PART V: Required Bid Documents
PSP Bogqe1ge He1ndling ln·line System···City Project No. PSP·04, i=edeml Aid Project No. XXXX·5282(XXX) Item 1K - Page 10
List of Additional Officers
6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Brian Best Officer D Director D Member D Manager
I D General Partner D Limited Partner
Other Secretary and General Counsel
Daniel C. DeRooy Officer D Director D Member D Manager D General Partner D Limited Partner
Corporate Director, Financial
Other Re12orting/Assistant Treasurer
Ricardo Gomez Officer D Director D Member D Manager
D General Partner D Limited Partner
Other Assistant Treasurer
PART V: Required Bid Documents
PSP Baggage Handling In-line System-City Project No. PSP-04, Federal Aid Project No. XXXX-5282(XXX) Item 1K - Page 11
PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM (CONTINUED) PSP BAGGAGE HANDLING IN-LINE SYSTEM, CITY PROJECT NO. PSP-04, FEDERAL PROJECT NO. XXXX-5282(XXX)
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity EXAMPLE:
Jane Doe 50%, ABC Company, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
A.
Not Applicable
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entitvl
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Sign~tur~f D~~s'9 ~~. ,nte~ Name,
Title~~
Gord n Childress, General Manager, EVP
Date
May 28, 2025
PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
PART V: Required Bid Documents
PSP Baggage Handling In-line System-City Project No. PSP-04, Federal Aid Project No. XXXX-5282(XXX) Attachment B
Item 1K - Page 12
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 1 APRIL 2025
AGREEMENT ____
(CONSTRUCTION CONTRACT)
THIS AGREEMENT made this day of , 20 , by and between the City of Palm Springs, a charter city, organized and existing in the County of Riverside, under and by virtue of the laws of the State of California, hereinafter designated as the City, and Skanska USA Building, a California corporation, hereinafter designated as the Contractor.
The City and the Contractor, in consideration of the mutual covenants hereinafter set forth, agree as follows:
ARTICLE 1 -- THE WORK
For and in consideration of the payments and agreements to be made and performed by City, Contractor agrees to furnish all materials and perform all work required to complete the Work as specified in the C ontract Documents, and as generally indicated under the Bid Schedule(s) for the Project entitled:
PSP BAGGAGE HANDLING IN-LINE SYSTEM
The Work c omprises modifications to the existing Palm Springs International Airport Baggage Handling System to a new full In- Line Baggage Handling System. This work is inclusive of all necessary provisions for building expansion. Additionally, a new sortation system and associated environmental canopy protection is included as well as any required site work, demolition, installation, et al. Necessary for a turnkey BHS solution as outlined in the contract drawings.
ARTICLE 2 -- COMMENCEMENT AND COMPLETION
The Work to be performed under this Contract shall commence on the date specified in the Notice to Proceed by the City, and the Work s hall be fu lly completed within the tim e specified in the Notice to Proceed.
The City and the Contractor recognize that time is of the essence of this Agreement, and that the City will suffer financial loss if the Work is not completed within the time s pecified in Article 2, herein, plus any extensions t hereof a llowed in a ccordance with applicable provisions of the Standard Specifications, as modified herein. The parties also recognize th e delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by the Ci ty if the Work is not c ompleted on ti me. Accordingly, in stead o f requiring any such proof, the City and the C ontractor agree that as liquidated damages or delay (but not as a penalty), the Contractor shall pay the City the sum specified in Section 6-9 of the Special Provisions for each calendar day that expires after the time specified in Article 2, herein. In executing the Agreement, the Contractor acknowledges it has reviewed the provisions of the Standard Specifications, as modified herein, related to li quidated damages, and has made itself aware of the a ctual loss incurred by the City due to the inability to complete the Work within the time specified in the Notice to Proceed. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These Item 1K - Page 13
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 2 APRIL 2025
provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.
ARTICLE 3 -- CONTRACT PRICE
The City shall pay the Contractor for the completion of the Work, in accordance with the Contract Documents, in cu rrent funds the C ontract Price(s) named in the C ontractor's Bid Proposal and Bid Schedule(s), and any duly authorized C onstruction C ontract C hange Orders approved by the City. The amount of the initial contract award in accordance with the Contractor’s Bid Proposal is SEVENTY- ONE MILLION , SEVEN HUNDRED SEVENTY FOUR THOUSANDS , FOUR HUNDRED AND NINETY -SEVEN ($71,774,497.00).
Contractor agree s to receive and a ccept the p rices set forth herein, as f ull compensation f or furnishing all materials, performing all work, and fulfi lling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the Work during its progress or prior to its a cceptance including those for well and faithfully completing the Work and the w hole thereof in the manner and time specified in the Contract Documents; and, also includ ing those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of th e Work, sus pension of discontinuance of the Work, and all other unknowns or risks of any description connected with the Work.
ARTICLE 4 -- THE CONTRACT DOCUMENTS
The Contract Documents consist of the Notice Inviting Bids, Instructions to Bidders, the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations, th e accepted Bid and Bid Schedule(s), List of Subcontractors, N on- Discrimination Certification, Non-Collusion Declaration, Equal Employment Opportunity Certification, Debarment and Suspension Certification, Non -Lobbying Certification for Federal Aid Contracts, Disclosure of Lobbying Activities, Bi dder's G eneral Information, Bi d Security or Bid B ond, Exhibit 15G Construction Contract DBE Commitment, Exhibit 15H DBE Information- Good Faith Efforts, Public Contract Code Section 10285.1 Statement, Public Contract Code Section 10162 Questionnaire, Public Contract Code Section 10232 Statement, this Agr eement, Worke r's Compensation Certificate, Performance Bond, Payment Bond, Standard Specifications, Special Provision
s, th e Drawings, Addenda numbers 1 t o 3, inclusive, and all Construction Contract Change Orders and Work Change Directives which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto.
T
he Contract Documents shall also incorporate those certain Federal Requirements for Federal- Aid Construction Projects including, Form FHWA 1273, Female and Minority Goals, Title VI Assurances, Use of United States Flag Vessels, as well as the Davis Bacon Wage Determination for applicable prevailing wage rates, included in Exhibit “ C” attached hereto and made a part hereof. Exhibit “C” shall be included in all subcontracts $10,000 or more.
ARTICLE 5 -- MUTUAL OBLIGATIONS
For and in consideration of the payments and agreements to be made and performed by the City, the Contractor agrees to furnish all materials and perform all work required for the above stated Item 1K - Page 14
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 3 APRIL 2025
project, and to fulfill all other obligations as set forth in the aforesaid Contract Documents.
City hereby agrees to employ, and does hereby employ, Contractor to provide th e materials, complete the Work, and fulfill the obligations a ccording to the terms and conditions herein contained and referred to, for the Contract Price herein identified, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the Contract Documents.
ARTICLE 6 -- PAYMENT PROCEDURES
The C ontractor shall s ubmit A pplications fo r Payment in a ccordance with the Standard Specifications as amended by the S pecial Provisi ons. A pplications for Pay ment w ill b e processed by the City Engineer as provided in the Contract Documents.
ARTICLE 7 – NOTICES
All notices shall be in writing and either served by personal delivery or mailed to the other party.
Written notice to the Contractor shall be addressed to Contractor’s principal place of business unless Contractor designates another address in writing for service of notice. Notice to the City shall be addressed to the City as designated in the Notice Inviting Bids unless the City designates another address in writing for service of notice. Notice shall be effective upon receipt or five (5) calendar days after being sent by first class mail, whichever is earlier. Notice given by facsimile shall not be effective unless acknowledged in writing by the receiving party.
ARTICLE 8 -- INDEMNIFICATION
Contractor shall provide indemnification and defense as set forth in Section 5-8 “Indemnification,” of the S pecial Provisions.
ARTICLE 9 -- PREVAILING WAGES
Contractor ag rees to fully comply w ith a ll applicable f ederal and state labor laws including, without lim itation California Labor Code Section 1720, e t seq., and 1770, et seq ., as we ll as Califo rnia Code of Regulations, T itle 8, Section 16000, et seq. ("Prevailing Wage Laws").
Contractor shall bear all risks of payment or non-payment of p revailing wages under California law, and Contractor hereby agrees to defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from any claim or li ability arising out of any failure or alleged failure to comply wit h the Prevailing Wage Laws.
C
ontractor specifically acknowledges and agrees to be bound by the Wage Rates and Labor Code requirements specified in the Contract Documents, including the requirement to furnish electronic certified payroll records directly to the Labor Commissioner (via the Division of Labor Standards Enforcement), and shall pay the general prevailing rate of per diem wages as determined by the Director of the Department of Industrial Relations of the State of California.
ARTICLE 10 -- CONFLICT OF INTEREST
Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement, nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one (1) year Item 1K - Page 15
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 4 APRIL 2025
thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.
ARTICLE 11--NON-DISCRIMINATION
In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non- discrimination in city contracting.
ARTICLE 12 -- MISCELLANEOUS
Terms used in this Agreement which are defined in the Standard Specifications and the Special Provisions will have t he meanings indi cated in s aid Standard Specifications and t he Special Provisions. No a ssignment by a par ty hereto of any right s under or int erests in t he Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically, but without limitation, monies that may become due and monies that are due may not be a ssigned without such consent (except to the extent that the effect of t his restriction may be limi ted by law), and unles s specifically stated to the contrary in any wri tten consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents.
The City and the Contractor each binds itself, its partners, successors, assigns, and legal representatives, to the other party hereto, its partners, successors, assigns, and legal representatives, in respect of all covenants, agreements, and obligations contained in the Contract Documents.
Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.
Compliance with Economic Sanctions in Response to Russia's Actions in Ukraine.
When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Contractor shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Contractor shall also certify compliance with N-6- 22 by completing the form located in Exhibit “A” (Russian Sanctions Item 1K - Page 16
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 5 APRIL 2025
Certification), attached hereto and incorporated herein by reference. Contractor shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.
ARTICLE 13 – PROJECT LABOR AGREEMENT
13.1 Generally
The Work is subject to the City’s Community Workforce Agreement dated August 31, 2021 (“CWA” or “Project Labor Agreement” or “PLA”), a copy of which is on file with the City, available upon request, and incorporated herein by reference as if fully set forth herein. Contractor and all subcontractors of Contractor of any tier shall at all times comply with the requirements of the PLA in the prosecution of the Work.
Contractor has executed or agrees to execute and be bound by the terms of the PLA either directly or through the Letter of Assent (a form of which is attached to the PLA as Exhibit “B” and referred to herein as the “LOA”), and Contractor shall furnish evidence of compliance with the same to City prior to the commencement of any Work. Contractor further agrees to require, or has already required, each of its subcontractors, of whatever tier, to agree in writing in the form of a LOA to be bound by each and every provision of the PLA prior to the commencement of Work or at the time of such subcontract, whichever occurs first.
13.2 Subcontractors
Contractor shall include, and shall require all of Contractor’s subcontractors of any tier to include, contractual provisions in all contracts they enter into for the performance of the Work, requiring each subcontractor, of every tier, who furnishes any labor for the performance of Work, to comply with the provisions of the PLA at no additional cost.
13.3 Condition of Payment
Compliance by Contractor and all of Contractor’s subcontractors of any tier with the requirements of the PLA shall be a condition of Contractor’s right to payment under this Agreement.
13.4 Reformation
Any requirement currently set forth in, or hereafter developed, adopted or implemented pursuant to the terms of the PLA, that is applicable to the Project, that is not set forth herein or that is by mistake incorrectly stated, shall be deemed to be inserted in this Agreement and shall be read and enforced as though it were included herein; and, if through mistake or otherwise any such requirement is not inserted or if inserted and requires correction, then upon request of either party this Agreement shall forthwith be amended to make such insertion or correction.
13.5 Conflicts
In the event of a conflict between the PLA and any other provisions of the Contract Documents, the PLA shall control.
13.6 Costs of Compliance
Item 1K - Page 17
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FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 6 APRIL 2025
Contractor represents and warrants that it has included in its bid all costs of compliance with the requirements of this Section 13.
13.7 Not a Limitation
The requirements of this Section 13 are in addition to, and not a limitation upon, the other applicable provisions of the Contract Documents.
SIGNATURES ON NEXT PAGE
Item 1K - Page 18
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) CONSTRUCTION CONTRACT – PAGE 7 APRIL 2025
SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS
AND SKANSKA USA BUILDING
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.
CONTRACTOR:
By: _____________________________________ By: _________________________________________ Signature Signature
(2nd signature required for Corporations)
Date: Date:
CITY OF PALM SPRINGS:
APPROVED BY CITY COUNCIL:
Date: _______ Item No.
APPROVED AS TO FORM: ATTEST:
By: ___________________________ By: _______________________________ City Attorney City Clerk
APPROVED:
By: _______________________________ Date:
City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
Item 1K - Page 19
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “A” – EXECUTIVE ORDER N-6-22 – PAGE 8 APRIL 2025
EXHIBIT “A”
EXECUTIVE ORDER N-6-22 CERTIFICATION
Executive Order N-6-22 issued by Governor Gavin Newsom on March 4, 2022, directs all agencies and departments that are subject to the Governor’s authority to (a) terminate any contracts with any individuals or entities that are determined to be a target of economic sanctions against Russia and Russian entities and individuals; and (b) refrain from entering into any new contracts with such individuals or entities while the aforementioned sanctions are in effect.
Executive Order N-6-22 also requires that any contractor that: (1) currently has a contract with the City of Palm Springs funded through grant funds provided by the State of California; and/or (2) submits a bid or proposal or otherwise proposes to or enter into or renew a contract with the City of Palm Springs with State of California grant funds, certify that the person is not the target of any economic sanctions against Russia and Russian entities and individuals.
The contractor hereby certifies, SUBJECT TO PENALTY FOR PERJURY, that a) the contractor is not a target of any economic sanctions against Russian and Russian entities and individuals as discussed in Executive Order N-6-22 and b) the person signing below is duly authorized to legally bind the Contractor. This certification is made under the laws of the State of California.
Signature:
Printed Name:
Title:
Firm Name:
Date:
Item 1K - Page 20
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “B” – LETTER OF ASSENT – PAGE 9 APRIL 2025
EXHIBIT “B”
LETTER OF ASSENT
A letter of assent is to be signed by all contractors awarded work covered by the City of Palm Springs Community Workforce Agreement prior to commencing work.
[Contractor’s Letterhead]
CWA Administrator
City of Palm Springs
Attn: Procurement & Contracting
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Re: Community Workforce Agreement – Letter of Assent
City Project No. XX-XX
Dear Sir/Madame:
This is to confirm that [name of company] agrees to be part to and bound by the City of Palm Springs Community Workforce Agreement effective Month Day, Year , as such Agreement may, from time to time by the negotiating parties or interpreted pursuant to its terms. Such obligation to be a party and bound by this Agreement shall extend to all work covered by the agreement undertaken by this Company on the project and this Company shall require all of its contractors and subcontractors of whatever tier to be similarly bound for all work within the scope of the Agreement by signing and furnishing to you an identical letter of assent prior to their commencement of work.
Sincerely,
[Name of Construction Company]
By: [ ]
Name and Title of Authorized Executive
Contractor State License No.:
Business Address:
Business Phone:
Cc: San Bernardino/Riverside Counties Building and Construction Trades Council AFL- CIO
Item 1K - Page 21
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “C” – TITLE PAGE – PAGE 10 APRIL 2025
EXHIBIT “C”
FORM FHWA 1273
FEMALE AND MINORITY GOALS
TITLE VI ASSURANCES
AND
DAVIS BACON WAGE DETERMINATIONS
FOLLOWS THIS PAGE
Item 1K - Page 22
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “C” – FORM FHWA 1273 – PAGE 11 APRIL 2025
FHWA-1273 – Revised October 23, 2023
REQUIRED CONTRACT PROVISIONS
FEDERAL-AID CONSTRUCTION CONTRACTS
I. General
II. Nondiscrimination
III. Non-segregated Facilities
IV. Davis-Bacon and Related Act Provisions
V. Contract Work Hours and Safety Standards Act
Provisions
VI. Subletting or Assigning the Contract
VII. Safety: Accident Prevention
VIII. False Statements Concerning Highway Projects
IX. Implementation of Clean Air Act and Federal Water
Pollution Control Act
X. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion
XI. Certification Regarding Use of Contract Funds for
Lobbying
XII. Use of United States-Flag Vessels: ATTACHMENTS
A. Employment and Materials Preference for Appalachian Development Highway System or Appalachian Local Access
Road Contracts (included in Appalachian contracts only)
I. GENERAL
1. Form FHWA -1273 must be physically incorporated in each construction contract funded under title 23, United States Code, as required in 23 CFR 633.102(b) (excluding emergency
contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services). 23 CFR 633.102(e).
The applicable requirements of Form FHWA -1273 are
incorporated by reference for work done under any purchase order, rental agreement or agreement for other services. The prime contractor shall be responsible for compliance by any subcontractor, lower -tier subcontractor or service provider. 23 CFR 633.102(e).
Form FHWA -1273 must be included in all Federal -aid design- build contracts, in all subcontracts and in lower tier subcontracts (excluding subcontracts for design services, purchase orders, rental agreements and other agreements for supplies or services) in accordance with 23 CFR 633.102. The design-builder shall be responsible for compliance by any subcontractor, lower -tier subcontractor or service provider.
Contracting agencies may reference Form FHWA -1273 in
solicitation-for-bids or request -for-proposals documents, however, the Form FHWA-1273 must be physically incorporated (not referenced) in all contracts, subcontracts and lower -tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services related to a
construction contract). 23 CFR 633.102(b).
2. Subject to the applicability criteria noted in the following sections, these contract provisions shall apply to all work performed on the contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all work performed on the contract by piecework, station work, or by subcontract. 23 CFR 633.102(d).
3. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final payment, termination of the contract, suspension / debarment or any other action determined to be appropriate by the contracting agency and FHWA.
4. Selection of Labor: During the performance of this contract, the contractor shall not use convict labor for any purpose within the limits of a construction project on a Federal-aid highway unless it is labor performed by convicts who are on parole, supervised release, or probation. 23 U.S.C. 114(b). The term Federal-aid highway does not include roadways functionally classified as local roads or rural minor collectors. 23 U.S.C. 101(a).
II.
NONDISCRIMINATION (23 CFR 230.107(a); 23 CFR Part
230, Subpart A, Appendix A; EO 11246)
The provisions of this section related to 23 CFR Part 230, Subpart A, Appendix A are applicable to all Federal -aid construction contracts and to all related construction subcontracts of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or architectural service contracts.
In addition, the contractor and all subcontractors must comply with the following policies: Executive Order 11246, 41 CFR Part 60, 29 CFR Parts 1625-1627, 23 U.S.C. 140, Section 504
of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity Clause in 41 CFR 60- 1.4(b) and, for all construction contracts exceeding $10,000, the Standard Federal Equal Employment Opportunity Construction Contract Specifications in 41 CFR 60-4.3.
Note: The U.S. Department of Labor has exclusive authority to determine compliance with Executive Order 11246 and the policies of the Secretary of Labor including 41 CFR Part 60, and 29 CFR Parts 1625-1627. The contracting agency and the FHWA have the authority and the responsibility to ensure compliance with 23 U.S.C. 140, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The following provision is adopted from 23 CFR Part 230, Subpart A, Appendix A, with appropriate revisions to conform to the U.S.
Department of Labor (US DOL) and FHWA requirements.
1. Equal Employment Opportunity: Equal Employment
Opportunity (EEO) requirements not to discriminate and to take affirmative action to assure equal opportunity as set forth under laws, executive orders, rules, regulations (see 28 CFR Part 35, 29 CFR Part 1630, 29 CFR Parts 1625-1627, 41 CFR
Part 60 and 49 CFR Part 27) and orders of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C. 140, shall constitute the EEO and specific affirmative action standards for the contractor's project activit ies under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by Item 1K - Page 23
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reference in this contract. In the execution of this contract, the contractor agrees to comply with the following minimum specific requirement activities of EEO:
a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. 23 CFR 230.409 (g)(4) & (5).
b. The contractor will accept as its operating policy the following statement:
"It is the policy of this Company to assure that applicants are employed, and that employees are treated during
employment, without regard to their race, religion, sex, sexual orientation, gender identity, color, national origin, age or disability. Such action shall include: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship, pre- apprenticeship, and/or on- the-job training."
2. EEO Officer: The contractor will designate and make known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so.
3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend such action or are substantially involved in such action, will be made fully cognizant of and will implement the contractor's EEO policy and contractual
responsibilities to provide EEO in each grade and classification of employment. To ensure that the above agreement will be met, the following actions will be taken as a minimum:
a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be reviewed and explained. The meetings will be conducted by the EEO Officer or other knowledgeable company official.
b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer, covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor.
c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women.
d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to employees, applicants for employment and potential employees.
e.
The contractor's EEO policy and the procedures to implement such policy will be brought to the attention of employees by means of meetings, employee handbooks, or other appropriate means.
4. Recruitment: When advertising for employees, the contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived.
a. The contractor will, unless precluded by a valid bargaining agreement, conduct systematic and direct recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration.
b. In the event the contractor has a valid bargaining agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the contractor's compliance with EEO contract provisions. Where implementation of such an agreement has the effect of discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions.
c. The contractor will encourage its present employees to refer minorities and women as applicants for employment. Information and procedures with regard to referring such applicants will be discussed with employees.
5. Personnel Actions: Wages, working conditions, and employee benefits shall be established and administered, and personnel actions of every type, including hiring, upgrading, promotion, transfer, demotion, layoff, and termination, shall be taken without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability. The following procedures shall be followed:
a. The contractor will conduct periodic inspections of project sites to ensure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any evidence of discriminatory wage practices.
c. The contractor will periodically review selected personnel actions in depth to determine whether there is evidence of discrimination.
Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons.
d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in connection with its obligations under this contract, will attempt to resolve such complaints, and will take appropriate corrective action within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal.
6. Training and Promotion:
a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are applicants for employment or current employees. Such efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved.
b.
Consistent with the contractor's work force requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs (i.e., apprenticeship and on-the-job training programs for the geographical area of con tract performance). In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The contracting agency may Item 1K - Page 24
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reserve training positions for persons who receive welfare assistance in accordance with 23 U.S.C. 140(a).
c. The contractor will advise employees and applicants for employment of available training programs and entrance
requirements for each.
d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion.
7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 23 CFR 230.409. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for membership in the unions and increasing the skills of minorities and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability.
c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacanci es without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minorities and women.
The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the requirements of this paragraph. In the event the union referral practice prevents the contractor f rom meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall immediately notify the contracting agency.
8. Reasonable Accommodation for Applicants / Employees with Disabilities: The contractor must be familiar with the requirements for and comply with the Americans with Disabilities Act and all rules and regulations established thereunder.
Employers must provide reasonable accommodation in all
employment activities unless to do so would cause an undue hardship.
9. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not
discriminate on the grounds of race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The contractor shall take all necessary and reasonable steps to ensure nondiscrimination in the administration of this contract.
a. The contractor shall notify all potential subcontractors, suppliers, and lessors of their EEO obligations under this contract.
b. The contractor will use good faith efforts to ensure subcontractor compliance with their EEO obligations.
10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State DOT’s FHWA-approved Disadvantaged Business Enterprise (DBE)
program are incorporated by reference.
b. The contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4)Disqualifying the contractor from future bidding as non- responsible.
c. The Title VI and nondiscrimination provisions of U.S. DOT Order 1050.2A at Appendixes A and E are incorporated by reference. 49 CFR Part 21.
11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the EEO requirements.
Such records shall be retained for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for inspection by authorized representatives of the contracting agency and the FHWA.
a. The records kept by the contractor shall document the following:
(1) The number and work hours of minority and non- minority group members and women employed in each work classification on the project;
(2) The progress and efforts being made in cooperation with unions, when applicable, to increase employment opportunities for minorities and women; and
(3) The progress and efforts being made in locating, hiring, training, qualifying, and upgrading minorities and women.
b. The contractors and subcontractors will submit an annual report to the contracting agency each July for the duration of the project indicating the number of minority, women, and non- minority group employees currently engaged in each work classification required by the contract work. This information is to be reported on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July.
III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of more than $10,000. 41 CFR 60-1.5.
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As prescribed by 41 CFR 60-1.8, the contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin cannot result. The contractor may neither require such segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation extends further to ensure that its employees are not assigned to perform their services at any location under the contractor's control where the facilities are segregated. The term "facilities" includes waiting rooms, work areas, restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy between sexes.
IV. DAVIS-BACON AND RELATED ACT PROVISIONS
This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size), in accordance with 29 CFR 5.5. The requirements apply to all projects located within the right -of-way of a roadway that is functionally classified as Federal-aid highway. 23 U.S.C. 113. This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. 23 U.S.C. 101.
Where applicable law requires that projects be treated as a project on a Federal-aid highway, the provisions of this subpart will apply regardless of the location of the project. Examples include: Surface Transportation Block Grant Program projects funded under 23 U.S.C. 133 [excluding recreational trails projects], the Nationally Significant Freight and Highway Projects funded under 23 U.S.C. 117, and National Highway Freight Program projects funded under 23 U.S.C. 167.
The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA- 1273 format and FHWA program requirements.
1. Minimum wages (29 CFR 5.5)
a. Wage rates and fringe benefits. All laborers and mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. As provided in paragraphs (d) and (e) of 29 CFR 5.5, the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract. Contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis-Bacon Act (40
U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph 1.e. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period.
Such laborers and mechanics must be paid the appropriate wage rate and fringe benefits on the wage determination for the classification(s) of work actually performed, without regard to skill, except as provided in paragraph 4. of this section. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classifications and wage rates conformed under paragraph 1.c. of this section) and the Davis -Bacon poster (WH– 1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.
b. Frequently recurring classifications. (1) In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f), wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are regularly submitted pursuant to paragraph 1.c. of this section, provided that:
(i) The work performed by the classification is not performed by a classification in the wage determination for which a prevailing wage rate has been determined;
(ii) The classification is used in the area by the construction industry; and
(iii) The wage rate for the classification bears a reasonable relationship to the prevailing wage rates contained in the wage determination.
(2) The Administrator will establish wage rates for such classifications in accordance with paragraph 1.c.(1)(iii) of this section. Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification.
c. (i) The work to be performed by the classification requested is not performed by a classification in the wage determination; and
(ii) The classification is used in the area by the construction industry; and
(iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(2) The conformance process may not be used to split, subdivide, or otherwise avoid application of classifications listed in the wage determination.
(3) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to [email protected]. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(4) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits , where appropriate), the contracting officer will, by email to [email protected], refer the questions, including the PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
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views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(5) The contracting officer must promptly notify the contractor of the action taken by the Wage and Hour Division under
paragraphs 1.c.(3) and (4) of this section. The contractor must furnish a written copy of such determination to each affected worker or it must be posted as a part of the wage determination.
The wage rate (including fringe benefits where appropriate) determined pursuant to paragraph 1.c.(3) or (4) of this section must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
d. Fringe benefits not expressed as an hourly rate. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof.
e. Unfunded plans. If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, in accordance with the criteria set forth in § 5.28, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
f. Interest. In the event of a failure to pay all or part of the wages required by the contract, the contractor will be required to pay interest on any underpayment of wages.
2. Withholding (29 CFR 5.5)
a. Withholding requirements. The contracting agency may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in this section for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis - Bacon labor standards, that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to Davis -Bacon labor standards requirements and is held by the same prime contractor,
regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a contractor's failure to pay any laborer or mechanic, including any apprentice or helper working on the site of the work all or part of the wages required by the contract, or upon the contractor's failure to submit the required records as discussed in paragraph
3.d. of this section, the contracting agency may on its own initiative and after written notice to the contractor, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
b. P
riority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with paragraph 2.a. of this section or Section V, paragraph 3.a., or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.
Records and certified payrolls (29 CFR 5.5)
a. Basic record requirements (1) Length of record retention. All regular payrolls and other basic records must be maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract is completed.
(2) Information required. Such records must contain the name; Social Security number; last known address, telephone number, and email address of each such worker; each worker's correct classification(s) of work actually performed; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C. 3141(2)(B) of the Davis -Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid.
(3) Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under paragraph 1.e. of this section that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act, the contractor must maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.
(4) Additional records relating to apprenticeship. Contractors with apprentices working under approved programs must maintain written evidence of the registration of apprenticeship programs, the registration of the apprentices, and the ratios and wage rates prescribed in the applicable programs.
b. Certified payroll requirements (1) Frequency and method of submission. The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Acts- covered work is performed, certified payrolls to the contracting agency. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least 3 years after Item 1K - Page 27
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the work on the prime contract has been completed; and the contracting agency or prime contractor permits other methods of submission in situations where the contractor is unable or limited in its ability to use or access the electronic system.
(2) Information required. The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under paragraph 3.a.(2) of this section, except that full Social Security numbers and last known addresses, telephone numbers, and email addresses must not be included on weekly transmittals. Instead, the certified payrolls need only include an individually identifying number for each worker ( e.g., the last four digits of the worker's Social Security number). The required weekly certified payroll information may be submitted using Optional Form WH– 347 or in any ot her format desired.
Optional Form WH –347 is available for this purpose from the Wage and Hour Division website at
https://www.dol.gov/sites/dolgov/ files/WHD/
legacy/files/wh347/.pdf or its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly submission by the subcontractor to the contracting agency.
(3) Statement of Compliance. Each certified payroll submitted must be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who pays or supervises the payment of the persons working on the contract, and must certify the following:
(i) That the certified payroll for the payroll period contains the information required to be provided under paragraph 3.b. of this section, the appropriate information and basic records are being maintained under paragraph 3.a. of this section, and such information and records are correct and complete;
(ii) That each laborer or mechanic (including each helper and apprentice) working on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR part 3; and
(iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work actually performed, as specified in the applicable wage determination incorporated into the contract.
(4) Use of Optional Form WH–347. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH–347 will satisfy the requirement for
submission of the “Statement of Compliance” required by paragraph 3.b.(3) of this section.
(5) Signature. The signature by the contractor, subcontractor, or the contractor's or subcontractor's agent must be an original handwritten signature or a legally valid electronic signature.
(6) Falsification. The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31
U.S.C. 3729.
(7) Length of certified payroll retention. The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
c. Contracts, subcontracts, and related documents. The
contractor or subcontractor must maintain this contract or subcontract and related documents including, without limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
d. Required disclosures and access (1) Required record
disclosures and access to workers. The contractor or subcontractor must make the records required under paragraphs 3.a. through 3.c. of this section, and any other documents that the contracting agency, the State DOT, the FHWA, or the Department of Labor deems necessary to determine compliance with the labor
standards provisions of any of the applicable statutes referenced by § 5.1, available for inspection, copying, or transcription by authorized representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and must permit such representatives to interview workers during working hours on the job.
(2) Sanctions for non-compliance with records and worker access requirements. If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to § 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available to WHD within the time WHD requests that the records be produced will be precluded from introducing as evidence in an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the contractor or person for an extension of the time for submission of records. WHD will determine the reasonableness of the request and may consider, among other things, the location of the records and the volume of production.
(3) Required information disclosures. Contractors and
subcontractors must maintain the full Social Security number and last known address, telephone number, and email address of each covered worker, and must provide them upon request to the contracting agency, the State DOT, the FHWA, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action.
4. Apprentices and equal employment opportunity (29 CFR 5.5)
a. Apprentices (1) Rate of pay. Apprentices will be permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S.
Department of Labor, Employment and Training Administration, Office of Apprenticeship (OA), or with a State Apprenticeship Agency recognized by the OA. A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State Apprenticeship Agency recognized by the OA withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
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(2) Fringe benefits. Apprentices must be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that determination.
(3) Apprenticeship ratio. The allowable ratio of apprentices to journeyworkers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to paragraph
4.a.(4) of thi s section. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in paragraph 4.a.(1) of this section, must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage determination for the work actually performed.
(4) Reciprocity of ratios and wage rates. Where a contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyworker's hourly rate) applicable within the locality in which the construction is being performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor's registered program must be observed.
b. Equal employment opportunity. The use of apprentices and journeyworkers under this part must be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
c. Apprentices and Trainees (programs of the U.S. DOT).
Apprentices and trainees working under apprenticeship and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in connection with Federal-aid highway construction programs are not subject to the
requirements of paragraph 4 of this Section IV. 23 CFR 230.111(e)(2). The straight time hourly wage rates for apprentices and trainees under such programs will be established by the particular programs. The ratio of apprentices and trainees to journeyworkers shall not be greater than permitted by the terms of the particular program.
5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.
6. Subcontracts. The contractor or subcontractor must insert FHWA-1273 in any subcontracts, along with the applicable wage determination(s) and such other clauses or contract modifications as the contracting agency may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage determination(s) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and may be subject to debarment, as appropriate. 29 CFR 5.5.
7. Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
8. Compliance with Davis -Bacon and Related Act
requirements. All rulings and interpretations of the Davis- Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract as provided in 29 CFR
5.5. 9. Disputes concerning labor standards. As provided in 29 CFR
5.5, disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the
U.S. Department of Labor, or the employees or their
representatives.
10. Certification of eligibility.
a. By entering into this contract, the contractor certifies that neither it nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of 40
U.S.C. 3144(b) or § 5.12(a).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
c. The penalty for making false statements is prescribed in the U.S.
Code, Title 18 Crimes and Criminal Procedure, 18
U.S.C. 1001.
11. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA, Related Acts, this part, or 29 CFR part 1 or 3; or
d. Informing any other person about their rights under the DBA, Related Acts, this part, or 29 CFR part 1 or 3.
V. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construction contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 Item 1K - Page 29
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CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchpersons and guards.
1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic
receives compensation at a rate not less than one and one- half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR 5.5.
2. Violation; liability for unpaid wages; liquidated damages.
In the event of any violation of the clause set forth in paragraph
1. of this section the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the underpayment. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchpersons and guards, employed in violation of the clause set forth in paragraph 1. of this section, in the sum currently provided in 29 CFR 5.5(b)(2)* for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1. of this section.
* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as may be adjusted annually by the Department of Labor, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990.
3. Withholding for unpaid wages and liquidated damages
a. Withholding process. The FHWA or the contracting agency may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to
satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages; monetary relief, including interest; and liquidated damages required by the clauses set forth in this section on this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and i s held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with Section IV paragraph 2.a. or paragraph 3.a. of this section, or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court -appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.
