HomeMy WebLinkAboutBay Area Air Quality Management District 2026-03-09VW Mitigation Trust Fund Program Grant Agreement
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VOLKSWAGEN MITIGATION TRUST FUND
ZERO EMISSION FREIGHT AND MARINE PROGRAM GRANT AGREEMENT
BETWEEN
THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT
AND
CITY OF UKIAH
VWFM-25-0800
This Volkswagen Mitigation Trust Fund Zero-Emission Freight and Marine Program grant agreement (“Agreement”)
is made and entered into between City of Ukiah, hereinafter referred to as “Grantee,” and the Bay Area Air Quality
Management District, hereinafter referred to as the “Grantor” or “Air District,” hereinafter collectively referred to as
the “Parties.”
RECITALS
1) The Volkswagen (“VW”) Environmental Mitigation Trust (“Trust”) was established as part of a settlement
reached between the United States District Court for the Northern District of California and Volkswagen
for VW’s use of illegal defeat devices in certain 2.0-liter and 3.0-liter diesel vehicles. Through the Trust,
funding will be awarded to Eligible Mitigation Actions as prescribed in the settlement’s Consent Decree
that are intended to fully mitigate the excess NOx emissions caused by VW’s use of illegal emissions
testing defeat devices in subject diesel vehicles.
2) The California Air Resources Board (“CARB”) is the designated Lead Agency acting on the State’s behalf
as beneficiary to implement California’s share of Trust funds totaling approximately $423 million.
3) On May 25, 2018, CARB approved the Beneficiary Mitigation Plan for California, which contains the
eligible mitigation actions (or project funding categories) that will be funded from the State’s allocation of
the VW Trust, describes the goals and basic requirements for each category, and designated the Air District
as the statewide administrator for the Zero-Emission Freight and Marine Projects category.
4) On March 13, 2019, CARB and the Air District executed a grant agreement (Grant Number: G18-VWM-
02), pursuant to which Air District will administer VW Trust funds statewide for the Zero -Emission Freight
and Marine Projects category.
5) The Zero-Emission Freight and Marine Program (“Program”) provides funding for the replacement of
airport ground support equipment (“GSE”), forklifts, port cargo handling equipment (“CHE”), the repower
of marine engines to zero-emissions, and installation of shore power at berths in Regulated California
Waters. On May 12, 2021, following CARB’s approval, the Air District released guidance for the Zero-
Emission Freight and Marine Program to describe requirements, applicant and project eligibility,
application process, evaluation criteria, reporting, inspection, implementation and operation, and other
requirements. The guidance is entitled Solicitation Guidance, Statewide Zero-Emission Freight and Marine
Program Solicitation (herein "Program Guidance"), was last updated on September 30, 2025, and is
available on the program website at https://www.californiavwtrust.org/zero-freight-marine/. The Grantee
has affirmed it is an “eligible applicant” under the Program and has affirmed that it shall comply with all
Program requirements set forth in the Program Guidance, which are incorporated herein and made a part
hereof by this reference as if fully set forth herein.
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6) The Air District confirmed the eligibility for Program funding of the project component(s) proposed by
Grantee based on cost-effectiveness (or the base grant amount), the Program Guidance, and the information
provided in the Grantee’s application (“Project”).
In entering into this Agreement, the Air District has relied upon the Grantee’s promises made and
Grantee’s representations in Grantee's complete project application in determining the eligibility of the
Grantee at contract execution date, which are incorporated herein and made a part hereof by this reference
as if fully set forth herein.
7) This Agreement is made pursuant to, and in accordance with, the requirements of the Program Guidance.
Any questions or disputes the Parties may have regarding the implementation of this Agreement shall be
resolved in accordance with the Program Guidance, which are incorporated herein and made a part hereof
by this reference as if fully set forth herein. Final eligibility is based on a completed pre-inspection and the
verification that the Project meets all the requirements for this Program.
SECTION I
GRANTEE AGREES:
1) To implement the Project in accordance with the terms and conditions of this Agreement, the Program
Guidance, and all attachments hereto. Failure to do so will be deemed a breach of this Agreement, and
the Air District may terminate this Agreement pursuant to the termination provisions herein
2) To maintain each piece of new, funded equipment (“Project Equipment”) in good working order and in
accordance with the manufacturer’s specifications throughout the Project Equipment Operational Term
which is defined in Section III.1 below). No tampering or modification of the Project Equipment is
allowed.
Project Equipment must be new and not have been previously owned or registered in any State, not have
been purchased prior to Grant Agreement execution, and not be a converted or aftermarket product. Any
equipment that has been converted by modifying the existing engine with aftermarket parts or equipment
to create zero-emission equipment is not eligible, unless the entire completed zero-emission equipment
has received CARB approval.
3) To complete the Project in accordance with the payment and reporting conditions identified in
Attachment A. The Air District’s funding obligation under this Agreement is limited to reimbursement of
Eligible Costs, the amount of which shall not exceed the Total Grant Funds Awarded specified in
Attachment A Paragraph 5. Any Project costs that exceed Funds Awarded per project component, as
allocated in Attachment A Table 1, are the sole responsibility of the Grantee.
4) To allow the staff and third-party partners of the Air District to inspect the Project Equipment and to
conduct financial and performance audits of the Project. Grantee agrees that the Air District, CARB, or
their respective designated representatives shall have the right to review and to copy any records and
supporting documentation pertaining to the performance of this Project. Grantee further agrees to
cooperate fully with such inspections and audits, including providing copies of any Project records
related to performance of this Agreement requested by the Air District, CARB, or their designee within
thirty business days of such request.
5) To acknowledge the Air District and the Trust Program as a funding source for the Project in any related
media events, articles, news releases or other publicity materials. Grantee must obtain prior written
approval by the Air District in order to disseminate any report or other document describing the Program,
the Project, or this Agreement.
