SYSCO FY22 DERA SUBAWARD AGREEMENT.PDF

Maricopa County — Formal (2023-02-08)

View PDF Item 41 Meeting page

Extracted text (via pymupdf) 17810 characters
Page 1 of 7
MEMORANDUM OF UNDERSTANDING 
MARICOPA COUNTY AIR QUALITY DEPARTMENT 
& 
SYSCO CORPORATION 
 
Agreement Title:  State Clean Diesel Grant Program Sub Award 
Page 1 of 7 
CFDA: 66.040 State Clean Diesel Grant 
Program (B) 
Federal Award ID (FAIN): 98T26201-1 
EPA Award Date: October 24, 2022 
Effective Date: Upon Final Signature 
Termination Date: March 31, 2024 
 
 
 
COUNTY 
 
SUBRECIPIENT 
Maricopa County 
 
Sysco Corporation (Sysco Foodservices of Arizona) 
301 W. Jefferson St. Suite 410 
 
1390 Enclave Parkway 
Phoenix, AZ 85012 
 
Houston, Texas 77077 
Name: Philip A. McNeely 
 
Name: Eddie Tantoco 
Title: AQD Director 
 
Title: Director, Tax and Business Incentive 
Phone: 602.506.6701 
 
Phone 281-584-4097 
 
 
SAM Name: Sysco Corporation 
 
 
System of Award Management (SAM) No.: 051099661 
Congressional District: TX 07 
 
 
THIS MEMORANDUM OF UNDERSTADING (MOU) is between MARICOPA COUNTY (“Maricopa County” or “the County”) and 
SYSCO CORPORATION (SYSCO). 
The purpose of this MOU is to administer the funding provided by the Environmental Protection Agency (EPA) through Maricopa 
County to the subrecipient SYSCO for the State Clean Diesel Grant Program Funding provided through the Diesel Emissions Reduction 
Act (DERA).  
SYSCO will assume the following responsibilities: 
• 
SYSCO will procure the replacement of the vehicle/s in line with all applicable guidelines set forth by the FY2021-2022 Diesel 
Emissions Reduction Act (DERA) State Grants Program Guide as published by the EPA - Office of Transportation and Air 
Quality, April 2022. 
 
• 
SYSCO will provide a work plan via separate attachment to the County for review and approval prior to initiating work. 
 
• 
SYSCO will ask for written prior approval from the County for any work plan changes prior to initiating work not approved in 
original application/technical data worksheet. 
 
• 
SYSCO will schedule a giant foam check or program certificate presentation with Maricopa County to occur within 90 days of 
dated award letter.  Photos of presentation must be submitted to the County. 
 
• 
SYSCO will post a press release on their organization website within 30 days of the above-mentioned presentation.  The press 
release and all outreach media pertaining to the subaward must have prior review and written approval from the County.  This 
includes both written and spoken material.  All outreach material must include the “DERA State Clean Diesel Grant Program”, 
the funding amount received, and the funding percentage received.  Proof of the press release must be submitted to the County. 
 
• 
SYSCO will provide monthly reports to Maricopa County on the purchasing of the new vehicles and any issues that arise. 
 
• 
SYSCO will provide quarterly reports with complete updated technical data worksheet. 
 
• 
SYSCO will register as an entity on Sam.gov in order to receive federal grant funds. 
 
• 
SYSCO will register as a vendor to Maricopa County in order to be reimbursed for purchases. 
 
• 
SYSCO will provide detailed invoices to Maricopa County in order to be reimbursed for purchases. 
 
• 
SYSCO will complete all work defined in the project work plan by March 31, 2024.

Page 2 of 7
• 
SYSCO will affix a County-provided DERA program sticker to all new program vehicles once received.  The sticker must 
remain on the vehicle at all times. 
 
• 
SYSCO will submit all final project data required to close out the grant including programmatic, financial, and environmental 
results including a final updated technical data worksheet. 
 
AGREEMENT TERMS 
 
1. 
Recitals:  The purpose of this Agreement is to administer the Diesel Emission Reduction Act (DERA) sub award, as explained 
under 42 U.S.C. § 16133.   
 
2. 
Definitions:  The Parties agree to expeditiously initiate and complete the scope of work under this Agreement.  The Parties 
warrant, represent and agree that they, their employees and representatives will comply with all applicable provisions provided 
herein. The following definitions shall apply to the terms used in this Agreement, except where the context necessarily requires 
otherwise. 
 