4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in paragraphs 1. through 5. of this section and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for compliance by any subcon tractor or lower tier subcontractor with the clauses set forth in paragraphs 1. through 5.
In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower- tier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate.
5. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing regulations in this part;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or this part;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or this part; or
d. Informing any other person about their rights under CWHSSA or this part.
VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System pursuant to 23 CFR 635.116.
1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such specialty items performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635.116).
a. The term “perform work with its own organization” in paragraph 1 of Section VI refers to workers employed or leased by the prime contractor, and equipment owned or rented by the prime
contractor, with or without operators. Such term does not include employees or equipment of a subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may include payments for the costs of hiring leased employees from an employee leasing firm meeting all relevant Federal and State regulatory requirements. Leased employees may only be included in this term if the prime contractor meets all of the following conditions: (based on longstanding Item 1K - Page 30
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interpretation)
(1) the prime contractor maintains control over the supervision of the day-to-day activities of the leased employees;
(2) the prime contractor remains responsible for the quality of the work of the leased employees;
(3) the prime contractor retains all power to accept or exclude individual employees from work on the project; and
(4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the submission of payrolls, statements of compliance and all other Federal regulatory requirements.
b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 23 CFR 635.102.
2. Pursuant to 23 CFR 635.116(a), the contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or produced by the contractor under the contract provisions.
3. Pursuant to 23 CFR 635.116(c), the contractor shall furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who performs the work) and (b) such other of its own organizational resources
(supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract.
4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. (based on long- standing interpretation of 23 CFR 635.116).
5. The 30-percent self-performance requirement of paragraph (1) is not applicable to design- build contracts; however, contracting agencies may establish their own self-performance requirements. 23 CFR 635.116(d).
VII. SAFETY: ACCIDENT PREVENTION
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.
1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR Part 635). The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of employees on the job and the safety of the public and to protect property in connection with the performance of the work covered by the contract. 23 CFR 635.108.
2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any subcontractor shall not permit any employee, in performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR Part 1926) promulgated by the Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704). 29 CFR 1926.10.
3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized representative thereof, shall have right of entry to any site of contract performance to inspect or investigate the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704).
VIII. FALSE STATEMENTS CONCERNING HIGHWAY
PROJECTS
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.
In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federal - aid highway projects, it is essential that all persons concerned with the project perform their functions as carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law. To prevent any misunderstanding regarding the seriousness of these and similar acts, Form FHWA - 1022 shall be posted on each Federal-aid highway project (23 CFR Part 635) in one or more places where it is readily available to all persons concerned with the project:
18 U.S.C. 1020 reads as follows:
"Whoever, being an officer, agent, or employee of the United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps, specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or
Whoever knowingly makes any false statement, false
representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or
Whoever knowingly makes any false statement or false
representation as to material fact in any statement, certificate, or report submitted pursuant to provisions of the Federal -aid Roads Act approved July 11, 1916, (39 Stat. 355), as amended and supplemented;
Shall be fined under this title or imprisoned not more than 5 years or both."
IX. IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL
WATER POLLUTION CONTROL ACT (42 U.S.C. 7606; 2
CFR 200.
88; EO 11738)
This provision is applicable to all Federal-aid construction contracts in excess of $150,000 and to all related subcontracts. 48 CFR
2.101; 2 CFR 200.327.
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By submission of this bid/proposal or the execution of this contract or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, subcontractor, supplier, or vendor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401- 7671q) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251- 1387). Violations must be reported to the Federal Highway Administration and the Regional Office of the Environmental Protection Agency. 2 CFR Part 200, Appendix II.
The contractor agrees to include or cause to be included the requirements of this Section in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements. 2 CFR 200.327.
X. CERTIFICATION REGARDING DEBARMENT,
SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION
This provision is applicable to all Federal -aid construction contracts, design- build contracts, subcontracts, lower -tier subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 CFR Parts 180 and 1200. 2 CFR 180.220 and
1200.220.
1. Instructions for Certification – First Tier Participants:
a. By signing and submitting this proposal, the prospective first tier participant is providing the certification set out below.
b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determi nation whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. 2 CFR 180.320.
c. The certification in this clause is a material representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this
transaction for cause of default. 2 CFR 180.325.
d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 2 CFR 180.345 and 180.350.
e. The terms "covered transaction," "debarred," "suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900- 180.1020, and 1200. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered
Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 2 CFR 180.330.
g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR
180.220 and 180.300.
h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. 2 CFR 180.300; 180.320, and 180.325. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. 2 CFR 180.335. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/). 2 CFR 180.300, 180.320, and 180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 CFR 180.325.
* * * * *
2. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – First Tier Participants:
a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency, 2 CFR 180.335;.
(2) Have not within a three- year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stol en property, 2 CFR 180.800;
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(3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification, 2 CFR 180.700 and 180.800; and
(4) Have not within a three- year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corporation that has been convicted of a felony violation under any Federal law within the two- year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(6) Are not a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability (USDOT Order 4200.6 implementing appropriations act requirements).
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal. 2 CFR 180.335 and 180.340.
* * * * *
3. Instructions for Certification - Lower Tier Participants:
(Applicable to all subcontracts, purchase orders, and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 CFR Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below.
b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.
c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transaction," "debarred," "suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900 – 180.1020, and 1200. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
e. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 2 CFR 1200.220 and 1200.332.
f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion- Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 1200.220.
g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. 2 CFR 180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 2 CFR 180.325.
* * * * *
4. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower Tier Participants:
a. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals:
(1) is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency, 2 CFR 180.355;
(2) is a corporation that has been convicted of a felony violation under any Federal law within the two- year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(3) is a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (USDOT Order 4200.6 implementing appropriations act requirements)
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b. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal.
* * * * *
XI. CERTIFICATION REGARDING USE OF CONTRACT
FUNDS FOR LOBBYING
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts which exceed
$100,000. 49 CFR Part 20, App. A.
1. The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31
U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than
$10,000 and not more than $100,000 for each such failure.
3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such recipients shall certify and disclose accordingly.
XII. USE OF UNITED STATES-FLAG VESSELS:
This provision is applicable to all Federal -aid construction contracts, design- build contracts, subcontracts, lower -tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381.
T
his requirement applies to material or equipment that is acquired for a specific Federal-aid highway project. 46 CFR
381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.
When oceanic shipments (or shipments across the Great Lakes) are necessary for materials or equipment acquired for a specific Federal-aid construction project, the bidder, proposer, contractor, subcontractor, or vendor agrees:
1. To utilize privately owned United States -flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States -flag commercial vessels. 46 CFR 381.7.
2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on-board’ commercial ocean bill-of-lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills -of- lading) and to the Office of Cargo and Commercial Sealift (MAR - 620), Maritime Administration, Washington, DC 20590. (MARAD requires copies of the ocean carrier's (master) bills of lading, certified onboard, dated, with rates and charges. These bills of lading may contain business sensitive information and therefore may be submitted directly to MARAD by the Ocean Transportation Intermediary on behalf of the contractor). 46 CFR 381.7.
ATTACHMENT A - EMPLOYMENT AND MATERIALS
PREFERENCE FOR APPALACHIAN DEVELOPMENT
HIGHWAY SYSTEM OR APPALACHIAN LOCAL ACCESS
ROAD CONTRACTS (23 CFR 633, Subpart B, Appendix B) This provision is applicable to all Federal-aid projects funded under the Appalachian Regional Development Act of 1965.
1. During the performance of this contract, the contractor undertaking to do work which is, or reasonably may be, done as on-site work, shall give preference to qualified persons who regularly reside in the labor area as designated by the DOL wherein the contract work is situated, or the subregion, or the Appalachian counties of the State wherein the contract work is situated, except:
a. To the extent that qualified persons regularly residing in the area are not available.
b. For the reasonable needs of the contractor to employ supervisory or specially experienced personnel necessary to assure an efficient execution of the contract work.
c. For the obligation of the contractor to offer employment to present or former employees as the result of a lawful collective bargaining contract, provided that the number of nonresident persons employed under this subparagraph (1c) shall not exceed 20 percent of the total number of employees employed by the contractor on the contract work, except as provided in
subparagraph (4) below.
2. The contractor shall place a job order with the State Employment Service indicating (a) the classifications of the laborers, mechanics and other employees required to perform the contract work, (b) the number of employees required in each classification, ( c) the date on which the participant estimates such employees will be required, and (d) any other pertinent information required by the State Employment Service to complete the job order form. The job order may be placed with the State Employment Service in writing or by telephone. If during the course of the contract work, the information submitted by the contractor in the original job order is substantially modified, the participant shall promptly notify the State Employment Service.
3. The contractor shall give full consideration to all qualified job applicants referred to him by the State Employment Service. The contractor is not required to grant employment to any job applicants who, in his opinion, are not qualified to perform the classification of work required.
4. If, within one week following the placing of a job order by the contractor with the State Employment Service, the State Item 1K - Page 34
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Employment Service is unable to refer any qualified job applicants to the contractor, or less than the number requested, the State Employment Service will forward a certificate to the contractor indicating the unavailability of applicants. Such certificate shall be made a part of the contractor's permanent project records. Upon receipt of this certificate, the contractor may employ persons who do not normally reside in the labor area to fill positions covered by the certificate, notwithstanding the provisions of subparagraph (1c) above.
5. The provisions of 23 CFR 633.207(e) allow the contracting agency to provide a contractual preference for the use of mineral resource materials native to the Appalachian region.
6. The contractor shall include the provisions of Sections 1 through 4 of this Attachment A in every subcontract for work which is, or reasonably may be, done as on-site work.
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PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “C” – FEMALE AND MINORITY GOALS – PAGE 24 APRIL 2025
FEMALE AND MINORITY GOALS
To comply with Section II, "Nondiscrimination," of "Required Contract Provisions Federal -Aid Construction Contracts," the following are for female and minority utilization goals for Federal - aid construction contracts and subcontracts that exceed $10,000:
The nationwide goal for female utilization is 6.9 percent.
The goals for minority utilization (45 Fed Reg 65984 (10/3/1980)) are as follows:
MINORITY UTILIZATION GOALS
Economic
Area
Goal
(Percent)
174 Redding CA:
Non-SMSA (Standard Metropolitan Statistical Area) Counties:
CA Lassen; CA Modoc; CA Plumas; CA Shasta; CA Siskiyou; CA Tehama
6.8 175
Eureka, CA
Non-SMSA Counties:
CA Del Norte; CA Humboldt; CA Trinity
6.6 176
San Francisco-Oakland-San Jose, CA:
28.9 25.6
19.6 14.9
9.1 17.1
23.2 SMSA Counties:
7120 Salinas-Seaside-Monterey, CA
CA Monterey
7360 San Francisco-Oakland
CA Alameda; CA Contra Costa; CA Marin; CA San Francisco; CA San Mateo 7400 San Jose, CA
CA Santa Clara, CA
7485 Santa Cruz, CA
CA Santa Cruz
7500 Santa Rosa
CA Sonoma
8720 Vallejo-Fairfield-Napa, CA
CA Napa; CA Solano
Non-SMSA Counties:
CA Lake; CA Mendocino; CA San Benito
177
Sacramento, CA:
SMSA Counties:
6920 Sacramento, CA
CA Placer; CA Sacramento; CA
Yolo Non-SMSA Counties
CA Butte; CA Colusa; CA El Dorado; CA Glenn; CA Nevada; CA Sierra; CA Sutter; CA Yuba
16.1 14.3
178
Stockton-Modesto, CA:
SMSA Counties:
5170 Modesto, CA 12.3
CA Stanislaus
8120 Stockton, CA
24.3 CA San Joaquin
Non-SMSA Counties 19.8
CA Alpine; CA Amador; CA Calaveras; CA Mariposa; CA Merced; CA Tuolumne
179
Fresno-Bakersfield, CA
SMSA Counties:
0680 Bakersfield, CA 19.1
CA Kern
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2840 Fresno, CA CA Fresno
Non-SMSA Counties:
CA Kings; CA Madera; CA Tulare
26.1 23.6
180
Los Angeles, CA:
SMSA Counties: 11.9
0360 Anaheim-Santa Ana-Garden Grove, CA
CA Orange 28.3
4480 Los Angeles-Long Beach, CA
CA Los Angeles 21.5
6000 Oxnard-Simi Valley-Ventura, CA
CA Ventura 19.0
6780 Riverside-San Bernardino-Ontario, CA
CA Riverside; CA San Bernardino 19.7
7480 Santa Barbara-Santa Maria-Lompoc, CA
CA Santa Barbara 24.6
Non-SMSA Counties
CA Inyo; CA Mono; CA San Luis Obispo
181
San Diego, CA:
SMSA Counties 16.9
7320 San Diego, CA
CA San Diego 18.2
Non-SMSA Counties
CA Imperial
For the last full week of July during which work is performed under the contract, the prime contractor and each non material-supplier subcontractor with a subcontract of $10,000 or more must complete Form FHWA PR-1391 (Appendix C to 23 CFR 230). Submit the forms by August 4.
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TITLE VI ASSURANCES
APPENDIX A
During the performance of this Agreement, the contractor, for itself, its assignees and successors in interest (hereinafter collectively referred to as CONTRACTOR) agrees as follows:
a. Compliance with Regulations: CONTRACTOR shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this agreement.
b. Nondiscrimination: CONTRACTOR, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub- applicants, includi ng procurements of materials and leases of equipment. CONTRACTOR shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations.
c. Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CONTRACTOR for work to be performed under a Sub- agreement, including procurements of materials or leases of equipment, each potential sub- applicant or supplier shall be notified by CONTRACTOR of the CONTRACTOR’S obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. d. Information and Reports: CONTRACTOR shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the recipient or FHWA to be pertinent to ascertain compliance with such Regulations or directives. Where any information required of CONTRACTOR is in the exclusive possession of another who fails or refuses to furnish this informatio n, CONTRACTOR shall so certify to the recipient or FHWA as appropriate, and shall set forth what efforts CONTRACTOR has made to obtain the information. e. Sanctions for Noncompliance: In the event of CONTRACTOR’s noncompliance with the nondiscrimination provisions of this agreement, the recipient shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
i. withholding of payments to CONTRACTOR under the Agreement within a reasonable period of time, not to exceed 90 days; and/or
ii. cancellation, termination or suspension of the Agreement, in whole or in part. f. Incorporation of Provisions: CONTRACTOR shall include the provisions of paragraphs (1) through (6) in every sub- agreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto.
CONTRACTOR shall take such action with respect to any sub- agreement or procurement as the recipient or FHWA may direct as a means of enforcing such provisions including sanctions Item 1K - Page 38
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for noncompliance, provided, however, that, in the event CONTRACTOR becomes involved in, or is threatened with, litigation with a sub- applicant or supplier as a result of such direction, CONTRACTOR may request the recipient enter into such litigation to protect the interests of the State, and, in addition, CONTRACTOR may request the United States to enter into such litigation to protect the interests of the United States.
APPENDIX E
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following non- discrimination statutes and authorities, including, but not limited to:
Pertinent Non-Discrimination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), prohibits discrimination on the basis of sex;
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal -aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations 49 C.F.R. parts 37 and 38; • The Federal Aviation Administration’s Non -discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low - Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes Item 1K - Page 39
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discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
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PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “C” – UNITED STATES FLAG VESSELS – PAGE 29 APRIL 2025
USE OF UNITED STATES-FLAG VESSELS
This provision is applicable to all Federal -aid construction contracts, design- build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381. This requirement applies to material or equipment that is acquired for a specific Federal -aid highway project. 46 CFR 381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.
The Contractor agrees:
1. To utilize privately owned United States -flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels. 46 CFR 381.7.
2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on- board’ commercial ocean bill -of- lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills - of-lading) and to the Office of Cargo and Commercial Sealift (MAR- 620), Maritime Administration, Washington, DC 20590. (MARAD requires copies of the ocean carrier's (master) bills of lading, certified onboard, dated, with rates and charges. These bills of lading may contain business sensitive information and therefore may be submitted directly to MARAD by the Ocean Transportation Intermediary on behalf of the contractor). 46 CFR 381.7.
3. To insert the substance of the provisions of this clause in all subcontracts issued pursuant to this contract.
Item 1K - Page 41
PSP BAGGAGE HANDLING IN-LINE SYSTEM PART VI – AGREEMENT CITY PROJECT NO. PSP-04
FEDERAL AID PROJECT NO. XXXX 5282(XXX) EXHIBIT “C” – DAVIS BACON WAGE DETERMINATION – PAGE 30 APRIL 2025
DAVIS BACON WAGE DETERMINATION
Item 1K - Page 42
"General Decision Number: CA20250025 03/28/2025
Superseded General Decision Number: CA20240025
State: California
Construction Types: Building, Heavy (Heavy and Dredging) and Highway
County: Riverside County in California.
BUILDING CONSTRUCTION PROJECTS; DREDGING PROJECTS (does not include hopper dredge work); HEAVY CONSTRUCTION PROJECTS (does not include water well drilling); HIGHWAY CONSTRUCTION PROJECTS Note: Contracts subject to the Davis-Bacon Act are generally required to pay at least the applicable minimum wage rate required under Executive Order 14026 or Executive Order 13658.
Please note that these Executive Orders apply to covered contracts entered into by the federal government that are subject to the Davis-Bacon Act itself, but do not apply to contracts subject only to the Davis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(1).
______________________________________________________________ |If the contract is entered |. Executive Order 14026 | |into on or after January 30, | generally applies to the | |2022, or the contract is | contract. | |renewed or extended (e.g., an |. The contractor must pay | |option is exercised) on or | all covered workers at | |after January 30, 2022: | least $17.75 per hour (or | | | the applicable wage rate | | | listed on this wage | | | determination, if it is | | | higher) for all hours | | | spent performing on the | | | contract in 2025. | |______________________________|_____________________________| |If the contract was awarded on|. Executive Order 13658 | |or between January 1, 2015 and| generally applies to the | |January 29, 2022, and the | contract. | |contract is not renewed or |. The contractor must pay all| |extended on or after January | covered workers at least | |30, 2022: | $13.30 per hour (or the | | | applicable wage rate listed| | | on this wage determination,| | | if it is higher) for all | | | hours spent performing on | | | that contract in 2025. | |______________________________|_____________________________| The applicable Executive Order minimum wage rate will be adjusted annually. If this contract is covered by one of the Executive Orders and a classification considered necessary for performance of work on the contract does not appear on this wage determination, the contractor must still submit a
conformance request.
Additional information on contractor requirements and worker protections under the Executive Orders is available at
http://www.dol.gov/whd/govcontracts.
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Modification Number Publication Date
0 01/03/2025
1 01/10/2025
2 01/24/2025
3 02/07/2025
4 02/21/2025
5 02/28/2025
6 03/28/2025
ASBE0005-002 09/01/2023
Rates Fringes
Asbestos Workers/Insulator
(Includes the application of
all insulating materials,
protective coverings,
coatings, and finishes to all
types of mechanical systems).....$ 49.58 25.27 Fire Stop Technician
(Application of Firestopping
Materials for wall openings
and penetrations in walls,
floors, ceilings and curtain
walls)...........................$ 36.97 20.36 ---------------------------------------------------------------- ASBE0005-004 07/04/2022
Rates Fringes
Asbestos Removal
worker/hazardous material
handler (Includes
preparation, wetting,
stripping, removal,
scrapping, vacuuming, bagging
and disposing of all
insulation materials from
mechanical systems, whether
they contain asbestos or not)....$ 23.52 13.37 ---------------------------------------------------------------- BOIL0092-003 01/01/2024
Rates Fringes
BOILERMAKER......................$ 51.98 42.11 ---------------------------------------------------------------- * BRCA0004-011 05/01/2024
Rates Fringes
BRICKLAYER; MARBLE SETTER........$ 45.53 20.29 *The wage scale for prevailing wage projects performed in Blythe, China lake, Death Valley, Fort Irwin, Twenty-Nine Palms, Needles and 1-15 corridor (Barstow to the Nevada State Line) will be Three Dollars ($3.00) above the
standard San Bernardino/Riverside County hourly wage rate ---------------------------------------------------------------- BRCA0018-004 06/01/2024
Rates Fringes
MARBLE FINISHER..................$ 43.38 15.36 4/24/25, 8:25 AM SAM.gov
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TILE FINISHER....................$ 37.96 13.77 TILE LAYER.......................$ 51.82 19.32 ---------------------------------------------------------------- * BRCA0018-010 09/01/2024
Rates Fringes
TERRAZZO FINISHER................$ 42.11 14.67 TERRAZZO WORKER/SETTER...........$ 49.62 15.26 ---------------------------------------------------------------- CARP0213-001 01/01/2024
Rates Fringes
CARPENTER
(1) Carpenter, Cabinet
Installer, Insulation
Installer, Hardwood Floor
Worker and acoustical
installer...................$ 48.86 22.88
(2) Millwright..............$ 49.36 22.88
(3) Piledrivermen/Derrick
Bargeman, Bridge or Dock
Carpenter, Heavy Framer,
Rock Bargeman or Scowman,
Rockslinger, Shingler
(Commercial)................$ 48.99 22.88
(4) Pneumatic Nailer,
Power Stapler...............$ 51.85 16.28
(5) Sawfiler...............$ 51.69 16.28
(6) Scaffold Builder.......$ 40.77 22.38
(7) Table Power Saw
Operator....................$ 51.70 16.28
FOOTNOTE: Work of forming in the construction of open cut sewers or storm drains, on operations in which horizontal lagging is used in conjunction with steel H-Beams driven or placed in pre- drilled holes, for that portion of a lagged trench against which concrete is poured, namely, as a
substitute for back forms (which work is performed by
piledrivers): $0.13 per hour additional.
---------------------------------------------------------------- CARP0213-002 07/01/2021
Rates Fringes
Diver
(1) Wet.....................$ 834.40 16.28
(2) Standby.................$ 445.84 16.28
(3) Tender..................$ 437.84 16.28
(4) Assistant Tender........$ 413.84 16.28
Amounts in ""Rates' column are per day
---------------------------------------------------------------- CARP0213-004 01/01/2024
Rates Fringes
Drywall
DRYWALL INSTALLER/LATHER....$ 48.86 22.88
STOCKER/SCRAPPER............$ 20.80 9.97
---------------------------------------------------------------- CARP0721-001 07/01/2021
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Rates Fringes
Modular Furniture Installer......$ 21.85 7.15 ---------------------------------------------------------------- ELEC0440-001 12/30/2024
Rates Fringes
ELECTRICIAN
INSIDE ELECTRICIAN..........$ 56.26 3%+28.48
INTELLIGENT TRANSPORTATION
SYSTEMS
Electrician................$ 36.99 3%+23.18
Technician.................$ 27.75 3%+23.18
ZONE PAY: Zone A: Free travel zone for all contractors
performing work in Zone A.
Zone B:Any work performed in Zone (B) shall add $12.00 per hour to the current wage scale. Zone (B) shall be the area from the eastern perimeter of Zone (A) to a line which runs north and south begininng at Little Morongo Canyon (San Bernardino/Riverside County Line), Southeast along the
Coachella Tunnels, Colorado River Aqueduct and Mecca
Tunnels to Pinkham Wash then South to Box Canyon Road, then southwest along Box Canyon Road to Highway 195 west onto 195 south to Highway 86 to Riverside/Imperial County Line. ---------------------------------------------------------------- ELEC1245-001 01/01/2025
Rates Fringes
LINE CONSTRUCTION
(1) Lineman; Cable splicer..$ 70.16 24.71
(2) Equipment specialist
(operates crawler
tractors, commercial motor
vehicles, backhoes,
trenchers, cranes (50 tons
and below), overhead &
underground distribution
line equipment).............$ 53.30 22.26
(3) Groundman...............$ 40.76 21.76
(4) Powderman...............$ 51.87 18.79
HOLIDAYS: New Year's Day, M.L. King Day, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day and day after Thanksgiving, Christmas Day
---------------------------------------------------------------- ELEV0018-001 01/01/2025
Rates Fringes
ELEVATOR MECHANIC................$ 69.43 38.435+a+b FOOTNOTE:
a. PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. b. PAID HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day.
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---------------------------------------------------------------- ENGI0012-004 08/01/2024
Rates Fringes
OPERATOR: Power Equipment
(DREDGING)
(1) Leverman................$ 64.10 38.75
(2) Dredge dozer............$ 58.13 38.75
(3) Deckmate................$ 58.02 38.75
(4) Winch operator (stern
winch on dredge)............$ 57.47 38.75
(5) Fireman-Oiler,
Deckhand, Bargeman,
Leveehand...................$ 56.93 38.75
(6) Barge Mate..............$ 57.54 38.75
---------------------------------------------------------------- ENGI0012-024 07/01/2023
Rates Fringes
OPERATOR: Power Equipment
(All Other Work)
GROUP 1....................$ 53.90 32.80
GROUP 2....................$ 54.68 32.80
GROUP 3....................$ 54.97 32.80
GROUP 4....................$ 56.46 32.80
GROUP 6....................$ 56.68 32.80
GROUP 8....................$ 56.79 32.80
GROUP 10....................$ 56.91 32.80
GROUP 12....................$ 57.08 32.80
GROUP 13....................$ 57.18 32.80
GROUP 14....................$ 57.21 32.80
GROUP 15....................$ 57.29 32.80
GROUP 16....................$ 57.41 32.80
GROUP 17....................$ 57.58 32.80
GROUP 18....................$ 57.68 32.80
GROUP 19....................$ 57.79 32.80
GROUP 20....................$ 57.91 32.80
GROUP 21....................$ 58.08 32.80
GROUP 22....................$ 58.18 32.80
GROUP 23....................$ 58.29 32.80
GROUP 24....................$ 58.41 32.80
GROUP 25....................$ 58.58 32.80
OPERATOR: Power Equipment
(Cranes, Piledriving &
Hoisting)
GROUP 1....................$ 55.25 32.80
GROUP 2....................$ 56.03 32.80
GROUP 3....................$ 56.32 32.80
GROUP 4....................$ 56.46 32.80
GROUP 5....................$ 56.68 32.80
GROUP 6....................$ 56.79 32.80
GROUP 7....................$ 56.91 32.80
GROUP 8....................$ 57.08 32.80
GROUP 9....................$ 57.25 32.80
GROUP 10....................$ 58.25 32.80
GROUP 11....................$ 59.25 32.80
GROUP 12....................$ 60.25 32.80
GROUP 13....................$ 61.25 32.80
OPERATOR: Power Equipment
(Tunnel Work)
GROUP 1....................$ 55.75 32.80
GROUP 2....................$ 56.53 32.80
GROUP 3....................$ 56.82 32.80
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GROUP 4....................$ 56.96 32.80
GROUP 5....................$ 57.18 32.80
GROUP 6....................$ 57.29 32.80
GROUP 7....................$ 57.41 32.80
PREMIUM PAY:
$10.00 per hour shall be paid on all Power Equipment Operator work on the followng Military Bases: China Lake Naval
Reserve, Vandenberg AFB, Point Arguello, Seely Naval Base, Fort Irwin, Nebo Annex Marine Base, Marine Corp Logistics Base Yermo, Edwards AFB, 29 Palms Marine Base and Camp
Pendleton
Workers required to suit up and work in a hazardous material environment: $2.00 per hour additional. Combination mixer and compressor operator on gunite work shall be classified as a concrete mobile mixer operator.
SEE ZONE DEFINITIONS AFTER CLASSIFICATIONS
POWER EQUIPMENT OPERATORS CLASSIFICATIONS
GROUP 1: Bargeman; Brakeman; Compressor operator; Ditch Witch, with seat or similar type equipment; Elevator
operator-inside; Engineer Oiler; Forklift operator
(includes loed, lull or similar types under 5 tons;
Generator operator; Generator, pump or compressor plant operator; Pump operator; Signalman; Switchman
GROUP 2: Asphalt-rubber plant operator (nurse tank
operator);Coil Tubing Rig Operator, Concrete mixer
operator-skip type; Conveyor operator; Fireman; Forklift operator (includes loed, lull or similar types over 5 tons; Hydrostatic pump operator; oiler crusher (asphalt or
concrete plant); Petromat laydown machine; PJU side dum jack; Screening and conveyor machine operator (or similar types); Skiploader (wheel type up to 3/4 yd. without
attachment); Tar pot fireman; Temporary heating plant
operator; Trenching machine oiler
GROUP 3: Asphalt-rubber blend operator; Bobcat or similar type (Skid steer); Equipment greaser (rack); Ford Ferguson (with dragtype attachments); Helicopter radioman (ground); Stationary pipe wrapping and cleaning machine operator
GROUP 4: Asphalt plant fireman; Backhoe operator (mini-max or similar type); Boring machine operator; Boxman or mixerman (asphalt or concrete); Chip spreading machine operator; Concrete cleaning decontamination machine operator;
Concrete Pump Operator (small portable);Direct Push
Operator (Geoprobe or similar types) Drilling machine
operator, small auger types (Texoma super economatic or similar types - Hughes 100 or 200 or similar types -
drilling depth of 30' maximum); Equipment greaser (grease truck); Guard rail post driver operator; Highline cableway signalman; Hydra-hammer-aero stomper; Micro Tunneling
(above ground tunnel); Power concrete curing machine
operator; Power concrete saw operator; Power-driven jumbo form setter operator; Power sweeper operator; Rock Wheel Saw/Trencher; Roller operator (compacting); Screed operator (asphalt or concrete); Trenching machine operator (up to 6 ft.); Vacuum or much truck
GROUP 6: Articulating material hauler; Asphalt plant
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engineer; Batch plant operator; Bit sharpener; Concrete joint machine operator (canal and similar type); Concrete planer operator; Dandy digger; Deck engine operator;
Derrickman (oilfield type); Drilling machine operator,
bucket or auger types (Calweld 100 bucket or similar types - Watson 1000 auger or similar types - Texoma 330, 500 or 600 auger or similar types - drilling depth of 45'
maximum); Drilling machine operator; Hydrographic seeder machine operator (straw, pulp or seed), Jackson track
maintainer, or similar type; Kalamazoo Switch tamper, or similar type; Machine tool operator; Maginnis internal full slab vibrator, Mechanical berm, curb or gutter(concrete or asphalt); Mechanical finisher operator (concrete,
Clary-Johnson-Bidwell or similar); Micro tunnel system
(below ground); Pavement breaker operator (truck mounted); Road oil mixing machine operator; Roller operator (asphalt or finish), rubber-tired earth moving equipment (single engine, up to and including 25 yds. struck); Self-propelled tar pipelining machine operator; Skiploader operator
(crawler and wheel type, over 3/4 yd. and up to and
including 1-1/2 yds.); Slip form pump operator (power
driven hydraulic lifting device for concrete forms);
Tractor operator-bulldozer, tamper-scraper (single engine, up to 100 h.p. flywheel and similar types, up to and
including D-5 and similar types); Tugger hoist operator (1 drum); Ultra high pressure waterjet cutting tool system operator; Vacuum blasting machine operator
GROUP 8: Asphalt or concrete spreading operator (tamping or finishing); Asphalt paving machine operator (Barber Greene or similar type); Asphalt-rubber distribution operator; Backhoe operator (up to and including 3/4 yd.), small ford, Case or similar types; Cable Bundling Machine Operator
(excluding handheld); Cable Trenching Machine Operator
(Spider Plow or similar types) Cast-in-place pipe laying machine operator; Combination mixer and compressor operator (gunite work); Compactor operator (self-propelled);
Concrete mixer operator (paving); Crushing plant operator; Drill Doctor; Drilling machine operator, Bucket or auger types (Calweld 150 bucket or similar types - Watson 1500, 2000 2500 auger or similar types - Texoma 700, 800 auger or similar types - drilling depth of 60' maximum); Elevating grader operator; Grade checker; Gradall operator; Grouting machine operator; Heavy-duty repairman; Heavy equipment robotics operator; Kalamazoo balliste regulator or similar type; Kolman belt loader and similar type; Le Tourneau blob compactor or similar type; Loader operator (Athey, Euclid, Sierra and similar types); Mobark Chipper or similar; Ozzie padder or similar types; P.C. slot saw; Pneumatic concrete placing machine operator (Hackley-Presswell or similar
type); Pumpcrete gun operator; RCM Cementing Unit Operator, Rail/Switch Grinder Operator (Harsco or similar types)
Rock Drill or similar types; Rotary drill operator
(excluding caisson type); Rubber-tired earth-moving
equipment operator (single engine, caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. up to and including 50 cu. yds. struck);
Rubber-tired earth-moving equipment operator (multiple
engine up to and including 25 yds. struck); Rubber-tired scraper operator (self-loading paddle wheel type-John
Deere, 1040 and similar single unit); Self- propelled curb and gutter machine operator; Shuttle buggy; Skiploader
operator (crawler and wheel type over 1-1/2 yds. up to and including 6-1/2 yds.); Soil remediation plant operator; Surface heaters and planer operator; Tractor compressor 4/24/25, 8:25 AM SAM.gov
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drill combination operator; Tractor operator (any type
larger than D-5 - 100 flywheel h.p. and over, or
similar-bulldozer, tamper, scraper and push tractor single engine); Tractor operator (boom attachments), Traveling pipe wrapping, cleaning and bendng machine operator;
Trenching machine operator (over 6 ft. depth capacity,
manufacturer's rating); trenching Machine with Road Miner attachment (over 6 ft depth capacity): Ultra high pressure waterjet cutting tool system mechanic; Water pull
(compaction) operator
GROUP 10: Drilling machine operator, Bucket or auger types (Calweld 200 B bucket or similar types-Watson 3000 or 5000 auger or similar types-Texoma 900 auger or similar
types-drilling depth of 105' maximum); Dual drum mixer, dynamic compactor LDC350 (or similar types); Monorail
locomotive operator (diesel, gas or electric); Motor
patrol-blade operator (single engine); Multiple engine
tractor operator (Euclid and similar type-except Quad 9 cat.); Rubber-tired earth-moving equipment operator (single engine, over 50 yds. struck); Pneumatic pipe ramming tool and similar types; Prestressed wrapping machine operator; Rubber-tired earth-moving equipment operator (single
engine, over 50 yds. struck); Rubber tired earth moving equipment operator (multiple engine, Euclid, caterpillar and similar over 25 yds. and up to 50 yds. struck), Tower crane repairman; Tractor loader operator (crawler and wheel type over 6-1/2 yds.); Woods mixer operator (and similar Pugmill equipment)
GROUP 12: Auto grader operator; Automatic slip form operator; Drilling machine operator, bucket or auger types (Calweld, auger 200 CA or similar types - Watson, auger 6000 or
similar types - Hughes Super Duty, auger 200 or similar types - drilling depth of 175' maximum); Hoe ram or similar with compressor; Mass excavator operator less tha 750 cu. yards; Mechanical finishing machine operator; Mobile form traveler operator; Motor patrol operator (multi-engine); Pipe mobile machine operator; Rubber-tired earth- moving equipment operator (multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck); Rubber-tired self- loading scraper operator (paddle-wheel-auger type self-loading - two (2) or more units)
GROUP 13: Rubber-tired earth-moving equipment operator
operating equipment with push-pull system (single engine, up to and including 25 yds. struck)
GROUP 14: Canal liner operator; Canal trimmer operator; Remote- control earth-moving equipment operator (operating a second piece of equipment: $1.00 per hour additional); Wheel excavator operator (over 750 cu. yds.)