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6) To assure that all funds received under this Agreement are expended only in accordance with the
requirements of the Program Guidance, this Agreement, and all applicable provisions of law and
regulations.
7) If applicable, to permanently remove from service and destroy any equipment replaced as part of the
Project (“Baseline Equipment”) by the deadline specified in Attachment A Paragraph 9, and to provide
documentation to support destruction of the Baseline Equipment. Failure to permanently destroy the
Baseline Equipment shall be deemed a breach of this Agreement.
8) To monitor the operational status of each piece of Project Equipment throughout the Project Equipment
Operational Period. Grantee will notify the Air District in writing of any change in operational status of
any Project Equipment funded and installed under this Agreement within thirty (30) calendar days of its
occurrence. For purposes of this Agreement, a “change in operational status” occurs whenever any
Project Equipment is removed from active service, relocated outside the boundaries of the census track
designated in the application, wrecked, scrapped, sold, or transferred to another entity before full
completion of the Project Equipment Operational Period. If Grantee fails to provide the required written
notice of a change in operational status on a timely basis, Grantee is subject to the repayment
requirements set forth in Paragraph 15 of Attachment A.
9) To neither seek nor accept other private or public financial incentives for the Project without prior
approval from the Air District. If Grantee seeks or accepts such funds or incentives without prior Air
District approval, the Air District may terminate this Agreement for breach, which may also disqualify
Grantee from participating in future Air District incentive programs.
10) To obtain and maintain the insurance coverage specified in “Insurance Requirements,” Attachment B,
and to comply with all insurance requirements set forth therein, including the provision of documentation
of said insurance coverage. Failure to obtain and maintain the insurance coverage or to comply with all
insurance requirements shall be deemed a breach of this Agreement.
11) To give advance notice to the Air District in writing of its intent to sell the Project Equipment along with
reasons why, mailing address, phone number and e-mail of the purchaser, prior to Project Equipment
resale. Grantee must receive Air District and CARB written approval prior to any sale. For Project
Equipment sold within three years of the original Project Equipment purchase date (and after the Air
District and CARB provides written approval), Grantee must inform the new purchaser in writing about
the project requirements by sharing a copy of this Agreement. Grantee is responsible for meeting all
obligations of this Agreement until a novation agreement is fully executed by the Air District, Grantee,
and the new Equipment purchaser. The new Equipment purchaser must agree in writing to meet all
applicable requirements of this Agreement, and if applicable, to provide the Air District with a copy of
the new title documenting the sale within thirty business days after the effective date of the novation
agreement. Within thirty business days after any Project Equipment is sold, Grantee must notify the Air
District that the Project Equipment has been sold and the Project Equipment sale price.
12) To maintain and retain the Project records for at least three years from the date of the final Project
payment or three complete annual reporting cycles following the date of the final Project payment,
whichever period end date is later. An annual reporting cycle is a full calendar year.
13) To comply with all “Special Conditions,” set forth in Attachment A.
14) Nondiscrimination: During the performance of this Grant Agreement, the Grantee and its contractors
shall not unlawfully discriminate against, harass, or allow harassment against any employee or applicant
for employment because of sex, race, religious creed, color, national origin, ancestry, physical disability
including HIV and AIDS), mental disability, sexual orientation, medical condition, marital status, age
over 40) or allow denial of family-care leave, medical-care leave, or pregnancy-disability leave. The
Grantee and its contractors shall ensure that the evaluation and treatment of their employees and
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applicants for employment are free of such discrimination and harassment. The Grantee and its
contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code
section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of
Regulations, title 2, section 11000 et seq.). The applicable regulations of the Fair Employment and
Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of
Division 4 of title 2 of the California Code of Regulations, are incorporated into this Grant Agreement by
reference and made a part hereof as if set forth in full. The Grantee and its contractors shall give written
notice of their obligations under this clause to labor organizations with which they have a collective
bargaining or other agreement.
15) To be bound by all the provisions of State Labor Code Section 1771 et seq. regarding prevailing wages
paid to workers employed on public works and to provide confirmation of compliance if requested.
16) To accept tax liability associated with accepting grant funds.
17) That this Agreement is binding on and will inure to the benefit of Grantee’s heirs, executors,
administrators and successors in interest.
18) To require that all subcontractors comply with the terms of this Agreement.
SECTION II
AIR DISTRICT AGREES:
1) To reimburse Grantee for Eligible Costs in an amount not to exceed the total grant funds awarded by the
Air District, which are specified in Attachment A (“Total Grant Funds Awarded”).
2) To endeavor to pay the undisputed invoiced amount of the Eligible Costs within thirty (30) calendar days of
approval of the invoice.
3) To deliver the payment following the Air District’s verification that Grantee has completed the Project or
Project Milestone Deliverable. Verification by Air District will include, but not be limited to, physical
inspection of any Project Equipment specified in Attachment A, confirmation that the Project Equipment is
operational and in service, and review of evidence and confirmation of the permanent destruction of any
applicable Baseline Equipment replaced as part of the Project.
4) To provide reasonable notice to Grantee prior to the Air District’s or CARB’s inspection or audit of the
Project. What constitutes “reasonable notice” may be based in part upon any prior notice from CARB
received by the Air District of such CARB audit or inspection.
5) CARB is an intended third-party beneficiary of this Agreement and shall have the right to enforce the terms
of the Agreement to ensure emission reductions are obtained.
