HomeMy WebLinkAbout06 - CC-8 - Grant Award Acceptance- Volkswagen Mitig - 4/6/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 6, 2021 ITEM NUMBER: CC-8
SUBJECT: GRANT AWARD ACCEPTANCE - VOLKSWAGEN MITIGATION
TRUST FUND TRANSIT BUS
DATE: MARCH 11, 2021
FROM: PUBLIC SERVICES DEPARTMENT / ADMINISTRATION
PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION
CONTACT:
SALEM AFEWORKI, LEED GA, ENV SP,
ENERGY AND SUSTAINABILTY SERVICES
MANAGER, (714) 754-5208
RECOMMENDATION:
Staff recommends that the City Council
1. Accept a grant for $159,985.41 from San Joaquin Valley Unified Air Pollution
Control District, administrator of Volkswagen (VW) Mitigation Trust Funds for
Zero-Emission Transit, School and Shuttle Bus Project.
2. Approve a budget adjustment appropriating the $159,985.41 for the purchase of
a new electric shuttle bus.
3. Authorize the purchase of a new e-shuttle from Creative Bus Sales, 14740
Ramona Avenue, Chino, CA 91710, for $159,985.41.
BACKGROUND:
On July 21, 2020, the City Council adopted Resolution No. 2020-43 (Attachment 1),
authorizing the Public Services Director to submit an application, sign required
assurances, and administer the VW Environmental Mitigation Trust Funds Zero-
Emission Transit, School and Shuttle Bus Project.
In late 2020, the City was successful in securing a grant for up to $180,000, and on
January 13, 2021, Funding Agreement G-96390-A1 (Attachment 2) between the San
Joaquin Valley Unified Air Pollution Control District and the City of Costa Mesa was
executed for the purchase of a new electric shuttle bus to replace an existing City
owned bus that runs on gasoline.
2
ANALYSIS:
The City of Costa Mesa is taking proactive measures to advance sustainability and local
climate action policies that enhance community health and well-being. One of the
priority area City staff is working on is to find cost-effective, forward-looking and
innovative ways to increase sustainable and clean mobility options for Costa Mesa
residents and visitors.
In contrast to conventional internal combustion vehicles, Zero Emission Vehicles
(ZEVs) produce zero tailpipe emissions, thereby preventing harmful greenhouse gas
and criteria pollutants from being released into the environment. They also save money,
improve local air quality and build resilience. ZEVs eliminate fuel cost completely and
reduce maintenance costs drastically due to the high efficiency of electric-drive
components. Moreover, the communities most burdened by air pollution are often the
ones along major transportation corridors and a switch to ZEVs will help alleviate that
burden.
To expand the most needed EV infrastructure, the City recently finalized the
construction of nine publically available, ADA compliant, EV charging stations at City
Hall. Widespread availability of infrastructure ensures that residents will have less
range anxiety, encouraging them to buy or lease an EV. Staff plans to add more
charging stations at various City facilities in the near future.
Some of the City’s fleet is old, inefficient, and costly to maintain. The goal is to gradually
convert all City fleet vehicles to zero emission where technically feasible. One way to
accomplish that is by leveraging local, state and federal grants to slowly electrify and
modernize City fleet.
The City already has three fully electric Chevy Bolts that were partially funded through
Mobile Source Air Pollution Reduction Review Committee (MSRC) grant. To expand
ZEVs in the City’s medium and heavy-duty vehicles, the City pursued California
Volkswagen (VW) Environmental Mitigation Trust fund grant through San Joaquin
Valley Unified Air Pollution Control District, and was awarded $180,000. This grant will
be used to purchase a new zero-emission bus (e-shuttle) to replace one of the old City
buses that currently serve the Senior Center.
As part of the grant application process, staff was required to find a new e-shuttle bus
that is comparable to the existing City bus, meets all the grant requirements, and get a
detailed quote for the proposed bus from a California’s Hybrid and Zero-Emission Track
and Bus Voucher Incentive Program (HVIP) approved dealer.
Fleet services contacted the approved dealers to identify an e-shuttle bus that met all
the technical and pricing requirements. During the conversations with dealers, it
became evident that the cost of 2019 Model e-shuttle buses are all above $200,000
and the only option to find an e-shuttle that can be purchased fully through the grant is
to consider a 2016 Model from HVIP approved dealer.
3
Only Creative Bus Sales had the 2016 Model that meets the grant requirements, is
similar to existing City bus, and has the best price of $159,985.41 (Attachment 3). The
maximum amount for a battery electric transit bus through VW Mitigation Trust Fund is
$180,000. Staff has submitted all vehicles documentation for the new and old buses,
including detailed bus specs and itemized quote from Creative Bus Sales and they have
been thoroughly reviewed and approved by San Joaquin Valley Unified Air Pollution
Control District, the administrator of Volkswagen (VW) Mitigation Trust Funds.
A Single Source Request and Creative Bus Sales’ quote was submitted to Finance to
justify the purchase of the new e-shuttle bus exceeding the $50,000 threshold and the
Finance Director’s authorization prior to Council approval.
Staff requests City Council approval for the purchase of the new e-shuttle bus from
Creative Bus Sales.
ALTERNATIVES CONSIDERED:
The City Council may elect to not accept the grant and related budget adjustment. This
option is not recommended, as it would eliminate the City’s ability to leverage this grant
funding to modernize its fleet.
FISCAL REVIEW:
Acceptance of the grant requires a budget adjustment recognizing (601-19500-50920)
and appropriating (601-19500-50920) $159,985.41 in VW Mitigation Trust grant funding
to purchase a new electric shuttle bus.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approves it as to form.
CITY COUNCIL GOALS & PRIORITIES:
This item meets the following City Council goal:
Goal 4: Maintain and Enhance the City’s Infrastructure, Facilities, Equipment and
Technology.
CONCLUSION:
1. Accept a grant for $159,985.41 from San Joaquin Valley Unified Air Pollution
Control District, administrator of Volkswagen (VW) Mitigation Trust Funds for
Zero-Emission Transit, School and Shuttle Bus Project.
2. Approve a budget adjustment appropriating the $159,985.41 for the purchase of
a new electric shuttle bus.
3. Authorize the purchase of a new e-shuttle from Creative Bus Sales, 14740
Ramona Avenue, Chino, CA 91710, for $159,985.41.
4
SALEM AFEWORKI RAJA SETHURAMAN
Energy and Sustainability Services
Manager
Public Services Director
CAROL MOLINA KIMBERLY HALL BARLOW
Finance Director City Attorney
ATTACHMENTS: 1
2
3
Resolution No. 2020-43
Funding Agreement
Creative Bus Sales Quote
RESOLUTION NO.2020-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, AUTHORIZING THE PUBLIC SERVICES DIRECTOR TO MAKE
APPLICATION FOR, TO SIGN CERTAIN ASSURANCES, AND TO ADMINISTER
GRANT FUNDS WITH RESPECT TO APPLICATIONS FOR LOCAL, STATE AND
FEDERAL PROGRAMS, PROJECT OR GRANTS FUNDED THROUGH THE
VOLKSWAGEN ENVIRONMENTAL MITIGATION TRUST, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE ANY DOCUMENTS AND AGREEMENTS
NECESSARY FOR THE RECEIPT OF THE VEMT FUNDS AND THE PURCHASE OF
ANY VEHICLES USING THE VEMT FUNDS
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, several local, state and federal programs allow public and non-profit
transportation providers to apply for administration, capital, and operation assistance
programs or grants; and
WHEREAS, the Volkswagen Environmental Mitigation Trust (VEMT) provides
about $423 million for California to mitigate the excess nitrogen oxide (NOx) emissions
caused by Volkswagen's use of illegal emissions testing defeat devices in certain
Volkswagen diesel vehicles; and
WHEREAS, the VEMT has $130 million in funds to replace older, high -polluting
transit, school, and shuttle buses with new battery -electric or fuel -cell buses; and
WHEREAS, funds from the VEMT are administered through the San Joaquin
Valley Air Pollution Control District (SJVAPCD) and the California Air Resources Board
(CARB); and
WHEREAS, the City is required to authorize an individual, by resolution, as the
"Authorized Individual" to make application for, to sign required assurances for, and to
administer VEMT funds with respect to applications for local, state and federal programs,
projects or grants.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Section 1. The City Council authorizes the Public Services Director to make
application for, to sign required assurances, and to administer the Volkswagen
Resolution No. 2020-43 Page 1 of 3
Environmental Mitigation Trust funds with respect to applications for local, state and
federal programs, projects or grants on behalf of the City.