GROUP 15: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple
engine-up to and including 25 yds. struck)
GROUP 16: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, over 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system
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(multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 17: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple engine, Euclid, Caterpillar and similar, over 50 cu. yds. struck); Tandem tractor operator (operating crawler type tractors in tandem - Quad 9 and similar type)
GROUP 18: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, up to and including 25 yds. struck)
GROUP 19: Rotex concrete belt operator (or similar types); Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar types in any
combination, excluding compaction units - single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds.and up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment
operator, operating in tandem (scrapers, belly dumps and similar types in any combination, excluding compaction
units - multiple engine, up to and including 25 yds. struck) GROUP 20: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating in tandem
(scrapers, belly dumps, and similar types in any
combination, excluding compaction units - multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 21: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck)
GROUP 22: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, up to and including 25 yds. struck)
GROUP 23: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, Caterpillar, Euclid, Athey Wagon and
similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating with the tandem push-pull system (multiple engine, up to and including 25 yds. struck)
GROUP 24: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 25: Concrete pump operator-truck mounted; Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
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Caterpillar and similar type, over 50 cu. yds. struck); Spyder Excavator Operator, with all attachments
CRANES, PILEDRIVING AND HOISTING EQUIPMENT CLASSIFICATIONS GROUP 1: Engineer oiler; Fork lift operator (includes loed, lull or similar types)
GROUP 2: Truck crane oiler
GROUP 3: A-frame or winch truck operator; Ross carrier
operator (jobsite)
GROUP 4: Bridge-type unloader and turntable operator;
Helicopter hoist operator
GROUP 5: Hydraulic boom truck; Stinger crane (Austin-Western or similar type); Tugger hoist operator (1 drum)
GROUP 6: Bridge crane operator; Cretor crane operator; Hoist operator (Chicago boom and similar type); Lift mobile
operator; Lift slab machine operator (Vagtborg and similar types); Material hoist and/or manlift operator; Polar
gantry crane operator; Self Climbing scaffold (or similar type); Shovel, backhoe, dragline, clamshell operator (over 3/4 yd. and up to 5 cu. yds. mrc); Tugger hoist operator GROUP 7: Pedestal crane operator; Shovel, backhoe, dragline, clamshell operator (over 5 cu. yds. mrc); Tower crane
repair; Tugger hoist operator (3 drum)
GROUP 8: Crane operator (up to and including 25 ton
capacity); Crawler transporter operator; Derrick barge
operator (up to and including 25 ton capacity); Hoist
operator, stiff legs, Guy derrick or similar type (up to and including 25 ton capacity); Shovel, backhoe, dragline, clamshell operator (over 7 cu. yds., M.R.C.)
GROUP 9: Crane operator (over 25 tons and up to and including 50 tons mrc); Derrick barge operator (over 25 tons up to and including 50 tons mrc); Highline cableway operator; Hoist operator, stiff legs, Guy derrick or similar type (over 25 tons up to and including 50 tons mrc); K-crane operator; Polar crane operator; Self erecting tower crane operator maximum lifting capacity ten tons
GROUP 10: Crane operator (over 50 tons and up to and
including 100 tons mrc); Derrick barge operator (over 50 tons up to and including 100 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 50 tons up to and including 100 tons mrc), Mobile tower crane operator (over 50 tons, up to and including 100 tons M.R.C.);
GROUP 11: Crane operator (over 100 tons and up to and
including 200 tons mrc); Derrick barge operator (over 100 tons up to and including 200 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 100 tons up to and including 200 tons mrc); Mobile tower crane operator (over 100 tons up to and including 200 tons mrc) ; Tower crane operator and tower gantry
GROUP 12: Crane operator (over 200 tons up to and including 300 tons mrc); Derrick barge operator (over 200 tons up to and including 300 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 200 tons, up to and
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including 300 tons mrc); Mobile tower crane operator (over 200 tons, up to and including 300 tons mrc)
GROUP 13: Crane operator (over 300 tons); Derrick barge operator (over 300 tons); Helicopter pilot; Hoist operator, stiff legs, Guy derrick or similar type (over 300 tons); Mobile tower crane operator (over 300 tons)
TUNNEL CLASSIFICATIONS
GROUP 1: Skiploader (wheel type up to 3/4 yd. without
attachment)
GROUP 2: Power-driven jumbo form setter operator
GROUP 3: Dinkey locomotive or motorperson (up to and
including 10 tons)
GROUP 4: Bit sharpener; Equipment greaser (grease truck); Slip form pump operator (power-driven hydraulic lifting device for concrete forms); Tugger hoist operator (1 drum); Tunnel locomotive operator (over 10 and up to and including 30 tons)
GROUP 5: Backhoe operator (up to and including 3/4 yd.); Small Ford, Case or similar; Drill doctor; Grouting machine operator; Heading shield operator; Heavy-duty repairperson; Loader operator (Athey, Euclid, Sierra and similar types); Mucking machine operator (1/4 yd., rubber-tired, rail or track type); Pneumatic concrete placing machine operator (Hackley-Presswell or similar type); Pneumatic heading
shield (tunnel); Pumpcrete gun operator; Tractor compressor drill combination operator; Tugger hoist operator (2 drum); Tunnel locomotive operator (over 30 tons)
GROUP 6: Heavy Duty Repairman
GROUP 7: Tunnel mole boring machine operator
ENGINEERS ZONES
$1.00 additional per hour for all of IMPERIAL County and the portions of KERN, RIVERSIDE & SAN BERNARDINO Counties as defined below:
That area within the following Boundary: Begin in San
Bernardino County, approximately 3 miles NE of the intersection of I-15 and the California State line at that point which is the NW corner of Section 1, T17N,m R14E, San Bernardino Meridian. Continue W in a straight line to that point which is the SW corner of the northwest quarter of Section 6, T27S, R42E, Mt. Diablo Meridian. Continue North to the intersection with the Inyo County Boundary at that point which is the NE corner of the western half of the northern quarter of Section 6, T25S, R42E, MDM. Continue W along the Inyo and San
Bernardino County boundary until the intersection with Kern County, as that point which is the SE corner of Section 34, T24S, R40E, MDM. Continue W along the Inyo and Kern County boundary until the intersection with Tulare County, at that point which is the SW corner of the SE quarter of Section 32, T24S, R37E, MDM. Continue W along the Kern and Tulare County boundary, until that point which is the NW corner of T25S, R32E, MDM. Continue S following R32E lines to the NW corner of T31S, R32E, MDM. Continue W to the NW corner of T31S, R31E, MDM. Continue S to the SW corner of T32S, R31E, MDM. Continue 4/24/25, 8:25 AM SAM.gov
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W to SW corner of SE quarter of Section 34, T32S, R30E, MDM.
Continue S to SW corner of T11N, R17W, SBM. Continue E along south boundary of T11N, SBM to SW corner of T11N, R7W, SBM.
Continue S to SW corner of T9N, R7W, SBM. Continue E along south boundary of T9N, SBM to SW corner of T9N, R1E, SBM.
Continue S along west boundary of R1E, SMB to Riverside County line at the SW corner of T1S, R1E, SBM. Continue E along south boundary of T1s, SBM (Riverside County Line) to SW corner of T1S, R10E, SBM. Continue S along west boundary of R10E, SBM to Imperial County line at the SW corner of T8S, R10E, SBM.
Continue W along Imperial and Riverside county line to NW corner of T9S, R9E, SBM. Continue S along the boundary between Imperial and San Diego Counties, along the west edge of R9E, SBM to the south boundary of Imperial County/California state line. Follow the California state line west to Arizona state line, then north to Nevada state line, then continuing NW back to start at the point which is the NW corner of Section 1, T17N, R14E, SBM
$1.00 additional per hour for portions of SAN LUIS OBISPO, KERN, SANTA BARBARA & VENTURA as defined below:
That area within the following Boundary: Begin approximately 5 miles north of the community of Cholame, on the Monterey County and San Luis Obispo County boundary at the NW corner of T25S, R16E, Mt. Diablo Meridian. Continue south along the west side of R16E to the SW corner of T30S, R16E, MDM. Continue E to SW corner of T30S, R17E, MDM. Continue S to SW corner of T31S, R17E, MDM. Continue E to SW corner of T31S, R18E, MDM.
Continue S along West side of R18E, MDM as it crosses into San Bernardino Meridian numbering area and becomes R30W. Follow the west side of R30W, SBM to the SW corner of T9N, R30W, SBM.
Continue E along the south edge of T9N, SBM to the Santa Barbara County and Ventura County boundary at that point whch is the SW corner of Section 34.T9N, R24W, SBM, continue S along the Ventura County line to that point which is the SW corner of the SE quarter of Section 32, T7N, R24W, SBM. Continue E along the south edge of T7N, SBM to the SE corner to T7N, R21W, SBM. Continue N along East side of R21W, SBM to Ventura County and Kern County boundary at the NE corner of T8N, R21W.
Continue W along the Ventura County and Kern County boundary to the SE corner of T9N, R21W. Continue North along the East edge of R21W, SBM to the NE corner of T12N, R21W, SBM. Continue West along the north edge of T12N, SBM to the SE corner of T32S, R21E, MDM. [T12N SBM is a think strip between T11N SBM and T32S MDM]. Continue North along the East side of R21E, MDM to the Kings County and Kern County border at the NE corner of T25S, R21E, MDM, continue West along the Kings County and Kern County Boundary until the intersection of San Luis Obispo County. Continue west along the Kings County and San Luis Obispo County boundary until the intersection with Monterey County. Continue West along the Monterey County and San Luis Obispo County boundary to the beginning point at the NW corner of T25S, R16E, MDM.
$2.00 additional per hour for INYO and MONO Counties and the Northern portion of SAN BERNARDINO County as defined below:
That area within the following Boundary: Begin at the
intersection of the northern boundary of Mono County and the California state line at the point which is the center of Section 17, T10N, R22E, Mt. Diablo Meridian. Continue S then SE along the entire western boundary of Mono County, until it reaches Inyo County at the point which is the NE corner of the 4/24/25, 8:25 AM SAM.gov
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Western half of the NW quarter of Section 2, T8S, R29E, MDM.
Continue SSE along the entire western boundary of Inyo County, until the intersection with Kern County at the point which is the SW corner of the SE 1/4 of Section 32, T24S, R37E, MDM.
Continue E along the Inyo and Kern County boundary until the intersection with San Bernardino County at that point which is the SE corner of section 34, T24S, R40E, MDM. Continue E along the Inyo and San Bernardino County boundary until the point which is the NE corner of the Western half of the NW quarter of Section 6, T25S, R42E, MDM. Continue S to that point which is the SW corner of the NW quarter of Section 6, T27S, R42E, MDM.
Continue E in a straight line to the California and Nevada state border at the point which is the NW corner of Section 1, T17N, R14E, San Bernardino Meridian. Then continue NW along the state line to the starting point, which is the center of Section 18, T10N, R22E, MDM.
REMAINING AREA NOT DEFINED ABOVE RECIEVES BASE RATE
---------------------------------------------------------------- IRON0433-006 01/01/2025
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IRONWORKER
Fence Erector...............$ 45.78 26.51
Ornamental, Reinforcing
and Structural..............$ 50.70 35.15
PREMIUM PAY:
$9.00 additional per hour at the following locations:
China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland,
Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center
Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- LABO0300-005 07/01/2024
Rates Fringes
Asbestos Removal Laborer.........$ 43.88 25.13 SCOPE OF WORK: Includes site mobilization, initial site cleanup, site preparation, removal of asbestos-containing material and toxic waste, encapsulation, enclosure and
disposal of asbestos- containing materials and toxic waste by hand or with equipment or machinery; scaffolding,
fabrication of temporary wooden barriers and assembly of decontamination stations.
---------------------------------------------------------------- LABO0345-001 07/01/2024
Rates Fringes
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LABORER (GUNITE)
GROUP 1.....................$ 53.48 22.77
GROUP 2.....................$ 52.53 22.77
GROUP 3.....................$ 48.99 22.77
FOOTNOTE: GUNITE PREMIUM PAY: Workers working from a
Bosn'n's Chair or suspended from a rope or cable shall receive 40 cents per hour above the foregoing applicable classification rates. Workers doing gunite and/or
shotcrete work in a tunnel shall receive 35 cents per hour above the foregoing applicable classification rates, paid on a portal-to-portal basis. Any work performed on, in or above any smoke stack, silo, storage elevator or similar type of structure, when such structure is in excess of 75'-0"" above base level and which work must be performed in whole or in part more than 75'-0"" above base level, that work performed above the 75'-0"" level shall be compensated for at 35 cents per hour above the applicable
classification wage rate.
GUNITE LABORER CLASSIFICATIONS
GROUP 1: Rodmen, Nozzlemen
GROUP 2: Gunmen
GROUP 3: Reboundmen
---------------------------------------------------------------- LABO1184-001 07/01/2024
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Laborers: (HORIZONTAL
DIRECTIONAL DRILLING)
(1) Drilling Crew Laborer...$ 45.34 20.06
(2) Vehicle Operator/Hauler.$ 45.51 20.06
(3) Horizontal Directional
Drill Operator..............$ 47.36 20.06
(4) Electronic Tracking
Locator.....................$ 49.36 20.06
Laborers: (STRIPING/SLURRY
SEAL)
GROUP 1.....................$ 46.65 23.17
GROUP 2.....................$ 47.95 23.17
GROUP 3.....................$ 49.96 23.17
GROUP 4.....................$ 51.70 23.17
LABORERS - STRIPING CLASSIFICATIONS
GROUP 1: Protective coating, pavement sealing, including repair and filling of cracks by any method on any surface in parking lots, game courts and playgrounds; carstops; operation of all related machinery and equipment; equipment repair technician
GROUP 2: Traffic surface abrasive blaster; pot tender - removal of all traffic lines and markings by any method (sandblasting, waterblasting, grinding, etc.) and
preparation of surface for coatings. Traffic control
person: controlling and directing traffic through both
conventional and moving lane closures; operation of all related machinery and equipment
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GROUP 3: Traffic delineating device applicator: Layout and application of pavement markers, delineating signs, rumble and traffic bars, adhesives, guide markers, other traffic delineating devices including traffic control. This
category includes all traffic related surface preparation (sandblasting, waterblasting, grinding) as part of the
application process. Traffic protective delineating system installer: removes, relocates, installs, permanently
affixed roadside and parking delineation barricades,
fencing, cable anchor, guard rail, reference signs,
monument markers; operation of all related machinery and equipment; power broom sweeper
GROUP 4: Striper: layout and application of traffic stripes and markings; hot thermo plastic; tape traffic stripes and markings, including traffic control; operation of all
related machinery and equipment
---------------------------------------------------------------- LABO1184-002 07/01/2022
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LABORER (TUNNEL)
GROUP 1.....................$ 45.68 23.30
GROUP 2.....................$ 46.00 23.30
GROUP 3.....................$ 46.46 23.30
GROUP 4.....................$ 47.15 23.30
LABORER
GROUP 1.....................$ 36.39 21.04
GROUP 2.....................$ 36.94 21.04
GROUP 3.....................$ 37.49 21.04
GROUP 4.....................$ 39.04 21.04
GROUP 5.....................$ 39.39 21.04
LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete screeding for rough strike-off; Concrete, water curing; Demolition laborer, the cleaning of brick if performed by a worker performing any other phase of demolition work, and the cleaning of lumber; Fire watcher, limber, brush loader, piler and debris handler; Flag person; Gas, oil and/or
water pipeline laborer; Laborer, asphalt-rubber material loader; Laborer, general or construction; Laborer, general clean-up; Laborer, landscaping; Laborer, jetting; Laborer, temporary water and air lines; Material hose operator
(walls, slabs, floors and decks); Plugging, filling of shee bolt holes; Dry packing of concrete; Railroad maintenance, repair track person and road beds; Streetcar and railroad construction track laborers; Rigging and signaling; Scaler; Slip form raiser; Tar and mortar; Tool crib or tool house laborer; Traffic control by any method; Window cleaner; Wire mesh pulling - all concrete pouring operations
GROUP 2: Asphalt shoveler; Cement dumper (on 1 yd. or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute handler, pouring concrete, the handling of the chute from readymix trucks, such as walls, slabs, decks, floors, foundation, footings, curbs, gutters and sidewalks; Concrete curer, impervious membrane and form oiler; Cutting torch operator (demolition); Fine grader, highways and street paving, airport, runways and similar type heavy construction; Gas, oil and/or water
pipeline wrapper - pot tender and form person; Guinea
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chaser; Headerboard person - asphalt; Laborer, packing rod steel and pans; Membrane vapor barrier installer; Power broom sweeper (small); Riprap stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Sandblaster (pot tender); Septic tank digger and installer(lead); Tank scaler and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh chipper and similar type brush
shredder; Underground laborer, including caisson bellower GROUP 3: Buggymobile person; Concrete cutting torch; Concrete pile cutter; Driller, jackhammer, 2-1/2 ft. drill steel or longer; Dri-pak-it machine; Gas, oil and/or water pipeline wrapper, 6-in. pipe and over, by any method, inside and out; High scaler (including drilling of same); Hydro seeder and similar type; Impact wrench multi-plate; Kettle person, pot person and workers applying asphalt, lay-kold,
creosote, lime caustic and similar type materials
(""applying"" means applying, dipping, brushing or handling of such materials for pipe wrapping and waterproofing); Operator of pneumatic, gas, electric tools, vibrating
machine, pavement breaker, air blasting, come-alongs, and similar mechanical tools not separately classified herein; Pipelayer's backup person, coating, grouting, making of joints, sealing, caulking, diapering and including rubber gasket joints, pointing and any and all other services; Rock slinger; Rotary scarifier or multiple head concrete chipping scarifier; Steel headerboard and guideline setter; Tamper, Barko, Wacker and similar type; Trenching machine, hand-propelled
GROUP 4: Asphalt raker, lute person, ironer, asphalt dump person, and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), grinder or sander; Concrete saw person, cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Head rock
slinger; Laborer, asphalt- rubber distributor boot person; Laser beam in connection with laborers' work; Oversize
concrete vibrator operator, 70 lbs. and over; Pipelayer performing all services in the laying and installation of pipe from the point of receiving pipe in the ditch until completion of operation, including any and all forms of tubular material, whether pipe, metallic or non-metallic, conduit and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid gas, air, or other product whatsoever and without regard to the nature of material from which the tubular material is fabricated; No-joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster
(nozzle person), water blasting, Porta Shot-Blast
GROUP 5: Blaster powder, all work of loading holes, placing and blasting of all powder and explosives of whatever type, regardless of method used for such loading and placing; Driller: All power drills, excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills without regard to the form of motive power; Toxic waste removal
TUNNEL LABORER CLASSIFICATIONS
GROUP 1: Batch plant laborer; Changehouse person; Dump
person; Dump person (outside); Swamper (brake person and switch person on tunnel work); Tunnel materials handling person; Nipper; Pot tender, using mastic or other materials 4/24/25, 8:25 AM SAM.gov
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(for example, but not by way of limitation, shotcrete, etc.) GROUP 2: Chucktender, cabletender; Loading and unloading agitator cars; Vibrator person, jack hammer, pneumatic
tools (except driller); Bull gang mucker, track person; Concrete crew, including rodder and spreader
GROUP 3: Blaster, driller, powder person; Chemical grout jet person; Cherry picker person; Grout gun person; Grout mixer person; Grout pump person; Jackleg miner; Jumbo person; Kemper and other pneumatic concrete placer operator; Miner, tunnel (hand or machine); Nozzle person; Operating of
troweling and/or grouting machines; Powder person (primer house); Primer person; Sandblaster; Shotcrete person; Steel form raiser and setter; Timber person, retimber person, wood or steel; Tunnel Concrete finisher
GROUP 4: Diamond driller; Sandblaster; Shaft and raise work ---------------------------------------------------------------- LABO1184-004 07/01/2024
Rates Fringes
Brick Tender.....................$ 41.53 22.54 ---------------------------------------------------------------- LABO1414-001 08/03/2022
Rates Fringes
LABORER
PLASTER CLEAN-UP LABORER....$ 38.92 23.32
PLASTER TENDER..............$ 41.47 23.32
Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- PAIN0036-001 07/01/2023
Rates Fringes
Painters: (Including Lead
Abatement)
(1) Repaint (excludes San
Diego County)...............$ 29.59 17.12
(2) All Other Work..........$ 38.52 18.64
REPAINT of any previously painted structure. Exceptions:
work involving the aerospace industry, breweries,
commercial recreational facilities, hotels which operate commercial establishments as part of hotel service, and sports facilities.
---------------------------------------------------------------- PAIN0036-008 09/01/2024
Rates Fringes
DRYWALL FINISHER/TAPER...........$ 49.33 26.82 ---------------------------------------------------------------- * PAIN0036-015 01/01/2025
Rates Fringes
GLAZIER..........................$ 53.05 30.64 4/24/25, 8:25 AM SAM.gov
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Item 1K - Page 59
FOOTNOTE: Additional $1.25 per hour for work in a condor, from the third (3rd) floor and up Additional $1.25 per hour for work on the outside of the building from a swing stage or any suspended contrivance, from the ground up
---------------------------------------------------------------- PLAS0200-009 08/03/2022
Rates Fringes
PLASTERER........................$ 47.37 19.64 ---------------------------------------------------------------- PLAS0500-002 07/01/2023
Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 44.00 27.11 ---------------------------------------------------------------- PLUM0016-001 09/01/2024
Rates Fringes
PLUMBER/PIPEFITTER
Work ONLY on new additions
and remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space.................$ 57.67 25.63
Work ONLY on strip malls,
light commercial, tenant
improvement and remodel
work........................$ 44.24 23.96
All other work except work
on new additions and
remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space and work on
strip malls, light
commercial, tenant
improvement and remodel
work........................$ 59.48 26.61
---------------------------------------------------------------- PLUM0345-001 09/01/2023
Rates Fringes
PLUMBER
Landscape/Irrigation Fitter.$ 40.20 25.90
Sewer & Storm Drain Work....$ 44.29 23.28
---------------------------------------------------------------- ROOF0036-002 08/01/2024
Rates Fringes
ROOFER...........................$ 49.43 20.58 FOOTNOTE: Pitch premium: Work on which employees are exposed to pitch fumes or required to handle pitch, pitch base or pitch impregnated products, or any material containing coal tar pitch, the entire roofing crew shall receive $1.75 per hour ""pitch premium"" pay.
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Item 1K - Page 60
---------------------------------------------------------------- SFCA0669-002 01/01/2025
Rates Fringes
SPRINKLER FITTER.................$ 47.45 28.50 ---------------------------------------------------------------- SHEE0105-003 01/01/2025
LOS ANGELES (South of a straight line drawn between Gorman and Big Pines)and Catalina Island, INYO, KERN (Northeast part, East of Hwy 395), MONO ORANGE, RIVERSIDE, AND SAN BERNARDINO COUNTIES Rates Fringes
SHEET METAL WORKER
(1) Commercial - New
Construction and Remodel
work........................$ 59.31 30.43
(2) Industrial work
including air pollution
control systems, noise
abatement, hand rails,
guard rails, excluding
aritechtural sheet metal
work, excluding A-C,
heating, ventilating
systems for human comfort...$ 56.95 30.04
---------------------------------------------------------------- TEAM0011-002 07/01/2024
Rates Fringes
TRUCK DRIVER
GROUP 1....................$ 39.59 34.34
GROUP 2....................$ 39.74 34.34
GROUP 3....................$ 39.87 34.34
GROUP 4....................$ 40.06 34.34
GROUP 5....................$ 40.09 34.34
GROUP 6....................$ 40.12 34.34
GROUP 7....................$ 40.37 34.34
GROUP 8....................$ 40.62 34.34
GROUP 9....................$ 40.82 34.34
GROUP 10....................$ 41.12 34.34
GROUP 11....................$ 41.62 34.34
GROUP 12....................$ 42.05 34.34
WORK ON ALL MILITARY BASES:
PREMIUM PAY: $3.00 per hour additional.
[29 palms Marine Base, Camp Roberts, China Lake, Edwards AFB, El Centro Naval Facility, Fort Irwin, Marine Corps
Logistics Base at Nebo & Yermo, Mountain Warfare Training Center, Bridgeport, Point Arguello, Point Conception, Vandenberg AFB]
TRUCK DRIVERS CLASSIFICATIONS
GROUP 1: Truck driver
GROUP 2: Driver of vehicle or combination of vehicles - 2 axles; Traffic control pilot car excluding moving heavy equipment permit load; Truck mounted broom
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Item 1K - Page 61
GROUP 3: Driver of vehicle or combination of vehicles - 3 axles; Boot person; Cement mason distribution truck; Fuel truck driver; Water truck - 2 axle; Dump truck, less than 16 yds. water level; Erosion control driver
GROUP 4: Driver of transit mix truck, under 3 yds.; Dumpcrete truck, less than 6-1/2 yds. water level
GROUP 5: Water truck, 3 or more axles; Truck greaser and tire person ($0.50 additional for tire person); Pipeline and utility working truck driver, including winch truck and plastic fusion, limited to pipeline and utility work;
Slurry truck driver
GROUP 6: Transit mix truck, 3 yds. or more; Dumpcrete truck, 6-1/2 yds. water level and over; Vehicle or combination of vehicles - 4 or more axles; Oil spreader truck; Dump truck, 16 yds. to 25 yds. water level
GROUP 7: A Frame, Swedish crane or similar; Forklift driver; Ross carrier driver
GROUP 8: Dump truck, 25 yds. to 49 yds. water level; Truck repair person; Water pull - single engine; Welder
GROUP 9: Truck repair person/welder; Low bed driver, 9 axles or over
GROUP 10: Dump truck - 50 yds. or more water level; Water pull - single engine with attachment
GROUP 11: Water pull - twin engine; Water pull - twin engine with attachments; Winch truck driver - $1.25 additional when operating winch or similar special attachments
GROUP 12: Boom Truck 17K and above
---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at
https://www.dol.gov/agencies/whd/government-contracts.
Unlisted classifications needed for work not included within 4/24/25, 8:25 AM SAM.gov
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Item 1K - Page 62
the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (iii)).
---------------------------------------------------------------- The body of each wage determination lists the classifications and wage rates that have been found to be prevailing for the type(s) of construction and geographic area covered by the wage determination. The classifications are listed in alphabetical order under rate identifiers indicating whether the particular rate is a union rate (current union negotiated rate), a survey rate, a weighted union average rate, a state adopted rate, or a supplemental classification rate.
Union Rate Identifiers
A four-letter identifier beginning with characters other than ""SU"", ""UAVG"", ?SA?, or ?SC? denotes that a union rate was prevailing for that classification in the survey. Example:
PLUM0198-005 07/01/2024. PLUM is an identifier of the union whose collectively bargained rate prevailed in the survey for this classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. The date, 07/01/2024 in the example, is the effective date of the most current negotiated rate.
Union prevailing wage rates are updated to reflect all changes over time that are reported to WHD in the rates
in the collective bargaining agreement (CBA) governing the classification.
Union Average Rate Identifiers
The UAVG identifier indicates that no single rate prevailed for those classifications, but that 100% of the data reported for the classifications reflected union rates. EXAMPLE:
UAVG-OH-0010 01/01/2024. UAVG indicates that the rate is a weighted union average rate. OH indicates the State of Ohio.
The next number, 0010 in the example, is an internal number used in producing the wage determination. The date, 01/01/2024 in the example, indicates the date the wage determination was updated to reflect the most current union average rate.
A UAVG rate will be updated once a year, usually in January, to reflect a weighted average of the current rates in the
collective bargaining agreements on which the rate is based.
Survey Rate Identifiers
The ""SU"" identifier indicates that either a single non-union rate prevailed (as defined in 29 CFR 1.2) for this
classification in the survey or that the rate was derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As a weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SUFL2022-007 6/27/2024. SU indicates the rate is a single non-union
prevailing rate or a weighted average of survey data for that classification. FL indicates the State of Florida. 2022 is the year of the survey on which these classifications and rates are 4/24/25, 8:25 AM SAM.gov
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Item 1K - Page 63
based. The next number, 007 in the example, is an internal number used in producing the wage determination. The date, 6/27/2024 in the example, indicates the survey completion date for the classifications and rates under that identifier. ?SU? wage rates typically remain in effect until a new survey is conducted. However, the Wage and Hour Division (WHD) has the discretion to update such rates under 29 CFR 1.6(c)(1).
State Adopted Rate Identifiers
The ""SA"" identifier indicates that the classifications and prevailing wage rates set by a state (or local) government were adopted under 29 C.F.R 1.3(g)-(h). Example: SAME2023-007 01/03/2024. SA reflects that the rates are state adopted. ME refers to the State of Maine. 2023 is the year during which the state completed the survey on which the listed classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination.
The date, 01/03/2024 in the example, reflects the date on which the classifications and rates under the ?SA? identifier took effect under state law in the state from which the rates were adopted.
-----------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1) Has there been an initial decision in the matter? This can be:
a) a survey underlying a wage determination
b) an existing published wage determination
c) an initial WHD letter setting forth a position on
a wage determination matter
d) an initial conformance (additional classification
and rate) determination
On survey related matters, initial contact, including requests for summaries of surveys, should be directed to the WHD Branch of Wage Surveys. Requests can be submitted via email to [email protected] or by mail to:
Branch of Wage Surveys
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
Regarding any other wage determination matter such as
conformance decisions, requests for initial decisions should be directed to the WHD Branch of Construction Wage Determinations.
Requests can be submitted via email to [email protected] or by mail to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2) If an initial decision has been issued, then any interested party (those affected by the action) that disagrees with the decision can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). 4/24/25, 8:25 AM SAM.gov
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Item 1K - Page 64
Requests for review and reconsideration can be submitted via email to [email protected] or by mail to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue.
3) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210.
================================================================ END OF GENERAL DECISION"
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Item 1K - Page 65
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
ACCEPTANCE OF THE AIRPORT TAXIWAY REHABILITATION, CITY PROJECT 21-27
RECOMMENDATION:
Accept the public works improvement identified as the Airport Taxiway Rehabilitation, City Project 21-27, as completed in accordance with the plans and specifications;
1. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the Airport Taxiway Rehabilitation, City Project 21-27; and
2. Authorize the City Manager to execute all necessary documents.3.
Attachments
Item 1L
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF THE AIRPORT TAXIWAY REHABILITATION , CITY PROJECT 21-27
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
Engineering Services
SUMMARY:
Construction of the Airport Taxiway Rehabilitation , CP 21 -27 (the “Project”), has been completed. Formal City Council acceptance of the Project is required to document the completion of public works improvements and to allow the City’s filing of a Notice of Completion with the Riverside County Recorder in accordance with Section 9200 of the California Civil Code.
RECOMMENDATION:
1. Accept the public works improvement identified as the Airport Taxiway Rehabilitation, City Project 21-27, as completed in accordance with the plans and specifications;
2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the Airport Taxiway Rehabilitation , City Project 21-27; and
3. Authorize the City Manager to execute all necessary documents.
BACKGROUND:
On July 9, 2024, the City Council awarded a construction contract to Matich Corporation in the amount of $7,281,255 with a 10% contingency for the Project in the amount of $728,122. The initial scope of work comprise d of a 4” -5” mill and overlay pavement rehabilitation for Taxiway W and Taxiway A1 at Palm Springs International Airport. The Project is shown on Figure 1.
Item 1L - Page 1
City Council Staff Report
June 11, 2025 -- Page 2
Acceptance of Airport Taxiway Rehab – City Project 21-27
Figure 1 – Site Vicinity Map
STAFF ANALYSIS:
Construction of the Project started August 27, 2024, and was determined to be substantially completed on April 15, 2025. Since construction started, there have been three (3) previous contract change orders (CCO) totaling $346,616.31 to address additional taxiway pavement rehabilitation, signage relocation, and pavement markings.
Staff recommends City Council accept the completed Project as required by Section 9200 of the California Civil Code and authorize the City Engineer to file and record a Notice of Completion to be submitted to the County. A copy of the Notice of Completion is included as Attachment A.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff has determined that the Airport Taxiway Rehabilitation, City Project No. 21-27, is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
This Project aligns with the City Council’s Broad Goal of Infrastructure and Facilities.
Item 1L - Page 2
City Council Staff Report
June 11, 2025 -- Page 3
Acceptance of Airport Taxiway Rehab – City Project 21-27
FISCAL IMPACT:
There is one (1) balancing change order in the amount of ($ 644,215.59) included as Attachment B. This change order results in a credit to the Project due to decreases in the itemized scope of wor k. With the modifications to the Project, the final construction cost is $6,971,941.88. The City is holding retention funds in the amount of $331,264.78 for Matich Corporation pending the filing of the Notice of Completion with the County Recorder’s Office.
REVIEWED BY:
City Engineer: Joel Montalvo
Executive Director of Aviation: Harry Barrett Jr.