SECTION III
AIR DISTRICT AND GRANTEE AGREE:
1) Agreement Term, Project Equipment Operational Period, and Project Term: The term of this Agreement
Agreement Term”) begins on the Effective Date and shall remain in effect until the conclusion of all
Project Equipment Operational Periods and submission of all required reports, as set forth in Attachment A
unless this Agreement is terminated earlier. A Project Equipment Operational Period begins when the piece
of Project Equipment has been successfully inspected by the Air District and put into service and concludes
upon the satisfaction of the Minimum Total Usage requirement (Attachment A, Table 1, if required) and
Equipment Operational Period (Attachment A, Table 1) for that piece of Project Equipment. The Project
Term begins at the start of the earliest Project Equipment Operational Period and ends at the conclusion of
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all Project Equipment Operational Periods. The Project Equipment Operational Period for each piece of
Project Equipment is set forth in Table 1 of Attachment A. In no event shall Grantee own and operate a
piece of Project Equipment for less than three years from the date the new unit is put into service, or the
minimum project term specified in the Program Guidance, whichever is longer.
2) Termination:
a) Either party may terminate this Agreement at will, and without specifying any reason, at any time
prior to the Air District’s transfer of Project funds by notifying the other party in writing. The
notice of termination shall specify the effective date of termination, which shall be no less than
thirty (30) calendar days from the date of delivery of such notice. Notice shall be delivered in
accordance with the Notice provisions set forth in Paragraph 5 below.
b) The Air District may terminate this Agreement for breach of the Agreement by Grantee by giving
Grantee a minimum of ten (10) business days written notice of such breach and the opportunity to
cure the breach within that period of time. The notice will specify the amount of Project Grant
Funds to be reimbursed to the Air District, if any, which Grantee shall reimburse within thirty (30)
days of the effective date of termination. The Air District shall calculate the reimbursement based
on the repayment formula set forth in Paragraph 15 of Attachment A.
c) The Air District shall not pay any Project Grant Funds in the event that this Agreement is
terminated and the Project has not been completed by Grantee. If the Project has been completed
and the Air District has paid the grant funds to Grantee, Grantee may not terminate this Agreement
pursuant to Subparagraph 2(a), unless it reimburses the Air District the amount of Project Grant
Funds due based on the repayment formula set forth in Paragraph 15 of Attachment A.
3) Additional Acts and Documents: Each party agrees to do all such things and take all such actions, and to
make, execute and deliver such other documents and instruments that are reasonably required to carry out
the provisions, intent, and purpose of this Agreement. All attachments to this Agreement are expressly
incorporated herein by this reference and made a part hereof as though fully set forth.
4) Indemnification: Grantee shall indemnify and hold harmless CARB, the Air District, its officers,
employees, agents, representatives, and successors-in-interest from and against any and all liability, loss,
expense, including reasonable attorneys' fees, or claims for injury or damages arising out of the
performance by Grantee of its duties and obligations under this Agreement, and arising out of the operation
of the engine and vehicle, vessel or other equipment that is the subject of this Agreement by the Grantee or
its officers, agents, employees, representatives and successors in interest. The Grantee’s indemnification
obligation and its obligation to have applicable third parties indemnify the Air District shall survive
expiration or termination of this Agreement.
5) Notices: All notices that are required under this Agreement shall be provided in the manner set forth
herein, unless specified otherwise. Notice to a party shall be delivered to the attention of the person at the
address listed below, or to such other person or persons as may hereafter be designated by that party in
writing. Notice shall be in writing sent by e-mail and shall be deemed to have been received on the date of
such transmission, provided such date was a business day and delivered prior to 4:00 p.m. PST/PDT.
Otherwise, receipt of e-mail communications shall be deemed to have occurred on the following business
day.
Air District Bay Area Air Quality Management District
375 Beale Street, Suite 600
San Francisco, CA 94105
Attn: Director of Strategic Incentives
Project VWFM-25-0800
CaliforniaVWTrust@baaqmd.gov
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Grantee City of Ukiah
300 Seminary Ave
Ukiah, CA 95482
Attn: Jim Robbins
Project VWFM-25-0800
jrobbins@cityofukiah.com
6) Contacts: The Contact for the Grantee shall be the person named in the Project application, which shall
also list the Contact’s address, telephone number, fax number and e-mail address. The Contact shall be the
liaison to the Air District pertaining to implementation of this Agreement and shall be the contact for
information about the Project. The Grantee shall notify the Air District of a change of the Contact’s name
or contact information in writing no later than thirty (30) days from the date of any change. The Contact
for the Air District shall be the person named in the Air District’s project application form. The Air District
shall notify the Grantee of a change of the Contact’s name or contact information in writing no later than
thirty (30) days from the date of any change.
7) Project Number: All correspondence shall reference this Agreement, which is the same as the “Project
Application Number.”
8) Integration of Agreement: This Agreement represents the final, complete, and exclusive statement of the
agreement between the Grantee and the Air District and supersedes all prior and contemporaneous
understandings and agreements of the Parties. No Party has been induced to enter into this Agreement nor
is any party relying upon, any representation or warranty outside those expressly set forth herein.
9) Amendment: This Agreement may not be modified except in writing, signed by both Parties hereto, and
any attempt to modify this Agreement orally shall be void and of no effect. Any change in Project scope
shall constitute an amendment under this Agreement.
10) Independent Contractor: Grantee is an independent contractor. None of Grantee's officers, employees,
agents, contractors, subcontractors, or vendors are, nor shall they be considered, officers, employees,
agents, contractors, subcontractors, or vendors of the Air District.
11) Assignment and Leasing: Grantee may not assign, sell, transfer, license, or subcontract or otherwise
transfer any rights or obligations under this Agreement without the prior written consent of the Air District.
Any lease or rental entity that leases or rents Project Equipment maintains responsibility for all
recordkeeping and reporting requirements and must disclose the recordkeeping and reporting requirements
to the renter or lessee. The lease or rental agreement must be a minimum of 36 months, ensure that all
required annual activity reports are submitted, and include requirements that the Project Equipment
operates in California as required by this Agreement. Grantee must provide the Air District all requested
information including lease or rental agreements within ten business days of written request.