Section 2. The City Council authorizes the City Manager to execute any
documents and agreements necessary for the receipt of the VEMT funds and the
purchase of any vehicles using the VEMT funds.
PASSED AND ADOPTED this 21st dpty of July, 2020.
T
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Kafrin4 INley, Mayor
ATTEST:
qw&- --
Brenda Green, City Clerk
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APPROVED AS TO FORM:
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Kimberly Nall Barlow, City Attorney
Resolution No. 2020-43 Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2020-43 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 21 st day of July, 2020, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENTS, MANSOOR, MARK, REYNOLDS,
STEPHENS, AND FOLEY
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 22"d day of July, 2020.
.QY& .,�. m-
Brenda Green, ity Clerk
Resolution No. 2020-43 Page 3 of 3
G-96390-A1 Volkswagen Mitigation Trust Fund
April 2020
1
Agreement G-96390-A1
_________________________
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT
Volkswagen Mitigation Trust Fund Transit Bus
FUNDING AGREEMENT
_________________________
This Agreement, made this ______ day of ____________, _______, between the San
Joaquin Valley Unified Air Pollution Control District (“District”) and City of Costa Mesa
(“Participant”).
RECITALS:
WHEREAS, the Zero-Emission Transit, School and Shuttle Bus Project (“the
Project”) is one of the eligible projects included in California’s Beneficiary Mitigation
Plan, developed to summarize how the State of California plans to use the VW
Mitigation Trust Funds allocated under the Environmental Mitigation Trust that resulted
from the Volkswagen “defeat device” settlement; and
WHEREAS, past and future excess NOx emissions emitted from Volkswagen
vehicles are intended to be mitigated, in part, by the Zero-Emission Transit, School and
Shuttle Bus Project, which also assists in furthering the State’s long-term goals; and
WHEREAS, the Zero-Emission Transit, School and Shuttle Bus Project provides
funding to be used toward the purchase of new zero-emission replacement buses for
owners of transit, school, and shuttle buses, to mitigate excess NOx emissions, reduces
pollution in disadvantaged and low-income communities, supports advanced technology
vehicle and equipment deployments and accelerates the zero-emission transformation
of the heavy-duty fleet; and
WHEREAS, the District is the Project Administrator for using VW Mitigation Trust
Funds to replace eligible used transit, school, and shuttle buses throughout the State in
accordance with the Project Agreement and Volkswagen Mitigation Trust Fund
Implementation Manual; and
WHEREAS, Participant has submitted an application for funding under the
Project, attached hereto and incorporated herein as Exhibit A; and
WHEREAS, Participant has reviewed and is familiar with the Program
Guidelines, attached hereto and incorporated herein as Exhibit B, and agrees to
adhere to them; and
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2021 13th January
G-96390-A1 Volkswagen Mitigation Trust Fund
April 2020
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NOW, THEREFORE, based on their mutual promises, covenants, and
conditions, the parties hereby agree as follows:
1. PROJECT
The purpose of this Agreement is to provide incentives to Participants in the
Volkswagen Environmental Mitigation Trust. Under this program, District provides cash
incentives to be used toward the purchase of new zero-emission replacement buses.
Participant shall receive Project funding from the VW Mitigation Trust Fund,
administered by District, to be applied towards the purchase of a new, Project -eligible
electric transit replacement bus (hereinafter the “new bus”), to replace Participant’s
current internal combustion engine transit bus (hereinafter the “current bus”), for use
primarily within the state of California. Participant has agreed to undertake such
participation through their submission of their application, attached hereto and
incorporated herein as Exhibit A.
2. DESCRIPTION OF VEHICLE(S)
A. Funding under this Agreement shall be utilized by Participant for the purchase of
the following new electric Replacement; hereinafter the “new bus;” to replace
Participant’s current Replacement; hereinafter the “current bus.” Specifications
for the current bus and the new bus, including the specifications for the motor,
are identified in Exhibit B, attached hereto and incorporated herein.
B. No payment shall be made toward the new replacement bus other tha n as listed
in § 2.A.
C. Participant agrees that the current bus as listed in Exhibit B, as the vehicle to be
replaced, will be permanently removed from operation, dismantled and reported
to the California Department of Motor Vehicles (DMV) as a dismantle d bus.
Definition of “dismantle” for the purpose of this Agreement, is as follows: to
punch, crush, stamp, hammer, shred, or otherwise render permanently
and irreversibly incapable of functioning as originally intended, any vehicle
or vehicle part.
3. OBLIGATIONS OF DISTRICT
A. District shall provide up to $159,985.41 of VW Mitigation Trust Funds to
Participant for the purchase of one (1) new bus as indicated in § 2.A, and not to
exceed the funding levels specified in the Guidelines, attached hereto and
incorporated herein as Exhibit C.
B. District shall make payment to Participant upon receipt and verification of a
properly supported Claim for Payment including itemized invoices.
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April 2020
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C. Funding shall only be allowed toward the purchase of the new bus described in §
2.A, which complies with the VW Mitigation Trust Fund and all program
requirements, which must be met for the full three (3) year Project
Implementation Phase.
D. Payment will be issued upon verification that the new bus is purchased and
program eligible including, but not limited to, verification that the new vehicle is
California Highway Patrol (CHP) safety certified (for school buses only), insured,
and operating.
4. AGREEMENT TERM
A. Project Completion Phase – Participant shall take delivery and place the new bus
into service within eighteen (18) months of the effective date of this Agreement,
as indicated on Page 1, Paragraph 1. This includes dismantling the current bus
and placement of the new replacement bus into service.
B. Claim for Payment Request for Reimbursement: Participant shall submit a
complete claim for payment request to be reimbursed for the purchase of the
new bus within eighteen (18) months of the effective date of this Agreement, as
indicated in Page 1, Paragraph 1. The claim for payment request must be made
through the VW Mitigation Trust Fund website at: http://vwbusmoney.valleyair.org
C. Project Implementation Phase – Participant shall own, operate, and maintain the
new electric bus according to the terms of this Agreement for a period of not less
than three (3) years from the date in which the new electric bus is first placed
into service. Participant agrees to cooperate with District in implementation,
monitoring, enforcement, and other efforts to assure the emissions benefits are
real, quantifiable, surplus, and enforceable.
D. If Participant cannot meet the eighteen (18) month Project Completion Phase,
Participant must notify District in writing with justification explaining why the
Project Completion Phase cannot be met. District will review the request and
determine, in its sole discretion, whether to amend the Agreement to a ccount for
Participant’s written request. Participant agrees to amend the Agreement as
necessary, if requested by District, to ensure the project is completed in a timely
manner. Though District agrees it will not unreasonably deny Participant’s
request, Participant understands that even with written justification; District does
not guarantee an amendment will be made to the Agreement to adjust Project
Implementation Phase, and expressly reserves the right to deny such request.
Participant may be subject to conditions in § 8 for noncompliance with Project
Completion Terms.
E. Participant will meet the following milestones unless prior arrangements have
been submitted to District and approved in writing:
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Purchase Order Milestone: A copy of the purchase order must be
submitted to District within ninety (90) days of the contract execution,
unless otherwise authorized by District.
Implementation Milestone: Entire project must be completed, and claim for
payment submitted, within eighteen (18) months of the date of contract
execution, unless otherwise authorized by District.
Date of Delivery Milestone: The estimated delivery date of the new bus.
Scrapping of Current Bus Milestone: Participant must scrap the current
bus within sixty (60) days of the receipt of the new bus by rendering the
current bus permanently and irreversibly incapable of functioning as
originally intended.
Annual Report Milestone: Participant must supply the requested report
information annually for a period of three (3) years from the date the ne w
bus is placed into service.
Record Retention Milestone: Participant must retain project documentation
for the contract term plus three (3) years after contract term .
