ITEM 6-B 
 
City Council Meeting 6-25-91             Santa Monica, California 
 
                          STAFF REPORT 
 
TO:         Mayor and City Council 
 
FROM:       City Attorney 
 
SUBJECT:    Ordinance Adding Chapter 7 to Article V of the 
            Santa Monica Municipal Code Relating to Mobile 
            Source Air Pollution Reduction Fees 
 
      At  its  meeting  on  June  18,  1991,  the  City   Council 
introduced  for  first  reading  an  ordinance relating to mobile 
source air  pollution  reduction  fees.   The  ordinance  is  now 
presented to the City Council for adoption. 
 
                         RECOMMENDATION 
 
      It  is  respectfully  recommended  that  the   accompanying 
ordinance be adopted. 
 
PREPARED BY:  Robert M. Myers, City Attorney 
              Joseph Lawrence, Assistant City Attorney 
 
 
                      ORDINANCE NUMBER ____ 
 
                      (City Council Series) 
 
             AN ORDINANCE OF THE CITY COUNCIL OF THE 
       CITY OF SANTA MONICA ADDING CHAPTER 7 TO ARTICLE V 
         OF THE SANTA MONICA MUNICIPAL CODE RELATING TO 
           MOBILE SOURCE AIR POLLUTION REDUCTION FEES 
 
      THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS 
FOLLOWS: 
 
      SECTION 1.  Chapter 7 is added to Article V  of  the  Santa 
Monica Municipal Code to read as follows: 
 
             Chapter 7.  MOBILE SOURCE AIR POLLUTION 
                         REDUCTION FEES 
 
                  SECTION   5700.     Findings    and 
            Purpose.  The City Council of the City of 
            Santa Monica finds and declares that: 
 
                  (a)   The  City  is  committed   to 
            improving  the  public health, safety and 
            welfare, including  air  quality  of  the 
            City and surrounding area. 
 
                  (b)  Mobile sources such  as  motor 
            vehicles  are  a major contributor to air 
            pollution in Santa Monica and  throughout 
            the South Coast Air Basin. 
 
                  (c)   Air  quality  goals  for  the 
            region established by state law cannot be 
            met without reducing air  pollution  from 
            mobile sources. 
 
                  (d)  The South  Coast  Air  Quality 
            Management   Plan   ("AQMP")  calls  upon 
            cities and counties to  reduce  emissions 
            from  motor  vehicles consistent with the 
            requirements of the California Clean  Air 
            Act    of    1988   by   developing   and 
            implementing mobile source air  pollution 
            reduction programs. 
 
                  (e)   Such   programs   should   be 
            financed  by  shifting the responsibility 
            for financing from the  general  fund  to 
            the  motor  vehicles creating the demand, 
            to the greatest extent possible. 
 
                  (f)    Section   44223    of    the 
            California   Health   and   Safety   Code 
            authorizes the South  Coast  Air  Quality 
            Management  District ("SCAQMD") to impose 
            an additional motor vehicle  registration 
            fee of Two Dollars ($2.00), commencing on 
            April 1, 1991, increasing to Four Dollars 
            ($4.00),  commencing on April 1, 1992, to 
            finance     the     implementation     of 
            transportation  measures  embodied in the 
            AQMP and  provisions  of  the  California 
            Clean Air Act. 
 
                  (g)  Forty cents  of  every  dollar 
            collected  under  Section  44223  of  the 
            Health   and   Safety   Code   shall   be 
            distributed   to   cities   and  counties 
            located in the South  Coast  Air  Quality 
            Management   District  that  comply  with 
            Section 44243 of the Code, based  on  the 
            jurisdiction's    prorated    share    of 
            population  as  defined  by   the   State 
            Department of Finance. 
 
                  (h)  The City is located within the 
            South   Coast   Air   Quality  Management 
            District and is  eligible  to  receive  a 
            portion   of   the   revenues   from  the 
            additional  motor  vehicle   registration 
            fees  contingent  upon  adoption  of this 
            Ordinance. 
 
                  (i)  The prorated share of the  fee 
            revenues for cities that fail to adopt an 
            ordinance pursuant to Section 44243(b)(3) 
            of  the  Health  and Safety Code shall be 
            distributed instead to the  jurisdictions 
            within  the District that have adopted an 
            ordinance. 
 
                  (j)    The   imposition   of    the 
            additional motor vehicle registration fee 
            by the SCAQMD to  finance  mobile  source 
            air  pollution  reduction  programs is in 
            the  best  interest  of  the   city   and 
            promotes   the  general  welfare  of  its 
            residents. 
 