12) Waiver: No waiver of a breach, of failure of any condition, or of any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party
waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be
deemed a waiver of any other breach, regardless of similarity, nor shall any waiver constitute a continuing
waiver unless the writing so specifies. Further, the failure of a party to enforce performance by the other
party of any term, covenant or condition of this Agreement and the failure of a party to exercise any rights
or remedies hereunder shall not be deemed a waiver or relinquishment by that party to enforce future
performance of any such terms, covenants or conditions, or to exercise any future rights or remedies.
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13) Severability: If a court of competent jurisdiction holds any provision of this Agreement to be illegal,
unenforceable, or invalid in whole or in part for any reason, the validity and enforceability of the remaining
provisions, or portions thereof shall not be affected.
14) Effective Date: The effective date of this Agreement is the date the Air District’s Executive Officer/Air
Pollution Control Officer executes this Agreement.
15) Eligible Costs: Only the actual Project costs described in Attachment A Paragraph 5 and that are incurred
after the Effective Date and prior to termination of the Agreement or upon Air District’s verification that
Grantee has completed the Project, whichever occurs first, are eligible for reimbursement with Program
Grant funds (“Eligible Costs”).
16) Cost Reduction: In the event that the “Total Project Cost” is less than the amount listed in Attachment A,
the Air District shall recalculate its contribution to the Project in accordance with the provisions of
Paragraph 4 of Attachment A.
17) Force Majeure: Neither CARB, the Air District nor Grantee 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, judicial orders, governmental controls, regulations or restrictions, or
other causes, except financial, that are beyond the reasonable control of CARB, the Air District or Grantee,
for a period of time equal to the period of such force majeure event, provided that the party failing to
perform notifies the other party within fifteen (15) calendar days of discovery of the force majeure event,
and provided further that that party takes all reasonable action to mitigate the damages resulting from the
failure to perform. Notwithstanding the above, if the cause of the force majeure event is due to party’s own
action or inaction, then such cause shall not excuse that party from performance under this Contract.
Notwithstanding the above, fire or casualty loss to Project Equipment shall not excuse Grantee’s to perform
under this Agreement. Grantee shall be responsible to repair or replace Project Equipment or to reimburse
the Air District in accordance with Attachment A Paragraph 15.
18) Governing Law: Any dispute that arises under or relates to this Agreement shall be governed by law,
excluding any laws that direct the application of another jurisdiction’s laws. Venue for resolution of any
dispute that arises under or relates to this Agreement shall be San Francisco, California. Any rights or
remedies of the Air District provided for in this Agreement are in addition to any other rights and remedies
provided by law.
19) Emissions Testing: The Air District may conduct emissions testing, at its expense, on any Project
Equipment that is purchased or modified as part of the Project, including a vehicle or vessel. Testing for a
piece of Project Equipment will be limited to no more than once per calendar year during the Project
Equipment Operational Period. Testing will be conducted according to a schedule agreed upon by both
Parties.
20) Emission Reductions: The Air District retains the exclusive right to claim any NOx emission reduction
credits under State or Federal law that might result from emissions reduced by the Project implemented
pursuant to this Agreement. The emissions reduced by the Project may not be used by Grantee to comply
with any local, State, or Federal air pollution regulation or law, or used to fulfill Grantee’s obligations
arising out of any order, settlement contract, memorandum of understanding, or other binding legal
document.
21) Preliminary Inspection: Air District or its designee reserves the right to perform a preliminary inspection of
any Baseline Equipment, as applicable, prior to implementation of the Project. Grantee shall facilitate and
cooperate with any Air District inspection. Grantee must demonstrate to the Air District that any Baseline
Equipment to be replaced under this Agreement is fully operational at the time of the preliminary
inspection. Grantee must also facilitate the Air District in obtaining and confirming equipment information
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e.g., model year, serial numbers, power rating) at the time of inspection. Failure to demonstrate that the
applicable Baseline Equipment to be replaced is operational at the time of the preliminary inspection shall
be deemed a breach of this Agreement and the Air District may terminate the Agreement per Section III.7.
22) Post-Project Inspection: Air District or its designee reserves the right to perform a post-project inspection of
the Project Equipment funded under the terms of this Agreement to verify that the Project has been
implemented according to the terms of this Agreement. Grantee shall facilitate the Air District inspection
and make the new Project Equipment available for the post-project inspection, which may include a test to
verify that the Project Equipment is fully operational and pre-installation interim inspection/s of engines,
tanks or similar funded components whose tags or labels will not be visible after installation, to document
that Project Equipment complies with Program requirements. Post-project inspection will include
verification of the destruction of any replaced Baseline Equipment, as applicable. Grantee must contact the
Air District to arrange post-project inspection and should provide at least two business days advanced
notice for scheduling.
23) Compliance with Program Guidance: The Grantee agrees to implement the Project in accordance with all
requirements set forth in the Program Guidance. Any questions or disputes the Parties may have regarding
the implementation of this Agreement shall be resolved in accordance with the applicable Program
Guidance.
24) Enforcement: Both the Air District and CARB have the authority to inspect the Project, enforce the terms
of this Agreement, and pursue repayment of grant funds for noncompliance with the terms and conditions
of this Agreement or applicable state laws or regulations throughout the Agreement Term. The following
circumstances are the bases under which the Air District seeks repayment of grant funds: Grantee’s failure
to comply with the terms of this Agreement, including the requirements set forth in Section I; Grantee’s
failure to implement the Project in compliance with Program Guidance; and Grantee’s failure to comply
with requirements set forth in Attachment A, which could reduce the air quality benefits of this Project.
