HomeMy WebLinkAbout06 PROJECT FUNDING FOR THE MOTOR VEHICLE REGISTRATION SUBVENTION FUNDS (ASSEMBLY BILL 2766) PROGRAM®
Agenda Item
6
AGE�I A �� �
Reviewed:
City Manager
Finance Director
MEETING DATE:
MARCH 20, 2020
TO:
MATTHEW S. WEST, 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) 2018/2019 and FY 2019/2020 AB 2766 disbursements and to
reallocate previous AB 2766 disbursements to fund the purchase of one (1) new alternative
fuel street sweeper, two (2) electric vehicles, and electric vehicle charging infrastructure. The
reallocated AB 2766 disbursements had been set aside to partly fund the installation and
construction of pedestrian and traffic calming enhancements and improvements in Old Town
Tustin, which may be funded through other sources.
RECOMMENDATION
That the City Council authorize $215,376, including $106,805 in AB 2766 FY 2018/2019 turn -
back funds, $96,900 in projected AB 2766 FY 2019/2020 turn -back funds, and $11,671 in
interest income received through investment of the turn -back funds; and $311,614 in
reallocated AB 2766 turn -back funds, for a total of $526,990 to be used to fund the purchase
of one (1) new alternative fuel street sweeper, two (2) electric vehicles, and electric vehicle
charging infrastructure.
FISCAL IMPACT
Since 1991, AB 2766 funds have been made available to local governments for use in
offsetting state mandated vehicle emissions reduction programs. As of June 30, 2018, there
was a balance of $311,614 in the City's Air Quality Special Revenue (AB 2766) Fund. The
City received $106,805 for the 2018/2019 program year and $11,671 in interest income and
is estimated to receive approximately $96,900 for the 2019/2020 program year. The use of
these funds reduces General Fund responsibility to fund state mandated emission reduction
programs. The total cost of one (1) new alternative fuel street sweeper, two (2) electric
vehicles, and the electric vehicle charging infrastructure is approximately $512,000.
City Council Report
Project Funding for AB 2766 Program
March 17, 2020
Page 2
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
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 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 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 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 0 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
March 17, 2020
Page 3
FY 2015/16 Project
FY 2016/17 Project
FY 2017/18 Project •
Downtown Tustin Pedestrian and Traffic Calming
Downtown Tustin Pedestrian and Traffic Calming
Downtown Tustin Pedestrian and Traffic Calming
PROPOSED FISCAL YEAR 2018/2019 AND 2019/2020 PROGRAM ALLOCATIONS
• One (1) new alternative fuel, compressed natural gas (CNG) street sweeper for the
new arterials in Tustin Legacy. The estimated cost of the vehicle is $380,000.
• Two new electric vehicles to replace two (2) parking control unit vehicles. The
estimated cost is $31,000 for each vehicle, or a total cost of $62,000.
• The installation of eight (8) electric vehicle charging stations in the lower level of the
Civic Center parking structure. Two (2) of the stations would be for immediate use
and six (6) of the stations would be for future additions to the City's electric vehicle
fleet. The estimated cost of the charging stations and the electrical upgrades to
accommodate the charging stations is $70,000.
Staff recommends that $106,805 in AB 2766 FY 2018/2019 turn -back funds, $96,900 in
projected AB 2766 FY 2019/2020 turn -back funds, $11,671 in interest income, and $311,614
in reallocated AB 2766 turn -back funds be used to fund the purchase of one (1) new
alternative fuel street sweeper, two (2) electric vehicles, and electric vehicle charging
infrastructure.
tr "atm
Scott Reekstin
Principal Planner
Elizabeth A. Binsack
Director of Community Development