIONS JULY 1, 2016 The AB2766 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, 2016 and shall bind the parties hereunder for the entire term of the four-year amendment; through June 30, 2020. The AB2766 MOU is hereby amended through this Amendment Four as follows: 1) At their June 27, 2016 meeting, the Executive Committee approved to increase CVAG's AB2766 formula to 75% to provide sustainable funding of the Regional PM10 Street Sweeping Program and related activities starting July 1, 2016 through June 30, 2020; 2) All other terms and conditions shall remain the same. COACHELLA VALLEY A SOCIA ION O�GOVV �NMENTS Title: Stanley E. Henry, CVAG Chair Date: CITY (COUNTY) OF By: Title: Date: