City of Porterville
Bus Stop Signs
the Contract is exempt from the requirements herein, provided that Contractor identifies those data in writing at the time of delivery of the Contract work.
G. Contractor shall include these requirements in each subcontract for experimental, developmental, or research work financed in whole or in part with Federal assistance.
38. COMPLIANCE WITH NATIONAL ITS ARCHITECTURE POLICY
[These requirements apply only to contracts for National Intelligent Transportation System projects.]
Contractor shall conform to the National Intelligent Transportation Systems (ITS) Architecture requirements of 23 U.S.C. § 517(d), unless it obtains an exemption from those requirements, and follow FTA Notice, “FTA National ITS Architecture Policy on Transit Projects,” 66 Fed.
Reg. 1455, January 8, 2001, and all other applicable federal guidance.
39. NTD REPORTING
As a condition of benefitting from federal assistance for public transportation operations, Contractor and its subcontractors must: (A) facilitate compliance with 49 U.S.C. § 5335(a), which authorizes the National Transit Database (NTD); (B) conform to the NTD reporting system and the Uniform System of Accounts and Records; (C) comply with FTA regulations, “Uniform System of Accounts and Records and Reporting System,” 49 CFR Part 630; (D) report when required to the National Transit Database in accordance with FTA regulation 49 CFR Part 630, “National Transit Database,” and applicable FTA instructions: (1) any information relating to a transit asset inventory or condition assessment; (2) any data on assaults on transit workers; (3) any data on fatalities that result from an impact with a bus; and (4) such other information as FTA may require; (E) comply with any other applicable reporting regulations, and requirements; and (F) follow FTA guidance.
40. TRAFFICKING IN PERSONS
Contractor and its subcontractors or their employees shall not: (A) engage in severe forms of trafficking in persons during the Contract Term; (B) procure a commercial sex act during the Contract Term; or (C) use forced labor in the performance of the Contract. Contractor shall inform AGENCY immediately of any information Contractor receives from any source alleging a violation of a prohibition in this section. AGENCY may terminate this Contract for any violation of this section; such right of termination is in addition to all other remedies for noncompliance that are available to the AGENCY.
41. PRIVACY ACT
Contractor agrees to: (A) comply with, and assures the compliance of its employees with, the information restrictions and other applicable requirements of the Privacy Act of 1974, 5 U.S.C.
City of Porterville
Bus Stop Signs
§ 552a. Among other things, Contractor agrees to obtain the express consent of the Federal Government before Contractor or its employees operate a system of records on behalf of the Federal Government. Contractor understands that the requirements of the Privacy Act, including the civil and criminal penalties for violation of that Act, apply to those individuals involved, and that failure to comply with the terms of the Privacy Act may result in termination of the underlying contract; and (B) include these requirements in each subcontract to administer any system of records on behalf of the Federal Government financed in whole or in part with Federal assistance provided by FTA.
42. SECTION 508 COMPLIANCE
Any reports or information that will be provided to DOT or any other Federal agency must comply with Section 508 of the Rehabilitation Act of 1973.
43. DBE REQUIREMENTS
The City and its partners strive to advance the economic growth of small businesses through its Disadvantaged Business Enterprise (DBE) Program.
The City of Porterville DBE Program is managed and administered by the City’s Transportation Department. Through a coordinated effort among several city departments and partner agencies, the DBE Program provides certification and opportunities in construction, purchasing, management and technical assistance, educational services, and networking.
A. General Requirements
1. Applicable Federal Regulations. This Contract is subject to DBE requirements issued by USDOT in 49 CFR Part 26. Despite the lack of a race- and gender-conscious DBE participation goal for this Contract, the Agency must track and report DBE participation that occurs as a result of any procurement, Joint Venture, goods/services, or other arrangement involving a DBE. For this reason, the Successful Submitter shall provide all relevant information to enable the required reporting.
2. DBE Participation. For this solicitation, the Agency has not established a race- or gender-conscious DBE participation goal. The Agency extends to each individual, firm, vendor, supplier, contractor, and subcontractor an equal economic opportunity to compete for business. The Agency uses race- and gender-neutral measures to facilitate participation by DBEs and Small Businesses. The Agency encourages each Submitter to voluntarily subcontract with DBEs and Small Businesses to perform part of the work—a Commercially Useful Function—that Submitter might otherwise perform with its own forces.
City of Porterville
Bus Stop Signs
3. Small Business Participation. The Agency will track the participation of all approved businesses throughout the life of this contract. The Agency will count Small Business participation as authorized by federal regulations. A summary of these regulations can be found at www.ecfr.gov (49 CFR Part 26.39).
4. DBE Certification. Only firms (1) certified by the Agency or another CAUCP member, and (2) contracted to perform a Commercially Useful Function on scopes of work for which they are certified, may be considered to determine DBE participation resulting from race- and gender-neutral (RGN) measures on this Contract. This DBE determination affects the Agency’s tracking and reporting obligations to USDOT.
5. Civil Rights Assurances. As a recipient of USDOT funding, the Agency has agreed to abide by the assurances found in 49 CFR Parts 21 and 26. Each Contract signed by the Agency and the Successful Submitter, and each Subcontract signed by the Successful Submitter and a Subcontractor, must include the following assurance verbatim:
“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 USDOT-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 City of Porterville 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.”
Note: For purposes of the required Contract and Subcontract language above, Successful Submitter is the “contractor” awarded the contract.
6. Subcontracts. If subcontracts will be let under this Contract, Contractor shall take the affirmative steps listed in 2 C.F.R. 200.321, which addresses contracting with small and minority businesses, women’s business enterprises, and labor surplus area firms.
City of Porterville
Bus Stop Signs
Exhibit A – Required Forms
Form A
ADDENDUM RECEIPT
The Proposer acknowledges it has received and read the following Addenda:
Addendum # ________________________ Signature ___________________________ Addendum # ________________________ Signature ___________________________ Addendum # ________________________ Signature ___________________________ Addendum # ________________________ Signature ___________________________ Addendum # ________________________ Signature ___________________________ Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form B
DEBARMENT AND SUSPENSION CERTIFICATION
This certification does not apply to contracts and subcontracts under $25,000. Offers that do not include this completed certification, if applicable, will be rejected as nonresponsive.
Check one box below (and provide explanation if necessary):
□ The Proposer certifies that the Proposer and its principals:
1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily or involuntarily excluded from covered transactions by any federal department or agency;
2. Have not, within the preceding three years, 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 or private agreement or transaction; violation of federal or state antitrust statutes, including those proscribing price fixing between competitors, allocation of customers between competitors, and bid rigging; commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; or commission of any other offense indicating a lack of business integrity or business honesty;
3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any offense described in Paragraph 2 of this certification;
4. Have not, within the preceding three years, had one or more public transactions (federal, state, or local) terminated for cause or default.
- OR –
□ The Proposer is unable to certify to all of the statements in this certification, and attaches its explanation to this certification. (In the explanation, the Proposer must certify to those statements that can be certified and explain why the other statements cannot be certified.)
The Proposer shall require that the language of this certification be included in the contract documents for all subcontractors and material suppliers at all tiers, and that all subcontractors and material suppliers shall certify and disclose accordingly.
The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form C
BUY AMERICA CERTIFICATION
This certification applies to contracts over $150,000 if they involve the purchase of iron, steel, manufactured goods, or rolling stock. Offers that do not include this completed certification, if applicable, will be rejected as nonresponsive.
If this Offer is valued in excess of $150,000 and involves the procurement of steel, iron, or manufactured products (as defined in 49 CFR §§ 661.3 and 661.5), the Proposer hereby certifies that it:
□ Will comply with the requirements of 49 U.S.C. § 5323(j)(1) and the applicable regulations in 49 CFR part 661;
OR
□ Cannot comply the requirements of 49 U.S.C. § 5323(j) (and 49 CFR part 661) but may qualify for an exception to the requirements pursuant to 49 U.S.C. § 5323(j)(2), as amended, and the applicable regulations in 49 CFR § 661.7.
If this Offer is valued in excess of $150,000 and involves the procurement of buses or other rolling stock (including associated equipment), the Proposer hereby certifies that it:
□ Will comply with the requirements of 49 U.S.C. § 5323(j) and the applicable regulations of 49 CFR § 661.11;
OR
□ Cannot comply with the requirements of 49 § U.S.C. 5323(j) (and 49 CFR § 661.11), but may qualify for an exception to the requirements consistent with 49 U.S.C. § 5323(j)(2)(C), as amended, and the applicable regulations in 49 CFR § 661.7.
The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form D
NON-COLLUSION AFFIDAVIT FOR PROPOSER
STATE OF CALIFORNIA
COUNTY OF__________________
_________________________________________________________declares and says:
1. That he/she is the (owner, partner, representative, or agent) of , hereinafter referred to as
(CONTRACTOR) or (subcontractor).
2. That he/she is fully informed regarding the preparation and contents of this proposal for certain work in the City of Porterville, State of California.
3. That his/her proposal is genuine and is not collusive or a sham proposal.
4. That any of its officers, owners, agents, representatives, employees, or parties in interest, including this affiliate, has not in any way colluded, conspired, connived or agreed, directly or indirectly, with any other proposer, firm, or person to submit a collusive orsham proposal in connection with such contract or to refrain to submitting a proposal in connection with such contract, or has in any manner, directly or indirectly, sought by unlawful Contract or connivance with any other proposer, firm, or person to fix the price or prices in said proposal, or to secure through collusion, conspiracy, connivance, or unlawful Contract any advantage against the City of Porterville or any person interested in the proposed contract; and,
5. That the price or prices quoted in the proposal are fair and proper and are not tainted by any collusion, conspiracy, connivance, or unlawful Contract on the part of the proposer or any of its agents, owners, representatives, employees, or parties in interest, including this affiliate.
The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form E
CERTIFICATION OF RESTRICTIONS ON LOBBYING
This certification does not apply to contracts and subcontracts under $100,000. Offers that do not include this completed certification, if applicable, will be rejected as nonresponsive.
The Proposer certifies that:
1. No federal appropriated funds have been paid or will be paid, by or on behalf of the Proposer, to any person for influencing or attempting to influence an officer or employee of an 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.
2. 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 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 Proposer shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
3. The Proposer shall require that the language of this certification be included in the contract documents for all subcontractors and material suppliers at all tiers, and that all subcontractors and material suppliers shall certify and disclose accordingly.
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 section 1352, title 31, U.S. Code. 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.
The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form F
TAX LIABILITY CERTIFICATION
This certificate applies to all contracts. Offers that do not include this completed certification will be rejected as nonresponsive.
The Proposer certifies that:
1. It has no 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;
2. It has not been convicted of a felony criminal violation under any federal law within the preceding 24 months; and
3. It shall require that the language of this certification be included in the award documents for all subcontractors and material suppliers at all tiers, and that all subcontractors and material suppliers shall certify and disclose accordingly.
The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Form G
ACKNOWLEDGEMENT OF “BEST VALUE” SELECTION PROCESS
PROPOSER hereby acknowledges that the selection process under this RFP will evaluate Proposals on a “Best Value” basis, which the Federal Transit Administration’s (FTA) Best Practices Manual defines as follows:
“Best Value” is a selection process in which proposals contain both price and qualitative components, and award is based upon a combination of price and qualitative considerations.
Qualitative considerations may include technical design, technical approach, quality of proposed personnel, and/or management plan. The award selection is based upon consideration of a combination of technical and price factors to determine (or derive) the offer deemed most advantageous and of the greatest value to the procuring agency.
As a result, PROPOSER further acknowledges that pricing will not be the sole basis upon which Proposals are evaluated.
An individual authorized to bind the PROPOSER to this Agreement must sign below acknowledging and understanding of the foregoing.
Company: _________________________________________________________________ Name: ____________________________________________________________________ Title: _____________________________________________________________________ Signature: _________________________________________________________________ Date: _____________________________________________________________________
City of Porterville
Bus Stop Signs
Exhibit B – Sample General Services Agreement
CITY OF PORTERVILLE
GENERAL SERVICES AGREEMENT WITH
[insert full name of Contractor and Project Name and/or number] This General Services Agreement (Agreement) is entered into between the City of Porterville, a municipal corporation (City), and _______________________ [complete name of legal business entity], a __________________ [business status, such as a California corporation] (Contractor). City and Contractor are referred to individually as “Party” and collectively as “Parties.”
Recitals
A. City desires to retain Contractor to complete a Bus Shelter Project (Project); and B. On February 25, 2025, the City issued a Request for Proposals (RFP) for the Bus Shelter (Project). On XXXXXX, Contractor submitted its proposal for the Project to the City. City has determined that Contractor possesses the skills, experience and certification required to provide the goods and services.
C. After negotiations between the City and Contractor, the Parties have reached an agreement for the performance of services in accordance with the terms set forth in this Agreement.
D. This Agreement is being executed pursuant to Resolution No. ______-2024 approved by the Porterville City Council on ____________, 2024.
Now therefore, the Parties mutually agree as follows:
1. Scope of Work. Contractor shall provide the goods and services required to complete the Project, described in Exhibit “A” attached hereto and incorporated herein by reference. The goods and services shall be performed by, or under the direct supervision of, Contractor’s Authorized Representative: __________________. Contractor shall not replace its Authorized Representative, nor shall Contractor use or replace any subcontractor or subcontractor, without City’s prior written consent. The City may terminate this Agreement if Contractor makes any such change or replacement, or uses any unapproved subcontractor or subcontractor.
2. Time of Performance. Time is of the essence in the performance of services under this Agreement and the timing requirements set forth shall be strictly adhered to unless otherwise modified in writing in accordance with this Agreement. Contractor shall begin performance, and shall complete all required services no later than the dates set forth in Exhibit “A.” Any services for which times for performance are not specified in this Agreement shall be started and completed by Contractor in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the Contractor. Contractor shall submit all
City of Porterville
Bus Stop Signs
requests for time extensions to the City in writing no later than ten days after the start of the condition which purportedly caused the delay, and not later than the date on which performance is due. City shall grant or deny such requests at its sole discretion.
2.1. Term. The Term of this Agreement shall begin on _____________ and end on ___________, unless terminated in accordance with Section 6.
3. Compensation. City shall pay Contractor on a lump sum basis, at the billing rate set forth in Exhibit “C”, attached hereto and incorporated herein by this reference for goods and services performed under this Agreement.
3.1. Not to Exceed Amount. Contractor’s total compensation under this Agreement shall not exceed $_______________. Contractor’s billing rates shall cover all costs and expenses for Contractor’s performance of this Agreement. No work shall be performed by Contractor in excess of the total compensation amount provided in this section without the City’s prior written approval. Notwithstanding anything contained herein to the contrary, the payment of any funds under this Agreement shall be subject to the City of Porterville’s appropriation of funds for the Services. This Agreement shall terminate in the event that such funds are not appropriated.
3.2. Invoices. Contractor shall submit monthly invoice(s) to the City that describe the goods and services performed, including times, dates, and names of persons performing the services.
3.2.1. Contractor’s failure to submit invoice(s) in accordance with these requirements may result in the City rejecting said invoice(s) and thereby delaying payment to Contractor.
3.3. Payment. Subject to the City acceptance of the Services as discussed in Exhibit A attached hereto and completion of the Project to the City’s satisfaction, within 30 days after the City’s receipt of invoice(s), City shall make payment to the Contractor based upon the services described on the invoice(s).
3.4. The acceptance by Contractor of the final payment made under this Agreement shall constitute a release of City from all claims and liabilities for compensation to Contractor for anything completed, finished or relating to Contractor’s services. Contractor agrees that payment by City shall not constitute nor be deemed a release of the responsibility and liability of Contractor or its employees, subcontractors, agents and subcontractors for the accuracy and competency of the information provided and/or services performed hereunder, nor shall such payment be deemed to be an assumption of responsibility or liability by City for any defect or error in the Services performed by Contractor, its employees, subcontractors, agents and subcontractors.
3.5. Contractor agrees to maintain books, accounts, payroll records and other information relating to the performance of Contractor’s obligations under the Agreement, which shall adequately and correctly reflect the expenses incurred by the Contractor in the
City of Porterville
Bus Stop Signs
performance of Contractor’s work under the Agreement. Such books and records shall be open to inspection and audit by the City during regular business hours for three years after expiration or termination of this Agreement.
4. Indemnification. Contractor shall, to the fullest extent permitted by law, indemnify, defend (with independent counsel approved by the City), and hold harmless the City from and against any claims arising out of Contractor’s performance or failure to comply with obligations under this Agreement, except to the extent caused by the sole, active negligence or willful misconduct of the City.
In the event there is a finding and/or determination that Contractor is not an independent contractor and/or is an employee of City, including but not limited to any such finding and/or determination made by the California Public Employees’ Retirement System (CalPERS), the Department of Industrial Relations (DIR), or the Internal Revenue Service (IRS), Contractor shall, to the fullest extent permitted by law, indemnify, defend, and hold harmless the City from and against any all claims relating to or in connection with such a finding and/or determination.
In this section, “City” means the City, its officials, officers, agents, employees and volunteers; “Contractor” means the Contractor, its employees, agents and subcontractors; “Claims” includes claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all related costs and expenses) and any allegations of these; and “Arising out of” includes “pertaining to” and “relating to”.
(The duty of a "design professional" to indemnify and defend the City is limited to claims that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, under Civ. Code § 2782.8.)
Contractor and City mutually waive consequential damages for claims, disputes, or other matters in question, arising out of or relating to this Agreement. This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination of this Agreement.
The provisions of this section survive completion of the services or the termination of this Agreement, and are not limited by the provisions of Section 5 relating to insurance.
1. Insurance. Contractor shall, throughout the duration of this Agreement, maintain insurance to cover Contractor, its agents, representative, and employees in connection with the performance of services under this Agreement at the minimum levels set forth herein.
1.1. Commercial General Liability (with coverage at least as broad as ISO form CG 00 01 01 96) “per occurrence” coverage shall be maintained in an amount not less than $4,000,000 general aggregate and $2,000,000 per occurrence for general liability, bodily injury, personal injury, and property damage.
City of Porterville
Bus Stop Signs
1.2. Automobile Liability (with coverage at least as broad as ISO CA 00 01 07 097, for “any auto”) “claims made” coverage shall be maintained in an amount not less than $1,000,000 per accident for bodily injury and property damage.
1.3. Workers’ Compensation coverage shall be maintained as required by the State of California.
1.4. Professional Liability “claims made” coverage shall be maintained to cover damages that may be the result of errors, omissions, or negligent acts of Contractor in an amount not less than $1,000,000 per claim.
1.5. Endorsements. Contractor shall obtain endorsements to the automobile and commercial general liability insurance policies with the following provisions:
1.5.1. The City (including its elected officials, officers, employees, agents, and volunteers) shall be named as an additional “insured.”
1.5.2. For any claims related to this Agreement, Contractor’s coverage shall be primary insurance with respect to the City. Any insurance maintained by the City shall be excess of the Contractor’s insurance and shall not contribute with it.
1.6. Notice of Cancellation. Contractor shall notify the City if the policy is canceled before the expiration date. For the purpose of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation. Contractor shall immediately obtain a replacement policy.
1.7. Authorized Insurers. All insurance companies providing coverage to Contractor shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.
1.8. Insurance Certificate. Contractor shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance and endorsements, in a form satisfactory to the City, before the City signs this Agreement.
1.9. Substitute Certificates. Contractor shall provide a substitute certificate of insurance no later than 30 days prior to the policy expiration date of any insurance policy required by this Agreement.
1.10. Contractor’s Obligation. Maintenance of insurance by the Contractor as specified in this Agreement shall in no way be interpreted as relieving the Contractor of any responsibility whatsoever (including indemnity obligations under this Agreement), and the Contractor may carry, at its own expense, such additional insurance as it deems necessary. Failure to provide or maintain any insurance policies or endorsements required herein may result in the City terminating this Agreement.
City of Porterville
Bus Stop Signs
2. Termination. The City may terminate this Agreement in its sole and absolute discretion by giving ten (10) days’ written notice to Contractor. Within five (5) days of such a termination, Contractor shall give the City all original documents relating to the Services in Contractor’s possession or control, including, without limitation, preliminary drafts and supporting documents, and any other documents prepared by Contractor pursuant to this Agreement. The City shall pay Contractor for all services satisfactorily performed in accordance with this Agreement, up to the date notice is given.
3. Dispute Resolution. If any dispute arises between the City and Contractor that cannot be settled after engaging in good faith negotiations, City and Contractor agree to resolve the dispute in accordance with the following:
3.1. Each Party shall designate a senior management or executive level representative to negotiate the dispute.
3.2. The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority,
3.3. If the issue remains unresolved after fifteen (15) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiations between legal counsel. If the aforementioned process fails, the Parties shall resolve any remaining disputes through mediation to expedite the resolution of the dispute.
3.4. The mediation process shall provide for the selection within fifteen (15) days by both Parties of a disinterested third person to serve as the mediator, shall be commenced within thirty (30) days of selection of a mediator, and shall be concluded within fifteen (15) days from the commencement of the mediation.
3.5. The Parties shall equally bear the costs of any third party in any alternative dispute resolution process.
3.6. The dispute resolution process is a material condition of this Agreement and must be exhausted prior to either Party initiating legal action. This dispute resolution process is not intended to nor shall be construed to change the time periods for filing a claim or action specified by Government Code §§ 900 et seq.
4. Labor Code Compliance. Contractor is aware of the requirements of Chapter 1 of Part 7 of Division 2 of the California Labor Code and applicable regulations which require the payment of prevailing wage rates (§1771, §1774, and §1775); employment of apprentices (§1777.5), certified payroll records (§1776), hours of labor (§1813 and §1815), debarment of contractors and subcontractors (§1777.1) and the performance of other requirements on “public works” and “maintenance” projects. The services being performed under this Agreement are part of a “public works” or “maintenance” project, as defined in the Prevailing Wage Laws, Contractor agrees to fully comply with such Prevailing Wage Laws.
City of Porterville
Bus Stop Signs
5. Rates. These prevailing wage rates are available online at http://www.dir.ca.gov/DLSR. Each Contractor and Subcontractor must pay no less than the specified rates to all workers employed to perform the services described herein. The schedule of per diem wages is based upon a working day of eight hours. The rate for holiday and overtime work must be at least time and one-half. Contractor assumes all responsibility for such payments and shall defend, indemnify and hold the City harmless from any and all claims made by the State of California, the Department of Industrial Relations, any subcontractor, any worker, or any other third party.
6. Registration with DIR. Contractor warrants that it is registered with the Department of Industrial Relations and qualified to perform the services consistent with Labor Code section 1725.5
7. Monitoring. This Agreement will be subject to compliance monitoring and enforcement by the DIR, under Labor Code section 1771.4.
8. Ownership of Work. All original documents prepared by Contractor for this Agreement, whether complete or in progress, are the property of the City, and shall be given to the City at the completion of Contractor’s Services, upon termination of this Agreement, or upon demand from the City. No such documents shall be revealed or made available by Contractor to any third party without the City’s prior written consent.
9. Independent Contractor Status. Contractor is an independent contractor and is solely responsible for the acts of its employees or agents, including any negligent acts or omissions.
Contractor is not City’s employee and Contractor shall have no authority, express or implied, to act on behalf of the City as an agent, or to bind the City to any obligation, unless the City provides prior written authorization. Contractor is free to work for other entities while under contract with the City. Contractor, and its agents or employees, are not entitled to City benefits.
10. Conflicts of Interest. Contractor (including its employees, agents, and subcontractors) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. If Contractor maintains or acquires such a conflicting interest, the City may terminate any contract (including this Agreement) involving Contractor’s conflicting interest.
11. Rebates, Kickbacks, or Other Unlawful Consideration. Contractor warrants this this Agreement was not obtained or secured through rebates, kickbacks, or other unlawful consideration either promised or paid to any City official or employee. For any breach of this warranty, City shall have the right, in its sole discretion, to terminate this Agreement without liability; to pay only for the value of the work actually performed; to deduct from the contract price the value of the rebate, kickback, or other unlawful consideration; or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.
12. Notices. All notices, demands, or other communications which this Agreement contemplates or authorizes shall be in writing and shall be personally delivered or mailed to the other party to the addresses listed below. Communications shall be deemed to have been given on the first to occur of: (1) actual receipt at the address designated below, or (2) three working days after
City of Porterville
Bus Stop Signs
the deposit in the United States Mail of registered or certified mail, sent to the address designated below.
To City: To Contractor
City of Porterville ____________________________
Transportation Department ____________________________
291 N. Main Street ____________________________
Porterville, CA 93257 ____________________________
13. Miscellaneous
13.1. Standard of Care. Unless otherwise specified in this Agreement, the standard of care applicable to Contractor’s services will be the degree of skill and diligence ordinarily used by reputable professionals performing in the same or similar time and locality, and under the same or similar circumstances.
13.2. Amendments. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.
13.3. Waivers. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. No waiver shall be effective unless it is in writing and signed by the waiving party.
13.4. Assignment and Delegation. Contractor may not assign, transfer or delegate this Agreement or any portion of it without the City’s prior written consent. Any attempt to do so will void. City’s consent to one assignment, transfer or delegation shall not be deemed to be consent to any subsequent assignment, transfer or delegation.
13.5. Jurisdiction and Venue. The interpretation, validity, and enforcement of the Agreement shall be governed by and construed under the laws of the State of California.
Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Tulare.
13.6. Compliance with Law. Contractor shall comply with all applicable local, state, and federal laws, whether or not those laws are expressly stated in this Agreement.
13.6.1. Hazardous Materials. Contractor is responsible for all costs of clean up and/or removal of hazardous and toxic substances spilled as a result of performing their services.
13.6.2. Non-discrimination. Contractor represents and warrants that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, color, national origin,
City of Porterville
Bus Stop Signs
handicap, ancestry, sex or age. Contractor shall also comply with all applicable antidiscrimination federal and state laws, including but not limited to, the California Fair Employment and Housing Act (Gov. Code 12990 (a-f) et seq.)
13.7. Business Entity Status. Contractor is responsible for filing all required documents and/or forms with the California Secretary of State and meeting all requirements of the Franchise Tax Board, to the extent such requirements apply to Contractor. By entering into this Agreement, Contractor represents that it is not a suspended corporation. If Contractor is a suspended corporation at the time, it enters this Agreement, City may take steps to have this Agreement declared voidable.
13.8. Business License. Before the City signs this Agreement, Contractor shall obtain a City of Porterville Business License. Contractor shall maintain an active City of Porterville Business License during the term of this Agreement.
13.9. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.
13.10. Construction of Agreement. Each Party hereto has had an equivalent opportunity to participate in the drafting of this Agreement and/or to consult with legal counsel.
Therefore, the usual construction of an agreement against the drafting Party shall not apply hereto.
13.11. Severability. If a term of this Agreement is held invalid by a court of competent jurisdiction, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in effect.
13.12. Controlling Provisions. In the case of any conflict between the terms of this Agreement and Exhibits hereto, and Contractor’s proposal (if any), the Agreement shall control. In the case of any conflict between the Exhibits hereto and the Contractor’s proposal (if any), the Exhibits shall control.
13.13. Entire Agreement. This Agreement and the Attached Exhibits comprise the entire integrated understanding between the Parties concerning the services to be performed.
This Agreement supersedes all prior negotiations, representations or agreements. All exhibits attached hereto are incorporated by reference herein.
13.14. Counterparts. City and Contractor agree that this Agreement may be executed in two or more counterparts, each of which shall be deemed an original.
13.15. Expenses for Enforcement. Contractor and City agree that the prevailing party’s reasonable costs, attorneys’ fees and expenses, including investigation fees and expert witness fees, shall be paid by the non-prevailing party in any dispute involving the terms and conditions of this Agreement.
City of Porterville
Bus Stop Signs
14. Signatures. The individuals executing this Agreement on behalf of Contractor represent and warrant that they have the right, power, legal capacity and authority to enter into and to execute this Agreement on behalf of Contractor.
The Parties agree to the full performance of these terms set forth here.
City of Porterville Contractor
291 N. Main Street ____________________________
Porterville, CA 93257 ____________________________
By: Greg Meister By: _________________________
Title: Mayor Title: ________________________
Date: __________________ Date: ________________________ Federal Employer Tax ID No. ____________
Signature: _____________________ Signature: ___________________________ Attest:
_____________________________
Jason Ridenour, Interim City Clerk
Approved as to form:
_____________________________
Julia M. Lew, City Attorney
Exhibits:
A. RFP No.XXX XXXXXXXXXXX
B. Contractor Proposal
C. Compensation
Item No. 5.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Authorization to Award Contract - Foundation and Drainage System Project for Future Draeger Prop Installation
SOURCE: Engineering and Project Management
COMMENT: On February 11, 2025, staff received eight bids for the Foundation and Drainage System Project for the future Draeger prop installation. This project includes grading of the site and the construction of the engineered concrete pad and drainage system that Draeger will utilize to install the fire training prop they are currently manufacturing. This project is the required first step in the process to allow the installation of the training prop.
The Engineer's Estimate of Probable Cost for the project was $350,000.
The lowest bid presented by Todd Companies of Visalia is $177,500, which is $172,500 lower than the Engineer's Estimate (-49.28%). An additional $17,750 is necessary for construction contingency (10%) and $17,750 is required for construction management, surveying, quality control, and inspection services (10%); equating to a total construction cost of $213,000.
Funding for this phase of the project is approved in the 2024-2025 Fiscal Year Budget from the Measure I Fund.
The bids are as follows:
Contractor Bid Amount
Todd Companies
Visalia, CA
$177,500
Sierra Range Construction
Visalia, CA
$279,815
Holloway Construction, Inc
Hanford, CA
$293,000
United Engineering & Construction
Glendale, CA
$297,000
Caliber Contracting Services, Inc
Fresno, CA
$313,068
TMJ Construction, Inc
Bakersfield, CA
$317,765
AG & Industrial Enterprises, Inc $320,000
Item No. 5.
Earlimart, CA
SW Construction
Bakersfield, CA
$335,688
Staff has found the lowest responsive bid acceptable.
RECOMMENDATION: That the City Council:
1. Award the Foundation and Drainage System Project for Future Draeger Prop Installation to Todd Companies of
Visalia in the amount of $177,500;
2. Authorize progress payments up to one hundred percent (100%) of the contract amount;
3. Authorize ten percent (10%) for construction contingency to cover unforeseen costs; and
4. Authorize an additional ten (10%) percent for
construction management, construction surveying, quality control and inspection services.
ATTACHMENTS: 1. Locator Map
Appropriated/Funded:
Review By:
Department Director:
Javier Sanchez, Engineering & Project Management Director Final Approver: Jason Ridenour, Interim City Manager
FOUNDATION AND DRAINAGE
PROJECT FOR FUTURE
DRAEGER PROP N NEWCOMB ST.
W MORTON AVE.
SUBJECT
LOCATION
0 150 300
SCALE: 1"=150'
Item No. 6.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Authorization to Apply for CalHome Grant
SOURCE: Community Development
COMMENT: The California Department of Housing and Community Development (HCD) issued a 2024 Homeownership Super Notice of Funding Availability (Super NOFA) for funds under the CalHome Program on December 12, 2024. The program Super NOFA is designed to make funds available to cities, counties, and nonprofit corporations to increase homeownership programs aimed at low- and very-low-income households and operated by the local public agency or the nonprofit corporation. This Super NOFA is for First Time Homebuyer Mortgage Assistance, Owner Occupied Rehabilitation Assistance, Technical Assistance for Self-Help Housing Projects, Technical Assistance for Shared Housing Programs, ADU/JADU Assistance, and
Homeownership Development Project Loans.
Staff is seeking authorization to apply for the CalHome grant in the amount of $1,000,000 for First Time Homebuyer Mortgage Assistance.
The CalHome grant does not require a local match. Delivery costs (Staff time) associated with the First Time Homebuyer Loans funded is also an eligible expense up to 10% of the total award costs.
The application is due March 13, 2025. Award of funds is expected to be made in June 2025, with the execution of a Standard Agreement with HCD several months later. The term of the Standard Agreement shall be for 36 months from the date of the award letter. HCD is not requiring an executed resolution at this time, and will provide their template resolution at the time of award; therefore, City staff will bring back an item for approval of a draft resolution at notification of award of funds.
In applying for these CalHome Program funds, the City is continuing to take measures to implement programs outlined in the City’s Housing Element and the 2025 CDBG Five-Year Consolidated Plan.
RECOMMENDATION: That the City Council authorize City staff to submit an application for the 2024 Homeownership Super Notice of
Funding Availability.
Item No. 6.
ATTACHMENTS: 1. 2024 Homeownership Super NOFA
Appropriated/Funded:
Review By:
Department Director:
Claudia Calderon, Community Development Director
Final Approver: Jason Ridenour, Interim City Manager
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF STATE FINANCIAL ASSISTANCE
651 Bannon Street, Suite 400
Sacramento, CA 95811 (916) 263-2771
December 12, 2024
Amended January 17, 2025
Amended January 14, 2025
MEMORANDUM FOR: ALL POTENTIAL APPLICANTS
FROM: Jennifer Seeger, Deputy Director
Division of State Financial Assistance
SUBJECT: 2024 Homeownership Super Notice of Funding Availability The California Department of Housing and Community Development (HCD or Department) is pleased to announce the release of the 2024 Homeownership Super Notice of Funding Availability (HOSN) for approximately $176.8 million in funds for the following programs:
• CalHome Program ($143.1 million)
• Joe Serna, Jr. Farmworker Housing Grant Program – Homeownership (“Serna Homeownership”) ($33.7 million)
This funding provides Loans and Grants to Local Public Entities and Nonprofits for Homeownership Development Projects, Self-Help Technical Assistance Projects, Mortgage Assistance Programs, Owner-Occupied Rehabilitation Programs, ADU/JADU Programs, Shared Housing Programs and Programs for the Acquisition of Manufactured Housing for Agricultural Households.
Applications for this funding must be submitted electronically via the application portal no later than 4:00 P.M. Pacific Standard Time on Thursday, March 13, 2025.
The portal link, and requirements for submitting the HOSN application and required supporting documentation, including naming conventions, can be found on the Department’s Homeownership Super NOFA (HOSN) website,
https://www.hcd.ca.gov/grants-and-funding/programs-active/homeownership-super-nofa.
Attention Tribal Applicants: The 2023 Homeownership Super NOFA (HOSN), released January 6, 2023, included tribal funding targets of $3.5 million in Serna Homeownership funds and $13.5 million in CalHome funds. Please note that:
• Any unused Serna Homeownership funds from the Round 1 Homeownership Super NOFA target for Tribal Entities have been rolled over to this 2024 HOSN and will be available to all Serna Homeownership Applicants, including but not limited to tribes. • Any unused CalHome funds from the Round 1 Homeownership Super NOFA target for Tribal Entities have been rolled over to a separate 2024 CalHome Tribal NOFA exclusively for tribes, which is being released simultaneously with this 2024 HOSN. 2024 Homeownership Super Notice of Funding Availability (HOSN) December 12, 2024 (Amended January 14, 2025)
Tribal Entities are encouraged to apply for CalHome funds via the CalHome Tribal NOFA for approximately $18 million, which is being released simultaneously with this 2024 HOSN.
The online HOSN workshop details and final Guidelines are posted on the Department’s website at Homeownership Super NOFA | California Department of Housing and Community Development. To receive information regarding online workshops and other updates, please subscribe to our Homeownership listserv at https://www.hcd.ca.gov/contact-us/email-signup. If you have further questions, please contact [email protected].
2024 Homeownership Super Notice of Funding
Availability (HOSN)
CalHome Program
and
Joe Serna, Jr. Farmworker Housing Grant Program – Homeownership Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon Street, Suite 400, Sacramento, CA 95811
Telephone: (916) 263-2771
Website: http://www.hcd.ca.gov/
Email: [email protected]
December 12, 2024
Amended January 14, 2025
California Department of Housing and Community Development Page 1 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Table of Contents
I. Overview.............................................................................................................................................. 2 A. Notable Changes to 2024 Homeownership Super NOFA (HOSN)................................................... 2 B. Funds Available ................................................................................................................................ 3 C. Timeline ............................................................................................................................................ 6 D. Authorizing Legislation and Regulations ........................................................................................... 6 II. Program Requirements...................................................................................................................... 7 A. Eligible Sponsor/Applicant ................................................................................................................ 7 C. Program Funding Amounts, Terms, and Limits ..............................................................................11 B. Threshold Requirements.................................................................................................................15 C. Rating and Ranking ........................................................................................................................16 D. Negative Points and Disencumbrance of Awards...........................................................................19 III. Application Submission and Review Procedures .........................................................................19 A. Application Submission Process.....................................................................................................19 B. Application Workshops ...................................................................................................................19 C. Disclosure of Application.................................................................................................................19 IV. Evaluation Criteria ........................................................................................................................20 A. Base Criteria ...................................................................................................................................20 B. Serna Specific Criteria ....................................................................................................................25 C. Tiebreaker.......................................................................................................................................25 V. Appeals..............................................................................................................................................26 A. Basis of Appeals .............................................................................................................................26 B. Appeal Process and Deadlines .......................................................................................................26 C. Decision ..........................................................................................................................................26 VI. Award Announcements and Contracts.......................................................................................27 A. Award Announcements...................................................................................................................27 B. Contracts.........................................................................................................................................27 VII. Other State Requirements............................................................................................................27 A. Shared Parking ...............................................................................................................................28 B. Other Terms and Conditions...........................................................................................................28 California Department of Housing and Community Development Page 2 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) I. Overview
A. Notable Changes to 2024 Homeownership Super NOFA (HOSN) • The 2024 HOSN does not include a funding target for Tribal Entities. Instead, Tribal Entities are encouraged to apply for CalHome funds via the Tribal CalHome NOFA of approximately $18 million, which is being released simultaneously with this Homeownership Super NOFA.
• Increase of the maximum sales price for Homeownership Development Projects to 150 percent of the highest local median sales price of a single-family home during the past six months.
• Projects will be ineligible to receive funds if construction work has begun or will begin prior to the application due date. In the 2023 Homeownership Super NOFA, proposed projects were ineligible to receive funds if construction work had begun or would begin prior to the date the Department executed the Standard Agreement with the Recipient.
• The maximum appraised home values at time of purchase or upon completion of acquisition/Rehabilitation work for Mortgage Assistance loans has been changed to the highest local median sales price of a single-family home during the past six months.
• The After-Rehabilitation Values for units assisted with Owner-Occupied Rehabilitation Assistance was increased to 150 percent of the highest local median sales price of a single-family home during the past six months. • Minimum application amounts have been adjusted as follows:
o Minimum total application amount of $1,000,000.
o If applying for one or more activity, the minimum application amount per activity is $500,000.
o If applying for any funding target (e.g., Mobilehome or Manufactured Home assistance, rural), the minimum application amount for that funding target is also $500,000.
• Changes to the Scoring Rubric include the following:
o Feasibility scoring criterion decreased from 20 to 15. o New scoring criterion for number of prospective households served added for 5 points
o Scoring for the Prohousing Designation criterion will now award 5 points will to Projects or Programs that are located in jurisdictions that have received a Prohousing Designation or that have applied for a Prohousing Designation by the application due date and are certified by the Department within 45 days after the application due date.
o Additional tiebreakers were added.
• New provisions were added regarding shared parking and compliance with Government Code 65863.1(i).
California Department of Housing and Community Development Page 3 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) B. Funds Available
The California Department of Housing and Community Development (HCD or Department) is pleased to announce the release of this Homeownership Super Notice of Funding Availability (HOSN) for approximately $176.8 million, which may be augmented based on the availability of funds. The HOSN is issued to distribute funds through a combination of HCD-administered Homeownership programs. These programs are:
• CalHome Program (CalHome) supports Homeownership programs aimed at lower and very low-income households, and in the case of a disaster, households at or below moderate income, and operated by private nonprofit and local government agencies, to increase Homeownership, encourage neighborhood revitalization and sustainable development, and maximize use of existing homes.
• Joe Serna, Jr. Farmworker Housing Grant Program (FWHG or Serna) supports development projects involving multiple home ownership units, including singlefamily subdivisions, for lower-income agricultural employees and their families, and programs that assist lower-income agricultural employees and their families to become or remain homeowners.
The Homeownership Super NOFA distributes funds for the CalHome Program and funds limited to the Homeownership activities of Serna. Please note that new construction or Rehabilitation (with or without acquisition) of a rental housing development, including under Serna, is not an eligible activity under the HOSN.
Multifamily and single-family rental housing projects should submit applications under the Department’s Multifamily Finance Super NOFA (MFSN).
The Department is making approximately $176.8 million available as follows:
Funding Programs
CalHome Program $143.1 million
Joe Serna, Jr. Farmworker Housing Grant (Serna) Program $33.7 million Funding for this HOSN is provided by a combination of funding sources as outlined below:
• General Fund, CalHome Proposition 46 and Proposition 1C for CalHome • Building Homes and Jobs Act (Sen. Bill No. 2 (2017-2018 Reg. Sess.) §1): 2022 and 2023 for Serna
California Department of Housing and Community Development Page 4 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Approximately $143.1 million will be available for the following activities within the CalHome Program:
• Homeownership Development Project Loans (including Predevelopment Costs and carrying costs during construction related to ADUs and JADUs) • Technical Assistance for Self-Help Housing Projects
• First-Time Homebuyer Mortgage Assistance (including the purchase of a home with an Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU)
• Owner -Occupied Rehabilitation Assistance (including Rehabilitation of Manufactured Housing not on a permanent foundation, and construction, repair, or Rehabilitation of ADUs or JADUs
• Technical Assistance for Shared Housing Programs
• ADU/JADU Assistance (including construction, repair, or Rehabilitation of ADUs or JADUs)
Approximately $33.7 million will be available for the following Homeownership activities within the Serna Program to address the housing needs of agricultural workers:
• Homeownership Development Projects involving multiple home ownership units, including single-family subdivisions, for lower-income agricultural employees and their families.
• Technical Assistance for Self -Help Housing Projects
• First-time Homebuyer Mortgage Assistance
• Owner-Occupied Rehabilitation Assistance
• Acquisition of Manufactured Housing as part of a program to address and remedy the impacts of current and potential displacement of farmworker families from existing labor camps, Mobilehome Parks, or other housing.
Funding targets are described in Section II. E. of this HOSN.
The information provided in the 2024 HOSN is intended to be a summary and is not considered a complete representation of the entirety of the eligibility, threshold, and other requirements or terms and conditions of the CalHome Program and Serna Program. Applicants should familiarize themselves with all applicable Statutes and Guidelines which, in the event of any conflict(s) with this HOSN, shall control.
This HOSN, the CalHome Final Guidelines (2024), and the Serna- Homeownership Final Guidelines (2024) implement the requirements of California Assembly Bill 434 (AB 434) (Chapter 192, Statutes of 2020). For the Homeownership activities of Serna, AB 434 requires the Department to:
• Make those funds available at the same time it makes funds available under the CalHome Program,
• Rate and rank applications in a manner consistent with the CalHome Program, except that the Department may establish additional point categories for the California Department of Housing and Community Development Page 5 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) purposes of rating and ranking applications that seek funding under Serna in addition to those used in the CalHome Program,
• Administer those funds in a manner consistent with the CalHome Program Attention Tribal Entities
• The 2024 HOSN does not include a funding set-aside for Tribal Entities.
Instead, Tribal Entities are encouraged to apply for CalHome funds via the Tribal CalHome NOFA of approximately $18 million, which is being released simultaneously with this Homeownership Super NOFA (HOSN). • The requirements set forth in NOFAs are subject to AB 1010 (Stats.2019, c. 660), which is set forth in HSC section 50406, subdivision (p). Accordingly, and pursuant to HSC section 50406, subdivision (p), (a) where the provisions of tribal law, tribal governance, tribal charter, or difference in Tribal Entity or legal structure would cause a violation or not satisfy the requirements of state financing being provided by the Department, said requirements may be modified as necessary to ensure program compatibility; and (b) where provisions of tribal law, tribal governance, tribal charter, or difference in Tribal Entity legal structure or agency create minor inconsistencies (as determined by the Director of the Department or a duly authorized designee thereof) with the requirements of state financing being provided by the Department, the Department may waive said requirements, as deemed necessary, to avoid an unnecessary administrative burden. Matters set forth or otherwise provided for in the requirements of state financing being provided by the Department that may be modified or waived include, without limitation, threshold requirements and any other matters set forth in HSC section 50406, subdivision (p)(2). AB 1010 may waive or modify state financing statutory requirements under Division 31 of the Health and Safety Code subject to the limitations of applicable law including the California Constitution and AB 1010. Any requests to waive or modify such statutory requirements will be considered by the Department on a case-by-case basis.
• Please note that AB 1010 does not automatically operate to obviate, or otherwise modify, any provision(s) of these Guidelines. To the extent that a Tribal Entity applicant believes that AB 1010 is applicable to such Tribal Entity, their Application, the Project to which their Application relates, or any number of them, it is recommended that such Tribal Entity applicant submit an AB 1010 waiver request to the Department before applications are due under the applicable NOFA to ensure that the Department has adequate time to review such waiver request and render a decision granting, or rejecting, the request.
California Department of Housing and Community Development Page 6 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) C. Timeline
HOSN Release December 12, 2024
Application Release December 13, 2024
Application Portal Opens December 19, 2024
Application Due Date March 13, 2025, 4:00 PM
Award Announcement June/July 2025
D. Authorizing Legislation and Regulations
Applications submitted under this HOSN are subject to the applicable Program Guidelines, all applicable statutory requirements, and this HOSN. Section references in this HOSN refer to applicable Program Guidelines unless otherwise noted. Capitalized terms in this HOSN are either defined herein or in Appendix A of the applicable Program Guidelines.
The administration of the CalHome and Serna Programs are governed by the applicable Program Guidelines that implement, interpret, or make specific the following laws:
• The CalHome Program was established by Chapter 6, commencing with § 50650) of Part 2 of Division 31 of the California Health & Safety Code (“HSC”). • The Serna Program was established by Chapter 3.2 (commencing with § 50515.2) of Part 2 of Division 31 of the HSC. The Serna Guidelines referenced in this HOSN apply only to the Homeownership elements of Serna. Rental housing development activities are governed under a separate set of Program Guidelines.
• Building Homes and Jobs Act (Sen. Bill No. 2 (2017-2018 Reg. Sess.) § 1). • Veterans and Affordable Housing Bond Act of 2018 (Sen. Bill No. 3 (2017- 2018 Reg. Sess.) § 1)which was adopted by voters on November 6, 2018, as Proposition 1, provided funding for the CalHome and Serna Programs and authorized the Department to administer the Programs through the Guidelines.
These Guidelines were explicitly exempt from the requirements of the Administrative Procedures Act (Chapter 3.5)
This HOSN will be governed by the Calhome Final Guidelines (2024) and the Serna Homeownership Program Final Guidelines (2024). Applications must be completed pursuant to the applicable Guidelines requirements. References in this HOSN to a specific section of guidelines without specifying CalHome or Serna (e.g., “Guidelines §X00”) means that the specific guideline referenced is the same in both programs.
California Department of Housing and Community Development Page 7 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) II. Program Requirements
The following is provided as a summary only. Applicants should refer to the CalHome and Serna Homeownership Program Guidelines, as applicable, for a comprehensive discussion of the requirements that are relevant to their proposed Projects. A Project is not eligible for an Award unless it meets all the threshold requirements of the applicable program. Please review the individual Program Guidelines of each Program for complete information.
Further, Applicants must achieve a minimum point score of 55 points in Base Scoring Criteria to be considered for a funding Award.
A. Eligible Sponsor/Applicant
An Applicant is the entity or entities applying to the Department for the Program funding. Such entity or entities may also be the Sponsor. If receiving an Award of funds, the Applicant will be referred to as the “Recipient” in the Department’s legal documents relative to an Award of a Grant, or as the “Sponsor” in the Department’s legal documents relative to an Award of a Loan.
All Applicants must meet the requirements of the following sections of the relevant Program Guidelines:
1. CalHome
§200 Eligible Applicants
§400.1 Eligible Applicant (Homeownership Development Project Loan) §401.1 Eligible Applicant (Self-Help Technical Assistance Grant Program) §402.1 Eligible Applicant (Mortgage Assistance Grant Program) §403.1 Eligible Applicant (Owner-Occupied Rehabilitation Grant Program) §404.1 Eligible Applicant (Shared Housing Program)
§405.1 Eligible Applicant (ADU/JADU Program)
2. Serna
§200 Eligible Applicant
§400.1 Eligible Applicant (Homeownership Development Project Loan) §401.1 Eligible Applicant (Self-Help Technical Assistance Grant Program) §402.1 Eligible Applicant (Mortgage Assistance Grant Program) §403.1 Eligible Applicant (Owner-Occupied Rehabilitation Grant Program) §404.1 Eligible Applicant (Acquisition of Manufactured Housing Grant Program) California Department of Housing and Community Development Page 8 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) B. Eligible Use of Funds
1. The Department is making CalHome and Serna funds available for the following activities:
a. Homeownership Development Project Loans (Guidelines §400) for conditional Awards of development Loans to the Applicants to be used as specified in §400.2 of the Guidelines.
i. Homeownership Development Projects must have a minimum of five units.
ii. The estimated sales price of the homes to be constructed (Maximum Sales Price) shall not exceed 150 percent of the highest local median sales price of a single-family home during the past six months.
Recipients may use the median sales price, by county, posted at the California Association of Realtors website. However, if prices have significantly changed or local median sales prices by county do not accurately reflect actual local sales prices, Recipients may request Department approval to use different limits based on a local calculation of median values.
Note: Proposed projects are ineligible to receive funds if construction work has begun or will begin prior to the application due date. Construction work includes grading, site preparation (with the exception of demolition or clearing properties), or site improvements intended for public dedication (Guidelines §201).
b. Technical Assistance for Self-Help Housing Projects (Guidelines §401) in which the Applicant organization will be providing the services required in Guidelines §401.3.
i. Homebuyer Education (Guidelines §401.2(b)) will be reimbursed in the form of a Grant from the Department to the Recipient in an amount not to exceed $250 per assisted unit.
Please note, Applicants that were previously awarded CalHome or Serna Homeownership funds must submit all outstanding reports from the past two years to the Department by the application due date. Failure to submit the reports by the application due date will result in the Applicant being ineligible for a CalHome or Serna Homeownership Award under this HOSN (Guidelines §200(c)(1)).
Applicants may email: [email protected] for CalHome or [email protected] for Serna Homeownership to obtain status on previous reports.
California Department of Housing and Community Development Page 9 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) c. First-Time Homebuyer Mortgage Assistance (including the purchase of homes with ADUs or JADUs) (commencing with Guidelines §402) for Loans to Eligible Households as defined in Guidelines §203.
i. Homebuyer Education (Guidelines §402.2) will be reimbursed in the form of a Grant from the Department to the Recipient in an amount not to exceed $250 per assisted unit.
ii. Maximum appraised home values at time of purchase or upon completion of acquisition/Rehabilitation work (Maximum Sales Price/Value Limit) shall not exceed the highest local median sales price of a single-family home during the past six months. Recipients may use the median sales price, by county, posted at the California Association of Realtors website. However, if prices have significantly changed or local median sales prices by county do not accurately reflect actual local sales prices, Recipients may request Department approval to use different limits based on a local calculation of median values.
iii. Financial assistance provided to qualified individual homeowners for Mortgage Assistance shall be in the form of deferred payment Loans, repayable upon the sale or transfer of the homes, when the home ceases to be Owner-Occupied, or upon the Loan maturity date, whichever occurs first (HSC § 50650.3 (c)(1)). The Loan shall be up to a 30-year term with the following exception: when USDA, Rural Housing Service (RHS) 502 Mortgage Loans are in first lien position the term shall be the term of the 502 Mortgage (Guidelines §301). The interest rate is set by the Recipient at up to 3 percent simple interest per annum (Guidelines §301(d)). Borrowers shall occupy units as their principal place of residence for the term of the Loan (Guidelines §203(d)). If the Borrower will occupy an ADU or JADU, then residents of the singlefamily residence shall not be considered as part of the Household receiving program funding (Guidelines §203). Recipients shall comply with the Homeowner/Homebuyer Loan-to-Value Limits for Mortgage Assistance program Loans defined in Guidelines §302.
d. Owner-Occupied Rehabilitation Assistance (including repair, full reconstruction, or the addition of an ADU or JADU) (Guidelines §403) for Loans to Eligible Households as defined in Guidelines §203. i. All assisted units shall have After-Rehabilitation Values (Value Limits) at or below 150 percent of the highest local median sales price of a singlefamily home during the past six months. For properties where funds were used to add an ADU or JADU, the After-Rehabilitation Value (Value Limit) shall be at or below 150 percent of the highest local median sales price of a single-family home with an ADU or JADU during the past six months. Recipients may use the median sales price, by county, posted at the California Association of Realtors website. However, if prices have significantly changed or local median sales prices by county do not accurately reflect actual local sales prices, Recipients may request California Department of Housing and Community Development Page 10 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Department approval to use different limits based on a local calculation of median values.
ii. Manufactured Housing is also eligible, including replacement of a Manufactured Home not on a permanent foundation in the case where it has been determined by the Recipient it is infeasible to rehabilitate the home, whether located in a Mobilehome Park or elsewhere (Guidelines §403.2).
iii. Financial assistance provided to qualified individual homeowners for Owner- Occupied Rehabilitation shall be in the form of deferred payment Loans, repayable upon the sale or transfer of the homes, when the home ceases to be Owner-Occupied, or upon the Loan maturity date, whichever occurs first (HSC §50650.3(c)(1)). The Loan shall be up to a 30-year term (Guidelines §301). The interest rate is set by the Recipient up to 3 percent simple interest per annum (Guidelines §301). Borrowers must occupy units as their principal place of residence for the term of the Loan (Guidelines §203). If the Borrower will occupy an ADU or JADU, then residents of the single-family residence shall not be considered as part of the Household receiving funding (Guidelines §203). iv. Recipients shall comply with the Homeowner/Homebuyer loan-to-value limits for Owner-Occupied Rehabilitation program Loans defined in Guidelines §302.
v. Financial assistance provided to individual Households to rehabilitate, repair, or replace Manufactured Housing located in a Mobilehome Park and not permanently affixed to a foundation shall be in the form of a secured forgivable Loan, which shall also be made in a manner consistent with the Guidelines and applicable Statutes (HSC §50650.3(c) and Guidelines §403.2). The Loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the home is owned and continuously occupied by the Borrower (HSC §50650.3 (c)). Pursuant to HSC §50650.3(c), not more than 10 percent of the funds available in a given fiscal year shall be used for financial assistance in the form of secured forgivable Loans. If Tribal Entities intend for lands located in Indian Country, or other real property held in fee by such Tribal Entities, to be considered a Mobilehome Park for the purposes of this section, such tribal lands or real property must satisfy the legal and programmatic requirements of a Mobilehome Park per H.S.C. §18214. Tribal Entity applicants can submit their application with this information to the Department and it will be evaluated on an individual basis. It is recommended Tribal Entity applicants submit an AB 1010 waiver request before applications are due under the applicable NOFA to ensure said lands can be considered a Mobilehome Park.
2. The Department is also making CalHome funds available for the following additional activities:
a. Technical Assistance for Shared Housing Programs (Guidelines §404) to operators of Shared Housing Programs that will directly provide match California Department of Housing and Community Development Page 11 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) services where the providers are homeowners who occupy their homes as their principal place of residence.
b. ADU/JADU Programs (Guidelines §405) for Loans for ADU/JADU construction, reconstruction, repair, or Rehabilitation to Eligible Households as defined in Guidelines §203.
3. The Department is also making Serna funds available for the following activity, as set forth in Guidelines §404:
a. Acquisition of Manufactured Housing as part of a local Program to address and remedy the impacts of current and potential displacement of low-income farmworker families from existing labor camps, Mobilehome Parks, or other housing.
i. All Manufactured Homes acquired through the Program must be Owner- Occupied by a low-income Agricultural Worker Household (Guidelines§ 404.4(a)).
ii. Financial assistance provided to individual Households for Manufactured Housing located in a Mobilehome Park and not permanently affixed to a foundation shall be in the form of a secured forgivable Loan. The Loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the home is owned and continuously occupied by the Borrower.
C. Program Funding Amounts, Terms, and Limits
1. Minimum and Maximum Application Amounts.
a. The minimum total application amount is $1,000,000.
i. If an Applicant is applying for more than one activity, the minimum application amount per activity is $500,000 (except if the activity is Technical Assistance for Self-Help Housing Projects or CalHome Technical Assistance for Shared Housing Programs, in which case the minimum application amount is $100,000).
ii. If an Applicant is applying for any funding target (e.g., Mobilehome or Manufactured Home assistance, rural), the minimum application amount for that funding target is also $500,000.
b. The maximum application amount for a project (a Homeownership Development Project Loan with or without Technical Assistance for Self-Help Housing Projects) is $10 million.
i. The maximum application amount for one or more programs (any activity California Department of Housing and Community Development Page 12 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) other than a Homeownership Development Project Loan is considered a program) is $5 million.
ii. If applying only for Technical Assistance for Self-Help Housing Projects, the maximum application amount is $500,000. If applying only for CalHome Technical Assistance for Shared Housing Programs, the maximum application amount is $300,000.
2. Minimum and Maximum Per-Unit Funding Limits
a. CalHome and Serna Grant Activities: For the purposes of this HOSN, the minimum and maximum amount of funding to individual Borrowers will be:
i. Mortgage Assistance
The maximum Loan amount by an Award recipient to an eligible Borrower will be 40 percent of the Borrower’s purchase price for the property or $200,000, whichever is lower. The minimum Loan to a Borrower will be not less than $1,000.
For Mortgage Assistance provided as part of a Homeownership Development Project Loan, the maximum Loan amount by an Award recipient to an eligible Borrower will be 40 percent of the Borrower’s purchase price for the property or $250,000, whichever is lower. The minimum Loan to a Borrower will be not less than $1,000. ii. Owner-Occupied Rehabilitation Assistance
The maximum Loan amount by an Award recipient to an eligible Borrower will be $200,000 unless the home is in need of reconstruction.
If the home is in need of reconstruction, the maximum Loan amount will be $250,000. The maximum Loan amount for additional or full reconstruction of an ADU will be $250,000. The maximum Loan amount for rehabilitation of a Manufactured Home not on a permanent foundation, or for replacement of a Manufactured Home not on a permanent foundation in the case where it has been determined by the Recipient it is infeasible to rehabilitate the home, will be $150,000. The minimum Loan to a Borrower will be not less than $1,000. iii. CalHome ADU/JADU Assistance
The maximum Loan amount by an Award recipient to an eligible Borrower for ADU/JADU construction will be $250,000. The minimum Loan to a Borrower will be not less than $1,000.
iv.Serna Acquisition of Manufactured Housing
California Department of Housing and Community Development Page 13 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) The maximum Loan or Grant amount by an Award recipient to an eligible Agricultural Worker Household will be 100 percent of the purchase price for the Manufactured Home, up to a maximum of $150,000. The minimum Loan or Grant will be not less than $1,000.
b. CalHome and Serna Loan Activities: for the purposes of this HOSN, the minimum and maximum amount of funding will be:
i. Homeownership Project Development
The maximum per-unit Loan amount for Homeownership Development Project Loans will be $250,000.
If an Applicant is applying to fund a Homeownership Development Project with a Self-Help Housing Project, the Applicant may additionally apply for Technical Assistance of $20,000 per-unit on top of the application amount requested for a Homeownership Development Project.
c. Technical Assistance Funding Limits: The minimum Technical Assistance Grant to a Recipient will be not less than $1,000. For the purposes of this HOSN, the maximum Grant per-unit will be:
i. CalHome and Serna Technical Assistance for Self-Help Housing Projects
The maximum per-unit Grant amount will be $20,000. All expenses shall be documented.
ii. CalHome Technical Assistance for Shared Housing Programs The maximum activity amount for Shared Housing Programs is established in § (c)(1) of this NOFA.
d. Use of both CalHome and Serna funds on the same Project or Program is permitted, subject to the following limitations:
i. Any given Assisted Unit must only be funded from one Program, CalHome or Serna.
ii. Any given Assisted Unit must be assisted by funds from only one Project or Program (for example, repair of an ADU - the unit can be assisted with funds from a CalHome Owner-Occupied Rehabilitation program or a CalHome ADU/JADU program, but not both.)
California Department of Housing and Community Development Page 14 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) iii. Each Applicant is limited to no more than $10 million in total HOSN Homeownership Development Project Loans. Note: If the Applicant is an Administrative Subcontractor for or part of a Limited Liability Company, or Limited Partnership with a Tribal Entity on one or more applications, those applications will not count against the $10 million per-Applicant limit.
iv. Each Applicant is limited to no more than $5 million in total HOSN program Grants.
v. Each Applicant is limited to no more than $10 million in total HOSN funds (including applications for Homeownership Development Project Loans and applications for program, Grants).
vi. The per-Applicant HOSN Award cap is not applicable beyond an individual HOSN competition – it is not a cumulative per-Applicant cap across other Department NOFA funding opportunities.
vii. The Department will not award funding from CalHome or Serna to a Unit that previously received funding from the same program funding source.
For example, the Department will not provide CalHome funding under this HOSN to Units that were awarded CalHome funding in a prior CalHome funding round.
D. Funding Targets and Geographic Distribution of Funds
1. Funding Targets
To promote equitable distribution of Program funds, to the extent eligible applications are available to fund, this HOSN shall have the following targets listed below:
a. Mobilehome or Manufactured Home Assistance: To the extent there are eligible applications, the Department shall target $27 million of the available $143.1 million in CalHome funds as Awards for Mobilehome or Manufactured Home assistance. To the extent there is insufficient demand of eligible applications to make $27 million in Awards, any remaining funds will be applied to the general pool of Applicants.
b. Community-Based Developer: To the extent that there are eligible applications, the Department shall target 15 percent of HOSN funds (i.e., $26.5 million) to Community-Based Developers applying for a Homeownership Development Project Loan and/or a Self-Help Technical Assistance Grant. This shall include 15 percent of the total CalHome funds available under the HOSN (i.e., $21.5 million) and 15 percent of the total Serna funds available under the HOSN (i.e., $5 million).
California Department of Housing and Community Development Page 15 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Capability points (maximum 40 points) will not be considered in the ranking of the Community-Based Developer funding target; however, the capability point category will be applicable if an application is unsuccessful in the Community- Based Developer funding target and is then ranked with the remaining unfunded applications.
2. Geographic Distribution of Funds
The HOSN shall have geographic targets of up to 46 percent of available funds for Southern California, up to 24 percent for Northern California, and up to 20 percent for rural jurisdictions. Ten percent shall not be subject to a specific geographic distribution. In its sole discretion, HCD may determine the geographic distribution targets have been met based either on individual Program funding components or on the amount of total funds awarded under this NOFA.
For the purpose of geographic distribution:
• Targets are based on the percent of Low-Income renters in California, based on the HUD-released data from the American Community Survey (ACS) for the 2017-2021 period.
• "Rural" is defined to be consistent with the definition used by the TCAC for the tax credit program. A list of Rural areas, as well as the methodology to determine Rural or non-rural status, can be found on TCAC’s website or by clicking this link: https://www.treasurer.ca.gov/ctcac/2022/rural-status.pdf.
Northern Non-rural areas of the following counties: Alameda, Butte, Contra Costa, El Dorado, Fresno, Kings,
Madera, Marin, Merced, Monterey, Napa, Placer,
Sacramento, San Benito, San Francisco, San Joaquin,
San Mateo, Santa Clara, Santa Cruz, Shasta, Solano,
Sonoma, Stanislaus, Sutter, Tulare, Yolo, Yuba
Southern Non-rural areas of the following counties: Imperial, Kern, Los Angeles, Orange, Riverside, San
Bernardino, San Diego, San Luis Obispo, Santa
Barbara, Ventura
Rural Rural areas as defined by statute, including but not limited to the following 100 percent rural counties:
Alpine, Amador, Calaveras, Colusa, Del Norte, Glenn,
Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino,
Modoc, Mono, Nevada, Plumas, Sierra, Siskiyou,
Tehama, Trinity, Tuolumne
B. Threshold Requirements
1. Site Control: For Homeownership Development Project Loans, Recipients shall California Department of Housing and Community Development Page 16 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) comply with the Site Control requirements listed in Guidelines §400.3
2. Minimum Point Score: Applicants must achieve a minimum point score of 55 points in the Base Evaluation Criteria in Section IV of this HOSN to be considered for a funding Award.
3. Other Threshold Requirements: A Project is not eligible for an Award unless it meets all the threshold requirements of the relevant Program (CalHome or Serna). Please review the individual Program Guidelines for each Program for complete information.
Below is a summary of some of the key threshold requirements and is not to be considered a complete representation of the entirety of the threshold, or other requirements, terms, and conditions for CalHome and Serna. a. CalHome and Serna Guidelines Section §208 Threshold Requirements The following are highlights of CalHome and Serna threshold requirements:
i. A Local Public Entity that is not a Tribal Entity shall only be eligible to apply for an Award of program funds for a Local Program or project located within its jurisdictional boundaries. A Tribal Entity shall be eligible to apply for an award of CalHome program funds for a Local Program or project located anywhere within the State of California. ii. A Nonprofit Corporation or Tribally Designated Housing Entity shall only be eligible to apply for an Award of program funds for a program or project if it has developed a project or operated a housing program in California within the past two years or if the Nonprofit Corporation or Tribally Designated Housing Entity has an existing 523 Self-Help Technical Assistance Grant Agreement with the United States Department of Agriculture (USDA).
b. Serna Guidelines §208: Threshold Requirements
All Serna threshold requirements shall be satisfied. The following are highlights of Serna threshold requirements:
i. All Unis assisted with program funds must serve Lower-Income Agricultural Households.
C. Rating and Ranking
1. All applications will be evaluated on the Base Evaluation Criteria included in Section IV(A) of this HOSN. Applications for Serna funding will also be scored on the additional Serna Criteria included in Section IV(B). All applications meeting the threshold requirements of the applicable Program and achieving a minimum point score of 55 points in Base Evaluation Criteria will be considered for funding pursuant to the process described below:
California Department of Housing and Community Development Page 17 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) a. CalHome and Serna applications will be ranked separately since the additional evaluation criteria used for Serna applications means those applications have a higher possible maximum score.
b. Funding targets will be applied in the following order: 1) Community-Based Developers, 2) Mobilehome or Manufactured Home assistance and finally 3) geographic. All applications awarded under the Mobilehome or Manufactured Home assistance will also count towards meeting the applicable regional targets. If a concentration of Awards in any geographic area would make it impossible for the Department to meet the geographic funding targets established in this HOSN, the Department may skip to lowerscoring applications in other geographic areas. i. Applications that include some activities that are eligible for a funding target and some that are not eligible for a funding target, or include activities in multiple geographic regions, will be separated out into multiple applications for the purposes of rating and ranking. For example, if an Applicant applies for $1 million for Owner- Occupied Rehabilitation funds targeted to Mobilehome or Manufactured Home assistance and $2 million for Owner-Occupied Rehabilitation funds not targeted to Mobilehome or Manufactured Home assistance, the $1 million request will be scored separately from the $2 million request and only the $1 million request will be considered in the Mobilehome or Manufactured Home assistance funding target.
Similarly, if an Applicant applies for $500,000 in Mortgage Assistance program funds to be used in rural areas and $2.5 million in Mortgage Assistance program funds to be used in non-rural areas in Southern California, the $500,000 request will be scored separately from the $2.5 million request. As such, it is possible that only the part of a given application that is eligible as part of a funding target or is in an undersubscribed geographic area will be awarded funds if the remainder of the application does not score high enough in the general ranking.
Funding targets will only be awarded to the extent that eligible applications (those meeting all threshold requirements including minimum point score) exist. If the Department receives fewer eligible applications than funding available, any unawarded funds within the funding targets may be used to fund remaining eligible applications based on ranked score.
ii. CalHome funding targets for Community-Based Developers, and Mobilehome or Manufactured Home assistance: Beginning with the topranked CalHome applications (according to the Base Evaluation Criteria, including tiebreakers as applicable) eligible for the funding target, the highest scoring applications will be “fully funded” (provided all applicable threshold, minimum point score, and other eligibility criteria are met).
California Department of Housing and Community Development Page 18 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) “Fully funded” means these applications will receive an Award of all requested Program funds, subject to applicable limits. Applicable limits that could result in Department Awards below requested levels include but are not limited to: maximum allowable funding limits (per unit, per project and per Applicant) and available funding in the Homeownership HOSN.
Applicants that are eligible can compete in multiple funding targets if unsuccessful in one due to oversubscription. CalHome applications funded through the Community- Based Developer and Mobilehome or Manufactured Home assistance funding target are accounted for in the geographic percentage targets.
iii. Serna funding target for Community-Based Developers will begin with the top-ranked Serna applications (according to the Base Evaluation Criteria, including tiebreakers as applicable) eligible for the CommunityBased Developers funding target, the highest scoring applications will be “fully funded” (provided all applicable threshold, minimum point score, and other eligibility criteria are met). “Fully funded” means these applications will receive an Award of all requested Program funds, subject to applicable limits. Applicable limits that could result in Department Awards below requested levels include but are not limited to: maximum allowable funding limits (per unit, per project and per Applicant) and available funding in the Homeownership HOSN. Serna applications funded through the Community-Based Developer funding target are accounted for in the geographic percentage targets.
Once all funding targets are met to the extent possible, the highestranking remaining Serna applications will be fully funded until Serna funds are exhausted. However, if a concentration of Serna Awards in any geographic area would make it impossible for the Department to meet the geographic funding targets established in this HOSN, the Department may skip to lower-scoring Serna applications in other geographic areas. iv. If the last-ranked Serna application requests more Serna funds than remain, that Project will, conditioned upon the availability of additional funding, receive an augmentation of Serna funds, and be fully funded.
v. Finally, the highest-ranking CalHome applications will be fully funded until CalHome funds are exhausted. However, if a concentration of CalHome Awards in any geographic area would make it impossible for the Department to meet the geographic funding targets established in this HOSN, the Department may skip to lower-scoring CalHome applications in other geographic areas.
vi. If the last-ranked CalHome application requests more CalHome funds than remain, that Project will, conditioned upon the availability of additional funding, receive an augmentation of CalHome funds and be fully funded.
California Department of Housing and Community Development Page 19 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) D. Negative Points and Disencumbrance of Awards
1. The Department’s Negative Points Policy (Administrative Notice Number 2022- 01), published on the Department’s website, is hereby incorporated by this reference to the HOSN as if set forth in full herein, and shall apply with equal force as all other provisions set forth herein. If the Applicant is subject to a negative points assessment based on the criteria outlined in the Department’s Negative Points Policy, or is determined to be ineligible for funding, the Department shall notify the Applicant in writing in the initial point score letter.
2. Funds awarded under this HOSN may be disencumbered by the Department as set forth in §603 of the Guidelines.
III. Application Submission and Review Procedures
A. Application Submission Process
Application materials must be submitted electronically via the application portal. The portal link, and requirements for submitting the HOSN application and required supporting documentation including for Applicants seeking funding under the Community-Based Developer target, can be found on the Department’s Homeownership Super NOFA (HOSN) website. Please name each supporting document with the name of the document. For example, when uploading a CalHome Loan Servicing Plan, name the document “CalHome Loan Servicing Plan.” The application instructions and submittal portal will be available beginning December 13, 2024.
Applicants must upload and submit all application materials to the application portal no later than 4:00 p.m. Pacific Time on Thursday, March 13, 2025. Applications that do not meet the filing deadline will not be eligible for funding.
Applications must be on HCD’s forms and cannot be altered or modified by the Applicant. It is the Applicant’s responsibility to ensure the application is clear, complete, and accurate. Excel forms must be submitted in Excel format, not a PDF document.
B. Application Workshops
The Department will conduct a recorded webinar application workshop for the Homeownership HOSN. Please go to the Homeownership Super NOFA (HOSN) website for the dates and locations and to register.
C. Disclosure of Application
Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act (Chapter 1473, California Department of Housing and Community Development Page 20 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Statutes of 1968). As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including but not limited to, bank account numbers, personal phone numbers and home addresses.
By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.
IV. Evaluation Criteria
A. Base Criteria
Each CalHome and Serna application considered for funding shall be rated using the following criteria and maximum possible rating points:
Criteria Maximum
Points
Capability to operate the proposed program, administer and conduct the Self-Help Technical Assistance Project, or develop the type of Homeownership Project proposed in the application
Number of units or projects assisted within the last four years:
• For Mortgage Assistance, Owner-Occupied Rehabilitation, CalHome ADU/JADU, and Serna Acquisition of Manufactured Housing Programs:
2 – 5 units ~ 20 points
6 – 10 units ~ 30 points
11 or more units ~ 40 points
• For Technical Assistance for Self-Help Housing Projects:
2 – 10 units ~ 20 points
11 – 20 units ~ 30 points
21 or more units ~ 40 points
• For CalHome Technical Assistance for Shared Housing
Programs:
2 units ~ 20 points
3 – 4 units ~ 30 points
5 or more units ~ 40 points
• For Homeownership Development Project Loans:
2 projects ~ 20 points
3 – 4 projects ~ 30 points
5 or more projects ~ 40 points
40 California Department of Housing and Community Development Page 21 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Community Need in a geographic area for the proposed Local Program or project will be based on the following factors:
For Mortgage Assistance Programs, Technical Assistance for SelfHelp Housing Projects, CalHome Technical Assistance for Shared Housing Programs, CalHome ADU/JADU Programs, Serna
Acquisition of Manufactured Housing Programs, and
Homeownership Development Project Loans:
• Housing affordability in the geographic area: The ratio of the current median sales price of a single-family home to the AMI for a four-person Household in the county in which the program or project is located. The current median sales price is the most recent available from the California Association of Realtors as of the NOFA date, and the AMI is updated on an annual basis by the Department;
• Percent of renter Households that are low income: The percent of Households in renter-occupied housing with incomes below 80 percent of AMI, as reported in the most recent HUD
Comprehensive Housing Affordability Strategy U.S. Census Bureau American Community Survey (HUD CHAS) data;
• Percent of renter Households occupying overcrowded housing:
The percent of renter-occupied housing units with more than 1.5 occupants per room, as reported in the most recent HUD CHAS data; and
• Rental vacancy rate: The percent of rental housing units that are currently vacant, as reported in the most recent HUD CHAS data.
For Owner-Occupied Rehabilitation Programs:
• Percent of homeowner Households that are in poverty: The percent of families in Owner-Occupied housing with incomes below the federal poverty line, as reported in the most recent American Community Survey (ACS) data; and
• Percent of homeowner Households that are low income: The percent of Households in Owner-Occupied housing with
incomes below 80 percent of AMI, as reported in the most recent HUD CHAS data.
15 Feasibility in a geographic area for the proposed Local Program or project will be based on the following factors:
For Mortgage Assistance Programs: 15
California Department of Housing and Community Development Page 22 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) • Affordability of Homeownership relative to renting: The ratio of median Monthly Housing Costs for Owner- Occupied housing units with a Mortgage to median Monthly Housing Costs for renter-occupied housing units, as reported in the most recent ACS data;
• Availability of homes for sale relative to the proposed lending activity: The ratio of the following:
o The number of home sales in the most recent previous 12- month period for which data is available priced below the current median sales price of a single-family home in the county in which the program is located;
o The number of Loans that the Applicant expects to provide in the program.
For Owner-Occupied Rehabilitation Programs and CalHome
ADU/JADU Programs:
• Age of the housing stock: The percent of Owner- Occupied housing units over 30 years old, as reported in the most recent ACS data; and
• Percent of homeowner Households occupying overcrowded housing: The percent of Owner-Occupied housing units with more than 1.5 occupants per room, as reported in the most recent HUD CHAS data.
For CalHome Technical Assistance for Shared Housing Programs:
• Incidence of severe cost burden for low-income renters: The percent of Households in renter-occupied housing units
spending 50 percent or more of income on housing
expenses, as reported in the most recent HUD CHAS data; and
• Rental vacancy rate: The percent of rental housing units that are currently vacant, as reported in the most recent HUD CHAS data
For Serna Acquisition of Manufactured Housing Programs:
• All applications for this activity will receive 10 points for feasibility because the likelihood that they will acquire Manufactured Homes is absolute.
• Applicants who can demonstrate that they have site control over land zoned appropriately on which to place all of the acquired Manufactured Homes for which they are applying for funding will receive the full 15 points.
For Technical Assistance for Self-Help Housing Programs, Homeownership Development Project Loans, Mortgage Assistance California Department of Housing and Community Development Page 23 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Programs for housing newly constructed by the Applicant using funds other than CalHome or Serna funds for sale to first-time homebuyers, and Mortgage Assistance Programs for housing newly acquired and substantially rehabilitated by the Applicant using funds other than CalHome or Serna funds for sale to firsttime homebuyers:
• These programs and projects receive full points for feasibility.
Since these programs and projects create new affordable housing units, the likelihood that they will successfully and feasibly provide affordable homes to low-income households is absolute.
Contributes to Community Revitalization
A Program or Project receive points if all Units to be assisted with Program funds are, or will be, located within at least one of the following:
▪Federal Promise Zone,
▪Choice Neighborhood Initiative Area,
▪Opportunity Zone,
▪Federally designated Justice40 Initiative disadvantaged community
▪High- or Highest-Resource Area on TCAC Opportunity Area Map 10 Volunteer Labor, Self-Help Labor, or Youth Construction Skills Training Applicants applying for Homeownership Development Project Loans or Self-Help Technical Assistance Homeownership Projects, or a Mortgage Assistance Program for housing newly constructed by the Applicant using funds other than CalHome or Serna funds, or for housing newly acquired and substantially rehabilitated by the Applicant using funds other than CalHome, or Serna funds for sale to first-time homebuyers, will receive 5 points if:
• The Applicant utilizes Volunteer Labor or Self-Help Construction labor, where a minimum of five hundred
(500) hours of on-site construction labor per assisted unit is provided; or
• The Applicant utilizes labor provided by youth participating in a construction skills training program, where a minimum of five hundred (500) hours of on-site construction labor per assisted unit is provided. The five hundred (500) hours of construction training labor shall be provided by the 16- to 24-year-old program participants.
5 Increases Affordable Housing Supply
California Department of Housing and Community Development Page 24 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Applicants applying for any of the following activities will receive 3 points for supporting the state policy goal of increasing the supply of affordable housing:
• Homeownership Development Project Loans
• Mortgage Assistance Programs for housing newly constructed by the Applicant using funds other than CalHome or Serna funds, or for housing newly acquired and substantially
rehabilitated by the Applicant using funds other than CalHome or Serna funds for sale to first-time homebuyers
• Self-Help Technical Assistance Homeownership Projects • CalHome ADU/JADU Programs
• Serna Acquisition of Manufactured Housing Programs.
An additional two points will be awarded to applications receiving 3 points as outlined above where the Applicant can demonstrate the new development will be located on an infill site as defined in Health and Safety Code Section 53559(d)(3)(B). Applicants must provide a detailed map, including cross streets, showing exactly where the infill site is located.
5 Number of Prospective Households Served
For all activities, the score shall be:
1-10 prospective households ~ 1 point
11-14 prospective households ~ 2 points
15-19 prospective households ~ 3 points
20-24 prospective households ~ 4 points
25 or more prospective households ~ 5 points
For Technical Assistance for Self-Help Housing Programs, Homeownership Development Project Loans, Mortgage Assistance Programs for housing newly constructed by the Applicant using funds other than CalHome or Serna funds for sale to first-time homebuyers, and Mortgage Assistance Programs for housing newly acquired and substantially rehabilitated by the Applicant using funds other than CalHome or Serna funds for sale to firsttime homebuyers:
• The number of prospective households served will be equal to the number of housing units assisted.
For Mortgage Assistance Programs, Owner-Occupied Rehabilitation Programs, CalHome ADU/JADU Programs, and Serna Acquisition of Manufactured Housing Programs:
• The number of prospective households served will be equal 5 California Department of Housing and Community Development Page 25 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) to the total program funds requested (not including
Homebuyer Education funds or administrative costs) divided by the maximum allowable loan amount for the activity.
There is no way to know in advance how large of a loan
each assisted household will need; assuming the maximum allowable loan amount allows for a fair comparison.
For CalHome Technical Assistance for Shared Housing Programs:
• The number of prospective households served will be equal to the total program funds requested divided by $3,000.
Prohousing Designation
Points will be awarded to Projects or Programs that are located in jurisdictions that have received a Prohousing Designation or that have applied for a Prohousing Designation by the application due date and are certified by the Department within 45 days after the application due date.
5 Maximum Total Points 100
B. Serna Specific Criteria
Applications for Serna funding will also be evaluated on the following additional factors:
Serna Program Criteria Maximum
Points
Farmworker Need
Points will be awarded based on the number of Office of Migrant Services (OMS) Migrant Family Housing Centers in the geographic area for the proposed Local Program or project, as identified in the Department’s OMS Program Directory:
1 OMS Center ~ 10 points
2 OMS Centers ~ 20 points
3 or more OMS Centers ~ 30 points
30 C. Tiebreaker
In the event of tied point scores, the following tiebreakers shall be used to determine the ranking, in the order listed:
1. The Community Need point score
2. The Capability point score
3. The Feasibility point score
4. The total number units to be assisted
5. The award amount requested most closely matches remaining funds available and fully expends available funds. The Applicant may receive a partial award.
6. Applicant has not received a CalHome or Serna Homeownership award in the California Department of Housing and Community Development Page 26 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) past three years
V. Appeals
A. Basis of Appeals
1. Applicants may appeal HCD’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award (including point scoring and tie breaker).
2. At the sole discretion of the Department, the Department’s written determination may include a request for clarifying and/or corrective information. For purposes of this section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform the Department’s threshold, scoring and feasibility determinations.
3. No Applicant shall have the right to appeal a decision of HCD relating to another Applicant’s application (e.g., eligibility, award).
4. Any request to appeal HCD’s decision regarding an application shall be reviewed for compliance with the Guidelines and this HOSN. All decisions rendered shall be made by the Program Manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of HCD.
5. The appeal process provided herein applies solely to the decision of the Department made pursuant to this HOSN.
B. Appeal Process and Deadlines
1. Process
To file an appeal, Applicants must submit to HCD, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to an Applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to HCD at [email protected] according to the deadline set forth in HCD review letters.
2. Filing Deadline
Appeals must be received by HCD no later than five business days from the date of HCD’s threshold review, or initial score letters, representing HCD’s decision made in response to the application.
C. Decision
California Department of Housing and Community Development Page 27 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) Any request to appeal HCD’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of HCD.
VI. Award Announcements and Contracts
A. Award Announcements
The Department will announce program awards on the Homeownership Super NOFA (HOSN) website.
B. Contracts
Recipient(s) will enter into a Standard Agreement with the Department. The Standard Agreement will contain relevant state contracting and program requirements, specific information about the Award, the work to be performed, a project/program timeline, and any special conditions required to make the project feasible (Guidelines §600).
The Recipient(s) shall remain a party to the Standard Agreement for the agreement’s entire term. The Standard Agreement allows a maximum of 36-months from the date the Standard Agreement is fully executed by all parties to expend funds, except for Homeownership Project Developments which are allowed a maximum of 60 months (Guidelines §603).
The Department may exercise its reasonable discretion to disencumber funds or to grant an extension of time for completion (Guidelines §603). Any extensions are subject to any and all applicable encumbrances, deadlines, and limitations, including, but not limited to, HSC §54006(g). Documentation to support the Recipient’s expenditure of funds shall be received prior to the contract expiration date. The Standard Agreement expires at the end of 42 months from the date the Standard Agreement is fully executed by all parties (or 66 months for Homeownership Project Developments), unless extended. Recipients remain subject to the terms of the 20-year Monitoring Agreement (Guidelines §600).
VII. Other State Requirements
The Recipient agrees to comply with all applicable state and federal laws, rules, Guidelines, and regulations that pertain to health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the program or project, the Recipient, its contractors or subcontractors, and any Loan or Grant activity, including without limitation the following:
i. Guidelines §204 Local Program/Project Administration ii. Guidelines §209 State and Federal Laws, Rules, Guidelines and Regulations California Department of Housing and Community Development Page 28 2024 Homeownership SuperNOFA (HOSN) (amended on January 17, 2025) iii. Guidelines §400.7 Homeownership Development Project Requirements Where the proposed program or project type presents a fair housing issue (e.g., Serna housing), the Department reserves discretion to require a fair housing legal opinion.
A. Shared Parking
Applicants for Homeownership Development Project Loans shall examine the feasibility of shared parking agreements to replace new parking construction or limit the number of new parking spaces that will be constructed. An examination of the feasibility of shared parking shall include, at a minimum, identification of parking facilities on contiguous properties or nearby properties that would not require users to cross a street and then consideration of the apparent availability of those facilities for shared parking. (Government Code 65863.1(i)). Applicants shall submit the examination of the feasibility of shared parking at the time of application. Tribal Entities are not required to examine the feasibility of shared parking for Homeownership Development Projects located in Indian Country where an Indian tribe exercises jurisdiction.
B. Other Terms and Conditions
1. Right to Modify or Suspend
The Department reserves the right, at is sole discretion, to suspend, amend, or modify the provisions of this HOSN at any time, including without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties via the Department’s Homeownership email list and will post the revisions to the Homeownership Super NOFA (HOSN) website. Please be sure and subscribe to the Homeownership email list.
2. Conflicts
It is the duty and responsibility of the Applicant to review any funding source they obtain for a Project to ensure each of the requirements for those funding sources are compatible with Department program requirements.
In the event of any conflict between the terms of this HOSN and the Guidelines, state law, federal law, applicable regulation(s), or any number of them (collectively, “Controlling Law”), the Controlling Law shall prevail. Applicants are deemed to have fully read and understand all applicable state and federal laws, regulations, and Guidelines pertaining to the relevant Program, and understand and agree that the Department shall not be responsible for any errors or omissions in the preparation of this HOSN.
Item No. 7.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Permanent Local Housing Allocation (PLHA) Program Year 5 Funds Application
SOURCE: Community Development
COMMENT: In 2020, the California Department of Housing and Community Development (HCD) announced the Permanent Local Housing Allocation (PLHA) program Entitlement and Non-Entitlement Local Government formula component Notice of Funding Availability (NOFA). Funding for the NOFA was provided pursuant to Senate Bill (SB) 2 (Chapter 364, Statutes of 2017). SB 2 established the Fund and authorized HCD to allocate 70 percent of monies collected and deposited in the Fund, beginning in the calendar year 2019, to local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, ongoing source of funding to local governments for housingrelated projects and programs that assist in addressing the unmet housing needs of their local communities.
As an Entitlement Local government, the City of Porterville has applied for 2019, 2020, 2021, and 2022 formula allocations of PLHA funds in the amount of $342,754, $532,745, $586,270, and $293,840, respectively.
Additionally, the City submitted a 5-year plan outlining its intention to use the PLHA funds for the eligible activity 6, which is defined as, “Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.”
The 5-Year Plan has been amended and submitted twice since its initial adoption, once in 2021 and a second time in May 2024. On December 3, 2024, a third amendment to the Plan was proposed and approved by the Council in order to fund a capital project at the Navigation Center.
Contingency language was included to revert to the May 2024 version of the Plan should an alternative funding source be identified for the project. As another funding source was identified prior to submittal to HCD, the proposed amendment was not needed. A copy of the most recent HCD-approved Plan is attached for your reference.
Item No. 7.
On October 15, 2024, the HCD announced the release of the 2023 calendar year funds. The City of Porterville is eligible to apply for $225,218, which represents the 5th year funding of the City of Porterville’s adopted 5-Year PLHA Plan for use on the approved eligible activity 6 noted above and specifically for Permanent Supportive Housing, Navigation Center, Bridge Housing and Emergency Shelter Operations. The PLHA five-year formula allocation amount allocated by HCD up to $2,056,524 as outlined in the approved 5-year plan, however since this funding is dependent upon real estate transactions, the actual 5-year allocation is $1,980,827.
The deadline to submit the streamlined application for these funds is June 30, 2027. Since the 5-Year Plan Amendment No. 2 was approved and adopted by City Council at its meeting on May 7, 2024, no new action with regard to the Plan is required to apply for the 2023 NOFA.
However, staff is bringing this item before Council as an update and to request that Council authorize the Mayor to sign the streamlined application for the 2023 funding allocation of $225,218 for submittal to HCD; and authorize staff to respond to the 2023 PLHA NOFA and submit the streamlined application to HCD for the 2023 (Fifth year of PLHA 5-Year Plan) funds.
RECOMMENDATION: That the City Council:
1. Authorize the Mayor to sign the streamlined application for the 2023 PLHA funding allocation for submittal to HCD; and
2. Authorize staff to submit the streamlined application in response to the 2023 PLHA NOFA to HCD for 2023 (5th
year of PLHA 5-Year Plan) funds.
ATTACHMENTS: 1. 2024 Streamlined Application
2. Amendment No. 2 to PLHA 5-Year Plan_Final
Appropriated/Funded:
Review By:
Department Director:
Claudia Calderon, Community Development Director
Final Approver: Jason Ridenour, Interim City Manager
CITY OF PORTERVILLE Page 1 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN PLHA 5-Year Plan
City of Porterville
Permanent Local Housing Allocation Program
Five-Year 2019-2023 Plan
Amendment 2
§302(c)(4) Plan
Introduction: In 2017, Senate Bill 2 (the Building Homes and Jobs Act) created the Permanent Local Housing Allocation (PLHA) program. The California Department of Housing and Community Development (HCD) announced the availability of approximately $195 million in funding for the PLHA program Entitlement and Nonentitlement Local government formula component Notice of Funding Availability (NOFA).
The NOFAs are funded from moneys deposited in the Building Homes and Jobs Trust Fund (Fund) in calendar year 2019, 2020 and 2021 thus far.
Funding for this NOFA is provided pursuant to Senate Bill (SB) 2 (Chapter 364, Statutes of 2017). SB 2 established the Fund and authorizes the Department to allocate 70 percent of moneys collected and deposited in the Fund, beginning in calendar year 2019, to Local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, ongoing source of funding to Local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.
Purpose: The City of Porterville is considered an Entitlement Local government, and is eligible for a 2019, 2020 and 2021 formula allocation of PLHA funds in the amount of $342,754, $532,745, and $586,270, respectively. The approximate PLHA five-year formula allocation amount is $2,056,524. PLHA funds must be used to carry out one or more of the eligible activities listed below:
1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary Operating subsidies.
2. The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. See Appendix B for a list of High-cost areas in California.
3. Matching portions of funds placed into Local or Regional Housing Trust Funds.
CITY OF PORTERVILLE Page 2 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN
4. Matching portions of funds available through the Low- and Moderate- Item No. 17. Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
5. Capitalized Reserves for Services connected to the preservation and creation of new Permanent supportive housing.
6. Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
7. Accessibility modifications in Lower-income Owner-occupied housing.
8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
9. Homeownership opportunities, including, but not limited to, down payment assistance.
10. Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing projects, or matching funds invested by a county in an Affordable housing development project in a city within the county, provided that the city has made an equal or greater investment in the project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an Affordable housing project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the Affordable housing project.
Requirements: In order to participate in the formula allocation, the City of Porterville is required to develop a five-year plan detailing the manner in which allocated funds will be used for eligible activities.
Plan: With City Council and the community’s input, it is recommended that the City of Porterville utilize the funds in the following manner:
I. §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
A. The City of Porterville plans to use PLHA funds for three (3) priorities, distributed over three (3) possible activities that assist persons who are experiencing homelessness or at risk of homelessness. §301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
CITY OF PORTERVILLE Page 3 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN B. The City of Porterville Plans on opening an RFP to allow agencies to apply for funding. There are three priorities identified (not listed in order of priority, numbering is only for identification purposes):
1. Provide operating costs for navigation centers
2. Provide operating costs for emergency shelters and/or bridge housing programs.
3. Support Permanent Housing Programs to provide operating costs for permanent supportive housing programs.
II. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
A. The City of Porterville will continue to prioritize investments that increase the supply of affordable housing for households under 60% AMI with PLHA funds. People experiencing homelessness, who are currently served by KTHA programs are typically under 30% Area Median Income (AMI); therefore, all the proposed priorities will serve households under 60% AMI.
III. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.
A. The City permits social service facilities, including emergency shelters, in the RM-3, CMX, D-MX, DRM-2, and DRM-3 zoning districts via a conditional use permit. Further, social service facilities are allowed by right in the CR and CG zone districts.
B. The City permits transitional and supportive housing in all zoning districts that allow residential uses, subject only to the restrictions that would apply to a residential use of the same type. Section 301.22 of the City’s Development Ordinance clarifies this accommodation.
C. Housing Element Goals consistent with the PLHA program priorities.
1. Goal 2: Expand the City’s low- and moderate-income housing opportunities.
• Policy 2.5 - The City will pursue local, state, and federal funding assistance that is appropriate to Porterville’s needs to expand affordable housing opportunities for low- and moderate-income households
2. Goal 3: Address the housing needs of special populations, including seniors, female-headed households, persons with disabilities, first- CITY OF PORTERVILLE Page 4 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN time homebuyers, large families, and homeless individuals and families.
• Policy 3.1 - The City will maintain an adequate supply of appropriately designated land for special needs housing, including seniors, disabled persons, large households,
farmworkers, the homeless, and transitional persons.
• Policy 3.2 - The City will encourage the development and rehabilitation of housing that is accessible to persons with disabilities.
• Policy 3.3 - The City will pursue land use policies that allow small residential developments and individual housing units meeting special needs to be integrated into existing neighborhoods and new residential developments.
• Policy 3.4 - The City will work with surrounding jurisdictions to address the needs of transient homeless persons on a regional basis.
• Policy 3.5 - Continue to participate in the Kings/Tulare County Continuum of Care (“the Alliance”) and work with adjacent jurisdictions to develop additional shelter opportunities.
IV. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
V. §302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity.
(This portion of the plan is being proposed to be amended as follows (Attachment 1 budget summary provided for further clarification) A. Priority 1: Navigation Center:
1. Operating costs for a Navigation Center: PLHA funds would be used for operation costs associated with a new or existing Navigation Center. The Navigation Center would serve as a central location for people who are experiencing homelessness to connect to services CITY OF PORTERVILLE Page 5 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN to help them obtain housing or overcome barriers in obtaining housing.
B. Priority 2: Emergency Shelter
1. Operating costs for an Emergency Shelter: PLHA funds would be used for operating costs needed to run an emergency shelter. This will assist in ensuring that low barrier beds for people who have been identified by the local Continuum of Care on Homelessness, the Kings/Tulare Homeless Alliance (KTHA) continue to be available.
KTHA currently uses a vulnerability index to prioritize housing for people experiencing homelessness. Additionally, using a coordinated entry system, KTHA, is able to make referrals form one database, in order to have a streamlined application and referral system between agencies who serve people experiencing
homelessness.
2. The City would consider Operating costs for a bridge housing beds, leading to permanent housing: The City plans on working with eligible non-profits who provide bridge housing programs to help cover some gaps in operational financing, allowing them to continue providing housing to program participants that are currently working on permanent housing solutions.
C. Priority 3: Permanent Housing:
1. The City would consider Operating costs for Permanent Supportive Housing (PSH) Programs: The City plans on working with eligible non-profits and/or affordable housing developers who provide services to existing PSH programs to help cover some gaps in operational financing/or provide required match for funding, allowing them to continue providing housing to program participants that are currently receiving PSH housing vouchers. This would include increasing the percentage of PLHA funds in years 4 and 5 to include operating expenses for multi-family housing with units dedicated to people experiencing homelessness. This will assist in ensuring that PSH units created for people experiencing homelessness, have the necessary case management to provide PSH units with a connection to supportive services.
Complete the table below for each proposed Activity to be funded with 2020-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
CITY OF PORTERVILLE Page 6 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN VI. §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
Within 6 months after award is received:
• Create, publish and award and RFP offering an opportunity to fund an eligible entity to apply for PLHA funds to be used on one or more of the priorities identified in the plan.
• Enter into agreement (s) to execute each program
Monthly:
• Monitor progress
• Obtain monthly accomplishment data from subrecipients Yearly:
• Complete yearly accomplishment report
• Apply for subsequent year funding to execute 5-year Plan
N/A N/A N/A N/A
117
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed Activity
(55 years required for rental
housing projects)
N/A N/A N/A N/A N/A N/A N/A N/A
10 5 15 10
0 §302(c)(4)(E)(ii) Projected Number of
Households Served 5 15 8 5 15 9 5 15
N/A N/A N/A N/A
TOTAL
§302(c)(4)(E)(ii) Unmet share of the
RHNA at AMI Level
Note: complete for years 2020,
2021, 2022 only
N/A N/A N/A N/A N/A N/A N/A N/A
30% 30% 30% 30% §302(c)(4)(E)(ii) Area Median Income
Level Served 30% 30% 30% 30% 30% 30% 30% 30%
10% 60% 25% 10% §302(c)(4)(E)(i) Percentage of Funds
Allocated for the Proposed Activity 62% 25% 8% 61% 25% 9% 60% 25% Supportive
/Case
Managem
ent
Services
Emergenc
y Shelter
Operating
Navigation
Center
Operating
Supportive
/Case
Managem
ent
Services
Type of Activity for Persons
Experiencing or At Risk of
Homelessness
Emergenc
y Shelter
Operating
Navigation
Center
Operating
Supportive
/Case
Managem
ent
Services
Emergenc
y Shelter
Operating
Navigation
Center
Operating
Supportive
/Case
Managem
ent
Services
Emergenc
y Shelter
Operating
Navigation
Center
Operating
Funding Allocation Year 2020 2020 2020 2021 2021 2021 2022 2022 2022 2023 2023 2023 CITY OF PORTERVILLE Page 7 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN Attachment 1: Current and Amended Budget Summary
Categry of Funding 2019 2020 2021 2022 2023
Administration 5% 5% 5% 5% 5% 5%
Navigation Center 25% 25% 25% 25% 25% 25%
Emergency Housing & Bridge Housing 60% 60% 50% 50% 50% 54% Permanent 10% 10% 20% 20% 20% 16%
PSH Operations 10% 10% 20% 20% 20% 16%
- - - - - 0%
100% 100% 100% 100% 100% 100%
Categry of Funding 2019 2020 2021 2022 2023
Administration 5% 5% 5% 5% 5% 5%
Navigation Center 25% 25% 25% 25% 25% 25%
Emergency Housing & Bridge Housing 60% 62% 61% 60% 60% 61% Permanent 10% 8% 9% 10% 10% 9%
PSH Operations 10% 8% 9% 10% 10% 9%
- - - - - 0%
100% 100% 100% 100% 100% 100%
Current Plan (%)
5-YR TOTAL
Amendment 2 (%)
5-YR TOTAL
Category of Funding 2019 2020 2021 2022 2023
Administration $ 17,137.70 $ 26,637.25 $ 29,313.50 $ 14,692.00 $ 15,045.75 $ 102,826.20 Navigation Center $ 85,688.50 $ 133,186.25 $ 146,567.50 $ 73,460.00 $ 75,228.75 $ 514,131.00 Emergency Housing & Bridge Housing $ 205,652.40 $ 319,647.00 $ 293,135.00 $ 146,920.00 $ 150,457.50 $ 1,115,811.90 Permanent $ 34,275.40 $ 53,274.50 $ 117,254.00 $ 58,768.00 $ 60,183.00 $ 323,754.90 PSH Operations $ 34,275.40 $ 53,274.50 $ 117,254.00 $ 58,768.00 $ 60,183.00 $ 323,754.90 Flex Fund-to support PSH & RR $ - $ - $ - $ - $ - $ -
Rapid-Rehousing Rental Assistance & Operations $ - $ - $ - $ - $ - $ - $ 342,754.00 $ 532,745.00 $ 586,270.00 $ 293,840.00 $ 300,915.00 $ 2,056,524.00 Category of Funding 2019 2020 2021 2022 2023
Administration $ 17,137.70 $ 26,637.25 $ 29,313.50 $ 14,692.00 $ 15,045.75 $ 102,826.20 Navigation Center $ 85,688.50 $ 133,186.25 $ 146,567.50 $ 73,460.00 $ 75,228.75 $ 514,131.00 Emergency Housing & Bridge Housing $ 205,652.40 $ 330,301.90 $ 357,624.70 $ 176,304.00 $ 180,549.00 $ 1,250,432.00 Permanent $ 34,275.40 $ 42,619.60 $ 52,764.30 $ 29,384.00 $ 30,091.50 $ 189,134.80 PSH Operations $ 34,275.40 $ 42,619.60 $ 52,764.30 $ 29,384.00 $ 30,091.50 $ 189,134.80 $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 342,754.00 $ 532,745.00 $ 586,270.00 $ 293,840.00 $ 300,915.00 $ 2,056,524.00 Current Plan ($)
5-YR TOTAL
Amemdment 2 ($)
5-YR TOTAL
CITY OF PORTERVILLE Page 8 of 8
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FIVE YEAR PLAN Attachment 2: Summary of Public Comments Received at May 7, 2024, Public Hearing
• Brock Neeley, Porterville, commended Director Calderon and her staff in Community Development for the work being done with regard to housing.
Item No. 8.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Authorization to Execute Consultant Agreement - Construction Management and Inspection Services for the Community Center & Park Project
SOURCE: Engineering and Project Management
COMMENT: At its meeting on February 4, 2025, the City Council authorized staff to begin negotiations for a scope and services contract with 4Creeks, Inc. for the construction management and inspection services for the Community Center and Park Project. The consultant services include on-site project management, inspection services (including specialty inspections as required), construction surveying, materials testing and quality control, labor compliance, and reporting for the project.
Staff was able to negotiate the contract in the amount of $2,168,695.
The overall size, breadth of services and experience required, and the duration of the construction process were all considered during the negotiation process. Funding for this contract is included in the overall construction total of $19,987,445 reported in the construction contract award.
RECOMMENDATION: That the City Council:
1. Authorize the Engineering & Project Management
Director to execute the Consultant Service Agreement for the Construction Management and Inspection Services for the Community Center & Park Project to 4Creeks, Inc in the amount of $2,168,695; and
2. Authorize progress payments up to one hundred percent (100%) of the contract amount.
ATTACHMENTS: 1. Locator Map
2. Service Agreement
Appropriated/Funded:
Review By:
Department Director:
Item No. 8.
Javier Sanchez, Engineering & Project Management Director Final Approver: Jason Ridenour, Interim City Manager
LOCATION MAP
NOT TO SCALE
NOT TO SCALE
VICINITY MAP
65 190
PROJECT AREA
OLIVE AVE
PLANO ST
PROSPECT ST
MAIN ST
HENDERSON AVE
MORTON AVE MAIN ST JAYE ST
DATE AVE
DOWNTOWN
TULARE RIVER
NEWCOMB ST
PROJECT AREA
65 MORTON AVE
HENDERSON AVE
OLIVE AVE MAIN ST VILLA ST PLANO ST
WESTFIELD AVE
FOURTH ST COMMUNITY CENTER AND PARK
PORTERVILLE, CA
CITY OF PORTERVILLE
Rev. 2013-02-19
SERVICE AGREEMENT
DATE: February 18, 2025
PARTIES: City of Porterville, a California municipal corporation, hereinafter referred to as "CITY"; and 4Creeks, Inc. hereinafter referred to as "CONSULTANT".
RECITALS: CITY has undertaken a project on which it is seeking assistance from CONSULTANT. Said project which will hereinafter be referred to as "project" is described as follows:
Project Name: Construction Management and Inspection Services for the Community Center & Park Project Description of Project: In general, CONSULTANT to provide construction management and inspection services for the Community Center & Park Project per the approved project scope.
IN CONSIDERATION OF MUTUAL COVENANTS AND AGREEMENTS HEREINAFTER set forth the parties hereto do contract and agree as follows:
SECTION 1. CONTRACT SERVICES:
CONSULTANT hereby agrees to provide the following services and materials, in a timely manner as described/defined in the respective task order.
SECTION 2. PAYMENT:
In consideration for said services and materials, CITY shall pay CONSULTANT on a time and materials basis not to exceed Two Million One Hundred Sixty-Eight Thousand Six Hundred NinetyFive Dollars and Zero Cents ($2,168,695).
TIME OF PAYMENT: Progress payment requests shall be submitted by the 25th of each month.
CONSULTANT should receive payment within 45 days of the date the bill is received.
SECTION 3. COMPLETION DATE:
The services to be performed by CONSULTANT will be commenced upon execution of this agreement and all “work directives” shall be completed as agreed upon in the project specific task order. In the case of ongoing testing and results protocol, the CONSULTANT shall submit results as required to CITY, State and/or Federal governing agencies.
SECTION 4. FAMILIARITY WITH PROJECT:
CONSULTANT certifies and agrees that it is fully familiar with all of the details of the project required to perform its services. CONSULTANT agrees it will not rely upon any opinions and representations of CITY unless CITY is the only available source of said information.
SECTION 5. INDEPENDENT CONTRACTOR:
It is expressly understood that CONSULTANT is entering into this contract and will provide all services and materials required hereunder as an independent contractor and not as an employee of CITY.
CONSULTANT specifically warrants that it will have in full force and effect, valid insurance covering:
(i) Full liability under worker's compensation laws of the State of California; and (ii) Bodily injury and property damage insurance in the amount not less than Two Million Dollars ($2,000,000) per occurrence; and
(iii) Errors and Omissions insurance of Two Million Dollars ($2,000,000) minimum per occurrence, if deductible for Errors and Omissions insurance is Fifty Thousand Dollars ($50,000) or more, the City may require a Surety Bond for the deductible; and (iv) Automotive liability in the amount not less than Two Million Dollars ($2,000,000) per occurrence; fully protecting CITY, its elected and appointed officers, employees, agents Service Agreement
and assigns, against all claims arising from the negligence of CONSULTANT and any injuries to third parties, including employees of CITY and CONSULTANT. (v) To the fullest extent permitted by law, and subject to California Civil Code Sec 2782.8, CONSULTANT agrees to indemnify, including cost to defend, City, its elected and appointed officers and employees, from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant and its employees or agents in the performance of services under this contract, but this indemnity does not apply to liability for damages arising from the sole negligence, active negligence, or willful acts of City; and does not apply to any passive negligence of the City unless caused at least in part by Consultant. City agrees that in no event shall the cost to defend charged to Consultant exceed Consultant’s proportionate percentage of fault. However, if one or more defendant/s is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the Consultant shall meet and confer with other parties regarding unpaid defense costs and reallocate as allowed by law or stature. This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.
SECTION 6. WORKMANSHIP AND MATERIALS:
Every part of the work herein described shall be executed in a professional manner with competent, experienced personnel. Finished or unfinished material prepared under the agreement, prepared by CONSULTANT, shall become property of CITY. CONSULTANT hereby warrants that any materials prepared under this agreement shall be fit for the intended use contemplated by the parties.
SECTION 7. ASSIGNMENT OF CONTRACT:
It is acknowledged by the parties that CITY has entered into this contract with the express understanding that CONSULTANT will perform all work. CONSULTANT shall not, without the written consent of CITY, assign, transfer or sublet any portion or part of this work, nor assign any payments to others.
SECTION 8. AFFIRMATIVE ACTION.
CONSULTANT will not discriminate against any employee, or applicant for employment as required by applicable Federal and State law.
SECTION 9. CONFLICT OF INTEREST CODE:
CONSULTANT agrees to comply with the regulations of CITY’S “Conflict of Interest Code.” Said code is in accordance with the requirements of the Political Reform Act of 1974.
CONSULTANT covenants that it presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of service required hereunder. The term "conflict" shall include, as a minimum, the definition of a "conflict of interest" under the California Fair Political Practices Act and the City of Porterville Conflict of Interest Code, as that term is applied to consultants.
SECTION 10. TERMINATION:
Either party for just cause may terminate this contract by giving seven (7) days written notice to the other party. Upon termination by CITY, CITY shall be relieved of any obligation to pay for work not completed including profit and overhead. CONSULTANT may be entitled to just and equitable compensation for satisfactory work completed, except CITY can withhold damages incurred as a result of Service Agreement
the termination.
SECTION 11. ENTIRE CONTRACT:
It is understood and agreed that this Service Agreement represents the entire Agreement between the parties. Should it be necessary to institute legal proceedings to enforce any and all of the covenants and conditions of this Agreement, the prevailing party shall be entitled to recover attorneys’ fees and costs.
SECTION 12. DISPUTES; VENUE:
If either party initiates an action to enforce the terms hereof or declare rights hereunder, the parties agree that this Agreement is entered into and is to be performed in Tulare County, California.
CONSULTANT hereby waives any rights it might have to remove any such action pursuant to California Code of Civil Procedure Section 394.
SECTION 13. ESTIMATES AND PROJECTIONS:
In providing opinions of cost, financial analyses, economic feasibility projections, schedules, and quantity and/or quality estimates for potential projects, ENGINEER has no control over cost or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions; time or quality of performance of third parties; quality, type, management, or direction of operating personnel; the incoming water quality and/or quantity; the way CITY’s plant(s) and/or associated processes are operated and/or maintained; and other economic and operational factors that may materially affect the ultimate project elements, including, but not limited to, cost or schedule. Therefore, ENGINEER makes no warranty that CITY’s actual project costs, financial aspects, economic feasibility, schedules, and/or quantities or quality realized will not vary from ENGINEER’s opinions, analyses, projections, or estimates.
SECTION 14. WARRANTIES, GUARANTEES AND CONSEQUENTIAL DAMAGES:
The ENGINEER shall not be responsible for warranties, guarantees, fitness for a particular purpose, breach of fiduciary duty, loss of anticipated profits or for economic, incidental, liquidated, or consequential damages to the CITY or any third party arising out of breach of contract, delay, termination, or for any other reason whatsoever. Additionally, ENGINEER shall not be responsible for acts and decisions of third parties, including governmental agencies, other than ENGINEER’s subconsultants, that impact project completion and/or success.
SECTION 15. THIRD PARTIES:
The services to be performed by ENGINEER are intended solely for the benefit of the CITY. No person or entity not a signatory to this Agreement shall be entitled to rely on the ENGINEER's performance of its services hereunder, and no right to assert a claim against the ENGINEER by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Agreement or the performance of the ENGINEER's services hereunder.
SECTION 16. USE AND REUSE:
Documents, including drawings and specifications, prepared by ENGINEER pursuant to this Agreement are not intended or represented to be suitable for reuse by CITY or others for this Project or on any other project. Any reuse of completed documents or use of partially completed documents without written verification or concurrence by ENGINEER for the specific purpose intended will be at CITY's sole risk and without liability or legal exposure to ENGINEER.
Service Agreement
IN WITNESS WHEREOF, the parties have executed this Service Agreement on the date and year first above written.
CITY OF PORTERVILLE CONSULTANT
By By
Date Date
Item No. 9.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Approval for Community Civic Event - Summit Collegiate High School - Pi Day Pi K Fun Run - March 8, 2025
SOURCE: Finance
COMMENT: Summit Collegiate High School is requesting approval to hold the "Pi Day Pi K Fun Run" event on Saturday, March 8, 2025, from 8:00 AM to 10:00 AM, starting and finishing at Summit Collegiate High School. This is a fundraising event for the STEM scholarship program and will celebrate Pi Day with a 3.14-kilometer run. The event sponsor is requesting approval to utilize the sidewalks at Redwood Street from Summit Collegiate High School to W. Thurman Ave., W. Thurman Ave. from Redwood Street to N. Westwood Street, N. Westwood Street and Road 222 from W. Thurman Ave. to Olive Ave., Olive Ave. from N.
Westwood Street to Road 222, as indicated on the attached map.
Participants will also utilize the school's parking lot for the duration of the event. No outside amplifier permit is requested.
This request is made under the Community Civic Events Ordinance No. 1326, as amended. The Application has been routed according to the Ordinance regulations and reviewed by all City departments involved. All requirements and restrictions are listed on the attached Application and Agreement, Exhibit A and Exhibit B.
RECOMMENDATION: That the City Council approve the Community Civic Event Application submitted by Summit Collegiate High School to hold the "Pi Day Pi K Fun Run" event on Saturday, March 8, 2025, subject to the requirements and restrictions
contained in the Application and Agreement, Exhibit A and Exhibit B.
ATTACHMENTS: 1. Community Civic Event Application and Agreement, Exhibit A, Exhibit B, Map, Certificate of Liability
Insurance and Flyer.
Appropriated/Funded:
Item No. 9.
Review By:
Department Director:
Janie Rodriguez, Finance Director
Final Approver: Jason Ridenour, Interim City Manager
Item No. 10.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Status and Review of Declaration of Local Flood Emergency SOURCE: City Manager's Office
COMMENT: On March 13, 2023, Mayor Martha A. Flores in conjunction with the Acting City Manager Patrice Hildreth declared the existence of a local emergency within the City of Porterville. Said Declaration was made pursuant to Chapter 9 of the Porterville Municipal Code, and in response to the increasing threat to life and property in the city caused by a series of storm systems striking California and in particular the Porterville area, impacting Success Lake and significantly increasing flows of the Tule River. Pursuant to the California Emergency Services Act (California Government Code 8558 et seq.), emergency declarations must be ratified by the governing body within seven days of being declared. At its Special Meeting on March 17, 2023, the City Council acted to ratify the Declaration of Local Emergency. The Act also requires that the emergency declaration be renewed every sixty (60) days to remain in effect, which at its meeting on February 04, 2025, the Council reviewed and acted to renew the emergency declaration. Staff continues to work with FEMA for resolution of the City's claims and will continue to work to identify a timeline and critical path forward.
Chronology:
On March 10, 2023, due to the volume of water added to Success Lake from significant storm activity, Tulare County Sheriff Mike Bourdreaux issued an Evacuation Warning for both the north and south sides of the Tule River, and the Tulare County Office of Emergency Services (TCOES) established a Temporary Evacuation Point (TEP) and Emergency Shelter in the gymnasium at Porterville College.
On March 15, 2023, due to the water level of Success Lake rising to the point of running over the spillway of the Richard L. Schafer Dam, Sheriff Boudreaux issued a Mandatory Evacuation Order for the residences, businesses and structures between Schafer Dam and Road 284, east of the city of Porterville. On March 18, 2023, due to water levels dropping on the Tule River, Sheriff Boudreaux reduced the Mandatory Evacuation Order back to an Evacuation Warning.
On March 15, 2023, due to rising flood waters, Sheriff Boudreaux issued a Mandatory Evacuation Order for the area between Olive Avenue Item No. 10.
(Avenue 152) to Avenue 144 and the Friant-Kern Canal and the Tule River and Westwood Street, west of the city of Porterville. On March 25, 2023, Sheriff Boudreaux reduced the Mandatory Evacuation Order back to an Evacuation Warning.
On March 15, 2023, due to rising water levels of the Tule River, City Public Works Department staff took extraordinary measures to protect the neighborhood north of River Springs Drive, avoiding potentially catastrophic flooding of the area.
On March 16, 2023, due to the historic water levels and flows of the Tule River causing erosion to the river banks, Police Chief Jake Castellow issued a Mandatory Evacuation Order for eight residences along Rio Vista Avenue, providing information on the TEP and Emergency Shelter established at Porterville College. City Public Works Department staff took extraordinary measures over the next several days to mitigate and protect the river banks from affecting the residences. On March 24, 2023, Chief Castellow reduced the Mandatory Evacuation Order of the eight residences back to an Evacuation Warning.
On March 19, 2023, due to continued erosion of the banks of the Tule River and the performance of immediate necessary mitigation efforts by Public Works Department personnel, Chief Castellow issued a Mandatory Evacuation Order for both the north and south banks of the Tule River within City limits (not including permanent structures with a designated address), and provided information on the TEP and Emergency Shelter established at Porterville College. The Public Works Department continues to work diligently in shoring the banks of the Tule River.
To accommodate upcoming ceremonies and events in the gymnasium at Porterville College, the TEP and Emergency Shelter at the College closed at noon on April 11, 2023, and thirty (30) individuals were successfully transitioned to the new TEP at the Porterville Army National Guard Armory. A Special Meeting of the Council was scheduled for April 14, 2023, to consider a draft License agreement for the City's temporary use of the State facility. The American Red Cross continued to provide shelter services at the TEP, but transitioned out on May 5, 2023. With the authority granted to the City Attorney and City Manager at its meeting on April 18, 2023, the City and County drafted a Memorandum of Understanding (MOU) in an effort to continue TEP shelter services until May 5, 2023, while the Mandatory Evacuation Order remained in place along the banks of the Tule River in city limits.
On April 14, 2023, the County transmitted a letter to the California Governor's Office of Emergency Services (Cal OES), requesting continued financial support for the Armory TEP, which the County reported that Cal OES did not approve. At its meeting on July 11, 2023, the County Board of Supervisors approved the MOU for TEP shelter services between the City and the County, retroactive from April 11, Item No. 10.
2023 to May 5, 2023.
Given the lack of continued financial support by Cal OES, the County notified the City that it would discontinue its support of the Armory TEP at noon on May 5, 2023, and American Red Cross would vacate the facility as well, leaving the City alone to determine the function of the Armory TEP after noon on May 5th. The significant threat of local emergency continued to exist with the estimated over three hundred percent (300%) of normal snow pack in the Sierra Nevada mountains and the potential for a warm storm or heat wave this Spring to again inundate the Tule River, described as a "loaded locomotive at the top of the hill." Given the forecasts of potential widespread flooding damage to west Tulare County and significant portions of Kings County later this Spring and early Summer, Red Cross representatives strongly believe they will be returning to the Armory TEP and other Tulare County locations (e.g. Porterville Developmental Center) to assist those displaced from homes due to flooding. Until such time that Cal OES makes the determination that emergency conditions again exist in Tulare County, the Council was left to determine if local emergency conditions existed to continue operating the Armory TEP, which expenditures would not be reimbursable given the lack of approval by Cal OES.
Given the continued mandatory evacuation order along the Tule River in city limits and the legal implications of the Martin v. Boise federal 9th Circuit Court of Appeals decision (2018), and the announced departure of the American Red Cross and County support at noon on May 5, 2023, City staff developed an operational plan for the Armory TEP, cognizant of the lack of federal and State reimbursement of costs. As of April 27, 2023, eighteen (18) individuals were receiving shelter services at the Armory TEP, with most individuals only at the facility in the evening.
Given the limited daytime TEP population, and daily meal services provided at the nearby Porterville Welcome Center, staff recommended to limit the Armory TEP hours from 7:00 P.M. to 7:00 A.M. daily, providing temporary staffing of two individuals (including a security guard). Temporary staffing had been quoted at $25 per hour, for a daily expense of $600 (or $18,000 per month). At its meeting on May 2, 2023, the Council authorized the continued operation of the Armory TEP for a 12-hour operational period over the evenings, and also directed that the Armory restrooms and shower facilities be used by the individuals at the TEP, which although not ADA-compliant, are not required for non-reimbursable shelter activities while under a Declaration of Local Emergency. The contract for the on-site mobile shower and portable restroom facilities that are ADA-compliant expired on May 11, 2023, which the rental cost was approximately $18,000 per month.
However, the City Attorney recommended maintaining a single ADAportable restroom at the facility. Beginning at noon on May 5, 2023, the City assumed administrative and financial responsibility for the Armory, which has established operational hours of 8:00 P.M. to 8:00 A.M. and averaged twenty (20) individuals each evening (please see attached Item No. 10.
daily census).
On May 4, 2023, the City received an updated draft License agreement for the use of the Armory, proposing a 1-year lease for exclusive use by the City effective May 5, 2023, through May 4, 2024. The draft agreement proposes no fee for the use of the facility, but that the City assume responsibility for the facility's utilities. On Monday, May 8th, the last remaining Army personnel left the facility, with the City now having complete exclusive use of the facility. At its meeting on May 16, 2023, the Council approved the updated draft License agreement for the 1- year exclusive use of the Armory.
On March 31, 2023, Governor Newsom issued Executive Order N-6-23 to support Tulare Lake Basin flood response, which streamlines State preparation, response and recovery actions and supports local flood response efforts and assist in preparing communities for the impacts of snowmelt runoff in the months ahead.
On April 3, 2023, President Biden granted a Major Disaster Declaration for the State of California, triggering the release of Federal funds to help individuals and communities recover from Severe Winter Storms, Straight-line Winds, Flooding, Landslides and Mudslides that occurred February 21, 2023, and continuing. Monterey and Tulare counties were designated in the Major Disaster Declaration for both Individual and Public Assistance, as well as Hazard Mitigation. On July 14, 2023, the Federal Emergency Management Agency (FEMA) made the
determination to close the incident period effective July 10, 2023.
Although the incident period has been closed, businesses and individuals may still apply for federal disaster assistance through September 1, 2023.
On May 17, 2023, Governor Newsom issued Executive Order N-7-23 to support Tulare Lake Basin flood response, which extends flood diversion and groundwater recharge flexibilities implemented for the Tulare Lake Basin, including Kern River floodwater to be allowed into the California Aqueduct.
On August 4, 2023, Governor Newsom issued Executive Order N-10-23 to streamline levee repairs and debris removal to help local communities recover from flooding and prepare for the next wet season.
At its meeting on April 4, 2023, the Council approved Resolution No. 15- 2023, which authorized the appropriation of funds from the Catastrophic/Emergency Reserve Fund for the costs associated with the response to the local emergency including personnel, equipment, services and other necessary expenditures. At its meeting on April 18, 2023, the Council approved two emergency expenditures that exceeded $5,000 in their acquisition, which included additional Water Rescue Equipment for the Fire Department ($6,417.70) and the 30-day rental of two mobile shower/restroom units ($13,151) for the Armory TEP due to the facility's restrooms and showers not being compliant with the Item No. 10.
Americans with Disabilities Act (ADA). At its meeting on May 2, 2023, the Council approved two additional emergency expenditures that exceeded $5,000 in their acquisition, which included a trailer-mounted 6" dewatering and sewage pump ($77,396.67), and local trucking services of riprap material ($5,436.00), both for the Public Works Department.
In support of two private personnel providing nightly security at the Armory as it continues to function as a temporary evacuation point and shelter, City staff has secured TopKnotch Security, Inc. as the security services provider. TopKnotch provided an agreement for security services for approximately $18,000 per month (2 personnel at $25/hour for 12 hours per day for 30 days per month), which the Council approved at its meeting on June 6, 2023. Due to violations by TopKnotch Security of its agreement with the City for security services, City staff terminated the agreement effective immediately on Friday, July 14, 2023, causing the Police Department to provide security services at the Armory on Friday, July 14 through Sunday, July 16, 2023. Beginning on Monday, July 17, 2023, Good Guard Security, Inc. began providing security services, which at its meeting on July 18, 2023, the Council approved an agreement for security services for approximately $21,000 per month (2 personnel at $28.95/hour for 12 hours per day for 30 days per month).
RECOMMENDATION: That the City Council receive the report of status and review of the Declaration of Local Emergency and determine the need exists to continue said Declaration.
ATTACHMENTS: 1. Declaration of Local Emergency - March 13, 2023
2. Resolution No. 11-2023
3. Rio Vista Avenue Mandatory Evacuation Order -
March 16, 2023
4. Tule River Banks Mandatory Evacuation Order -
March 19, 2023
5. Governor Newsom Executive Order N-6-23
6. Governor Newsom Executive Order N-7-23
7. Governor Newsom Executive Order N-10-23
8. Federal Disaster Declaration Fact Sheet - April 3,
2023
9. License to Use State Military Property - April 14, 2023
10. City and County Memorandum of Understanding for
Shelter Support
11. County of Tulare CalOES Shelter Support Request
Letter - April 14, 2023
12. License to Use State Military Property - May 16, 2023
13. Federal Disaster Declaration Notice - July 14, 2023
14. Resolution No. 15-2023
15. Rescue Source & Rescue 3 Invoice: Water Rescue
Item No. 10.
Equipment
16. Royal Restrooms Invoice: Mobile Shower-Restroom
Units
17. Rain for Rent Pump Invoice
18. Mike Clark Trucking Invoice
19. TopKnotch Security, Inc. Agreement
20. Good Guard Security, Inc. Agreement
21. Municipal Code Chapter 9 - Civil Defense and
Disaster
22. California Government Code 8558
23. Armory Census Table
Appropriated/Funded:
Review By:
Department Director:
Jason Ridenour, Interim City Manager
Final Approver: Jason Ridenour, Interim City Manager
Police Department
350 North "D" Street
Porterville, CA 93257
(559) 782-7400/FAX (559) 784-1070
www.PortervillePolice.com
Porterville Police Department Mission Statement
Jake Castellow
Chief of Police
The members of the Porterville Police Department are committed to the safety and security of the community while providing quality service with excellence, honesty and integrity.
Police Department
350 North "D" Street
Porterville, CA 93257
(559) 782-7400/FAX (559) 784-1070
www.PortervillePolice.com
Porterville Police Department Mission Statement
Jake Castellow
Chief of Police
The members of the Porterville Police Department are committed to the safety and security of the community while providing quality service with excellence, honesty and integrity.
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-6-23
WHEREAS on March 1, 2023, March 8, 2023, March 12, 2023, March 14, 2023, and March 28, 2023, I proclaimed a State of Emergency to exist in 47 counties, cumulatively, as a result of a series of ongoing winter storms that initially struck California beginning in late February and continue to significantly impact the counties identified in my Proclamations; and WHEREAS the State has experienced over a dozen atmospheric rivers since December 2022, resulting in compounding and cumulative impacts across California, including what are expected to be record amounts of snow in the Sierra Nevada, in particular in the southern Sierra, and current and forecasted precipitation are expected to add to historic snowpack levels already composed of several million acre-feet of snow water content; and WHEREAS reservoirs into which the Sierra snowpack runoff would flow are already impacted by runoff, which is expected to greatly exceed available storage capacity in the reservoirs in and around the Tulare Lake Basin and the San Joaquin River Basin, and much of the ground in the area has reached saturation due to the series of ongoing winter storms; and WHEREAS the Tulare Lake Basin is the terminal point for the Kings, Kaweah, Tule, and Kern Rivers, and several smaller streams, meaning that water from additional expected rains and Sierra snowpack runoff that cannot be stored in reservoirs or absorbed into the ground will flow into the basin; and WHEREAS recent storms have already caused flooding in the Tulare Lake Basin, leading to emergency rescues and evacuation orders in Allensworth, Alpaugh, and other communities in Tulare and Kings Counties, and leading to dozens of levee breaks and local agencies directing strategic cuts to canals and levees to prevent further flooding of communities; and WHEREAS runoff from the snowpack caused by the winter storms could result in flood conditions in the Tulare Lake Basin resembling those last experienced in the historic floods of 1969 and 1983, following historic snowpacks in those years; and
WHEREAS local flood control districts and other local governments generally have flood control responsibility in the Tulare Lake Basin, but state agencies such as the California Department of Forestry and Fire Protection (CAL FIRE), the California Department of Water Resources, and the Governor’s Office of Emergency Services are actively engaged in supporting this local effort, and state agencies will continue to provide technical advice and other resources and support as needed, with a particular priority on protecting the lives and health of local communities; and
WHEREAS stretches of the San Joaquin River have been or are at flood stage this spring, river stages are expected to stay high throughout the spring as snowpack melts, and multiple levee repairs are underway on the lower San Joaquin River; and
WHEREAS the Tulare Lake Basin is hydrologically connected to the San Joaquin River Basin and that connection has the potential to exacerbate the flood risk in the San Joaquin River Basin, and so further emergency response efforts may become necessary in the San Joaquin River Basin as well; and WHEREAS heavy accumulation of snowfall on the roof of Bear Valley Elementary School, located in Alpine County, currently renders instructional space unsafe for use; and
WHEREAS frequent flooding and flood evacuation orders have resulted in school closures and low student attendance in Pajaro Middle School, Hall District Elementary School and Ohlone Elementary, located in Pajaro Valley Unified School District in Santa Cruz County; and
WHEREAS it is critical that displaced students are back in school facilities as quickly as possible to ensure continuity in education; and WHEREAS the State of California and local governments, in collaboration with the Federal government, continue sustained efforts to respond to and mitigate the effects of these storms; and
WHEREAS on March 9, 2023, I requested a Presidential Emergency Declaration related to these late winter storms, which was expeditiously approved by President Joseph R. Biden, Jr.; and
WHEREAS on March 15, 2023, I requested the addition of 9 counties to the existing Presidential Emergency Declaration related to these late winter storms, which was expeditiously approved by the President; and
WHEREAS on March 28, 2023, I also requested the President issue a Major Disaster Declaration related to these late winter storms for counties that met the validated damage threshold; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this order would prevent, hinder, or delay the mitigation of the effects of these ongoing winter storms.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
1. All provisions contained in the above-referenced Proclamations of a State of Emergency shall remain in full force and effect.
