BOARD MEETING DATE: August 8, 1997 AGENDA NO. 4


Proposal:

Execute Contracts for Local Government Subvention Fund Match Program as Part of FY 1997-99 AB 2766 Discretionary Fund Work Program

Synopsis:

Within the FY 1997-99 AB 2766 Discretionary Fund Work Program, the MSRC created a $6.5 million Local Government Subvention Fund Match Program which, through a simplified application process, provides a 25% match to cities and counties within the AQMD’s jurisdiction that receive AB 2766 City Subvention Funds. Eligible match categories include alternative fuels/electric vehicles, transportation related land-use strategies, public transportation (transit & rail), traffic management, transportation demand management (non-Rule 2202), market-based strategies, bicycles, and public education related to clean vehicles or transportation. Funds will be allocated on a first-come, first-serve basis. The six-month application process is May 15 through November 15, 1997. At this time the MSRC is requesting approval of applications recently submitted by local governments.

Committee:

Mobile Source Air Pollution Reduction Review, February 27, 1997, Approved Unanimously

Recommended Action:

Approve projects submitted by local governments in the application process for the Local Government Subvention Fund Match Program as part of the FY 1997-99 AB 2766 Discretionary Fund Work Program.

Mayor John Longville
Chair, MSRC


Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board.

On April 11, 1997, the Governing Board approved in concept the two-year, $26 million FY 1997-99 AB 2766 Discretionary Fund Work Program, including a $6.5 million Local Government Subvention Fund Match Program. Through a simplified application process, this program provides a 25% match to cities and counties within the AQMD’s jurisdiction that receive AB 2766 City Subvention Funds. The program is designed to encourage cities and counties to implement projects which have a high potential for reducing motor vehicle emissions. Eligible match categories include:

  • Alternative Fuels/Electric Vehicles: such as alternative fuel OEM vehicle purchases, alternative fuel infrastructure implementation, and mechanic training for alternative fuel vehicles;

  • Transportation Related Land-Use Strategies: such as traffic calming strategies, enhanced pedestrian and bicycle facilities, enhanced transit facilities, and mixed-use projects and on-site services;

  • Public Transportation (transit and rail): such as new transit facilities, operation of alternative fuel vehicles, and short-term passenger fare incentives for new ridership development;

  • Traffic Management;

  • Transportation Demand Management (non-Rule 2202): such as public/
    private sector community based projects to support voluntary ridesharing, purchase or lease of alternative fuel vehicles to support vanpool projects, video conferencing projects, and park-and-ride lot development;

  • Market-Based Strategies: such as implementation of transportation pricing strategies;

  • Bicycle Related Projects: such as commuter bikeway development or striping, bicycle commuter facilities, bicycle commuter incentive projects, and purchase or lease of bicycles for community service personnel; and

  • Public Education Related to Clean Vehicles or Alternative Transportation Modes.

    The program encourages partnerships among local and community entities that can submit project proposals to their respective city or county. The six-month application process is May 15 through November 15, 1997, and funds will be allocated on a
    first-come, first-serve basis. Once an application is approved, MSRC funds will be
    reserved for that project. All projects must be completed by June 30, 1999, and match
    monies will be paid on a reimbursed basis only.

    Outreach

    The MSRC sent a 33-page information packet regarding the Local Government Subvention Fund Match Program application process to every city and county within the AQMD’s jurisdiction that participates in the AB 2766 Subvention Fund Program. In addition, the FY 1997-99 MSRC Work Program information brochure, which describes all of the FY 1997-99 Work Program’s funding opportunities, including the subvention fund match program, was mailed to each of the 1,800 interested individuals and entities which are contained in the MSRC’s mailing data base.

    The MSRC conducted a Bidder’s Conference for the Local Government Subvention Fund Match Program, the Research and Development RFP, and the three Transportation Control Measure RFPs in the AQMD Auditorium on Wednesday, May 21, 1997. Approximately 100 interested individuals attended the Bidder’s Conference. During the same
    afternoon, the MSRC held a Technical Workshop for the potential Local Government Subvention Fund Match Program participants, which was attended by approximately 125 individuals representing local government agencies. For the last several months during their daily outreach efforts, Intergovernmental Affairs staff have been advising local government officials, at both elected and staff levels, about the MSRC’s Local Government Subvention Fund Match Program, and they continue to do so.

    In addition, other outreach workshops were held. These workshops were jointly sponsored by the MSRC, the AQMD, and the Solis Group, who are the contract consultants retained by the AQMD to provide assistance in presenting AB 2766 Subvention Fund Program Workshops and technical assistance to local governments regarding their subvention fund spending plans. Two such workshops were conducted, one in Orange County in cooperation with the Orange County Council of Governments on Thursday, May 29, 1997, and another in cooperation with the Southern California Gas Company at their Energy Resource Center in Downey on Thursday, June 5, 1997. Oral presentations were made and hard copy materials were distributed to attendees regarding the MSRC’s Local Government Subvention Fund Match Program at each workshop.

    Applications Received

    The following six applications were received recently and have qualified for match funds based on the eligible categories established for the program:

  • City of Temecula - $9,500
    Design, striping and construction of road improvements to provide safe bicycle

    access to various locations throughout Temecula. This project is eligible within the bicycle-related projects match category.

  • City of Temecula - $40,000
    Design and construction of sidewalk, curb and parkway landscaping to improve pedestrian access to Sports Park. This project is eligible within the transportation related land-use strategies match category.

  • City of Glendale - $107,952
    Purchase of five CNG buses to replace five diesel buses in Glendale’s fixed fleet route known as the "Beeline." This project is eligible within the alternative fuels match category.

  • City of Huntington Park- $39,000
    Operation of four alternative fuel vehicle shuttles in downtown Huntington Park. This project is eligible within the public transportation match category.

  • City of Azusa - $25,000
    Purchase of five alternative fuel vehicles. This project is eligible within the alternative fuels match category.

  • City of San Clemente - $34,000
    Construction of a bike trail to improve the regional bike system in Orange County. This project is eligible within the bicycle-related projects match
    category.

    The application process and eligible match categories were established by the MSRC, and further approved by the Governing Board. The MSRC’s Contract Administrator and Technical Advisor as well as the AQMD’s Contracts Manager have reviewed each application for compliance with the program.

    Proposal

    On February 27, 1997, the MSRC approved the elements of the FY 1997-99 AB 2766 Discretionary Fund Work Program, including the application process and eligible match categories for the local government match program. When the Governing Board approved the application process and categories for the Local Government Subvention Fund Match Program on April 11, 1997, authority was also granted to the AQMD’s Contracts Manager to execute agreements with local governments, subject to Governing Board approval of the local government projects as part of the MSRC’s FY 1997-99 Work Program. At this time the MSRC is requesting approval of six more projects that meet the eligible match categories for 25% match funding as listed above.

    Resource Impacts

    Health & Safety Code Section 44243(2)(c) requires the AQMD to deposit the discretionary fund revenues "in an account to be used, pursuant to Section 44244, to provide grants to fund projects for the exclusive purpose of reducing air pollution from motor vehicles." Since the monies for these projects will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

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