25) Public Documents: To the extent not otherwise prohibited by law, and to the extent required by the
California Public Records Act (Government Code section 7920 et seq.), the Grantee will place in the public
domain any software, written document or other product developed with Program funds as part of the
Project.
26) Survival of Terms: Any terms of this Agreement that by their nature extend beyond the term (or
termination) of this Agreement shall remain in effect until fulfilled and shall apply to both Parties’
respective successors and assigns.
27) Public Entities Conflict of Interest: The Grantee warrants and represents that its public officials, including
its officers and employees in their official capacity, presently have no interest and agrees that its public
officials, including its officers and employees in their official capacity, will not acquire any interest which
would represent a conflict of interest under California Government Code sections 1090 et seq. and 87100 et
seq. during the performance of this Agreement.
28) Penalty for Falsifying Information: In entering into this Agreement, the Air District has relied upon the
representations in Grantee’s application, which is incorporated by this reference as if fully set forth herein,
in determining the eligibility of Grantee. Grantee agrees that the information submitted in its application,
including information about its eligibility status and Project, and the information provided to the Air
District in furtherance of this Agreement, is accurate, true, and correct. The Air District or CARB may
consider submission of false information a criminal offense, punishable under penalty of perjury under the
laws of California. Grantee acknowledges, understands, and accepts that by providing or making any false
statements or providing false information, Grantee may be in violation of California law. All statements,
responses, and information are subject to investigation and any incomplete, unclear, false, or dishonest
statement, response, or information may be grounds for disqualification from receiving any existing or
further funding or participating in any programs or projects using Air District or CARB -provided funds, or
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from doing business with the State of California or the Air District. If false information is or was provided,
the Air District or CARB may require Grantee to return the Funds Awarded, may exclude Grantee from
participation in future funding programs, and may pursue other remedies available under the law.
29) Authority to Sign: The persons executing this Agreement certify that they have the legal authority to bind
their respective entities to all terms and conditions set forth herein.
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IN WITNESS WHEREOF, the Parties to this Agreement have caused this Agreement to be duly executed on their
behalf by their authorized representatives.
SIGNATURES:
Bay Area Air Quality Management District
By: ____________________________________ Date: _________
Philip M. Fine
Executive Officer/Air Pollution Control Officer
Bay Area Air Quality Management District
Approved as to legal form:
By: ____________________________________
Alexander Crockett
General Counsel
Bay Area Air Quality Management District
Grantee
By: ____________________________________ Date: _________
Sage Sangiacomo
City Manager
City of Ukiah
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
March 2, 2026
March 9, 2026
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ATTACHMENT A - PROJECT SPECIFIC INFORMATION
Note: The section numbers shown in parenthesis below refer to Sections in the Agreement.]
1. Grantee: City of Ukiah
2. Grant Number (Section III.7): VWFM-25-0800
3. Air District Approval Date (Section III.14): The Effective Date of this Agreement.
4. Total Grant Funds Awarded (Sections I.3, II.1, and III.15): $183,500
The Air District will pay the awarded Eligible Costs of the Project Equipment, less any amount from an Air District
approved co-funding source as adjusted and set forth in Table 1 below. Payment shall not exceed the permitted Funds
Awarded for the individual Project Equipment as specified in Table 1 below. In no event shall the Total Grant Funds
Awarded for all Project Equipment exceed $183,500. Funds Awarded may only be used to cover Eligible Costs as
described in this Agreement.
5. Total Project Cost (Sections I.3 and III.15): A detailed breakdown of project costs and Project Equipment
information is shown in Table 1:
Table 1: Project Equipment Information, Usage, Costs and Funds Awarded
Baseline
Equipment
ID
Description
New
Equipment/Engine
Infrastructure
Description* &
Location
Eligible
Costs
Maximum %
of Funding of
Eligible Costs
Minimum
Total Usage &
Equipment
Operational
Period
Operation in
CA (%) &
Disadvantaged
DAC) / Low-
Income (LIC)
Community
Yes/No)
Funds
Awarded
Equipment:
Forklift
ID: 984 /
Yale
1968 Yale &
Towne G3P-
150-0FS-158
Engine:
1968 Detroit
Diesel, DW-
LS, 128 hp,
Diesel Tier 0
Equipment:
Forklift
ID: 984 / Yale-r
2025 Toyota
9FBZ80U
Infrastructure:
208V Charger
Ukiah, CA
183,597 100%
N/A
3 years
100% in CA
DAC/LIC: Yes
183,500
Total award: $183,500
As an alternative to Project Equipment, Grantee may propose equipment that will result in the same or better emissions reduct ions and meet
or exceed the operational parameters as Project Equipment and specified in Attachment A of this Agreement (“Equivalen t Equipment”).
Installation of Equivalent Equipment in lieu of Project Equipment requires advanced written approval from the Air District. Inclusion of “-r”
at the end of an equipment ID number designates equipment that will replace equipment with the ID number that precedes “-r” and for which
a new equipment ID number is not yet available.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 12 of 18
6. Project Description:
Table 1 provides the details of existing (old) Baseline Equipment and funded Project Equipment. Awarded
projects will consist of the purchase and operation of the Project Equipment listed in Table l. Any change in
Project Equipment specifications or Project Description must receive written approval in advance by the Air
District.
For equipment replacement or repower projects the Baseline Equipment does not need to be in operable
condition at the time of preliminary inspection by Air District staff, as long the equipment/engine(s) do not
meet the “scrapped” definition in the Program Guidance.