Milestone Name Milestone Timeframe
Purchase Order Submitted within 90 days of contract execution
Implementation Completed within 18 months of contract
execution
Estimated Delivery Within 12 months of Purchase Order date
Current Bus Scrapping Within 60 days of receipt of new bus
Annual Report 12, 24, 36 months after new bus in service
Record Retention Six (6) years from contract execution
5. REPORTING
A. Participant affirms that the information reported on the current bus, as identified
is Exhibit B, is true and accurate.
B. Participant shall submit annual reports on new bus operation, annual miles
traveled, program participation rates, identified problems and proposed solutions,
maintenance and any other pertinent information requested by District on a form
to be provided to Participant by District. Participant must submit annual reports
each year for the duration of the Project Implementation Phase as described in §
4.C.
C. Annual reports are due at 12, 24, and 36 months after the date that the new bus
in this project is in service.
D. Noncompliance with the reporting requirements shall require on -site monitoring
by District personnel.
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E. District reserves the right to monitor and enforce the terms of this Agreement at
any time during the Project Implementation Phase as described in § 4.C and for
a period of three (3) years after.
6. OBLIGATIONS OF PARTICIPANT
A. Participant shall purchase the new bus specified in § 2.A and indicated in Exhibit
B. It is the responsibility of Participant to ensure the new bus purchased through
this Agreement meets all program eligibility requirements. Participant must
ensure the new bus purchased through this Agreement adheres to all the
requirements set forth in § 2.A. If Participant purchases a new bus that does not
meet program requirements, District may deny the disbursement of project funds.
B. If the new bus is a school bus, the new bus must undergo a CHP safety
certification inspection after its purchase and prior to transporting children.
C. The new bus shall be operated and maintained according to the manufacturer’s
specifications.
D. In the event Participant does not complete the three (3) year Project
Implementation Phase required by this Agreement, Participant shall refund to
District a pro-rated incentive amount.
E. If necessary, Participant shall obtain through other sources sufficient additional
funds to purchase the new bus specified herein.
F. In the event Participant cannot obtain sufficient funds to complete the purchase
of the new bus, District reserves the right to terminate this Agreement. In that
event, if requested by District, Participant shall return any District funds received.
G. All forms and documents necessary for the submission of the claim for payment
for reimbursement will be available at: http://vwbusmoney.valleyair.org.
Participant must submit all necessary forms and documents required for
reimbursement to District through the website at:
http://vwbusmoney.valleyair.org.
H. The following records are required for payments. No payments will be made until
the following documents are submitted to District:
The vendor delivers of the eligible replacement bus to Participant.
Participant dismantles the current bus through an approved dismantler.
District receives itemized invoices from Participant.
District receives proof that the current bus has been scrapped: the current
bus must be scrapped within 60 days of the receipt of the new bus and
proof of scrap must be provided before District can make any payments.
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District receives self-certification from Participant that match funds are not
either: (1) from funding sources where any portion of the resultin g NOx
reductions could be double counted, including but not limited to Carl
Moyer Program, AB923, and AB617; or (2) from the Hybrid and Zero
Emission Truck and Bus Voucher Incentive Project (HVIP).
Participant provides a copy of the Department of Motor Vehicle
registration for the new vehicle to District.
The documentation of the new vehicle and verification of the new vehicle
specifications have been provided to District.
(For school buses only) CHP has inspected the school bus and has
completed written documentation signifying that the school bus is safe to
operate with children aboard and the applicant has provided a copy of the
documentation to District.
I. Initial Reporting by Participant will include, but is not limited to:
Current bus information,
New bus information,
Funding information (including match funding amounts and sources),
Selected applicant information, and
Supporting documentation needed such as engine serial numbers, data
tag photos, etc.
J. Participant must complete the Disclosure of Funds form, self-certifying that match
funds are not either: (1) from funding sources where any portion of the resulting
NOx reductions could be double counted, including but not limited to Carl Moyer
Program, AB923, and AB617; or (2) from the Hybrid and Zero Emission Truck
and Bus Voucher Incentive Project (HVIP).
K. Participant must scrap the current bus with a VW Mitigation Trust Fund approved
dismantler within sixty (60) days of the receipt of the new bus by rendering the
current bus permanently and irreversibly incapable of functioning as originally
intended. VW Mitigation Trust Fund approved dismantlers can be found at:
http://vwbusmoney.valleyair.org.
L. Payment for Scrap: Income for scrap is not allowed. District will allow Participant
to receive payment for scrap under the following conditions:
Participant provides to District the receipt for any scrap payment showing
the amount of funds received from the dismantler.
District will reduce the VW Mitigation Trust Funds awarded to Participant
by the scrap payment amount if the scrap amount, plus VW Mitigation
Trust Funds amount, plus match exceeds the new bus purchase price.
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District and Participant will retain documentation of any scrap payment as
part of the project record.
M. Participant agrees to maintain the new bus per the manufacturer’s specifications.
N. District shall only reimburse Participant for project costs incurred on or after the
date of execution and subject to the provision limits in Project Expenditure
Limitations Section of the VW Mitigation Trust Fund Guidelines. Funds will be
disbursed within 30 days of District’s receipt and approval of all required
documentation.
7. GENERAL CONDITIONS
A. Participant agrees that as of the date of execution of this Agreement, it has not
yet purchased and/or received delivery of the new bus.
B. Participant agrees that, for the three (3) year Project Implementation Phase plus
three (3) years, District shall be allowed upon request to inspect the new
replacement bus and/or records relating to the new bus including but not limited
to those listed in Exhibit C.
C. Participant agrees that the gross vehicle weight rating of the new bus shall be
14,001 pounds or greater.
D. Participant agrees that the new bus shall, by a test method approved by the
United States Environmental Protection Agency (US EPA) or the California Air
Resources Board (CARB), be new and certified for sale in California, or under an
experimental permit for operation in California, and must be a part of the Hybrid
and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) eligible
vehicle catalog, unless previously approved in writing by District and CARB. The
new bus shall meet or exceed said requirements.
E. Participant agrees and represents that the new bus will operate primarily within
the state of California and shall remain so for the three (3) year Project
Implementation Phase.
F. Participant acknowledges that they are prohibited from making or allow any
modifications to the vehicle’s emissions control systems, hardware, or software
calibrations, (Vehicle Code Section 27156), and not install any combustion
source such as a fuel fired heater.
G. Participant waives all rights to any emission reduction credits that may accrue as
a result of purchase of the new bus. Any such potential credits shall be the sole
property of the VW Mitigation Trust Fund.
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H. If Participant intends to sell or transfer ownership of the new bus in this
Agreement during the three (3) year Project Implementation Phase specified in
paragraph 4(C), Participant must notify and receive approval from District prior to
the sale or transfer of the new bus. In the event Participant sells or transfers
ownership of said new bus to a buyer outside of the state of California during the
three (3) year Project Implementation Phase specified in paragraph 4(BC),
Participant shall return, if requested by District, pro-rated incentive funds to
District.
I. District reserves the right to reduce the incentive amount if it is determined that
the actual costs paid by Participant are less than the costs indicated on the
Application, as indicated in Exhibit A and Exhibit B, or if the incentive amount
exceeds the funding levels specified in the Guidelines, as identified in Exhibit C.
Additionally, District reserves the right to disallow certain ineligible costs
submitted on the Claim for Payment and thereby reduce the incentive amount. A
determination of cost eligibility will be at the sole discretion of District.
J. Participant agrees that the project will comply with the Volkswagen
Environmental Mitigation Trust Fund Guidelines and shall meet all program
requirements for the three (3) year Project Implementation Phase of the
Agreement, all of which are incorporated herein by reference.
K. For projects involving installation or construction of infrastructure, Participant
agrees that only licensed professionals will be used to perform services under
this Agreement where such services are called for and licensed professionals are
required for those services under state law.
L. If applicable, Participant agrees to be bound by all the provisions of State Labor
Code Section 1771 regarding prevailing wages. If applicable, Participant shall
monitor all services subject to reimbursement from this Agreement to ensure that
the prevailing wage provisions of State Labor Code Section 1771 are being met.
M. Participant shall be responsible for work and for persons or entities engaged in
work, including, but not limited to, contractors, subcontractors, suppliers, and
providers of services. Participant shall be responsible for any and all disputes
arising out of its contracts for work funded by this Agreement, including, but not
limited to, payment disputes with contractors, sub contractors, and providers of
services. District will not mediate disputes between Participant and any other
entity concerning responsibility for performance of work.