2. To protect health, safety, and the environment, and to reduce the risks of local catastrophic flooding in the Tulare Lake Basin, Chapter 6 (commencing with section 1600) of Division 2 of the Fish and Game Code, and regulations adopted pursuant to that Chapter, are suspended for activities that meet all of the requirements in Paragraph
3. 3. The suspension created by Paragraph 2 shall apply to floodwater diversion, debris removal, and levee repair and breech in the Tulare Lake Basin, on the condition that the actions cease when the flood conditions have abated to the point there is no longer flooding outside of defined streambeds and levees. Additionally, the suspension created by Paragraph 2 shall apply to floodwater diversion only if all of the following additional conditions are met:
a. The diversion of floodwater from the Tulare Lake Basin or rivers or streams flooding the Tulare Lake Basin must occur between March 31, 2023, and August 1, 2023, for flood management purposes.
b. For diversions directly from rivers or streams, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that flows downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
c. For diversion of floodwaters in the Tulare Lake Basin (that is, waters no longer contained within a defined streambed or levee), a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that areas from which the floodwaters are diverted are either at imminent risk of flooding or already flooded, with potential or existing inundation of land, roads, or structures. d. Any water diverted is not diverted to and will not be applied to any area that has not been in active irrigated agricultural cultivation within the past three years, including grazing lands, annual grasslands, and natural habitats. This limitation does not apply to facilities already constructed for the purposes of groundwater recharge or managed wetlands.
4. In addition to the mandatory conditions set forth in Paragraph 3, any person conducting planned levee breaches or controlled inundation to prevent further catastrophic flooding pursuant to the suspension created by Paragraph 2 should take care, wherever feasible, to protect above-ground infrastructure and drinking water and wastewater infrastructure such as drinking water well field sites, wastewater discharge ponds, and other water resources that are necessary for the protection of human health and the recovery of impacted communities.
5. For purposes of conducting emergency flood preparation and response activities, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Secretary of the Natural Resources Agency concurs that local action is required, and (c) permits necessary to carry out actions under (a) and (b), Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division, are suspended to the extent necessary to address flood impacts in the Tulare Lake Basin.
6. To support adequate state staffing for all state agencies and departments with an assigned response and/or recovery role related to flooding in the Tulare Lake Basin, consistent with applicable federal law, work hour limitations for retired annuitants, permanent and intermittent personnel, and state management and senior supervisors are suspended. Furthermore, reinstatement and work hour limitations in Government Code sections 21220, 21224(a), and 7522.56(b), (d), (f), and (g), and the time limitations in Government Code section 19888.1 and California Code of Regulations, title 2, sections 300-303 are suspended. All other restrictions must be adhered to for retired annuitants. The Director of the California Department of Human Resources must be notified of any individual employed in state government pursuant to these suspensions. The suspension of statutes identified in this Paragraph shall also apply to local governments, as applicable, to ensure adequate staffing to appropriately respond to the flooding in the Tulare Lake Basin. Local governmental agencies shall notify the California Public Employees' Retirement System of any individual employed by an agency pursuant to this Paragraph.
7. The limitation for the period of employment for State Personnel Board emergency appointments, as provided in Government Code section 19888.1, is suspended for positions required for emergency response and/or recovery operations related to flooding in the Tulare Lake Basin.
The requirements and period of employment for such appointments will be determined by the Office of Emergency Services but shall not extend beyond the termination date of the State of Emergency.
8. To the extent the Alpine County Office of Education and Alpine County Unified School District are required to use temporary facilities such as the Alpine County Public Library due to extraordinary snowpack on the roof of Bear Valley Elementary School, rendering instructional space unsafe, the requirements of Education Code sections 17280, et seq., 17365, et seq., and Government Code sections 4453 and 14963 are suspended with respect to those temporary facilities. The requirements of the California Building Code (codified in Title 24 of the California Code of Regulations), as adopted and enforced by the local building and fire agencies with jurisdiction over the area, shall apply to these temporary facilities.
9. To the extent the Alpine County Office of Education and Alpine County Unified School District are required to temporarily use buildings, as defined in the California Building Code (California Code of Regulations, Title 24, Part 2, Chapter 2, section 202), such as the Alpine County Public Library due to extraordinary snowpack on the roof of the Bear Valley Elementary School, rendering instructional space unsafe, local planning and zoning regulations shall be suspended to allow immediate occupancy of such buildings for use as public school facilities. In addition, the requirements of the California Building Code, as adopted and enforced by the local building and fire agencies with jurisdiction over the area, shall apply, except that the requirements relating to Change of Use or Occupancy Classification in the California Building Code (California Code of Regulations, Title 24, Part 2, Chapter 1, section 111) shall not trigger immediate code upgrades, and a Certificate of Occupancy shall not be withheld for such immediate and temporary use of the facilities as a public school, as long as such facilities met building code requirements at the time of their construction, are accessible to individuals with disabilities, and are judged safe for use by the local building official.
10.Education Code section 60641(a) requiring that all pupils be administered academic assessments in mathematics, English language arts, and science, as provided for in Education Code section 60640, is suspended for the 2022-2023 school year for Pajaro Middle School, Hall District Elementary School and Ohlone Elementary School of the Pajaro Valley Unified School District, if a federal waiver is approved by the United States Department of Education.
I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.
IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 31st day
of March 2023.
________________________________
GAVIN NEWSOM
Governor of California
ATTEST:
________________________________
SHIRLEY N. WEBER, Ph.D.
Secretary of State
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-7-23
WHEREAS on March 1, March 8, March 12, March 14, March 28, April 20, and May 15, 2023, I proclaimed a State of Emergency to exist in 52 counties, cumulatively, as a result of a series of winter storms that initially struck California beginning in late February and continue to significantly impact the counties identified in my Proclamations; and
WHEREAS on March 31, 2023, I issued Executive Order N-6-23 to further bolster the emergency response to this Late Winter Storms event, particularly in the Tulare Lake Basin that continues to be plagued by historic flooding; and WHEREAS on April 21, May 10, July 8, and October 19, 2021, I proclaimed States of Emergency to exist due to drought conditions; and WHEREAS on March 10, 2023, I issued Executive Order N-4-23 to address evolving drought conditions due to the winter storms and to mitigate flooding by facilitating groundwater recharge; and
WHEREAS due to the complexity of the impacts from over a dozen Atmospheric River events since December 2022, including the accumulation of a record snowpack in the Sierra Nevada that is likely to yield record snowmelt runoff, especially in the Tulare Lake Basin, I previously issued Executive Orders identified herein to respond to and recover from the winter storms, and those orders now require updating in-light of the most recent runoff conditions and the State’s more robust and recent modeling of likely flood impacts; and WHEREAS the Tulare Lake Basin includes portions of Fresno, Kings, Tulare, and Kern counties and is the terminal point for the Kaweah, Tule, and Kern Rivers as well as a portion of the Kings River and several smaller streams, meaning that water from Sierra snowpack runoff that cannot be stored in reservoirs or absorbed into the ground will flow into the basin; and
WHEREAS the Tulare Lake Basin is hydrologically connected to the San Joaquin River Basin via the James Bypass and Fresno Slough and that connection has the potential to exacerbate the flood risk in the San Joaquin River Basin, and so further emergency response efforts may become necessary in the San Joaquin River Basin; and
WHEREAS stretches of the San Joaquin River, Chowchilla and Eastside Bypasses, San Joaquin River mainstem and tributaries (Fresno River, Chowchilla River, Merced River, Stanislaus River, and Tuolumne River, hereafter, San Joaquin River Tributaries), and Fresno Slough/James Bypass have been or are at flood stage this spring, river stages are expected to stay high or increase throughout the spring and summer as snowpack melts, and multiple levee repairs are underway on the lower San Joaquin River; and
WHEREAS the Kern River – California Aqueduct Intertie exists to move floodwaters safely from the Kern River into the California Aqueduct, and the Kern River Watermaster on May 10, 2023, requested the use of the Intertie to prevent Kern River floodwater from exacerbating flooding in the Tulare Lake Basin, and state agencies have begun actions to safely enable the diversion of these flood flows; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would prevent, hinder, or delay the mitigation of the effects of these ongoing winter storms.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
1. All provisions contained in the above-referenced Proclamations of a State of Emergency and Executive Orders shall remain in full force and effect except as modified in this Order.
2. Paragraph 2 of Executive Order N-6-23 is withdrawn and replaced by the following:
To protect health, safety, and the environment, and to reduce the risks of local catastrophic flooding in the Tulare Lake or San Joaquin River Basins, the following are suspended for activities that meet the requirements in Paragraph 3.
a. Chapter 6 (commencing with section 1600) of Division 2 of the Fish and Game Code, and regulations adopted pursuant to that Chapter; and
b. Division 13 (commencing with Section 21000) of the Public Resources Code, and regulations adopted pursuant to that division.
3. Paragraph 3 of Executive Order N-6-23 is withdrawn and replaced by the following, except that any diversion in the Tulare Lake Basin that is operational as of June 1, 2023, may continue to operate under Paragraph 3 of Executive Order N-6-23 until August 31, 2023:
The suspensions created by Paragraph 2 shall apply to floodwater diversion, floating vegetation and debris removal, and levee repair and breach, in the Tulare Lake or San Joaquin River Basins, on the condition that the actions cease when the flood conditions have abated to the point there is no longer a risk of, or existing, flooding causing inundation of land, roads, or structures at or downstream of the point of diversion.
4. Additionally, the suspensions created by Paragraph 2 shall apply to floodwater diversion only if all the following additional conditions are met:
a. Any diversion of floodwaters directly from the (i) Tulare Lake Basin or rivers or streams or bypasses flooding the Tulare Lake Basin or (ii) the San Joaquin River or San Joaquin River tributaries (including Fresno Slough and James Bypass) or San Joaquin River bypasses must occur between March 31, 2023, and August 31, 2023, for flood management purposes.
b. With respect to diversions of floodwaters directly from rivers or streams or bypasses, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice, that flows downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
c. With respect to diversions of floodwaters that are no longer contained within a defined streambed or levee, a local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice that areas from which the floodwaters are diverted are either at imminent risk of flooding or already flooded, with potential or existing inundation of land, roads, or structures, or are on lands inundated as a result of actions within subparagraph (a). d. Any floodwater diverted is not diverted to and will not be applied to:
i. Any barn, ponds, or lands to which manure or waste from an animal facility that generates waste from the feeding and housing of animals for more than 45 days per year in a confined area that is not vegetated are applied;
ii. Any agricultural field where pesticide or fertilizer application has occurred in the prior 30 days or in the period prohibited by applicable law, whichever is longer; iii. Any area that could cause damage to critical levees, infrastructure, wastewater and drinking water systems,
drinking water wells or drinking water supplies, or
exacerbate the threat of flood and other health and
safety concerns; or
iv. Any area that has not been in active irrigated agricultural cultivation within the past three years including grazing lands, annual grasslands, and natural habitats. This
limitation does not apply to facilities already constructed for the purposes of groundwater recharge or managed
wetlands.
e. With respect to diversions of floodwaters from waters tributary to the Sacramento and San Joaquin River Delta as defined in Water Code section 12220 (Delta), water rights holders are not making releases of stored water or reoperating facilities to provide flow for the purposes of meeting water quality control plan or endangered species requirements in the Delta at the time of the diversion.
f. With respect to diversions of floodwaters directly from the San Joaquin River or San Joaquin River Tributaries, the diversion uses:
i. either existing diversion infrastructure or temporary pumps; ii. no new permanent infrastructure or permanent
construction; and
iii. simple screens installed on temporary pump intakes to minimize the impacts of diversion to salmon and other
aquatic life.
5. Paragraph 4 of Executive Order N-6-23 is withdrawn and replaced by the following:
In addition to the mandatory conditions set forth in Paragraph 3, any person conducting planned levee breaches or controlled inundation to prevent further catastrophic flooding pursuant to the suspensions created by Paragraph 2 should, wherever feasible, protect aboveground infrastructure and water sources that are necessary for the protection of human health and the recovery of impacted communities.
6. Paragraph 5 of Executive Order N-6-23 is withdrawn and replaced by the following:
For purposes of conducting emergency flood preparation and response activities beyond those provided for in Paragraphs 2 and 3, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Secretary of the Natural Resources Agency concurs that local action is required, and (c) permits necessary to carry out actions under (a) and (b), Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division, are suspended to the extent necessary to address flood impacts in the Tulare Lake or San Joaquin River Basins.
7. Paragraph 6 of Executive Order N-6-23 is withdrawn and replaced by the following:
To support adequate state staffing for all state agencies and departments with an assigned response and/or recovery role related to flooding in the Tulare Lake or San Joaquin River Basins, consistent with applicable federal law, work hour limitations for retired annuitants, permanent and intermittent personnel, and state management and senior supervisors are suspended. Furthermore, reinstatement and work hour limitations in Government Code sections 21220, 21224(a), and 7522.56(b), (d), (f), and (g), and the time limitations in Government Code section 19888.1 and California Code of Regulations, title 2, sections 300-303 are suspended. All other restrictions must be adhered to for retired annuitants. The Director of the California Department of Human Resources must be notified of any individual employed in state government pursuant to these suspensions. The suspension of statutes identified in this Paragraph shall also apply to local governments, as applicable, to ensure adequate staffing to appropriately respond to the flooding in the Tulare Lake Basin. Local governmental agencies shall notify the California Public Employees' Retirement System of any individual employed by an agency pursuant to this Paragraph.
8. Paragraph 6 of Executive Order N-6-23 is withdrawn and replaced by the following:
The limitation for the period of employment for State Personnel Board emergency appointments, as provided in Government Code section 19888.1, is suspended for positions required for emergency response and/or recovery operations related to flooding in the Tulare Lake or San Joaquin River Basins. The requirements and period of employment for such appointments will be determined by the Office of Emergency Services, but shall not extend beyond the termination date of the State of Emergency.
9. Paragraph 3 of Executive Order N-4-23 is withdrawn and replaced by the following, except that any diversion that is operational as of June 1, 2023, may continue to operate under Paragraph 3 of Executive Order N-4-23 until August 31, 2023:
The suspensions created by Paragraph 2 of Executive Order N-4-23 shall apply to diversions of floodwaters as to which all the following conditions are met:
a. Diversions of floodwaters directly from rivers, streams, or bypasses must occur between March 10, 2023, and August 31, 2023, for flood management and associated groundwater recharge.
b. Diversions of floodwaters no longer contained within a defined streambed must prevent imminent risk of flooding or relieve flooding pressure from land, roads, or structures, already inundated, including as a result of actions within subparagraph (a).
c. A local or regional flood control agency, city, or county has given notice via its internet website, electronic distribution list, emergency notification service, or another means of public notice, that waters at or downstream of the point of diversion are at imminent risk of flooding and inundation of land, roads, or structures.
d. The diversions cease when the flood conditions have abated to the point there is no longer a risk of, or existing, flooding causing inundation of land, roads, or structures at or downstream of the point of diversion.
e. Any floodwater diverted is not diverted to and will not be applied to:
i. Any barn, ponds, or lands, to which manure or waste from an animal facility that generates waste from the feeding and housing of animals for more than 45 days per year in a confined area that is not vegetated are applied;
ii. Any agricultural field where pesticides or fertilizer application has occurred in the prior 30 days or in the period prohibited by applicable law, whichever is longer; iii. Any area that could cause damage to critical levees, infrastructure, wastewater and drinking water systems,
drinking water wells or drinking water supplies, or
exacerbate the threat of flood and other health and
safety concerns; or
iv. Any area that has not been in active irrigated agricultural cultivation within the past three years, including grazing lands, annual grasslands, and natural habitats. This
limitation does not apply to facilities already constructed for the purpose of groundwater recharge or managed
wetlands.
f. With respect to diversions of floodwaters from waters tributary to the Sacramento and San Joaquin River Delta (Delta) as defined in Water Code section 12220 (Delta), water rights holders are not making releases of stored water or reoperating facilities to provide flow for the purposes of meeting water quality control plan or endangered species supporting regulatory requirements in the Delta at the time of the diversion.
g. The diversion uses:
i. Either existing diversion infrastructure or temporary pumps; ii. Existing groundwater recharge locations, where available; iii. No new permanent infrastructure or permanent
construction; and
iv. Simple screens installed on temporary pump intakes to minimize the impacts of diversion to salmon and other
aquatic life.
h. The person or entity availing itself of suspensions created by Paragraph 2 of Executive Order N-4-23 files a preliminary report with the Water Board and any applicable Groundwater
Sustainability Agency (GSA) or GSAs for the basin, no later than 14 days after initially commencing diversion of flood flows for groundwater recharge, and a final report with the Water Board and any applicable GSA or GSAs for the basin no later than September 15, 2023. The preliminary and final reports required by this subparagraph shall:
i. Identify the person or entity utilizing the suspensions created by Paragraph 2 of Executive Order N-4-23;
ii. Identify the triggering condition from subparagraph (c) of this paragraph;
iii. Provide the GPS coordinates for the point of diversion, a map identifying the approximate area inundated by the
flood flows, and the corresponding assessor parcel
number(s);
iv. Identify the time when diversions of floodwaters to groundwater recharge commenced, and for final reports,
when diversions ceased; and
v. Provide an estimate, as of the report's date, of the amount of floodwaters diverted utilizing the suspensions created by Paragraph 2 of Executive Order N-4-23.
The Water Board shall post on its internet website all reports received pursuant to this subparagraph.
10. To mitigate the effects of the Late Winter Storms, including by reducing the risks of local catastrophic flooding in the Tulare Lake Basin, Part 2 (commencing with section 1200) of division 2 of the Water Code, exclusive of section 1225, and regulations adopted pursuant to that part, are suspended for diversions of flood flows into the Kern Intertie and ultimately into the California Aqueduct until August 31, 2023, such that applications and permits for water rights shall not be required for such diversions, nor shall such diversions create new water rights or modify existing water rights, to the extent applications or permits would have been required or water rights would have been affected absent this suspension.
11. The Department of Water Resources and State Water Resources Control Board shall (i) communicate to water systems and others any additional information or actions necessary for those systems and others to monitor and be prepared for the addition of Kern River floodwater in the California Aqueduct, and (ii) collaborate on longterm actions that align water rights and flood response, including actions that maximize in-basin groundwater recharge.
I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.
IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 17th day
of May 2023.
_________________________
GAVIN NEWSOM
Governor of California
ATTEST:
_____________________________
SHIRLEY WEBER, PH.D
Secretary of State
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-10-23
WHEREAS the State has experienced over thirty atmospheric rivers since December 2022, resulting in compounding and cumulative impacts across California, including record or near record amounts of snow in the Sierra Nevada;and
WHEREAS on January 4, 2023, I proclaimed a State of Emergency to exist in California as a result of severe winter storms related to an atmospheric river event beginning on December 27, 2022; and
WHEREAS on March 1, March 8, March 12, March 14, March 28, April 20, May 15, and June 16, 2023, I proclaimed a State of Emergency to exist in 53 counties, cumulatively, as a result of a series of winter storms that initially struc k California beginning in late February and continue to significantly impact the counties identified in my Proclamations; and
WHEREAS on April 21, May 10, July 8, and October 19, 2021, I proclaimed States of Emergency to exist due to drought conditions, and on February 13, 2023, I issued Executive Order N-3-23 and on March 10, 2023, I issued Executive Order N-4-23, to address evolving drought conditions due to the 2022-2023 Winter Storm Events and mitigate flooding by facilitating groundwater recharge; and
WHEREAS on March 31, 2023, I issued Executive Order N-6-23 to bolster the emergency response to the 2022-2023 Winter Storm Events, particularly in the Tulare Lake Basin that continues to be affected by historic flooding; and WHEREAS on May 17, 2023, and on June 16, 2023, I issued Executive Order N-7-23 and N-9-23, respectively, to further bolster the emergency response to the 2022-2023 Winter Storm Events, in both the San Joaquin River and the Tulare Lake Basins; and
WHEREAS there remains a need for remova l of floating vegetation and debris throughout impacted counties, including stretches of the Salinas River mainstem and tributaries, stretches of the Pajaro River mainstream and tributaries, and coastal streams along the Central Coast region from Santa Cruz County to Ventura County, and that removal must expeditiously occur before the next rainy season begins in fall 2023 in order to mitigate th e risk of additional flooding and allow for continued recovery efforts; and
WHEREAS emergency repairs, debris removal, sediment removal, and vegetation management within waters of the United States are subject to federal approvals from the U.S. Army Corps of Engineers pursuant to section 404 of the federal Clean Water Act (33 U.S.C. § 1344), and the State Water Resources Control Board (Water Board) has previously issued state water quality certifications corresponding to the Corps Regional General Permits 8, 5, or 63 for Repair and Protection Activities in Emergency Situations and the Nationwide Permit 3 for Maintenance Part ( a) for repair, rehabilitation, or replacement of structure of fill (collectively Emergency or Repair Corps Orders), which provide a pathway for emergency activities in many instances (hereinafter referred to as Water Board Emergency or Repair 401 Certification Orders); and WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would prevent, hinder, or delay the mitigation of the effects of the 2022- 2023 Winter Storm Events.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
1. All provisions contained in the above-referenced Proclamations of a State of Emergency and Executive Orders shall remain in full force and effect, except as modified or withdrawn in subsequent proclamations and orders.
2. To protect health, safety, and the environment, and to redu ce the risks of local catastrophic flooding, with respect to activities that _ take place in the San Joaquin River and tributaries, the Tulare Lake Basin and tributaries, including, but not limited to, the Kings, Tule, Kaweah, and Kern Rivers, the Salinas River and tributaries, the Pajaro River and tributaries, and other coastal streams between the Pajaro River (Santa Cruz/Monterey/San Benito Counties), to and including the Ventura River (Santa Barbara/Ventura County), but excluding tributaries to such other coastal streams, the following are suspended, subject to the conditions in Paragraphs 3 and 4, as applicable:
a. Chapter 6 (commencing with section 1600) of Division 2 of the Fish and Game Code, and regulations adopted pursuant to that Chapter.
b. Certain statutes, rules, and requirements applicable to activities under the jurisdiction of the Water Board and the California Regional Water Quality Control Boards (Regional Water Boards) as follows:
i. For an activity in a water of the United States that receives an authorization by the U.S. Army Corps of
Engineers pursuant to section 404 of the Clean Water
Act, any enrollment criteria that may limit the
permitting of the activity under a Water Board
Emergency or Repair 401 Certification Order, including
criteria limiting the scope to only the Emergency or
Repair Corps Orders, conditioned on compliance with
all other provisions set forth in the relevant Water Board Emergency or Repair 40 1 Certification Order.
ii. For an activity not covered by paragraph 2.b.i, sections 13260 and i 3263 of the Water Code, and regulations
adopted pursuant to those sections.
c. Division 13 (commencing with section 21000) of the Public Resources Code, and regulations adopted pursuant to that division.
3. The suspensions in Paragraph 2 apply only to (i) the repair or replacement of existing levees, weirs, and other conveyance and flood-control infrastructure, (ii) debris removal, (iii,) sediment removal, and (iv) vegetation management, provided that the activity meets all of the following conditions, as applicable:
a. The activity is necessary to respond to conditions caused by the 2022-2023 Winter Storm Events and is necessary to avoid future damage from high streamflow events in the upcoming rainy season.
b. Removal of sediment or vegetation or both serves to either reestablish a functional low flow channel or reestablish channel capacity, or clear sediment and debris from the river channel near structures such as bridges.
c. Removal of sediment or vegetation or both is carried out in a manner that (i) does not involve excavation resulting in the establishment of a new low flow channel that did not exist prior to the 2022-2023 Winter Storm Even-ts, (ii) maintains the natural contour of the stream, (iii) maintains the downstream slope of the stream flow line, and (iv) does not impede fish passage or cause fish stranding.
d. Removal of sediment or vegetation or both is limited to portions of the cha nnel that are dry.
e. No more than 30% of the total native vegetation within the stream channel and bank is removed from each river mile. f. Levees are either set back from their previous location (increasing channel capacity) or are rebuilt as configured prior to the 2022-2023 Winter Storm Events.
g. The activity does not involve disposal or placement of flooddelivered sediments into waters of the state or at locations or in a manner where sediments may be washed into waters of the state by rainfall or runoff.
h. The activity minimizes impacts.to beneficial uses of the water body.
i. The activity is completed by November 1, 2023.
4. The suspensions in Paragraph 2.b.ii apply only if the activity meets all of the following further conditions:
a. Th e project proponent shall provide notice to the appropriate Regional Water Board as· early as possible, and no less than forty- _eight (48) hours prior to initiating the project, that includes the scope and location of the activity, a description of the infrastructure, debris, sediment, and vegetation conditions relevant to the·activity, with representative photos, and,_as applicable, a description of how the activity serves to establish a functional low flow channel or reestablish channel capacity.
b. Following a ny accidental discharge of a reportable quantity of a hazardous material (as defined in Health and Safety Code section 25501), sewage, or an unk~own material, the project proponent shall follow the notification and reporting procedures set forth in condition A.3.c of Wafer Quality Order No.' 2019-0044-Exec Clean Water Act Section 401 Water · Quality Certification and Order.
c. The activity shall be undertaken so as to avoid causing a violation of any applicable water quality standards, including impairment of designated beneficial uses for receiving
waters, as adopted in any applicable Regional Water Board or Water Board water quality control plan or state policy for water quality control, but in the event of a violation of water quality standards, the project proponent shall eliminate the source of any such discharge as soon as practicable. Water diversion activities must not result in the degradation of beneficial uses or exceedances of water quality objectives of any of the receiving waters. Any temporary dam or other constructed obstruction must only be built from materials that will cause little or no siltation (e.g., clean gravel). Normal flows must be restored to the affected water immediately upon completion of work at that location.
d. If there is a violation of a water quality standard, the project proponent shall notify the applicable Regional Water Board of any event causing a violation of compliance with water quality standards. Notification may be via telephone, e-mail, delivered written notice, or other verifiable means. This notification must be followed within three (3) working days by submission of a written report that includes the cause of the violation; the location shown on a map; and the period of the noncompliance including exact dates and times. If the
noncompliance has not been corrected, include: the
anticipated time it is expected to continue; the steps taken or planned to reduce, eliminate, and prevent reoccurrence of the noncompliance; and a ny monitoring results.
e. If surface water is present, the project proponent shall conduct continuous visual surface water monitoring to detect accidental discharge of construction-related pollutants (e.g., oil and grease, turbidity plume, or uncured concrete).
f. Th e project proponent shall keep all repairs and construction to the minimum necessary to alleviate the emergency
caused by the 2022- 2023 Winter Storm Events and limited to in-kind replacement or refurbishment of on-site features, although the project may undertake minor upgrading if ' bioremediation or other environmentally sensitive solutions are used.
g. The project proponent shall impler:nent effective best management practices to control erosion and runoff from areas associated with the activity, including access roads. All areas of temporary impacts and all other areas of temporary disturbance that could result in a discharge or a threatened discharge to waters of the U.S. and/or state must be restored.
Restoration must include grading of disturbed areas to preproject contours and revegetation with native species. h. Notification of completion, including representative photos showing completion, shall be submitted to the appropriate Regiona l Water Board within 30 days of completion of the activity.
5. To support adequate state staffing for a ll state agencies assigned response and/or recovery role related to the 2022-2023 Winter Storm Events in coastal streams including and between the Pajaro River (Santa Cruz/Monterey/San Benito Counties) and the Ventura River (Santa Barbara/Ventura County), consistent with applicable federal law, work hour limitations for retired annuitants, permanent and intermittent personnel, and state management and senior s·upervisors are suspended. Fur·thermore, reinstatement and work hour limitations in Government Code sections 21220, 21224( a), and 7522.56(b), (d), (f), and (g), and the time limitations in Government Code section 19888.1 and California Code of Regulations, title 2, sections 300-303 are suspended. All other restrictions must be adhered to for retired annuitants. The Director of the California Department of Human_Resources must be notified of any individual employed in state government pursuant to these suspensions. The suspension of statutes identified in this Paragraph shall also apply to local governments, as applicable, to ensure adequate staffing to appropriately respond to the damage from the 2022-2023 Winter Storm Events in coastal streams including and between the Pajaro River (Santa Cruz/Monterey/San Benito Counties) and the Ventura River (Santa Barbara/Ventura County). Local governmental agencies shall notify the California Public Employees' Retirement System of any individual employed by an agency pursuant to this Paragraph.
6. The limitation for the period of employment for State Personnel _ Board emergency appointments, as provided in Government Code section 19888.1, is suspended for positions required for emergency response and/or recovery operations related to the 2022-2023 Winter Storm Events in coastal streams including and between the Pajaro River (Santa Cruz/Monterey/San Benito Counties) and the Ventura River (Santa Barbara/Ventura County). The requirements and period of employment for such appointments will be
determined by the Office of Emergency Services but shall not extend beyond the termination date of the State of Emergency.
I FURTHER DIRECT that as soon as hereafter possible, this Order be filed with the Office of the Secretory of State and that widespread publicity and notice be given to this Order.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.
IN WITNESS WHEREOF I hove hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 4th day
of August 2023.
-
ATTEST:
SHIRLEY N. WEBER, PH.D.
Secretary of State
Office of Emergency Services
5957 South Mooney Boulevard, Visalia, California 93277
(559) 624-7495 Telephone (559) 737-4692 Facsimile
April 14, 2023
Ms. Nancy Ward
Director, Governor’s Office of Emergency Services
3650 Schriever Avenue
Mather, CA 95655
Dear Director Ward,
Tulare County appreciates the Office of Emergency Services’ tireless work to support the response to and recovery from DR-4699 in our County and the surrounding region.
Specifically, your negotiation of an ongoing incident period and the expeditious approval of individual assistance programs have been particularly valuable to the affected communities as we continue to recover from storm damages, repair distressed and weakened waterways, and prepare for the impending historic snowmelt runoff.
As current snow moisture content in local watersheds is estimated at over 300% of the historical average, total inflows to local reservoirs through April and July are expected to exceed three times the reservoir capacity. Local reservoir and waterway operators continue to aggressively release water at or near full capacity to make space for the anticipated inflows and prevent a return to spillway flows, while balancing needs of downstream operators to conduct emergency repairs. As a result, a number of homes, agricultural properties, and public spaces remain inundated with floodwater, and more homes may be affected because of the new snowmelt conditions. Specifically, we anticipate similar or worse conditions as a result of the snowmelt.
Tulare County is concerned that current sheltering for individuals affected by inundation and/or evacuation orders, including previously displaced individuals who remain under an evacuation order, may be limited in duration, especially during the current intervening period between storm and snowmelt-induced flooding incidents within the disaster.
Tulare County has entered into an agreement with the City of Porterville to maintain the last remaining emergency evacuation shelter site in the County. The California Department of Social Services and Volunteer Emergency Services Team have pledged support to provide staff and services for only two weeks at this shelter. Forty Tulare County residents who have been displaced due to flood activities are staying at this site. Because the support from CDSS and VEST is limited, the County is concerned that it may not be able to continually fund and staff the ongoing shelter projects. Our concern is the ongoing financial and logistical burden to the County and the incorporated cities therein.
As we are sure that you are aware, emergency protective measures, flood control activities, and damage assessments are being conducted because of the flood conditions in Tulare County. These efforts go hand-in-hand with ensuring that County residents are safe, Office of Emergency Services
5957 South Mooney Boulevard, Visalia, California 93277
(559) 624-7495 Telephone (559) 737-4692 Facsimile
fed, and warm. The State’s cooperation in keeping funding and support from the Department of Social Services and VEST beyond the initial two weeks available for emergency sheltering of Tulare County Residents is vital. Your support in ensuring ongoing funding and logistical support for these critical emergency protective measures is greatly appreciated.
Sincerely,
Andrew Lockman
Office of Emergency Services Manager
Calwen Inc. dba Rescue Source & Rescue 3
P.O. Box 1050
Wilton, CA 95693
Phone: 916-687-6556
Fax: 916-687-6717
Email: [email protected]
Calwen Inc. dba Rescue Source &
Rescue 3 Intl
Invoice
Order # Date
131282 03/20/2023
PORTERVILLE FIRE DEPARTMENT
40 W CLEVELAND
PORTERVILLE, CA 93257
Phone: 559-782-7526
Email: [email protected] Contact: JANIE RODRIGUEZ PO Number: 23-22733
Bill To: Ship To:
PORTERVILLE FIRE DEPARTMENT
40 W CLEVELAND
PORTERVILLE, CA 93257
Customer: PORTERVILLE FIRE DEPARTMENT
Sales Rep Payment Terms FOB Point Carrier Ship Service Date Scheduled MELISSA NET 30 Origin UPS Next Day Air 03/20/2023
Item
# Type Number Description Unit Price
Qty
Ordered Total Price
1 Kit KT2210 PFD TYPE V PACKAGE $250.00 20 ea $ 5,000.00 2 Sale PF4026R NRS 2022 RAPID RESCUER RED $0.00 20 ea $ 0.00 3 Sale KN2556OR NRS PILOT KNIFE ORANGE $0.00 20 ea $ 0.00 4 Sale WH7905 WHISTLE-RESCUE 3 LOGO WITH COIL $0.00 20 ea $ 0.00 5 Sale HL7050HVL/XL RQ3 STORM PRO HELMET HI VIS
LARGE/XLARGE
$32.00 20 ea $ 640.00
6 Shipping Freight Freight Out $256.00 1 ea $ 256.00
7 Sale Tax Expense Tax Expense $521.70 1 ea $ 521.70
Total:
Subtotal:
Sales Tax:
$6,417.70
$0.00
$6,417.70
March 20, 2023 10:55:08 AM PDT Page 1 of 1
Thank you for your order.
