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SR-6-G (123) 6-6 MAY 1 ~ ~.' .:,} 1 - LUTM:PB:RF:db:AB2766:DESK:GENSERV Santa Monica, California council Meeting, May 28, 1991 To: Mayor and City Council From: City Staff Subject: Recommendation to Direct the City Attorney to Draft an Ordinance to Implement AB 2766 Authorizing the Imposition of Additional Vehicle Registration Fees to Finance the Implementation of Transportation Measures Embodied in the AQMP and provisions of the California Clean Air Act Introduction This report recommends the City Council direct the City Attorney to draft an ordinance to implement AB 2766 authorizing the imposition of additional vehicle registration fees to finance the implementation of transportation measures embodied in the Air Quality Management Plan (AQMP) and provisions of the California Clean Air Act. Discussion The South Coast Air Basin has the most serious air quality problems in the nation. Achieving and maintaining healthful air, in accordance with federal and state mandates, is the primary responsibility of the South Coast Air Quality Management District (SCAQMD) . Local governments can assist in the reduction of air pollution through their comprehensive planning authority. To this end, the State LegiSlature passed AB 2766. This legislation authorizes the imposition of an additional motor vehicle registration fee of two dollars effective April 1, 1991. The fee will increase to four dollars on April 1, 1992. 6 G - 1 - MAY - ~ J1 Fees generated from this increase are to be used to reduce air pollution from mobile sources. Forty percent of this revenue will be available to cities and counties provided they adopt by the end of June 1991 an ordinance which incorporates the following elements: 0 Expresses support for the adoption of motor vehicle registra- tion fees to be used to reduce air pollution from motor vehicles pursuant to the california Clean Air Act of 1988 or the AQMP. 0 Expressly require all revenues to be spent to reduce air pollution from motor vehicles. 0 Establish an air quality improvement trust fund into which the fee revenues will be deposited. The AQMD is required to disburse the revenues in the following manner: 0 30% to the AQMD itself for programs to reduce mobile source air pollution and to carry out activities related to the California Clean Air Act. 0 40% to cities and counties within the District on a population basis to be used to implement programs to reduce air pOllution from motor vehicles. 0 30% to implement discretionary programs to reduce mobile source air pollution. A regional Mobile Source Air Pollution Reduction Review committee is to develop and adopt work programs that will be funded by these revenues. The Committee is comprised of representatives of the following agencies: - SCAQMD (South Coast Air Quality Management District) - SANBAG (San Bernardino Association of Governments - SCAG (Southern California Association of Governments) - LACTC (Los Angeles County Transportation Commission) - OCTC (Orange County Transportation commission) - RCTC (Riverside County Transportation Commission) - California Air Resources Board - CTS, Inc. (Commuter Computer) - 2 - The staff intends on using the City's portion of the fees to help implement existing and future programs to reduce air pollution from motor vehicles, such as the city's Regulation XV and Transportation Management Programs, and other transportation demand management (TDM) and transportation systems management (TSM) programs the staff will be developing in the next fiscal year. BUdget/Financial Impact The AQMD estimates that the city of Santa Monica will receive about $70,000 in FY91/92 and $115,000 in FY92/93 and thereafter. If a city or county fails to adopt an ordinance, the fee revenues which would be distributed to that city or county shall instead be distributed to the other cities and counties within the south coast district which have adopted an ordinance, based upon their prorated share of registered motor vehicles. Upon adoption of the necessary ordinance, appropriate revision will be included in the proposed FY1991-92 City Budget. Recommendation It is recommended the City Council direct the city Attorney to draft an ordinance in support of AB 2766 authorizing the imposition of additional vehicle registration fees to finance the implementation of transportation measures embodied in the AQMP and provisions of the California Clean Air Act. The ordinance should be brought back to Council for adoption prior to the end of June, 1991. - 3 - --- Prepared by: Paul Berlant, Director of Land Use and Transportation Management Ron Fuchiwaki, City Parking and Traffic Engineer (ab2766) - 4 -