8. REPERCUSSIONS FOR NONPERFORMANCE
A. Participant must operate the new bus purchased through this Agreement
according to the terms of the Agreement and cooperate with District and CARB in
implementation, monitoring, enforcement, and other efforts to assure the
emission benefits are real, quantifiable, surplus, and enforceable.
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B. Repercussions for noncompliance with the requirements, terms, and conditions
set forth in this Agreement shall result in, including but not limited to, District
cancelling the Agreement with Participant and recapturing project funds in
proportion to any loss of emissions reductions as agreed to in this Agreement.
C. District and CARB have authority to seek any remedies available under the law
for noncompliance with VW Mitigation Trust Fund requirements and
nonperformance with the Agreement. District may consider unforeseen
circumstances beyond Participant’s control in determining repercussions for
nonperformance.
D. CARB, as an intended third party beneficiary, reserves the right to enforce the
terms of this Agreement at any time during the contract term to ensure emission
reductions are obtained.
9. INDEPENDENT CONTRACTOR
In performance of the work, duties, and obligations assumed by Participant under this
Agreement, it is mutually understood and agreed that Participant, including any and all
of Participant’s officers, agents, and employees, shall act in an independent capacity
and not as an officer, agent, servant, employee, joint venture, partner, or associate of
District.
10. INSURANCE
Participant shall insure the new bus in an amount not less than the full replacement value
of the bus and provide satisfactory evidence of such insurance to District. The evidence
shall be provided at the time of claim and with the annual report through the full three (3)
year Implementation Phase of this Agreement.
11. FUNDING OUT
The terms of this Agreement and the services to be provided hereunder are contingent
on the approval and receipt of funds by the appropriating government agency. Should
sufficient funds not be allocated, the services provided may be modified or t his
Agreement terminated at any time by giving Participant thirty (30) days’ prior written
notice.
12. NON ASSIGNMENT
Neither party shall assign, transfer, or subcontract this Agreement, nor their rights or
duties under this Agreement, without the prior express, written consent of the other
party.
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13. TERMINATION
District may immediately suspend or terminate this Agreement, in whole or in part, or
withhold payment where District determines there is:
A. An illegal or improper use of funds;
B. A failure to comply with any term of this Agreement; or
C. A substantially incorrect or incomplete report submitted to District.
In no event shall any payment by District constitute a waiver by District of any breach of
this Agreement or any default that may then exist on th e part of Participant. Neither
shall such payment impair or prejudice any remedy available to District with respect to
the breach or default. District shall have the right to demand of Participant the
repayment to District of any funds disbursed to Participant under this Agreement that, in
the judgment of District, were not expended in accordance with the terms of this
Agreement. Participant shall promptly refund any such funds upon demand. In addition
to immediate suspension or termination, District may im pose any other remedies
available by law, in equity, or otherwise specified in this Agreement.
14. INDEMNIFICATION
Participant agrees to indemnify, defend and hold harmless the District, State and CARB
and their respective officers, employees, agents, representatives, and successors in
interest against any and all liability, loss, and expense, including reasonable attorneys’
fees, from any and all claims for injury or damages arising out of the performance by
Participant, and/or out of the operation of equipment that is purchased with trust funds.
15. RECORD KEEPING
Participant shall maintain records sufficient to provide, on an annual basis for the full
term of this Agreement, information regarding annual mileage, fuel usage, general
maintenance details, and any other available information that may be deemed pertinent
to the evaluation of the program. Participant shall agree to maintain such records for
possible audit for a minimum of the Agreement term plus three (3) years. Participant
shall agree to allow the auditor(s) access to such records during normal business hours
and to allow interviews of any employees who might reasonably have information
related to such records. Further, Participant agrees to include a similar right to the State
and CARB to audit records and interview staff in any subcontract related to performance
of the Agreement. This includes the right to review and to copy any records and
supporting documentation pertaining to the performance of the Agreeme nt – this
includes programmatic and fiscal records and documentation.
On-going Recordkeeping and Reporting will include:
Participant must supply the required information annually and for three (3)
years after contract term, including:
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The new bus mileage at 12, 24, and 36 months after date the new bus is
in service,
Self-certify that the bus is still owned by Participant, and
Self-certify that the bus is still in operation in California.
16. AVAILABILITY OF DATA
District will make project documentation, records, reports, and other material available
to CARB upon request and as needed to respond to legislative inquiries. District will
make data summaries available to the public in response to data requests.
17. NOTICES
The persons and their addresses having authority to give and receive notices under this
Agreement are as follows:
PARTICIPANT DISTRICT
Lori Ann Farrell Harrison
City Manager
77 Fair Drive
Costa Mesa, CA 92626
Samir Sheikh
Executive Director/APCO
1990 E. Gettysburg Avenue
Fresno, California 93726
Any and all notices between District and Participant provided for or permitted under this
Agreement or by law shall be in writing and shall be deemed duly served when
personally delivered to one of the parties, or in lieu of such personal service, when
deposited in the United States mail, postage prepaid, addressed to such party.
18. CONFLICT OF INTEREST
No officer, employee, or agent of District who exercises any function or responsibility
for planning and carrying out the services provided under this Agreement shall have any
direct or indirect personal financial interest in this Agreement. Participant shall comply
with all federal and state conflict of interest laws, statutes, and regulations, which shall
be applicable to all parties and beneficiaries under this Agreement and any officer,
agent, or employee of District.
19. GOVERNING LAW
This Agreement shall be governed in all respects by the laws of the State of California.
Venue for any action arising out of this Agreement shall on ly be in Fresno County,
California.
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20. COMPLIANCE WITH LAWS
Participant shall comply will all federal and state laws, statutes, regulations, rules, and
guidelines which apply to its performance under this Agreement, including California
driving eligibility and financial liability laws.
21. TIME IS OF THE ESSENCE
It is understood that for Participant’s performance under this Agreement, time is of the
essence. Participant will, to the reasonable satisfaction of District, complete all activities
provided herein within the time schedule outlined in this Agreement, provided that
Participant is not caused unreasonable delay in such performance. District reserves the
right to cancel the Agreement if the owner does not execute it in a timely manner.
22. ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement between Participant and District with
respect to the subject matter hereof and supersedes all previous negotiations,
proposals, commitments, writings, advertisements, publications, and understandings of
any nature whatsoever unless expressly included in this Agreement.
23. MODIFICATION
Any matters of this Agreement may be modified from time to time by the written consent
of all the parties without in any way affecting the remainder.
24. NO FINANCIAL THIRD-PARTY BENEFICIARIES
Notwithstanding anything else stated to the contrary herein, it is understood that
Participant’s services and activities under this Agreement are being rendered only for
the benefit of District, and no other person, firm, corporation, or entity shall be deemed
an intended financial third-party beneficiary of this Agreement.
25. SEVERABILITY
In the event that any one or more of the provisions contained in this Agreement shall for
any reason be held to be unenforceable in any respect by a court of competent
jurisdiction, such holding shall not affect any other provisions of this Agreement, and
the Agreement shall then be construed as if such unenforceable provisions are not a
part hereof.
26. AUDIT
District reserves the right to audit and enforce the terms of this Agreement at any time
during the agreement term plus three (3) years. Additionally, District shall be permitted
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to inspect the project equipment during the entire Agreement term plus three (3) years
and as long as it is still in use after the Agreement term.
27. FORCE MAJEURE
Neither District nor Participant shall be liable for or deemed to be in default for any delay
or failure in performance under this Agreement or interruption of services resulting,
directly or indirectly, from acts of God, enemy or hostile governmental action, civil
commotion, strikes, lockouts, labor disputes, fire, or other casualty, etc.
28. NON-DISCRIMINATION
During the performance of this Agreement, Participant and its contractors shall not
unlawfully discriminate against, harass, or allow harassment against any employee or
applicant for employment because of sex, race, religion, color, national origin, ancestry,
disability, sexual orientation, medical condition, marital status, age (over 40) or allow
denial of family-care leave, medical-care leave, or pregnancy-disability leave.
Participant and its contractors shall ensure that the evaluation and treatment of their
employees and applicants for employment are free of such discrimination and
harassment.
