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2020-24 CVAG - MOU Amendment 5 AB2766 PM10 Regional Street Sweeping ProgramAMENDMENT FIVE TO AB 2766 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND CVAG MEMBER JURISDICTIONS JULY 1, 2020 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, 2020 and shall bind the parties hereunder for the entire term of the four-year amendment; through June 30, 2024. The AB 2766 MOU is hereby amended through this Amendment Five as follows: 1) At their June 1, 2020 meeting , the Executive Committee approved to maintain CVAG's AB 2766 formula at 75% to provide sustainable funding of the Regional PM10 Street Sweeping Program and related activities starting July 1, 2020 through June 30 , 2024 ; 2) All other terms and conditions shall remain the same. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS By : _____________________ _ Title : Jeff Grubbe, CVAG Chair Date :----------- CITY (C~ Coachella By : ~(\-: ~ Steven A . Hernandez Title : Mayor Date : July 22 , 2020 AMENDMENT FIVE TO AB 2766MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND CVAG MEMijER JURISDICTIONS JULY 1, 2020 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, 2020 and shall bind the parties hereunder for the entire term of the four-year amendment; through June 30, 2024. The AB 2766 MOU is hereby amended through this Amendment Five as follows: 1) At their June 1, 2020 meeting, the Executive Committee approved to maintain CVAG's AB 2766 formula at 75% to provide sustainable funding of the Regional PM 10 Street Sweeping Program and related activities starting July 1, 2020 through June 30, 2024; , 2) All other terms and conditions shall remain the same. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS By:_~---,---------------- Title: Jeff Grubbe, CVAG Chair )· Date: __________ _ . -- ~✓ • / • , Attest:.· ITEM 5G Staff Report Subject: Amendment Five to AB 2766 Memorandum of Understanding Contact: Katie Barrows, Director of Environmental Resources (kbarrows@cvag.org) Recommendation: Approve Amendment Five to the AB 2766 Memorandum of Understanding between CVAG and the Member Jurisdictions to maintain the contributions from the cities and the County at 75% to provide sustainable funding for the Regional PM10 Street Sweeping Program, through June 30, 2024. Energy & Environmental Resources Committee: CONCURS (Meeting of May14th) Background: Since the early 1990s, CVAG and member agencies have cooperated on a Regional PM10 Street Sweeping Program. Member agencies have participated in the AB 2766 Memorandum of Understanding (MOU) which provides for the contribution of a share of their AB 2766 funds to CVAG; these funds are used to support the Regional PM10 Street Sweeping Program. In 2016, Amendment Four to the MOU was approved by the CVAG Executive Committee and all member agencies who participate in the street sweeping program. The MOU expires as of June 30, 2020 and the request is for the Executive Committee to approve a new amendment that will continue AB 2766 contributions at 75% for the next four years, to June 30, 2024. Street sweeping is one of the primary air quality control measures to reduce PM-10 (particulate matter of less than 10 microns). PM-10 comes from dust-generating activities, including vehicles traveling over paved or unpaved streets and construction. Currently M&M Sweeping, Inc. in Thousand Palms is under contract to conduct the regional street sweeping program for CVAG. The program also has the additional benefit of keeping all the major streets in the Coachella Valley clean and doing so at a low per mile cost due to economies of scale. The street sweeping program has been funded by several sources. The AB 2766 funds are allocated to CVAG’s individual jurisdictions as a percentage of vehicle license plate renewals, and then redirected to the Regional PM10 Street Sweeping Program. One of the former funding sources was the South Coast Air Quality Management District’s Mobile Source Air Pollution Reduction Review Committee (MSRC). Beginning in 2015, the MSRC grants CVAG received were reduced from $250,000/year to $125,000/year to $0/year in 2018. As a result of the funding shortfall, staff sought additional funding sources to fully operate the street sweeping program. In January 2019 the South Coast Air Quality Management District (SCAQMD) approved a grant to CVAG of $1,150,000 for five years of the street sweeping program. The first year of funding is certain with the remaining four years pending completion of a study of the efficiency and effectiveness of the current program. This funding is anticipated to help make up the shortfall for the next five years. The other funding stream is the Coachella Valley Air Quality Enhancement Fund managed by Riverside County, referred to as Colmac funds. In July 2010, the County formally agreed to a set- aside of $150,000 in Colmac funds per year for five years to assist CVAG and the member jurisdictions with the operation of the Regional Program. The current Colmac funding runs through the 2019/20 fiscal year. CVAG will be requesting another five years of funding from the County. Amendment Four to the current MOU expires June 30, 2020. Combined with the other funding streams, AB 2766 funds will offset the costs of the Regional PM10 Street Sweeping Program. Staff recommends that Amendment Five to the MOU to maintain the 75% commitment of AB 2766 funds from member jurisdictions be continued for the next four fiscal years through June 30, 2024. Pending approval by the CVAG