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R115891 City Council Meeting June 11, 2024 Santa Monica, California RESOLUTION NUMBER 11589 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT FOR THE TRANSPORTATION MANAGEMENT PLAN ORDINANCE WHEREAS, on October 23, 1984, the Santa Moncia City Council adopted the Circulation Element of the General Plan, which directed the City to develop a Transportation Management Plan to implement the transportation management policies contained in the Circulation Element; and WHEREAS, on November 12, 1991, the City Council adopted the Transportation Management Plan (TMP) Ordinance to reduce transportation congestion on City streets and to improve air quality through the effective management and coordination of transportation demand and transportation systems in the City; and WHEREAS, on April 14, 1992, the City Council approved a Memorandum of Understanding (1992MOU) between the City of Santa Monica and the South Coast Air Quality Management District (AQMD), which, among other things, recognized the City’s TMP Ordinance as consistent with but more stringent than the state’s regulations, and delineated enforcement responsibilities for state and local requirements; and WHEREAS, on April 9, 1996, the City and AQMD amended the 1992 MOU to address changes in state law; and WHEREAS, AQMD and the City now desire to enter into a new memorandum of understanding that will supersede the thirty-two-year-old 1992 MOU and address recent changes in state law. DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves the Memorandum of Understanding between the City and AQMD attached hereto as Exhibit “A”. The City Council hereby also authorizes the City Manager or designee to terminate the 1992 MOU by giving written notice to AQMD. SECTION 2. The City Clerk shall cause a certified copy of this Resolution, attested by the City Clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof in the office of the Los Angeles County Recorder SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ Douglas Sloan, City Attorney DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 3 EXHIBIT A (Memorandum of Understanding) DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 1 MEMORANDUM OF UNDERSTANDING BETWEEN SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT AND CITY OF SANTA MONICA PARTIES This Memorandum of Understanding (“MOU”), entered into on this ___ day of _____, 2024, by and between the South Coast Air Quality Management District (“South Coast AQMD”) and the City of Santa Monica (“City”). The South Coast AQMD and the City are collectively referred to herein as “the Parties.” RECITALS 2.1 The Parties seek to ensure that the full intent and purpose of the South Coast AQMD’s Rule 2202 (“Rule 2202”) – On-Road Motor Vehicle Mitigation Options will be maintained and enforced. Pursuant to Rule 2202 subsection (k), the South Coast AQMD may delegate the authority to implement all or part of Rule 2202, except for subsection (f)(5) – Air Quality Investment Program, to a local government that satisfies the criteria in Rule 2202 subsection (k)(1) through (k)(3) - Delegation to Local Governments. The South Coast AQMD desires to support the delegation of authority to the City to streamline recordkeeping and compliance requirements for employers who are subject to both South Coast AQMD and City regulations. 2.2 The Parties acknowledge that the City’s Ordinance Number _____ as codified in Santa Monica Municipal Code Chapter 9.53 – Transportation Demand Management, satisfies the requirements of Health and Safety Code §§ 40449 and 40717(e). Santa Monica Municipal Code Chapter 9.53 is stricter than the applicable provisions of Rule 2202, except for subsection (f)(5) which will be administered and implemented by the South Coast AQMD) and not in conflict therewith. 2.3 Execution of this MOU is intended to demonstrate approval of the Transportation Management Ordinance Number _____ (“TDMO”) by the South Coast AQMD as contemplated below, and to delineate enforcement responsibilities between the South Coast AQMD and the City for employers and developers subject to the TDMO. 2.4 This MOU is intended to provide a procedure to prevent the approved status of the TDMO from lapsing during future modifications to Rule 2202 or to the TDMO and to specify procedures for monitoring and reviewing the performance of the City in implementing the program. DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 2 AGREEMENT 3.1 Approval of the Transportation Management Ordinance. 3.1.1 The TDMO adopted by the City is attached as Appendix A to this document. The signatures of the parties to this MOU constitute approval of the TDMO by the South Coast AQMD. For the purposes of this MOU, the approved status of the TDMO signifies an acknowledgement that the TDMO is an air pollution control ordinance that is stricter than and not in conflict with the requirements of Rule 2202, except for subsection (f)(5), adopted by the South Coast AQMD within the meaning of Health and Safety Code § 40449, and that the TDMO is at least as stringent as the requirements of Rule 2202, except for subsection (f)(5), within the meaning of Health and Safety Code § 40717(e), in the following areas, as set forth in Rule 2202, subsection (k): i. Applicability; ii. Emission reductions target; iii. Vehicle trip emission credit calculations; iv. Annual registration; and v. Recordkeeping. 3.1.2 The TDMO shall remain approved by South Coast AQMD unless: i. Rule 2202 is amended and the City does not adopt such amendments, consistent with the procedure outlined in Section 3.2 of this MOU; ii. The TDMO is amended to be less stringent than Rule 2202; iii. The TDMO is rescinded by the Santa Monica City Council; iv. The approved status of the TDMO is revoked by the South Coast AQMD pursuant to Section 3.9 of this MOU. 3.2 Procedures for Maintaining the TDMO’s Approved Status. 