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HomeMy WebLinkAbout2026-28 CVAG - MOU Amendment 7 AB2766 PM10 Regional Street Sweeping ProgramAMENDMENT SEVEN TO AB 2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND CVAG MEMBER JURISDICTIONS JULY 1, 2026 The AB 2766 Memorandum of Understanding (MOU) is made and entered into by and between the Coachella Valley Association of Governments (CVAG) and the CVAG member jurisdictions. The parties acknowledge that this Amendment shall be for the period starting July 1, 2026, and shall bind the parties hereunder for the entire term of the two-year amendment; through June 30, 2028. The AB 2766 MOU is hereby amended through this Amendment Seven as follows: 1) At their December 1, 2025, meeting, the Executive Committee approved to increase CVAG's AB 2766 formula at 100% to provide sustainable funding of the Regional PM 10 Street Sweeping Program and related activities starting July 1, 2026, through June 30, 2028; 2) All other terms and conditions shall remain the same. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS By: Title Date: CITY By: Title V. Manuel Perez, CVAG Chair Linda Evans, Mayor Date: lq 20a(p CONSENT CALENDAR ITEM NO. 3 City of La Quinta CITY COUNCIL MEETIN( May 19, 2026 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 7 TO AB 2766 MEMORANDUM OF UNDERSTANDING WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS TO PROVIDE FUNDING FOR THE REGIONAL PM10 STREET SWEEPING PROGRAM RECOMMENDATION Approve Amendment No. 7 to AB 2766 Memorandum of Understanding with the Coachella Valley Association of Governments to provide funding for the Regional PM10 Street Sweeping Program, through June 30, 2028. EXECUTIVE SUMMARY • Since the early 1990s, the Coachella Valley Association of Governments (CVAG) and its member agencies have cooperated on a Regional PM10 Street Sweeping Program through a Memorandum of Understanding (MOU). The City entered into an MOU with CVAG in 2010 to provide funding for the street sweeping program. • The street sweeping program is currently funded by two main sources: (1) reallocation of a portion of Assembly Bill (AB) 2766 (Stats. 1990, Ch. 1705, § 1) funds dispersed to jurisdictions based on vehicle license plate registration renewals, and (2) Grant funding from the South Coast Air Quality Management District (SCAQMD). • The current MOU between the City, CVAG, and its member jurisdictions is set to expire on June 30, 2026. The proposed Amendment No. 7 (Attachment 1) increases the City's contribution of AB 2766 funds to 100% for the next 2 years, through June 30, 2028. FISCAL The proposed Amendment No. 7 to the MOU was approved by the CVAG Executive Committee on December 1, 2025 (Attachment 2), to increase the City's contribution of AB 2766 funds to 100% for a 2-year period, through June 30, 2028, to cover the cost of additional sweeping of the CV Link and the loss of funding from the Coachella Valley Air Quality Enhancement Fund managed by Riverside County (Colmac Air Quality Enhancement Funds). 25 BACKGROUND/ANALYSIS Since the early 1990s, CVAG and its member agencies have cooperated on the Regional PM10 Street Sweeping Program. The program is the best available control measure to reduce PM10 (particulate matter of less than 10 microns in size) by removing sand and entrained dust from regional streets in the Coachella Valley. The goal of the program is to improve air quality and public health by decreasing fugitive PM10 emissions attributed to construction and entrained roadway dust and sand pulverized by vehicles and then suspended into the air. The City entered into an MOU with CVAG and its member agencies in 2010 to provide funding for the program. The street sweeping program is currently funded by the reallocation of a portion of AB 2766 funds dispersed to individual jurisdictions based on vehicle license plate renewals and grant funding from SCAQMD. The AB 2766 Vehicle Subvention funds dispersed to the City by SCAQMD are generated by a surcharge on annual DMV fees and must be used to reduce air pollution generated by motor vehicles. In previous years when funding from other sources fluctuated, AB 2766 contributions from the City ranged from 33% to 100%. Since June 2020, the jurisdictional contribution level remained at 75%, however, with the ending of the Colmac Air Quality Enhancement Funds agreement in June 2025, due to the closing of the Colmac Energy biomass plant located in Mecca, and the additional sweeping of CV Link, the proposed Amendment No. 7 would increase the City's contribution of AB 2766 funds to 100% for the next two years, through June 30, 2028. The goal is to ensure the program remains fully funded and that service levels are maintained valley -wide through a simplified, collaborative funding structure. CVAG is circulating identical MOU