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PARTICIPANT
City of Costa Mesa
___________________________
Lori Ann Farrell Harrison
City Manager
DISTRICT
San Joaquin Valley Unified Air Pollution
Control District
___________________________
Craig Pedersen
Governing Board Chair
Recommended for approval:
San Joaquin Valley Unified Air
Pollution Control District
____________________________
Samir Sheikh
Executive Director/APCO
Approved as to legal form:
San Joaquin Valley Unified Air Pollution
Control District
_________________________________
Annette A. Ballatore
District Counsel
Approved as to accounting form:
San Joaquin Valley Unified Air Pollution
Control District
_________________________________
Mehri Barati, C.P.A.
Director of Administrative Services
For accounting use only:
San Joaquin Valley Unified Air Pollution
Control District
Program:___________________
Account No.:________________
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EXHIBIT A
COPY OF APPLICATION
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Applicant Information
1.Applicant Type:
2.Applicant Name (as it will appear on the contract and IRS W9):
3.Physical Address:
4.City:5.State:6.ZIP Code:
7.Mailing Address (if different from above):
8.City:9.State:10.ZIP Code:
11.County of Operation:
Primary Contact Information
1.First Name:2.Last Name:
3.Title:4.E-Mail:
5.Phone Number:6.Alternate Contact Number:7.Fax Number:
Agreement Signing Authority
1.First Name:2.Last Name:
3.Title:4.E-Mail:
5.Phone Number:6.Alternate Contact Number:7.Fax Number:
12. Tax ID
Project No.
Received Date/Time:
EXHIBIT A
City of Costa Mesa
77 Fair Drive
Costa Mesa CA 92626
Orange
Ruben Salas
Fleet Supervisor ruben.salas@costamesaca.gov
(714) 327-7481 (714) 327-7473 (714) 327-7556
Raja Sethuraman
Director of Public Services Raja.sethuraman@costamesaca.gov
(714) 754-5343
Zero-Emission Shuttle Bus Application
G-96390
95-600-5030
6/17/2020 5:29 PM
Government
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Application
Page 2 of 4
Existing Old Bus Information
1.Bus Identification Number:
2.Bus Storage Address:
3.City, State, Zip Code:
4.Total Mileage:5.Annual Mileage for the Bus:
6.Percent of Miles Traveled within CA:7.Bus Make:
8.Bus Model:9.Bus Model Year:
10.Gross Vehicle Weight Rating (GVWR):11.Vehicle Identification Number (VIN):
12.License Plate Number:
13.Bus Type:
Engine Information
1.Engine Make:2.Engine Model:
3.Engine Model Year:4.Horsepower:
5.Engine Serial Number:
6.EPA-Certified Family Name (e.g., XCEXH0123MAH):7.Two Stroke Engine:
8.Displacement:9.Fuel Type:
10.If this has a retrofitted DPF, please list the DPF make, model and serial number:
EXHIBIT A
219
2300 Placentia Avenue
Costa Mesa, CA 92627
303811 7949
100.0 Ford E450
El Dorado 2007
14500 1FDXE45S76DB32672
1253268
Flexible-route paratransit
Ford Triton V-10
2007 362
N/A
6FMXH06.8EH5
N/A N/A N/A
Gasoline
No
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Application
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New Electric Bus Information
1.New Bus Make:2.New Bus Model:
3.New Bus Model Year:4.GVWR:
5.New Bus Type:
6.Range of Electric Bus (in Miles):7.Total Cost of New Bus:
Proposed New Electric Motor Information
1.Motor Make:2.Motor Model:
3.Motor Model Year:4.Horsepower:
5.EPA-Certified Family Name (e.g., XCEXH0123MAH):
Electric Bus Charging Station
1.Do you require charging station installation or upgrades to support this bus?
New Electric Bus Dealer Information
1.Dealership Name:
2.Address:
3.City:4.State:5.Zip Code:
6.Contact Name:7.Contact E-Mail:
8.Contact Phone Number:9.Contact Fax Number:
10.May we share your project information directly with the Dealer? Yes or No
EXHIBIT A
Ford E450 Micro Bird D- Series / 18 Passenger w/ Wheel chair lift
2020 14500
Flexible-route paratransit
100 80000.0
Borg-Warner Remy Borg-Warner
2019 215
Unknown
Yes
A-Z Bus Sales, Inc.
1900 South Riverside Avenue
Colton CA 92324
Ashley Huff ahuff@a-zbus.com
(800) 437-5522
Yes
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Signature Form
Signing Authority
Certifications
By signing this Certifications form, I certify that I have read and understand the Eligibility Criteria and Application
Guidelines document and agree to adhere to its requirements. Additionally, by signing this Certifications form, I
certify to the statements and agree to adhere to the terms and conditions described below:
1.The emission reductions obtained through this program are not required by any federal, state, or local
regulation, memorandum of agreement/understanding (MOA/MOU) with a regulatory agency, settlement
agreement, mitigation requirement, or other legal mandate.
2.Projects funded by VW Mitigation Trust Funds will not be used as marketable emission reduction credits, to
offset any emission reduction obligation, or for credit under any federal or state emission averaging,
banking and trading program. In addition, projects funded through this program may not be used to
generate a compliance extension or extra credit for determining regulatory compliance.
3.Proposed project has not received funding or is not under agreement with any other air district, ARB, or any
other public agency. Any current financial incentive that directly reduces the project cost; including tax
credits or deductions, grants, or other public financial assistance for the same engine or equipment; must be
disclosed.
4.Any funding received, including funding from other sources, combined with this grant must not exceed the
full cost of the new bus.
5.The bus within this application is based within the state of California and operate within the state of
California for at least three (3) years from the date the new bus is purchased, unless prior written
authorization has been granted by the SJVAPCD to travel outside of the state of California.
6.During the previous 24 months, at least 51% of the total usage of this bus was within California.
7.Bus identified in this application is currently in compliance with any State of California regulations.
8.Applicant understands the VW Mitigation Trust Project Administrator (SJVPACD), CARB, or their designee
maintains the right to inspect the bus at any time during the agreement period.
9.Applicant will not order, purchase, make payment, or take delivery of the new bus without an executed
agreement from the VW Mitigation Trust Funds.
I hereby certify that all information provided in this application and any attachments are true and correct to the best
of my knowledge.
Signing Authority Signature Date
EXHIBIT A
6/17/2020Raja Sethuraman
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Exhibit B
DESCRIPTION OF VEHICLE
G-96390-A1
City of Costa Mesa
Current Bus New Bus
Make: Ford Ford E Series
Model: E450 Starcraft Allstar
Phoenix 22'
VIN: 1FDXE45S76DB32672
Year: 2007 2016
Fleet ID: 219
Current Engine New Engine
Make: Ford Phoenix E200
Model: Triton V-10 EM4
Serial #: 6C2E-9C485-NVC
Year: 2006 2019
HP: 305 200
GVWR: 14,050 14,500
EPA Family Name: 6FMXH06.8EH5 KPMO2VOCV000
Fuel: GS ELECTRIC
Equipment Usage
Average Annual Mileage: 7,949
Geographic Area: Orange
Project Life (reporting length): 3
Estimated Eligible Cost1 Grant Amount 2, 3
$159,985.41 $159,985.41
1 Estimated Total Cost may differ from the final invoice amount.
2 Grant amount cannot exceed the funding levels specified in the Guidelines (Exhibit C)
3 Funding amounts for non-government owned transit, school, and shuttle buses must not exceed 75 percent
of project costs
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EXHIBIT C
Volkswagen Mitigation Trust Fund Guidelines
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Volkswagen Mitigation Trust Fund Guidelines
Zero-Emission Transit, School and Shuttle Bus Project Table of Contents
I. Project Overview ........................................................................................ 1
II. Project Requirements ................................................................................ 1
A. Application Requirements .......................................................................... 1
B. Eligible Applicants ...................................................................................... 2
C. Requirements for the Old Bus .................................................................... 2
D. Requirements for the New Bus .................................................................. 3
E. Project Expenditures .................................................................................. 3
F. Project Expenditure Limitations ................................................................. 4
G. Match Funding (Co-Funding) ..................................................................... 5
H. Payment for Scrap ..................................................................................... 5
L. Vehicle Purchasers .................................................................................... 6
M. Resale of Vehicles ..................................................................................... 8
N. Vehicle Leasing or Rental Agencies .......................................................... 9
III. Project Non-Performance .......................................................................... 9
I. Table of Figures
Table 1: Maximum Funding Expenditures per Bus .......................................................... 4
Table 2: Maximum-Funding Expenditures per Entity, per Installment ............................. 4
Table 3: Processing Flow Chart ...................................................................................... 6
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Volkswagen Mitigation Trust Fund
Guidelines
Zero-Emission Transit, School and Shuttle Bus Project
I. Project Overview
The Zero-Emission Transit, School and Shuttle Bus Project provides funding for new
zero-emission replacement buses for owners of transit, school, and shuttle buses. This
project mitigates excess NOx emissions, reduces pollution in disadvantaged and
low-income communities, supports advanced technology vehicle and equipment
deployments and accelerates the zero-emission transformation of the heavy-duty fleet.
