HomeMy WebLinkAboutORD FOR INTRO 2 06-03-91r IRDINANCE�FOR INTRODUCTION NO. 2
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ATE:
JUNE 3, 1991
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: ORDINANCE TO ESTABLISH THE AIR QUALITY IMPROVEMENT TRUST FUND
RECOMMENDATION
It is recommended that City Council have first reading by title
only and have introduction of Ordinance No. 1073 establishing an
Air Quality Improvement Trust Fund.
BACKGROUND
In March of 1989, the South Coast Air Quality Management District
(District) and the Southern California Association of Governments
(SLAG) adopted an Air Quality Management Plan designed to attain
the National Ambient Air Quality Standards. At the same time, the
California Legislature passed the California Clean Air Act (CCAA).
The Act requires all nonattainment air basins in the State to
develop new attainment plans to meet Federal and State air quality
standards by July 1, 1991. To provide funding to assist local
governments and the District in implementing air quality measures
to reduce air pollution from motor vehicles, AB 2766 was signed
into State law on September 30, 1990. The measure allows the
District to impose an additional fee of up to two dollars on motor
vehicle registration fees collected within the South Coast Air
Basin. Effective July 1, 1992, the District could increase this fee
up to four dollars. The bill also created a regional Mobile Air
Pollution Reduction Review Committee responsible for developing the
work program.
DISCUSSION
The legislation determined that the dispersement of additional
Department of Motor Vehicle (DMV) revenues would be based on the
following formula:
* Thirty percent (30%) to the District for programs to reduce
air pollution from motor vehicles and to carry out related
planning, monitoring, enforcement and technical studies as
authorized by the California Clean Air Act of 1988;
* Forty percent (40%) to cities and counties in the South Coast
Air Basin to be used to implement programs to reduce air
pollution from motor vehicles as authorized by the California
Clean Air Act of 1988; and
City Council Report
Air Quality Improvement Trust Fund Ordinance
June 3, 1991
Page 2
* Thirty percent (30%) to be deposited in an account for use by
the regional Mobile Source Air Pollution Reduction Review
Committee to fund the implementation or monitoring of programs
to reduce air pollution from motor vehicles as specified in
its adopted work program.
In order for cities to receive their allocated share of revenues,
each jurisdiction must adopt and transmit to the District an
ordinance affirming its support of and intent to use the motor
vehicle registration fees to reduce air pollution from motor
vehicles. The ordinance proposed for adoption by the Tustin City
Council is based upon a model provided by the District. It
requires the Finance Director or his or her designee to establish
an Air Quality Improvement Trust Fund into which all fee revenues
are deposited and from which expenditures are to be spent solely to
reduce air pollution from motor vehicles and for related planning,
monitoring, enforcement and technical studies necessary for the
implementation of the California Clean Air Act of 1988 in the City
of Tustin. For example, monies can be used for programs such as
growth management, traffic flow improvements, enhancing Regulation
XV, employer rideshare incentives, and transit improvements.
All programs and projects funded by vehicle registration fee
revenues will be subject to an audit conducted at least once every
two years .by an independent auditor selected by the District.
Funds from the Air Quality Improvement Trust Fund may be used to
pay the District for any such audit costs.
Adoption of the Air Quality Improvement Trust Fund Ordinance allows
the City of Tustin to receive an estimated $27,000 from motor
vehicle registration fees in 1991 and $55,000 in 1992. Estimates
for subsequent years have not yet been prepared.
The proposed Ordinance is exempt from the requirements of the
California Environmental Quality Act pursuant to Section 15308 and
no further environmental review is required. A public hearing
notice identifying the time, date, and location of the public
hearing for Ordinance No. 1073 was published May 23, 1991 in the
Tustin News. Notice of the hearing was posted at the Police
Department and City Hall on May 23, 1991.
CONCLUSION
The Community Development Department has analyzed the vehicle
subvention fee program and recommends that Ordinance No. 1073 be
introduced.
Scott Reekstin Christine Shinglet
Assistant Planner Assistant City Ma er
Attachment: 1) Ordinance No. 1073
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ORDINANCE NO. 1073
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF TUSTIN ADDING PART 4 TO
CHAPTER 2, ARTICLE 2 OF THE TUSTIN
CITY CODE TO ESTABLISH THE AIR
QUALITY IMPROVEMENT TRUST FUND.
The City Council of the City of Tustin does hereby
ordain as follows:
Section 1: That the City Council f inds and declares
that:
A. The City is committed to improving the public
health, safety and welfare, including air
quality.
B. Mobile sources are a major contributor to air
pollution in the South Coast Air Basin.
C. Air quality goals for the region established
by state law cannot be met without reducing
air pollution from mobile sources.
D. The South Coast Air Quality Management Plan
(AQMP) calls upon cities and counties to
reduce emissions from motor vehicles
consistent with the requirements of the
California Clean Air Act of 1988 by developing
and implementing mobile source air pollution
reduction -programs.
E. To the extent that such programs place demands
upon the City's funds, those programs should
be financed by shifting the responsibility for
financing from the general fund to the motor
vehicles creating the demand, to the greatest
extent possible.
