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HomeMy WebLinkAbout14 PROJECT FUNDING FOR MOTOR VEHICLE REGISTRATION SUBVENTION FUNDS PROGRAM~ Agenda Item 14 Reviewed: AGENDA REPORT Finance Director MEETING DATE: FEBRUARY 1, 2011 TO: HONORABLE MAYOR AND COUNCIL MEMBERS VIA: DAVID C. BIGGS, CITY MANAGER FROM: ELIZABETH A. BINSACK, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: PROJECT FUNDING FOR THE MOTOR VEHICLE REGISTRATION SUBVENTION FUNDS (ASSEMBLY BILL 2766) PROGRAM SUMMARY Each year the City Council authorizes the use of the City's annual disbursement of Assembly Bill (AB) 2766 funds to offset costs for state mandated vehicle emission reduction programs implemented by the City of Tustin. This year the City Council is being requested to allocate/earmark the Fiscal Year (FY) 2010/2011 AB 2766 funds to fund a portion of the future maintenance cost for the rail station parking structure, which is currently under construction. RECOMMENDATION That the City Council authorize the use of City's AB 2766 disbursement of $81,600 to fund a portion of the future maintenance cost for the rail station parking structure. FISCAL IMPACT Since 1991, AB 2766 funds have been made available to local governments for use in offsetting state mandated vehicle emissions reduction programs. Tustin will receive approximately $81,600 for the 2010/2011 program year. The use of these funds reduces General Fund responsibility to fund state mandated emission reduction programs. The annual maintenance cost for the rail station parking structure is estimated to be between $300,000 and $500,000, and is not currently budgeted. The monies being allocated/earmarked as part of this item will be appropriated as part of the FY 2011 /12 budget. BACKGROUND/DISCUSSION On September 30, 1990, the State Legislature authorized the South Coast Air Quality Management District (SCAQMD) to impose an additional motor vehicle registration fee of two City Council Report Project Funding for AB 2766 Program February 1, 2011 Page 2 dollars ($2) per vehicle to finance the implementation of transportation measures embodied in the Air Quality Management Plan (AQMP) and provisions of the California Clean Air Act. Commencing in Fiscal Year 1991-1992, subvention disbursements were made available to cities and agencies. Forty percent of the funds collected from the Department of Motor Vehicle registration fees are returned to local governments for local vehicle emission reduction programs. AB 2766 turn-back funds must be used solely to reduce pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies necessary for the implementation of state and regional clean air goals. PROGRAM AND BUDGET INFORMATION In past years, the City of Tustin has used AB 2766 funds to offset the costs associated with the following air emission reduction programs: FY 1991-92 Project Vehicle conversion to propane FY 1992-93 Project No programs funded FY 1993-94 Projects Commuter Rail Station • Partial funding of Air Quality Element of the General Plan • Personnel costs for administration FY 1994-95 Projects Commuter Rail Station • Personnel costs for administration • Training/Save Our Air Rideshare (SOAR) Program incentives FY 1995-96 Projects Commuter Rail Station • Personnel costs for administration • Training/SOAR Program incentives FY 1996-97 Projects FY 1997-98 Projects • Commuter Rail Station • SOAR Program Costs • SOAR Compensation Pay • Computer Software • Commuter Rail Station • SOAR Compensation Pay FY 1998-99 Projects Commuter Rail Station City Council Report Project Funding for AB 2766 Program February 1, 2011 Page 3 • SOAR Compensation Pay FY 1999-00 Projects Commuter Rail Station • Air Quality Technical Assistance FY 2000-01 Projects Commuter Rail Station • Air Quality Technical Assistance FY 2001-02 Project Commuter Rail Station FY 2002-03 Project Commuter Rail Station FY 2003-04 Project Commuter Rail Station FY 2004-05 Projects Pedestrian Enhancement Project (Red Hill) Alternative Fuel Street Sweepers Commuter Rail Station FY 2005-06 Projects Pedestrian Enhancement Project (Red Hill) Pedestrian Enhancement Project (First St) FY 2006-07 Project Traffic Signalization Project (Park Avenue) FY 2007-08 Project Traffic Signalization Project (Warner Avenue) FY 2008-09 Project Alternative Fuel Street Sweeper (portion - proposed to be combined with 09-10 allocation) FY 2009-10 Project Alternative Fuel Street Sweeper (portion - proposed to be combined with 08-09 allocation) PROPOSED FISCAL YEAR 2010-2011 PROGRAM ALLOCATION RAIL STATION PARKING STRUCTURE MAINTENANCE -The annual maintenance cost for the rail station parking structure is estimated to be between $300,000 and $500,000 per year. State law allows AB 2766 funds to be used to fund the maintenance of parking structures that facilitate the use of transit or ridesharing. Construction on the rail station parking structure commenced on November 1, 2010, and is anticipated to be completed by October 31, 2011. Staff recommends that a total of $90,000, including $81,600 in AB 2766 Fiscal Year 2010- 2011 turn-back funds, $1,000 in interest income received through investment of the turn-back City Council Report Project Funding for AB 2766 Program February 1, 2011 Page 4 funds, and $7,400 in carryover funds from Fiscal Year 2009-2010, be used to fund a portion of the future maintenance cost of the rail station parking structure starting in 2011/12. Approved for Forwarding By: Elizabeth A. Binsack Director of Community Development ~i,~A c J7% David C. Biggs, City Manager Attachment: AB 2766 Fund Program 1991-2010 a N ~ ~ ~ ~~~~~° ~ b ~ n ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Cr1 Q ~• Q. (/~ y A '17 ~. 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