Applicants will complete the application and meet the other requirements of the project
such as submitting required documentation, scrapping the old vehicle, and complying
with reporting requirements.
II. Project Requirements
A. Application Requirements
1. Applications: The applicant for transit, school and shuttle buses must apply
through the online application portal for each individual bus.
2. Statewide: Applications must be submitted for each individual bus through the
web based application portal from entities that own buses domiciled in California
and operate primarily within the state of California.
a. Applicants must receive prior written authorization from the SJVAPCD for
new buses that will travel outside of the state of California at any time
during their contract life.
3. First come, first served: Applications will be selected on a first come, first
served basis based off a complete and eligible application per bus, subject to the
maximum funding expenditures per Entity specified in Table 2: Maximum-
Funding Expenditures per Entity
4. Authorization for submittal: Applicants must obtain authorization for the
submittal of the applications and identification of the individual authorized to
implement the bus purchase project.
5. Multiple buses allowed: Applicants must submit a separate application for
each individual bus to be replaced.
6. Prior Purchases: Applicants must not purchase, make down payments,
become financially committed, or take possession of the new replacement bus
under funding consideration prior to the issuance of a completely executed
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contract that is signed by all parties – doing so will render the project ineligible.
a. A fully refundable deposit is allowed, as long as it is clearly stated that the
deposit is fully refundable
7. Information for reports: Applicants must include information needed to fulfill
the reporting requirements in Project Reporting
8. Information to determine eligibility: Applicants must submit required
documentation to determine eligibility of the applicant and of the old bus.
B. Eligible Applicants
1. Eligible Applicants are owners of transit buses, school buses and shuttle buses.
2. Indian Tribes are eligible for this program. In addition, Indian Tribes Beneficiaries
(i.e., for federally-recognized Indian Tribes) have entered into their own
Environmental Mitigation Trust Agreement. For more information, please visit the
Volkswagen Diesel Emissions Environmental Mitigation Trust site at:
https://www.vwenvironmentalmitigationtrust.com/tribe-trust
3. Agencies that are the lessors that lease or rent applicable transit, school and
shuttle buses to third parties may apply, however, additional requirements must
be met. These requirements are specified in Vehicle Leasing or Rental Agencies
C. Requirements for the Old Bus
1. Only buses with internal combustion engines are eligible
2. Fuel type of the old bus can be gasoline, diesel, or compressed natural gas
(CNG), or propane.
3. Engine Model Year of the old school bus must be 2006 or older
4. Engine Model Year of the old transit or shuttle bus must be 2009 or older
5. Gross Vehicle Weight Rating (GVWR) must be 14,001 pounds or greater
6. Current California Highway Patrol (CHP) certification for school buses is required
7. All old school buses may be eligible regardless of their compliance with the Truck
and Bus Regulation. However, noncompliant school buses are subject to
additional funding limitations specified in Project Expenditure Limitations
8. Compliance with the Truck and Bus Regulation must be submitted with the
application. Acceptable documentation includes, but is not limited to, any of the
following:
a. Invoice(s) for the purchase of the Diesel Particulate Filter (DPF) and its
installation on the old bus specified on the application.
b. Pictures of the DPF on the bus engine specified on the application. The
pictures must be able to identify both the DPF and the old bus.
c. CHP 292 school bus safety inspection of the installed DPF on the old bus
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specified on the application.
d. Compliance certificate from CARB TRUCRS database.
D. Requirements for the New Bus
1. Zero emission: Hydrogen fuel cell and battery electric-powered vehicle
technologies are eligible projects. Eligible buses must be listed as an Eligible
Vehicle for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive
Project (HVIP) and listed on the HVIP website at www.californiahvip.org/.
SJVAPCD may consider other zero emission technologies for eligibility on a case
by case basis, subject to approval by the California Air Resources Board
(CARB).
2. New Vehicle: The vehicle must be a new vehicle as defined in California
Vehicle Code Section 430.
3. Not converted: SJVAPCD and CARB does not consider a new vehicle to be a
new chassis that has been converted with aftermarket parts or equipment to
create a zero-emission vehicle, unless the completed zero emission vehicle has
obtained CARB new vehicle certification. Eligible vehicles (and vehicle chassis)
must be new and not yet have been registered in any state or paid for by the
purchaser (other than a vehicle down payment). Used vehicles (including
vehicles used by dealers, manufacturers, or other entities or for demonstration
purposes) are not eligible.
4. GVWR 14,001 pounds or greater: Zero-emission vehicle makes/models must
be 14,001 pounds GVWR or greater.
5. CARB certified: The manufacturer must have obtained CARB
approval/certification of the vehicle model.
6. HVIP eligible: Stacking VW Mitigation Trust Funds with HVIP funds is prohibited.
For additional information regarding match funding, please see section Match
Funding
7. CHP certification: Current CHP 292 certification is required for the new school
bus.
E. Project Expenditures
1. Eligible Costs: Eligible costs include purchase price and taxes for new eligible
buses.
2. Maximum Project Funding Expenditures: Listed in Table 1: Maximum Funding
Expenditures per Bus.
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Table 1: Maximum Funding Expenditures per Bus
New Bus Maximum Funding Level
Battery Electric Transit bus $180,000
Fuel Cell Transit bus $400,000
Electric School bus (replacing a compliant old bus) $400,000
Electric School bus (replacing a non-compliant old bus) $380,000
Electric Shuttle bus $160,000
F. Project Expenditure Limitations
1. Entity Funding Limitation: The maximum funding expenditures per Entity, as
determined by Tax Identification Number, is $3,250,000.
a. If insufficient applications are received to expend trust funds, SJVAPCD
reserves the right to issue additional contracts beyond the above stated
limit.
Table 2: Maximum-Funding Expenditures per Entity, per Installment
Entity Maximum Funding Level
Determined by Tax ID $3,250,000
2. Category Funding Limitation: Of the three bus categories – transit, school
bus, and shuttle – funding for a single bus category must not exceed 50 percent
of the available VW Mitigation Trust Funds, including earned interest, in each
installment.
3. Equipment Options: While not specifying any particular ineligible equipment
options, SJVAPCD reserves the right to deny reimbursement for non-standard
accessories and equipment considered excessive peripheral costs. The
applicant may still choose to purchase these options, however, they are not
eligible for reimbursement nor will they be used in the calculation of the
limitations of funding amounts specified below.
4. Bus Funding Limitation: Funding amounts for buses must not exceed actual
project costs.
5. Non-government owned limitation: Funding amounts for non-government
owned transit, school, and shuttle buses must not exceed 75 percent of project
costs.
6. Non-Compliant School Bus: For school buses that are not compliant with the
CARB Truck and Bus Regulation, the maximum funding amounts will be reduced
by $20,000 to account for the cost of compliance through the purchase of a DPF.
7. Multiple Funds Limitation: Selected applicants may not receive more funds
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than the eligible project costs, whether funded solely with the VW Mitigation Trust
Funds or funded with multiple funding sources.
8. Leasing Limitations: Replacement bus owners can lease the buses purchased
using VW Mitigation Trust Funds to third parties, provided the following
requirements are met:
a. Lease agreement must be a minimum of 36 months
b. Lease agreements must contain program requirements, including, but not
limited to: requirements of the new bus, contract requirements, record
requirements, reporting requirements. Additional requirements can be
found in Section Vehicle Leasing or Rental Agencies
9. Returned VW Mitigation Trust Funds: The SJVAPCD must spend returned
trust funds on eligible projects, or return trust funds to the Trustee.