7. Project Term (Section III.1): Table 1 lists the required usage and Project Equipment Operational Period for
each piece of Project Equipment. The “Minimum Total Usage” listed in Table 1 (if required) is the minimum
number of hours the Project Equipment is to operate, or the minimum amount of electricity that must be
delivered during the Project Equipment Operational Period, which represents the minimum number of years
over which the Project Equipment is to operate under this Agreement. The Project Equipment Operational
Period begins when the Project Equipment has been confirmed operational by the Air District. The Project
Term concludes upon the satisfaction of the usage (if required) and Project Equipment Operational Period
requirements for each piece of Project Equipment and upon confirmation by the Air District that all Project
requirements have been met.
8. Operating Parameters: The Air District has awarded this Grant based upon Grantee’s agreement to operate
the Project Equipment pursuant to the parameters identified in Table 1 of this Attachment. Grantee shall
operate Project Equipment within California, as specified in Table 1, and within disadvantaged or low-
income communities, if provided for in Table 1. In no event shall Grantee operate the Project Equipment less
than the minimum project term specified in the Program Guidance. Pursuant to Paragraph 15 of this
Attachment, Grantee may be required to repay Grant funds if unable to satisfy the Project’s usage (if
required) and project life requirements (Equipment Operational Period) identified in Table 1.
9. Project Schedule: By no later than July 13, 2027, the Grantee must put the Project Equipment into service
and have the equipment inspected by the Air District. Inspections may occur at any time prior to Grant
Agreement execution and throughout the Agreement Term. If Baseline Equipment is listed in Table 1,
Grantee must scrap the Baseline Equipment within 60 days of when the Project Equipment becomes
operational. Copies of purchase order must be submitted within 3 months of a Notice to Proceed.
10. Reserved.
11. Reserved.
12. Reserved.
13. Project Implementation Report and Request for Payment (Section I): In a timely manner and as soon as
practicable after completion of the work set forth in the Project Description, Grantee shall submit a Project
Implementation Report (PIR), an IRS W-9 form, and a project invoice to request payment for the Eligible
Costs of the Project.
The Project invoice must:
Provide documentation for all Eligible Costs, document the equipment serial number(s), and
include a description of the Project Equipment purchased.
Demonstrate the costs are Eligible Costs and have been expended in compliance with the Project
Description and, the Project Schedule.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 13 of 18
Itemize the total funds requested for this reimbursement, which shall include an itemization of
payments to vendors, consultants, and contractors.
Include copies of invoices that document the goods and services provided by vendors, consultants,
and contractors and documentation of the total hours incurred to complete the Project, the hourly
rates of any labor charges, the costs of such goods, and any other Eligible Costs.
Be submitted with a summary sheet that specifies the Project Number. If costs are incurred that are
not directly related to the Project as described in Paragraph 5 of this Attachment, all such costs must
either be deleted when the Project invoice is prepared, or clearly identified as costs that are not
eligible for reimbursement by the Air District.
Include proof of warranty as required by the Program Guidance for the specific project option and
type of Project Equipment described in Table 1 of this attachment.
14. Annual Monitoring Reports: The annual reporting cycle is a calendar year January 1 through December 31.
Grantee shall submit an annual monitoring report each calendar year for the Project Term in a format
approved and provided by the Air District. The monitoring report shall include, but is not limited to, the
following information:
Annual hours or miles of operation
Locations where Project Equipment operated
Percentage of operating hours or miles within the boundaries of the State
Signed certification statement that all Project Equipment was operated in accordance with this
Agreement and that all information submitted is true and accurate
Proof of insurance
Other information as requested by the Air District.
The first annual report shall be submitted by February 1 of the year following execution of the Grant
Agreement to cover the period from the Effective Date of this Agreement through December 31 of the prior
year. The first annual report shall include a report on the Grantee’s progress in meeting milestones listed in
the Project Schedule as set forth in Paragraph 9 of this Attachment. Subsequent annual reports shall be
submitted by February 1st of each succeeding year with the final annual monitoring report due by February 1
following the last year of the Project Term. If Grantee fails to submit annual monitoring reports in a timely
fashion, the Air District shall perform a project performance audit. Failure to submit monitoring reports could
be considered a breach of this Agreement and may jeopardize Grantee’s eligibility to participate in future
incentive and grant programs.
15. Repayment of Grant Funds for Failure to Complete Project: Grantee shall repay the Total Grant Funds
Awarded on a prorated basis for selling, retiring, scrapping, or removing any piece of Project Equipment
from service prior to completing its Project Equipment Operational Period. For projects with a Minimum
Total Usage requirement in Table 1, the fraction of funds to be repaid will be determined by subtracting the
usage of the Project Equipment at the time of sale, retirement, scrapping, or removal from service from total
usage pursuant to Paragraph 7 of this Attachment and dividing that result by the total usage. For projects that
were awarded a base grant amount, with no Minimum Total Usage requirement in Table 1, the fraction of
funds to be repaid will be determined based on the months of operation completed. At its sole discretion, the
Air District may waive repayment if it determines that Grantee’s failure to complete the Project was due to
events beyond Grantee’s reasonable control.
At its sole discretion, the Air District may waive repayment if the Grantee facilitates transfer of this
Agreement by the Air District to a new owner who agrees to assume all obligations under this Agreement and
specifically agrees to continue operation of the Project Equipment in order to provide equivalent emission
reductions in accordance with Program Guidance.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 14 of 18
16. Special Conditions:
A. The Grantee shall operate the Project Equipment funded within disadvantaged or low-income
communities throughout the Project Equipment Operational Period, if provided for in Table 1 of
Attachment A, to ensure that the Project directly reduces emissions in disadvantaged or low-income
communities and helps to reduce public health risks associated with such air contaminants in the
disadvantaged or low-income communities. The disadvantaged or low-income community
parameter is based on the application materials submitted by the Grantee and is the basis for the
calculation of emissions reductions achieved through the Project. Disadvantaged communities are
defined by the California Environmental Protection Agency as the top 25% most impacted census
tracts in CalEnviroScreen. Low-income communities are defined as the census tracts that are either
at or below 80 percent of the statewide median income, or at or below the threshold designated as
low-income by the California Department of Housing and Community Development (HCD).
