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 the first round of applications 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

To date five applications have been received, the following four of which have qualified for match funds based on the eligible categories established for the program:

• City of Monterey Park - $11,000
Purchase two alternative-fueled OEM vehicles, one light-duty truck and one dial-a-ride vehicle; construct four CNG refueling stations, purchase CNG
diagnostic maintenance equipment; and improve two bus stop waiting areas. This project is eligible within the alternative fuels and transportation related land-use strategies match categories.

• City of Rialto - $70,250
Improvements at Metrolink Station; construction of a 2,400 ft. depot; and creation of 60-80 additional parking spaces. This project is eligible within the transportation related land-use strategies match category.

• City of Villa Park - $5,500
Purchase one CNG truck. This project is eligible within the alternative fuels match category.

• City of Maywood - $19,254
Purchase one electric pickup truck and two CNG light-duty passenger vehicles. This project is eligible within the alternative fuels 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 four 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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