3.2.1 If the South Coast AQMD seeks to amend Rule 2202 in a way that would render the TDMO less stringent than Rule 2202, the following procedures shall apply: DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 3 i.The South Coast AQMD shall advise the City in writing of possible amendments to Rule 2202 at the time that public hearings on such amendments are set. ii.Following adoption of modifications to Rule 2202 by the South Coast AQMD’s Governing Board, the South Coast AQMD shall notify the City in writing of the nature of those modifications no later than 30 days from the adoption date. iii.Upon receiving notification of adopted modifications, the Santa Monica City Council shall have 180 days in which to consider and approve necessary modifications to the TDMO if the City wishes to maintain the TDMO’s approved status. iv. Upon written agreement, the Parties may extend the time to consider and approve necessary modifications period. 3.2.2 If the City seeks to amend the TDMO and the City wishes to maintain the TDMO’s approved status, the following procedures shall apply: i. The City shall initiate discussions in writing with the South Coast AQMD regarding the acceptability of proposed amendments to the TDMO prior to any public hearing before the Santa Monica City Council concerning the proposed amendments. ii.The South Coast AQMD shall respond to the City within 60 days of receipt of the proposed amendments to the TDMO. If the South Coast AQMD fails to take action with regard to the proposed amendments within 180 days, the City may deem the amendments approved. iii.The City shall notify the South Coast AQMD in writing of any amendments adopted by the Santa Monica City Council. If such amendments were previously approved, or deemed approved, by the South Coast AQMD under 3.2.2(ii), the approved status of the TDMO will remain unchanged. If such amendments are not approved, or not deemed approved, by the South Coast AQMD, then the approved status of the TDMO is revoked. 3.2.3 This MOU does not affect the City’s general authority to amend the TDMO. However, compliance with the provisions in Section 3.2 is required to maintain the approved status of the TDMO. DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 4 3.3 Enforcement of Rule 2202 and the TDMO 3.3.1 Except as provided in Sections 3.3.3 and 3.3.4, the City shall enforce the TDMO with respect to employers within the City. However, the City shall report to the South Coast AQMD any violations of the TDMO by, enforcement actions taken against, or compliance investigations or audits of, employers with 250 employees or more at a single worksite in the City’s jurisdiction, within 30 days of the enforcement action. 3.3.2 The South Coast AQMD shall enforce Rule 2202 against any County, State, or Federal agency with offices in the City, and shall enforce the TDMO against the City. The South Coast AQMD shall provide courtesy copies upon request of the Emission Reduction Programs (“Plans”) submitted by each County, State, or Federal agency, to the City for informational purposes. The City shall submit its TDMO Plan directly to the South Coast AQMD. 3.3.3 If the South Coast AQMD determines that the City is not enforcing the TDMO, the South Coast AQMD retains the authority pursuant to Health and Safety Code §§ 40449 and 40717(e) to enforce the TDMO against any employers in the City. The South Coast AQMD shall give the City notice of its intent to enforce, and the City shall have 30 days in which to cure any defects in its enforcement prior to South Coast AQMD enforcement. 3.3.4 If, after the expiration of the 30-day notice period, the South Coast AQMD undertakes enforcement action, the South Coast AQMD shall notify the City of planned or unplanned employer audits or compliance inspections at least 24 hours in advance of such action to allow City auditors the opportunity to be present. City staff and South Coast AQMD staff shall share information from audit reports and shall agree on the criteria by which to determine non-compliance with the TDMO. 3.4 Annual Status Report Requirements 3.4.1 The City shall report to the South Coast AQMD annually by March 31st. The written status report shall include the information delineated in Appendix B, providing a detailed summary of compliance with the City’s TDMO by employers with 250 employees or more within the City’s jurisdiction. 3.4.2 The South Coast AQMD shall use the information contained in the status report to assist with the evaluation of the effectiveness and benefits of various incentives and compliance strategies. The South Coast AQMD shall share the results of its DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 5 analysis with the City, which, in turn, will use such information when advising employers in the City on how best to comply with the TDMO. 3.4.3 Those employers included in the City’s annual report will not be required to demonstrate compliance with Rule 2202, provided they are compliant with the City’s Ordinance Number _____. 3.5 Employers with Multiple Worksites 3.5.1 Pursuant to Health and Safety Code § 40717 and Rule 2202, and depending on employer status, employers with multiple sites that have more than one regulated worksite within the South Coast AQMD’s jurisdiction must comply with Rule 2202 and, if applicable, the TDMO. 3.6 Form of Materials 3.6.1 For the purposes of maintaining uniformity and validity when assessing performance and evaluating the effectiveness of plans at the local and regional levels, all TDMO materials and forms used by the City must be prepared in consultation with the South Coast AQMD. This consultation will ensure compatibility with those materials used by the South Coast AQMD. 3.7 Training Courses 3.7.1 The training of employee transportation coordinators (ETCs) for worksites of 250 employees or more shall be conducted by the South Coast AQMD or a South Coast AQMD-approved training provider. 3.8 Review of Employer Submitted Emission Reduction Programs 3.8.1 The South Coast AQMD shall share information with City staff on current methods and criteria used for reviewing plans. 