Deputy City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Notice of Completion
B. Final Balancing Change Order
Item 1L - Page 3
Attachment A
Item 1L - Page 4
Name
Street
Address
City &
State
SPACE ABOVE THIS LINE FOR RECORDERS USE
NOTICE OF COMPLETION
(CA Civil Code §§ 8180-8190, 8100-8118, 9200-9208)
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is an owner of an interest of estate in the hereinafter described real property, the nature of which interest or estate is:
_________________________________________________________________________________ (e.g. fee, leasehold, joint tenancy , etc.)
2. The full name and address of the undersigned owner or reputed owner and of all co -owners or reputed co -owners are:
Name Street and No. City State
__________________________________________________________________________________________________________
3. The name and address of the direct contractor for the work of improvement as a whole is:
__________________________________________________________________________________________________________
4. This notice is given for (check one):
Completion of the work of improvement as a whole.
Completion of a contract for a particular portion of the work of improvement (per CA Civ. Code § 8186).
5. If this notice is given only of completion of a contract for a particular portion of the work of improvement (as provided in CA Civ. Code § 8186), the name and address of the direct contractor under that contract is:
___________________________________________________________________________________________________________
6. The name and address of the construction lender, if any, is:
___________________________________________________________________________________________________________
7. On the ____________ day of ___________, 20___, there was completed upon the herei n described property a work of improvement as a whole (or a particular portion of the work of improvement as provided in CA Civ. Code § 8186) a general description of the work provided:
___________________________________________________________________________________________________________
8. The real property herein referred to is situated in the City of __________________________, County of _______________________ _ State of California, and is described as follows:
___________________________________________________________________________________________________________
9. The street address of said property is:
___________________________________________________________________________________________________________
10. If this Notice of Completion is signed by the owner’s successor in interest, the name and address of the successor’s transferor is:
___________________________________________________________________________________________________________ I certify (or declare) under pe nalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date: _______________________________________ By: ________________________________________________________ Signature of Owner or Owner’s Authorized Agent
City of Palm Springs
Recording Requested By:
When Recorded Mail To:
Item 1L - Page 5
VERIFICATION
I, _______________________________________________, state: I am the ________________________________ __ (“Owner∫, “President”, “Authorized Agent”, “Partner”, etc.) of the O
wner identified
in the foregoing Notice of Completion. I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge.
I declare und
er penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on _______________________, _______ (date), at ____ ___________________________________________ ______ (City), ________ (State). ______________________________________________________
Signature of Owner or Owner’s Authorized Agent
Joel Montalvo/City Engineer
City of Palm Springs
STATE OF CALIFORNIA
COUNTY OF ______________________________________
On _____________________________ ____________, ________ (date), before me, ________________________________ ____________, Notary Public (name and title of officer) personally appeared __________________________________________who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorize d capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PURJURY under the laws of the State of California that the foregoing paragraph is true and correct.
Witness my hand and official seal.
_____________________________________________
Signature
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Item 1L - Page 6
Attachment B
Item 1L - Page 7
CITY OF PALM SPRINGS
CONTRACT CHANGE ORDER NO. 4
CP 21-27 Airport Taxiway Rehabilitation Project
Contractor: Matich Corporation Date: June 11, 2025
CONTRACT CHANGE ORDER SUMMARY
This lump sum Contract Change Order No. 4 is for the Airport Taxiway Rehabilitation Project . This change reflects the increase in the extra work done on Taxiway Golf and Taxiway Lami. AECOM and RS&H have both reviewed and approved the proposed change order. During construction, several line items were not used or billed to completion. This balancing order will address those line items.
CONTRACT CHANGE ORDER COST
ID Description Qty Unit Cost
01 Itemized Project Extra Work 1 LS $11,713.84
02 Credit for line items not performed 1 LS $(655,929.43) Total Lump Sum Change Order Amount: $(644,215.59)
CHANGES TO CONTRACT TIME
The contractor is requesting no working days to be added to the contract time.
SOURCE OF FUNDS
Sufficient funds are available in the Airport Capital Improvement Projects Fund.
SUMMARY OF COSTS
Original Contract Amount: $7,281,225.00 Construction Start Date: 08/27/2024 Previous Change Orders:
$346,616.31
Previous Agreed Completion Date: 04/15/2025
This Change Order Amount: $(655,929.43) Working Days Added: 0 Revised Contract Amount: $6,971,941.88 Revised Completion: 04/15/2025
Item 1L - Page 8
11 I I I I
I have received a copy of this Change Order, and the above AGREED PRICES are acceptable.
Matich Corporation
Jake Reade, Vice President Date
City of Palm Springs
Approved By:
Harry Barrett Jr., Executive Director PSP Date
Attest By:
Brenda Pree, City Clerk Date
Item 1L - Page 9
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
ACCEPTANCE OF THE HIGHWAY SAFETY IMPROVEMENT PROJECT (CYCLE 8), FEDERAL-AID PROJECT NO. HSIPL-5282 (047), CITY PROJECT NO. 16-18 RECOMMENDATION:
Accept the public works improvement identified as the Highway Safety Improvement Project (Cycle 8), City Project No. 16-18 (“Project”), as completed in accordance with the plans and specifications; and
1. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for installation of the Highway Safety Improvement Project (Cycle 8), City Project No. 16-18.
2. Attachments
Item 1M
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF THE HIGHWAY SAFETY IMPROVEMENT PROJECT (CYCLE 8), FEDERAL -AID PROJECT NO. HSIPL -5282 (047 ), CITY PROJECT NO. 16-18
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Formal City Council acceptance of the subject project is required to document the completion of public works improvements and to allow the City’s filing of a Notice of Completion with the Riverside County Recorder in accordance with Section 9200 of the California Civil Code.
RECOMMENDATION:
1. Accept the public works improvement identified as the Highway Safety Improvement Project (Cycle 8), City Project No. 16-18 (“Project”), as completed in accordance with the plans and specifications; and
2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for installation of the Highway Safety Improvement Project (Cycle 8), City Project No. 16-18.
BACKGROUND:
On March 23, 2023, the City Council awarded a construction contract in the amount of $3,485,843 to Select Electric, Inc. for the Highway Safety Improvement Project (Cycle 8), City Project No. 1 6-18. After award of the contract, submittals were reviewed and approved, followed by ordering of long lead items. Due to the length of time to manufacture and deliver material, construction started September 25, 2023. A Project Location Map is included as Attachment A.
STAFF ANALYSIS:
Construction of the Project began September 25, 2023, and was determined to be substantially completed on April 3, 2025. Note, throughout construction of the Project, there were two Notice of Suspensions due to material delays and design modifications Item 1M - Page 1
City Council Staff Report
May 28, 2025 -- Page 2
Acceptance of HSIP Cycle No.8, CP 16-18
stemming from unforeseen conditions in the field. There is one (1) Contract Change Order (CCO) for this Project , CCO No.1 in the amount of $96,685.98 , which addresses the additional work caused by overlapping construction projects, unforeseen utility conflicts, and necessary plan changes. A copy of CCO No.1 i s included as Attachment B. Staff recommends that the City Council accept the Project as required by Section 9200 of the California Civil Code and authorize the City Engineer to file and record a Notice of Completion to be submitted to the County. A copy of the Notice of Completion is included as Attachment C.
ENVIRONMENTAL ASSESSMENT
:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects include repairs, maintenance, and minor alteration of existing public structures. Therefore, this Project is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
City Council Broad Goal s of Infrastructure and Facilities, and Public Safety and Community Services.
FISCAL IMPACT:
The final construction cost is $ 3,582,528.98. The City has $348,584 in contingency to cover the increase of $96,685.98 . The City is holding retention in the amount of $165,266.80, pending the acceptance of improvements and filing the Notice of Completion with the County Recorder’s Office. The Project account will be closed out upon final payment to the Contractor.
REVIEWED BY:
City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Project Location Map
B. Final Balancing Contract Change Order No.1
C. Notice of Completion
Item 1M - Page 2
Item 1M - Page 3
Attachment A
Item 1M - Page 4
Project Location Map
~
Tr 3: _J r
L.,.J
~ ,_
~· t-=> <C
I~
1. N. Palm Canyon Dr./San Rafael Dr. 8. S. Palm Canyon/Ramon Rd.
2. N. Indian Canyon Dr./San Rafael Dr. 9. Ramon Rd./Farrell Dr.
3. N. Indian Canyon Dr.Nista Chino 10. Ramon Rd.Nella Rd./Kirk Douglas Way
4. Sunrise WayNista Chino 11. Gene Autry Trail/Ramon Rd.
5. Gene Autry TrailNista Chino 12. Ramon Rd./San Luis Rey Dr.
6. Clubhouse ViewNista Chino 13. S. Palm Canyon Dr./Mesquite Ave.
7. N. Indian Canyon Dr./Tachevah Dr. 14. Gene Autry Trail/Mesquite Ave/Dinah Shore Dr.
Attachment B
Item 1M - Page 5
CITY OF PALM SPRINGS
FINAL BALANCING CONTRACT CHANGE ORDER NO. 1
CP 16-18, Traffic Signal and ADA Improvement Project,
HSIP Cycle 8 – Federal Project No. HSIPL 5282(047)
Contractor: Select Electric, Inc. Date: June 11, 2025
CONTRACT CHANGE ORDER SUMMARY
This final balancing Change Order No. 1 sets forth decreases in costs due to “Actual” measured Final Quantities that were used being different than the estimated Bid Quantities shown on the Bid Proposal due to changes on plans or quantities lesser than engineers estimate. This also addresses the additional work that was required to be completed due to a change in Scope of Work caused by design issues with overlap from other projects, verified utility conflicts, issues with exist ing conduits, plan changes, and other reasons identified below for work not in contract. After verifying the issues and conflicts, the Contractor was either instructed to perform work on Time and Materials and / or provide price quotes. After the work was completed and approved, the Contractor submitted his cost for the work and the prices were negotiated and revised. Select Electric, Inc.
CONTRACT CHANGE ORDER COST
COR# Description of Extra Work Type Cost
1 Palm Canyon / San Rafael – Contractor had to break out &chip foundation down at Poles G & E that conflicted with the new foundation after re-potholing. Work was out of contract and performed on T&M. One (1) day added to contract time. Price negotiated and revised from original amount of $5,614.98.
T&M $4,249.88
2 Palm Canyon / San Rafael – Contractor had to break out & chip foundation down at Poles J & F that conflicted with the new foundation after re -potholing. Work was out of contract and performed on T&M. One (1) day added to contract time. Price negotiated and revised from original amount of $5,246.15.
T&M $3,881.04
3 Palm Canyon / San Rafael – Contractor had re -potholed Pole A to relocate due to utility conflict that conflicted with the new foundation. Encountered existing 10” -12” steel water line. Needed to backfill and meet with Water Company (DWA) to confirm. Work w as out of contract and performed on T&M. One (1) day added to contract time. Verified in the field by Inspector. Price negotiated and revised from original amount of $5,508.62.
T&M $4,143.52
6 Palm Canyon / San Rafael – On 11/14/2023, Contractor added 2” Conduit SCH 80 for a new loop run on the south/east corner going east down Palm Cyn. Due to existing conduit to be used being full and old corroded steel. Work not in contract and performed on T&M. One (1) day added to contract time. Work verified in the field by Inspector. Price negotiated and revised from original amount of $9,822.39.
T&M $8,457.30
8 Palm Canyon / San Rafael – Contractor cut and connected 2” conduit that was added from previous box install and added a No. 5 Pull box that was not on plans and in contract. T&M.
One (1) day added. Work performed on T&M and verified in the field by Inspector.
T&M $2,445.25
9 Palm Canyon/Mesquite – Contractor had to saw cut around existing pull boxes to remove # 3 and #5 boxes to allow for new cable to be rerouted and installed to new pull box #5 location added. Contractor backfilled, compacted and placed asphalt. Work was not in contract and One (1) day added to contract time. All work verified by field inspector.
T&M $1,927.14
12 S. Palm Canyon / Mesquite – Boring Operation could not be performed on 12/18/2023 due to large boulders encountered which required open cut of the street to try to remove boulders and continue boring for conduit run across street. The contractor tried to c ontinue to only get part way across the street. It started to rain this day and the contractor needed to stop and reschedule. NO days added to contract time for this work since future T&M work was approved to open cut street and trench across same location to add conduit.
T&M $8,332.00
Item 1M - Page 6
COR# Description of Extra Work Type Cost
13 S. Palm Canyon / Mesquite – Boring Operation was rescheduled for 12/19/2023 and again could not be performed due to more large boulders encountered which required open cut of street to try to remove boulders and continue boring for conduit run across stree t. The contractor tried to continue to only get part way across the street. Field decision made to open cut the street to complete the work. No Days added to contract time for this work since future T&M work was approved to open cut the street and trench a cross same location to add the conduit. Work verified by field inspector.
T&M $8,332.00
14 Palm Canyon / San Rafael – Contractor cut out abandoned Water Line 12” Steel to allow for Pole A and Re -potholed for irrigation lines to be re -routed clear of foundation and grouted the end of the water line that was abandoned per DWA. One (1) Day added to contract time for this work. Work verified by Field Inspector.
T&M $6,142.05
15 Palm Canyon / San Rafael – Trenched and Installed 2” conduit for Loop Run due to crews being unable to pull through existing conduit that was full and blocked. The existing run was 1 ½” GRC and rusted. Work was not a part of contract and performed on T&M and observed by the Field Inspector. One (1) Day added to contract Time.
T&M $2,555.03
18 S. Palm Canyon / Mesquite – Boring operation for new service run could not be completed again due to boulders encountered on S/E corner heading across Palm Canyon. Decision made to proceed with future T&M to open cut the street and install conduit. Work not part of contract. One (1) day added to contract time and all work observed by the Field Inspector.
T&M $4,697.71
19 S. Palm Canyon / Mesquite – Contractor saw cut existing sidewalk, removed sidewalk on S/E corner heading south and open trenched the street section with a backhoe, installed 2” conduit for section of new Edison run to cabinet. Work not part of contract and performed on T&M and observed by the Field Inspector. One (1) day added to contract time for work.
T&M $6,848.28
20 S. Palm Canyon / Mesquite – Contractor performed saw cut across Palm Canyon for added crossing for conduit and wires from S/E corner to S/W corner to be completed after. Work is not part of contract and performed on T&M and observed by Field Inspector. One (1) day added to contract days.
T&M $2,880.07
21 S. Palm Canyon / Mesquite – On 3/20/2024, Contractor removed sawcut asphalt at a portion of the street crossing, addition of 30’ of new 4” conduit for traffic signal run. Crew trenched with a backhoe and started from the existing pull box #5. Work is not p art of contract and is being performed on T&M and observed by the Field Inspector. One (1) Day added to contract days. Price negotiated and revised from original amount of $5,122.25 due to rate.
T&M $4,950.86
22 S. Palm Canyon / Mesquite – On 3/21/2024, Contractor removed sawcut asphalt at a portion of the street crossing for the addition of 20’ of new 4” conduit for traffic signal run. Crew trenched with a backhoe and continued across Palm Canyon from the existing pull box #5.
Work is not part of contract and was performed on T&M and observed by the Field Inspector.
One (1) Day added to contract. Work offset by other work credit at Palm Canyon/Ramon.
T&M $5,078.06
23 S. Palm Canyon / Mesquite – On 3/26/2024, Contractor removed sawcut asphalt at the last section of the street crossing for the addition of 30’ of new 4” conduit for traffic signal run.
Crew trenched with a backhoe and started from the existing pull box #5. Backfilled trench section and installed temporary asphalt. Work is not part of contract and performed on T&M and observed by the Field Inspector. One (1) Day added to contract days.
T&M $5,574.01
24 Palm Canyon / San Rafael and Tramway – Contractor saw cut and removed sidewalk panels to install a 2” PVC Conduit loop run on S/W side of San Rafael. Work was not in contract and performed on T&M. One (1) additional day added to contract time and work observed by inspector in the field. Work negotiated and revised from $3,993.48 due to work being done per contract in multiple locations at other intersections
T&M $2,584.39
25 S. Palm Canyon / Mesquite – On 5/06/24, Contractor completed asphalt restoration after trenching & conduit installation was completed. Removed existing temporary asphalt, t - cut trench and installed new asphalt at 1/3 of the street to allow continuous traffic flow. Work is not part of contract and performed on T&M and observed by the Field Inspector. One (1) Day added to contract days.
T&M $11,027.03
Item 1M - Page 7
COR# Description of Extra Work Type Cost
26 S. Palm Canyon / Mesquite – On 5/07/24, Contractor completed the asphalt restoration after the trenching and conduit installation was completed. Removed existing temporary asphalt, t-cut trench and installed new asphalt at 1/3 of the street to allow continuous traffic flow.
Work is not part of contract and performed on T&M and observed by the Field Inspector.
One (1) Day added to contract days.
T&M $10,518.54
27 S. Palm Canyon / Mesquite – On 5/08/24, Contractor completed the asphalt restoration after the trenching and conduit installation was completed. Removed existing temporary asphalt, t-cut trench and installed new asphalt at 1/3 of the street to allow continuous traffic flow.
Work is not part of contract and performed on T&M and observed by the Field Inspector.
One (1) Day added to contract days.
T&M $10,014.43
28 S. Palm Canyon / Mesquite – Contractor saw cut and removed sidewalk and re -poured sidewalk after adding 2” conduit for Edison. Work is not part of contract and performed on T&M and observed by the Field Inspector. One (1) Day added to contract days. See at tached backup documentation.
T&M $7,291.20
29 Ramon Rd./San Luis Rey – Contractor separated electrical circuits, installed No. 5 Pull Box, and pulled new wires for streetlights, controller and signal lights on the north -east corner.
Work is not part of contract and performed on T&M and observed by the Field Inspector.
One (1) Day added to contract. See attached documentation and T&M work tickets.
T&M $4,720.22
30 - 36
N. Palm Canyon and Tramway – Contractor completed work at this location to open cut the existing street, excavate a trench, install new conduit and wire to existing Edison Pedestal to provide power due to design error that showed a different pick -up point and conduit that was not existing as shown. Original estimate for the work was $65,000.00, T&M work resulted in a savings of over $13,400.00. Tickets:
- No. 30 – Sawcut, pothole on S/C for Conduit - $5,863.63 - No. 31 – Trench for new 2” Sch 80 at 50’, added service run - $7,347.70 - No. 32 – Open trenched for new 2” SCH 80 at 88’ lin. Feet - $7,426,98 - No. 33 - Open trenched for new 2” SCH 80 at 50’ lin. Feet - $7,208.74 - No. 34 – Install base coarse AC at utility trench after conduit - $10,276.36 - No. 35 – Installed Cap Coarse asphalt at 2” service run - $8,880.71 - No. 36 – Installed new service wires into new conduit. - $4,542.62 Seven (7) Days added to contract. See attached documentation and T&M work Tickets.
T&M $51,546.74
37-40
Ramon Road and Gene Autry – Contractor removed existing sidewalk and pull box that was two (2”) too high, cut down the box and new concrete pad was poured. Concrete was poured around added pull box, installed a new push button foundation. Existing APS wire s and conductors were abandoned and 1” conduit was terminated and conduit in box cut down.
Work took place on T&M from 11/13/2024 – 11/18-2024 for a total of (4) added days to contract. Work was not in original contract and observed by the field inspector.
T&M $12,028.89
41 Dinah Shore and Gene Autry – Contractor added push button post on the N/W corner at this location due to design error where Pole A having to be relocated and was no longer in ADA compliance. Work included foundation, pole installed, wire, and set new post. Work was completed on T&M and observed in the field by the inspector. One (1) day added to contract.
T&M $4,283.44
42 Dinah Shore and Gene Autry – Contractor added push button and post on N/E corner due to Pole D not on plans. Work included foundation, pole installed, wire, and set new post. Work was completed on T&M and observed in the field by the inspector. One (1) day added to contract days.
T&M $2,887.50
43 Tramway and San Rafael – Contractor relocated one (1) existing Pull Box out of new designed ADA ramp that was NOT shown on plans due to conflict. Included relocate 3” conduit and wire to new box location. Work was completed on T&M and observed in the field by the inspector. One (1) day added to contract.
T&M $3,179.91
Item 1M - Page 8
COR# Description of Extra Work Type Cost
44 N. Palm Canyon and Tramway – Contractor relocated existing pull box and service conductor out of new designed ADA ramp that was NOT shown on plans due to conflict. Included relocate 3” conduit and wire to new box location. Work was completed on T&M and observed in the field by the inspector. One (1) day added to contract days.
T&M $6,228.49
45 Revised Cost for Cameras ONLY cost for Revised Delta for Re -Ordering Cameras. (Add to this Change Order). No days added to contract days. LS $5,282.00 46 This Change is due to the relocation of all planned equipment and work required on the original plans at the intersection of Indian Canyon Drive and Tachevah Drive - Item #39 (Page 23-Plans) having to be relocated to Gene Autry Trail and E. Vista Chino (Page 21 -As-built plans) due to conflicts with other CVAG and City project work that had already been installed as per the City’s direction. All work was verified in the field and tracked.
LS $52,356.00
47 This change was due to work that was completed at various locations as work that was exchanged for work not completed at S. Palm Cyn./ Ramon Road intersection due to project overlap with CVAG and City projects. The As -built plans reflect the added quantiti es and the quantities were deducted from this location as identified below as a cost savings to the City.
All work was verified and measured in the field as added : 3” Schedule 80 PVC (200’ LF), 4” Schedule 80 PVC (100’ LF), #6 Pull Boxes (5 EA), #6E Pull Box (1 EA).
N/A $12,750.00
Total of Project Change Orders = $277,192.98
Item Description of Credits Bid Cost Total Billed Decrease 13 Relocate Existing Water Meter per DWA Std. Dwg. W127 $16,581.00 $0.00 ($16,581.00) 33 N. Palm Canyon Drive (Hwy 111)/San Rafael Dr. $418,145.00 $412,145.00 ($6,000.00) 36 E. Vista Chino (Hwy 111) / N. Sunrise Way $148,069.00 $145, 569.00 ($2,500.00) 39 N. Indian Canyon Drive / Tachevah Drive $52,365.00 $0.00 ($52,356.00) 40 S. Palm Canyon Drive / Ramon Road $98,070.00 $5,000.00 ($93,070.00) 50 Field Orders $10,000.00 $0.00 ($10,000.00)
Total Project Credits = (180,507.00)
(Total Extra Work @ $277,192.98) – (Total Project Credit @ $180,507.00) = Total Change Order = $96,685.98
CHANGES TO CONTRACT TIME
Thirty-five (35) Calendar Days were be added to the contract time due to unforeseen utility conflicts, design errors, plan revisions, items not in scope, and changes requested by the City.
SUMMARY OF COSTS
Original Contract Amount: $3,485,843.00 Construction Start Date: 9/25/2023 Previous Change Orders: $0.00 Previous Agreed Completion Date: 08/13/2024 This Change Order Amount: $96,685.98 Calendar Days Added: 35 Revised Contract Amount: $3,582,528.98 Revised Completion with pauses 04/03/2025
- SIGNATURES ON THE FOLLOWING PAGE -
Item 1M - Page 9
I have received a copy of this Change Order and the above AGREED PRICES are acceptable to Contractor.
Select Electric, Inc.
James Staab, President
Date
City of Palm Springs
Recommended By:
Joel Montalvo, City Engineer Date
Approved By:
Scott C. Stiles, City Manager
Date
Attest By:
Brenda Pree, City Clerk Date
Item 1M - Page 10
Attachment C
Item 1M - Page 11
Name
Street
Address
City &
State
SPACE ABOVE THIS LINE FOR RECORDERS USE
NOTICE OF COMPLETION
(CA Civil Code §§ 8180-8190, 8100-8118, 9200-9208)
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is an owner of an interest of estate in the hereinafter described real property, the nature of which interest or estate is:
_________________________________________________________________________________ (e.g. fee, leasehold, joint tenancy , etc.)
2. The full name and address of the undersigned owner or reputed owner and of all co -owners or reputed co -owners are:
Name Street and No. City State
__________________________________________________________________________________________________________
3. The name and address of the direct contractor for the work of improvement as a whole is:
__________________________________________________________________________________________________________
4. This notice is given for (check one):
Completion of the work of improvement as a whole.
Completion of a contract for a particular portion of the work of improvement (per CA Civ. Code § 8186).
5. If this notice is given only of completion of a contract for a particular portion of the work of improvement (as provided in CA Civ. Code § 8186), the name and address of the direct contractor under that contract is:
___________________________________________________________________________________________________________
6. The name and address of the construction lender, if any, is:
___________________________________________________________________________________________________________
7. On the ____________ day of ___________, 20___, there was completed upon the herei n described property a work of improvement as a whole (or a particular portion of the work of improvement as provided in CA Civ. Code § 8186) a general description of the work provided:
___________________________________________________________________________________________________________
8. The real property herein referred to is situated in the City of __________________________, County of _______________________ _ State of California, and is described as follows:
___________________________________________________________________________________________________________
9. The street address of said property is:
___________________________________________________________________________________________________________
10. If this Notice of Completion is signed by the owner’s successor in interest, the name and address of the successor’s transferor is:
___________________________________________________________________________________________________________ I certify (or declare) under pe nalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date: _______________________________________ By: ________________________________________________________ Signature of Owner or Owner’s Authorized Agent
City of Palm Springs
Recording Requested By:
When Recorded Mail To:
City of Palm Springs
Brenda Pree, City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Fee
City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs CA 92262 Select Electric Inc 1700 E Via Burton St. Anaheim, CA 92806 ✔
Not Applicable
Not Applicable
3 April
25 Highway Safety Improvement Project (HSIP Cycle 8) - CP 16-18 Palm Springs
Riverside
HSIP Cycle 8 includes 14 separate intersections throughout the city of Palm Springs Not applicable
Joel Montalvo/City Engineer
Item 1M - Page 12
VERIFICATION
I, _______________________________________________, state: I am the ________________________________ __ (“Owner”, “President”, “Authorized Agent”, “Partner”, etc.)
of the Owner identified in the foregoing Notice of Completion. I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge.
I dec
lare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on _______________________, _______ (date ), at _______________________________________________ ______ (City), ________ (State). ______________________________________________________
Signature of Owner or Owner’s Authorized Agen
Joel Montalvo/City Engineer
City of Palm Springs
PROOF OF SERVICE DECLARATION
a.
b.
c.
_____________________________________________________________ (Signature of Person Making Service)
STATE OF CALIFORNIA
COUNTY OF ______________________________________
On _____________________________ ____________, ________ (date), before me, ________________________________ ____________, Notary Public (name and title of officer) personally appeared __________________________________________who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorize d capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PURJURY under the laws of the State of California that the foregoing paragraph is true and correct.
Witness my hand and official seal.
_____________________________________________
Signature
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Joel Montalvo
City Engineer
Palm Springs
CA
Item 1M - Page 13
Item 1M - Page 14
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L118 WITH WORLDWIDE FLIGHT SERVICES, INC. FOR TERMINAL USE SPACE AT
PALM SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATION:
Approve the Airport Non-Exclusive Operating and Lease Agreement No. 25L118 with Worldwide Flight Services, Inc. for the lease of 240 square feet of office space at $133.04 per square foot per year, effective March 1, 2025 through February 28, 2026, with two (2) one-year options to extend.
1. Authorize the City Manager or designee to execute all necessary documents.2.
Attachments
Item 1N
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L118 WITH WORLDWIDE FLIGHT SERVICES , INC . FOR
TERMINAL USE SPACE AT PALM SPRINGS INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve the Non-Exclusive Operating and Lease Agreement (Agreement) with Worldwide Flight Services , Inc . for office space use in the terminal at the Palm Springs International Airport (Airport) in support of the company’s ground services and the airline’s operations.
RECOMMENDATION:
1. Approve the Airport Non-Exclusive Operating and Lease Agreement No. 25L118 with Worldwide Flight Services, Inc. (Attachment A) for the lease of 240 square feet of office space at $133.04 per square foot per year, effective March 1, 2025 through February 28, 2026, with two (2) one-year options to extend.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B ), Worldwide Flight Services, Inc . is a Delaware Corporation licensed to do business in the City of Palm Springs.
BACKGROUND:
The majority of Palm Springs International Airport airlines contract with specialized service providers for passenger ticketing services, ground and airline services, as well as baggage delivery services to accommodate their passengers.
The Airport currently has four (4) airlines that operate only seasonal service to Palm Item 1N - Page 1
City Council Staff Report
June 11, 2025 -- Page 2
Non-Exclusive Operating and Lease Agreement with Worldwide Flight Services, Inc.
Springs. Allegiant Airlines is one of these airlines. Airlines that operate only seasonally must rely upon ground service companies like Worldwide Flight Services, Inc. (WFS) to provide passenger ticketing, check-in, and baggage services for these seasonal flights.
Worldwide Flight Services’ current Non- Exclusive Operating and Lease Agreement expired on August 31, 2024. WFS is currently in a month-to-month holdover period.
STAFF ANALYSIS:
Worldwide Flight Services, Inc . is under contract with Allegiant Airlines and desires to continue to lease airport office space adjacent to the ticketing area inside the terminal, more specifically room M -163-S. The existing square footage of the premises used by WFS is 240 square feet. Effective March 1, 2025, t he terminal office lease rate shall increase to $133.04 per square foot per annum with CPI adjustments each July 1st.
WFS has been offering flight and passenger services to the airlines since January of 2015. WFS has been a good tenant of the Airport and has provided consistent service to their airline customers.
In addition to the Non-Exclusive Operating and Lease Agreement for terminal use space, WFS also possesses a valid Commercial Activity Permit with the Airport . Th e permit grants WFS the privilege to conduct Commercial Airline Service activities at the Airport in exchange for a Commercial Service Fee. The current Commercial Service Fee at Palms Springs International Airport is 7% of the gross revenues of the Commercial Activity Permit holder. This Commercial Service Fee is in addition to the office space lease rent collected under this Agreement.
ENVIRONMENTAL ASSESSMENT
:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above- mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council’s Broad Goal of Economic Development as well as the Airport’s Strategic Plan Priority 3 – Goal 2: Create Revenue Diversification Through Strategic Partnerships.
Item 1N - Page 2
City Council Staff Report
June 11, 2025 -- Page 3
Non-Exclusive Operating and Lease Agreement with Worldwide Flight Services, Inc.
FISCAL IMPACT:
Approval of this action will result in the generation of Airport Revenues of $31,929.60 for the lease term of March 1, 2025, through February 28, 2026, to Airport Fund 415.38100 – Airline Terminal / Joint Use Fee. The Agreement provides for two extension options. If the two extensions are exercised, the revenue would continue through February 29, 2028, as adjusted annually on July 1 in an amount equal to the increase in the consumer price index for All- Urban Consumers (CPI -U) in the Riverside -San Bernardino- Ontario Metropolitan Statistical Area (MSA).
The Commercial Service Fees generated by Worldwide Flight Services for FY 2025 are estimated to be $17,000. In projecting continuation of commercial activities at the Airport, Commercial Service Fees from Worldwide Flight Services are estimated to be $17 ,500 for FY 2026 and $18,000 for FY 2027
REVIEWED BY:
Executive Director of Aviation: Harry Barrett Jr.
City Attorney: Geremy Holm
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Airport Non-Exclusive Operating Lease Agreement Worldwide Flight Services B. Public Integrity Disclosure
Item 1N - Page 3
ATTACHMENT A
LEASE AGREEMENT
Item 1N - Page 4
1 WORLDWIDE FLIGHT SERVICES, INC. 25L118
NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
FOR TERMINAL USE SPACE AT
PALM SPRINGS INTERNATIONAL AIRPORT
THIS LEASE (“Lease”) is made and entered into this 1st day of March, 2025, by and between the CI TY OF PALM SPRINGS, a municipal corporation (“ Lessor”), and WORLDWIDE FLIGHT SERVICES, INC., a Delaware Corporation (“Lessee”). City and Lessee may herein be referred to individually as a “Party” and collectively as “Parties.”
R E C I T A L S:
A. Lessor desires to lease terminal use space at Palm Springs International Airport (“Airport”) to operate a Commercial Aeronautical Activity, which services includes passenger ticketing, baggage delivery services, ground services, and aircraft services for airline passengers.
B. City believes that the travelers using the City’s airport terminal would benefit from these airline related services.
NOW THEREFORE, City and Lessee mutually agree as follows:
AGREEMENT
1.0 LEASE SUMMARY. Certain fundamental lease provisions are presented in this Section and represent the agreement of the parties hereto, subject to further definition and elaboration in the respective referenced Sections and elsewhere in this Lease. In the event of any conflict between any fundamental lease provision and the balance of this Lease, the latter shall control. References to specific Sections are for convenience only and designate some of the Sections where references to the particular fundamental lease provisions may appear.
1.1 Demised Premises . The “Demised Premises ” shall refer to that certain property consisting of terminal space totaling approximately 240 square feet , located in the Palm Springs International Airport terminal building and more particularly described in Exhibit “A” attached hereto.
1.2 Lease Term. The term of this lease shall commence on March 1, 2025 and shall terminate on February 28, 2026.
1.3 Extension Option. Lessee may have the right to renew the Lease for two (2), one (1) year terms which may be exercised by providing written notice to Lessor no less than sixty (60) prior to the expiration of the Lease term or renewal period. The rental payments for any extension shall be calculated as indicated in Section 1.4.
Item 1N - Page 5
2 1.4 Lease Rental Payments. The rent for the Demised Premises is at a Rate of $133.04 per square foot per annum for office space, paid in monthly increments of $2,660.80 due on the first day of each month. The monthly rent shall be adjusted July 1st of each year in an amount equal to the increase in the consumer price index for All - Urban Consumers (CPI -U) in the Riverside -San Bernardino- Ontario Metropolitan Statistical Area (MSA), as published by the Bureau of Labor Statistics, its successor, or substantively similar, widely adopted measurement of cost inflation for the Palm Springs region. The rent shall be escalated annually, effective each July 1st, using CPI-U indices comparing January of the prior year to January of the current year. City shall send written notice of the applicable rent increase of each successive year along with documentation evidencing the calculation used to arrive at the figure.
1.5 Extension Options. Extension options in this lease as noted in Section
1.3. 1.6 Security Deposit. N/A
1.7 Use of Premises. Lessee shall use and occupy the Premises for the purpose of administrative services/office/employee workspace related to the Commercial Aeronautical Activities only.
