HomeMy WebLinkAbout05 PROJECT FUNDING FOR THE ASSEMBLY BILL 2766DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164
AGENDA REPORT
S
MEETING DATE: JULY 20, 2021
TO: MATTHEW S. WEST, CITY MANAGER
5
Agenda Item DS
Reviewed:��
City Manager
Finance Director Ja
FROM: JUSTINA L. WILLKOM, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: PROJECT FUNDING FOR THE ASSEMBLY BILL 2766 (MOTOR
VEHICLE REGISTRATION SUBVENTION) FUNDING PROGRAM
SUMMARY:
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 projected AB 2766 disbursements for Fiscal Year (FY) 2020/2021 and FY
2021/2022 to fund the purchase of five (5) electric and/or hybrid vehicles and electric
vehicle charging infrastructure.
RECOMMENDATION:
That the City Council approve a supplemental appropriation in the amount of $199,875
and authorize the use of the City's projected AB 2766 disbursements for FY 2020/2021
and FY 2021/2022 to fund the purchase of five (5) electric and/or hybrid 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. The use of these funds
reduces General Fund responsibility to fund State mandated emission reduction programs.
It is estimated that the City will receive approximately $102,000 for the 2020/2021 program
year and another $102,000 in the 2021/2022 program year. The total cost of five (5)
electric and/or hybrid vehicles and five (5) electric vehicle charging stations is
approximately $199,875. Any remaining funds will be retained in the City's AB 2766 Fund
for future qualifying projects.
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
DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164
City Council Report — July 20, 2021
AB2766 Funding
Page 2
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 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.
In recent years, the City has allocated AB 2766 funds to offset the costs associated with
the following air emission reduction programs:
• FY 2019/20 and FY 2018/19 - Alternative Fuel Street Sweeper, Electric Vehicles,
and Electric Vehicle Charging Infrastructure (funds from two fiscal years combined
with interest income and $311,614 in reallocated funds from previous years)
PROPOSED PROGRAM AND FUNDING ALLOCATIONS:
Staff recommends that $199,875 in projected AB 2766 funds for FY 2020/2021 and FY
2021/2022 be used to fund the following:
• Five (5) new electric and/or hybrid vehicles to replace City pool cars. The
estimated cost is $31,000 for each vehicle, or a total cost of $158,000.
• Five (5) additional electric vehicle charging stations accessible to electric and/or
hybrid vehicles. The estimated cost for five (5) charging stations is approximately
$8,375 per station, or a total cost of $41,875.
The use of these funds for the proposed project will meet the goal and intent of carrying
out a local vehicle emission reduction program. Accordingly, staff recommends that the
City Council authorize this project by minute order.
DocuSigned by
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Scott Ree st n
Principal Planner
DocuSigned by:
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Justina 11 om
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Community Development Director