F. Section 44223, added to the Health and Safety
Code by -action of the California Legislature
on September 30, 1990 (Chapter 90-1705),
authorizes the South Coast Air Quality
Management District (SCAQMD) to impose an
additional motor vehicle registration fee of
two dollars ($2.00), commencing on April 1,
1991, increasing to four dollars ($4.00),
commencing on April 1, 1992, to finance the
implementation of transportation measures
embodied in the AQMP and provisions of the
California Clean Air Act.
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Ordinance No. 1073
Page 2
G. Forty cents of every dollar collected under
Section 44223 of the Health and Safety Code
shall be distributed to cities and counties
located in the South Coast Air Quality
Management District that comply with Section
44243 of the code, based on the jurisdictions'
prorated share of population as defined by the
State Department of Finance.
H. The City of Tustin is located within the South
Coast Air Quality Management District and is
eligible to . receive a portion of revenues from
the motor vehicle registration fees upon
adoption of this ordinance.
I. The City Council of the City of Tustin, after
careful consideration, hereby finds and
declares that the imposition of the motor
vehicle registration fee by the SCAQMD to
finance mobile source air pollution reduction
programs is in the best interests of the
general welfare of the City and its residents.
Therefore, the city council deems it advisable
to adopt this article.
Section 2: That Chapter 2, Article 2 of the Tustin
City Code is hereby amended by adding Part 4, to read as
follows:
PART 4 AIR QUALITY IMPROVEMENT TRUST FUND
2240 INTENT
This ordinance is intended to support the South
Coast Air Quality Management District's imposition of the
vehicle registration fee and to bring the City of Tustin
into compliance with the requirements set forth in
section 44243 of the Health and Safety Code in order to
receive fee revenues for the purpose of implementing
programs to reduce air pollution from motor vehicles.
2241 DEFINITIONS
As applied in this article, the following words and
terms shall be defined as follows:
A. "City" shall mean the City of Tustin.
B. "Mobile source air pollution reduction
programs" shall mean any program or project
implemented by the City to reduce air
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Ordinance No. 1073
Page 3
pollution from motor vehicles pursuant to the
California Clean Air Act of 1988 or the plan
proposed pursuant to Article 5 (commencing
with Section 40460) of Chapter 5.5 of Part 3
of the California Health and Safety Code.
C. "Fee Administrator" shall mean the Finance
Director of the City or his or her designee.
2242 ADMINISTRATION OF VEHICLE REGISTRATION FEES
(A) Receipt of fee: Vehicle registration fees due
pursuant to this article disbursed by the South Coast Air
Quality Management District and remitted to the City
shall be accepted by the Fee Administrator.
(B) Transfer of funds: Upon receipt of vehicle
registration fees, the Fee Administrator shall be
responsible for placement of such funds into a separate
account as hereinafter specified.
(C) Establishment of Air Quality Improvement Trust
Fund: The Fee Administrator shall .establish a separate
interest-bearing trust fund account in a financial
institution authorized to receive deposits of City funds.
Interest earned by the account shall be credited to that
account and shall be used to finance mobile source air
pollution reduction programs.
(D) Audits: The City consents to audits, at least
once every two years; of all programs and projects funded
by vehicle registration fee revenues provided under
Section 44223 of the Health and Safety Code. The audit
shall be conducted by an independent auditor selected by
the South Coast Air Quality Management District in
conformance with the provisions of the Single Audit Act
of 1984 and the U.S. Office of Management and Budget
Circular A-128, Audits of State and Local Governments.
The said District may be paid for any audit costs
incurred by it from the funds within the Air Quality
Improvement Trust Fund.
(E) Use of Funds: Funds within the Air Quality
Improvement Trust Fund shall be used solely to reduce
pollution from motor vehicles and for related planning,
monitoring, enforcement and technical studies necessary
for the implementation of the California Clean Air Act of
1988 within the City of Tustin.
Section 3: The provisions of this ordinance shall be
liberally construed to effectively carry out its
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Ordinance No. 1073
Page 4
purposes, which are hereby found and declared to be in
furtherance of the public health, safety, welfare and
convenience.
Section 4: If any section, subsection, sentence,
clause, phrase or portion of this ordinance is for any
reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such
decision shall not affect the validity of the remaining
portions of this ordinance. The City Council of the City
of Tustin hereby declares that it would have adopted this
ordinance and each section, subsection, sentence, clause,
phrase or portion thereof irrespective of the fact that
any one or more sections, subsections, sentences,
clauses, phrases, or portions be declared invalid or
unconstitutional.
PASSED AND ADOPTED at a regular -meeting of the
Tustin City Council held on the 17th day of June, 1991.
CHARLES E. PUCKETT
Mayor
MARY WYNN
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1073
MARY E. WYNN, City Clerk and ex -officio Clerk of the City
Council of the City of Tustin, California, does hereby
certify that the whole number of other members of the
City Council of the City of Tustin is five; that the
above and foregoing Ordinance was duly and regularly
introduced and read at a regular meeting of the City
Council on the 3rd day of June, 1991, and was given its
second reading, passed and adopted at a regular meeting
of the City Council held on the 17th day of June, 1991,
by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
Mary E. Wynn, City Clerk