Lessor: City of Palm Springs
Attn: City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Cc: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite 1
Palm Springs, CA 92262
2.0 TERM
2.1 Term. The term of this Lease shall commence on the date specified in Section 1.2 (“Commencement Date”) and shall continue for the period specified therein unless earlier terminated as provided herein.
2.2 Reserved.
2.3 Time. Time is of the essence of this Lease.
2.4 Force Majeure. If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations or other cause without fault and beyond the control of the party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided such party provides the other party written notice of such event within ten (10) days of the commencement of the prompt payment of any rental or other charge required of Lessee hereunder except as may be expressly provided elsewhere in this Lease.
Item 1N - Page 6
3 2.5 Sanctions. In the course of performing its obligations hereunder, Lessor and Lessee shall comply and shall procure that all parties acting on its behalf or under its direction or control comply, with all laws, regulations, and orders applicable hereunder (“Applicable Laws”), including Applicable Laws regarding sanctions, export and import controls, and the prevention of bribery and money laundering.
2.6 Termination by Lessor. Lessor shall have the right to terminate this Lease by providing Lessee with at least thirty (30) days advance written notice. If Lessor terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor , including, but not limited to, the value of Lessee’s leasehold interest, loss of goodwill and relocation benefits, inverse condemnation or the taking of property and Lessor shall have no obligation to pay Lessee therefor.
2.7 Holding Over. Any holding over with the consent of Lessor, express or implied, shall be construed to be a tenancy from month- to-month, cancelable upon thirty (30) days’ written notice, and at a monthly rental equal to one hundred and fifty percent (150%) of the monthly rental in effect at the expiration of the contract services agreement.
2.8 Termination by Lessee. Lessee shall have the right to terminate this Lease by providing Lessor with at least thirty (30) days advance written notice. If Lessee terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor, including, but not limited to, the unamortized value of Lessee’s leasehold improvements, Lessee’s leasehold interest, loss of goodwill and relocation benefits, inverse condemnation or the taking of property and Lessor shall have no obligation to pay Lessee therefor.
3.0 RENTAL
3.1 Monthly Rental. Lessee shall pay to Lessor, during the term of this Lease from and after the Commencement Date, as monthly rental (“Monthly Rental”) for the Premises the sum specified in Section 1.4 hereof, which sum shall be paid in advance on the first day of each calendar month. In the event the Commencement Date does not occur on the first day of a calendar month, the Lessee shall pay the rental for the fractional month on the Commencement Date on a per diem basis calculated on a thirty (30) day month. All rental to be paid by Lessee to Lessor shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand, at the address designated in Section 1.7 hereof.
3.2 Rental Adjustment. Rental adjustment are as specified in Section
1.4. 3.3 Additional Rental . For the purposes of this Lease, all monetary obligations of Lessee under this Lease, including but not limited to, insurance premiums, property taxes, maintenance expenses, late charges and utility costs shall be deemed to be additional rental.
3.4 Real Property Taxes. Unless Lessee qualifies for an exemption, in addition to all rentals herein reserved, Lessee shall pay, at the election of Lessor , either Item 1N - Page 7
4 directly to the taxing authority or to Lessor , annual real estate taxes and assessments levied upon the Premises (including any possessory interest taxes), as well as taxes of every kind and nature levied and assessed in lieu of, in substitution for, or in addition to, existing real property taxes. Such amount shall be paid on the date that is twenty (20) days prior to the delinquent date or, if Lessor receives the tax bill, ten (10) days after receipt of a copy of the tax bill from Lessor , whichever is later. Even though the term of this Lease has expired and Lessee has vacated the Premises, when the final determination is made of Lessee’s share of such taxes and assessments, Lessee shall immediately pay to Lessor the amount of any additional sum owed.
3.5 Personal Property Taxes. Unless Lessee qualifies for an exemption from property taxes or possessory interest taxes due to its non- profit status, during the term hereof, Lessee shall pay, prior to delinquency all taxes assessed against and levied upon fixtures, furnishings, equipment and all other personal property of Lessee contained in the Premises, and when possible Lessee shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the real property of Lessor.
3.6 Utilities. All cost of water, gas, heat, electricity, and sewer services used in, upon, or about the Demised Premises shall be paid by the City. Lessee shall pay all telephone, internet, cable television, satellite, broadband and other telecommunications services.
3.7 Late Payment. Lessee hereby acknowledges that late payment by Lessee to Lessor of rental or other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges.
Accordingly, any payment of any sum to be paid by Lessee not paid within ten (10) days of its due date , shall be subject to a five percent (5%) late charge. Lessor and Lessee agree that this late charge represents a reasonable estimate of such costs and expenses and is fair compensation to Lessor for its loss suffered by such late payment by Lessee.
Sixty (60) days before the anniversary date each year the City shall notify the Lessee of any outstanding delinquency, which must be cured prior to the anniversary date or the City may exercise its right of termination under section 2.6 and terminate the lease.
3.8 Interest. Any sum to be paid pursuant to the terms of this Lease not paid when due shall bear interest from and after the due date until paid at a rate equal to three percent (3%) over the reference rate being charged by Bank of America, N.A. from time to time during such period, so long as the rate does not exceed the maximum non- usurious rate permitted by law in which case interest shall be at the maximum non- usurious rate allowed by law at the time the sum became due.
4.0 USE OF THE PREMISES
4.1 Permitted Use. The Lessor hereby leases to Lessee and Lessee leases from Lessor the Premises with appurtenances as defined herein, for the purpose of conducting thereon only the use specified in Section 1.7 of this Lease and for no other use. No signs posters or similar devices shall be erected, displayed or maintained by Item 1N - Page 8
5 the Lessee in view of the general public without advance written notice of the Airport Executive Director.
4.2 Prohibited Use. The operations of the Lessee shall be conducted in an orderly and proper manner and so as not to annoy, disturb, or be offensive to others at the Airport. No solicitation of the public is allowed. Tenant shall provide uniforms and its employees shall wear badges or other means of identification.
4.3 Compliance with Laws. Lessee shall, at his own cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the use of the Premises, and shall faithfully observe in said use all municipal ordinances, including, but not limited to, the General Plan and zoning ordinances, state and federal statutes, or other governmental regulations now in force or which shall hereinafter be in force. Lessee’s violation of law shall constitute an incurable default under this Lease. The judgment of any court of competent jurisdiction, or the admission of Lessee in any action or proceeding against Lessee, whether Lessor is a party thereto or not, that Lessee has violated any such order or statute in said use, shall be conclusive of that fact as between the Lessor and Lessee.
Lessee shall not engage in any activity on or about the Premises that violates any Environmental Law, and shall promptly, at Lessee s sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency or Environmental Law for clean- up and removal of any contamination involving any Hazardous Material created or caused directly or indirect ly by Lessee. The term “Environmental Law” shall mean any federal, state or local law, statute, ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on, under or about the Demised Premises, including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C.
Sections 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Sections 6901 et seq.; (iii) California Health and Safety Code Sections 25100 et seq.; (iv) the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health an d Safety Code Section 25249.5 et seq.; (v) California Health and Safety Code Section 25359.7; (vi) California Health and Safety Code Section 25915; (vii) the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 et seq.; (viii) California Water Code Section 1300 et seq.; and (ix) California Civil Code Section 3479 et seq., as such laws are amended and the regulations and administrative codes applicable thereto.
The term “Hazardous Material” includes, without limitation, any material or substance which is (i) defined or listed as a “hazardous waste”, “extremely hazardous waste”, “restrictive hazardous waste” or “hazardous substance” or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms “Hazardous Materials” and “Environmental Laws” in their broadest sense. Lessee shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq. Lessee shall provide prompt written notice to Lessor of the existence of Hazardous Item 1N - Page 9
6 Substances on the premises and all notices of violation of the Environmental Laws received by Lessee.
4.4 Operations for the benefit of Public. Lessee agrees to operate the Demised Premises for the use and benefit of the Public, to make available all Lessee facilities to the public, without discrimination on the grounds of sex, race, color, or national origin.
4.5 P ublic Facilities, Ingress, Egress and Quiet Enjoyment. City agrees that Lessee, upon payment of the rental hereunder and performing the covenants of the Lease, may quietly have, hold and enjoy the Demised Premises during the term of the Lease, and that Tenant shall have the non-exclusive right to use, in common with others, the public at the Airport and Tenant shall have a reasonable right of ingress and egress from the Demised Premises and the public facilities for its employees, visitors and customers.
4.7 Hours of Business. Subject to the provisions of Section 7.0 hereof, Lessee shall continuously during the entire term hereof conduct and carry on Lessee’ s business in the Premises and shall keep the Premises open for business and cause Lessee’s business to be conducted therein during the Lessee ’s usual business hours of each and every business day.
5.0 ALTERATIONS AND REPAIRS
5.1 Alterations and Fixtures . Lessee shall not make, or suffer to be made, any alterations to the Premises, or any part thereof, without the prior written consent of Lessor . Construction Plans or detailed plans with scope of work shall be submitted to the Airport for initial review of proposed alteration. A ny alterations to the Premises, except movable furniture and trade fixtures, shall become at once a part of the realty and shall at the expiration or earlier termination of this Lease belong to Lessor.
Lessee shall not in any event make any changes to the exterior of the Premises. Any such alterations shall be in conformance with the requirements of City design and construction standards and all municipal, state, federal, and other governmental authorities, including requirements pertaining to the health, welfare or safety of employees or the public and in conformance with reasonable rules and regulations of Lessor. Any damage occasioned by such removal shall be repaired at Lessee's expense so that the Premises can be surrendered in a good, clean and sanitary condition as required by Section 5.2 hereof. Any and all fixtures and appurtenances installed by Lessee shall conform with the requirements of all municipal, state, federal, and governmental authorities, including requirements pertaining to the health, welfare, or safety of employees or the public. Upon completion of construction of the alterations, Lessee shall submit to Lessor evidence satisfactory to Lessor of the cost of said alterations ("Improvement Costs"). In the event the Lessor, at the request of the Lessee and at its sole discretion, incurs costs related to the financing, construction, improvements, and alterations of its leasehold, such costs shall be reimbursable by the Lessee.
Item 1N - Page 10
7 5.2 Maintenance and Repair . Lessee shall, subject to Lessor 's obligations hereinafter provided, at all times during the term hereof, and at Lessee's expense, keep, maintain and repair the Premises, and other improvements within the Premises in good and sanitary order, condition, and repair (except as hereinafter provided). Lessor should be notified immediately of any necessary maintenance and repair of any store front, doors, window casements, walls, glazing, heating and air conditioning system, plumbing, pipes, electrical wiring and conduits . Lessee hereby waives all right to make repairs at the expense of Lessor , and Lessee hereby waives all rights provided for by the Civil Code of the State of California to make said repairs. By entering into the Premises, Lessee shall be deemed to have accepted the Premises as being in good and sanitary order, condition and repair. Lessee agrees on the last day of said term , or sooner termination of this Lease, to surrender the Premises with appurtenances, in the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements excepted. Lessee shall periodically sweep and clean the sidewalks adjacent to the Premises, as needed. Upon Lessee's possession of the Premises, Lessee shall be deemed to have accepted the Premises as being in good condition and repair.
Lessee agrees that it will not, nor will it authorize any person to, go onto the roof of the building of which the Premises are a part without the prior written consent of Lessor. Said consent will be given only upon Lessor's satisfaction that any repairs necessitated as a result of Lessee's action will be made by Lessee at Lessee's expense and will be made in such a manner so as not to invalidate any guarantee relating to said roof.
5.3 Free from Liens. Lessee shall keep the Premises free from any liens arising out of any work performed, material furnished, or obligation incurred by Lessee or alleged to have been incurred by Lessee.
6.0 INSURANCE AND INDEMNIFICATION
6.1 Insurance. Prior to its ability to access the Demised Premises, Lessee will provide City with proof of insurance, at Tenant’s sole cost and expense, to remain in full force and effect during the entire term of this lease. The following policies of insurance shall be maintained:
A. Insurance Provided by Lessee.
Comprehensive or Commercial Form General Liability Insurance shall include the following minimal limits:
(i). General Liability including operations, products and completed operations $1,000,000 each occurrence for bodily injury, personal injury and property damage/$2,000,000 aggregate
(ii). Automobile $1,000,000 each accident; $1,000,000 uninsured motorist
Item 1N - Page 11
8 (iii). Workers Compensation $1,000,000 each accident/$1,000,000 each employee for disease.
(iv). Excess Liability/Umbrella Form $2,000,000.
B. An Additional Insured Endorsement is required for the General Liability Insurance policy naming the City, its officers, employees, and agents as additional insured on the policy.
C. The policies shall provide for a 30 day notice to the City prior to termination, cancellation, or change.
D. The general liability and excess liability/umbrella policies must be endorsed to provide that each policy shall apply on a primary and noncontributing basis in relation to any insurance or self -insurance, primary or excess, maintained by or available to the City or its officials, employees, and agents.
E. The Workers Compensation policy shall contain the insurer's waiver of subrogation (or waiver of right of recovery) in favor of City, its elected officials, officers, employees, and agents.
F. If, in the City's opinion, the minimum limits of the insurance herein required have become inadequate during the period of this Lease, the Concessionaire shall increase such minimum limits by reasonable amounts on request of the City provided that said coverage is available at standard commercial rates.
6.2 Indemnification . To the fullest extent permitted by law, Lessee shall, at Lessee's sole expense and with counsel reasonably acceptable to City, defend, indemnify, and hold harmless City and City's officers, officials, employees and agents from and against all claims, (including demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including consultant and expert fees, costs of investigation, court costs and attorney’s fees) from any cause, arising out of or relating (directly or indirectly) to this Lease, the tenancy created under this Lease, or the Demised Premises, including without limitation:
A. The use or occupancy, or manner of use or occupancy, of the Demised Premises;
B. Any act, error or omission, or negligence of Lessee or of any subtenant, invitee, guest, contractor or licensee or Lessee or any subtenant in, on, or about the Demised Premises;
C. Lessee’s conducting or managing of its business;
D. Any alterations, activities, work, or things done, omitted, permitted, allowed, or suffered by Lessee in, at, or about the Demised Premises , Item 1N - Page 12
9 including the violation of or failure to comply with any insurance requirements or any applicable laws, statues, ordinances, standards, rules, regulations, orders, decrees, or judgments in existence on the Commencement Date or enacted, promulgated, or issued after the date of this Lease, and;
E. Any breach or default in performance of any obligation on Lessee’s part to be performed under this Lease, whether before or during the term of this Lease or after its expiration or earliest termination.
6.3 This indemnification extends to and includes, without limitation, claims for:
A. Injury to any persons (including death at any time resulting from that injury);
B. Loss of, injury or damage to, or destruction of property (including loss of use at any time resulting from that loss, injury, damage, or destruction); and
C. All economic losses and consequential or resulting damage of any kind.
6.4 Lessee’s indemnification obligation hereunder shall survive the expiration or earlier termination of this Lease until all claims against City involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statutes of limitations.
7.0 ABANDONMENT AND SURRENDER
7.1 Abandonment. Lessee shall not vacate or abandon the Premises at any time during the term of this Lease. If Lessee shall abandon, vacate or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee and left on the Premises shall be deemed to be abandoned, at the option of Lessor, except such property as may be mortgaged to Lessor.
7.2 Surrender of Lease. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or sub-tenancies, or may, at the option of Lessor, operate as an assignment to it of any or all of such subleases or sub- tenancies. In the event that Lessor fails to return the Premises in good condition, Lessor may perform any work necessary to correct deficiencies , and Lessee shall pay the cost of the work plus an administrative fee component of not more than 15 percent.
8.0 DAMAGE AND DESTRUCTION OF PREMISES. In the event of (a) partial or total destruction of the Premises during the term of this Lease which requires repairs to the Premises, or (b) the Premises being declared unsafe or unfit for occupancy by any authorized public authority for any reason other than Lessee's act, use or occupation, which declaration requires repairs to the Premises, Lessor shall forthwith make said Item 1N - Page 13
10 repairs provided Lessee gives to Lessor thirty (30) days written notice of the necessity therefor. No such partial destruction (including any destruction necessary in order to make repairs required by any declaration made by any public authority) shall in any way annul or void this Lease except that Lessee shall be entitled to a proportionate reduction of Monthly Rental while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by Lessee in the Premises. However, if during the last two (2) years of the term of this Lease the Premises are damaged as a result of fire or any other insured casualty to an extent in excess of twenty five percent (25%) of the then replacement cost (excluding foundations), Lessor may within thirty (30) days following the date such damage occurs, terminate this Lease by written notice to Lessee. If Lessor , however, elects to make said repairs, and provided Lessor uses due diligence in making said repairs, this Lease shall continue in full force and effect, and the Monthly Rental shall be proportionately reduced while such repairs are being made as hereinabove provided.
Nothing in the foregoing to the contrary withstanding, if the Premises or said building is damaged or destroyed at any time during the term hereof to an extent of more than twenty-five percent (25%) of the then replacement cost (excluding foundations) as a result of a casualty not insured against, Lessor may within thirty (30) days following the date of such destruction terminate this Lease upon written notice to Lessee . If Lessor does not elect to terminate because of said uninsured casualty, Lessor shall promptly rebuild and repair the Premises and/or the building and the Monthly Rental shall be proportionately reduced while such repairs are being made as hereinabove provided. If Lessor elects to terminate this Lease, all rentals shall be prorated between Lessor and Lessee as of the date of such destruction. I n respect to any partial or total destruction (including any destruction necessary in order to make repairs required by any such declaration of any authorized public authority) which Lessor is obligated to repair or may elect to repair under the terms of this Section, Lessee waives any statutory right it may have to cancel this Lease as a result of such destruction.
9.0 SUBLETTING. For the purposes of this lease, subletting shall not be allowed.
10.0 DEFAULT
10.1 Default by Lessee. T he occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Lessee : (a) the failure to pay any rental or other payment required hereunder to or on behalf of Lessor more than three (3) days after written notice from Lessor to Lessee that Lessee has failed to pay rent when due; (b) the failure to perform any of Lessee's agreements or obligations hereunder (exclusive of a default in the payment of money) where such default shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee which notice shall be deemed to be the statutory notice so long as such notice complies with statutory requirements; (c) the vacation or abandonment of the Premises by Lessee; (d) the making by Lessee of a general assignment for the benefit of creditors; (e) the filing by Lessee of a voluntary petition in bankruptcy or the adjudication of Lessee bankruptcy; (f) the appointment of a receiver to take possession of all or substantially all the assets of Lessee located at the Premises or of Lessee's leasehold interest in the Premises; (g) the filing by any creditor of Lessee of an involuntary petition in bankruptcy which is not Item 1N - Page 14
11 dismissed within sixty (60) days after filing; or (h) the attachment, execution or other judicial seizure of all or substantially all of the assets of Lessee or Lessee's leasehold where such an attachment, execution or seizure is not discharged within sixty (60) days.
Any repetitive failure by Lessee to perform its agreements and obligations hereunder, though intermittently cured, shall be deemed an incurable default. Two (2) breaches of the same covenant within a sixty (60) day period, a notice having been given pursuant to (a) or (b) above for the first breach, or three (3) of the same or different breaches at any time during the term of this Lease for which notices pursuant to (a) or (b) above were given for the first two (2) breaches shall conclusively be deemed to be an incurable repetitive failure by Lessee to perform its obligations hereunder.
In the event of any such default or breach by Lessee , Lessor may at any time thereafter, without further notice or demand, rectify or cure such default, and any sums expended by Lessor for such purposes shall be paid by Lessee to Lessor upon demand and as additional rental hereunder, with an administrative fee component of not more than 15%. In the event of any such default or breach by Lessee, Lessor shall have the right (i) to continue the lease in full force and effect and enforce all of its rights and remedies under this Lease, including the right to recover the rental as it becomes due under this Lease, or (ii) Lessor shall have the right at any time thereafter to elect to terminate the Lease and Lessee's right to possession thereunder.
10.2 No Waiver. Acceptance of rental hereunder shall not be deemed a waiver of any default or a waiver of any of Lessor's remedies.
10.3 Lessor's Default. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Lessee in writing, specifying wherein Lessor has failed to perform such obligation; provided, however, that if the nature of Lessor's obligation is such that more than thirty (30) days are required for performance then Lessor shall not be deemed in default if Lessor commences performance within a thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Lessee have the right to terminate this Lease as a result of Lessor's default and Lessee 's remedies shall be limited to damages and/or an injunction.
11.0 CONDEMNATION. In the event a condemnation or a transfer in lieu thereof results in a taking of any portion of the Premises, Lessor may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty -five percent (25% ) or more of the Premises, Lessee may, upon written notice given within thirty (30) days after such taking or transfer in lieu thereof, terminate this Lease. Lessee shall not be entitled to share in any portion of the award and Lessee hereby expressly waives any right or claim to any part thereof. Lessee shall, however, have the right to claim and recover, only from the condemning authority (but not from Lessor), any amounts necessary to reimburse Lessee for the cost of removing stock and fixtures. If this Lease is not terminated as above provided, Lessor shall use a portion of the condemnation award to restore the Premises.
Item 1N - Page 15
12 12.0 MISCELLANEOUS
12.1 Reservation of Right to Modify Property. Lessor hereby reserves the right (but not the obligation) to renovate, modernize, rehabilitate, expand, reduce, reconfigure, enclose and/or otherwise alter all or any portion of the Premises (collectively "Modifications"), in such manner and at such time or times, throughout the term of this Lease, as Lessor may, in its sole and absolute discretion, deem to be in the best interests of the Property. Such Modifications may include, without limitation, the right to construct new buildings on the Property for additional uses, to remove, renovate, repair, add to, modernize or otherwise alter the building in which the Premises are situated as well as other buildings, facilities, structures, malls, walkways, landscaping, parking and common areas or other areas within the Property. In connection with any and all such Modifications, Lessor may enter the Premises to the extent reasonably required by Lessor to pursue and complete such Modifications. In addition, Lessor may temporarily close portions of the parking and common areas and cause temporary obstructions in connection with any Modifications. Lessee agrees that under no circumstances shall the Modifications as to any portion of the Property or the construction activity that takes place in the course of making the Modifications, or any aspect thereof, including Lessor's entry into the Premises, constitute an eviction or partial eviction of Lessee or a breach of Lessee's right to quiet enjoyment or of any other provision of this Lease, nor entitle Lessee to damages, injunctive relief or other equitable relief, nor entitle Lessee to any abatement or reduction in the Monthly Rental, additional rental or other charges or sums due under this Lease; provided Lessor uses reasonable efforts to mitigate any adverse effects on Lessee caused by the Modifications.
12.2 Entry and Inspection . Lessor and its agents shall have the right to enter upon the Leased Premises during such times as may be reasonable under the circumstances for any purpose necessary, incidental to or connected with the performance of its obligations or in the exercise of its government al functions relating to the public health, safety, good conduct, and the proper management of the Airport.
12.3 Estoppel Certificate. In the event of any proposed encumbrance, assignment, or other transfer of this Lease, Tenant shall submit its request to the City no less than 90 days in advance of the effective date of the proposed assignment in order for the City to make its determination If, as a result of a proposed sale, assignment, or hypothecation of the Premises or the land thereunder by Lessor, or at any other time, an estoppel certificate shall be requested of Lessee , Lessee agrees, within ten (10) day s thereafter, to deliver such estoppel certificate addressed to any existing or proposed mortgagee or proposed purchaser, and to the Lessor. Lessee shall be liable for any loss or liability resulting from any incorrect information certified, and such mortgagee and purchaser shall have the right to rely on such estoppel certificate and financial statement.
12.4 Jurisdiction and Venue. The parties hereto agree that the State of California is the proper jurisdiction for litigation of any matters relating to this Lease, and service mailed to the address of Lessee s set forth herein shall be adequate service for such litigation. The parties further agree that Riverside County, California is the proper
Item 1N - Page 16
13 place for venue as to any such litigation and Lessee agrees to submit to the personal jurisdiction of such court in the event of such litigation.
12.5 Partial Invalidity. If any term, covenant, condition or provision of this Lease is held to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereof.
12.6 Successors in Interest. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder.
12.7 No Oral Agreements. This (i) Lease covers in full each and every agreement of every kind or nature whatsoever between the parties hereto concerning this Lease, (ii) supersedes any and all previous obligations, agreements and understandings, if any, between the parties, oral or written, and (iii) merges all preliminary negotiations and agreements of whatsoever kind or nature herein. Lessee acknowledges that no representations or warranties of any kind or nature not specifically set forth herein have been made by Lessor or its agents or representatives.
12.8 Authority. In the event that Lessee is a corporation or a partnership, each individual executing this Lease on behalf of said corporation or said partnership, as the case may be, represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation or partnership, in accordance with a duly adopted resolution of the Board of Directors, if a corporation, or in accordance with the Partnership Agreement, if a partnership, and that this Lease is binding upon said corporation or partnership in accordance with its terms. Lessee represents and warrants to Lessor that the entering into this Lease does not violate any provisions of any other agreement to which Lessee is bound.
12.9 Relationship of Parties. The relationship of the parties hereto is that of Lessor and Lessee, and it is expressly understood and agreed that Lessor does not in any way or for any purpose become a partner of Lessee in the conduct of Lessee 's business or otherwise, or a joint venture with Lessee, and that the provisions of this Lease and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method whereby rental payments are to be measured and ascertained.
12.10 Nondiscrimination. Lessee for itself, personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Demised Premises that: (1) no person, because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”) shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (2) it shall ensure that applicants are employed, Item 1N - Page 17
14 and that employees are treated during their employment, without regard to any prohibited basis; (3) as a condition precedent to City’s lawful capacity to enter this Lease, and in executing this Lease, Lessee certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Lessee activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that, to the extent applicable to Lessee , it is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non- discrimination in city contracting; (4) in the construction of any improvements on, over, or under such Premises and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (5) it shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, including applicable Regulations that may be amended and are hereby incorporated and attached as Exhibit “C” & “D”,
12.11 Notices. Wherever in this Lease it shall be required or permitted that notice and demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served in writing and shall not be deemed to have been duly given or served unless in writing, and personally served or forwarded by certified mail, postage prepaid, addressed, if to Lessor, as specified in Section 1.9. Either party may change the address set forth herein by written notice by certified mail to the other. Any notice or demand given by certified mail shall be effective one (1) day subsequent to mailing.
To City: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite OFC
Palm Springs, CA 92262
To Tenant: Worldwide Flight Services, Inc.
222 W. Las Colinas Blvd.
Suite 1800N
Irving, TX 75039
Attn: Real Estate
Notice sent to: [email protected]
12.12 Waiver. No delay or omission in the exercise of any right or remedy by a non-defaulting party shall impair such right or remedy or be construed as a waiver.
A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other Item 1N - Page 18
15 provision of this Lease.
12.13 Exhibits and Addenda. The Exhibits and Addenda attached to this Lease are made a part hereof as if fully set forth herein. In the event of a conflict between the terms and provisions of Addenda and the terms and provisions of this Lease, the terms and provisions of the Addenda shall prevail.
SIGNATURE PAGE TO FOLLOW
Item 1N - Page 19
16 SIGNATURE PAGE FOR LEASE AGREEMENT NO. 25L118 BETWEEN THE CITY OF PALM SPRINGS AND WORLDWIDE FLIGHT SERVICES, INC.
IN WITNESS WHEREOF, the Parties have entered into this Non-Exclusive Operating and Lease Agreement as of the day and year first above written.
CITY OF PALM SPRINGS
Approved By:
Scott Stiles
City Manager
Date
Attested By:
City Clerk
Approved as to Form:
City Attorney
WORLDWIDE FLIGHT SERVICES, INC.
Signature
Name
Title
Signature
Name
Title
Corporations require two notarized
signatures. One signature must be from
Chairman of Board, President, or any
Vice President. The second signature
must be from the Secretary, Assistant
Secretary, Treasurer, Assistant
Treasurer, or Chief Financial Officer.
Item 1N - Page 20
17 Item 1N - Page 21
CALIFOR NIA AU-PURPOSE ACKNOW LEDGMENT CIVIL COD E§ 11&9 A notary pubic or other officer comp leting thls certificate verifies only the Identity of the lndMdu al who slg,ned die doOJmen t to wtikh this certlfkl' te Is attlldied , and not the truthfu lness. aoci.ncy , or vald ltyol that document.
St.at e of Callfomta
Coooty of __________ _
On ____ ~ ____ beforeme, _____ ~~-~--~ = - ~ ~ = -----
Dote Here Insert Nome and 11tle of the Offlttr
Pttson.altyap peared ____________________________ _
Nome(s } of Slgne,(s }
who ptoved to me on the basis of satisfact ory evidence to be the pe,son{s} whose name{s} ls/ate subscribed to the within lnstrument and acknowted ged to me that he/she/they executed the same hn hts/her/thelr author ized ca paclty(l es), and that by his/her/their sfgnature(s) on the lnstrum ent theperson(s), or the entity upon beh.atf o f which the person(s) acted.executed the Instrumen t.
Place Notmy Seal Abo\<e
I cerilfy under PENAL TY OF PERJURY under the laws of the Sta ti of caUfoml.a that thi fo,1gt,1ng p1ragraph Is truf and correct.
WITNESS my hand and offlda l seal.
~gnature ________________ _
Signatur e of Notmy PU.bile
--------------CJnlONJU .--------------
Tho~h thJs sectJon Is optional comp~ thiJ In/of motion <on d~ o.11:erotion of the dotummt o, fraudulent nott«hmmt of this ftxm to CM cmlntmdrd docvment .
Descr'lptlon of Attached Docuinent
Ttt le or Type of OOOJment _____________ _ oocument Dat e _________ _ Numbeto f Pages ________ Sfgner(s)OtherT han Named Above ____________ _ C.pactty(les) Claimed by Slpe.r(s)
~gner "s Name ____________ _ ~gner'sName ____________ _ C<>rpom, Olflo,r-Ttll,(<) _____ _ c,,,por,r, Olflo,r-Tttl•(<) ______ _ Pariner Umlte d General Pariner Umlte d General
lndl\lldual Attomey lnFact lndl\lldual Attorney ln Fact Trustee Guardian orConservator Trustee Guatdtan or-Conservator Other _____________ _ Other ______________ _
Sfgner Ii Repttsenttng _________ _ Sfgnetti Repttsen tlng __________ _ 02014 NatlonalNotaryAs.sodatJon • www.NatJonalNot.ary.org • 1-800-USNOTARY (1-800-876-6827) ltem#S907 18 EXHIBIT “A”
WFS – WORLDWIDE FLIGHT SERVICES, INC.
240 SQ. FT. – NORTH TICKET WING
Item 1N - Page 22
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IJnited
r4 SF
i
I
1001 SF I 919 SF
---- -~--D --
=
I
NORTH TICKET WINf
I I
Jw •
Air Canada
163 SF
M-159-S
319 SF 19 ~F
=
WesWet
326 SF
M-160-S
1001 SF
- ll=I
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------- T - - -
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19 EXHIBIT “B”
ESTOPPEL CERTIFICATE
Lessee:
Lessor:
Date of Lease:
Demised Premises:
To: _______________________________
_______________________________
_______________________________
The undersigned hereby certifies as follows:
1. The undersigned is the Lessee ("Lessee") under the above-referenced lease ("Lease") covering the above-referenced premises ("Demised Premises").
2. The Lease constitutes the entire agreement between Lessor and Lessee with respect to the Demised Premises and the Lease has not been modified, changed, altered or amended in any respect except as set forth above.
3. The term of the Lease commenced on ________, 20_____ and, including any presently exercised option or renewal term, will expire on _________, 20_____. Lessee is in possession of the Demised Premises and is the actual occupant in possession thereof and has not sublet, assigned or hypothecated its leasehold interest. All improvements to be constructed on the Demised Premises by Lessee have been completed and accepted by Less or and any Lessee construction allowances have been paid in full.
4. As of this date, to the best of Lessee's knowledge, there exists no breach or default, nor state of facts which, with notice, the passage of time, or both, would result in a breach or default on the part of either Lessee or Lessor. To the best of Lessee's knowledge, no claim, controversy, dispute, quarrel or disagreement exists between Lessee and Lessor.
5. Lessee is currently obligated to pay Monthly Rent in installments of $________ per month, and such monthly installments have been paid not more than one month in advance. To the best of Lessee's knowledge, no other rent has been paid in advance and Lessee has no claim or defense against Lessor under the Lease and is asserting no offsets or credits against either the rent or Lessor. Lessee has no claim against Lessor for any security or other deposits except $ which was paid pursuant to the Lease.
6. Lessee has no option or preferential right to lease or occupy additional space within the Property of which the Demised Premises are a part. Lessee has no option or preferential right to purchase all of any part of the Demised Premises nor Item 1N - Page 23
20 any right or interest with respect to the Demised Premises other than as Lessee under the Lease. Lessee has no right to renew or extend the term of the Lease except as set forth in the Lease.
7. Lessee has made no agreements with Lessor or its agent or employees concerning free rent, partial rent, rebate of rental payments or any other type of rent or other concession except as expressly set forth in the Lease.
8. There has not been filed by or against Lessee a petition in bankruptcy, voluntary or otherwise, any assignment for the benefit of creditors, any petition seeking reorganization or arrangement under the bankruptcy laws of the United States, or any state thereof, or any other action brought under said bankruptcy laws with respect to Lessee.
9. All insurance which Lessee is required to maintain under the Lease has been obtained by Lessee and is in full force and effect and all premiums with respect thereto have been paid.
Dated this day of , 20_____.
By:
Its:
Item 1N - Page 24
21 EXHIBIT “C”
Item 1N - Page 25
08127/13
APPENDIX A
1400.11
Al)pendix 4
During the perfonnance of this contract, the contractor, for ilself, its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees as follows:
I. Comptianct. with Regulations: The contractor (hereinafter includes consultants) will comply with the Acts and the Regulations relative to Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, federa l Arution Administration, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.
2. Non-discrimination: The contractor, with regard to the wodc performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment.
The contractor will not participate directly or indirectly in the ~iscriroinarinn proluoited by the Acts and the Regulations, including employment practices when the contract covers any acti,ity, project, or program set forthinAppeodixB of 49 CFR part 21.
3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation made by the contractor for wodc to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontra<tor or supplia-will be notified by the contractor of the contractor's obligations under this contract and the Acts and the Regulations relative to Non-discrimination on the grounds of race, color, or national origin.