Executive Committee, Amendment Five will be circulated to all participating member agencies for approval by their respective governing body. Fiscal Analysis: Adequate funding for the Regional PM10 Street Sweeping Program is dependent on all three funding streams, AB 2766, South Coast AQMD, and Colmac. Contract Finalization: Minor changes/revisions may be made for clarification purposes by CVAG Executive Director and/or legal counsel prior to execution. Attachment: 1. Amendment Five to AB 2766 Memorandum of Understanding City of La Quinta AGENDA TITLE: APPROVE AMENDMENT NO. 5 TO AB 2766 MEMORANDUM OF UNDERSTANDING BETWEEN COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND MEMBER JURISDICTIONS TO PROVIDE SUSTAINABLE FUNDING OF THE REGIONAL PM10 STREET SWEEPING PROGRAM RECOMMENDATION Approve Amendment No. 5 to AB 2766 Memorandum of Understanding between the Coachella Valley Association of Governments and Member Jurisdictions to maintain contributions from the cities and the County at 75% to provide sustainable funding of the Regional PM10 Street Sweeping Program, through June 30, 2024; and authorize the City Manager to execute the amendment. 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 street sweeping program is currently funded by three main sources: 1.Reallocation of a portion of Assembly Bill (AB) 2766 funds dispersed to individual jurisdictions based on vehicle license plate renewals; 2. Grant funding from the South Coast Air Quality Management District (SCAQMD); and 3. The Coachella Valley Air Quality Enhancement Fund managed by Riverside County, also known as Colmac funds. •Amendment No. 4 to the MOU between CVAG and member jurisdictions expired June 30, 2020. •Amendment No. 5 maintains same jurisdictional contribution at 75% for the next four years, through June 30, 2024. FISCAL IMPACT Adequate funding for the Regional PM-10 Street Sweeping Program is dependent upon all three funding streams – AB 2766, SCAQMD grant, and the Colmac allocation. CONSENT CALENDAR ITEM NO. 6 77 CITY COUNCIL MEETING: August 4, 2020 STAFF REPORT BACKGROUND/ANALYSIS Coachella Valley and the Salton Sea Air Basin are designated non-attainment areas for PM10, or air particulate matter less than 10 microns. The primary source of PM10 is dust-generating activities like vehicles traveling over paved or unpaved streets and through construction zones. Since the early 1990s, CVAG and its member agencies have cooperated on a Regional PM10 Street Sweeping Program – one of the most significant air quality control measures that can be taken to reduce PM10 throughout our region. This program has the added benefit of keeping all major streets in the Coachella Valley clean at a low per-mile cost due to economies of scale. The street sweeping program is currently funded by three main sources: (1) Reallocation of a portion of AB 2766 funds dispersed to individual jurisdictions based on vehicle license plate renewals; (2) Grant funding from the SCAQMD; and (3) Colmac funds. The SCAQMD grant, in the amount of $1,150,000, provides approximately $220,000 for each of five years for the street sweeping program. While the first year of funding was guaranteed, the remaining four years are pending a study of the street sweeping program’s efficiency and effectiveness, also funded by the grant. The grant was initially awarded to make up for a funding shortfall after funding from SCAQMD’s Mobile Air Source Pollution Reduction Review Committee ended in 2018. The Colmac funds received by the County are associated with mitigating air pollution impacts from a power plant. Since July 2010, the County has set aside $150,000 each year for the regional street sweeping program. The current term runs through FY19/20, and CVAG is working with the County to request an additional five-year extension. The remaining AB 2766 funding sent to cities and counties by the SCAQMD is 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 tended to fluctuate, AB 2766 contributions from CVAG member jurisdictions also ranged from 33% to 100%. In 2016, the fourth amendment to the MOU for this reallocation requested that 75% of AB 2766 funds be directed toward the regional street sweeping program. The term of the fourth amendment expired on June 30, 2020. With this fifth amendment, CVAG requests that the jurisdictional contribution level remains at 75% for the next four years, through June 30, 2024. One hundred percent of all funding goes toward the street sweeping program, currently operated by CVAG under contract with M&M Sweeping, Inc. from Thousand Palms. Amendment Five was approved by the CVAG Executive Committee on June 8, 2020 This recommendation was also reviewed and supported by the CVAG Energy & Environment Committee on May 14, 2020 Identical MOU Amendments are being circulated to all participating member agencies for approval by their respective governing bodies. 78 ALTERNATIVES Staff does not recommend an alternative, as the MOU allows the City to maintain PM10 requirements while providing economies of scale. Prepared by: Julie Mignogna, Management Analyst Approved by: Bryan McKinney, Public Works Director/City Engineer Attachment: 1.Amendment No. 5 to AB 2766 Memorandum of Understanding 79 1 Nichole Romane From:Info DoNotReply <webcustomerservice@ontrac.com> Sent:Monday, October 5, 2020 3:41 PM To:Nichole Romane Subject:OnTrac Package Delivery Confirmation: D10012074037532 ** EXTERNAL: This message originated outside of the City of La Quinta. 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