Amendments to all participating member agencies for approval by their respective governing bodies. ALTERNATIVES Council may elect not to approve Amendment No. 7; however, staff does not recommend this alternative as the MOU allows the City to maintain PM10 requirements. Prepared by: Oscar Mojica, Deputy City Clerk Approved by: Monika Radeva, City Clerk Attachments: 1. Amendment 7 to AB 2766 Memorandum of Understanding with CVAG 2. CVAG Staff Report dated December 1, 2025 26 ATTACHMENT 2 ITEM 13J Coachella Valley Association of Governments Executive Committee ! •� December 1, 2025 CVAG STAFF REPORT Subject: Contract Amendment for the Regional PM10 Street Sweeping Program Contact: Julie Mignogna, Transportation Program Manager (jmignogna(a�cvaq.orq) Recommendation: Authorize the Executive Director to: 1. Execute Amendment No. 1 to the services contract with Sweeping Corporation of America for regional street sweeping services, adding an additional $279,311 a year and extending through December 31, 2027; 2. Take the necessary steps to secure additional funding for the program, including funding from South Coast Air Quality Management District and the County of Riverside 3. Execute Amendment No. 7 to the AB 2766 Vehicle Registration Revenue Memorandum of Understanding with each jurisdiction, increasing the funding contribution from 75 to 100 percent and extending the term through June 30, 2028 Transportation Committee: Concurred (Meeting of November 3) Energy & Sustainability Committee: Concurred (Meeting of November13) Background: The Regional PM10 Street Sweeping program is an air quality program focused on addressing PM10 (particulate matter less than 10 microns in size) by removing sand and entrained dust from regional streets in the Coachella Valley. Because the Coachella Valley is in non -attainment for PM10, the program is part of the Coachella Valley's State Implementation Plan (SIP) and is a best available control measure. The goal of the program is to improve air quality and public health by decreasing fugitive PM10 emissions attributed to entrained roadway dust and sand that can pulverized by vehicles and then suspended into the air. In 2022, CVAG conducted a study of the regional street sweeping program as part of a South Coast Air Quality Management District (SCAQMD) grant agreement. The study was conducted to identify additional ways to make the program more impactful for the Coachella Valley. The study found the program to be effective in addressing PM10 emissions, and it provided several recommendations. These recommendations were included in the regional street sweeping contract that the Executive Committee authorized on December 25, 2022 with CleanStreet, now Sweeping Corporation of America (SCA). The contract was authorized to be three years in duration ending on December 31, 2025, with the option to renew for up to two additional years. Under the contract, SCA is responsible for sweeping on a bi-weekly basis 1,050 curb miles of regional arterials in the Coachella Valley. Of those, 977 miles are regular streets and 73 miles are special impact streets. Special impact streets, like Dinah Shore Drive, may be swept more often based on need, particularly during the Coachella Valley's windy season from February through May. The existing contract also included a provision for sweeping the CV Link once construction is completed, although the budget for that work was not included in the 2022 contract because CV Link was still under construction. The chart below shows the annual linear curb miles to be swept for each type as part of the proposed amendment. Item Description Unit Estimated Annual Quantity Regular Street Sweeping Linear Curb Miles 23,878 Special Impact Streets Linear Curb Miles 1,898 Palm Springs Hwy 111 Linear Curb Miles 1,524 CV Link Linear Miles 1,600 CVAG staff have worked with member jurisdictions' staff and SCA to focus on the program and enhance its performance over the past 15 months. As a result, member agencies are more engaged and have access to sweeping performance data. SCA has responded by increasing the service levels, particularly following Tropical Storm Hilary in 2023 and the ensuing months of increased blowsand and fugitive dust experienced by the Coachella Valley. This focus has increased monthly sweeping costs due to special impact roadways throughout the valley being swept more frequently in response to the additional blowsand and fugitive dust. Approximately $130,530 of the proposed cost increase can be attributed to service level increases. To continue with this level of service, CVAG staff, based on feedback from the public works staff at the municipal agencies, is recommending Amendment No. 1 to the SCA contract. The amendment will extend the contract term to December 31, 2027 and increase the annual contract