If you have any questions please call 800-457-3728
or e-mail [email protected].
Rain For Rent
Bakersfield
4001 State Rd
Bakersfield CA 93308
United States
661-399-1724
24/7 Emergency 800-742-7246
www.rainforrent.com
Your sales person
JESSE PINTOR
REMIT PAYMENTS TO:
RAIN FOR RENT
FILE 52541
LOS ANGELES, CA 90074-2541
INVOICE Rain for Rent
3/30/2023 23-22734
112354
CITY OF PORTERVILLE
PAYMENT
DUE
PO or JOB#
1854595 4/29/2023
PLEASE PAY
ADDRESS
ADDRESS
NAME
CUSTOMER #
CUSTOMER
CONTRACT # 1169502
CITY OF PORTERVILLE
NAME CITY OF PORTERVILLE
SHIPPED TO JOBSITE:
291 N MAIN ST
PORTERVILLE CA 93257
INVOICE# INVOICE DATE
Corporation Yard
555 N Prospect St
Porterville CA 93257
$77,396.67
PHONE PHONE
Notes:
Requested by: Michael Knight
PO Number: 23-22734
QTY UOM DESCRIPTION PRODUCT # STATUS DATE
OUT
BILLED
THRU
DAYS PRICE AMOUNT TAXABLE
BILLED
1.00 EA Pump BA150E D285 Tlr Mt Diesel 0.00 $65,685.06 Y Eng Hatz 4H50TIC
1022734 SALES $65,685.06
1.00 EA Shipping/Handling 0.00 $5,158.57 Y
Freight
M240 SERVICES $5,158.57
TOTAL RENTALS:
TOTAL SALES:
TOTAL SERVICES:
SUBTOTAL:
$65,685.06
$5,158.57
$70,843.63
$0.00
TOTAL OTHER: $0.00
TAX: $6,553.04
FOR PROPER CREDIT, PLEASE INCLUDE INVOICE NUMBER ON YOUR PAYMENT.
PAST DUE AMOUNTS ARE SUBJECT TO A SERVICE CHARGE OF 1.50% CUSTOMER, (RENTEE OR BUYER as context requires), shall be deemed to accept all terms, conditions and provisions hereof upon execution of this agreement; ordering; or delivery of equipment to customer, whichever comes first.
SIGNATURE: _____________________________ DATE: ___________________ TOTAL: $77,396.67
PAYMENT TERMS: NET 30
Printed Date: 3/30/2023 Page 1 of 1
AG
5/5/23
X*
*Payment to be issued upon completion of a City of Porterville Business License Application AG
AG 5/5/23
5/5/23
1 | Page
www.GoodGuardSecurity.com1-800-651-0491
Client Service Address: 29 N Plano St, Porterville, CA 93257 Client Billing Address: 29 N Plano St, Porterville, CA 93257 Service Hours: 7 Day(s) / 07:30 PM - 08:30 AM / 13 Hours / Monday - Sunday Location Contact &
Telephone Number:
Email:
Amy Graybehl
559-782-7521
[email protected]
Rate (U.S. Dollars):
Holiday Rate
$28.95 (Per Hour Per Guard)
$43.45 (Per Hour Per Guard)
Service Commencement
Date:
07/17/2023
@ 07:30 PM
Payment Terms: Bi-weekly
Permanent/Temporary: Permanent 3 Month Minimum (30 Day Cancellation Notice) Uniform: Professional Security Uniform
Additional Charges: N/a
Security Service
Description:
2 Professional Unarmed Guard(s)
1 Guard will be intaking clients and the other guard will be patrolling the facility.
Note: Providing a visual deterrent to any outside danger. Security officers will make sure there isn’t anyone vandalizing the premises, or trying to break into the property. Loss prevention.
This SECURITY SERVICES AGREEMENT (“Agreement”) is entered into upon mutual execution hereof by and between GOOD GUARD SECURITY, a California corporation, Private Patrol Operator (PPO) License #120362 (hereinafter, “Company”) and City of Porterville (hereinafter, “Client”), with respect to the following:
1. RATES: Service Rates are subject to adjustment for any change in any law, causing a change in work hours, wage rates, working conditions or other costs to Company.
2. PAYMENT: Invoices will be submitted either bi-weekly or monthly, upon mutual agreement between Company and Client, and are payable on receipt at the address on the invoice. A late charge of 1 ½ % per month will be added to balances not paid within seven days.
3. EMPLOYEES: (a) Personnel supplied by Company are its employees and not Client’s. Company is solely responsible for social security, unemployment and similar taxes applicable to its employees.
(b) Company is a Federal Government Contractor and complies with Executive Order 11246, as amended: Section 503 of the Rehabilitation Act of 1973, as amended: Section 402 of Vietnam era Veterans’ Readjustment Assistance Act of 1974 and related regulations. Company’s employees will be assigned without regard to race, color, creed, sex, and national origin, handicap conditions that do not impair job performance or veteran status. (c) Client may reasonably remove any employee assigned provided such removal is not in violation of law. In the event any employee is removed at Client’s request, Client agrees to indemnify and hold Company harmless from any claims, demands, liabilities, judgments, losses, suits, damages, fines, penalties, and expenses including reasonable attorney’s fees and defense costs (hereinafter collectively “Claim(s)”) that may arise there from.
4. OVERTIME: Overtime rates shall apply to work on New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas; work on any additional holidays listed and any extra hours exceeding 8-hours a day or 40-hours per week. Coverage for labor disputes, civil disorders or natural disaster, or special assignment or agreement is not included except as described in the Service Rate Classification. Additional overtime rates shall not apply to situations where an employee of Company already on-duty covers hours for a “called-off” employee and thus works over 8-hours in his/her shift.
5. PROPERTY/EQUIPMENT: All property and equipment furnished by Company for performance of its services under this Agreement, regardless of whether portable or stationary, shall be considered the personal property of Company, and shall remain the personal property of Company after termination of this Agreement. Upon the termination of this Agreement, the Company shall have reasonable access and time to remove its property from Client’s property. Client shall not be responsible for any of Company’s personal property which is stolen, damaged or missing from the property in the absence of Company’s supervision.
6. KEYS/ACCESS: Company shall not be provided a master key (or its equivalent) to the property or any portion thereof, except for such location(s) that are to be exclusively used by Company’s guards or other personnel. Notwithstanding anything to the contrary in this Agreement, Company shall not be responsible for any damages including, without limitation, any costs incurred in re-keying or changing locks caused by the loss or theft of such key(s).
7. NON-COMPETITION: Client, its affiliates, agents, and other related persons or entities hereby agree not to hire any Company staff, employees, or personnel for a period of at least one (1) year after such person has terminated his/her employment with Company. Client further agrees not to prepare to engage in competition with Company, solicit, 2 | Page
www.GoodGuardSecurity.com 1-800-651-0491
divert, poach, or encourage any of the Company staff, employees, or personnel to stop working with Company, or to solicit, divert, poach, encourage, or facilitate them to work with Client, any affiliate of Client, or any related person or entity of Client. Client recognizes that Company has a significant investment in the recruitment and training of it employees and guards to be providing services under this Agreement, and that these personnel are a valuable asset to Company. As it is impractical and extremely difficult to fix the actual damages which may result from the loss of such employees and guards, Client agrees that if Client (or its affiliates, agents, and other related persons or entities) is in breach of this section of the Agreement, then Client shall be required to pay to Company for each such employee (or former employee employed by Company) the sum of $7,500.00. Such fee is expressly agreed to be considered liquidated damages, and not a penalty.
8. LIABILITY AND INDEMNITIES: (a) Client agrees that Company is not an insurer and that the amounts payable hereunder are based upon the value of service offered and not the value of Client’s interests being protected or the property of Client or others located on Client’s premises. Accordingly, Company undertakes no liability to Client and makes no representation, express or implied, that its service will prevent occurrences or their consequences, which result in loss or damage. (b) Client agrees that Company shall not be liable for any claims incurred or asserted by Client, irrespective of origin, to persons or property, whether directly or indirectly caused by performance or nonperformance of obligations imposed by this agreement or by negligent acts or omissions, including those relating to the hiring, training, supervision or retention of personnel, of Company, its agents or employees. (c) The services provided under this Agreement are solely for the benefit of Client and neither this Agreement nor any services rendered hereunder confer any rights on any other party as a third-party beneficiary or otherwise and Client agrees to indemnify and hold Company harmless from and against any claims made by a third party(s), including, but not limited to, injury, death or damage or loss of property, arising from the negligent acts or omissions, including those relating to the hiring, training, supervision or retention of personnel, of Company, its agents or employees. (d) If, at Client’s request, Company employees undertake duties or are requested to use equipment or vehicles other than as agreed to in writing by Company, Client shall be solely responsible for and shall indemnify and hold Company harmless from and against any claims arising there from, including, but not limited to, claims arising from the negligent acts or omissions including those relating to the hiring, training, supervision or retention of personnel, of Company, its agents or employees. (e) Client hereby waives any and all rights of subrogation that any insurer of Client may have against Company. (f) Where Company is entitled to indemnification, Company shall have the right to tender defense of the claim to Client.
9. FORCE MAJEURE: The obligations of Company hereunder may be suspended during any period where performance is prevented by acts of God, civil or labor disturbances, or events beyond Company’s reasonable economic control.
10. HAZARDOUS OR DEFECTIVE CONDITIONS/MATERIALS: (a) Client agrees that it will comply with OSHA Hazard Communication Standards and will indemnify and hold Company harmless from all claims, including injuries to Company’s employees arising out of a condition existing at Client’s premises or Client’s violation of any safety or health related law or regulation. (b) Client further agrees to: (1) make available to Company the Material Safety Data Sheet for each hazardous chemical to which Company’s employees may be exposed at Client’s premises; (2) inform company of (A) precautionary measures that need to be taken to protect Company’s employees and (B) Client’s hazardous material labeling system.
11. INSURANCE: Client agrees to assume all risk of loss or damage to its premises, business and property of others on Client’s premises occurring as a result of fire, theft or other casualty and Client agrees that it will maintain insurance to fully protect Client against such loss or damage. Accordingly, Client waives its right of recovery against Company of any such loss or damage, however caused.
12. TERMINATION OF SERVICES: Except as otherwise provided in this Agreement, this Agreement may be terminated for non-performance by either party, provided that such party has given the others reasonable time to correct any instances of such non- performance. If either party fails to correct such non-performance, the Agreement may be terminated, provided that such party has given the others at least thirty (30) days advance written notice of such intention. Notwithstanding the foregoing and for all other intentions, termination of services by Client must be preceded by at least thirty (30) days advance written notice of such intention to terminate services. Minimum 3-Month Service Agreement from start date.
13. ENTIRE AGREEMENT AND INTERPRETATION: This Agreement constitutes the entire agreement and understanding between the parties, and no representations, inducements, promises or agreements not embodied herein shall be of any force or effect. This Agreement shall be governed under the law of the State of its performance and if any provision shall conflict therewith, such provision shall be interpreted to remove such conflict, so that this Agreement and all its other provisions shall remain in full force and effect.
14. DEFAULT: Company may terminate this Agreement immediately and exercise such other rights and remedies as permitted by law, if Client fails to pay any amount when due or if any proceeding is commenced or threatened by or against Client under the Bankruptcy Code or any other Debtor’s law, or if Client makes or threatens to make an assignment for the benefit of creditors.
IN WITNESS WHEREOF, the parties by their duly authorized representatives have signed this Agreement as of the date first above written:
By GOOD GUARD SECURITY:
___________________________________________________________________________________________________________ (Authorized Representative Signature) (Print Name & Title) By CLIENT:
___________________________________________________________________________________________________________ (Authorized Representative Signature) (Print Name & Title) 3 | Page
www.GoodGuardSecurity.com 1-800-651-0491
Brady Osorto / Business Development Manager
State of California
GOVERNMENT CODE
Section 8558
8558. Three conditions or degrees of emergency are established by this chapter:
(a) “State of war emergency” means the condition that exists immediately, with or without a proclamation thereof by the Governor, whenever this state or nation is attacked by an enemy of the United States, or upon receipt by the state of a warning from the federal government indicating that an enemy attack is probable or imminent. (b) “State of emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy or conditions causing a “state of war emergency,” which, by reason of their magnitude, are or are likely to be beyond the control of the services, personnel, equipment, and facilities of any single county, city and county, or city and require the combined forces of a mutual aid region or regions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the Public Utilities Commission.
(c) (1) “Local emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, deenergization event, electromagnetic pulse attack, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy, which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other political subdivisions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage or deenergization event that requires extraordinary measures beyond the authority vested in the Public Utilities Commission. (2) A local emergency proclaimed as the result of a deenergization event does not trigger the electric utility obligations set forth in Public Utilities Commission Decision 19-07-015 or its successor decisions as related to deenergization events. A local emergency proclaimed as the result of a deenergization event does not alter the electric utilities’ Public Utilities Commission-approved cost-recovery mechanisms for their own costs associated with deenergization events.
(Amended by Stats. 2022, Ch. 537, Sec. 1. (SB 468) Effective January 1, 2023.)
Item No. 11.
CITY COUNCIL AGENDA – FEBRUARY 18, 2025
SUBJECT: Public Hearing to Consider Adjustments to Lease Rates and Approval of the Master Ground Lease Agreement, Airport Lease Policy, and Hangar Rental Agreement for the Porterville Municipal Airport
SOURCE: Public Works
COMMENT: The City of Porterville owns and leases various properties at the Porterville Municipal Airport, including aircraft hangars, a restaurant building, aviation-related ground lease parcels, and farmland. Lease rates for these properties have remained unchanged for approximately twenty years, resulting in rates that are significantly below current market values.
To ensure compliance with Federal Aviation Administration (FAA) regulations, particularly Grant Assurance 24: Fee and Rental Structure, the City engaged The Hopper Company to conduct a market rent appraisal, completed on November 15, 2024. The appraisal provides updated market rent recommendations based on a comprehensive analysis of comparable properties and market trends.
The proposed lease rate adjustments align with market conditions, FAA regulations, and best practices in aviation facility management. Lease rate adjustments adopted by the City Council will take effect on March 1, 2025, and apply to all new leases and lease renewals executed after that date. The adjustments are expected to generate up to an additional $72,000 annually, which will be reinvested into airport infrastructure improvements, ensuring long-term operational sustainability.
The following table summarizes the current and recommended lease rates for the various property types:
Property Type Current Lease Rate Recommended Lease Rate Enclosed Hanger $.03 per sq. ft./month $.20 - $.25 per sq.ft./month T-Hanger $68.60 per unit/month $200 per unit/month
Commercial (Non-Aviation) $0.45 per sq. ft./month $1.25 per sq. ft./month Small Land Parcels $0.39 per sq.ft.,/year $0.80 per sq.ft./year Large Land Parcels $0.30 per sq. ft./year $0.39 per sq. ft./year Air Attack Base Varies $5,000 per acre/year
Irrigated Farmland Varies $165 per acre/year
Parachute Landing $40 per acre/year $40 per acre/year
Dry Farmland $35 per acre/year $35 per acre/year
Item No. 11.
Sewer Sludge $40 per acre/year $40 per acre/year
The public hearing provides tenants and stakeholders with an opportunity to voice their opinions on these proposed adjustments.
Public participation ensures transparency and allows the City Council to consider public input before finalizing the rates.
Pursuant to California Government Code Section 6066, the City has published a notice of this public hearing in a newspaper of general circulation for ten days. Additionally, all current airport tenants have been notified in writing of the proposed lease rate adjustments and the availability of the draft Master Ground Lease Agreement, Airport Lease Policy, and Hangar Rental Agreement for review.
The Airport Lease Policy establishes the City’s guidelines for leasing airport properties, ensuring compliance with FAA regulations, financial sustainability, and equitable leasing practices. The policy standardizes leasing terms, defines aeronautical and non-aeronautical uses, and outlines FAA-mandated provisions.
A draft Master Ground Lease Agreement has been prepared to standardize lease terms, improve compliance with FAA regulations, and address obligations outlined in Grant Assurances 22, 23, and 24.
A draft Hangar Rental Agreement has been developed to provide consistency in the rental terms for aircraft storage hangars, ensuring compliance with airport policies and FAA grant assurances.
Key Provisions of the Master Ground Lease Agreement and Hangar Rental Agreement include the following:
• Lease Term: Initial term of five years with options for four successive five-year renewal periods.
• Rent Adjustments: Annual cost-of-living adjustments based on the Consumer Price Index (CPI) and periodic appraisals to maintain fair market value.
• Lessee Obligations: Maintenance of leased premises, compliance with FAA safety and operational standards, and adherence to environmental requirements.
• FAA Compliance: Incorporates FAA Grant Assurances 22
(Economic Nondiscrimination), 23 (Exclusive Rights), and 24 (Fee and Rental Structure).
RECOMMENDATION: That the City Council:
1. Conduct a public hearing to consider adjustments to
Item No. 11.
lease rates for properties at the Porterville Municipal Airport based on the findings of the market rent appraisal report; and
2. Approve the proposed lease rate adjustments to ensure compliance with Federal Aviation Administration (FAA)
regulations and financial sustainability of airport operations; and
3. Approve the Master Ground Lease Agreement, Airport
Lease Policy, and Hangar Rental Agreement for use with
airport lessees, ensuring compliance with FAA regulations and grant assurances, pending final approval by the City Attorney; and
4. Approve the attached draft Resolution to formally adopt the lease rate adjustments and authorize implementation.
ATTACHMENTS: 1. Draft Resolution
2. Appraisal - Market Rents at Porterville Municipal
Airport
3. Draft 2025 Airport Ground Lease Agreement with
Exhibits
4. Draft Hanger Rental Agreement
5. Draft Airport Lease Policy
Appropriated/Funded:
Review By:
Department Director:
Richard Tree, Director of Transportation
Final Approver: Jason Ridenour, Interim City Manager
RESOLUTION NO.____-2025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE
APPROVING ADJUSTMENTS TO LEASE RATES FOR THE PORTERVILLE
MUNICIPAL AIRPORT AND AUTHORIZING IMPLEMENTATION
WHEREAS, the City of Porterville ("City") owns and leases various properties at the Porterville Municipal Airport, including aircraft hangars, a restaurant building, aviation-related ground lease parcels, and farmland; and WHEREAS, in accordance with Porterville City Code Chapter 4, Section 4-
1.00(C), the City has the authority to regulate airport operations, including lease agreements and rental structures, to ensure compliance with federal, state, and local regulations; and
WHEREAS, lease rates for these properties have remained unchanged for several years, resulting in rates that are significantly below current market values; and WHEREAS, the Federal Aviation Administration ("FAA") requires the City to maintain a fee and rental structure that ensures self-sustainability and compliance with Grant Assurance 24: Fee and Rental Structure; and
WHEREAS, the City engaged The Hopper Company to conduct a market rent appraisal, completed on November 15, 2024, which provides updated market rent recommendations based on comparable properties and market trends; and WHEREAS, the proposed lease rate adjustments are necessary to align with market conditions, ensure compliance with FAA regulations, and maintain the financial sustainability of airport operations; and
WHEREAS, the City has notified all affected tenants and published the required public notice in accordance with California Government Code Section 6066; and WHEREAS, a duly noticed public hearing was conducted on February 18, 2025, at which tenants and stakeholders were provided an opportunity to present their comments regarding the proposed lease rate adjustments; and WHEREAS, the City Council has reviewed and considered all public comments and supporting documentation regarding the proposed adjustments and finds them to be in the best interest of the City and the continued operation of the Porterville Municipal Airport; and
WHEREAS, in accordance with Porterville City Code Chapter 4, Section 4-
1.00(C), the City has the authority to regulate airport operations, including lease agreements and rental structures, to ensure compliance with federal, state, and local regulations.
NOW, THEREFORE, BE IT RESOLVED:
1. The City Council hereby approves the adjustments to lease rates for properties at the Porterville Municipal Airport as further detailed in Attachment A.
2. The revised lease rates shall become effective on March 1, 2025, and shall apply to all new leases and lease renewals executed after that date.
3. The City Manager or designee is authorized to implement the new lease rates, notify all affected tenants, and execute lease agreements consistent with the adopted Master Ground Lease Agreement, as provided under Porterville City Code Chapter 4, Article VI.
4. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the official records of the City of Porterville.
PASSED, APPROVED AND ADOPTED this 18th day of February 2025.
Greg Meister, Mayor
ATTEST:
Jason Ridenour, Interim City Clerk
By:
Fernando Gabriel-Moraga,
Acting Chief Deputy City Clerk
Attachment A
Property Type Lease Rate
Enclosed Hangar $0.20 - $0.25 per sq. ft./month
T-Hangar $200 per unit/month
Commercial (Non-Aviation) $1.25 per sq. ft./month
Small Land Parcels $0.80 per sq. ft./year
Large Land Parcels $0.39 per sq. ft./year
Air Attack Base $5,000 per acre/year
Irrigated Farmland $165 per acre/year
Parachute Landing $40 per acre/year
Dry Farmland $35 per acre/year
Sewer Sludge $40 per acre/year
APPRAISAL REPORT
PORTERVILLE MUNICIPAL AIRPORT
Market Rent of Airport Properties
1893 South Newcomb Street
Porterville, California
Date of Value:
November 15, 2024
Client:
City of Porterville
Serving the San Joaquin Valley since 1972.
1041 N. Demaree St. • Visalia, CA 93291 • Phone (559) 733-1230 • www.hopperco.com December 6, 2024
Claudia Calderon, Acting Community Development Director City of Porterville
291 North Main Street
Porterville, California 93257
RE: Market rent appraisal of Porterville Municipal Airport properties in Porterville, California.
Our file no. 24-091.
Dear Ms. Calderon:
We are pleased to transmit the attached appraisal report, which communicates our opinions of rental value for a variety of properties owned by the City of Porterville that are part of the Porterville Municipal Airport. These properties include aircraft hangar buildings, a restaurant café building, sites suitable for aircraft-related uses, and farmland in and around the airport.
The City of Porterville is reviewing their existing leases for these properties as well as marketing available properties to potential tenants, and an appraisal is needed to help determine market rent levels. The client for the assignment is the City of Porterville and they have ordered the attached appraisal.
The purpose of the appraisal is to provide opinions of market rent for the leased fee interest in each of the various airport-related property types that the city owns. Some of the valuations are specific to an individual property, while other valuations relate to a type of property where there are numerous such facilities. The effective date of value is November 15, 2024 and these are current value estimates.
Any reader of the attached report is cautioned to understand the limited purpose for which it has been prepared. Reliance upon the information, data, or conclusions indicated within the report by anyone other than the client, or for any reason other than the intended use that is stated, is inappropriate. This letter simply transmits the attached appraisal report and it should not be considered the report itself.
Thank you for this appraisal assignment. If you have any questions about the valuation or the written appraisal report, please contact us.
Sincerely,
Ross E. Lenz, MAI Keith J. Hopper, MAI, R/W-AC, AI-GRS
CA #AG043508 (expires 1/10/2026) CA #AG002559 (expires 10/4/2026) Appraisal Report – Porterville Municipal Airport Market Rents i
TABLE OF CONTENTS
Introduction to the Appraisal
• The Appraisal Problem .............................................................................................................. 1 • Definitions of Terms .................................................................................................................. 2 • Scope of Work in the Appraisal ................................................................................................. 3 • Effective Date of Value and Appraisal Report ........................................................................... 5 • Assumptions and Limiting Conditions ....................................................................................... 5 • Certification of the Appraisal .................................................................................................... 9 Regional Area and Neighborhood Information
• Regional Area Information ...................................................................................................... 11 - City Location Map ............................................................................................................. 15 • Neighborhood Area Information ............................................................................................. 16 Method of Valuation
• Method of Valuation ............................................................................................................... 22 • Search for Comparable Data ................................................................................................... 22 Aircraft Hangar Buildings
• Property Descriptions .............................................................................................................. 25 - Maps of Hangars ............................................................................................................... 26 - Photographs of Hangars ................................................................................................... 28 • Property Valuation .................................................................................................................. 30 - Enclosed Hangar Buildings ................................................................................................ 30 - T-Hangar Buildings ............................................................................................................ 31 Restaurant Building
• Property Description ............................................................................................................... 33 • Property Valuation .................................................................................................................. 33 - Aerial Photograph ............................................................................................................. 34 - Photographs of Building.................................................................................................... 35 Aviation-Related Ground Leases
• Property Descriptions .............................................................................................................. 37 - Map of Small Parcels ......................................................................................................... 39 - Photographs of Small Parcels ........................................................................................... 40 - Map of Large Parcels ......................................................................................................... 41 - Photographs of Large Parcels ........................................................................................... 42 - Aerial of Air Attack Base Site ............................................................................................ 43 - Photographs of Air Attack Base Site ................................................................................. 44 • Property Valuation .................................................................................................................. 45 Appraisal Report – Porterville Municipal Airport Market Rents ii - Small Land Parcels............................................................................................................. 45 - Large Land Parcels ............................................................................................................ 46 - Air Attack Base Site ........................................................................................................... 47 Farmland Leases
• Property Descriptions .............................................................................................................. 49 - Aerial of Farmland Properties ........................................................................................... 51 - Photographs of Farmland Properties ................................................................................ 52 • Property Valuation .................................................................................................................. 55 - Irrigated Farmland Parcels ................................................................................................ 55 - Dry Farmland Parcels ........................................................................................................ 56 Addenda
• Qualifications of the Appraisers .............................................................................................. 58
INTRODUCTION TO
THE APPRAISAL
Appraisal Report – Porterville Municipal Airport Market Rents 1
THE APPRAISAL PROBLEM
The Porterville Municipal Airport is a general aviation facility encompassing some 940 acres in Porterville, California. It is owned by the City of Porterville and operated as a public-use facility that serves both private and governmental users. A variety of land and building types are available for rental, including aircraft hangar buildings, a restaurant café building, sites suitable for aircraft-related uses, and dry and irrigated farmland.
The City of Porterville is reviewing their existing leases for these properties as well as marketing available properties to potential tenants, and an appraisal is needed to help determine market rent levels. The client for the assignment is the City of Porterville and they have ordered this appraisal. No other intended users or uses of the appraisal have been identified.
The purpose of the appraisal is to provide opinions of market rent for the leased fee interest in each of the various airport-related property types that the city owns. Some of the valuations are specific to an individual property, while other valuations relate to a type of property where there are numerous such facilities. The effective date of value is November 15, 2024, which is when the properties were inspected by the appraisers, and these are current value estimates.
The appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The results of the appraisal are being communicated in this narrative-style appraisal report that provides a concise presentation of the important facts and information having an impact on the value of the subject properties.
There are several underlying assumptions and conditions that are made throughout this appraisal that affect the value conclusions that are reached. They are detailed later in the Assumptions and Limiting Conditions section of this report and should be fully read and understood to have a proper basis on which to consider the value conclusions.
The appraisers who have prepared and signed this appraisal report are competent to value this type of property and are qualified under the competency rule of the USPAP. A detailed list of the appraisers’ qualifications is shown in the addenda of this report. No one else provided significant professional assistance to the persons signing this report.
This appraisal report is a copyrighted work and neither all nor any part of this document may be copied, reproduced, transmitted, or incorporated into any information retrieval system in any form or by any means without the express written permission of the authors. The descriptions, data, analyses, opinions, and conclusions contained herein are intended for the exclusive use of the client and are to be used solely for the intended use that is stated. The Hopper Company retains all ownership of this work and the client is simply granted a license to use the work for the intended use. © Copyright 2024 by the Hopper Company. All Rights Reserved.
Appraisal Report – Porterville Municipal Airport Market Rents 2
DEFINITIONS OF TERMS
The following terms are used throughout this appraisal report.
Appraisal: The act or process of developing an opinion of value; an opinion of value (noun). Of or pertaining to appraising and related functions such as appraisal practice or appraisal services (adjective). (Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2024 edition, pg. 3).
Report: Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment. Two types of reports may be written under USPAP: Appraisal Report or Restricted Appraisal Report. (Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2024 edition, pg. 6).
Real Estate or Real Property: Real estate is an identified parcel or tract of land, including improvements, if any. Real property is the interests, benefits, and rights inherent in the ownership of real estate. (Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2024 edition, pg. 5).
Market Rent: The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus.
Implicit in this definition is the execution of a lease as of a specified date under conditions whereby:
1. Lessee and lessor are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own best interests;
3. Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and
4. The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tis).
(The Dictionary of Real Estate Appraisal, 7th edition, Appraisal Institute, 2022, pg. 116-117).
Fee Simple Interest: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (The Dictionary of Real Estate Appraisal, 7th edition, Appraisal Institute, 2022, pg. 73).
Leased Fee Interest: The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. (The Dictionary of Real Estate Appraisal, 7th edition, Appraisal Institute, 2022, pg. 105).
Personal Inspection: The appraiser’s in-person observation of the subject property performed as part of the scope of work. An appraiser’s personal inspection is typically limited to those things readily observable without the use of special testing or equipment. A personal inspection is not the equivalent of an inspection by an inspection professional (e.g., a structural engineer, home inspector, or art conservator). (Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2024 edition, pg. 5).
Appraisal Report – Porterville Municipal Airport Market Rents 3
SCOPE OF WORK IN THE APPRAISAL
The scope of work undertaken in this appraisal refers to the type and extent of research and analysis that is performed in answering the appraisal problem and completing the assignment. An appropriate scope of work is determined based on input from the client and it leads to credible assignment results as measured within the context of the intended use of the appraisal. The scope of work includes the degree to which the subject properties are identified and inspected, the type of data that is sought and the level of research that is performed, and the type and extent of analyses that are applied to arrive at opinions and conclusions. Credible assignment results require support by relevant evidence and logic. (Uniform Standards of Professional Appraisal Practice, Scope of Work Rule, Appraisal Foundation, 2024 edition, pgs. 15-16).
Subject Property Identification & Inspection
In this appraisal, the appraisers have sought to become as knowledgeable about the subject properties and the market within which they operate as typical market participants would be. With this goal in mind, it is important to recognize that the appraisal is performed with a limited amount of data and that various legal, monetary, and time constraints may preclude the appraisers from making exhaustive investigations.
The following tasks and investigations have been performed:
● The assignment was ordered by Claudia Calderon, Acting Community Development Director for the City of Porterville.
● A meeting was held with Richard Tree, Airport Manager, on September 25, 2024 to discuss the appraisal assignment and the statuses of the subject properties. A request was made for certain information that is relevant to the assignment, and Mr. Tree provided a list and maps of the properties to be appraised, details about their sizes, and information about typical lease terms.
● Mr. Tree also gave a tour of the airport on that date. During this inspection, the appraisers viewed the various facilities and took notes and photographs of them. ● Once additional information was provided and the assignment modified, the appraisers visited the airport again on November 15, 2024 to inspect the properties again along with some additional properties.
● Research was performed to determine the property ownerships and an ownership history for each property is researched going back a minimum of three years. ● Investigations were made into the applicable zoning and other land use restrictions impacting the use and development of the properties.
Data Research
To properly understand the market in which the subject properties operate, several additional steps are taken:
● The surrounding neighborhood area has been visually inspected to identify existing land use patterns and trends, property conditions, potential market transactions, and other influences affecting the properties.
Appraisal Report – Porterville Municipal Airport Market Rents 4 ● Demographic, regulatory, and economic data on the neighborhood, city, and region of each property are collected from various governmental, Internet, and private sources to help in identifying trends that may be impacting their values.
● Specialized research is made into the unique characteristics of each property’s market segment to better understand the forces and factors that influence value and the market conditions affecting supply and demand.
● Discussions are held with various market participants to gain insight into market conditions and transactions, including other local airport managers, farmers, and appraisers. ● Efforts are made to verify the market data with parties who are knowledgeable of the transactions. All the data used in this appraisal is believed to be reliable and correct, and where inconsistencies or conflicting information is provided only the most trustworthy data is used.
Valuation Analysis
Once the necessary background information about the subjects and their market area are gathered, the following analysis is performed.