4. Information and Reports: The contractor -.ill provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will pennit access to its books, records, accounts, other sources of information, and its fucilities as may be determined by the Recipient or the f ederal A,iation Adminisb·ation to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the e.i:clusive possession of another who fails or refuses to furnish the information, the contractor will so certify to the Recipient or the f edei-al A nation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.
5. Sanctions for Noncompliance: In the event of a contractor's noncompliance with the Non discrimination pro,isions of this contract, the Recipient will impose such contract sanctions as it or the federal .'hiation Administration may determine to be appropriate, including, but not limited to:
51 22
Item 1N - Page 26
08127/13 1400.11
Al)pendix 4
a. withholding payma,ts to the contractor under the contract until the contractor complies; and/or
b. ca:icelling, tenninating, or suspending a contract, in whole or in part.
6. loC'o1-po1"1ltic•o of Prorisions : The contractor will include the provis.iom ofparag:rnplu one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The contractor will take action with respect to any subcontract or procurement as the Recipient or the Federal A•iation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Pro,ided, that if the contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the contractor may request the Recipient to enter into any litigation to protect the interests of the Recipient. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States. 52 23
EXHIBIT “D”
Item 1N - Page 27
08/27/13
APPENDIXE
1400.11
Appendix4
Dur,ng the perfonnance of this contract, the contractor, for itself; its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees to comply wi1h the following non discrimination statutes and au1horities; including but not limited to:
Pertinent Non-Disc1imination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 18 stat. 252), (prolnoits discrimination on the basis of race, color, national origin); and 49 CFR part 21. • The Unifonn Relocation Assistance and Real Property Acquisition Policies Aci of 1970, (42 U.S.C. § 4601), (prolnoits unfair treatment of persons displaced or whose property has been acquired because ofFederal or Federal-aid programs and projecis); • Section 504 of the Rehabili1ation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prolnoits discrimination on the basis of disability); and 49 CFR part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prolnoits discrimination on the basis of age);
• Aiiport and Airway Improvement Aci of 1982, (49 USC§ 471, Section 47123), as amended, (prolnoits discriroinarion based on race, creed, color, national origin, or sex); • The Ci,il Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrtmination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the tenns "programs or activities" to include all of the programs or activities of the Federal-aid recipients, sub-recipients md contraciors, whether such programs oc activities are Federally funded or not);
• T itles II and ill of the Americans with Disabilities Act, which prohibit discrimiJation on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommoda:ion, and certain testing entities (42 U.S.C. §§ 12131 - 12189) as implemented by D,partment of Transportation regulations at 49 CFR parts 37 and38;
• The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. § 47123) (prolnoits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Acticns to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities wi1h disproportionately high and adverse human health or environmental effects on minority and low-income populations;
57 ATTACHMENT B
PUBLIC INTEGRITY DISCLOSURE
Item 1N - Page 28
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
1. Name of Entity
2. Address of Entity (Principal Place of Business)
3. Local or California Address (if different than #2)
4. State where Entity is Registered with Secretary of State If other than California, is the Entity also registered in Cali fornia? Yes No
5. Type of Entity
Corporation Limited Liability Company Partnership Trust Other (please specify)
6. Officers, Directors, Membe rs, Managers, Tru stees, O ther F iduciaries (please specify) Note: If any response is not a natural pe rson, please identify all off icers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
________________________ Officer Director Member Manager [name] General Partner Limited Partner
Other ___________________________
_______________________________ Officer Director Member Manager [name] General Partner Limited Partner
Other __________________________
________________________________ Offi
cer Director Member Manager
[name] General Partner Limited Partner
Other __________________________
Worldwide Flight Services, Inc.
222 W. Las Colinas Blvd., Suite 1800N, Irving, TX 75039 Delaware
x
x
Please see attached
Item 1N - Page 29
7. O wners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE
[name of owner/investor]
50% , A BC COMP
ANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
[name of owner/inves tor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owne r/investor]
[name of owner/investor ] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [ percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest i n entity and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER T HE LAWS OF T HE STA TE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title Date A.
see attached
5/22/2025
Item 1N - Page 30
£~~
..,/
City of
Palm Springs, CA.
Busi ness D
isclosure Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance with the attached instructions, we prov ide you these supplementa ry i nstructions to clearly identif y the required information, and the format the information should be provided.
If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is also co mprised of other business e ntities as i ts members or having a financial interest, all other such bu siness entities must als o be d isclosed, including those e ntities o ther business entities, if any.
Ult imat e
ly, th e City’s disclosure document (attached) requires a listing identif ying a ll n atural persons having any financial interest over 5% of the business entities (and any other b usiness entities comprising your business entity).
As an examp
le, Applicant is: Acme Brothers, Inc., a California corporation, whose officers are:
John D oe, Jill Doe, and Jay Doe, which is owned 50% by Acme B rothers, LLC, a Cal ifornia limited liabilit y co mpany, and John Doe (25% inte rest) and Ji ll Doe (25% i nterest). Acme Brothers, LLC, is managed by Acme Brothers 2, Inc ., a Califo rnia corporation, whose o fficers are: George Doe, Bill Doe, and Jane Doe, which is owned 100% by Ac me Brothers 2, LLC, a California limited liability comp any, w hich is managed by George Doe, with G eorge Doe and Jane Doe having 50% interest each.
The full business entity disclosure in this example would resemble the following:
1. Acm e Brot
hers, Inc., a California corporation
a. Officers: John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe
2. Acme Brothers , LLC, a California limited liability company a. Managers: Acme Brothers 2, Inc., a California corporation b. Ownership: 100% Acme Brothers 2, Inc., a California corporation
3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company
4. Acme Brothers 2, LLC, a California limited liability company a. Managers: George Doe
b. Ownership:
i. 50%
Item 1N - Page 31
Worldwide Flight Services, Inc.
Supplement to Applicant Disclosure Form
6. Officers and Directors:
Officers:
Michael W. Simpson, Chief Executive Officer
Jason Bixby, Chief Financial Officer
Emily Somerville, Senior Vice President and Secretary
Directors:
Kerry Mok Tee Heong
7. Worldwide Flight Services is a wholly-owned indirect subsidiary of SATS Ltd. SATS Ltd. is publicly traded on the Singapore Exchange (SGX: SATS). As of May 21 2024 (the most recent period for which such information is available), Substantial Shareholders of SATS with a greater than 5% interest in the Company are as follows:
1 SATS’ lar
gest shareholder, Venezio Investments, is an affiliate of Temasek (Holdings) Private Limited. Temasek is a state-owned multinational investment firm that that manages a global portfolio of investments on behalf of the Singapore government. Temasek is wholly owned by the Singapore Minister for Finance.
1 Source: https://www.sats.com.sg/investors/stock-information-overview/shareholding-information Item 1N - Page 32
Shareholding Information as at 21 May 2024
Number of Issued
Ordinary Shares
(excluding
n-easury Shares):
1,490 ,631 ,266
Voting Rights :
1 Vote Per Share
Twenty Largest Shareholders
No. Name
VENEZIO INVESTMENTS PTE. LTD.
2 CITIBANK NOMINEES SINGAPORE PTE LTD
3 RAFFLES NOMINEES (PTE .) LIMITED
4 DBS NOMINEES (PRIVATE) LIMITED
Number of
n-easury Shares:
99,905
No. of shares
held %*
590 ,220,938 39.60
156,049,136 10.47
101 ,215,719 6.79
75,528 ,500 5.07
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L134 WITH UNITED SERVICE ORGANIZATIONS, INC. FOR HANGAR AND OFFICE
SPACE AT PALM SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATIONS:
Approve the Non-Exclusive Operating and Lease Agreement No. 25L134 with United Service Organizations, Inc. for the lease of 4,000 square feet of hangar and office space and eight (8) assigned parking spaces adjacent to the Palm Springs International Airport, effective April 1, 2025 through March 31, 2026, with two (2) one-year options to extend by the Lessee.
1. Authorize the City Manager or designee to execute all necessary documents.2.
Attachments
Item 1O
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L134 WITH UNITED SERVICE ORGANIZATIONS , INC. FOR
HANGAR AND OFFICE SPACE AT PALM SPRINGS INTERNATIONAL
AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve the Non-Exclusive Operating and Lease Agreement (Agreement) with United Service Organizations, Inc. (USO) for hangar and office space at Palm Springs International Airport (Airport) to operate a USO Center.
RECOMMENDATION:
1. Approve the Non -Exclusive Operating and Lease Agreement No. 25L134 with United Service Organizations, Inc. ( Attachment A) for the lease of 4,000 square feet of hangar and office space and eight (8) assigned parking spaces adjacent to the Palm Springs International Airport, effective April 1, 2025 through March 31, 2026, with two (2) one-year options to extend by the Lessee.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The United Service Organizations, Inc. is a 501(c)3 non-profit headquartered in Arlington, Virginia. The Bob Hope USO is licensed to do business in the City of Palm Springs.
BACKGROUND:
The
United Service Organization (USO) Service Club at Palm Springs International Airport has been a tenant for eighteen years and has provided support services to over 240,000 military personnel and their families. The USO currently occupies 4,074 square feet of interior space in a building located on El Cielo across from City Hall. The large space allocated to the USO allows the organization to conduct recreational, Item 1O - Page 1
City Council Staff Report
June 11, 2025 -- Page 2
Non-Exclusive Operating and Lease Agreement with United Service Organizations, Inc.
administration, lounging, dining, and breakroom space for military personnel and their families in need of a respite after arriving or before departing on a flight. Active-duty Marines serving at the Marine Corps Air Ground Combat Center (MCAGCC) near Twentynine Palms are the primary customers of the Palm Springs International Airport USO.
This Palm Springs USO Facility has an assigned manager and is part of the Southern California Bob Hope USO organization, an independent 501(c)3 non- profit organization operating under a charter from the USO and includes centers at Los Angeles, Ontario, and John Wayne Airports. Although congressionally chartered, this Bob Hope USO is not a government agency and relies on contributions from individuals and philanthropic corporations and organizations.
STAFF ANALYSIS:
It is common practice within the airport industry to provide USO space either in or near the main airport terminal solely for the purposes of accommodating traveling military personnel and their families. Leases are normally at the token amount of $1 per year. In the case of Palm Springs International Airport, this same practice was applied at its inception almost two decades ago.
The City’s future plan for the USO is included in the Airport Master Plan and identifies the expansion of car rental facilities in the area currently being occupied by the USO. When the new car rental expansion is completed, projected for four years, the U SO will be relocated into the terminal. A USO phasing and transition plan will be completed during the design process for the Rental Car Facility. To accommodate the projected future car rental expansion schedule and provide flexibility in the lease, a term of one year with two one-year options will achieve that objective.
ENVIRONMENTAL ASSESSMENT
:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above- mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council’s Broad Goal of Economic Development, as well as the Airport’s Strategic Plan Priority 2 – Goal 2: Deliver an Unforgettable Guest Experience.
Item 1O - Page 2
City Council Staff Report
June 11, 2025 -- Page 3
Non-Exclusive Operating and Lease Agreement with United Service Organizations, Inc.
FISCAL IMPACT:
The financial terms of the lease remain the same as the prior agreement, with $1.00 per annum rent. The City of Palm Springs shall be responsible for basic utility costs, including water, gas, heat, electricity, and sewer. The USO will continue to be responsible for other costs including telephone, internet, cable television, satellite, broadband, and other telecommunication and security services. The Airport will continue to be responsible for expenses with major building maintenance items on HVAC, roof, plumbing, electrical and structure while the USO is responsible for minor maintenance within the interior leased space. Any improvements to the interior space will be at the expense of the USO.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett Jr.
City Attorney: Geremy Holm
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Non-Exclusive Operating Lease Agreement United Service Organizations
Item 1O - Page 3
ATTACHMENT A
LEASE AGREEMENT
Item 1O - Page 4
1 UNITED SERVICE ORGANIZATIONS, INC. 25L134
NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
FOR HANGAR AND OFFICE SPACE AT
PALM SPRINGS INTERNATIONAL AIRPORT
THIS LEASE (“Lease”) is made and entered into this 1st day of April, 2025, by and between the CITY OF PALM SPRINGS, a municipal corporation (“Lessor”), and United Service Organizations, Inc., a District of Columbia not-for-profit corporation licenses to do business in the state of California (“Lessee”). City and Lessee may herein be referred to individually as a “Party” and collectively as “Parties.” R E C I T A L S:
A. Lessor currently operates and desires to continue to lease hangar and office space at Palm Springs International Airport (“Airport”) to operate a USO Center at Airport.
B. City believes that the flow of military personnel, retired military personnel and military dependents within the City’s airport terminal benefit from the convenience and accessibility of a USO Service Club on Palm Springs International Airport property.
NOW THEREFORE, City and Lessee mutually agree as follows:
AGREEMENT
1.0 LEASE SUMMARY. Certain fundamental lease provisions are presented in this Section and represent the agreement of the parties hereto, subject to further definition and elaboration in the respective referenced Sections and elsewhere in this Lease. In the event of any conflict between any fundamental lease provision and the balance of this Lease, the latter shall control. References to specific Sections are for convenience only and designate some of the Sections where references to the particular fundamental lease provisions may appear.
1.1 Demised Premises. The “Demised Premises” shall refer to that certain property consisting of approximately 4,000 square feet of hangar and office space and eight (8) assigned parking spaces adjacent to the Palm Springs International Airport terminal building and more particularly described in Exhibit “A” attached hereto.
1.2 Lease Term. The term of this lease shall commence on April 1, 2025, and shall terminate on March 31, 2026.
1.3 Extension Options. Lessee may have the right to renew the Lease for two, 1-year terms, which may be exercised by providing written notice to Lessor no less Item 1O - Page 5
2 than sixty (60) prior to the expiration of the Lease term or renewal period. The rental payments for any extension shall be calculated as indicated in Section 1.4.
1.4 Lease Rental Payments. The rent for the Demised Premises is at a Rate of $1.00 per annum.
1.5 Extension Options. Extension options in this lease as noted in Section
1.3. 1.6 Security Deposit. N/A
1.7 Use of Premises. Lessee shall use and occupy the Premises for the purpose to operate a USO Center related to the Commercial Aeronautical Activities
Lessor: City of Palm Springs
Attn: City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Cc: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite 1
Palm Springs, CA 92262
2.0 TERM
2.1 Term. The term of this Lease shall commence on the date specified in Section 1.2 (“Commencement Date”) and shall continue for the period specified therein unless earlier terminated as provided herein.
2.2 Reserved.
2.3 Time. Time is of the essence of this Lease.
2.4 Force Majeure. If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations or other cause without fault and beyond the control of the party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of any such a ct shall be extended for a period equivalent to the period of such delay, provided such party provides the other party written notice of such event within ten (10) days of the commencement of the prompt payment of any rental or other charge required of Lessee hereunder except as may be expressly provided elsewhere in this Lease.
2.5 Termination by Lessor. Lessor shall have the right to ter minate this Lease by providing Lessee with at least thirty (30) days advance written notice. If Lessor terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor, including, but not limited to, the value of Lessee’s leasehold interest, loss of goodwill and relocation benefits, inverse Item 1O - Page 6
3 condemnation or the taking of property and Lessor shall have no obligation to pay Lessee therefor.
2.6 Holding Over. Any holding over with the consent of Lessor, express or implied, shall be const rued to be a tenancy from month -to-month, cancelable upon thirty (30) days’ written notice, and at a monthly rental equal to one hundred and fifty percent (150%) of the monthly rental in effect at the expiration of the contract services agreement.
2.7 Termination by Lessee. Lessee shall have the right to terminate this Lease by providing Lessor with at least thirty (30) days advance written notice. If Lessee terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor, including, but not limited to, the unamortized value of Lessee’s leasehold improvements, Lessee’s leasehold interest, loss of goodwill and relocation benefits, inverse condemnation or the taki ng of property and Lessor shall have no obligation to pay Lessee therefor.
3.0 RENTAL
3.1 Yearly Rental. Lessee shall pay to Lessor, during the term of this Lease from and after the Commencement Date, as yearly rental (“Yearly Rental”) for the Premises the sum specified in Section 1.4 hereof, which sum shall be paid in advance on the first day of April at the commencement of the Lease, or any extension, thereafter. All rental to be paid by Lessee to Lessor shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand , at the address designated in Section 1.7 hereof.
3.2 Rental Adjustment. Rental adjustment are as specified in Section
1.4. 3.3 Additional Rental . For the purposes of this Lease, all monetary obligations of Lessee under this Lease, including but not limited to, insurance premiums, property taxes, maintenance expenses, late charges and utility costs shall be deemed to be additional rental.
3.4 Real Property Taxes. Unless Lessee qualifies for an exemption , in addition to all rentals herein reserved, Lessee shall pay, at the election of Lessor, either directly to the taxing authority or to Lessor, annual real estate taxes and assessments levied upon the Premises (including any possessory interest taxes), as well as taxes of every kind and nature levied and assessed in lieu of, in substitution for, or in addition to, existing real property taxes. Such amount shall be paid on the date that is twenty (20) days prior to the delinquent date or, if Lessor receives the tax bill, ten (10) days after receipt of a copy of the tax bill from Lessor, whichever is later. Even though the term of this Lease has expired and Lessee has vacated the Premises, when the final determination is made of Lessee’s share of such taxes and assessments, Lessee shall immediately pay to Lessor the amount of any additional sum owed.
3.5 Personal Property Taxes. Unless Lessee qualifies for an exemption from property taxes or possessory interest taxes due to its non -profit status, during the term hereof, Lessee shall pay, prior to delinquency all taxes assessed against and levied Item 1O - Page 7
4 upon fixtures, furnishings, equipment and all other personal property of Lessee contained in the Premises, and when possible Lessee shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the real property of Lessor.
3.6 Utilities. All cost of water, gas, heat, electricity, and sewer services used in, upon, or about the Demised Premises shall be paid by the City. Lessee shall pay all telephone, internet, cable television, satellite, broadband and other telecommunications services.
3.7 Late Payment. Lessee hereby acknowledges that late payment by Lessee to Lessor of rental or other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges.
Accordingly, any payment of any sum to be paid by Lessee not paid within ten (10) days of its due date , shall be subject to a five percent (5%) late charge. Lessor and Lessee agree that this late charge represents a reasonable estimate of such costs and expenses and is fair compensation to Lessor for its loss suffered by such late payment by Lessee.
Sixty (60) days before the anniversary date each year the City shall notify the Lessee of any outstanding delinquency, which must be cured prior to the anniversary date or the City may exercise its right of termination under section 2.5 and terminate the lease.
3.8 Interest. Any sum to be paid pursuant to the terms of this Lease not paid when due shall bear interest from and after the due date until paid at a rate equal to three percent (3%) over the reference rate being charged by Bank of America, N.A. from time to time during such period, so long as the rate does not exceed the maximum non - usurious rate permitted by law in which case interest shall be at the maximum non - usurious rate allowed by law at the time the sum became due.
4.0 USE OF THE PREMISES
4.1 Permitted Use. The Lessor hereby leases to Lessee and Lessee leases from Lessor the Premises with appurtenances as defined herein, for the purpose of conducting thereon only the use specified in Section 1.7 of this Lease and for no other use. No signs posters or similar devices shall be erected, displayed or maintained by the Lessee in view of the general public without advance written notice of the Airport Executive Director.
4.2 Prohibited Use. The operations of the Lessee shall be conducted in an orderly and proper manner and so as not to annoy, disturb, or be offensive to others at the Airport. No solicitation of the public is allowed. Tenant shall provide uniforms and its employees shall wear badges or other means of identification.
4.3 Compliance with Laws. Lessee shall, at his own cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the use of the Premises, and shall faithfully observe in said use all mun icipal ordinances, including, but not limited to, the General Plan and zoning ordinances, state and federal statutes, or other governmental regulations now in force or which shall hereinafter be in force. Lessee’s violation of law Item 1O - Page 8
5 shall constitute an incurable default under this Lease. The judgment of any court of competent jurisdiction, or the admission of Lessee in any action or proceeding against Lessee, whether Lessor is a party thereto or not, that Lessee has violated any such order or statute in said use, shall be conclusive of that fact as between the Lessor and Lessee.
Lessee shall not engage in any activity on or about the Premises that violates any Environmental Law, and shall promptly, at Lessees sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency or Environmental Law for clean -up and removal of any contamination involving any Hazardous Material created or caused directly or indirect ly by Lessee. The term “Environmental Law” shall mean any federal, state or local law, statute, ordinance or regulation pert aining to health, industrial hygiene or the environmental conditions on, under or about the Demised Premises, including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C.
Sections 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Sections 6901 et seq.; (iii) California Health and Safety Code Sections 25100 et seq.; (iv) the Safe Drinking Water and Toxic Enforcement Act of 1986, California Hea lth and Safety Code Section 25249.5 et seq.; (v) California Health and Safety Code Section 25359.7; (vi) California Health and Safety Code Section 25915; (vii) the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 et seq.; (viii) California Water Code Section 1300 et seq.; and (ix) California Civil Code Section 3479 et seq., as such laws are amended and the regulations and administrative codes applicable thereto.
The term “Hazardous Material” includes, without limitation, any material or substan ce which is (i) defined or listed as a “hazardous waste”, “extremely hazardous waste”, “restrictive hazardous waste” or “hazardous substance” or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petrol eum product or fraction thereof; (iii) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms “Hazardous Materials” and “Environmental Laws” in their broadest sense. Lessee shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq. Lessee shall provide prompt written notice to Lessor of the existence of Hazardous Substances on the premises and all notices of violation of the Environmental Laws received by Lessee.
4.4 Operations for the benefit of Public. Lessee agrees to operate the Demised Premises for the use and benefit of the Public, to make available all Lessee facilities to the public, without discrimination on the grounds of sex, race, color, or national origin.
4.5 Public Facilities, Ingress, Egress and Quiet Enjoyment. City agrees that Lessee, upon payment of the rental hereunder and performing the covenants of the Lease, may quietly have, hold and enjoy the Demised Premises during the term of the Lease, and that Tenant shall have the non-exclusive right to use, in common with others, the public at the Airport and Tenant shall have a reasonable right of ingress and egress from the Demised Premises and the public facilities for its employees, visitors and customers.
Item 1O - Page 9
6 4.7 Hours of Business. Subject to the provisions of Section 7.0 hereof, Lessee shall continuously during the entire term hereof conduct and carry on Lessee’s business in the Premises and shall keep the Premises open for business and cause Lessee’s business to be conducted therein during the Lessee’s usual business hours of each and every business day.
5.0 ALTERATIONS AND REPAIRS
5.1 Alterations and Fixtures . Lessee shall not make, or suffer to be made, any alterations to the Premises, or any part thereof, without the prior written consent of Lessor. Construction Plans or detailed plans with scope of work shall be submitted to the Airport for initial review of proposed alteration. Any alterations to the Premises, except movable furniture and trade fixtures, shall become at once a part of the realty and shall at the expiration or earlier termination of this Lease belong to Lessor.
Lessee shall not in any event make an y changes to the exterior of the Premises. Any such alterations shall be in conformance with the requirements of City design and construction standards and all municipal, state, federal, and other governmental authorities, including requirements pertaining to the health, welfare or safety of employees or the public and in conformance with reasonable rules and regulations of Lessor. Any damage occasioned by such removal shall be repaired at Lessee's expense so that the Premises can be surrendered in a good, clean and sanitary condition as required by Section 5.2 hereof. Any and all fixtures and appurtenances installed by Lessee shall conform with the requirements of all municipal, state, federal, and governmental authorities, including requirements pertaining to the health, welfare, or safety of employees or the public. Upon completion of construction of the alterations, Lessee shall submit to Lessor evidence satisfactory to Lessor of the cost of sa id alterations ("Improvement Costs"). In the event the Lessor, at the request of the Lessee and at its sole discretion, incurs costs related to the financing, construction, improvements, and alterations of its leasehold, such costs shall be reimbursable by the Lessee.
5.2 Maintenance and Repair . Lessee shall, subject to Lessor's obligations hereinafter provided, at all times during the term hereof, and at Lessee's expense, keep, maintain and repair the Premises, and other improvements within the Premises in good and sanitary order, condition, and repair ( except as hereinafter provided). Lessor should be notified immediately of any necessary maintenance and repair of any store front, doors, window casements, walls, glazing, heating and air conditioning system, plumbing, pipes, electrical wiring and conduits . Lessee hereby waives all right to make repairs at the expense of Lessor, and Lessee hereby waives all rights provided for by the Civil Code of the State of California to make said repairs. By entering into the Premises, Lessee shall be deemed to have accepted the Premises as being in good and sanitary order, condition and repair. Lessee agrees on the last day of said term , or sooner termination of this Lease , to surrender the Premises with appurtenances, in the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements excepted. Lessee shall periodically sweep and clean the sidewalks adjacent to the Premises, as needed. Upon Lessee's possession of the Premises, Lessee shall be Item 1O - Page 10
7 deemed to have accepted the Premises as being in good condition and repair.
Lessee agrees that it will not, nor will it authorize any person to, go onto the roof of the building of which the Premises are a part without the prior written consent of Lessor. Said consent will be given only upon Lessor's satisfaction that any repairs necessitated as a result of Lessee's action will be made by Lessee at Lessee's expense and will be made in such a manner so as not to invalidate any guarantee relating to said roof.
5.3 Free from Liens. Lessee shall keep the Premises free from any liens arising out of any work performed, material furnished, or obligation incurred by Lessee or alleged to have been incurred by Lessee.
6.0 INSURANCE AND INDEMNIFICATION
6.1 Insurance. Prior to its ability to access the Demised Premises, Lessee will provide City with proof of insurance, at Tenant’s sole cost and expense, to remain in full force and effect during the entire term of this lease. The following policies of insurance shall be maintained:
A. Insurance Provided by Lessee.
Comprehensive or Commercial Form General Liability Insurance shall include the following minimal limits:
(i). General Liability including operations, products and completed operations $1,000,000 each occurrence for bodily injury, personal injury and property damage/$2,000,000 aggregate
(ii). Automobile $1,000, 000 each accident; $1,000,000 uninsured motorist
(iii). Workers Compensation $1,000,000 each accident/$1,000,000 each employee for disease.
(iv). Excess Liability/Umbrella Form $2,000,000.
B. An Additional Insured Endorsem ent is required for the General Liability Insurance policy naming the City, its officers, employees, and agents as additional insured on the policy.
C. The policies shall provide for a 30 day notice to the City prior to termination, cancellation, or change.
D. The general liability and excess liability/umbrella policies must be endorsed to provide that each policy shall apply on a primary and noncontributing basis in relation to any insurance or self -insurance, primary or excess, maintained by or available to the City or its officials, employees, and agents.
Item 1O - Page 11
8 E. The Workers Compensation policy shall contain the insurer's waiver of subrogation (or waiver of right of recovery) in favor of City, its elected officials, officers, employees, and agents.
F. If, in the City's opinion, the minimum limits of the insurance herein required have become inadequate during the period of this Lease, the Concessionaire shall increase such minimum limits by reasonable amounts on request of the City provided that said coverage is available at standard commercial rates.
6.2 Indemnification . To the fullest extent permitted by law, Lessee shall, at Lessee's sole expense and with counsel reasonably acceptable to City, defend, indemnify, and hold harmless City and City's officers, officials, employees and agents from and against all claims, (in cluding demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including consultant and expert fees, costs of investigation, court costs and attorney’s fees) from any cause, arising out of or relating (directly or indirectly) to this Lease, the tenancy created under this Lease, or the Demised Premises, including without limitation:
A. The use or occupancy, or manner of use or occupancy, of the Demised Premises;
B. Any act, error or omission, or negligence of Lessee or of any subtenant, invitee, guest, contractor or licensee or Lessee or any subtenant in, on, or about the Demised Premises;
C. Lessee’s conducting or managing of its business;
D. Any alterations, activities, work, or things done, omitted, permitted, allowed, or suffered by Lessee in, at, or about the Demised Premises , including the violation of or failure to comply with any insurance requirements or any applicable laws, statues, ordinances, standards, rules, regulations, orders, decrees, or judgments in existence on the Commencement Date or enacted, promulgated, or issued after the date of this Lease, and ;
E. Any breach or default in performance of any obligation on Lessee’s part to be performed under this Lease, whether before or during the term of this Lease or after its expiration or earliest termination.
6.3 This indemnification extends to and includes, without limitation, claims for:
A. Injury to any persons (including death at any time resulting from that injury);
Item 1O - Page 12
9 B. Loss of, injury or damage to, or destruction of property (including loss of use at any time resulting from that loss, injury, damage, or destruction); and
C. All economic losses and consequential or resulting damage of any kind.
6.4 Lessee’s indemnification obligation hereunder shall survive the expiration or earlier termination of this Lease until all claims against City involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statutes of limitations.
7.0 ABANDONMENT AND SURRENDER
7.1 Abandonment. Lessee shall not vacate or abandon the Premises at any time during the term of this Lease. If Lessee shall abandon, vacate or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee and left on the Premises shall be deemed to be abandoned, at the option of Lessor, except such property as may be mortgaged to Lessor.
7.2 Surrender of Lease. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or sub-tenancies, or may, at the option of Lessor, operate as an assignment to it of any or all of such subleases or sub - tenancies. In the event that Lessor fails to return the Premises in good condition, Lessor may perform any work necessary to correct deficiencies , and Lessee shall pay the cost of the work plus an administrative fee component of not more than 15 percent.
8.0 DAMAGE AND DESTRUCTION OF PREMISES . In the event of (a) partial or total destruction of the Premises during the term of this Lease which requires repairs to the Premises, or (b) the Premises being declared unsafe or unfit for occupancy by any authorized public authority for any reason other than Lessee's act, use or occupation, which declaration requires repairs to the Premises, Lessor shall forthwith make said repairs provided Lessee gives to Lessor thirty (30) days written notice of the necessity therefor. No such partial destruction (including any destruction necessary in order to make repairs required by any declaration made by any public authority) shall in any way annul or void this Lease except that Lessee shall be entitled to a proportionate reduction of Monthly Rental while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by Lessee in the Premises. However, if during the last two (2) years of the term of this Lease the Premises are damaged as a result of fire or any other insured casualty to an extent in excess of twenty five percent (25%) of the then replacement cost (excluding foundations), Lessor may within thirty (30) days following the date such damage occurs, terminate this Lease by written notice to Lessee. If Lessor, however, elects to make said repairs, and provided Lessor uses due diligence in making said repairs, this Lease shall continue in full force and effect, and the Monthly Rental shall be proportionately reduced while such repairs are being made as hereinabove provided.
Nothing in the foregoing to the contrary withstanding, if the Premises or said building is Item 1O - Page 13
10 damaged or destroyed at any time during the term hereof to an extent of more than twenty-five percent (25%) of the then replacement cost (excluding foundations) as a result of a casualty not insured against, Lessor may within thirty (30) days following the date of such destruction terminate this Lease upon written notice to Lessee. If Lessor does not elect to terminate because of said uninsured casualty, Lessor shall promptly rebuild and repair the Premises and/or the building and the Monthly Rental shall b e proportionately reduced while such repairs are being made as hereinabove provided. If Lessor elects to terminate this Lease, all rentals shall be prorated between Lessor and Lessee as of the date of such destruction. In respect to any partial or total destruction (including any destruction necessary in order to make repairs required by any such declaration of any authorized public authority) which Lessor is obligated to repair or may elect to repair under the terms of this Section, Lessee waives any statu tory right it may have to cancel this Lease as a result of such destruction.
9.0 SUBLETTING. For the purposes of this lease, subletting shall not be allowed.
10.0 DEFAULT
10.1 Default by Lessee. The occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Lessee: (a) the failure to pay any rental or other payment required hereunder to or on behalf of Lessor more than three (3) days after written notice from Lessor to Lessee that Lessee has failed to pay rent when due; (b) the failure to perform any of Lessee's agreements or obligations hereunder (exclusive of a default in the payment of money) where such default shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee which notice shall be deemed to be the statutory notice so long as such notice complies with statutory requirements; (c) the vacation or abandonment of the Premises by Lessee; (d) the making by Lessee of a general assignment for the benefit of creditors; (e) the filing by Lessee of a voluntary petition in bankruptcy or the adjudication of Lessee bankruptcy; (f) the appointment of a receiver to take possession of all or substantially all the assets of Lessee located at the Premises or of Lessee's leasehold interest in the Premises; (g) the filing by any creditor of Lessee of an involuntary petition in bankruptcy which is not dismissed within sixty (60) days after filing; or (h) the attachment, execution or other judicial seizure of all or substantially all of the assets of Lessee or Lessee's leasehold where such an attachment, execution or seizure is not discharged within sixty (60) days.
Any repetitive failure by Lessee to perform its agreements and obligations hereunder, though intermittently cured, shall be deemed an incurable default. Two (2) breaches of the same covenant within a sixty (60) day period, a notice having been given pursuant to (a) or (b) above for the first breach, or three (3) of the same or different breaches at any time during the term of this Lease for which notices pursuant to (a) or (b) abo ve were given for the first two (2) breaches shall conclusively be deemed to be an incurable repetitive failure by Lessee to perform its obligations hereunder.
In the event of any such default or breach by Lessee, Lessor may at any time thereafter, without further notice or demand, rectify or cure such default, and any sums expended by Lessor for such purposes shall be paid by Lessee to Lessor upon demand and as additional rental hereunder, with an administrative fee component of not Item 1O - Page 14
11 more than 15%. In the event of any such default or breach by Lessee, Lessor shall have the right (i) to continue the lease in full force and effect and enforce all of its rights and remedies under this Lease, including the right to recover the rental as it becomes due under this Lease, or (ii) Lessor shall have the right at any time thereafter to elect to terminate the Lease and Lessee's right to possession thereunder.
10.2 No Waiver. Acceptance of rental hereunder shall not be deemed a waiver of any default or a waiver of any of Lessor's remedies.
10.3 Lessor's Default. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Lessee in writing, specifying wherein Lessor has failed to perform such obligation; provided, however, that if the nature of Lessor's obligation is such that more than thirty (30) days are required for performance then Lessor shall not be deemed in default if Lessor commences performance within a thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Lessee have the right to terminate this Lease as a result of Lessor's default and Lessee's remedies shall be limited to damages and/or an injunction.