amount to continue the more frequent sweeping of special impact streets. The recommended amendment also adds additional budget to account for a five percent increase of fuel and waste disposal process costs and to incorporate the cost of sweeping the CV Link bi-weekly. The five percent increase accounts for approximately $66,380 of the recommended contract increase. The recommended authorization would also authorize the Executive Director and/or Legal Counsel to make clarifying changes prior to execution. Fiscal Analysis: The proposed SCA contract Amendment No. 1 will add $279,311 a year, increasing the total annual cost of the program from $763,573.96 to $1,042,884.96. The total not to exceed contract amount will increase to $4,655,802.80. There are sufficient accumulated AB 2766 funds available for the additional program costs for Fiscal Year 2025-26. The estimated $82,400 annual cost for the CV Link sweeping services will be funded by regional transportation funds. In addition to recommending an amendment to the SCA contract, CVAG staff is recommending two authorizations related to the program's funding. CVAG and municipal staff are also reviewing alternatives to maintain the regional street sweeping program at the current service levels in the future. The primary source of funding for the regional street sweeping program comes from AB 2766 Vehicle Subvention funds the member agencies receive each year. Member agencies direct 75 percent of their AB 2766 funds to the regional street sweeping program, which amounts to approximately $450,000 per year. Additional funding sources for the program include a SCAQMD grant that funds $220,000 per year through June 2026, and $27,000 per year from the City of Palm Springs for sweeping 27 curb miles of Highway 111 in the city. 29 The street sweeping program had included in prior years funding from the Colmac Air Quality Enhancement Funds through the County of Riverside at $150,000 per year. The Colmac funding agreement ended in June 2025 due to the closing of the Coman Energy biomass plant located in Mecca; however, some funding remains available for the program. CVAG staff is currently coordinating with SCAQMD and the County of Riverside to secure continued SCAQMD and Colmac funding. Should a funding source be secured, staff is requesting authorization for the Executive Director to enter into any necessary agreements with SCAQMD, the County of Riverside or another project partner. CVAG staff is also recommending that the Executive Director be authorized to enter into amendments to the MOUs with local jurisdictions. CVAG is also coordinating with the cities quarterly as part of the Regional Street Sweeping Program Ad Hoc Committee. Over the years, the AB 2766 funding contribution from the jurisdictions has varied based on the regional street sweeping program's funding needs. The contribution percentage has ranged from 60 to 100%. Due to the end of Colmac funding and SCAQMD grant term expiring in June 2026, an adjustment to the jurisdiction's AB2766 contribution is needed. With this authorization, CVAG staff will coordinate with member agency staff to amend the existing AB 2766 MOUs to allocate 100 percent of each jurisdiction's AB 2766 contribution to the regional street sweeping program. The goal is to ensure the program remains fully funded and that service levels are maintained valleywide through a simplified, collaborative funding structure. Staff recommends that the term of the MOUs also be extended for two additional years, through June 30, 2028, with the increase in AB2766 funding contributions becoming effective on July 1, 2026. Additional Funding Information Since Policy Committees' Review In the weeks since this item was presented to the Transportation Committee and the Energy & Sustainability Committee, staff has received positive funding news. SCAQMD is recommending a one-year extension of the existing grant funding for the Regional PM10 Street Sweeping Program, providing an additional $220,000 through June 30, 2027. While this supplemental funding will help mitigate the current program funding shortfall and extend the remaining AB 2766 fund balance through Fiscal Year 2026-27, it will not fully address the program's long-term structural deficit. Beginning in Fiscal Year 2027-28, the program is projected to operate at a deficit without additional revenue. Therefore, staff continues to recommend increasing the AB 2766 contribution from 75 percent to 100 percent to maintain service levels and ensure the program's financial stability. Should additional funding for the regional street sweeping program be secured, CVAG staff would reassess the need for this increased contribution from local jurisdictions. Attachment- 1. Amendment No. 1 to Services Agreement with Sweeping Corporation of America (SCA) 30