10. Unspent VW Mitigation Trust Funds: CARB Executive Officer or designee
reserves the right in his or her sole discretion to award any remaining unspent
trust funds to another Project Administrator or other mitigation projects.
G. Match Funding (Co-Funding)
Match funding from the applicant is encouraged and required for school bus purchases
(at least 5 percent) and all non-government owned purchases (at least 25 percent). For
school bus purchases, the cost of the required infrastructure for the new, replacement
bus is used to meet the required 5 percent match.
Match funding may include funding from other State, local, federal, non-profit, or private
revenue sources. Match funding may not include funding where any portion of the
resulting NOx reductions could be double-counted, including but not limited to Hybrid
and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), Carl Moyer
Program, AB923, and AB617.
The applicant must report all match funding amounts and sources to SJVAPCD prior to
contract and again during the reimbursement process.
H. Payment for Scrap
The selected applicant must scrap the old bus within 60 days of the receipt of the new
bus by rendering the old bus permanently and irreversibly incapable of functioning as
originally intended
Income for scrap is not allowed. SJVAPCD will allow a selected applicant to receive
payment for scrap under the following conditions
a. The selected applicant provides to the SJVAPCD the receipt for any scrap
payment showing the amount of funds received from the dismantler.
b. SJVAPCD will reduce the VW Mitigation Trust Funds award by the scrap
payment amount if the scrap amount, plus VW Mitigation Trust Funds
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amount, plus match exceeds the new bus purchase price.
c. SJVAPCD and the selected applicant will retain documentation of any
scrap payment as part of the project record.
Table 3: Processing Flow Chart
L. Vehicle Purchasers
1. Responsibilities for Vehicle Purchasers: The bus purchaser is responsible for
completing an application, executing a contract with SJVAPCD, complying with
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the terms of the contract, and obtaining funding for or paying the match portion of
the vehicle cost.
2. Requirements for Vehicle Purchasers: The bus purchaser must be an
individual, business, non-profit, or government entity that is based in California or
has a California-based affiliate. A bus leasing/rental agency based outside of
California is also eligible if the vehicle is leased/rented to an entity that will meet
all operational, reporting, and other applicable requirements.
3. Restriction for Vehicle manufacturers and Dealers: Vehicle manufacturers
and dealers may apply for no more than two vehicles in each installment. This
applies to vehicles the manufacturer produces and for vehicles the dealer makes
available for sale. Vehicle manufacturers and dealers will be required to provide
SJVAPCD and CARB additional information including, but not limited to,
manufacturing costs and dealer invoice or acquisition costs. If a vehicle
manufacturer or dealer chooses to purchase a vehicle they do not produce or
sell, then this condition will not apply.
4. Insurance Requirement: Maintain insurance as required by law. If an accident
or other cause destroys or otherwise renders permanently inoperable the
purchased vehicle, the bus purchaser must notify SJVAPCD within one week of
the occurrence. The written notification must provide proof that the funded
vehicle has become inoperable, including photographs of the inoperable vehicle
with license plates or other identifying markings, as well as any applicable
insurance or police documentation.
5. Expectation to Operate: SJVAPCD expects the vehicle to operate primarily in
California for three years after purchase.
6. Prohibition to Modify Vehicle: Not make or allow any modifications to the
vehicle’s emissions control systems, hardware, or software calibrations, (Vehicle
Code Section 27156), and not install any combustion source such as a fuel fired
heater.
7. Reporting Requirement: Submit annual activity reports for three years.
SJVAPCD requires the funded vehicle owner to complete activity reports.
SJVAPCD and CARB reserve the right to bar a fleet that does not provide timely
and accurate usage surveys/questionnaires as required from future project
participation.
8. Access to DMV Records: Allow CARB, SJVAPCD, or their designees to verify
the bus registration with the DMV for three years after initial registration.
9. Inspection Availability: Be available for follow-up inspection if requested by the
SJVAPCD, CARB, or designees.
10. Penalty for Falsifying Information: The bus purchaser is responsible for
ensuring the accuracy of the vehicle and purchaser information on the application
forms. SJVAPCD and CARB may consider submission of false information on
these forms a criminal offense, punishable under penalty of perjury under the
laws of the State of California.
DocuSign Envelope ID: ED84D8E7-D0A2-477B-AE9B-C9472DE35146
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11. Requirement to Maintain Records: Bus purchasers must keep written records
of the bus purchase for buses funded with mitigation trust funds – including the
vehicle invoice, proof of purchase, and DMV records – for the contract term plus
three years.
12. Requirement to Provide Records: A bus purchaser must provide SJVAPCD,
CARB, or its designees with all requested information related to any bus
purchased with mitigation trust funds within ten days of a written request for such
information. Requested information may include but is not limited to purchase
orders or agreements, vehicle payment information and related bank records,
and purchaser fleet information. SJVAPCD and CARB may require selected
applicants that submit false information to return the full mitigation trust fund
amount and may exclude them from future project participation. In addition,
SJVAPCD and CARB may pursue other remedies available under the law.
M. Resale of Vehicles
1. Notification of Intent to Resell: The original vehicle purchaser must notify
SJVAPCD in writing of its intent to sell the vehicle at least seven calendar days
prior to the vehicle resale.
2. CARB Approval: CARB and SJVAPCD expects selected applicants to keep the
vehicle and meet all applicable project requirements for a minimum three-year
period after the vehicle purchase date. However, unforeseen or unavoidable
circumstances may allow for the resale of a vehicle within this three-year period.
Resale of a funded vehicle must receive SJVAPCD and CARB written approval
prior to resale.
3. Prohibition To Resell More Than Once in Three-Year Project Life: A funded
vehicle may not be resold more than once within three years of the original
purchase date.
4. Contract Amendment (Novation): For vehicles resold within three years of the
original vehicle purchase date (and after SJVAPCD and CARB provides written
approval), the original vehicle purchaser must inform the new purchaser in writing
about the project requirements – by sharing a copy of the project contract. The
new vehicle purchaser must agree in writing to meet all applicable requirements
of original vehicle purchasers – by signing an amended version of the project
contract with SJVAPCD.
5. Notification of Resell: Within seven calendar days after the vehicle resale, the
original vehicle or purchaser must notify SJVAPCD that the vehicle has been
resold and provide the mailing address, phone number and email (if any) of the
purchaser as well as the vehicle resale price.
6. Information Required from Second Owner During Three-Year Project Life:
Within thirty calendar days after the vehicle resale, the entity buying the vehicle
from the original vehicle purchaser must also provide SJVAPCD with:
a. Mailing address
DocuSign Envelope ID: ED84D8E7-D0A2-477B-AE9B-C9472DE35146
9
b. Phone number and email (if any)
c. A copy of the new DMV title documenting the vehicle resale
d. A written commitment to meet the project requirements
e. A written commitment to complete and return the annual usage
survey/questionnaire as required by the project contract.
7. Prorated Funds for Resell or Moving Out-of-State: For funded vehicles resold
or moved out of the State, the vehicle purchaser must refund promptly to
SJVAPCD a prorated portion of their mitigation trust funds received, in an
amount equivalent to the original amount divided by 36 months and then
multiplied by the number of months remaining in the original 60 month period
(rounded to the nearest month): (Original Voucher Amount ÷ 36 Months) x (36 –
months since vehicle purchase date).
8. Pursuit of Remedies for Noncompliance: SJVAPCD and CARB reserve the
right to pursue all remedies available under the law for noncompliance with these
requirements.
N. Vehicle Leasing or Rental Agencies
Any vehicle lease or rental entity that leases or rents a vehicle purchased with VW
Mitigation Trust Funds maintains responsibility for all recordkeeping and reporting
requirements, and must disclose the recordkeeping and reporting requirements to the
vehicle renter or lessee. The lease or rental agreement must include all commitments
needed from the lessee or renter to ensure that:
1. The vehicle operates primarily in California as required by the contract with
SJVAPCD; and
2. The lease must ensure that all required annual activity reports are submitted to
SJVAPCD.