                  (k)  This Ordinance is intended  to 
            implement  the SCAQMD's imposition of the 
            vehicle registration fee and to bring the 
            City    into    compliance    with    the 
            requirements set forth in  Section  44243 
            of the Health and Safety Code in order to 
            receive fee revenues for the  purpose  of 
            implementing   programs   to  reduce  air 
            pollution from motor vehicles. 
 
                  SECTION  5701.   Definitions.    As 
            used in this Chapter, the following words 
            and phrases shall be defined as follows: 
 
                  (a)  "City" shall mean the City  of 
            Santa Monica. 
 
                  (b)  "Mobile source  air  pollution 
            reduction   programs"   shall   mean  any 
            program or  project  implemented  by  the 
            City  to  reduce air pollution from motor 
            vehicles  which  it  determines  will  be 
            consistent  with the California Clean Air 
            Act of 1988 or the plan proposed pursuant 
            to  Article  5  (commencing  with Section 
            40460) of Chapter 5.5 of Part  3  of  the 
            California Health and Safety Code. 
 
                  (c)  "Fee Administrator" shall mean 
            the  Finance  Director of the City or his 
            or her designee. 
 
                  SECTION  5702.   Administration  of 
            Vehicle Registration Fee. 
 
                  (a)    Receipt   of    Fee.     The 
            additional   vehicle   registration  fees 
            disbursed by the SCAQMD and  remitted  to 
            the  City,  pursuant  to  this Ordinance, 
            shall   be   accepted    by    the    Fee 
            Administrator. 
 
                  (b)  Establishment of  Air  Quality 
            Improvement    Trust   Fund.    The   Fee 
            Administrator shall establish a  separate 
            interest  bearing trust fund account in a 
            financial   institution   authorized   to 
            receive deposits of City funds. 
 
                  (c)   Transfer  of   Funds.    Upon 
            receipt of vehicle registration fees, the 
            Fee  Administrator  shall  deposit   such 
            funds    into    the   separate   account 
            established pursuant  to  Subsection  (b) 
            above.   All interest earned by the Trust 
            Fund Account shall be  credited  only  to 
            that account. 
 
                  (d)   Expenditure  of  Air  Quality 
            Trust   Fund   Revenues.    All  revenues 
            received from the SCAQMD and deposited in 
            the   Trust   Fund   Account   shall   be 
            exclusively  expended  on  mobile  source 
            emission reduction programs as defined in 
            Section 5701 above.   Such  revenues  and 
            any interest earned on the revenues shall 
            be expended within one (1)  year  of  the 
            completion of the programs. 
 
                  (e)  Audits.  The City consents  to 
            an  audit  of  all  programs and projects 
            funded  by   vehicle   registration   fee 
            revenues   received   from   the   SCAQMD 
            pursuant to Section 44223 of  the  Health 
            and  Safety  Code.   The  audit  shall be 
            conducted  by  an   independent   auditor 
            selected  by  the  SCAQMD  as provided in 
            Sections  44244  and  44244.1(a)  of  the 
            Health and Safety Code. 
 
      SECTION 2.  Any provision of  the  Santa  Monica  Municipal 
Code  or  appendices  thereto inconsistent with the provisions of 
this Ordinance, to the extent  of  such  inconsistencies  and  no 
further, are hereby repealed or modified to that extent necessary 
to affect the provisions of this Ordinance. 
 
      SECTION 3.  If any section, subsection,  sentence,  clause, 
or  phrase of this Ordinance is for any reason held to be invalid 
or unconstitutional by a decision of any court of  any  competent 
jurisdiction,  such decision shall not affect the validity of the 
remaining portions of this Ordinance.  The  City  Council  hereby 
declares  that  it would have passed this Ordinance, and each and 
every  section,  subsection,  sentence,  clause,  or  phrase  not 
declared  invalid  or  unconstitutional without regard to whether 
any portion of  the  Ordinance  would  be  subsequently  declared 
invalid or unconstitutional. 
 
      SECTION 4.  The Mayor shall sign and the City  Clerk  shall 
attest  to  the  passage of this Ordinance.  The City Clerk shall 
cause the same to be published once  in  the  official  newspaper 
within  15  days after its adoption.  This Ordinance shall become 
effective after 30 days from its adoption. 
 
APPROVED AS TO FORM: 
 
__________________________________ 
ROBERT M. MYERS 
City Attorney