2.1 
“U.S.C.” means United States Code.  
 
2.2 
“Agreement” means this written document between SYSCO and the County.  
 
2.3 
“County” means MARICOPA COUNTY, which is acting on behalf of the State of Arizona. 
 
2.4 
"Parties" means Sysco Corporation (Sysco Foodservices of Arizona) (SYSCO) and MARICOPA COUNTY. 
 
3. 
Access to Information:  Subject to statutory confidentiality requirements of the County and SYSCO, both parties to this 
Agreement shall have full, complete and equal access to data and information prepared under this Agreement on a no-charge 
basis. 
 
4. 
Amendment:  This Agreement may be modified only by written Amendment signed by the Director or designee, of SYSCO 
and the person duly authorized to act on behalf of the County.  Amendments shall be executed with the same formalities as this 
Agreement.  Executed copies of any Amendment shall be provided to both parties. 
 
5. 
Amount of Agreement: Up to $217,140.00 will be funded under this Agreement.   Up to ten percent additional funds may be 
funded if approved by the County during the project to offset vehicle replacement cost increases. 
 
6. 
Governing Law: 
 
6.1 
This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona. 
 
6.2 
Implied Consent Terms:  Each provision of applicable law and any terms required by law to be in this Agreement are a part 
of this Agreement as if fully stated in it. 
 
7. 
Assignment:  Neither Party may assign any rights hereunder without the express, written, prior consent of the other Party. 
 
8. 
Audit of Records: SYSCO shall retain all data, books and other records (“records”) relating to this Agreement for a period of 
five years after completion of the Agreement, any litigation, claim, negotiation, audit, cost recovery, or action involving the 
records has been completed.  All records shall be subject to inspection and audit by the EPA at reasonable times.  Upon request, 
SYSCO shall produce the original of any or all such records.  Examples of such records include: 
a. 
Subrecipient financial statements and reports 
b. Programmatic reports including information on environmental results 
c. 
Audit findings 
 
9. 
Agreement Term:  The initial term of this Agreement shall be from the date the final signatory signs the agreement and will 
be valid until March 31, 2024. 
 
10. 
Effective Date:  This Agreement shall become effective upon execution of the agreement by all parties.    
 
11. 
Non-Availability of Funds:  Every payment obligation of the County under this Agreement is conditioned upon the availability 
of funds appropriated or allocated for the payment of such obligation.  If funds are not allocated and available for the 
continuance of this Agreement, this Agreement may be terminated by either party at the end of the period for which funds are

Page 3 of 7
available.  No liability shall accrue to either party in the event this provision is exercised, and the parties shall not be obligated 
or liable for any future payments or for any damages as a result of termination under this paragraph. 
 
12. 
Notices, Correspondence, Reports and Invoices: 
 
12.1 
All notices and correspondence from the County shall be sent to:  
                           
 
 
 
 
 
Yusra Farooqi 
Senior Analyst, Tax & Business Incentives 
1390 Enclave Parkway 
Houston, Texas 77077 
(281) 584-7003 
Yusra.farooqi@sysco.com 
 
12.2 
All correspondence relating to the execution of the Agreement, clarification of this Agreement, and Agreement Amendments 
shall be sent to: 
 
 
For Sysco Corporation              
 
 
For Maricopa County: 
 
 
 
 
 
 
Eddie Tantoco, Director, Tax and Business Incentive Larz Garcia, Grant Programs Administrator  
 
Sysco Corporation 
 
 
       
Maricopa County Air Quality 
 
1390 Enclave Parkway 
 
 
 
301 W Jefferson St.  Suite 410 
 
Houston, Texas 77077 
 
 
 
Phoenix, AZ  85003 
 
(281) 584-4097  
 
 
 
(602) 506-0147 
Edward.Tantoco@sysco.com  
 
 
larz.garcia@maricopa.gov 
 
 
 
 
 
 
 
 
 
 
 
13.3 
Either party to this Agreement may designate a new contact by filing a notice with the other party in accordance with these 
notice requirements. 
 
14. 
Ownership of Information:  Title to all documents, reports and data prepared in the course of this Agreement by SYSCO 
shall rest with the County. The County shall have full and complete rights to reproduce, duplicate, disclose, perform, and 
otherwise use all information prepared under this Agreement.  
 