SJVAPCD, CARB or its designees reserve the right to review lease or rental
agreements to confirm appropriate disclosures are made regarding VW Mitigation Trust
Funds received and vehicle activity and reporting requirements. Selected applicants
must provide SJVAPCD, CARB, or its designee all requested information related to any
vehicle purchased with VW Mitigation Trust Funds (including lease or rental
agreements) within ten days of SJVAPCD or CARB’s written request for such
information. The selected applicant (i.e. the lessor for lease agreements) is responsible
for ensuring annual activity reports are accurate and are submitted as required.
SJVAPCD provides a contract at time of vehicle purchase only, and not at the time a
vehicle is leased or rented.
III. Project Non-Performance
SJVAPCD, CARB or its designee has the authority to recoup VW Mitigation Trust Funds
received based upon misinformation or fraud, or for which SJVAPCD or its
subcontractors, a dealership, manufacturer, or vehicle purchaser is in significant or
DocuSign Envelope ID: ED84D8E7-D0A2-477B-AE9B-C9472DE35146
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continual non-compliance with this Implementation Manual or State law. SJVAPCD and
CARB also retains the authority to prohibit any entity from participating in other incentive
programs due to non-compliance with project requirements.
DocuSign Envelope ID: ED84D8E7-D0A2-477B-AE9B-C9472DE35146
Contact Us 888.633.8380 CreativeBusSales.com
Creative Bus Sales offers dedicated sales, parts, and service departments to help you in all
stages of bus ownership. Our customers benefit from our strong manufacturer partnerships, the
largest in-stock inventory, and a nationwide team of experts. As a family-owned business with
experience in the transportation industry since 1980, it’s no coincidence that we’ve grown to
become the nation’s largest bus dealership.
Sales Experience Nationwide Network
550+ Years of Collective Bus Sales Experience
Servicing Over 1,500 Customers Annually
18 Full-Service Locations Nationwide
Partners with 25+ Top Manufacturers
Competitive Pricing In-House Financing
Volume Discounts
Fixed Contract Pricing
Seamless Transactions
Flexible Structures
40 18 350+ 1,500
Years In
Business
Nationwide
Locations
Dedicated
Employees
Annual
Customers
2016 Starcraft Allstar 22’
Price Proposal
Contact Us 888.633.8380 CreativeBusSales.com
2016 Starcraft Allstar 22’
Contact Us 888.633.8380 CreativeBusSales.com
Specifications
Chassis 2016 Ford E-450
Engine: Phoenix-E200 (TM4)
Exterior Exterior Color: white
158” wheelbase
Fully welded steel cage construction meeting all applicable FMVSS requirements
“Starview” driver’s visibility window in front of entry door
Electric actuated 36”passenger entry door with full length glass
36” wide x 36” high upper double T-Slider tempered safety glass windows with climate
control tint
Rear mud flaps
Pre-painted white aluminum side, skirts
Fiberglass front and rear caps
One-piece seamless FRP (fiberglass reinforced plastic) roof
Breakaway rearview mirrors with built-in convex
Interior 93” interior width
80” interior floor to ceiling height (raised floor is 75”)
Floor and wall seat track for flexible seating
5/8″ exterior grade plywood flooring
Ceiling and rear wall fabric for sound abatement
White step nosing
Printed circuit board with automotive type fuses and LED trouble shooting lights
Driver Area: Grey padded vinyl
Walls and Ceiling: Grey padded vinyl
Flooring: Gerflor Sirius Graphite Grey
Ceiling grab rail on street side
1 ¼” dual entry grab rails parallel to entrance steps (both sides)
Driver seat storage in cab overhead
Stanchion and modesty panel behind driver
A/C and Heat A/C System: TA733 Super 68K
Heater: 65K BTU floor mounted, 3 speed low profile OK side sliders
Lighting Door activated interior lights
Surface mound LED entry door exterior light
Sealed LED stop, tail, and turn signal lights with LED back-up lights
LED front and rear marker lights
LED entry door step well lights
LED driver and passenger area lighting
Electrical
Intermotive Flex Tech Electrical System
Audio/Visual Deluxe AM/FM/CD with clock & 4 speakers PA ready
Wheelchair
Accessibility
34” x 54” Braun wheelchair lift located in the rear of the unit
Intermotive Gateway Transit Fast Idle with lift interlock
Wheelchair door upfit package
Accessories Manual Q’ Straint securement kit (2)
Priority seating sign **Required for ADA Compliance**
Wheelchair decal (international symbol of accessbility) each
Contact Us 888.633.8380 CreativeBusSales.com
Unit Price $241,153.00
Model Year Discount <$40,000.00>
Demo Discount <$52,028.00>
Net Unit Cost $149,125.00
Safety Back-up alarm SAE type C 97 db(A)
Passenger
Seating Options
12 Ambulatory Passenger, 2 Wheelchair
Seating Passenger Seating: Mid high double seats (6)
Seat Fabric: Level 4 Gray Vinyl
Seat belt, retractable (12)
Seat belt loop (14)
Antivandal rigid grab handle on aisle seats (6)
Driver Seating: Recaro Recliner, RH Arm, 4 Position Lumbar
Driver Seat Cover: Level 4 Gray Vinyl
Creative Bus Sales
14740 Ramona Avenue
Chino, CA 91710
Date:July 20, 2020 Unit #(s):
Customer Name:
Contact:Salem Afeworki Phone:
Address:77 Fair Drive Fax:
City, State, Zip:Costa Mesa, CA 92626 E-Mail:
Sys2K Entity #: Salesperson:
Ship To Address:
Ship To Address Cont'd:
Ship To Phone: Ship To Email:
Finance Source: Contact:
Address: Phone:
City, State, Zip: Fax:
Description of Vehicle:
VIN #:
Engine Type:Electric FOB Terms:
Number of Passengers:12 Wheelchair Positions:
Estimated Delivery Date:September 9, 9999 Payment Terms:
Unit Price 154,725.00$
Delivery -$
Possession State: CA Incentive (Non-Taxable) (4,600.00)$
Rebates (Taxable) (1,000.00)$
Doc Prep Fee (Taxable) 90.00$
Base Selling Price 149,215.00$
ADA Amount (Non Taxable)15,000.00$
Total Taxable Amount 135,215.00$
Sales Tax 10,479.16$
7.750% CA - Costa Mesa -$
-$
-$
DMV Estimated Fees 250.00$
DMV Electronic Filing Fee 29.00$
Tire Fee 12.25$
Fees Sub-Total 291.25$
Total Price Per Unit 159,985.41$
Quantity 1
Contract Total 159,985.41$
Customer Net Trade -$
Customer Deposit -$
-$
Balance Due 159,985.41$
Buyer's Signature:
Creative Bus Sales:Jay H
CBS Signature:
55403
Jay H
Phone: 909.465.5528
Fax: 909.465.5529
0.00
7/20/2020
Terms:The deposit if indicated above is due with this signed contract. The balance due indicated above is due before vehicle(s) will be
released to the Customer. If the vehicle(s) is not accepted by the Customer, the vehicle will be available for sale to other customers. The
vehicle(s) will not be titled to the Customer until the contract total indicated above plus any interest charges indicated herein are paid in full.
There is no "cooling off" or other cancellation period for vehicle sales. Therefore, you cannot later cancel this contract without the agreement
of the Dealership, or for legal cause. The tax and fees reflected on this agreement are based on the regulations applicable at the time of
drafting this contract. The actual amounts due will be based on the regulations applicable at the time title for each vehicle transfer.
Remit To: Creative Bus Sales, Inc. 14740 Ramona Ave, Chino CA 91710
2
COD
Stacraft Allstar Phoenix Electric
Shipping
www.creativebussales.com
Notes:
Sales tax is calculated based on the state or country in which customer takes
possession of vehicle. Sales tax will be charged to customers taking possession in
AZ, CA, CO, FL, IN, NM, NV, OK, OR, SC, TX, WA, Canada, and Mexico.
All rebates and incentives will be signed over to Creative Bus Sales
California State Tire Fee of $1.75 per tire applies to all new vehicle purchase or
leases.
Buyer's Order Contract
City of Costa Mesa
714-754-5208
Salem.Afeworki@costamesaca.gov
Version 1.09.2 2/11/2020