Disadvantaged communities and low-income communities are depicted on the map in Attachment
C of this Agreement.
B. Operation in California: For the duration of the Project Equipment Operational Period, Grantee
shall operate the Project Equipment within California, as specified in Table 1 of Attachment A.
Grantee must demonstrate, as part of the Annual Monitoring Reports, that the percentages of
operation within California as identified in Table 1 have been achieved for each year of
operation. Failure to do so may result in repayment of grant funds.
C. Reserved.
D. Reserved.
E. Reserved.
F. The Grantee shall at any time during the contract Term agree to accept the installation and use of an
on-board electronic monitoring device if requested by the Air District.
G. As required by the Program Guidance, Grantee shall ensure that Project Equipment shall be
equipped with a tamper-proof, non-resetting hour or energy meter (as applicable). If this meter fails
during the Project Equipment Operational Period, the Grantee must notify the Air District and take
action to repair or replace the meter within thirty (30) days.
H. If applicable, Project Equipment must be included in the fleet’s reporting of total horsepower from
which the BACT requirements of the In-use Off-road Diesel Vehicle Regulation are calculated.
I. For repower and conversion projects, the installation of Project Equipment must be completed in a
manner that does not void any remaining warranties provided by the Project Equipment
manufacturer.
J. For Grantees subject to CARB regulations for fleets, Grantee acknowledges that CARB regulations
may restrict the extent to which the Project Equipment funded through this program can be used to
calculate and attain regulatory compliance. Grantee agrees to notify CARB in compliance
statements that Project Equipment was funded through the Volkswagen Environmental Mitigation
Trust.
K. By signing this Section K, the Contact, on behalf of Grantee, certifies that the following statements
are true statements and affirmations of the Grantee to the best of its knowledge:
1. I certify that the fleet, engine(s) and equipment are in compliance with all applicable Federal,
State, and local air quality rules and regulations as of the Effective Date of this Agreement.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 15 of 18
2. I understand that I must maintain compliance with all applicable Federal, State, and local air
quality rules and regulations (e.g., AB 841 if applicable) for the Project Term.
3. I have disclosed to the Air District all other all private or public financial incentives applied for
or used for this Project.
4. I will not apply for or receive other private or public financial incentives for the Project
without prior approval from the Air District, including any sources that become available after
the Effective Date of this Agreement. The receipt of additional public funding for the Project
Equipment could result in a reduction of the Total Grant Funds Awarded.
5. I understand that the following requirements apply to additional private or public financial
incentives used to support this Project.
a. Grantee must meet all criteria associated with each funding source used to fund the
Project.
b. The total of all incentives for the Project must not exceed the total project costs.
c. Grantees that are not public entities must satisfy the match requirements using only
eligible sources of funding, as laid out in the Program Guidance or as confirmed in
writing by the Air District.
d. All NOx emission reductions achieved through this Project and paid for with Project
Funds and Grantee matching funds [or funds comprising Total Grant Funds Awarded]
will be credited as reductions to the VW Program. Matching funds may not lead to
double counting of NOx benefits. Other emission reductions, such as greenhouse gas
emissions, may be claimed by the other programs used in co-funding this project.
Signature: _____________________________________________________
Name (printed): _________________________________________________
Title: ________________________________________ Date: ____________
L. Security Interest: Grantee hereby grants the Air District a security interest in the Project Equipment
that has been purchased partially or entirely with funding provided by the Air District pursuant to
this Agreement and any amendments thereto. Grantee acknowledges and agrees that the Air
District shall have all lien rights as a secured creditor on the Project Equipment throughout the
Term of the Agreement. Grantee agrees and authorizes the Air District to file a Uniform
Commercial Code (UCC) financing statement (Form UCC-1), U.S. Coast Guard Notice of Claim of
Lien, California Title Lien, or similar security instrument to secure its interests in the Project
Equipment. In the event the Project Equipment is repossessed or Grantee files for dissolution or
bankruptcy protection, Grantee shall notify the Air District within ten (10) business days of the
repossession or court filing.
M. Reserved.
N. Reserved.
O. Projects that include fueling or charging infrastructure Project Equipment:
Grantee must either own the land on which the Project infrastructure is installed or control the
land through a long-term lease, easement or other legal arrangement for the duration of the
Project Term.
Work must be performed by a licensed contractor and infrastructure equipment and parts must
be new. Remanufactured or refurbished equipment and parts are not eligible.
The fueling and charging infrastructure equipment must be in operating condition for the
duration of the Project Term.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
March 2, 2026CityManager
Sage Sangiacomo
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 16 of 18
Grantee shall operate annually for the Projected Annual Usage, Equipment Operational Period,
and number of Hours or Visits specified in Table 1 of Attachment A.
Non-publicly accessible infrastructure equipment must operate without disruption and Grantee
shall report any downtime to the Air District within 15 days of equipment malfunction
outlining specified actions to return Project Equipment to service.
Fueling and charging infrastructure equipment must include an operational fuel/energy meter
throughout the Project Term. If this meter fails for any reason, the fuel/energy meter must be
repaired or replaced as soon as possible.