15.  
Reporting:  Reporting pursuant to 42 U.S.C. § 16133 shall be in accordance with the Scope of Work at the end of this 
Agreement. In addition, SYSCO will provide quarterly status reports. 
 
16. 
Severability:  The provisions of this Agreement are severable to the extent that any provision or application determined to be 
invalid shall not affect any other provision or application of the Agreement, which shall remain in effect without the invalid 
provision or application. 
 
17. 
Termination: 
 
17.1 
SYSCO or the County may terminate this Agreement at any time, with or without cause, after giving 30 days written notice of 
termination to the other party, as appropriate.  The notice shall specify the effective date of termination.   
 
17.2 
In the event the Agreement is terminated, with or without cause, SYSCO shall deliver all finished or unfinished program 
documents, data, and reports prepared as a result of this Agreement to the County. 
18. 
Indemnification: 
18.1 
Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as "Indemnitee") from and against 
any and all claims, losses, liability, costs, or expenses (including reasonable attorney's fees) (hereinafter collectively referred 
to as "Claims") arising out of bodily injury of any person (including death) or property damage, but only to the extent that such 
Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, 
or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers.   
 
 
 
DIESEL EMISSIONS REDUCTION ACT STATE CLEAN DIESEL GRANT PROGRAM OVERVIEW

Page 4 of 7
Administration  
Maricopa County Air Quality Department (MCAQD) will administer the Diesel Emissions Reduction Act (DERA) State Clean 
Diesel Grant Program in Maricopa County under authorization from the State of Arizona and the EPA. SYSCO will limit 
administrative costs to the program by using existent funds and staff. Costs to the DERA fund will be limited to SYSCO 
administrative costs if approved in the application, and equipment reimbursable costs.     
DERA will pay the current percentages for the specified technology written in the approved work plan, and SYSCO will be 
responsible for the cost share amount.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Budget and Period of Performance 
Written approval by MCAQD is required prior to any changes to the sub award budget.  Failure to obtain prior written authorization 
may result in suspension of the sub award or unallowability of costs.  
Sub award monies are to be used only during the period of the agreement effective date through March 31, 2024.  Any deviation 
from this schedule must have prior approval from MCAQD. A request for extension may be considered but will require prior 
approval by MCAQD and the EPA a minimum of sixty days before the scheduled end date of the award.  
Disbursements  
DERA Eligible Activities 
DERA Funding Limits 
(DERA Funds + Voluntary 
Match) 
Minimum Mandatory 
Cost-Share  (Fleet Owner 
Contribution) 
Exhaust Control Retrofit 
100% 
0% 
Engine Upgrade / 
Remanufacture 
40% 
60% 
Highway Idle Reduction  
25% 
75% 
Locomotive Idle Reduction 
40% 
60% 
Marine Shore Power 
25% 
75% 
Electrified Parking Space 
30% 
70% 
Engine Replacement– Diesel 
or Alternative Fuel 
40% 
60% 
Engine Replacement– Low 
NOx 
50% 
50% 
Engine Replacement– All-
Electric 
60% 
40% 
Vehicle/Equipment 
Replacement– Diesel or 
Alternative Fuel  
25% 
75% 
Vehicle/Equipment 
Replacement 
– Low NOx 
 
35% 
65% 
Vehicle/Equipment 
Replacement 
– All-Electric 
45% 
55%

Page 5 of 7
Payment of sub award monies is to be made once evidence of retrofit completion or new vehicle invoice and documentation of 
proper destruction of replaced vehicle is submitted to MCAQD.  Use of subaward monies is subject to compliance with these 
conditions of the subaward and satisfactory project performance. MCAQD reserves the right to terminate any project that, in 
MCAQD’s sole discretion, is not satisfactorily pursuing and fulfilling stated project goals and objectives. MCAQD shall reimburse 
SYSCO for cancellable obligations properly incurred prior to termination notice. 
Destruction Requirements  
 
The vehicle/equipment being replaced will be scrapped or rendered permanently disabled within 90 days of the replacement, or 
remanufactured to a certified cleaner current emission standard. Permanently disabling the chassis and disabling or remanufacturing 
the engine while retaining possession of the vehicle/equipment is an acceptable scrapping method. Disabling the chassis may be 
completed by cutting through the frame/frame rails on each side at a point located between the front and rear axles. Other acceptable 
scrappage methods may be considered and will require written approval from MCAQD Grant Programs Administrator. 
Vehicle/Equipment components that are not part of the engine or chassis may be salvaged from the unit being replaced. If scrapped 
or remanufactured vehicles/equipment or salvaged vehicle/equipment chassis or components are to be sold, this program income 
will need to be addressed in the submitted budget.  
 