● Due to the nature of the subject properties, a rental comparison approach to value is performed for each of the property types.
● The results of the appraisal process are then communicated in this narrative-style appraisal report that provides a concise presentation of the important facts and information having an impact on the rental value of the subject properties.
Appraisal Report – Porterville Municipal Airport Market Rents 5
EFFECTIVE DATE OF VALUE AND APPRAISAL REPORT
The effective date of value represents the point in time to which the appraisal analyses and opinions pertain, and in this report the date of value is November 15, 2024. This is when the appraisers made their most recent inspection of the airport properties, and all assumptions and analyses used in the appraisal are based upon valuing the properties as of this point in time. The concluded values are current value estimates because the effective date is concurrent with the date that the appraisal report was prepared.
The date of the appraisal report is December 6, 2024. This is the point in time when the final value conclusions were established and the completed appraisal report was transmitted to the client. This date helps to establish the perspective of the appraisers in relation to the effective date of value.
ASSUMPTIONS AND LIMITING CONDITIONS
The assumptions and limiting conditions listed below are central to this appraisal. The list includes basic assumptions and limiting conditions that are typical of many appraisal assignments as well as any extraordinary assumptions or hypothetical conditions that are specific to the subject properties and this assignment. This appraisal should only be relied upon within the context of these items.
Basic Assumptions
1. The information and data reported in this appraisal has been obtained from sources that are deemed to be reliable. They are believed to be correct, but cannot be guaranteed by the appraisers. Sources such as government agencies, financial institutions, attorneys, accountants, appraisers, brokers, and buyers and sellers are believed to be true and correct unless conflicting information is discovered through another source. In cases of conflicting information, only reasonable and verifiable data is used, however, no responsibility for the accuracy of such information is assumed by the appraisers.
2. It is assumed that all information provided by the property owner and any persons employed by them is accurate and complete. This would include information about the subject properties’ physical condition, current and past economic performance, lease agreements, condition of title, and any other items or details that could potentially impact the properties’ valuation.
3. The effective date of value that applies to the opinions expressed in this report is set forth in the appraisal report. The appraisers assume no responsibility for events, conditions, or circumstances that may subsequently arise and alter the economic or physical condition of the subject properties and the opinions and conclusions stated herein.
4. No opinion as to title is rendered. Data on ownership and legal descriptions have been obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically expressed in the report.
Appraisal Report – Porterville Municipal Airport Market Rents 6
5. It is assumed that the properties are in full compliance with all applicable zoning and use restrictions unless otherwise indicated in the report. It is further assumed that the properties are in complete compliance with all federal, state, and local laws and regulations governing environmental issues, unless otherwise indicated.
6. The properties are appraised assuming them to be under responsible ownership and competent management. It is assumed that all required licenses, consents, and other legislative or administrative authority have been or can be obtained for any use on which the value estimates contained in this report have been based.
7. No encroachment of real property improvements is known to exist, and it is assumed that the utilization of the land and any improvements is within the boundaries of the property lines of the properties described in this report, unless otherwise indicated.
8. It is assumed, unless indicated to the contrary in this report, that there are no hidden or unapparent conditions of the properties, their subsoils, or any structures that would render them more or less valuable. No responsibility is assumed for such conditions, and any reports provided to the appraisers by experts in these matters are accepted as true and correct.
9. No opinion regarding the value of subsurface oil, gas, or mineral rights is expressed. The properties are not believed to be encumbered by easements nor rights to surface entry for the exploration or removal of such materials unless expressly stated.
10. Unless otherwise stated in this report, the existence of hazardous material substances, including without limitation asbestos, polychlorinated biphenyls, urea-formaldehyde, foam insulation, petroleum leakage, agricultural chemicals, or other potentially hazardous materials, which may or may not be present on the subject properties, were not called to the attention of nor did the appraisers become aware of such during the appraisers’ inspection. The appraisers have no knowledge of the existence of such materials on or in the properties unless otherwise stated.
The appraisers, however, are not qualified to test or detect such substances. The presence of such hazardous substances may affect the value of the properties. Unless otherwise indicated in the report, all values estimated in this appraisal assume that no hazardous substances exist on or in the properties or in such proximity to them that would cause a loss in value. No responsibility is assumed for any hazardous substances or for any expertise or knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
11. This appraisal report should not be considered an inspection report on the physical nature or condition of the properties. The subjects have been inspected on a casual level and no attempt beyond ordinary visual inspection has been made to determine the adequacy or condition of the properties. The appraisers are not construction, engineering, environmental, or legal experts, and any statements given on these matters should be considered preliminary in nature.
It is assumed, unless otherwise noted, that all improvements meet applicable building codes.
Limiting Conditions
12. This appraisal is provided only for the purpose of property valuation and the appraisers are neither qualified nor attempting to go beyond that narrow scope. The reader should be aware Appraisal Report – Porterville Municipal Airport Market Rents 7 that there are inherent limitations to the accuracy of the information and analysis contained in this appraisal.
13. The liability of the appraisers and the Hopper Company is limited solely to the client and only to the amount of the fee actually paid for the appraisal services. Any third parties not identified as intended users who rely upon this appraisal, its facts, or conclusions, do so at their own risk and waive the right to bring any action, directly or indirectly, against the appraisers or firm.
14. The appraisal report is a technical document designed to serve the specific needs of the client and any other intended users that are specifically identified. Other readers are cautioned that the report may not contain all the information known by the appraisers concerning the subject properties or the real estate market. While no factors considered to be significant have been knowingly withheld, there is a potential that information of importance to another reader may not be included in the report.
15. This appraisal is performed with a limited amount of data. These limitations arise from economic, physical, and legal constraints that prohibit the appraisers from making exhaustive investigations about the subject properties, the real estate market, and the comparable data.
16. A reasonable attempt to gather, investigate, and verify the comparable data used in this appraisal is made by the appraisers consistent with the efforts typically made by other real estate professionals operating in the local market. However, the analyses and conclusions used in this appraisal are subject to the accuracy of such data.
17. No opinion is intended to be expressed for legal matters or that which requires specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers.
18. No engineering survey of the properties has been made by the appraisers. Data relative to size, dimensions, and area are derived from sources deemed reliable. Maps, plats, and exhibits included in the report are for illustration only and should not be relied upon for any other purpose.
19. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the authors, particularly as to the valuation conclusions, the identity of the appraisers or firm with which they are connected, or any reference to the Appraisal Institute or to the MAI or AI-GRS designations.
20. Possession of this report or any copy thereof does not carry with it the right of publication, nor may the same be used for any purpose by anyone except the appraisers, without the previous written consent of the appraisers, and in any event, only in its entirety.
21. No right to expert testimony is included with this report and the fee for this appraisal does not include payment for pre-trial conferences, taking of depositions, exhibit preparation, expert witness fees, or other additional work beyond the initial scope of this assignment. If the appraisers are subsequently required to provide any such services, the client or party initiating the demand will be responsible for payment of expert fees associated with the time and effort needed to provide them.
Appraisal Report – Porterville Municipal Airport Market Rents 8
22. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraisers have not made a specific compliance survey and analysis of the subject properties to determine whether or not they are in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the properties together with a detailed analysis of the requirements of the ADA could reveal that the properties are not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon the value of the properties. Since the appraisers have no direct evidence relating to this issue, possible non-compliance with the requirements of ADA was not considered in estimating the values.
23. The age of any improvements to the subject properties mentioned in this report should be considered an estimate based upon circumstantial, conversational, or documented evidence.
24. No separation of land and any improvement values may be used for any other purpose than that delineated elsewhere in this report.
Appraisal Report – Porterville Municipal Airport Market Rents 9
CERTIFICATION OF THE APPRAISAL
We certify that, to the best of our knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• We have no present or prospective interest in the properties that are the subjects of this report and no personal interest with respect to the parties involved. • We have performed no services, as appraisers or in any other capacity, regarding the properties that are the subjects of this report within the three-year period immediately preceding acceptance of this assignment.
• We have no bias with respect to the properties that are the subjects of this report or to the parties involved with this assignment.
• Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
• Our compensation for completing this assignment is not contingent upon the development or reporting of predetermined values or a direction in value that favors the cause of the client, the amount of the value opinions, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). • We have made a personal inspection of the properties that are the subjects of this report. • No one provided significant real property appraisal assistance to the persons signing this certification.
• The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, we have completed the continuing education program for Designated Members of the Appraisal Institute.
• We are competent to complete this appraisal assignment. Any steps necessary to achieve competency are disclosed in this report.
• This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.
Ross E. Lenz, MAI Keith J. Hopper, MAI, R/W-AC, AI-GRS
CA #AG043508 (expires 1/10/2026) CA #AG002559 (expires 10/4/2026)
REGIONAL AREA AND
NEIGHBORHOOD
INFORMATION
Appraisal Report – Porterville Municipal Airport Market Rents 11
REGIONAL AREA INFORMATION
The Porterville Municipal Airport is in the city of Porterville in Tulare County, California. The county is near the center of the state in the heart of the San Joaquin Valley, a vast 450-mile-long region that forms its interior. While the Valley has long been overshadowed by the major metropolitan areas of Southern California and the Bay Area, it is now the fastest growing section of California and is a rich agricultural region that is often referred to as the “bread basket of the world.” The county of Tulare is one of six counties comprising the southern San Joaquin Valley region of California and it is made up of eight incorporated cities and over 40 smaller unincorporated communities.
Porterville is in the southern section of Tulare County along the foothills of the Sierra Nevada Mountains. The city is 24 miles southeast of Visalia along State Route 65 and some 51 miles north of Bakersfield, the two largest nearby cities. Porterville is also centrally located within California being 165 miles north of Los Angeles, 171 miles east of the Central Coast, and 253 miles south of San Francisco.
Geography
Tulare County is situated between the Sierra Nevada Mountains to the east and the Coastal Mountains to the west. It covers nearly 4,935 square miles with about one-third of the area on the valley floor. The remaining land area is principally in the eastern section of the county and it consists of foothills, timbered slopes, and high mountains. Elevations vary from 270 feet above sea level on the valley floor to a peak of 14,495 feet at the top of Mount Whitney, the highest point in the continental United States.
The county is an area of superlatives and it serves as home to the nation’s tallest mountain, the world’s largest tree, the world’s biggest dairy herd, and the oldest living thing on earth. The giant Sequoia trees, some of the largest and oldest living things, are found in the Sequoia National Park.1
Location & Accessibility
Porterville is one of a relatively small number of medium-sized San Joaquin Valley communities that are not situated along State Route 99, the main corridor running through the heart of the state. Instead, Porterville lies some 30 miles to the east of Highway 99 at the intersection of State Routes 65 and 190.
This remoteness gives Porterville a unique character.
Both Route 65 and Route 190 connect to Route 99, which makes for relatively good accessibility for both truck and passenger traffic. There are several major truck carriers that provide daily service to the area 1 Tulare County Economic Development Corporation, www.sequoiavalley.com.
Appraisal Report – Porterville Municipal Airport Market Rents 12 as well as overnight service to the major metropolitan areas of California. The nearest port facilities are the Los Angeles harbor some 168 miles to the south and the Stockton port situated 193 miles northward.
General aviation and charter airplane services are available at the Porterville Municipal Airport.
Population Trends
While often viewed as the downtrodden sibling to California’s coastal powers, the San Joaquin Valley has emerged as an area on the rise as it has outpaced the Bay Area and Southern California in both population and economic growth. Of the twenty fastest-growing counties in the state, twelve are in the Valley. While many Valley counties have strong birth rates, suggesting residents planting roots in the region are doing so to have children in a place that is far more affordable than the coastal counties, the Valley is also seeing an influx of new residents from other parts of the United States. At the same time, the Bay Area and Southern California are losing tens of thousands of residents to other parts of the state and country.
California’s Department of Finance placed Tulare County’s population at 478,918 people as of January 2024, ranking it 17th in size amongst California’s 58 counties.
This is an increase of 0.9% or 4,238 people over the previous twelve months, and it distinguishes the area as the 8th fastest growing county in California during 2023.2 The state saw a 0.2% increase in population, the first such growth in four years following a period of significant exodus. The southern San Joaquin Valley contributed greatly to the state’s gains with all six of its counties showing population increases. Over the past ten years, Tulare County’s population has grown by 3.7% or a compounded rate of 0.4% per year, and it has continued to increase every year for more than 50 years.
Porterville registered a population of 62,934 people at the beginning of 2024 for an increase of 426 residents or 0.7% for the year. This ranks Porterville fifth amongst Tulare County cities for the rate of growth last year and establishes it as California’s 141st largest city.
Economy & Industry
The primary industry in Tulare County is agriculture and in 2023 the county ranked as the third highest grossing area in the United States with a total commodity value of $7.867 billion. This is a decline of $745.7 million or -8.7% from the prior year’s production value of $8.612 billion, which was an historic high, and it represents the fourth highest valuation on record.
Milk remains the county’s leading commodity with a value of $2.039 billion or 26% of the total crop value, and its $632.1 million reduction in value over the last year contributed greatly to the county’s loss. A 3.9% decrease in milk production coupled with a $7.00 per hundredweight fall in pricing led to the loss. While Tulare County is a leading milk producing area in the U.S., the local dairy industry is struggling under the weight of growing environmental regulations, rising labor 2 California Department of Finance, www.dof.ca.gov
Appraisal Report – Porterville Municipal Airport Market Rents 13 costs, and fluctuating milk prices, which have led some operators to relocate to other states or simply close their facilities.
Value declines were also seen for field crops (-26%), nursery products (-5%), and fruit and nuts (-2%), while increases were recorded for vegetables (46%), livestock and poultry (20%), and apiary products (14%).
Following milk at number one, other top crops included grapes ($997 million), cattle and calves ($911 million), oranges ($797 million), pistachios ($506 million), almonds ($388 million), tangerines ($366 million), lemons ($214 million), nectarines ($206 million), and corn ($196 million).
Tulare County’s crops provide food and fiber to nearly 90 countries throughout the world with the top export countries being China, Korea, Japan, Mexico, Taiwan, and India.3 Labor & Employment
Farm-related employment represents more than one-quarter of all jobs in Tulare County and it is perpetually the largest employment sector. Other sectors that make up the local economy include government, retail trade, manufacturing, educational and health services, leisure and hospitality, professional and business services, and construction.
Tulare County’s available labor pool was 212,300 people as of October 2024 with an unemployment rate of 9.8% for the month. This is higher than the 9.3% jobless level of the previous month, but is consistent with the 9.8% rate experienced a year ago. The job market made great strides in recovering from the peak unemployment level of 18.7% that was experienced in April 2020 when awareness of the COVID-19 virus became widespread, dropping to as low as 7.1% in May 2022, but more recently the economy has slowed and the jobless rate has risen again. For the month, Tulare County ranked 57th out of 58 counties in California for unemployment.
Porterville’s labor force was 26,500 workers in October 2024 with unemployment of 13.5% for the month.
This is similar to the 13.6% jobless level that was reported a month earlier, but is down from the 14.9% experienced a year ago. Some of Porterville’s largest employers include the Porterville Developmental Center, Porterville Unified School District, Walmart, and Sierra View Local Health Care District.
Real Estate Market
The local real estate market has generally been on an upward trend for more than a decade with only periodic pauses in property value appreciation before resuming its push higher to historic value levels.
The rate of value appreciation has slowed in the past two years due to sharp increases in interest rates and steep inflation, but the market has been resilient and property values been steady to increasing.
Previously, home values in Tulare County peaked in December 2005 with a median house price of $269,711, and the low point in the market was reached in April 2011 when house prices sat at a median level of just $111,600. Since the low point of the trough, house values have recovered nicely and in June 32023 Tulare County Crop and Livestock Report, September 2024, Tulare County Agricultural Commissioner/Sealer.
Appraisal Report – Porterville Municipal Airport Market Rents 14 2020 the median value stood at $270,000, eclipsing the previous record high for the first time. Since then, existing home prices have continued to rise reaching a new all-time high of $391,750 in October 2024.4 Commercial property values in the local market tend to follow similar trends to those being seen nationally. According to the October 2024 RCA Commercial Property Price Index, a published index that tracks price changes by examining re-sales of commercial properties across the United States, the aggregate index for the core property types (office, retail, industrial, and multifamily) in non-major metropolitan areas saw a 0.2% increase in property prices in the last month. Over the prior 12-month period the index is down -0.8%. “Commercial property prices continued to stabilize in October as the U.S. market gradually moves into recovery mode. . . . As the Federal Reserve began to implement rate cuts earlier this year, the uncertainty on inflation and borrowing costs, which had previously depressed transaction activity, started to diminish. Less uncertainty could foster greater alignment between buyers and sellers on asset pricing as we head into the new year.”5 Conclusions
In general, Tulare County and the city of Porterville are rural areas located in the center of California’s San Joaquin Valley agricultural region. Both experienced population growth in 2023, with Porterville once again showing gains after seeing losses in the two prior years. Unemployment levels remain some of the highest in California and have been trending higher over the last year as the economy slows. The commercial real estate market continues to show unrest as high interest rates, steep inflation, and the upcoming U.S. Presidential election cause uncertainty.
4 Median Prices of Existing Detached Homes, California Association of Realtors, www.car.org 5 RCA Commercial Property Price Indices, October 2024, Real Capital Analytics, www.rcanalytics.com.
Appraisal Report – Porterville Municipal Airport Market Rents 15
CITY LOCATION MAP
Appraisal Report – Porterville Municipal Airport Market Rents 16
NEIGHBORHOOD AREA INFORMATION
The neighborhood area where the subject properties are located is generally referred to as the airport district of Porterville. The Porterville Municipal Airport is an important and vital part of the community and it is the anchor of this neighborhood.
Boundaries & Location
The boundaries that delineate this neighborhood are State Route 190 on the north, Teapot Dome Avenue (Avenue 128) on the south, State Route 65 on the east, and Roads 216 and 224 on the west.
The neighborhood is situated in the southwest quadrant of Porterville’s urban area to the southwest of the intersection of State Routes 65 and 190. It is some 1½ miles southwest of the downtown central business district of the city, which is home to City Hall, the financial district, and an older retail and office area of town. The more modern retail district is found two miles to the north along Henderson Avenue.
The campus of Porterville College is 1¼ miles to the east.
Access & Linkages
Two of the main entrances to the city are State Routes 65 and 190. These public highways provide important linkages to other nearby communities as well as to major freeways like State Route 99, which runs through the heart of the San Joaquin Valley. State Route 65 helps to connect Porterville with Appraisal Report – Porterville Municipal Airport Market Rents 17 Bakersfield to the south and Visalia to the north, the two nearest population centers of over 100,000 people each.
Other important streets within the neighborhood include Scranton Avenue (Avenue 136), Westwood Street, Teapot Dome Avenue (Avenue 128), and Newcomb Street (Road 232). These roads carry much of the traffic in and through the neighborhood, and they cross or intersect with the surrounding highways.
Neighborhood History
The Porterville Municipal Airport was originally used as a military facility and aviation training area dating back to the time of World War I. The runway and surrounding land were owned and operated by the federal government. In 1948, the property was deeded to the City of Porterville following passage of the Surplus Property Act of 1944.
The city has continued to own and operate the airport since that time, and it now consists of some 940 acres of land. It is classified as a General Aviation Airport in the National Plan of Integrated Airport Systems (NPIAS), which refers to airports that do not receive scheduled commercial service. The airport has a single runway measuring 6,000 feet in length and 150 feet wide along with appropriate taxiways and aprons. Several different types and sizes of hangars are available along with open aircraft tie-downs.
Aircraft fueling services and a café also cater to pilots. Plans are now underway to lengthen the runway to 7,800 to accommodate larger aircraft, and in 2022 the city was awarded a $4.44 million grant from the Federal Aviation Administration to rehabilitate parallel taxiways and reconfigure connecting taxiways.
A variety of general aviation aircraft utilize the facility, including single- and multi-engine propellers, turbojet, and helicopters.6 The U.S. Forest Service and the California Department of Forestry and Fire Protection also jointly maintain a base of operations for firefighting in the nearby Sequoia and Kings Canyon National Parks.
In recent years, the city has been acquiring farmland in the immediate area of the airport. The purpose has been to provide land where effluent water from the city’s sewer treatment plant can be spread, but they have also made some efforts to encourage development of urban service commercial or industrial facilities that are compatible with the airport itself. While these efforts are bearing some fruit, much of the neighborhood remains rural in character with significant ongoing farming operations.
Urban Land Uses
The entire neighborhood area is now within Porterville’s urban area boundary, which is its sphere of influence, although not all properties are inside the urban development boundary that governs where annexations are allowed. With the urban development boundary, the General Plan designates a mix of Industrial, Industrial Park, Public/Institutional, Parks and Recreation, Residential, and Retail Center type uses.
6 Airport Layout Plan Narrative Report, prepared for the City of Porterville by Aries Consultants Ltd in association with Tartaglia Engineering, April 2006.
Appraisal Report – Porterville Municipal Airport Market Rents 18 Much of the existing urban development is centered around the airport where various aircraft, industrial, and public utility companies have located. Businesses engaged in aircraft maintenance and storage are found in a small business park next to the airport along with other companies doing light manufacturing, construction, or vehicle repair. Other businesses outside of the immediate airport environs include Young’s Trucking, Porterville Sheltered Workshop, SoCalGas, and Southern California Edison Company.
Public uses are often recreation oriented. This includes the Porterville Sports Complex, an 83-acre facility that offers soccer fields, baseball and softball diamonds, and an off-highway vehicle park. The Porterville Fairgrounds were also relocated to a 25-acre site in this neighborhood, and now the annual fair and other periodic exhibitions and events are held here. Recently, the County of Tulare completed construction of the South County Detention Facility, a 100,000-square-foot jail that can house 519 inmates that is located along Scranton Avenue, north of the airport.
Airport-related facilities include various airplane repair, maintenance, storage, fuel, and hangar buildings.
A restaurant and airplane fueling facilities situated just off the airport runway help to attract travelers, as there are few airports between Los Angeles and Sacramento that offer the convenience of both services.
One major project that opened in 2023 is the Eagle Mountain Casino. The Tule River Indian Tribe relocated its existing casino operations from their reservation about 15 miles away to a 40-acre site west of the airport. The new facility includes 105,000 square feet of casino gaming space along with several restaurants and lounges. Also being planned are a 250-room hotel, a 1,700-seat entertainment center, and a banquet hall and meeting space.
Residential land uses represent a relatively minor part of the neighborhood. They are mostly situated near the northeast corner where a rural subdivision was developed several decades ago. These homes are typically of low to fair quality and are in fair to poor condition. No new urban subdivision development has taken place in the neighborhood in recent years and the General Plan does not envision any expansion of residential uses into the area. While the General Plan does designate some lands along the highways as Retail Centers, no commercial development has yet taken place and none is reasonably expected for many years to come.
Rural Land Uses
Despite the growing impact of urban development on the neighborhood, much of the land area is still devoted to rural uses. Ample acreages of farmland are actively being used in the production of oranges, alfalfa, oat hay, wheat, and olives. Because of the neighborhood’s proximity to town, the area is also popular for rural residences and several homesites are scattered through the area, often on large farming properties.
Those lands that have not yet been annexed by the city continue to be controlled by the county, who has zoned them primarily for exclusive agricultural uses with 10 to 20-acre minimum parcel sizes. This zoning is intended to help protect the general welfare of the agricultural community from encroachments of unrelated uses.
Appraisal Report – Porterville Municipal Airport Market Rents 19 Tule Sub-Basin
The entire neighborhood is in the boundaries of the Tule Sub-basin, which was formed in the wake of California’s passage of the Sustainable Groundwater Management Act (SGMA) in September 2014. This act understands that local agencies are best positioned to assess the condition of their groundwater basins and take steps to bring them back into balance after chronic long-term overdraft.
The Tule Sub-basin has six groundwater sustainability agencies (GSAs) who are working together to coordinate activities throughout the sub-basin. Three GSAs overlap the neighborhood, with the Eastern Tule GSA (ETGSA) having the largest reach. This GSA is comprised of the City of Porterville, Porterville Irrigation District, Saucelito Irrigation District, Teapot Dome Water District, Vandalia Water District, Terra Bella Irrigation District, Kern-Tulare Water District, and the County of Tulare. In total, ETGSA encompasses 161,174 acres of land area, and more than half of the acreage does not receive surface water as part of an irrigation district or water system.
The Tule Sub-basin’s reliance on groundwater has led to overdraft of nearly 115,300 acre-feet per year, with ETGSA accounting for about 61,000 acre-feet or just over one-half of that total. In addressing the situation, ETGSA is establishing water budgets for landowners that will lead toward sustainability. While credits will be given for water banking, penalty fees will be imposed on users who exceed their allotment. Requirements to reduce groundwater pumping begin gradually during the first 10 years and then become more aggressive in the latter half of the transition period.7 “Overpumping of groundwater has depleted aquifers, dried up household wells and degraded ecosystems. The land is literally sinking, throttling the Friant-Kern Canal, a major artery that bisects the area on its way to bringing much-needed water south to farms and communities in Kern County.” The Friant-Kern Canal passes through the ETGSA, including much of the canal’s middle reach where the capacity correction project is planned, so ETGSA is now working to adopt a Land Subsidence Monitoring and Management Plan. This plan will implement measures necessary to minimize future non-recoverable land subsidence along the canal in the SGMA transition period from 2020 to 2040, and thereafter preclude subsidence entirely. Despite these efforts, ETGSA still anticipates that another three feet of subsidence to the canal will occur during the transition period, and as a result they have come to an agreement where they will fund up to $200 million in repairs to the canal.
The land subsidence plan proposes to establish managed areas where groundwater management actions may be different than those specified in ETGSA’s groundwater sustainability plan. The managed area will extend two miles east and west of the Friant-Kern Canal from the Tule River south to the southern boundary of the ETGSA, and 96 management zones will be established in this area. The land elevation in each management zone was measured as of January 2020, and as future subsidence occurs increasing limitations will be imposed on groundwater pumping.
7 In the heart of the San Joaquin Valley, two groundwater sustainability agencies try to find their balance, Water Education Foundation, Gary Pitzer and Douglas E. Beeman, January 29, 2021.
Appraisal Report – Porterville Municipal Airport Market Rents 20 Adjoining Areas
The neighborhoods to the north and east are similar to the subject’s rural land uses. They are comprised primarily of scattered rural homesites and production agriculture. Agriculture in the area includes oranges, olives, walnuts, alfalfa, oat hay, table grapes, and lemons. Some new urban residential development is also beginning to occur in this area.
The neighborhoods to the south and west of the subject’s neighborhood are outside of the Porterville city limits and urban planning boundary. They too are decidedly agricultural in nature. The Friant-Kern Canal passes through this area on a portion of its 152-mile course taking water from Millerton Lake to the Kern River.
Conclusion
The subject neighborhood is a remote industrial, public, and residential area of Porterville that is on the outskirts of town. For many years, the most prominent use was the Porterville Municipal Airport followed by open space and recreation facilities owned by the City of Porterville. With the Eagle Mountain Casino now open, there is additional interest being shown in the neighborhood and property values have risen in the past two years.
METHOD OF
VALUATION
Appraisal Report – Porterville Municipal Airport Market Rents 22
METHOD OF VALUATION
There are three approaches to value that are often used in appraisals for estimating market value, but market rent is more commonly determined using only a rental comparison approach. This is a derivation of the sales comparison approach, which is based on the principles of supply and demand, substitution, and balance; these principles often lead market participants to value properties based on the prices, or rents, being paid for other similar and competing properties in the local market. On this basis, the rental comparison approach seeks to estimate market rent for the subject properties by comparing them to the rental rates and terms being obtained for other airport-related properties that are either leased or being offered for lease.
Search for Comparable Data
In searching for comparable lease data for each of the subject’s different property types, research is done of other airport facilities in the Southern San Joaquin Valley of California. Useful information was obtained from seven public airports, all of which are owned and operated by local cities. These are general aviation facilities that do not offer any commercial passenger flights. The airports from which data is used in this appraisal are summarized below.
Visalia Municipal Airport encompasses 821 acres located near the interchange of State Routes 99 and 99.
It features a single runway that is 6,559 feet in length and 150 feet wide along with a 50-foot-wide fulllength taxiway. The airport previously had commercial aviation services provided by United Airlines, SkyWest, Great Lakes Airlines, SeaPort Airlines, and Scenic Airlines, but this ended in 2016. Now, the airport is used by freight carriers, private aviation, charter services, and aircraft maintenance and fueling providers. Facilities include a commercial terminal, a business aviation terminal, several public and private aircraft hangars, a fire station, a helicopter pad, and numerous open tie-down aprons for aircraft. The airport does not have an air traffic control tower, but does offer an instrument landing system and modern runway lighting.
Mefford Field Airport in Tulare is situated along State Route 99 highway at the southern end of the city, and it accommodates both local and transient aircraft. The 180-acre airport handles nearly 30,000 annual flight operations on its single runway, which measures 3,901 feet long by 75 feet wide. Other facilities include six hangar buildings, two 10-unit T-hangars, and twelve single-engine individual hangars.
Hanford Municipal Airport is found along State Route 198 highway on the eastern edge of the city, and it is the only publicly-owned airport in Kings County. The airport spans 295 acres and has a single runway that is 5,180 feet long by 75 feet wide; it is designed to accommodate aircraft with wingspans up to 79 feet and speeds up to 121 knots. West of the runway, a parallel taxiway and exit taxiways provide connections to the fixed base operator, aircraft parking and storage areas, and the fueling facility. A fixed base operator building is present along with box, shade, and T-hangars and an aircraft wash rack.
Delano Municipal Airport is a 520-acre facility situated along State Route 99 at the city’s southern end.
The runway is 5,659 feet long by 75 feet wide and is used on a regular basis by military, air charter, air ambulance, and other flying services. The city has a variety of hangars available for rent as well as land parcels. Aviation fueling is available by card lock system along with a terminal building.
Appraisal Report – Porterville Municipal Airport Market Rents 23 Bakersfield Municipal Airport is one of two publicly-owned aviation facilities in the city. While the larger Meadows Field Airport is the primary commercial airport handling both domestic and international flights, this is a smaller general aviation facility. It is in the central part of the city, some two miles east of State Route 99 highway. The airport grounds cover 253 acres and they accommodate a runway of 4,000 feet in length by 75 feet in width. It is home to more than one hundred aircraft. Facilities consist of 20 T-hangars, a hex hangar building, two box hangars, shade ports, a commercial hangar, a fixed base operator building, an airport office, and a fuel depot.
Reedley Municipal Airport is one of the smallest public airports in Fresno County and it is located four miles north of the city in a rural area. The airport encompasses 138 acres and has a single asphalt-paved runway that is 3,300 feet long and 60 feet wide. Hangars of different sizes are available along with aircraft tie-downs, and a fixed base operator handles fuel sales. The facility is used mostly for general aviation activities and is also home to Reedley College’s aviation education program.
Woodlake Airport spans just 87 acres and it is situated on the southern edge of town next to the St. John’s River. The airport’s single runway measures 3,000 feet in length and is 50 feet wide. Hangars and tiedowns are provided for storing aircraft and fueling is also available. This is also one of the few airports to have a restaurant, and the Runway Café is popular with both aviation enthusiasts and local residents.
AIRCRAFT HANGAR
BUILDINGS
Appraisal Report – Porterville Municipal Airport Market Rents 25
AIRCRAFT HANGAR BUILDINGS
The City of Porterville owns several hangar buildings and T-hangars that are designed to store aircraft.
They are summarized in the table below.
CITY-OWNED HANGAR BUILDINGS
Porterville Municipal Airport
Lot
No.
Hangar
Type
Building
Size – SF
Aircraft
Capacity
1 Enclosed Hangar 6,300 Multiple aircraft
2 Enclosed Hangar 6,300 Multiple aircraft
31-A Enclosed Hangar 4,720 Multiple aircraft
32-A Enclosed Hangar 5,400 Multiple aircraft
31-C T-Hangar 12,600 6 aircraft
32-B T-Hangar 2,100 1 aircraft
32-C T-Hangar 2,100 1 aircraft
32-D T-Hangar 2,100 1 aircraft
The larger enclosed hangars can hold multiple aircraft, while the T-hangars are designed for a single plane.
Each building spans the entire land parcel, which are typically rectangular in shape and have electricity, water, and sewer services available. They are accessed by asphalt drives that extend throughout the airport with electronic access-control gates at the various entrances to the airport grounds.
