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HomeMy WebLinkAbout09 PROJECT FUNDING FOR THE MOTOR VEHICLE REGISTRATION SUBVENTION FUNDS (ASSEMBLY BILL 2766) PROGRAMAgenda Item 9 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: JANUARY 16, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: ELIZABETH A. BINSACK, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: PROJECT FUNDING FOR THE MOTOR VEHICLE REGISTRATION SUBVENTION FUNDS (ASSEMBLY BILL 2766) PROGRAM SUMMARY Every two (2) years the City Council authorizes the use of the City's 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 the Fiscal Year (FY) 2016/2017 and FY 2017/2018 AB 2766 disbursements to partly fund the installation and construction of pedestrian and traffic calming enhancements and improvements in Old Town Tustin, which will be identified in the Tustin Downtown Commercial Core Plan (the "Plan"). RECOMMENDATION That the City Council authorize a total of $203,176, including $105,629 in AB 2766 FY 2016/2017 turn -back funds, $96,900 in projected AB 2766 FY 2017/2018 turn -back funds, and $647 in interest income received through investment of the turn -back funds, to be used/earmarked to partly fund the installation and construction of future pedestrian, bicycle, and traffic calming enhancements and improvements in Downtown Tustin, which will be identified in the Plan. FISCAL IMPACT Since 1991, AB 2766 funds have been made available to local governments for use in offsetting state mandated vehicle emissions reduction programs. The City received $105,629 for the 2016/2017 program year and $647 in interest income and is estimated to receive approximately $96,900 for the 2017/2018 program year. The use of these funds reduces General Fund responsibility to fund state mandated emission reduction programs. The total cost of the future installation and construction of pedestrian and traffic calming enhancements and improvements in Downtown Tustin has not been determined. CORRELATION TO THE STRATEGIC PLAN The Project Funding for the Motor Vehicle Registration Subvention Funds Program falls under Goal C of the Strategic Plan pertaining to financial strength and under Goal D pertaining to working collaboratively with agencies within and outside the City on issues of City Council Report Project Funding for AB 2766 Program January 16, 2018 Page 2 mutual interest and concern in that the Program provides funding for state mandated emission reduction projects and programs. 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 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 FY 1991/1992, subvention disbursements were made available to cities and agencies. Forty (40) 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 tum -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 the past ten (10) years, the City of Tustin has used or earmarked AB 2766 funds to offset the costs associated with the following air emission reduction programs: FY 2006/07 Project 0 Traffic Signalization Project (Park Avenue) FY 2007/08 Project 0 Traffic Signalization Project (Warner Avenue) FY 2008/09 Project Alternative Fuel Street Sweeper (portion — combined with 09-10 allocation) FY 2009/10 Project Alternative Fuel Street Sweeper (portion — combined with 08-09 allocation) FY 2010/11 Project Rail Station Parking Structure Maintenance FY 2011/12 Project Rail Station Parking Structure Maintenance FY 2012/13 Projects Rail Station Parking Structure Maintenance Enderle Center Dr. — Vandenberg Ln. Intersection Newport Avenue Bicycle Trail Reconstruction Signal Coordination FY 2013/14 Project 0 Downtown Tustin Pedestrian and Traffic Calming FY 2014/15 Project 0 Downtown Tustin Pedestrian and Traffic Calming City Council Report Project Funding for AB 2766 Program January 16, 2018 Page 3 FY 2015/16 Project Downtown Tustin Pedestrian and Traffic Calming PROPOSED FISCAL YEAR 2016/2017 AND 2017/2018 PROGRAM ALLOCATIONS Downtown Tustin Pedestrian and Traffic Calming Improvements — The total cost of the installation and construction of pedestrian and traffic calming enhancements and improvements in Downtown Tustin is yet to be determined. This Project would improve pedestrian safety, encourage pedestrian activity, and calm traffic within the area covered by the Plan through projects such as enhanced pedestrian crossings, widened sidewalks, designated bicycle lanes, and center medians. Staff recommends that $105,629 in AB 2766 FY 2016/2017 turn -back funds, $96,900 in projected AB 2766 FY 2017/2018 turn -back funds, and $647 in interest income be allocated to the Downtown Tustin Pedestrian and Traffic Calming Improvements Project. These funds will augment the FY 2013/14, 2014/15, and 2015/16 AB 2766 funds that have been allocated to the Project. Scott Reekstin Elizabeth A. Binsack Principal Planner Director of Community Development