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HomeMy WebLinkAbout14 PROJECT FUNDING FOR THE ASSEMBLY BILL 2766 (MOTOR VEHICLE)DocuSign Envelope ID: E82E5848-CC4F-48C5-8636-73A2C882ED6C Agenda Item 14 Reviewed: AGENDA REPORT DS City Manager Finance Director Sa MEETING DATE: AUGUST 16, 2022 TO: MATTHEW S. WEST, CITY MANAGER 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) 2022-23 and FY 2023- 24 to fund the Red Hill Avenue Pedestrian Enhanced Crosswalk Project. RECOMMENDATION: That the City Council authorize the use of the City's projected AB 2766 disbursements for FY 2022-23 and FY 2023-24 to fund the Red Hill Avenue Pedestrian Enhanced Crosswalk Project by minute order. 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 $200,000 across both the 2022-23 and 2023-24 Fiscal Years. The total cost for the Red Hill Avenue Pedestrian Enhanced Crosswalk is approximately $175,000. 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 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. DocuSign Envelope ID: E82E5848-CC4F-48C5-8836-73A2C882ED6C City Council Report — August 16, 2022 AB2766 Funding Page 2 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 1991-92, 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 2018/19 and FY 2019/20 and - 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) • FY 2020/21 and FY 2021/22 - Purchase of five (5) electric and/or hybrid vehicles and electric vehicle charging infrastructure. PROPOSED PROGRAM AND FUNDING ALLOCATIONS: Staff recommends that $175,000 in projected AB 2766 funds for FY 2022-23 and FY 2023-24 be used to fund the following: • Red Hill Avenue Pedestrian Enhanced Crosswalk Project, to include replacement of the current in -roadway pedestrian lighting system with overhead pedestrian signals on Red Hill Avenue at Olwyn Drive. The use of these funds for the proposed project will meet the goal and intent of carrying out a local vehicle emission reduction program. The project is eligible under Funding Eligibility Category 5-c: Alternative Mode Signalization. As such, staff recommends that the City Council authorize this project by minute order. DocuSigned by: E w,a tk 61V, 2ESAE588E82047E... Irma Huitron Assist. Dir. of Community Development 5DocuSigned by: L'Lsfi ,a �' UJlUL&M ED45DA2623B54A5... Justina L. Willkom Community Development Director