11.0 CONDEMNATION. In the event a condemnation or a transfer in lieu thereof results in a taking of any portion of the Premises, Lessor may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty -five percent (25 %) or more of the Premises, Lessee may, upon written notice given within thirty (30) days after such taking or transfer in lieu thereof, terminate this Lease. Lessee shall not be entitled to share in any portion of the award and Lessee hereby expressly waives any right or claim to a ny part thereof. Lessee shall, however, have the right to claim and recover, only from the condemning authority (but not from Lessor), any amounts necessary to reimburse Lessee for the cost of removing stock and fixtures. If this Lease is not terminated as above provided, Lessor shall use a portion of the condemnation award to restore the Premises.
12.0 MISCELLANEOUS
12.1 Reservation of Right to Modify Property. Lessor hereby reserves the right (but not the obligation) to renovate, modernize, rehabilitate, expand, reduce, reconfigure, enclose and/or otherwise alter all or any portion of the Premises (collectively "Modifications"), in such manner and at such time or time s, throughout the term of this Lease, as Lessor may, in its sole and absolute discretion, deem to be in the best interests of the Property. Such Modifications may include, without limitation, the right to construct new buildings on the Property for additio nal uses, to remove, renovate, repair, add to, modernize or otherwise alter the building in which the Premises are situated as well as other buildings, facilities, structures, malls, walkways, landscaping, parking and common areas or other areas within the Property. In connection with any and all such Modifications, Lessor may enter the Premises to the extent reasonably required by Lessor to pursue and complete such Modifications. In addition, Lessor may temporarily close portions of the parking and common areas and cause temporary obstructions in Item 1O - Page 15
12 connection with any Modifications. Lessee agrees that under no circumstances shall the Modifications as to any portion of the Property or the construction activity that takes place in the course of making the Modifications, or any aspect thereof, including Lessor's entry into the Premises, constitute an eviction or partial eviction of Lessee or a breach of Lessee's right to quiet enjoyment or of any other provision of this Lease, nor entitle Lessee to damages, injunctive relief or other equitable relief, nor entitle Lessee to any abatement or reduction in the Monthly Rental, additional rental or other charges or sums due under this Lease; provided Lessor uses reasonable efforts to mitigate any adverse effects on Lessee caused by the Modifications.
12.2 Entry and Inspection . Lessor and its agents shall have the right to enter upon the Leased Premises during such times as may be reasonable under the circumstances for any purpose necessary, incidental to or connected with the performance of its obligations or in the exercise of its government al functions relating to the public health, safety, good conduct, and the proper management of the Airport.
12.3 Estoppel Certificate. In the event of any proposed encumbrance, assignment, or other transfer of this Lease, Tenant shall submit its request to the City no less than 90 days in advance of the effective date of the proposed assignment in order for the City to make its determination If, as a result of a proposed sale, assignment, or hypothecation of the Premises or the land thereunder by Lessor, or at any other time, an estoppel certificate shall be requested of Lessee, Lessee agrees, within ten (10) days thereafter, to deliver su ch estoppel certificate addressed to any existing or proposed mortgagee or proposed purchaser, and to the Lessor. Lessee shall be liable for any loss or liability resulting from any incorrect information certified, and such mortgagee and purchaser shall have the right to rely on such estoppel certificate and financial statement.
12.4 Jurisdiction and Venue . The parties hereto agree that the State of California is the proper jurisdiction for litigation of any matters relating to this Lease, and service mailed to the address of Lessees set forth herein shall be adequate service for such litigation. The parties further agree that Riverside County, California is the proper place for venue as to any such litigation and Lessee agrees to submit to the personal jurisdiction of such court in the event of such litigation.
12.5 Partial Invalidity. If any term, covenant, condition or provision of this Lease is held to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereof.
12.6 Successors in Interest. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder.
12.7 No Oral Agreements . This (i) Lease covers in full each and every agreement of every kind or nature whatsoever between the parties hereto concerning this Lease, (ii) supersedes any and all previous obligations, agreements and understandings,
Item 1O - Page 16
13 if any, between the parties, oral or written, and (iii) merges all preliminary negotiations and agreements of whatsoever kind or nature herein. Lessee acknowledges that no representations or warranties of any kind or nature not specifically set forth herein have been made by Lessor or its agents or representatives.
12.8 Authority. In the event that Lessee is a corporation or a partnership, each individual executing this Lease on behalf of said corporation or said partnership, as the case may be, represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said co rporation or partnership, in accordance with a duly adopted resolution of the Board of Directors, if a corporation, or in accordance with the Partnership Agreement, if a partnership, and that this Lease is binding up on said corporation or partnership in accordance with its terms. Lessee represents and warrants to Lessor that the entering into this Lease does not violate any provisions of any other agreement to which Lessee is bound.
12.9 Relationship of Parties. The relationship of the parties hereto is that of Lessor and Lessee, and it is expressly understood and agreed that Lessor does not in any way or for any purpose become a partner of Lessee in the conduct of Lessee's business or otherwise, or a joint venture with Lessee, and that the provisions of this Lease and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method whereby rental payments are to be measured and ascertained.
12.10 Nondiscrimination. Lessee for itself, personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Demised Premises that: (1) no person, because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, g ender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”) shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (2) it shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis; (3) as a condition precedent to City’s lawful capacity to enter this Lease, and in executing this Lease, Lessee certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Lessee activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that, to the extent applicable to Lessee, it is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non -discrimination in city contracting; (4) in the construction of any improvements on, over, or under such Premises and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (5) it shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Item 1O - Page 17
14 Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, including applicable Regulations that may be amended and are hereby incorporated and attached as Exhibit “C” & “D”,
12.11 Notices. Wherever in this Lease it shall be required or permitted that notice and demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served in writing and shall not be deemed to have been duly given or served unless in writing, and personally served or forwarded by certified mail, postage prepaid, addressed, if to Lessor, as specified in Section 1.9. Either party may change the address set forth herein by written notice by certified mail to the other. Any notice or demand given by certified mail shall be effective one (1) day subsequent to mailing.
To City: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite OFC
Palm Springs, CA 92262
To Tenant: USO, Inc.
Attn: Executive Director
340 Golden Shore, Suite 400
Long Beach, CA 90802
12.12 Waiver. No delay or omission in the exercise of any right or remedy by a non-defaulting party shall impair such right or remedy or be construed as a waiver.
A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Lease.
12.13 Exhibits and Addenda. The Exhibits and Addenda attached to this Lease are made a part hereof as if fully set forth herein. In the event of a conflict between the terms and provisions of Addenda and the terms and provisions of this Lease, the terms and provisions of the Addenda shall prevail.
SIGNATURE PAGE TO FOLLOW
Item 1O - Page 18
SIGNATURE PAGE FOR LEASE AGREEMENT No. 25L134 BETWEEN
THE CITY OF PALM SPRINGS AND UNITED SERVICE ORGANIZATIONS , INC.
IN WITNESS WHEREO
F, the Parties have ent ered into this Non-Exclusive Operating and
Lease Agreement as of the day and year first above written.
CITY OF PALM SPRINGS
Approved By:
Scott Stiles
City Manager
Date
Attested By:
City Clerk
Approved as to Form:
City Attorney
15 UNITED SERVICE ORGANI ATIONS,
INC.
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Item 1O - Page 19
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KELLY MATTHEWS
Notary Public
Common wea lth of Virgin ia
Registra tion No. 8088 4 70
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WITNESS my hand .and offldal seal.
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KELLY MATTHEWS
Notary Public
Commonwealt h of Virginia
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My Com mission Expires Feb 28, 2027
Place Notary Seal Aboll'e
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WITNESS mv ha:nd and official seal.
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EXHIBIT “A”
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Item 1O - Page 22
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Lowell Valencia-Miller | Executive Program Administrator Palm Springs International Airport (PSP)
3400 East Tahquitz Canyon Way, Suite 1, Palm Springs, CA 92264 City of Palm Springs
April 1, 2025
210 N. El Cielo Rd., Palm Springs, CA 92262
United Service Organizations
April 1
25 March 31
26 1.00
0 Item 1O - Page 23
EXHIBIT "8"
ESTOPPEL CERTIFICATE
Lessee:
Lessor:
Date of Lease:
Demised Premises:
To:
The undersigned hereby certifies as follows:
1. The undersigned is the Lessee ("Lessee") under the above-referenced lease ("Lease") covering the above-referenced premises ("Demised Premises").
2. The Lease constitutes the entire agreement between Lessor and Lessee with respect to the Demised Premises and the Lease has not been modified, changed, altered or amended in any respect except as set forth above.
3. The term of the Lease commenced on ____ 20 __ and,
including any presently exercised option or renewal term, will expire on ___ _. 20 __ . Lessee is in possession of the Demised Premises and is the actual occupant in possession thereof and has not sublet, assigned or hypothecated its leasehold interest. All improvements to be constructed on the Demised Premises by Lessee have been completed and accepted by Lessor and any Lessee construction allowances have been paid in full.
4. As of this date, to the best of Lessee's knowledge, there exists no breach or default, nor state of facts which, with notice, the passage of time, or both, would result in a breach or default on the part of either Lessee or Lessor. To the best of Lessee's knowledge, no claim, controversy, dispute, quarrel or disagreement exists between Lessee and Lessor.
5. Lessee is currently obligated to pay Monthly Rent in installments of $ per month, and such monthly installments have been paid not more than one month in advance. To the best of Lessee's knowledge, no other rent has been paid in advance and Lessee has no claim or defense against Lessor under the Lease and is asserting no offsets or credits against either the rent or Lessor. Lessee has no claim against Lessor for any security or other deposits except $ which was paid pursuant to the Lease.
6. Lessee has no option or preferential right to lease or occupy additional space within the Property of which the Demised Premises are a part. Lessee has no option or preferential right to purchase all of any part of the Demised Premises nor 18 12th
May
25 Ryan Okita
Exedcutive Director
Item 1O - Page 24
any right or interest with respect to the Demised Premises other than as Lessee under the Lease. Lessee has no right to renew or extend the term of the Lease except as set forth in the Lease.
7. Lessee has made no agreements with Lessor or its agent or employees concerning free rent, partial rent, rebate of rental payments or any other type of rent or other concession except as expressly set forth in the Lease.
8. There has not been filed by or against Lessee a petition in bankruptcy, voluntary or otherwise, any assignment for the benefit of creditors, any petition seeking reorganization or arrangement under the bankruptcy laws of the United States, or any state thereof, or any other action brought under said bankruptcy laws with respect to Lessee.
9. All insurance which Lessee is required to maintain under the Lease has been obtained by Lessee and is in full force and effect and all premiums with respect thereto have been paid.
Dated this ____ day of __________ , 20 __
s1E:06@
Its: --------------
19 20
EXHIBIT “C”
Item 1O - Page 25
08127/13
APPENDIXA
1400.11
Appendix 4
During the penonnance of this contract, the contractor, for itself, its assignees, and suroessors in interest (hereinafter referred to as the "tontractof') agrees as follows:
1. Compliace with Reguhttions: The oontractor (hereinafter includes consultants) will com.ply with the Acts and the Regulations relative to Non-disa:immation in Federally-assisted programs of the U.S. Department ofTransportation, Federal A rati on Administration, as they may be amended from time to time, wJrich are herein incorporated by reference and .made a part of this conb:act.
2. Non-discrimination: The contractor, with regard to the work perlon:ned by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selec.tion and retention of subcontractors, including procurements of materials and leases of equipment.
The contractor will not participate directly or indirectl y in the iii scriromation prolnl>ited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appencli.,; B of 49 CFR part 21.
3. Solicitations for Subcontra cts, Including Procurtmen ts of Materials and Equipmen t: In all solicitations, either by competitive bidding, or negotiation made by the contractor for work to be perlonned under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the contractor of the contractor's obligations under this contract and the Acts and the Regulations relative to Non-discrimination on the grounds of race, color, or national origin.
4. Information and Repor ts: The contractor will provide all information and reports required by the Acts, the Regu]ations, md directives issued pursuant ihereto and will permit access to rts books, records, accounts, other sources of information, and its facilities as may be detemrined by the Recipient or the f ederal Al'iation Administration to be pertinent to asoertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to fumish the information, the contractor will so certify to the Recipient or the Federal Ariation Administration, as appropriate, md will set foJ1h what efforts it has made to obtain the information.
5. Sanctions for ~onrompliance: In the event of a contJactor's noncompliance with the Non discrimination provisions of this contract, the Recipient will impose such contract sanctions as rt or the Federal ,h i ation Ad:minis1ration may determine to be appropriate, including, but not funited to:
51 21
Item 1O - Page 26
08/27113 1400.1 1
AppencfJX4
a. withholding payments to the contractor under 1he contract until the contractor complies; andfor
b. cancelling, teuninati.ng, or suspending a contract, in whole or in part
6. Incorporation of Pro.isions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The contractor will take action ·with :respect to any subcontract or procurement as the Recipient or the Federal A"iation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involved in, or is threatened wi1h litigation by a subcontractor, or supplier because of suoh ctirection., the contractor may request 1he Rec-ipient to enter into any litigation to protect the interests of the Recipient. In addition. the contractor may request the United States to enter into the litigation to protect 1he interests of the United States. 22 EXHIBIT “D”
Item 1O - Page 27
08J27/13
APPE NDIX E
14CXl11
Appendix 4
During the perlormance of this contract, the contractor, for itself;, its assignees, and successors in interest (hereinafter refened to as the "contractor") agrees to comply with the following non discrimination statutes and authorities; including but not limited to:
Pe.rtinent Noo-Disni.mination Authorities:
• Tille VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat 252), (prolnoits discrimination on the basis of race, color, national origin); and 49 CFR part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C . § 4601), (prolnoits unfair treatment ofpersons displaced or "nose property has !been acquired because ofFederal or Federal-aid programs and projects); • Section S04 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prolnoits discrimination on the basis of disability); and 49 CFR part 27; • The Age Discrimination Ac.t ofl97S , as amended, (42 U.S.C. § 6101 et seq.), (prolu:oits discr:immation on the basis of age);
• Allport and Airway Improvement Act of 1982, ( 49 USC § 471, Section 47123), as amended, (prolnoits discrimi:na,tion based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL l 00-209), (Broadened the scope, coverage and applicability of Title VI of the Ci,iil Rights Act of 1964, The Age Discrimination Act of 197S and S«tion 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of 1he Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
• Titles II and m of the Americans with Disabilities Act, which prohibit discrim.i.nation on the basis of disability in the opeiation of public entities, public and private transportation SJTStems, places of public accommodation, and certain testing entities (42 U.S.C . §§ 12131-12189) as :implemented by Department ofTransportation regulations at 49 CFR pans 37 and 38~
• The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. § 47123) (prolnoits discrimination on the basis of race, color, national origin, and sex); • Executi\.'e Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures mscrimmation against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse hmnan ihealth or environmental effects on minority and low-income populations;
'S7
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L133 WITH WEST AVIATION SERVICES – SAN DIEGO, INC. DBA SIERRA AVIATION
GROUP FOR TERMINAL OFFICE SPACE AT THE PALM SPRINGS
INTERNATIONAL AIRPORT
RECOMMENDATION:
Approve the Airport Non-Exclusive Operating and Lease Agreement No. 25L133 with West Aviation Services – San Diego, Inc. dba Sierra Aviation Group for the lease of 345 square feet of office space at $133.04 per square foot per year, effective March 1, 2025 through February 28, 2026, with two (2) one-year options to extend.
1. Authorize the City Manager or designee to execute all necessary documents.2.
Attachments
Item 1P
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: APPROVE NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L133 WITH WEST AVIATION SERVICES – SAN DIEGO, INC. DBA
SIERRA AVIATION GROUP FOR TERMINAL OFFICE SPACE AT THE
PALM SPRINGS INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve the Non-Exclusive Operating and Lease Agreement (Agreement) with West Aviation Services – San Diego, Inc. dba Sierra Aviation Group for office space use in the terminal at the Palm Springs International Airport (Airport) in support of the company’s skycap, wheelchair services and baggage delivery services for airline passengers.
RECOMMENDATION:
1. Approve the Airport Non-Exclusive Operating and Lease Agreement No. 25L133 with West Aviation Services – San Diego, Inc. dba Sierra Aviation Group (Attachment A) for the lease of 345 square feet of office space at $133.04 per square foot per year, effective March 1, 2025 through February 28, 2026, with two (2) one-year options to extend.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B), West Aviation Services – San Diego, Inc. dba Sierra Aviation Group is a California Corporation licensed to do business in the City of Palm Springs.
BACKGROUND:
The airlines at Palm Springs International Airport contract with companies to provide specialized services for their passengers. These specialized services include skycap, Item 1P - Page 1
City Council Staff Report
June 11, 2025 -- Page 2
Non-Exclusive Operating and Lease Agreement with Sierra Aviation Group
wheelchair, and baggage delivery services.
STAFF ANALYSIS:
For over two decades, West Aviation Services – San Diego, Inc. dba Sierra Aviation Group, has been under contract with the airlines and has leased Airport terminal office space in the North Ticket Wing adjacent to the ticketing area in support of the airlines’ operations. Sierra Aviation uses the leased space for administrative and employee operations necessary for this important element in the overall customer service of the Airport.
Sierra Aviation Group’s current Non-Exclusive Operating and Lease Agreement (A5958) expired on May 31, 2024. Sierra Aviation is currently in a month-to-month holdover period.
Sierra Aviation has been a good tenant of the Airport and has provided consistent service to their airline customers.
In addition to the Non-Exclusive Operating and Lease Agreement for office space use, Sierra Aviation Group also possesses a valid Commercial Activity Permit with the Airport.
The permit grants Sierra Aviation Group the privilege of conducting Commercial Airline Service activities at the Airport in exchange for a Commercial Service Fee. The current Commercial Service Fee at Palms Springs International Airport is 7% of the gross revenues of the Commercial Activity Permit holder. This Commercial Service Fee is in addition to the office space lease rent collected under this Agreement.
ENVIRONMENTAL ASSESSMENT
:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above- mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports the City Council Broad Goal of Economic Development as well as the Airport’s Strategic Plan Priority 3 – Goal 2: Create Revenue Diversification Through Strategic Partnerships.
FISCAL IMPACT:
Approval of this action will result in the generation of Airport Revenues of $45,898.80 for the lease term of March 1, 2025, through February 28, 2026, to Airport Fund 415.38100 Item 1P - Page 2
City Council Staff Report
June 11, 2025 -- Page 3
Non-Exclusive Operating and Lease Agreement with Sierra Aviation Group
– Airline Terminal / Joint Use Fee. The Agreement provides for two extension options. If the two extensions are exercised, the revenue would continue through February 29, 2028, as adjusted annually on July 1 in an amount equal to the increase in the consumer price index for All- Urban Consumers (CPI -U) in the Riverside -San Bernardino- Ontario Metropolitan Statistical Area (MSA).
The Commercial Service Fees generated by Sierra Aviation Group for FY2025 are estimated to be $80,000. In projecting continuation of commercial activities at the Airport, Commercial Service Fees from Sierra Aviation Group are estimated to be $84,000 for FY 2026 and $85,000 for FY 2027.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett Jr.
City Attorney: Geremy Holm
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Airport Non-Exclusive Operating Lease Agreement Sierra Aviation Group B. Public Integrity Disclosure
Item 1P - Page 3
ATTACHMENT A
LEASE AGREEMENT
Item 1P - Page 4
1 WEST AVIATION SERVICES – SAN DIEGO, INC. dba SIERRA AVIATION GROUP
25L133 NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
FOR
TERM INAL U SE SPACE AT
PALM SPRINGS INTERNATIONAL AIRPORT
THIS LEASE (“Lease”) is made and entered into this 1st day of March, 2025, by and between the CITY OF PALM SPRINGS, a municipal corporation (“Lessor”), and WEST AVIATION SERVICES – SAN DIEGO, INC. DBA SIERRA AVIATION GROUP, a California Corporation (“Lessee”). City and Lessee may herein be referred to individually as a “Party” and collectively as “Parties.”
R E C I T A L S:
A. Lessor desi
res to lease terminal use space at Palm Springs International Airport (“Airport”) to operate a Commercial Aeronautical Activity, which services includes skycap, wheelchair services and baggage delivery services for airline passengers.
B. City believes that the travelers using the City’s airport terminal would benefit from these airline related services.
NOW THEREFORE, City and Lessee mutually agree as follows:
AGREEMENT
1.0 LEAS
E SUMMARY. Certain fundamental lease provisions are presented in this Section and represent the agreement of the parties hereto, subject to further definition and elaboration in the respective referenced Sections and elsewhere in this Lease. In the event of any conflict between any fundamental lease provision and the balance of this Lease, the latter shall control. References to specific Sections are for convenience only and designate some of the Sections where references to the particular fundamental lease provisions may appear.
1.1 Demised Premises. The “Demised Premises” shall refer to that certain property consisting of office space totaling approximately 345 square feet, located in the Palm Springs International Airport terminal building and more particularly described in Exhibit “A” attached hereto.
1.2 Lease Term. The term of this lease shall commence on March 1, 2025 and shall terminate on February 28, 2026.
1.3 Extension Option. Lessee may have the right to renew the Lease for two (2), one (1) year terms which may be exercised by providing written notice to Lessor no less than sixty (60) prior to the expiration of the Lease term or renewal period. The rental payments for any extension shall be calculated as indicated in Section 1.4.
Item 1P - Page 5
2 1.4 Lease Rental Payments. The rent for the Demised Premises is at a Rate of $133.04 per square foot per annum for office space, paid in monthly increments of $3,824.90 due on the first day of each month. The monthly rent shall be adjusted July 1 st of each year in an amount equal to the increase in the consumer price index for All- Urban Consumers (CPI-U) in the Riverside-San Bernardino- Ontario Metropolitan Statistical Area (MSA), as published by the Bureau of Labor Statistics, its successor, or substantively similar, widely adopted measurement of cost inflation for the Palm Springs region. The rent shall be escalated annually, effective each July 1st, using CPI-U indices comparing January of the prior year to January of the current year. City shall send written notice of the applicable rent increase of each successive year along with documentation evidencing the calculation used to arrive at the figure.
1.5 Extension Options. Extension options in this lease as noted in Section
1.3. 1.6 Security Deposit. N/A
1.7 Use of Premises. Lessee shall use and occupy the Premises for the purpose of administrative services/office/employee workspace related to the Commercial Aeronautical Activities only.
Lessor: City of Palm Springs
Attn: City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Cc: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite 1
Palm Springs, CA 92262
2.0 TERM
2.1 Term. The term of this Lease shall commence on the date specified in Section 1.2 (“Commencement Date”) and shall continue for the period specified therein unless earlier terminated as provided herein.
2.2 Reserved.
2.3 Time. Time is of the essence of this Lease.
2.4 Force Majeure. If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, strikes, lockouts, labor troubles, inability to procure ma terials, restrictive governmental laws or regulations or other cause without fault and beyond the control of the party obligated (financial inability excepted), performance of su ch act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided such party provides the other party written notice of such event within ten (10) days of the commencement of the prompt payment of any rental or other charge required of Lessee hereunder except as may be expressly provided elsewhere in this Lease.
Item 1P - Page 6
3 2.5 Termination by Lessor. Lessor shall have the right to terminate this Lease by providing Lessee with at least thirty (30) days advance written notice. If Lessor terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor, including, but not limited to, the value of Lessee’s leasehold interest, loss of go odwill and relocation benefits, inverse condemnation or the taking of property and Lessor shall have no obligation to pay Lessee therefor.
2.6 Holding Over. Any holding over with the consent of Lessor, express or implied, shall be construed to be a tenancy from month-to-month, cancelable upon thirty (30) days’ written notice, and at a monthly rental equal to one hundred and fifty percent (150%) of the monthly rental in effect at the expiration of the contract services agreement.
2.7 Termination by Lessee. Lessee shall have the right to terminate this Lease by providing Lessor with at least thirty (30) days advance written notice. If Lessee terminates this Lease as provided in this Section, Lessee hereby waives any right to receive any other compensation from Lessor, including, but not limited to, the unamortized value of Lessee’s leasehold improvements, Lessee’s leasehold interest, loss of goodwill and relocation benefits, inverse condemnation or the taking of property and Lessor shall have no obligation to pay Lessee therefor.
3.0 RENTAL
3.1 Monthly Rental. Lessee shall pay to Lessor, during the term of this Lease from and after the Commencement Date, as monthly rental (“Monthly Rental”) for the Premises the sum specified in Section 1.4 hereof, which sum shall be paid in advance on the first day of each calendar month. In the event the Commencement Date does not occur on the first day of a calendar month, the Lessee shall pay the rental for the fractional month on the Commencement Date on a per diem basis calculated on a thirty (30) day month. All rental to be paid by Lessee to Lessor shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand, at the address designated in Section 1.7 hereof.
3.2 Rental Adjustment. Rental adjustment are as specified in Section
1.4. 3.3 Additional Rental. For the purposes of this Lease, all monetary obligations of Lessee under this Lease, including but not limited to, insurance premiums, property taxes, maintenance expenses, late charges and utility costs shall be deemed to be additional rental.
3.4 Real Property Taxes. Unless Lessee qualifies for an exemption, in addition to all rentals herein reserved, Lessee shall pay, at the election of Lessor, either directly to the taxing authority or to Lessor, annual real estate taxes and assessments levied upon the Premises (including any possessory interest taxes), as well as taxes of every kind and nature levied and assessed in lieu of, in substitution for, or in addition to, existing real property taxes. Such amount shall be paid on the date that is twenty (20) days prior to the delinquent date or, if Lessor receives the tax bill, ten (10) days after
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4 receipt of a copy of the tax bill from Lessor, whichever is later. Even though the term of this Lease has expired and Lessee has vacated the Premises, when the final determination is made of Lessee’s share of such taxes and assessments, Lessee shall immediately pay to Lessor the amount of any additional sum owed.
3.5 Personal Property Taxes. Unless Lessee qualifies for an exemption from property taxes or possessory interest taxes due to its non-profit status, during the term hereof, Lessee shall pay, prior to delinquency all taxes assessed against and levied upon fixtures, furnishings, equipment and all other personal property of Lessee contained in the Premises, and when possible Lessee shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the real property of Lessor.
3.6 Utilities. All cost of water, gas, heat, electricity, and sewer services used in, upon, or about the Demised Premises shall be paid by the City. Lessee shall pay all telephone, internet, cable television, satellite, broadband and other telecommunications services.
3.7 Late Payment. Lessee hereby acknowledges that late payment by Lessee to Lessor of rental or other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which is extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges.
Accordingly, any payment of any sum to be paid by Lessee not paid within ten (10) days of its due date, shall be subject to a five percent (5%) late charge. Lessor and Lessee agree that this late charge represents a reasonable estimate of such costs and expenses and is fair compensation to Lessor for its loss suffered by such late payment by Lessee.
Sixty (60) days before the anniversary date each year the City shall notify the Lessee of any outstanding delinquency, which must be cured prior to the anniversary date or the City may exercise its right of termination under section 2.5 and terminate the lease.
3.8 Interest. Any sum to be paid pursuant to the terms of this Lease not paid when due shall bear interest from and after the due date until paid at a rate equal to three percent (3%) over the reference rate being charged by Bank of America, N.A. from time to time during such period, so long as the rate does not exceed the maximum non- usurious rate permitted by law in which case interest shall be at the maximum non- usurious rate allowed by law at the time the sum became due.
4.0 USE OF THE PREMISES
4.1 Permitted Use. The Lessor hereby leases to Lessee and Lessee leases from Lessor the Premises with appurtenances as defined herein, for the purpose of conducting thereon only the use specified in Section 1.7 of this Lease and for no other use. No signs posters or similar devices shall be erected, displayed or maintained by the Lessee in view of the general public without advance written notice of the Airport Executive Director.
4.2 Prohibited Use. The operations of the Lessee shall be conducted in an orderly and proper manner and so as not to annoy, disturb, or be offensive to others
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5 at the Airport. No solicitation of the public is allowed. Tenant shall provide uniforms and its employees shall wear badges or other means of identification.
4.3 Compliance with Laws. Lessee shall, at his own cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the use of the Premises, and shall faithfully observe in said use all municipal ordinances, including, but not limited to, the General Plan and zoning ordinances, state and federal statutes, or other governmental regulations now in force or which shall hereinafter be in force. Lessee’s violation of law shall constitute an incurable default under this Lease. The judgment of any court of competent jurisdiction, or the admission of Lessee in any action or proceeding against Lessee, whether Lessor is a party thereto or not, that Lessee has violated any such order or statute in said use, shall be conclusive of that fact as between the Lessor and Lessee.
Lessee shall not engage in any activity on or about the Premises that violates any Environmental Law, and shall promptly, at Lessees sole cost and expense, take all investigatory and/or remedial action required or ordered by any governmental agency or Environmental Law for clean-up and removal of any contamination involving any Hazardous Material created or caused directly or indirectly by Lessee. The term “Environmental Law” shall mean any federal, state or local law, statute, ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on, under or about the Demised Premises, including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C.
Sections 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Sections 6901 et seq.; (iii) California Health and Safety Code Sections 25100 et seq.; (iv) the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq.; (v) California Health and Safety Code Section 25359.7; (vi) California Health and Safety Code Section 25915; (vii) the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 et seq.; (viii) California Water Code Section 1300 et seq.; and (ix) California Civil Code Section 3479 et seq., as such laws are amended and the regulations and administrative codes applicable thereto.
The term “Hazardous Material” includes, without limitation, any material or substance which is (i) defined or listed as a “hazardous waste”, “extremely hazardous waste”, “restrictive hazardous waste” or “hazardous substance” or considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii) petroleum or a petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances known by the State of California to cause cancer and/or reproductive toxicity. It is the intent of the parties hereto to construe the terms “Hazardous Materials” and “Environmental Laws” in their broadest sense. Lessee shall provide all notices required pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq. Lessee shall provide prompt written notice to Lessor of the existence of Hazardous Substances on the premises and all notices of violation of the Environmental Laws received by Lessee.
4.4 Operations for the benefit of Public. Lessee agrees to operate the Demised Premises for the use and benefit of the Public, to make available all Lessee facilities to the public, without discrimination on the grounds of sex, race, color, or national
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6 origin.
4.5 Public Facilities, Ingress, Egre ss and Quiet Enjoyment. City agrees that Lessee, upon payment of the rental hereunder and performing the covenants of the Lease, may quietly have, hold and enjoy the Demised Premises during the term of the Lease, and that Tenant shall have the non-exclusive right to use, in common with others, the public at the Airport and Tenant shall have a reasonable right of ingress and egress from the Demised Premises and the public facilities for its employees, visitors and customers.
4.7 Hours of Business. Subject to the provisions of Section 7.0 hereof, Lessee shall continuously during the entire term hereof conduct and carry on Lessee’s business in the Premises and shall keep the Premises open for business and cause Lessee’s business to be conducted therein during the Lessee’s usual business hours of each and every business day.
5.0 ALTERATIONS AND REPAIRS
5.1 Alterations and Fixtures. Lessee shall not make, or suffer to be made, any alterations to the Premises, or any part thereof, without the prior written consent of Lessor. Construction Plans or detailed plans with scope of work shall be submitted to the Airport for initial review of proposed alteration. Any alterations to the Premises, except movable furniture and trade fixtures, shall become at once a part of the realty and shall at the expiration or earlier termination of this Lease belong to Lessor.
Lessee shall not in any event make any changes to the exterior of the Premises. Any such alterations shall be in conformance with the requirements of City design and construction standards and all municipal, state, federal, and other governmental authorities, including requirements pertaining to the health, welfare or safety of employees or the public and in conformance with reasonable rules and regulations of Lessor. Any damage occasioned by such removal shall be repaired at Lessee's expense so that the Premises can be surrendered in a good, clean and sanitary condition as required by Section 5.2 hereof. Any and all fixtures and appurtenances installed by Lessee shall conform with the requirements of all municipal, state, federal, and governmental authorities, including requirements pertaining to the health, welfare, or safety of employees or the public. Upon completion of construction of the alterations, Lessee shall submit to Lessor evidence satisfactory to Lessor of the cost of said alterations ("Improvement Costs"). In the event the Lessor, at the request of the Lessee and at its sole discretion, incurs costs related to the financing, construction, improvements, and alterations of its leasehold, such costs shall be reimbursable by the Lessee.
5.2 Maintenance and Repair. Lessee shall, subject to Lessor's obligations hereinafter provided, at all times during the term hereof, and at Lessee's expense, keep, maintain and repair the Premises, and other improvements within the Premises in good and sanitary order, condition, and repair (except as hereinafter provided). Lessor should be notified immediately of any necessary maintenance and repair of any store front, doors, window casements, walls, glazing, heating and air
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7 conditioning system, pl umbing, pipes, electrical wiring and conduits. Lessee hereby waives all right to make repairs at the expense of Lessor, and Lessee hereby waives all rights provided for by the Civil Code of the State of California to make said repairs. By entering into the Premises, Lessee shall be deemed to have accepted the Premises as being in good and sanitary order, condition and repair. Lessee agrees on the last day of said term, or sooner termination of this Lease, to surrender the Premises with appurtenances, in the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements excepted. Lessee shall periodically sweep and clean the sidewalks adjacent to the Premises, as needed. Upon Lessee's possession of the Premises, Lessee shall be deemed to have accepted the Premises as being in good condition and repair.
Lessee agrees that it will not, nor will it authorize any person to, go onto the roof of the building of which the Premises are a part without the prior written consent of Lessor. Said consent will be given only up on Lessor's satisfaction that any repairs necessitated as a result of Lessee's action will be made by Lessee at Lessee's expense and will be made in such a manner so as not to invalidate any guarantee relating to said roof.
5.3 Free from Liens. Lessee shall keep the Premises free from any liens arising out of any work performed, material furnished, or obligation incurred by Lessee or alleged to have been incurred by Lessee.
