CITY COUNCIL STAFF REPORT
DATE: JUNE 24, 2026 CONSENT CALENDAR
SUBJECT: AMENDMENT NO. 7 TO ASSEMBLY BILL 2766, A MEMORANDUM OF
UNDERSTANDING BETWEEN THE COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS AND THE CITY OF PALM SPRINGS TO PROVIDE SUSTAINABLE FUNDING OF THE REGIONAL PM10
STREET SWEEPING PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
This is a request for approval of Amendment No. 7 to the Memorandum of Understanding between the Coachella Valley Association of Governments (CVAG) and the City of Palm Springs, reflecting an increase in funding participation from 75% to 100%, and allowing for the continuation of funding to the Regional PM10 Street Sweeping Program through AB 2766.
RECOMMENDATION:
1) Approve Amendment No. 7 to the AB 2766 Memorandum of Understanding (MOU) between the Coachella Valley Association of Governments (CVAG) and the City of Palm Springs to increase the City’s contribution to 100% in support of sustainable funding for the Regional PM10 Street Sweeping Program through June 30, 2028 and;
2) Authorize the City Manager to execute Amendment No. 7 to the AB 2766 Memorandum of Understanding (MOU).
BACKGROUND:
In September 1990, the California Legislature adopted AB 2766, which authorizes a surcharge on motor vehicle registration fees to fund programs aimed at reducing air pollution from mobile sources. These funds are collected by the Department of Motor Vehicles and distributed quarterly by the South Coast Air Quality Management District (SCAQMD) to local jurisdictions based on population.
City Council Staff Report
June 24, 2026 -- Page 2
Amendment No. 7 to AB2766
The Coachella Valley and the Salton Sea Air Basin are designated non-attainment areas for PM10, defined as particulate matter less than 10 microns. Major PM10 sources include dust from vehicles traveling on paved and unpaved roads, construction activity, and windblown sand deposited along the Coachella Valley’s blowsand corridor parallel to Interstate 10. Since the early 1990s, CVAG and its member agencies have jointly operated the Regional PM10 Street Sweeping Program, one of the region’s most effective PM10 control measures. Cities contribute funding from their AB 2766 allocations, which have ranged from 33% to 100% over the years. This coordinated, valley-wide approach provides significant economies of scale, allowing major streets to be swept frequently and cost-effectively.
On July 1, 2010, the City and CVAG entered into a Memorandum of Understanding (MOU) to sustain regional PM10 street sweeping efforts. This agreement replaced the previous 2004 MOU. Prompted by depleted regional reserves, the 2010 MOU officially increased the City's AB2766 contribution to CVAG from 45% to 100%. The 2010 MOU including Amendments 1-6 are included as Attachment A. Below is a summary of the amendments:
On October 10, 2011, City Council approved Amendment No. 1, which modified the funding structure by reducing the City’s contribution requirement to 60%. On July 9, 2012, Amendment No. 2 was executed, which maintained the 60% contribution and extended the cost-sharing arrangement through June 30, 2014. On May 22, 2014, Amendment No. 3 was executed, which maintained the 60% contribution and extended the cost-sharing arrangement through June 30, 2016. On August 3, 2016, the City Council approved Amendment No. 4 to the MOU, which increased the City’s contribution to 75% through June 30, 2020. On August 6, 2020, the City Council approved Amendment No. 5 to the MOU, which maintained the City’s contribution rate at 75% through June 30, 2024.
In 2022, a study conducted under a South Coast Air Quality Management District (SCAQMD) grant confirmed that the regional street sweeping program is an effective "best available control measure" for addressing PM10 emissions in the Coachella Valley.
The findings from this study were used to refine the regional contract to make the program more impactful for public health.
On July 25, 2024, the City Council approved Amendment No. 6 to the MOU, which continued the City’s contribution rate at 75% through June 30, 2026.
STAFF ANALYSIS:
The program is currently responsible for bi-weekly sweeping of 1,050 curb miles of regional arterials. This includes 977 miles of regular streets and 73 miles of "special impact" streets. The City of Palm Springs has 806 curb miles of roadways that are swept under the Regional PM 10 program. Of these, Palm Springs has 670 residential miles, 112 arterial miles, and 24 highway miles. Palm Springs also has special impact streets City Council Staff Report
June 24, 2026 -- Page 3
Amendment No. 7 to AB2766
located on sections of Dinah Shore Drive and North Gene Autry Trail. As part of the 2022 study, additional regional sweeping road segments in the City of Palm Springs were added to the program, which are Sunrise Way and East Mesquite Avenue. Figure 1 below shows the Arterials swept by Regional PM10 program.
Figure 1
City Council Staff Report
June 24, 2026 -- Page 4
Amendment No. 7 to AB2766
The amended program now incorporates the bi-weekly sweeping of the CV Link, accounting for approximately 1,600 linear miles of annual sweeping to maintain the new regional trail system. In addition, service levels were significantly increased recently to combat the surge in blow sand and fugitive dust caused by Tropical Storm Hilary in 2023.
The Regional Street sweeping program is currently funded by three main sources:
1. AB 2766 Vehicle Subvention Funds
Member agencies contribute 75%
Amount: ~$450,000
2. SCAQMD Grant
Amount: $220,000
3. City of Palm Springs Hwy 111 sweeping, (Per a separate MOU) Amount: $27,000
Recent increases in program costs are attributed to three primary factors:
1. Enhanced service levels for special impact roadways ($130,530).
2. A 5% increase in fuel and waste disposal processing costs ($66,380).
3. The addition of CV Link sweeping services paid by CVAG ($82,400).
CVAG previously received funds from the Coachella Valley Air Quality Enhancement Fund (Colmac), however, funding has lapsed, and the SCAQMD grant expires in June 2027, creating a projected structural deficit beginning in FY 2027-28.
While a one-year grant extension from SCAQMD provides temporary relief through June 2027, the program faces a long-term structural deficit. Without the proposed increase to a 100% AB 2766 contribution, the program is projected to operate at a deficit starting in Fiscal Year 2027-28.
To address this, CVAG is recommending increasing the AB 2766 contribution from 75% to 100% from member jurisdictions starting July 1, 2026. CVAG is actively pursuing continued SCAQMD and Colmac replacement funding from the County of Riverside.
With this seventh amendment, CVAG requests that the jurisdictional contribution level be increased to 100% for the next two years, through June 30, 2028. One hundred percent of all funding goes toward the street sweeping program. Amendment No. 7 to the MOU was approved by the CVAG Executive Committee on December 1, 2025. The Amendment is included as Attachment B and the CVAG Staff report is included as Attachment C.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines the requested City Council action is not a “Project” pursuant to Section 15378(b)(5).
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are not considered a “Project”.
City Council Staff Report
June 24, 2026 -- Page 5
Amendment No. 7 to AB2766
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Public Safety and Community Services.
FISCAL IMPACT:
There is no impact on the City’s General Fund. The funds being transferred are restricted revenues received specifically for air quality purposes under AB2766.
REVIEWED BY:
Department Director: Joel Montalvo
Director of Finance: Kristopher J. Mooney
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. AB2766 MOU – Including Amendments 1-6
B. Amendment No. 7
C. CVAG Staff Report December 1, 2025.