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2010-11 CVAG - MOU AB2766 PM10 Regional Street Sweeping ProgramAB2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND THE CITY OF LA QUINTA JULY 1, 2010 This Memorandum of Understanding (MOU) is made and entered into by and between the Coachella Valley Association of Governments (CVAG) and the City of La Quinta. The purpose of this MOU is to document the parties' understanding of and responsibilities for the allocation of the funds received by the City of La Quinta from revenues derived from the AB2766 Motor Vehicle Registration Fee Assessments program to CVAG for the Coachella Valley Regional PM10 Street Sweeping Program and other air quality programs. BACKGROUND On -road motor vehicles, including cars, trucks and buses make up the most significant courses of air pollution in the South Coast Air Basin. Vehicle emissions contribute to unhealthful levels of ozone, toxic air contaminants and particulate matter from diesel exhaust. To protect public health, Assembly Bill 2766 was signed into law in September 1990. The Bill authorizes a motor vehicle registration fee surcharge to fund the implementation of programs designed to reduce air pollution from motor vehicles and to implement the California Clean Air Act of 1988. These funds are collected by the Department of Motor Vehicles and subvened to the South Coast Air Quality Management District (AQMD) which then disburses the AB2766 revenues to local governments quarterly based on an established formula. PM10 air quality, unlike ozone -related pollution that is primarily transported to the Coachella Valley, is more directly related to local sources of pollution (e.g., paved road dust). The Regional PM10 Street Sweeping Program targets emission reductions from one of the largest PM10 source categories and is an important part of this region's comprehensive efforts to meet the requirements of the Coachella Valley's State Implementation Plan (CVSIP) for PM10. The Program is intended to mitigate blow sand and its resultant PM10 through routine street sweeping. Using alternative fuel sweepers and other alternative fuel equipment, the Regional Program sweeps the major arterials and medians in the Coachella Valley removing visible roadway dust from these roadway segments. Existing control measures, such as this Program, play a significant role in reducing PM10 in the Coachella Valley. With funding sources depleted, a sustainable funding source must be established to show the Valley's commitment. A discontinuation of this Program could have serious implications on the Coachella Valley's PM10 attainment effort and current Redesignation Request to the Environmental Protection Agency. At their April 26, 2010 meeting, the Executive Committee approved a modification of CVAG's AB2766 formula from 45% to 100% to provide sustainable funding of the Regional PM10 Street Sweeping Program for up to one year or upon receiving a commitment of matching funds, at which time the commitment would be re -calculated and reconsidered. AB2766 MOU APR AW. DOCX The funds accruing to CVAG from this MOU are designated for the operations of the Regional PM10 Street Sweeping Program. The funds will also be used for the regional administration of the Regional PM10 Street Sweeping Program and consultants relative to the Regional Program and other PM10 categories, preparation of grant applications, adherence to grant requirements such as quantifying emission benefits, etc. CURRENT PROCEDURE In 1991 each CVAG jurisdiction passed an ordinance adopting the AB2766 Program, setting up a separate account from which to disburse and subsequently monitor and audit these revenues. Revenues are distributed quarterly by the SCAQMD, based on each jurisdiction's proportionate number of registered motor vehicles. Effective July 1, 2010, and for each quarter thereafter, the City of LA QUINTA shall forward an amount equal to 100% of AB2766 revenues to CVAG. CVAG shall likewise deposit all monies received as a result of this MOU in a separate account. Local agencies will be notified of any changes in this procedure and this MOU will be amended accordingly to reflect such changes. CANCELLATION CLAUSE This MOU shall continue in effect until or unless the AB2766 Motor Vehicle Registration Fee Assessments program is discontinued, or the Coachella Valley Regional PM10 Street Sweeping Program or CVAG's administration of its air quality programs shall be discontinued or CVAG for whatever reason, is dissolved or otherwise disbanded, or according to CVAG Executive Committee action of April 26, 2010: The 100% AB2766 commitment is for up to one year or upon receiving a commitment of matching funds, at which time the commitment would be re -calculated and reconsidered; whichever shall occur sooner. EXHIBIT A: Increase in current formula to jurisdictions COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS Title: Chairman AB2766 MOU APR .AW.000% COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS PM10 AIR QUALITY PROGRAM AB 2766 Funds Received from Member Jurisdictions Vehicle Registration Revenue Fiscal Year 7/1/08 - 6/30/09 ACCOUNTING TABLE - EXHIBIT A Following CVAG Executive Committee Action on April 26, 2010 Agenda Item 10A - Regional PM10 Street Sweeping Program Jurisdictions P ttcse.: 45% 100% Cathedral City W, - .7 $27,354.98 $60,788.84 Coachella 6''. $21,134.61 $46,965.79 Desert Hot S rin s 1I I! m $13,111.32 $29,136.26 Indian Wells a';i" : & . 1 $2,570.94 $5,713.21 La Quinta . '°° 78 $22,401.991 $49,782.19 Palm Desert $26,541.13 $58,980.28 Palm Springs 3 ,i# $24,629.31 $54,731.81 Rancho Mirage 4 $8,856.48 $19,681.06 River. Co. Unincor .' $_,:......:.,p..� $33,878.20 $75,284.88 TOTALS Za $180,478.95 $401,064.32 'Population Adjustment Formula For Riverside County: A/B x 45% x C = D A = Population Coachella Valley Unincorporated = 84,478 (County Projected for 2010) B = Population Riverside County Unincorporated = 617,241 (County Projected for 2010) C = Revenues (AB2766) Riverside County = $550,000 (County Estimated for 2010) D = Revenues (AB2766) Coachella Valley = $33,874 (County Estimated for 2010) EXHIBIT A FILENAME: FWUMINUoa,nal,e[otr+e Commil{ee15U11 RepoaaT?01 W51AM a-W927E5 200E-09 AcMg Table MhoN lnNo RT a ee RUN E. 6N010