3.8.2 City staff shall not approve plan updates from employers who have failed to improve their Average Vehicle Ridership (“AVR”) to meet the applicable target AVR, unless update modifications are made to the plan which, in the opinion of City staff, constitute a good faith effort to meet the target AVR. Employers meeting their AVR goal shall submit plan updates which maintain such goals. DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 6 3.9 Revocation of Delegation of Authority 3.9.1 Consistency between the City’s and the South Coast AQMD’s evaluation criteria and plan review process will be evaluated by the South Coast AQMD during the review of the City’s Annual Status Report and TDMO. If the South Coast AQMD finds that the City’s plan review process and evaluation criteria are less rigorous than those of the South Coast AQMD, the South Coast AQMD shall give the City notice of the discrepancy, specifying the manner in which the plan review process and evaluation criteria are less rigorous than those of the South Coast AQMD. 3.9.2 The City shall have 90 days to cure any defects in its plan review process and/or evaluation criteria after notification by the South Coast AQMD. If the South Coast AQMD finds that such discrepancies have not been cured within 90 days, the South Coast AQMD reserves the right to revoke the approved status of the TDMO. 3.9.3 If the City fails to submit its Annual Status Report to the South Coast AQMD and/or fails to provide the information required by Appendix B, the South Coast AQMD reserves the right to revoke (i) the approved status of the TDMO or (ii) its delegation of authority to the City. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 7 3.10 Amendments 3.10.1 Any amendments or additions to this MOU must be in writing and signed by both parties. 3.11 Execution in Counterparts 3.11.1 This MOU may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute one and the same document. Any signature to this MOU transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature). ATTEST: City of Santa Monica, a municipal corporation ___________________ Nikima Newsome By _______________________ Interim City Clerk David White City Manager Date ________________ Approved as to Form: ______________________ Douglas Sloan City Attorney South Coast Air Quality Management District By ____________________ Date __________________ Approved as to Form: _____________________ Bayron Gilchrist District Counsel DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 APPENDIX A City of Santa Monica Transportation Management Ordinance Number _____ (TDMO) DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 1 APPENDIX B The City of Santa Monica must submit an Annual Status Report to the South Coast AQMD. The report shall be annually submitted for review by November 27th and approved in writing by the South Coast AQMD no later than March 31st. Reports that are incomplete or inaccurate may not be approved as submitted. The South Coast AQMD will provide reasons for the disapproval of a report in writing by February 27th and the City must address any deficiencies and submit a revised report to the South Coast AQMD within 30 days. The South Coast AQMD will then have 30 days to review and approve the revised report. If the South Coast AQMD issues a second disapproval notice, then the City will be violating the terms of this MOU and the South Coast AQMD reserves the right to revoke the approved status of the TDMO and the delegation of authority to the City pursuant to Rule 2202 subsection (l). At a minimum, the Annual Status Report must include the following information for each worksite of 250 employees or more subject to the TDMO: 1. Site ID # (issued by AQMD) 2. Employer Name 3. Employer Address 4. Business Type/Classification (effective January 1, 2025) 5. Name and Contact Information of the Highest-Ranking Officer 6. Name and Contact Information of a Contact Person at the Worksite 7. Total Number of Employees at the Worksite 8. Total Number of Employees in the AM peak window 9. Telecommuting Practices- the report will include the total number of employees who are eligible to telecommute, the maximum number of days per week they are allowed to telecommute, the number of employees who are currently telecommuting, the average number of days per week that employees telecommute, if any telecommute incentives are offered, and if the employees teleworking schedules are permanent, temporary or a return to office date has been set (effective January 1, 2025) 10. Plan Due Date 11. Plan Submittal Date 12. Plan Approval Date 13. Type of Program Selected by Employer for Compliance 14. Emission Reduction Target (ERT) info (if filing ERS) 15. Total Vehicle Miles Traveled (VMT) by commute mode from employees assigned to the worksite (effective January 1, 2025) DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 2 16. If filing an ECRP, the following information is required: a.Employee Trips (Line ET); b.Vehicle Trips (Line TV); c. Calculated AVR; d.List of Plan Strategies by category (Marketing, Basic/Support, andDirect); e. Details of selected strategies, if applicable; f.If AVR remains the same or has decreased from previous year, highlightprogram enhancements. 17. Compliance Audit Information (if audit conducted by the City of Santa Monica,provide audit results) 18.Total Emission Reductions Attained by all City of Santa Monica RegulatedEmployers with 250 or more Employees (VOC, NOx, and CO) DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74 Adopted and approved this 11th day of June, 2024. __________________________ Phil Brock, Mayor I, Nikima S. Newsome, Interim City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11589 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 11th day of June, 2024, by the following vote: AYES: Councilmembers Zwick, Parra, Davis, Torosis, Mayor Pro Tem Negrete, Mayor Brock NOES: None ABSENT: Councilmember de la Torre ATTEST: _____________________________________ Nikima S. Newsome, Interim City Clerk DocuSign Envelope ID: F8788359-B370-4933-97D5-6A8E69E22C74