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MEMORANDUM OF UNDERSTANDING Page 1 of 7
BETWEEN THE MARICOPA COUNTY AIR QUALITY DEPARTMENT CFDA: 66.040 State Clean Diesel Grant
AND TURBINE ALLOYS, LLC Program (B)
Federal Award ID (FAIN): 99T63001
Title: State Clean Diesel Grant Program Sub Award EPA Award Date: October 01,2018
Effective Date: Upon Final Signature
Termination Date: September 30, 2019
COUNTY SUBRECIPIENT
Maricopa County Turbine Alloys
1001 N Central Ave. #125 2229 W Roosevelt St.
Phoenix, AZ 85004 Phoenix, AZ 85009
Name: Philip A. McNeely Name: Steven Quick
Title: AQD Director Title: President/Owner
Phone: 602.506.6701 Phone 602.258.5885
SAM Name: Turbine Alloys, LLC
System of Award Management (SAM) No.: 077600877
Congressional District: (7)
This Memorandum of Understanding (MOU) is entered into by and between the MARICOPA COUNTY AIR QUALITY
DEPARTMENT, hereinafter referred to as "MCAQD" and TURBINE ALLOYS, LLC, hereinafter referred to as "Turbine Alloys".
The purpose of this MOU is to administer the funding provided by the Environmental Protection Agency (EPA) through Maricopa
County to the subrecipient Turbine Alloys for the State Clean Diesel Grant Program Funding provided through the Diesel Emissions
Reduction Act (DERA).
Turbine Alloys will assume the following responsibilities:
• Turbine Alloys will procure the replacement of the vehicle/s in line with guidelines set forth by the FY2017-2018 State Clean
Diesel Grant Program Information Guide.
• Turbine Alloys will provide a work plan via separate attachment to the County for review and approval prior to initiating work.
• Turbine Alloys 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.
• Turbine Alloys will provide monthly reports to Maricopa County on the purchasing of the new vehicles and any issues that
arise.
• Turbine Alloys will provide quarterly reports with complete updated technical data worksheet.
• Turbine Alloys will register as an entity on Sam.gov in order to receive federal grant funds.
• Turbine Alloys will register as a vendor to Maricopa County in order to be reimbursed for purchases.
• Turbine Alloys will provide detailed invoices to Maricopa County in order to be reimbursed for purchases.
• Turbine Alloys will complete all work defined in the project work plan by September 30, 2019.
• Turbine Alloys 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.
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IN WITNESS WHEREOF, the parties have executed this MOU as of the date set forth above;
MARICOPA COUNTY, a political subdivision of the State of Arizona
By:
Chairman, Maricopa County Board of Supervisors
Approved as t
Depu County Attorney
ATTEST:
By:
Clerk of the Maricopa County Board of Supervisors
MOU TERMS
1. Recitals: The purpose of this MOU 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 MOU. 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 MOU, except where the context necessarily requires otherwise.
2.1 "U.S.C." means United States Code.
2.2 "MOU" means this written document between Turbine Alloys, LLC and the County.
2.3 "County" means MARICOPA COUNTY which is acting on behalf of the State of Arizona.
2.4 'Parties" means Turbine Alloys, LLC and MARICOPA COUNTY.
3. Access to Information: Subject to statutory confidentiality requirements of the County and Turbine Alloys, both parties to
this MOU shall have full, complete and equal access to data and information prepared under this MOTJ on a no-charge basis.
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4. Amendment: This MOU may be modified only by written Amendment signed by the Director or designee, of Turbine Alloys
and the person duly authorized to act on behalf of the County. Amendments shall be executed with the same formalities as this
MOU. Executed copies of any Amendment shall be provided to both parties.
5. Amount of MOU: A maximum amount of $49,580.00 will be funded under this MOU.
6. Governing Law:
6.1 This MOU 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 MOTJ are a part of this
MOU as if fully stated in it.
7. Assienment: Neither Party may assign any rights hereunder without the express, written, prior consent of the other Party.
8. Audit of Records: Turbine Alloys shall retain all data, books and other records ("records") relating to this MOU for a period
of five years after completion of the MOU, 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 State at reasonable times. Upon request,
the Turbine Alloys 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. MOU Term: The initial term of this MOU shall be from the date the final signatory signs the MOU and will be valid until
September 30, 2019.
10. Effective Date: This MOU shall become effective upon execution of the MOU by all parties.
11. Non-Availability of Funds: Every payment obligation of the County under this MOU 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 MOU, this MOU may be terminated by either party at the end of the period for which funds are 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:
Steven Quick, President/Owner
Turbine Alloys, LEG
2229 W. Roosevelt St.
Phoenix, AZ 85009
602.258.5885
squicic@turbinealloys.com
12.2 All correspondence relating to the execution of the MOU, clarification of this MOU, and MOU Amendments shall be sent to:
For Turbine Alloys, LLC For Maricopa County:
Steven Quick, President/Owner Larz Garcia, Grant Programs Administrator
Turbine Alloys, ILLC Maricopa County Air Quality
2229 W. Roosevelt St. 1001 N. Central Avenue #125
Phoenix, AZ 85009 Phoenix, AZ 85004
602.258.5885 602.506.0147
squick@turbinealloys.com larzgarcia@mail.maricopa.gov
13.3 Either party to this MOTJ may designate a new contact by filing a notice with the other party in accordance with these notice
requirements.