The Air District will review all invoiced costs submitted by Grantee upon Project completion
to identify actual eligible and ineligible costs.
o Eligible fueling and charging infrastructure costs include: Design and engineering,
equipment (e.g., charging/fueling units, materials), installation directly related to the
construction of the infrastructure, meter/data loggers.
o Ineligible fueling and charging infrastructure costs include: Existing
station/infrastructure upgrades, fuel and energy costs, non-essential equipment or
hardware, operation cost (e.g., operational fees, maintenance, repairs, improvements,
spare parts), insurance, data collection and reporting, Grantee administrative costs,
travel/lodging, employee training and salaries, legal fees, real estate property
purchases/leases, performance bond costs, construction management, storm water plan
costs, security costs, testing and soil sampling, hazardous materials, including
permitting, handling and disposal.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 17 of 18
ATTACHMENT B - INSURANCE REQUIREMENTS
Grantee to initial next to each checked box indicating they have read their project insurance requirements.
Verification of Coverage:
Grantee shall provide the Air District certificates and/or other evidence of the insurance coverage required
below. The Air District reserves the right to require Grantee to provide complete, certified copies of any insurance
offered in compliance with these specifications. Certificates, policies and other evidence provided shall specify that
the Air District shall receive 30 days advanced notice of cancellation from the insurers.
Minimum Scope of Insurance
Throughout the Project Term as defined in Section III of the Agreement of which this Attachment is a part, Grantee
and any third-party subcontractors shall obtain and maintain in full force and effect the insurance as set forth below:
1. Liability Insurance:
Initial
Corporations and Public Entities - a limit of not less than $1,000,000 per occurrence. Such insurance
shall be of the type usual and customary to the business of the Grantee, and to the operation of the
vehicles, vessels, engines or equipment operated by the Grantee.
Single Equipment Owners - a limit of not less than $750,000 per occurrence. Such insurance shall be of
the type usual and customary to the business of the Grantee, and to the operation of the vehicles, vessels,
engines or equipment operated by the Grantee.
At the time the Grantee submits invoices for payment to the Air District, the Grantee must demonstrate that each
piece of Project Equipment purchased under this Agreement, of which this is an Attachment, is covered under the
following property insurance, if Grantee has not already demonstrated possession of this insurance to the Air District.
The property insurance for each piece of Project Equipment must remain effective from the date of the invoice to the
Air District to the end of the Project Equipment Operational Period as defined in Section III of the Agreement.
2. Property Insurance:
Initial
in an amount of not less than the insurable value of Grantee’s vehicles, vessels, engines or equipment
funded under the Agreement of which this Attachment is a part, and initial covering all risks of loss,
damage or destruction of such vehicles, vessels, engines or equipment.
3. Workers Compensation Insurance
Initial
as required by California law and employers’ liability insurance with a limit not less than $1 million.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII. The Air District may,
at its sole discretion, waive or alter this requirement or accept self-insurance in lieu of any required policy of
insurance.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
VW Mitigation Trust Fund Program Grant Agreement
VWFM-25-0800 18 of 18
ATTACHMENT C – DISADVANTAGED OR LOW-INCOME COMMUNITIES DESIGNATION*
Map created on March 19, 2025 using CARB’s map at https://webmaps.arb.ca.gov/PriorityPopulations/.
Docusign Envelope ID: 11787ED6-45C8-4174-AF19-FA9C71379AE0
Certificate Of Completion
Envelope Id: 11787ED6-45C8-4174-AF19-FA9C71379AE0 Status: Completed
Subject: Grant Agreement - Please Docusign: VWFM-25-0800 City of Ukiah
Document Type: Contract with Grantee
Program:
VW
Primary Funding Source: VW
Secondary Funding Source:
Source Envelope:
Document Pages: 18 Signatures: 4 Envelope Originator:
Certificate Pages: 6 Initials: 3 Desiree Tuvera
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
dtuvera@baaqmd.gov
IP Address: 192.137.109.103
Record Tracking
Status: Original
2/23/2026 11:34:41 AM
Holder: Desiree Tuvera
dtuvera@baaqmd.gov
Location: DocuSign
Signer Events Signature Timestamp
Randi Wallach
Randi@WallachConsulting.com
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None)
Completed
Using IP Address: 64.94.148.229
Signed using mobile
Sent: 2/23/2026 11:55:52 AM
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Electronic Record and Signature Disclosure:
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ID: 41492eea-4220-4566-8791-bf17bf305b56
Sage Sangiacomo
ssangiacomo@cityofukiah.com
City Manager
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Sent: 2/24/2026 7:56:26 AM
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ID: 9778120c-7f46-4014-a800-fbdd547d3d4d
John Del Arroz
jdelarroz@baaqmd.gov
Staff Specialist
Bay Area Air Quality Management District
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Chengfeng Wang
cwang@baaqmd.gov
Air Quality Program Manager
Bay Area Air Quality Management District
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Alona Davis
adavis@baaqmd.gov
Manager
Bay Area Air Quality Management District - Grants
Department
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Alexander Crockett
acrockett@baaqmd.gov
Counsel
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Arsenio Mataka
amataka@baaqmd.gov
Deputy Executive Officer
Bay Area Air Quality Management District
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Jim Robbins
jrobbins@cityofukiah.com
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jpan@baaqmd.gov
Finance Manager
BAAQMD
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Electronic Record and Signature Disclosure
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From time to time, Bay Area Air Quality Management District - Grants Department (we, us or
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Electronic Record and Signature Disclosure created on: 4/16/2020 1:09:34 PM
Parties agreed to: Randi Wallach, Sage Sangiacomo, Hanna Brown, Alexander Crockett, Jun Pan
Unless you tell us otherwise in accordance with the procedures described herein, we will provide
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Until or unless you notify Bay Area Air Quality Management District - Grants
Department as described above, you consent to receive exclusively through electronic
means all notices, disclosures, authorizations, acknowledgements, and other documents
that are required to be provided or made available to you by Bay Area Air Quality
Management District - Grants Department during the course of your relationship with
Bay Area Air Quality Management District - Grants Department.