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Agenda Item 25.

City Council Meeting

Meeting Date:	10/06/2020
FROM:	Bill Gallardo

Subject:

Approve AB 2766/MSRC Local Government Partnership Program Contract ML 18100 and Use of AB 2766 Discretionary and Subvention Funds

RECOMMENDATION

Approve Contract ML 18100 for AB 2766/MSRC Local Government Partnership Program;
Authorize use of AB 2766 Discretionary Funds in the amount of $56,500 for payment towards electrical charging stations at Parking Structure No. 2; and
Authorize use of AB 2766 Subvention Funds in the amount of $39,500 for payment towards electrical charging stations at Parking Structure No. 2

BACKGROUND/DISCUSSION

The City of Brea was awarded a grant in the amount of $56,500 from the South Coast Air Quality Management District (SCAQMD). The grant utilizes funds collected from AB 2766 Discretionary Funds, which originate from motor vehicle fees for the purpose of reducing air pollution to implement the California Clean Air Act. This grant was initially awarded to support the installation of Level II chargers at Parking Structure No. 2 utilizing the Charge Ready Program offered by Southern California Edison (SCE). After working through the details of the Charge Ready Program with SCE, it became apparent that there would be a significant local match requirement and staff looked for other alternatives.

As a result, staff contacted Tesla representatives, who agreed to leverage a few of their electrical vehicle (EV) charging programs to meet the matching requirements of the SCAQMD grant. Tesla proposed to use both their supercharger program and designation charging programs to install a total of 48 EV chargers. Tesla would install 24 wall chargers (also known as Level II or Universal Chargers for any EV user) and install 24 superchargers for Tesla vehicles only at Parking Structure No. 2 located at 175 S. Madrona Avenue. Tesla agreed to pay the entire cost of the superchargers and requested a one-time City contribution towards the total cost of the Level II chargers. The total estimated cost to install the Level II chargers is $134,400. Tesla requested for the City to contribute $4,000 per charger for a total contribution of $96,000 and Tesla would pay the remaining $38,400. The proposed agreement with Tesla is included under a separate item for City Council consideration.

For the City contribution of $96,000, staff recommends using the mentioned $56,500 from AB 2766 Discretionary Funds and $39,500 from the AB 2766 Subvention Fund. AB 2766 Subvention Fund was adopted in 1990 to provide revenue to reduce air pollution from motor vehicles. The revenue is generated from a registration surcharge collected by the Department of Motor Vehicles. The AB 2766 Subvention Fund has sufficient funds available for this purpose, but requires City Council action to direct the funding towards this project.

The City Attorney has reviewed the contract from SCAQMD and approves as to form.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their September 29, 2020 meeting and recommended to proceed.

FISCAL IMPACT/SUMMARY

Approval of the contract ML 18100 with the Mobile Source Air Pollution Reduction Review Committee (MSRC), which is a part of the Local Government Partnership Program, will authorize the City to receive the grant in the amount of $56,500. These funds would be utilized for a portion of the $96,000 contribution required to install 24 wall chargers (Level II) in the Downtown Parking Structure No. 2. The remaining $39,500 will come from the AB 2766 Subvention Fund to cover the full cost of the contribution requirements with Tesla. There is no impact to the General Fund.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Brian M. Ingallinera, Environmental Services Coordinator
Concurrence: Rudy Correa, Interim Superintendent and
Tony Olmos, P.E., Public Works Director

Attachments
AB2766/MSRC Contract ML 18100