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14. Ownership of Information: Title to all documents, reports and data prepared in the course of this MOU by Turbine Alloys
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 MOU.
15. Reporting: Reporting pursuant to 42 U.S.C. 16133 shall be in accordance with the Scope of Work at the end of this MOU. In
addition, Turbine Alloys will provide quarterly status reports.
16. Severabilitv: The provisions of this MOU are severable to the extent that any provision or application determined to be invalid
shall not affect any other provision or application of the MOU, which shall remain in effect without the invalid provision or
application.
17. Termination:
17.1 Turbine Alloys or the County may terminate this MOU 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 MOU is terminated, with or without cause, Turbine Alloys shall deliver all finished or unfinished program
documents, data, and reports prepared as a result of this MOU to the County.
18. Indemnification:
18.1 Each party (as "Indenanitor") 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. The State of Arizona is self-insured
per A.R.S. 41-621.
DIESEL EMISSIONS REDUCTION ACT STATE CLEAN DIESEL GRANT PROGRAM OVERVIEW
Administration
Maricopa County Air Quality Department (MCAQD) will administer the Diesel Emissions Reduction Act (DERA) State Clean
Diesel Program in Maricopa County under authorization from the State of Arizona and the EPA Administration costs are capped
at fifteen percent (15%) and for this award are under the cap at eleven point seven percent (11.7%). Turbine Alloys will limit
administrative costs to the program by using existent funds and staff Costs to the DERA fund will be limited to Turbine Alloys
administrative costs if approved in the application, and equipment reimbursable costs.
DERA will allow for vehicles with engine years from 1995-2006 and 2007-2010 to be retrofitted or replaced with new current
technologies. DERA will pay the current percentages for the specified technology written in the approved work plan, and Turbine
Alloys will be responsible for the cost share amount.
DERA Eligible Activities DERA Funding Limits Minimum Mandatory
(DERA Funds + Voluntary Cost-Share (Fleet Owner
Match) Contribution)
Exhaust Control Retrofit 100% 0%
Engine Upgrade / 40% 60%
Remanufacture
Highway Idle Reduction 25% 75%
Locomotive Idle Reduction 40% 60%
Marine Shore Power 25% 75%
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Electrified Parking Space 30% 70%
Engine Replacement— Diesel 40% 60%
or Alternative Fuel
Engine Replacement— Low 50% 50%
NOx
Engine Replacement— All- 60% 40%
Electric
Vehicle/Equipment 25% 75%
Replacement— Diesel or
Alternative Fuel
Vehicle/Equipment 35% 65%
Replacement
— Low NOx
Vehicle/Equipment 45% 55%
Replacement
— All-Electric
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 MOU effective date through September 30, 2019. 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
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
Turbine Alloys 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 be need to be addressed in the submitted budget.
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SCOPE OF WORK
The Turbine Alloys, 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 Turbine Alloys.
1.2 Maricopa County will verify emissions reductions from the vehicles retrofitted or replaced. Maricopa County will collect
data from the Turbine Alloys and submit quarterly reports as required by the EPA. On October 20, 2019 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.
C. The administrative costs of the DERA.
2. Turbine Alloys, shall provide the following services:
2.1 Follow all program requirements as detailed in the FY2017-2018 State Clean Diesel Grant Program Information
Guide as published by the EPA - Office of Transportation and Air Quality, April 19, 2018.
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 program requirements as detailed in the FY2017-2018 State Clean Diesel Grant Program Information
Guide as published by the EPA - Office of Transportation and Air Quality, April 19, 2018.
2.5 Follow all Federal grant requirements including 2 CFR §200.318 General Procurement Standards through §200.326.
2.6 Establish and follow written policies required by the 2 CFR 200:
a. Suspension and Debarment (per 2 CFR 200 §200.212)
b. Cash Management (per 2 CFR 200 §200.302 (b)(6))
C. Allowability of Costs (per 2 CFR §200.302(b)(7) and Subsection E-Cost Principles)
d. Procurement (per 2 CPR §200.318 through 200.326)
2.7 Upon MOU effective date, order, receive and document replacement vehicles.
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.
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.
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APPROVED WORK PLAN
Sub award Vehicles Cost Per DERA Cost Share
#4 Vehicle
Turbine 2004 Freightliner $99,160 $24,790 $74,370
Alloys
2006 International ST $99,160 $24,790 $74,370
Subtotal 2 Vehicles $198,320 $49,580 $148,740
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