SCOPE OF WORK 
 
The SYSCO, under the authorization of Maricopa County in accordance with 42 U.S.C. § 16133, shall administer the Diesel 
Emissions Reduction Act (DERA) State Clean Diesel Grant Program.    
 
1. The County shall provide the following services: 
 
1.1 
Maricopa County will review and pay program invoices submitted by SYSCO. 
 
1.2 
Maricopa County will verify emissions reductions from the vehicles retrofitted or replaced.  Maricopa County will collect 
data from the SYSCO and submit quarterly reports as required by the EPA.  On December 30, 2024, the County shall prepare 
and submit a final report to the EPA that contains at least the following information:  
 
a.   
The number of vehicles retrofitted or replaced by model year. 
b. 
The quantity and nature of vehicle emissions reduced. 
c. 
The cost-effectiveness of the DERA in terms of dollars spent per ton of vehicle emission reductions. 
d. 
Any recommendations for improving the effectiveness of the DERA. 
e. 
The administrative costs of the DERA. 
 
2. SYSCO, shall provide the following services:  
 
2.1      Follow all program requirements as detailed in the FY2021-2022 Diesel Emissions Reduction Act (DERA) State Grants 
            Program Guide as published by the EPA - Office of Transportation and Air Quality, April 2022. 
 
2.2      Determine and verify eligibility of retrofit components and/or vehicles for DERA.  
 
2.3      Adhere to the project work plan noted below as approved by the EPA and the MCAQD. 
 
2.4      Per its written procurement policy, obtain and review bids to purchase DERA-eligible qualified replacement vehicles   
            while adhering to Federal program requirements. 
 
2.5      Follow all Federal grant requirements including 2 CFR § 200.318 through § 200.326. 
 
2.6      Establish and follow written policies required by  2 CFR Part 200: 
 
a. 
Suspension and Debarment (per 2 CFR § 200.214) 
b. 
Financial Management (per 2 CFR § 200.302)  
c. 
Allowability of Costs (per 2 CFR § 200.302(b)(7) and Subpart E-Cost Principles) 
d. 
Internal Controls (per 2 CFR § 200.303) 
e. 
Conflict of Interest (per CFR § 200.318(c) (1-2) 
f. 
General Procurement Standards (per 2 CFR § 200.318 through § 200.326) 
 
2.7 
Upon Agreement effective date, order, receive and document replacement vehicles.

Page 6 of 7
 
2.8 
Submit quarterly reports and vehicle data as requested by the County.   
 
2.9 
Invoice Maricopa County for program costs associated with implementing the DERA per program reimbursement and 
support documentation requirements.  
 
2.10 
Submit evidence of appropriate disposal (digital photos including the engine tag showing the serial number, engine family 
number, and engine model year and of the destroyed engine block and cut frame rails or other structural components) as 
required by program guidelines.  Submit photos of newly purchased replacement vehicles. 
 
 
APPROVED WORK PLAN 
 
 
 
APPROVED VEHICLES 
 
 
 
 
 
 
 
 
                  IN WITNESS WHEREOF, the parties have executed this “Agreement” as of the date set forth above; 
MARICOPA COUNTY:

Page 7 of 7
 
 
 
Chairman 
Maricopa County Board of Supervisors 
Date 
 
Attest by: 
 
 
Juanita Garza, Clerk of the Board 
Maricopa County  
 
 
Date 
SYSCO CORPORATION: 
 
 
Eddie Tantoco, Director, Tax and Business Incentive 
 
 
Signature 
Sysco Corporation (Sysco Foodservices of Arizona) 
(SYSCO) 
 
Date 
Approved as to Form: 
 
In accordance with A.R.S. §§ 11-201 and 11-251 the foregoing Agreement has been reviewed by the undersigned 
attorneys who have determined that said Agreement is in proper form and, as applicable, is within the powers and 
authority granted to the public body. 
 
 
Karen Hartman-Tellez, Senior Deputy County 
Attorney 
Maricopa County  
 
 
Date 
 
First name Last name (printed), Legal Counsel 
Sysco Corporation (Sysco Foodservices of Arizona) (SYSCO) 
 
Date 
 
12/9/2022