6.0 INSURANCE AND INDEMNIFICATION
6.1 Insurance. Prior to its ability to access the Demised Premises, Lessee will provide City with proof of insurance, at Tenant’s sole cost and expense, to remain in full force and effect during the entire term of this lease. The following policies of insurance shall be maintained:
A. Insurance Provided by Lessee.
Comprehensive or Commercial Form General Liability Insurance shall include the following minimal limits:
(i). General Liability including op erations, products and completed operations $1,000,000 each occurrence for bodily injury, personal injury and property damage/$2,000,000 aggregate
(ii). Automobile $1,000,000 each accident; $1,000,000 uninsured motorist
(iii). Workers Compensation $1,000, 000 each accident/$1,000,000 each employee for disease.
(iv). Excess Liability/Umbrella Form $2,000,000.
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8 B. An Additional Insured Endorsement is required for the General Liability Insurance policy naming the City, its officers, employees, and agents as additional insured on the policy.
C. The policies shall provide for a 30 day notice to the City prior to termination, cancellation, or change.
D. The general liability and excess liability/umbrella policies must be endorsed to provide that each policy shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained by or available to the City or its officials, employees, and agents.
E. The Workers Compensation policy shall contain the insurer's waiver of subrogation (or waiver of right of recovery) in favor of City, its elected officials, officers, employees, and agents.
F. If, in the City's opinion, the minimum limits of the insurance herein required have become inadequate during the period of this Lease, the Concessionaire shall increase such minimum limits by reasonable amounts on request of the City provided that said coverage is available at standard commercial rates.
6.2 Indemnification. To the fullest extent permitted by law, Lessee shall, at Lessee's sole expense and with counsel reasonably acceptable to City, defend, indemnify, and hold harmless City and City's officers, officials, employees and agents from and against all claims, (including demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including consultant and expert fees, costs of investigation, court costs and attorney’s fees) from any cause, arising out of or relating (directly or indirectly) to this Lease, the tenancy created under this Lease, or the Demised Premises, including without limitation:
A. The use or occupancy, or manner of use or occupancy, of the Demised Premises;
B. Any act, error or omission, or negligence of Lessee or of any subtenant, invitee, guest, contractor or licensee or Lessee or any subtenant in, on, or about the Demised Premises;
C. Lessee’s conducting or managing of its business;
D. Any alterations, activities, work, or things done, omitted, permitted, allowed, or suffered by Lessee in, at, or about the Demised Premises , including the violation of or failure to comply with any insurance requirements or any applicable laws, statues, ordinances, standards, rules, regulations, orders, decrees, or judgments in existence on the Commencement Date or enacted, promulgated, or issued after the date of this Lease, and;
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9 E. Any breach or default in performance of any obligation on Lessee’s part to be performed under this Lease, whether before or during the term of this Lease or after its expiration or earliest termination.
6.3 This indemnification extends to and includes, without limitation, claims for:
A. Injury to any persons (including death at any time resulting from that injury);
B. Loss of, injury or damage to, or destruction of property (including loss of use at any time resulting from that loss, injury, damage, or destruction); and
C. All economic losses and consequential or resulting damage of any kind.
6.4 Lessee’s indemnification obligation hereunder shall survive the expiration or earlier termination of this Lease until all claims against City involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statutes of limitations.
7.0 ABANDONMENT AND SURRENDER
7.1 Abandonment. Lessee shall not vacate or abandon the Premises at any time during the term of this Lease. If Lessee shall abandon, vacate or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee and left on the Premises shall be deemed to be abandoned, at the option of Lessor, except such property as may be mortgaged to Lessor.
7.2 Surrender of Lease. The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or sub-tenancies, or may, at the option of Lessor, operate as an assignment to it of any or all of such subleases or sub- tenancies. In the event that Lessor fails to return the Premises in good condition, Lessor may perform any work necessary to correct deficiencies, and Lessee shall pay the cost of the work plus an administrative fee component of not more than 15 percent.
8.0 DAMAGE AND DESTRUCTION OF PREMISES. In the event of (a) partial or total destruction of the Premises during the term of this Lease which requires repairs to the Premises, or (b) the Premises being declared unsafe or unfit for occupancy by any authorized public authority for any reason ot her than Lessee's act, use or occupation, which declaration requires repairs to the Premises, Lessor shall forthwith make said repairs provided Lessee gives to Lessor thirty (30) days written notice of the necessity therefor. No such partial destruction (including any destruction necessary in order to make repairs required by any declaration made by any public authority) shall in any way annul or void this Lease except that Lessee shall be entitled to a proportionate reduction of
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10 Monthly Rental while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by Lessee in the Premises. However, if during the last two (2) years of the term of this Lease the Premises are damaged as a result of fire or any other insured casualty to an extent in excess of twenty five percent (25%) of the then replacement cost (excluding foundations), Lessor may within thirty (30) days following the date such damage occurs, terminate this Lease by written notice to Lessee. If Lessor, however, elects to make said repai rs, and provided Lessor uses due diligence in making said repairs, this Lease shall continue in full force and effect, and the Monthly Rental shall be proportionately reduced while such repairs are being made as hereinabove provided.
Nothing in the foregoing to the contrary withstanding, if the Premises or said building is damaged or destroyed at any time during the term hereof to an extent of more than twenty-five percent (25%) of the then replacement cost (excluding foundations) as a result of a casualty not insured against, Lessor may within thirty (30) days following the date of such destruction terminate this Lease upon written notice to Lessee. If Lessor does not elect to terminate because of said uninsured casualty, Lessor shall promptly rebuild and repair the Premises and/or the building and the Monthly Rental shall be proportionately reduced while such repairs are being made as hereinabove provided. If Lessor elects to terminate this Lease, all rentals shall be prorated between Lessor and Lessee as of the date of such destruction. In respect to any partial or total destruction (including any destruction necessary in order to make repairs required by any such declaration of any authorized public authority) which Lessor is obligated to repair or may elect to repair under the terms of this Section, Lessee waives any statutory right it may have to cancel this Lease as a result of such destruction.
9.0 SUBLETTING. For the purposes of this lease, subletting shall not be allowed.
10.0 DEFAULT
10.1 Default by Lessee. The occurrence of any one (1) or more of the following events shall constitute a default and breach of this Lease by Lessee: (a) the failure to pay any rental or other payment required hereunder to or on behalf of Lessor more than three (3) days after written notice from Lessor to Lessee that Lessee has failed to pay rent when due; (b) the failure to perform any of Lessee's agreements or obligations hereunder (exclusive of a default in the payment of money) where such default shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee which notice shall be deemed to be the statutory notice so long as such notice complies with statutory requirements; (c) the vacation or abandonment of the Premises by Lessee; (d) the making by Lessee of a general assignment for the benefit of creditors; (e) the filing by Lessee of a voluntary petition in bankruptcy or the adjudication of Lessee bankruptcy; (f) the appointment of a receiver to take possession of all or substantially all the assets of Lessee located at the Premises or of Lessee's leasehold interest in the Premises; (g) the filing by any creditor of Lessee of an involuntary petition in bankruptcy which is not dismissed within sixty (60) days after filing; or (h) the attachment, execution or other judicial seizure of all or substantially all of the assets of Lessee or Lessee's leasehold where such an attachment, execution or seizure is not discharged within sixty (60) days.
Any repetitive failure by Lessee to perform its agreements and obligations hereunder,
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11 though intermittently cured, shall be deemed an incurable default. Two (2) breaches of the same covenant within a sixty (60) day period, a notice having been given pursuant to (a) or (b) above for the first breach, or three (3) of the same or different breaches at any time during the term of this Lease for which notices pursuant to (a) or (b) above were given for the first two (2) breaches shall conclusively be deemed to be an incurable repetitive failure by Lessee to perform its obligations hereunder.
In the event of any such default or breach by Lessee, Lessor may at any time thereafter, without further notice or demand, rectify or cure such default, and any sums expended by Lessor for such purposes shall be paid by Lessee to Lessor upon demand and as additional rental hereunder, with an administrative fee component of not more than 15%. In the event of any such default or breach by Lessee, Lessor shall have the right (i) to continue the lease in full force and effect and enforce all of its rights and remedies under this Lease, including the right to recover the rental as it becomes due under this Lease, or (ii) Lessor shall have the right at any time thereafter to elect to terminate the Lease and Lessee's right to possession thereunder.
10.2 No Waiver. Acceptance of rental hereunder shall not be deemed a waiver of any default or a waiver of any of Lessor's remedies.
10.3 Lessor's Default. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Lessee in writing, specifying wherein Lessor has failed to perform such obligation; provided, however, that if the nature of Lessor's obligation is such that more than thirty (30) days are required for performance then Lessor shall not be deemed in default if Lessor commences performance within a thirty (30) day period and thereafter diligently prosecutes the same to completion. In no event shall Lessee have the right to terminate this Lease as a result of Lessor's default and Lessee's remedies shall be limited to damages and/or an injunction.
11.0 CONDEMNATION. In the event a condemnation or a transfer in lieu thereof results in a taking of any portion of the Premises, Lessor may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty-five percent (25%) or more of the Premises, Lessee may, upon written notice given within thirty (30) days after such taking or transfer in lieu thereof, terminate this Lease. Lessee shall not be entitled to share in any portion of the award and Lessee hereby expressly waives any right or claim to any part thereof. Lessee shall, however, have the right to claim and recover, only from the condemning authority (but not from Lessor), any amounts necessary to reimburse Lessee for the cost of removing stock and fixtures. If this Lease is not terminated as above provided, Lessor shall use a portion of the condemnation award to restore the Premises.
12.0 MISCELLANEOUS
12.1 Reservation of Right to Modify Property. Lessor hereby reserves the right (but not the obligation) to renovate, modernize, rehabilitate, expand, reduce,
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12 reconfigure, enclose and/or otherwise alter all or any portion of the Premises (collectively "Modifications"), in such manner and at such time or times, throughout the term of this Lease, as Lessor may, in its sole and absolute discretion, deem to be in the best interests of the Property. Such Modifications may include, without limitation, the right to construct new buildings on the Property for additional uses, to remove, renovate, repair, add to, modernize or otherwise alter the building in which the Premises are situated as well as other buildings, facilities, structures, malls, walkways, landscaping, parking and common areas or other areas within the Property. In connection with any and all such Modifications, Lessor may enter the Premises to the extent reasonably required by Lessor to pursue and complete such Modifications. In addition, Lessor may temporarily close portions of the parking and common areas and cause temporary obstructions in connection with any Modifications. Lessee agrees that under no circumstances shall the Modifications as to any portion of the Property or the construction activity that takes place in the course of making the Modifications, or any aspect thereof, including Lessor's entry into the Premises, constitute an eviction or partial eviction of Lessee or a breach of Lessee's right to quiet enjoyment or of any other provision of this Lease, nor entitle Lessee to damages, injunctive relief or other equitable relief, nor entitle Lessee to any abatement or reduction in the Monthly Rental, additional rental or other charges or sums due under this Lease; provided Lessor uses reasonable efforts to mitigate any adverse effects on Lessee caused by the Modifications.
12.2 Entry and Inspection. Lessor and its agents shall have the right to enter upon the Leased Premises during such times as may be reasonable under the circumstances for any purpose necessary, incidental to or connected with the performance of its obligations or in the exercise of its governmental functions relating to the public health, safety, good conduct, and the proper management of the Airport.
12.3 Estoppel Certificate. In the event of any proposed encumbrance, assignment, or other transfer of this Lease, Tenant shall submit its request to the City no less than 90 days in advance of the effective date of the proposed assignment in order for the City to make its determination If, as a result of a proposed sale, assignment, or hypothecation of the Premises or the land thereunder by Lessor, or at any other time, an estoppel certificate shall be requested of Lessee, Lessee agrees, within ten (10) days thereafter, to deliver such estoppel certificate addressed to any existing or proposed mortgagee or proposed purchaser, and to the Lessor. Lessee shall be liable for any loss or liability resulting from any incorrect info rmation certified, and such mortgagee and purchaser shall have the right to rely on such estoppel certificate and financial statement.
12.4 Jurisdiction and Venue. The parties hereto agree that the State of California is the proper jurisdiction for litigation of any matters relating to this Lease, and service mailed to the address of Lessees set forth herein shall be adequate service for such litigation. The parties further agree that Riverside County, California is the proper place for venue as to any such litigation and Lessee agrees to submit to the personal jurisdiction of such court in the event of such litigation.
12.5 Partial Invalidity. If any term, covenant, condition or provision of this
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13 Lease is held to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereof.
12.6 Successors in Interest. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder.
12.7 No Oral Agreements. This (i) Lease covers in full each and every agreement of every kind or nature whatsoever between the parties hereto concerning this Lease, (ii) supersedes any and all previous obligations, agreements and understandings, if any, between the parties, oral or written, and (iii) merges all preliminary negotiations and agreements of whatsoever kind or nature herein. Lessee acknowledges that no representations or warranties of any kind or nature not specifically set forth herein have been made by Lessor or its agents or representatives.
12.8 Authority. In the event that Lessee is a corporation or a partnership, each individual executing this Lease on behalf of said corporation or said partnership, as the case may be, represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation or partnership, in accordance with a duly adopted resolution of the Board of Directors, if a corporation, or in accordance with the Partnership Agreement, if a partnership, and that this Lease is binding upon said corporation or partnership in accordance with its terms. Lessee represents and warrants to Lessor that the entering into this Lease does not violate any provisions of any other agreement to which Lessee is bound.
12.9 Relationship of Parties. The relationship of the parties hereto is that of Lessor and Lessee, and it is expressly understood and agreed that Lessor does not in any way or for any purpose become a partner of Lessee in the conduct of Lessee's business or otherwise, or a joint venture with Lessee, and that the provisions of this Lease and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method whereby rental payments are to be measured and ascertained.
12.10 Nondiscrimination. Lessee for itself, personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Demised Premises that: (1) no person, because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”) shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (2) it shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis; (3) as a condition precedent to City’s lawful capacity to enter this Lease, and in executing this Lease, Lessee certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any
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14 Lessee activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that, to the extent applicable to Lessee, it is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting; (4) in the construction of any improvements on, over, or under such Premises and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (5) it shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, including applicable Regulations that may be amended and are hereby incorporated and attached as Exhibit “C” & “D”,
12.11 Notices. Wherever in this Lease it shall be required or permitted that notice and demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served in writing and shall not be deemed to have been duly given or served unless in writing, and personally served or forwarded by certified mail, postage prepaid, addressed, if to Lessor, as specified in Section 1.9. Either party may change the address set forth herein by written notice by certified mail to the other. Any notice or demand given by certified mail shall be effective one (1) day subsequent to mailing.
To City: Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite OFC
Palm Springs, CA 92262
To Tenant: West Aviation Services – San Diego, Inc.
dba Sierra Aviation Group
2500 E. Airport Drive, Suite 1312
Ontario, CA 91761
12.12 Waiver. No delay or omission in the exercise of any right or remedy by a non-defaulting party shall impair such right or remedy or be construed as a waiver.
A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Lease.
12.13 Exhibits and Addenda. The Exhibits and Addenda attached to this Lease are made a part hereof as if fully set forth herein. In the event of a conflict between the terms and provisions of Addenda and the terms and provisions of this Lease, the terms and provisions of the Addenda shall prevail.
Item 1P - Page 18
15 SIGNATURE PAGE TO FOLLOW
Item 1P - Page 19
16 SIGNATURE PAGE FOR LEASE AGREEMENT No. 25L133 BETWEEN THE CITY OF PALM SPRINGS AND WEST AVIATION SERVICES – SAN DIEGO INC DBA SIERRA
AVIATION GROUP
IN WITNESS WHEREOF, the Parties have entered into this Non-Exclusive Operating and Lease Agreement as of the day and year first above written.
CITY OF PALM SPRINGS
Approved By:
Scott Stiles
City Manager
Date
Attested By:
City Clerk
Approved as to Form:
City Attorney
WEST AVIATION SERVICES – SAN
DIEGO INC DBA SIERRA AVIATION
GROUP
Signature
Name
Title
Signature
Name
Title
Corporations require two notarized
signatures. One signature must be from
Chairman of Board, President, or any
Vice President. The second signature
must be from the Secretary, Assistant
Secretary, Treasurer, Assistant
Treasurer, or Chief Financial Officer.
Item 1P - Page 20
r-::: DocuSigned by:
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17
Item 1P - Page 21
1CALIFORN IA AU., PIURPO!SE ACKNOWLEDGMENT CIVIL. CODE f 11 e.9 A not•rv public« olli..- offl«• eomp:ldlng llils cenllleatt! .,.,,ffl'e , on'lythie lilm llty orthie lndlvlliual wlio sl'p,ed lhe dtxumeiit ID ..tilcf\ t l'lls attllita te rs .. a11m1ec1, aiid not tbe trullifu lnes. ,aoetncy ; or nldlly ol" lliat i11X1Umi!M.
State of Callfmn!a
County or ___________ _
On __________ before me, ______________________ _
,Dare Here· rnsen Name ood Tftle oftlte Off/€er
ll>er-sona ap peared ______________________________ _
Name(sJ of SJgnttfsJ
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WifTNESS. my 11.!nd and ,officia l se:a'L
S SJ13ture _______________ _
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Ind i,lldual Attorney F.act Ind illtd' al Attomeyfn F.act Trustee GuaJ"d!an ,or Conse l'\lillt« Trustee Guar dian ,or Conse l'\lillt« Othe r ______________ _ Other ______________ _
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SIERRA AVIATION
345 SQ. FT. – NORTH TICKET WING
Item 1P - Page 22
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19 EXHIBIT “B”
ESTOPPEL CERTIFICATE
Lessee:
Lessor:
Date of Lease:
Demised Premises:
To: _______________________________
_______________________________
_______________________________
The undersigned hereby certifies as follows:
1. The undersigned is the Lessee ("Lessee") under the above-referenced lease ("Lease") covering the above-referenced premises ("Demised Premises").
2. The Lease constitutes the entire agreement between Lessor and Lessee with respect to the Demised Premises and the Lease has not been modified, changed, altered or amended in any respect except as set forth above.
3. The term of the Lease commenced on ________, 20_____ and, including any presently exercised option or renewal term, will expire on _________, 20_____. Lessee is in possession of the Demised Premises and is the actual occupant in possession thereof and has not sublet, assigned or hypothecated its leasehold interest. All improvements to be constructed on the Demised Premises by Lessee have been completed and accepted by Lessor and any Lessee construction allowances have been paid in full.
4. As of this date, to the best of Lessee's knowledge, there exists no breach or default, nor state of facts which, with notice, the passage of time, or both, would result in a breach or default on the part of either Lessee or Lessor. To the best of Lessee's knowledge, no claim, controversy, dispute, quarrel or disagreement exists between Lessee and Lessor.
5. Lessee is currently obligated to pay Monthly Rent in installments of $________ per month, and such monthly installments have been paid not more than one month in advance. To the best of Les see's knowledge, no other rent has been paid in advance and Lessee has no claim or defense against Lessor under the Lease and is asserting no offsets or credits against either the rent or Lessor. Lessee has no claim against Lessor for any security or other deposits except $ which was paid pursuant to the Lease.
6. Lessee has no option or preferential right to lease or occupy additional space within the Property of which the Demised Premises are a part. Lessee has no option or preferential right to purchase all of any part of the Demised Premises nor
Item 1P - Page 23
20 any right or interest with respect to the Demised Premises other than as Lessee under the Lease. Lessee has no right to renew or extend the term of the Lease except as set forth in the Lease.
7. Lessee has made no agreements with Lessor or its agent or employees concerning free rent, partial rent, rebate of rental payments or any other type of rent or other concession except as expressly set forth in the Lease.
8. There has not been filed by or against Lessee a petition in bankruptcy, voluntary or otherwise, any assignment for the benefit of creditors, any petition seeking reorganization or arrangement under the bankruptcy laws of the United States, or any state thereof, or any other action brought under said bankruptcy laws with respect to Lessee.
9. All insurance which Lessee is required to maintain under the Lease has been obtained by Lessee and is in full force and effect and all premiums with respect thereto have been paid.
Dated this day of , 20_____.
B y :
I t s :
Item 1P - Page 24
21 EXHIBIT “C”
Item 1P - Page 25
081'27/B
APPENDIXA
1400..11
Appendix-4
During the perfor.m.anoe ofthls contract, the ,contrac..tor, for itself, ils assignees, and suocessors in. interest ,(hereiinafte:r refened to, as the '""contractor) agrees as fol!lmi.rs:
l Compti.,, ce with Regulations : The contractor (b.ereinafle:r includes ,consultants) will comp]y with the Acts and the Regulations reJatii.<e to N~on in F,ederally-assistedl programs of the U.S. De.pai:tment of Irarn;,portation, Federal Amtion Ad'minm:ra.tion, as they u:iay be amendedl from time to time, whic-h are herein inoo:npcm1tedl by reference ,m.d made a part o.fthls contract.
2. Non-discrimination: The ,contrac..tor, with regard to the work performed by it during the contrac..t, will notictiscri.m:inate ,on the groun~ ofrace ., color, ,or national. origin in the seJJ.ec.tion and retention of subcontrac.tol!S, including proruremems ,of materials and leases of equipment.
The oonm.cto r will mot participate directly m indiredly m fli.e dtis:crimmaition prohibited by the Ac.ts. and the Re.gulatiOiliS., mciludli!llg anp oym.ent pn.ctias when the contract co,1;,ecs :my activity project, or program set forth io. Appendix B of 49 CFR. part 11.
3. Soliota ,ti.ons fo1· SubroDJtraru. fu dudmg fcll'OCurements of Materials and Eqmpmf:Dt:, In .al] soli.citati.on.s, eiiheJ by competi.tnte bidding, or negotia.tion made iby the contractor for wori to be perlonned undec a subcontract, includingproouremmts ,ofmataiah, 0 1 leases ofeqllpment, each potenti.a] subcontractoI or soppll'er will be notified by the conbac..tor of the contractor' s:
obligations under this contract and fue Acts and the Regolatiom rel.alive to Non-discriminati.0I11 on the gr,ounds ofmce . color. or national ,origin.
4. Information and Repol'fs: The contractor will J>Rl"'file all m:fmmation and reports Iequired iby the Acts, fli.e Reg)ilalions, .and directives issued [PUISWllt thereto and will permit access, to irts books, records, acommts, other sources of m:fomiation, and its facilities, as, .may be detenmned by the Recipient ,or the Ft>dernl Aiiation Admimsu:.a.tion to be pertinent to asrertam compliance with such Act&, Regnlations , and i.nstru.rtiiol!liS-. Where any infonnal:ionrequiiedof11 contractor is .in the exclusii;•e possession of another who fails or refuses to furnish. the in.formation, the contrilctor will so certify to 1he Recip:ient or the Fedel'al A.nation Administratio n, as appropriate, and will set foi:tb. what efforts it has made to ,obtain the mformati.on.
5. Saneti.om for oDJromp6anee: In the event ,of a contractor's .nolIDOmp~ 1,i,r1th the Non disaimmati.0I11 provisions ofthis conbact, the Iurip.ientwill impose such contract sandions as it or the Feder.aL\,iafion Administration may detemline to be appFopriate., in.duding, bnhrot limited to:
51 22
Item 1P - Page 26
08127113 1400.111
Appmdix4
a. withholding paymads to the roalracto:r mider the contnct until the ,contractor oompl.ies; andlor
b. cancelling, teim.imting; or simpendmg .a contract, in whole o:r in put
6. Ineot-po1-ation of PrMuions :, The oonnactor will. mdude the piovisions of pangra,ph& ome through six.in every mbcontract, including ()IootmemeD.ts ofmaterials :mdleases of equipment, miless exempt by the .Acts, the Reguialiom, and directi,;;•es issued pUISDmt thereto. The oonlractor will take acti.on with respect to, any subcontract or~ as the Recipient or the FederaJ Aisianon Adminmh'ati:on may direc.t as a means ofenfo:rcing sm::.h pro-visions irndudlmgsancti.ons. fu1 nonc;omplianoe. Provided, that if the contractor becomes in,'Oiverl in, or is threatened with tit:ig;ni.on by a subcontractor, ,or irup;poo because of such dlireclion., the c.onbactolf may request the Reci.piem: to enter into any Ii.tiga.tion to protect the interests of the Recipient. fu. addition, the oontrac.tor m.ary Iequest the United States to eote:r mto, the litigation to protect the mteres~ of the United States. 52 23
EXHIBIT “D”
Item 1P - Page 27
08(27113
APPENDIX iE
1400.11
Appendix4
During the perfomwire ,ofttris oontiact, the contractor, for its:ellf, its assignees, .md successors m interest ,(_hereinajler refenerl to .as the "connacto:rj agrees to comply mth the fol!lowmg non- ms:crimmation sta.tutes and all'thorities; inclu.ding hut not l.iimited to:
Pertinent Non-Dis1:1imination • .\J thoritie.s:
·• Title VI oftb.e Cn.':il. Righls Act of 1964-(41 U.S .C. § 1-000d ei seq., 78 stat 252), (prolnnits disaimimtion on the b&<!i.s ofraoe, oo]or, national. origin)~ and 49 CFR part 1 l • The Unifunn Relocation. Assistance and Real PJ:;operty Acquisition Potici.es Act of 1910, (42 U.S.C. § 4601), (prohib its unfair treatment ofpeISOiliS dispfac~ or whose prope:rty has been acquired. bec-ai.me of F edew or FedeI.al-aid prognum and tpiojects); • Secti.on 504 of the Rehabilitation Act of 1973, (29 U.S,C. § 794 .et s:eq.), as amended, (p:romm.ts discrimimlii.on on the b!llSi.s of disahili.ty); and 49 CFR. part 27; • The Age Discrimination AcJ: ofl97j . ~ am.ended, {42 U.:S.C. § 6101 ei seq.), (p:rohib:i.ts d!isaimination ,on the basis of age);
• Allport and.Auway Imp:rovement Act ofl982 , (49 USC§ 471, Secti.on 47123), as amended, (prohib its d!is:crimirnation based on race, Cieed, oofor, national origin, ,or sex); • The Civil Rights Restontion Act of 1987, (PL W0-209),, (Broadened 1he SCQP!l, c.overa~ andapplicabilityofTi.fle VI oftheCi\riJ Rights Act of"1964, The Age Discrim:ina.ti.o.nAct of1975 and Section 504 of the Rehabilitation Act ,of1973 , by expanding the defurifioa of the te:nns "programs or activities" to iin.cllude ii!ll ,ofthe programs o:r activities offue Feder.d-ai.d recipients, suh-recipien1s md contiactors, whefll.e:r snob p:rog:rams ,or .activities are Fede:rally funded or not)~
• Iilles TI md ill of the Americans with Disabilities Act, which prohibit discrimination on the b!llSiS o.f disability in the ,operation of public. entities, public .and private transportation systems, pfa.res of public acoom:modati.on, and certain testing entities (41 U.S.C. §§ 11131 - 111:&9) as impl.emented by Deputment of'Innsportation regulations at 49 CFR parts 37 and 38;
• The Fede:r.al Aviati.onAcbwrristration' s Noa-discrimmati.0D1 statute (49 U.S.C. § 47123) (prommts di.scriminati.on on. the b!llSi.s ofrace, oo]or, national. origin, and sex); • EEeoutii;re Orde:r 12&9&, Fedem Actions to Ad~ess Environmen:la] Justice in Mm.ority Popul.ati.oiliS and Low-In(jome Populations, wh:ich ensmes ~on against minority populations iby d:iooomagmg programs, policies, and acfu'tties Mih wsproporti:onately high .md adveise lmman health or emri:ronmad:al effects on minori.t}• and Jow-income populations;
ATTACHMENT B
PUBLIC INTEGRITY DISCLOSURE
Item 1P - Page 28
Item 1P - Page 29
1. 2.
3. 4.
5. PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
-
Name of Entity
W-ls-r J\01-\l••""'' 8uv1v,t,,;\ Of.J.f\ ·S ii:::..--v-A f!ivi'•,1-,-...,,. bvv1.1r;:J Address of Entity (Principal Place of Business)
'11, '2--·) A"c~ ibl~~ A,rt
Local or California Address (if different than #2)
'2-P ,vz., ij-0 C vvA ~cl"' ~) ""' 1 Cf\ q 1q30
State where Entity is Registered with Secretary of State If other than California, is the Entity also registered in California? D Yes D No Type of Entity
~ Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)
6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
\\-Ge A .A_BVvf\'11'\
i D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
'4)other (J_ vhtc;YL
~p..r' 0 Al-/J<f3 0 f' ( ).i D Officer ~ Director D Member D Manager [name] D General Partner D Limited Partner
D Other
D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
Other
I
Item 1P - Page 30
7. Own ers/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPL E
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity)
A
11~6-A f' 13 Lll..--f\'ZJV} I oo it l wisr tJ. vi·,.t•""" <l~~ [name of owner/investor] [percentage of beneficial interest in entity and name of entity]
8. [name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in ent ity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in ent ity and name of entity]
E.
[name of owner/investo r] [percentage of beneficia l i nterest in entity and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
of Disclosing Party, Printed Name, Title Date
~/-::,I ~ oi-s-
-
Item 1P - Page 31
I
...
City of Palm Springs, CA.
Business Disclosure Supplementary Instructions
In an effo~ to en~ure we capture the required business entity information in accordance with the atta~hed. instruct~ons, we provide you these supplementary instructions to clearly identify the required information , and the format the information should be provided.
If you, as the applicant , are a business entity (i.e. a corporation or limited liability company), and it is also comprised of other business entities as its members or having a financial interest, all other such business entities must also be disclosed, including those entities other business entities, if any.
Ultimately, the City's disclosure document (attached) requires a listing identifying all natura l persons having any financial interest over 5% of the business entities (and any other business entities comprising your business entity).
As an example, Applicant is: Acme Brothers, Inc., a California corporation , whose officers are:
John Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brothers , LLC, a Californ ia limited liability company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is managed by Acme Brothers 2, Inc., a California corporation , whose officers are: George Doe, Bill Doe, and Jane Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company, which is managed by George Doe, with George Doe and Jane Doe having 50% interest each.
The full business entity disclosure in this example would resemble the following:
1. Acme Brothers, Inc., a California corporation
a. Officers: John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe
2. Acme Brothers, LLC, a California limited liability company a. Managers: Acme Brothers 2, Inc., a California corporation b. Ownership: 100% Acme Brothers 2, Inc., a California corporation
3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company
4. Acme Brothers 2, LLC, a California limited liability company a. Managers: George Doe
b. Ownership:
i. 50%
CITY COUNCIL STAFF REPORT
06/11/2025
SUBJECT:
ADOPT A RESOLUTION IDENTIFYING THE PROJECTS TO BE FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, FOR FISCAL YEAR 2025-26
RECOMMENDATION:
Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.”
Attachments
Item 1Q
CITY COUNCIL STAFF REPORT
DATE: JUNE 11, 2025 CONSENT CALENDAR
SUBJECT: ADOPT A RESOLUTION IDENTIFYING THE PROJECTS TO BE FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, FOR FISCAL YEAR 2025-26.
FROM: Scott C. Stiles
BY: Engineering Services Department
SUMMARY:
Adoption of this resolution will allow the City of Palm Springs to identify a specific project or projects that will be designated as recipients of Senate Bill 1 (SB 1) funding, identified as “The Road Repair and Accountability Act of 2017.” Staff has updated the Capital Improvement Program to include SB1-RMRA funds to be budgeted for the Traffic Signal Fiber I mprovements Project (“Project”). The Project will install approximately 10,750 linear feet of new underground conduit and fiber optic cable along Farrell Drive, El Cielo Road, and Baristo Road to enhance traffic signal communications. In addition, the Project will upgrade traffic signal infrastructure as necessary and reconfigure traffic equipment to ensure integration with the City’s fiber communications system, improving reliability, operational efficiency, and roadway safety.
RECOMMENDATION:
Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 202 5-26 FUNDED BY SENATE BILL 1 (SB 1) , THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.”
BACKGROUND:
On April 28, 2017, the Governor signed Senate Bill 1 (SB 1) (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system, SB 1 increases the per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.
Beginning November 1, 2017, the State Controller deposited various portions of this new funding into the newly created RMRA (Road Maintenance and Rehabilitation Account).
Item 1Q - Page 1
City Council Staff Report
June 11, 2025 -- Page 2
Adopt a Resolution Identifying Project(s) for SB1 RMRA Funds
A percentage of this new RMRA funding is apportioned by formula to eligible cities and counties pursuant to the Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets an d roads systems.
It is important to note that all new revenues received through the increased gas tax must be dedicated to capital improvement projects and cannot be used for personnel or other administrative costs.
STAFF ANALYSIS:
Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements for the program are codified in SHC Sections 2034, 2036, 2037, and 2038; several of the key requirements are listed below:
• Submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be included in a city or county budget that is adopted by the applicable city council or county board of supervisors at a regular public meeting [SHC 2034(a)(1)]. • The list of projects must include the description and location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement [SHC 2034(a)(1)].
• For each fiscal year in which RMRA funds are received and expended, cities and counties must submit documentation to the Commission that includes the description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement [SHC 2034(b)].
Staff recommends adopting this resolution, Attachment A, identifying the Traffic Signal Fiber Improvements Project as an eligible project to receive RMRA funding by Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, for Fiscal Year 2025-2026.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to amend the Fiscal Year 202 5-2026 budget, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include:
(5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
Item 1Q - Page 2
City Council Staff Report
June 11, 2025 -- Page 3
Adopt a Resolution Identifying Project(s) for SB1 RMRA Funds
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council Broad Goal of Infrastructure and Facilities.
FISCAL IMPACT:
Following City Council approval, the Capital Improvement Budget will be updated, reflecting this projected revenue for RMRA Gas Tax Funds of $1,196,247 for Fiscal Year 2025-2026, allowing the City to provide the CTC with the project to be funded by Senate Bill 1 (SB 1) . The FY 25- 26 estimated revenue of $1, 196,247 will be used to fund the Traffic Signal Fiber Improvements Project.
REVIEWED BY:
City Engineer: Joel Montalvo
Director of Finance & Treasurer: Kristopher J. Mooney
Deputy City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Resolution
B. Location Map
Item 1Q - Page 3
Attachment A
Item 1Q - Page 4
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $1,196,247 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community's transportation priorities/the project list; and
WHEREAS, the City reviews safety concerns and uses a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment and safety; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets, roads, bridges, improve safety, add traffic control devices, and add active transportation infrastructure throughout the City this year and hundreds of similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in a "good" condition and this Item 1Q - Page 5
Resolution No. _____