Title
Air Quality Management District (AQMD) recommending the Board of Supervisors, acting as the AQMD Board of Directors:
1) Approve AQMD's use of AB2766 funding and Community Air Protection (CAP) Program funding to award a grant in the total amount of $423,737 to the El Dorado County Parks Division (Parks) for funding of the paving project for Forebay Park;
2) Authorize the Chair of the Board to sign the attached budget transfer releasing funds totaling $559,578 from AQMD's Designated Fund Balance to AQMD's operating account to accommodate this grant award and increase contingency;(4/5 vote required)
3) Authorize the Chair and the AQMD Air Pollution Control Officer (APCO) to sign a grant agreement between the County and AQMD for the grant award of $70,000 in CAP funds to Parks, based on approval by County Counsel and Risk Management; and
4) Authorize the Chair and the AQMD APCO to sign an MOU between the County and AQMD to accommodate the transfer of $353,737 in AB2766 funds from AQMD to Parks, based on approval by County Counsel and Risk Management.
FUNDING: CAP, AQMD fund balance.
Body
DISCUSSION / BACKGROUND
El Dorado County Air Quality Management District (AQMD) recommends that the Board, acting as the Board of Directors of the El Dorado County Air Quality Management District, approve the grant amount and authorize the Air Pollution Control Officer to execute a grant funding agreement with the County Parks and Trails Division in the total amount of $423,737.
This amount includes $70,000 from the California Air Resources Board State Community Air Protection funding, with the remaining $353,737 to be funded from the reserve balance originally budgeted in the Facilities/ACO Fund for AQMD office renovations.
In addition, AQMD requests authorization to transfer the remaining designation balance of approximately $205,841 into the AQMD Operational Fund as contingency. If the department does not need these funds in FY 2025-26 the funds will roll into undesignated fund balance at the end of the fiscal year.
Assembly Bill (AB) 617 (Chapter 136, Statutes of 2017) directed the California Air Resources Board (CARB), in conjunction with local air Districts to establish the Community Air Protection (CAP) Program; and the objectives of the CAP include the reduction of criteria air pollutants and toxic air contamination in low-income communities and the assurance that emissions reductions exceed those mandated by regulatory standards.
Forebay Park is located within low-income communities, as defined for California Climate Investments, as referenced in the Priority Population Investments 4.0 Update available at https://www.caclimateinvestments.ca.gov/priority-populations; and County Parks and Trails Division has proposed a paving project proposal for Forebay Park that meets the eligibility criteria of the CAP program.
The AQMD administers the California and Federal Clean Air Acts in accordance with guidelines established by State and Federal agencies, as well as AQMD Rules adopted by the Board of Directors. Revenue sources include stationary source permit fees, construction dust mitigation plan fees, Federal and State grant funding, motor vehicle registration fees, State funding for the Portable Equipment Registration Program (PERP), subvention funding for rural districts, and other sources. California Health and Safety Code Sections 40130-40131 require that air districts adopt their budgets through an open process, separate from other budget processes, to ensure the public has full opportunity to participate in and comment on a district’s budget prior to adoption.
During the FY2022/23 Budget hearing, the Board directed AQMD to place $850,000 of AB2766 administrative funding into its designated fund balance based on an estimate of remaining funds dedicated to the AQMD office/parking lot project. In the FY2023/24 budget process, this amount was corrected to $559,578 which was determined to the be correct remaining unused amount based on Facility staff's review of costs for the project as of February 2021. Since that time, the remaining AQMD office and parking project funds have remained in AQMD's designated fund balance.
AQMD is now proposing to use $353,737 of these designated funds for the proposed Forebay Park paving project. In addition, AQMD requests the Board's approval to transfer the remaining designation balance of $205,841 into AQMD's Operational Fund.
AQMD Budget history by Fiscal Year (FY):
• FY 2018-2019: $1,000,000 budgeted for a new AQMD office, including billings from the Facilities/ACO fund for office renovations and parking lot construction, based on rough initial estimates.
• FY 2019-2020: Budget adjusted to $750,000 based on refined estimates, designated for office renovation and parking area construction.
• FY 2020-2021: $640,000 allocated for parking area construction adjacent to the AQMD and CAO offices.
• FY 2021-2022: Remaining unspent $564,478 budgeted for continued parking area development.
• FY 2022-2023: Parking project canceled; $850,000 transferred into AQMD designated fund balance.
• FY 2023-2024: After re-calculation of project costs, AQMD designated fund balance adjusted to $559,578.
ALTERNATIVES
The Board will not approve this grant as is proposed, and the AQMD will not be able to fund this project.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
No impact on Net County Cost.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board shall:
1) Obtain the Chair of the Board of Supervisors' signature on budget transfer and forward to County Auditor/Controller for posting; and
2) After approval by County Counsel and Risk Management, obtain the Chair of the Board of Supervisor's signature on two (2) originals of the CAP funding agreement, and forward the originals to AQMD for execution by the APCO; and
3) After approval by County Counsel and Risk Management, obtain the Chair of the Board of Supervisor's signature on two (2) originals of the AB2766 funding MOU, and forward the originals to AQMD for execution by the APCO; and
4) Forward a copy of the Board Minute Action to AQMD.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rania Serieh, Air Pollution Control Officer, Air Quality Management District