The buildings are one-story structures that are constructed over concrete slab-on-grade floors. The exterior walls have rigid steel or wood stud framing and they are covered with corrugated metal wall panels. Gable-style roofs cover the hangar buildings and the T-hangars have shed roofs. They are supported on metal or wood trusses and are topped with metal roof panels. The interiors of the buildings are largely unfinished and they have few, if any, partitions. One exception is the building on lot 1 that offers a small finished office area. The buildings differ in age, but they are typically of average quality and have been maintained in fair to average conditions.
Appraisal Report – Porterville Municipal Airport Market Rents 26
MAP OF HANGAR BUILDINGS
Appraisal Report – Porterville Municipal Airport Market Rents 27
MAP OF T-HANGARS
Appraisal Report – Porterville Municipal Airport Market Rents 28 View of the city-owned hangar buildings on lots 1 and 2.
View of the city-owned hangar building on lot 32-A.
Appraisal Report – Porterville Municipal Airport Market Rents 29 View of city-owned T-hangars.
Exterior view of a typical city-owned T-hangar.
Appraisal Report – Porterville Municipal Airport Market Rents 30
PROPERTY VALUATION
The rental comparison approach is used to value each of the hangar types separately.
Enclosed Hangar Buildings
Four of the surveyed airports reported rental information for enclosed hangar buildings. Additionally, lease information for one of the subject’s tenants has been provided. This data is summarized in the table below.
COMPARABLE RENTAL DATA
Enclosed Hangar Buildings
Airport
Location
Hangar
Size – SF
Monthly
Rent
Rent
per SF
Rent
Increases
Lease
Term
Hanford 8,100 $1,900.00 $0.23 Annual CPI Year-Year
Delano 1,380 $193.70 $0.14 Annual CPI 1 – 5 years
Visalia 4,375 $1,750.00 $0.40 Annual CPI 4 years
Bakersfield 800 $200.00 $0.25 Flat Year-Year
Porterville (31-A) 4,720 $154.19 $0.03 Annual CPI 10 years The information obtained from other airports indicates current rental rates of $0.14 to $0.40 per square foot per month, which is much higher than the $0.03 per square foot per month now being paid for one of the subject’s enclosed hangar buildings. Most of the leases specify annual rent increases based on changes in the Consumer Price Index (CPI). The leases tend to be for short periods, like one year, but in some instances tenants will sign for longer terms of 4 to 10 years.
The subject hangar building on lot 1 is a medium-aged structure and it includes some finished office space.
This warrants a rental rate near the middle of the surveyed range, so $0.25 per square foot per month is concluded. A similar building is on lot 2, but it lacks any office space, so a lower rental rate of $0.23 per square foot per month is determined to be reasonable.
The enclosed hangar buildings on lots 31-A and 32-A are older structures that offer no finished office space. These are some of the oldest buildings at the airport and their conditions are inferior to the other enclosed hangar buildings. This warrants a somewhat lower rental rate of $0.20 per square foot per month.
Thus, the following market rent conclusions are reached for the subject’s enclosed hangar buildings:
Lot 1 6,300 s.f. x $0.25 = $1,575.00 per month
Lot 2 6,300 s.f. x $0.23 ≈ $1,450.00 per month
Lot 31-A 4,720 s.f. x $0.20 ≈ $945.00 per month
Lot 32-A 5,400 s.f. x $0.20 = $1,080.00 per month
Appraisal Report – Porterville Municipal Airport Market Rents 31 T-Hangar Buildings
T-hangar are popular at many of the airports for storing aircraft out of the elements. Five surveyed airports provided details of their rents for this type of space, as shown below. The table also includes the subject’s T-hangars that are currently leased.
COMPARABLE RENTAL DATA
T-Hangar Buildings
Airport
Location
Monthly
Rent
Rent
Increases
Lease
Term
Hanford $194.00 None Month-Month
Delano $184.22 None 1 – 5 years
Bakersfield $180.00 None Month-Month
Reedley $247.00 None Month-Month
Woodlake $200.00 None Month-Month
Porterville (32-B) $68.60 Annual CPI 10 years
Porterville (32-C) $68.60 Annual CPI 10 years
Porterville (32-D) $68.60 Annual CPI 10 years
The comparable data reflects rents of $180.00 to $247.00 per month. Most of these are month-to-month leases without a fixed term, so they do not have any scheduled rent increases.
Three of the subject’s T-hangars are leased and they are all paying $68.60 per month. As before, this is much lower than the comparable airports are bringing. The primary difference is that these are for 10- year terms with annual rental increases based on the CPI index.
In the end, market rent of $200.00 per month is concluded for the subject’s city-owned T-hangars buildings.
RESTAURANT
BUILDING
Appraisal Report – Porterville Municipal Airport Market Rents 33 AIRWAY CAFÉ BUILDING
The Airway Café restaurant is a freestanding building located at the main entrance to the Porterville Municipal Airport. It is owned by the City of Porterville and was previously used as an administrative office for the airport, but it is now entirely used by a restaurant tenant.
Property Description
The café does not occupy its own land parcel, but it utilizes approximately 20,000 square feet of site area and has access to a shared parking lot at the front of the airport grounds. The site is level in topography and receives all public utility services.
The building is a one-story structure containing 3,123 square feet. It is built atop a concrete perimeter foundation with a concrete slab floor. Exterior walls are formed by concrete block, while the roof overhead has both flat and shed-style sections that are finished with composition materials. Glass storefront doors are placed at the entrances and windows provide natural light and views.
The building’s interior is divided into an open waiting room/pilots lounge, two dining rooms, a commercial kitchen, two restrooms, and a small office. Floors are covered with luxury vinyl plank and vinyl composition tile, walls are framed with wood studs covered with sheetrock, and the ceilings are also finished with sheetrock. Central heating and cooling are supplied to the building and ceiling fans help to circulate the air.
It is not known when the building was constructed, but it is estimated to have an effective age of 50 years old. The quality of construction is rated as average and the building is in average condition.
Property Valuation
The subject property is currently leased for a 5-year term that will expire on March 31, 2027, and the tenant has one 5-year renewal option. Base rent is currently $1,403.29 per month or $0.45 per square foot. No rent increases are specified. The structure of the lease is also not clarified, but it is believed to be modified gross, which requires to the tenant to also pay for utilities and premises maintenance expenses.
A few of the surveyed airports have restaurant facilities, but most of these are ground leases. The only building lease discovered is at the Woodlake Airport. The Runway Café is a 1,200-square-foot restaurant that serves breakfast and lunch. They are now paying rent of $1,800.00 per month, which is equal to $1.50 per square foot on a modified gross basis. The rent increases $50 per month (about 2.78%) each year.
This facility is very similar to the subject property, although it is considerably smaller. While larger buildings tend to command lower rental rates, the subject’s current rent of $0.45 per square foot is below a market level. A market-oriented rental rate of $1.25 per square foot is concluded, which translates to a rounded rental of $3,900.00 per month. The lease would be for a term of at least five years with annual rent increases of 2% to 3%. It would be structured on a modified gross basis.
Appraisal Report – Porterville Municipal Airport Market Rents 34
AERIAL PHOTOGRAPH
Appraisal Report – Porterville Municipal Airport Market Rents 35 Front view of the Airway Café building.
Interior view of the restaurant showing one of the dining rooms.
AVIATION-RELATED
GROUND LEASES
Appraisal Report – Porterville Municipal Airport Market Rents 37
AVIATION-RELATED GROUND LEASES
There are several land parcels that are part of the airport facility that are available to be leased for aviation-related uses. These include small pad sites suitable for constructing a hangar building or T-hangar as well as larger parcels that can support larger hangar buildings. The City of Porterville leases the ground and allows the lessee to construct their own improvements.
Small Land Parcels
This appraisal includes the valuation of 30 small land parcels that are summarized in the table below.
SMALL AVIATION-RELATED LAND PARCELS
Porterville Municipal Airport
Lot
No.
Land
Area – SF
Lot
No.
Land
Area – SF
34-A 2,350 44-B 4,200
34-B 2,350 44-C 4,200
34-C 2,350 45 5,180
34-D 2,350 46-A 3,220
34-E 2,350 46-B 3,080
34-F 2,350 46-C 3,780
36 4,200 46-D 3,780
37 4,200 46-E 3,220
38 4,200 47 6,271
39 4,200 49-A 2,600
40 4,200 49-B 2,700
41 4,200 60 3,240
42 4,200 61-A 4,320
43 4,200 61-B 3,844
44-A 4,200 61-C 3,844
These parcels are clustered at the northern end of the airport just east of the taxiway. They range in size from 2,350 to 6,271 square feet and can support buildings of equal size. These are finished parcels that have level topographies and are ready for building construction. Utilities are available and asphalt-paved drives lead to them from the security-gated airport entrances.
Large Land Parcels
Twelve larger-sized vacant land parcels that can support bigger buildings are also available at the Porterville Municipal Airport. Seven of these parcels are situated near the middle of the airport facility, while the other five are at the northern end amongst the small land parcels. These sites are typically rectangular in shape and they have level topographies. Utilities are readily available and the parcels are ready for building construction. They are accessible by way of the system of asphalt-paved driveways and Appraisal Report – Porterville Municipal Airport Market Rents 38 aprons that serve the airport. The parcels range in size from 11,400 to 34,202 square feet and they are summarized in the table below.
LARGE AVIATION-RELATED LAND PARCELS
Porterville Municipal Airport
Lot
No.
Land
Area – SF
Lot
No.
Land
Area – SF
6 30,000 17 15,422
7 34,202 30-A (1,2,3) 18,760
8 11,400 30-B 14,000
9 18,750 31-B 14,000
10 18,750 33 14,000
12 22,200 35 14,000
Additionally, a 28± acres of land at the southern end of the airport is ground leased to CalFire and the U.S.
Forest Service as the site for an air attack base for fighting fires in the nearby southern Sierra Nevada Mountains and national forests. The interagency base has existed for several decades and is improved with several buildings housing offices, a communications center, crew quarters, vehicles, and equipment.
The site has extensive paving for a parking lot, taxiways, and helicopter pads.
The site is irregular in shape and has frontage along Newcomb Street. Access is available from Newcomb Street and from within airport by way of taxiways and aprons. The land is level in topography and appears to have stable soils. All public utilities are available and extended to the site.
Appraisal Report – Porterville Municipal Airport Market Rents 39
MAP OF SMALL AVIATION LAND PARCELS
Appraisal Report – Porterville Municipal Airport Market Rents 40 Exterior view of some small hangar ground lease parcels that have been improved with private hangars.
View of a vacant small land parcel available for ground lease.
Appraisal Report – Porterville Municipal Airport Market Rents 41
MAP OF LARGE AVIATION LAND PARCELS
Appraisal Report – Porterville Municipal Airport Market Rents 42 View of a large land parcel that is ground leased
and improved with a private hangar.
View of a ground leased large land parcel that is improved with buildings.
Appraisal Report – Porterville Municipal Airport Market Rents 43
AERIAL OF AIR ATTACK BASE SITE
Appraisal Report – Porterville Municipal Airport Market Rents 44 View of the Air Attack Base site
looking northeast across the parcel.
View of the vacant portion of the Air Attack Base
looking northwest across the site.
Appraisal Report – Porterville Municipal Airport Market Rents 45
PROPERTY VALUATION
Once again, the rental comparison approach is employed to estimate market rent for the subject parcels.
Small Land Parcels
Of the similar airports that have been surveyed for this appraisal, three of them have provided information about ground leases for smaller-sized land parcels. These are shown in the table below.
COMPARABLE RENTAL DATA
Small Land Parcels
Airport
Location
Parcel
Size – SF
Annual
Rent
Rent
per SF
Rent
Increases
Lease
Term
Hanford 1,600 – 5,000 $850 – $1,995 $0.40 - $0.45 Annual CPI 15 – 25 years Woodlake 2,000 $1,380 $0.69 Annual CPI 20 years
Delano 2,665 – 3,360 $2,653 – $2,690 $0.80 - $1.00 2% Annual 2 – 5 years Porterville 2,350 – 6,271 Varies $0.39 Annual CPI 5 – 15 years Many of the subject’s small land parcels are also leased. These tenants are all paying $0.39 per square foot per year with annual increases based on the change in the CPI. These leases are for 5 to 15-year terms with 10 to 15 years being most common; some tenants also have 5-year renewal options available.
The contract rental rate being paid for the subject’s small land parcels is below all the other similar airports. There is a wide span of rents being paid elsewhere, ranging from $0.40 to $1.00 per square foot per year with a midpoint of around $0.70 per square foot. The Porterville Municipal Airport compares well with the others, so a rental rate that is somewhat above the survey’s midpoint is reasonable and $0.80 per square foot per year is concluded. The individual market rents are summarized below.
GROUND RENT CONCLUSIONS
Small Land Parcels
Lot
No.
Land
Area – SF
Annual
Rent
Lot
No.
Land
Area – SF
Annual
Rent
Lot
No.
Land
Area – SF
Annual
Rent
34-A 2,350 $1,880 40 4,200 $3,360 46-C 3,780 $3,024
34-B 2,350 $1,880 41 4,200 $3,360 46-D 3,780 $3,024
34-C 2,350 $1,880 42 4,200 $3,360 46-E 3,220 $2,576
34-D 2,350 $1,880 43 4,200 $3,360 47 6,271 $5,017
34-E 2,350 $1,880 44-A 4,200 $3,360 49-A 2,600 $2,080
34-F 2,350 $1,880 44-B 4,200 $3,360 49-B 2,700 $2,160
36 4,200 $3,360 44-C 4,200 $3,360 60 3,240 $2,592
37 4,200 $3,360 45 5,180 $4,144 61-A 4,320 $3,456
38 4,200 $3,360 46-A 3,220 $2,576 61-B 3,844 $3,075
39 4,200 $3,360 46-B 3,080 $2,464 61-C 3,844 $3,075
Appraisal Report – Porterville Municipal Airport Market Rents 46 Large Land Parcels
For the subject’s larger-sized land parcels, data has been obtained from four similar airports. Their reported rental rates and terms are shown in the following table.
COMPARABLE RENTAL DATA
Large Land Parcels
Airport
Location
Parcel
Size – SF
Annual
Rent
Rent
per SF
Rent
Increases
Lease
Term
Hanford Over 5,000 $2,035 $0.40 Annual CPI 15 – 25 years Bakersfield 15,600 $2,800 $0.18 Annual CPI 15 years
Reedley 11,250 $3,600 $0.32 Annual CPI 30 years
Visalia 43,560 – 65,000 $11,326 – $28,080 $0.26 – $0.43 Annual CPI 20 – 35 years Porterville 11,400 – 34,202 $1,540 – $13,407 $0.11 – $0.39 Annual CPI 10 – 20 years All but one of the subject’s large land parcels are now ground leased. Current contract rents range from $0.11 to $0.39 per square foot per year and they average $0.24 per square foot. There appears to be little correlation between the size of the parcels and the rental rate. Leases tend to be for 10 to 20-year periods, and some tenants have been granted the option to extend for another 10 to 20 years. Rents are to be adjusted annually based on the CPI.
Five of the subject’s tenants are paying $0.39 per square foot per year and these parcels span the full range of sizes from 11,400 to 34,202 square feet of land area. This rate is within the range reported by the other surveyed airports and is determined to be market oriented. As a result, a market level ground lease rate of $0.39 per square foot is concluded for the subject’s large parcels as summarized below.
GROUND RENT CONCLUSIONS
Large Land Parcels
Lot
No.
Land
Area – SF
Contract
Rent
Market
Rent
Lot
No.
Land
Area – SF
Contract
Rent
Market
Rent
6 30,000 $3,270 $11,700 17 15,422 $6,045 $6,015
7 34,202 $13,407 $13,339 30-A (1,2,3) 18,760 $7,354 $7,316 8 11,400 $4,469 $4,446 30-B 14,000 $1,806 $5,460
9 18,750 $3,802 $7,313 31-B 14,000 Vacant $5,460
10 18,750 $2,119 $7,313 33 14,000 $1,540 $5,460
12 22,200 $2,509 $8,658 35 14,000 $5,488 $5,460
Appraisal Report – Porterville Municipal Airport Market Rents 47 Air Attack Base Site
The Air Attack Base site has substantially more land area than the subject’s other large land parcels and a new data set is necessary to estimate market rent for it. The table below details information on existing ground leases and the asking rates for large acreage parcels in the San Joaquin Valley. Four of the data items are at airports, while the data item in Fresno has no airport proximity.
COMPARABLE RENTAL DATA
Large Acreage Ground Leases
Airport
Location
Parcel
Size – Acres
Annual
Rent
Rent
per Acre
Rent
Increases
Lease
Term
Property
Use
Visalia 1.21 $34,376 $28,410 Annual CPI 50 years Hotel
Porterville 34.72 $124,715 $3,592 Annual CPI 21 years Solar Farm Fresno 6.16 $129,892 $21,086 +2% per year 5 years Truck Yard Delano 28.60 $143,555 $5,019 +2% per year 5 years Yard Space Visalia 5.00 $33,977 $6,795 Annual CPI 25 years Available The subject site has approximately 28 acres of land area and benefits from its street frontage and utility availability. The comparable data shows a strong inverse relationship between rental rates and land area, with the data item in Delano being most comparable in size. Considering the scale of the subject property and its physical and locational features, a market-oriented rental rate of $5,000 per acre is concluded.
This is multiplied by the size of the parcel to arrive at the following total rent indication:
Land Area x Ground Lease Rate = Total Market Rent
28.00 acres x $5,000 = $140,000 per year
FARMLAND
LEASES
Appraisal Report – Porterville Municipal Airport Market Rents 49
FARMLAND LEASES
There are several parcels in and around the Porterville Municipal Airport that can be farmed. Some of these properties are irrigated land, which greatly increases the types of crops that can be grown, while others are dry farmed with no source of irrigation water other than natural rainfall.
Irrigated Farmland Parcels
Two parcels of irrigated farmland are included in this appraisal. Both are adjacent to Porterville Municipal Airport, but they are outside of its secure fenced perimeter.
Scranton & Westwood
The first is a 160.62-acre parcel (APN 302-480-001) located at the northwest corner of Scranton Avenue and Westwood Street, and it is north across the street from the airport. The square-shaped property has one-half mile of frontage along both streets. The land has been leveled for flood irrigation of crops and the site is at-grade to slightly below the height of the fronting streets. Electrical service has been extended to the property.
Water is distributed around the property using an underground pipeline that runs along the east property line as well as by earthen furrows. Water is delivered to the site by a pressurized line from the City of Porterville’s sewer treatment facility, and it can only be used for growing crops for non-human consumption. The availability and volume of this effluent water varies from day to day, but the tenant is in control of when and where the water is distributed over the property. The land has historically been used to grow field crops, like alfalfa and silage corn.
Sports Complex Lot
The second property is an irregular-shaped site that is now used as part of the Porterville Sports Complex.
It is located at the complex’s main entrance along the south side of Scranton Avenue, east of West Street (portions of APNs 302-110-054, 302-110-074, 302-110-076). The property has 35.23 acres of land area.
Access comes from a single drive approach along Scranton Avenue, and curb and gutter off-site improvements are in place along the street frontage. All public utilities are available to service the property. The land is at-grade with the street height and it has a mostly level topography.
A portion of the site is paved with concrete for use as a parking lot by the sports complex, and there are 331 striped parking stalls. Additional parking for the complex comes from a dirt lot with a light decomposed granite topping. Some landscaping is in place, including grass, trees, and shrubs that are irrigated by sprinklers. A decorative monument sign at the entrance identifies the complex. It is assumed in this appraisal that all the improvements are the property of the Porterville Parks and Recreation Department, and the lessees will or can be required to remove these improvements and return the land back to a vacant, level, and environmentally-clean condition once the ground lease ends.
Appraisal Report – Porterville Municipal Airport Market Rents 50 Dry Farmland Parcels
There are several dry farmland parcels that are included in this appraisal, and they are identified as three properties.
Parachute Landing Site
The first property is an irregular-shaped site situated within the airport’s fenced perimeter to the west of the runway (portion of APN 302-110-076). This is open vacant land containing 179± acres. It is now leased for use as a parachute landing field, but could be dry farmed. It has a level topography and the soils are suitable for growing field crops, but no source of water for irrigation is provided.
Farmed Airport Land
The next property is comprised of seven noncontiguous parcels situated around the perimeter of the runway, both inside and outside the airport’s fence line. These parcels range in size from 3.31 to 65.90 acres and they combine for a total land area of 149.93 acres. While not physically adjoining, these parcels are near each other and are typically farmed together to create a viable property. They are level in topography and have soils that can grow field crops, but no water for irrigation is available. Access is available from Scranton Avenue, Newcomb Street, and Teapot Dome Avenue.
Sewer Sludge Site
The third property is the 16.00-acre site located on the western edge of the airport. Access comes from Road 224 that leads north from Teapot Dome Avenue to a gravel road leading to the site. This property is used as part of Porterville’s sewage treatment facility and it has lined beds where treated sewer sludge is piped and then dried out for eventual use as fertilizer. Each of the beds has earthen banks and they are concrete lined to limit percolation of nitrates and other elements into the soil. A monitoring well is in place to help determine if any contamination is present. The site is fenced around its perimeter with chain link and gates provide access.
Appraisal Report – Porterville Municipal Airport Market Rents 51
AERIAL OF FARMLAND PROPERTIES
Appraisal Report – Porterville Municipal Airport Market Rents 52 View of the irrigated farmland property
at the northwest corner of Scranton Avenue and Westwood Street.
View of the irrigated farmland parcel
used as parking for the Porterville Sports Complex.
Appraisal Report – Porterville Municipal Airport Market Rents 53 View of the dry farmland parcel used as a parachute landing field on the interior of the airport to the west of the runway.
View of a sewer sludge bed on the dry farmland property situated on the west edge of the airport grounds.
Appraisal Report – Porterville Municipal Airport Market Rents 54 View of dry farmland situated northeast of the runway
on the interior of the airport grounds.
View of dry farmland located at the
southeast corner of Newcomb Street and Teapot Dome Avenue.
Appraisal Report – Porterville Municipal Airport Market Rents 55
PROPERTY VALUATION
Market research is performed to find appropriate data for use in applying the rental comparison approach to the subject farmland properties.
Irrigated Farmland Parcels
Just two of the surveyed airports have irrigated farmland that is leased and this data is summarized in the following table. One of the subject properties is also included in a farmland lease involving additional acreage, and it all receives reclaimed water for irrigation purposes.
COMPARABLE RENTAL DATA
Irrigated Farmland Parcels
Airport
Location
Parcel
Size – Acres
Annual
Rent
Rent
per Acre
Rent
Increases
Lease
Term
Delano 432.00 $54,913 $127 +2% per year 5 years
Delano 253.00 $43,128 $170 +2% per year 5 years
Visalia 89.00 $21,054 $237 Annual CPI 40 years
Porterville 573.36 $94,604 $165 Flat over term 5 years
Additionally, consideration is given to a survey published by the California Chapter of the American Society of Farm Managers and Rural Appraisers. This study surveys local appraisers and farm managers about property values and rental rates for various types of agricultural properties. The survey indicates that rental rates for cropland in Tulare County commonly leases in a range of $200 to $500 per acre per year cash rent.
The subject’s farmland parcels do receive water, but it is reclaimed from the sewer treatment facility and can only be used for crops that will not be consumed by humans. This significantly limits the types of crops that can be grown, so it reduces the desirability of the farmland. The current contract rent being paid is below the published survey, but is within the range seen at the other airports, so it is concluded to be market oriented.
Applying a market-level rent of $165 per acre to each of the two subject properties results in the following total values:
Scranton & Westwood 160.62 acres x $165 ≈ $26,500.00 per year Sports Complex Lot 35.23 acres x $165 ≈ $5,815.00 per year Appraisal Report – Porterville Municipal Airport Market Rents 56 Dry Farmland Parcels
Leases are in place for two of the subject properties. The parachute landing site is leased to Skydive Elsinore, who uses it as part of the training program. They have a 5-year lease that runs through March 2025 and then they have two 5-year renewal options. The base rent now stands at $7,234.82 per year or $40.42 per acre for the 179-acre site. The rent is adjusted annually based on the change in the CPI.
The farmed airport land is leased to Rick Perigo Roadsiding. The agreement is for a 5-year term that ends in December 2024, but the tenant has the option to extend for another five years after that. A base rent of $35.00 per acre per year cash rent is being paid with no scheduled increases over the term.
None of the other airports that were surveyed report having any dry farmland leases, although one airport indicates that they allow a farmer to use some of the land adjacent to their runway at no cost in exchange for maintaining the land and keeping it free of weeds.
According to the U.S. Department of Agriculture, cash rent for non-irrigated cropland in Tulare County in 2024 averages $43.50 per acre per year. This is up from an average of $32 per acre per year in 2021.
Conversations with farmers and agricultural appraisers have not produced any specific lease data, but they do confirm these rents levels are common in the Tulare County market.
Based on this evidence, a market rent of $40 per acre per year is concluded for the parachute landing site and the sewer sludge site. A somewhat lower rental rate of $35 per acre per year is estimated for the farmed airport land because it consists of multiple, noncontiguous parcels that are very irregular in shape.
This makes farming the land more difficult. Thus, the following values are concluded:
Parachute Landing Site 179.00 acres x $40 = $7,160.00 per year Farmed Airport Land 149.93 acres x $35 ≈ $5,250 per year Sewer Sludge Site 16.00 acres x $40 = $640.00 per year
ADDENDA
Appraisal Report – Porterville Municipal Airport Market Rents 58 QUALIFICATIONS OF ROSS E. LENZ
MAI
Professional Designation & Certification
• MAI designation – Member of the Appraisal Institute
• California Certified General Real Estate Appraiser: Certificate No. AG043508 Education
• California State University, Fresno: 2006 Graduate, B.S. Degree, Business Administration - Entrepreneurship • Appraisal Institute:
Basic Appraisal Principles
Basic Appraisal Procedures
Real Estate Finance, Statistics, and Valuation Modeling General Appraiser Market Analysis and Highest & Best Use General Appraiser Sales Comparison Approach
General Appraiser Site Valuation and Cost Approach
General Appraiser Income Approach, Part 1
General Appraiser Income Approach, Part 2
General Appraiser Report Writing and Case Studies
Advanced Income Capitalization
Advanced Market Analysis and Highest & Best Use
Advanced Concepts and Case Studies
Quantitative Analysis
National Uniform Standards of Professional Appraisal Practice (USPAP) 7-Hour USPAP Update
Business Practices & Ethics
• International Right of Way Association:
Appraisal of Partial Acquisitions
Appraisal Experience
Actively engaged in real estate appraisal in the Central Valley since 2006. Has appraised or assisted in appraising many types of commercial, office, industrial, land, and special purpose type properties. A partial list of clients for whom work has been completed includes:
• Government: U.S. Postal Service, County of Tulare, City of Visalia, City of Tulare, City of Porterville, City of Woodlake, City of Lindsay
• Schools: Visalia Unified, Exeter Public Schools, College of the Sequoias, San Joaquin Valley College, Tulare Joint Union High School District
• Lenders: Bank of the Sierra, Central Valley Community Bank, Mission Bank, Bank of the West, Tri Counties Bank, Citizens Business Bank, Wells Fargo Bank, Suncrest Bank, Comerica Bank, Farm Credit West, Heritage Bank of Commerce, Central State Bank, Pacific Alliance Bank, Valley Republic Bank, Fresno First Bank, United Midwest Savings Bank, Pinnacle Capital
Appraisal Report – Porterville Municipal Airport Market Rents 59 • Corporations: Southern California Edison Company, Nationwide Mutual Insurance Company, Lyles Diversified, Mid Valley Disposal, OSAT Inc., Owens Valley Career Development Center, Self-Help Enterprises, California Water Service Co., Visalia Senior Housing, Young’s Commercial Transfer
• Attorneys: Peltzer & Richardson, Herr Pedersen & Berglund, Betts & Wrigth, Reynolds Jensen & Swan, Preston Law Office, Gromis & Aguirre, McCormick Kabot Jenner & Lew, Sullivan McGregor & Doerr, Lozano Smith
• Health Care: Kaweah Health, Tulare Regional Medical Center, Sierra View Local Health Care District, Family HealthCare Network, Tulare Community Health Clinic, Visalia Medical Clinic
• Churches: Baptist, Praise Center, Calvary Chapel, New Hope, Nazarene, Grace Community, Living Christ, Radiant, Living Word Fellowship, Landmark Christian Center, Abounding Grace
• Right-of-Way Firms: Universal Field Services, Hamner Jewell & Associates, Overland Pacific & Cutler • Other: Visalia Rescue Mission, International Agri-Center, YMCA, Exeter Masonic Temple Association, Valley Oak SPCA
Appraisal Report – Porterville Municipal Airport Market Rents 60 QUALIFICATIONS OF KEITH J. HOPPER
MAI, R/W-AC, AI-GRS
Professional Designations & Licenses
• MAI designation – Member of the Appraisal Institute
• R/W-AC designation – Appraisal Certification of the International Right of Way Association • AI-GRS designation – General Review Specialist of the Appraisal Institute • California Certified General Real Estate Appraiser: Certificate No. AG002559 • California Real Estate Broker’s License: License No. 01105905 Education
• California State University, Fresno: B.S. Degree, Business Admin. - Real Estate and Urban Land Economics • Appraisal Institute:
Real Estate Appraisal Principles & Basic Valuation Procedures Capitalization Theory & Techniques
Case Studies in Real Estate Valuation
Report Writing and Valuation Analysis
Standards of Professional Practice, National USPAP Update, & California Laws and Regulations Advanced Sales Comparison and Cost Approaches
Land Valuation Assignments and Adjustment Procedures & Subdivision Valuation General Appraiser Market Analysis and Highest & Best Use Real Estate Finance, Statistics, and Valuation Modeling Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) Litigation Professional Development Program:
Litigation Valuation Overview
Litigation Appraising – Specialized Topics and Applications Condemnation Appraising
Advanced Condemnation Appraising
Review Theory – General
IRS, Loss, Gift & Estate Valuations
• International Right of Way Association:
Ethics and the Right of Way Profession & Standards of Practice for the Right of Way Profession Principles of Real Estate Appraisal
Appraisal of Partial Acquisitions
Easement Valuation & Legal Aspects of Easements
Reviewing Appraisals in Eminent Domain
Problems in the Valuation of Partial Acquisitions
Corridor Valuation
• American Society of Farm Managers and Rural Appraisers:
Integrated Approaches to Value
Best Practices for Rural Property Appraisals
Highest and Best Use
Valuation of Permanent Plantings in Changing Markets
Appraisal Report – Porterville Municipal Airport Market Rents 61 Appraisal Experience
Actively engaged in appraisal in the Central Valley since 1989. Appraised many types of commercial, industrial, residential, apartment, subdivision, land, agricultural, and special purpose properties. Clients include:
• Government: U.S. Postal Service, U.S. Navy, U.S. Marshall’s Office, Calif. Dept. of Forestry, Calif.
Dept. of Transportation, Resolution Trust Corp., Federal Deposit Insurance Corp., County of Tulare, County of Kings, Administrative Office of the Courts • Cities: Visalia, Tulare, Porterville, Dinuba, Exeter, Woodlake, Lindsay, Farmersville, Hanford, Kingsburg, Bakersfield, Reedley
• Schools: Visalia Unified, Hanford Elementary, Central Valley Christian, College of the Sequoias, Tulare City Schools, Tulare High School District, Liberty Elementary, Porterville Unified, Burton School District, Alta Vista School District, Tulare County Office of Education
• Lenders: Wells Fargo, Union Bank, J.P. Morgan, Bank of the Sierra, Comerica Bank, Westamerica Bank, Key Bank, Rabobank, Housing Capital Co., Citizens Business Bank, Premier Valley Bank, RBC Builder Finance, Farm Credit West, Kingsburg Land Bank, Bank of the West, Suncrest Bank, Central Valley Community Bank, Evangelical Christian Credit Union, United Security Bank, Mission Bank, Tri Counties Bank, Fresno First Bank
• Corporations: Kraft General Foods, Chevron USA, McDonald’s Corp., Wal-Mart Stores, Campbell Soup Co., Pepsi Cola Co., Southern Pacific Railroad, Jostens, Payless Cashways, Frito Lay, Southland Corp., RR Donnelley, Leprino Foods, California Dairies, Sun Maid
• Insurance Companies: Nationwide Mutual Insurance Co., Chicago Title Insurance Co., Ticor Title Insurance Co., Fidelity National Title Co., Westchester Casualty • Attorneys: McGregor Dahl Sullivan & Klug, Navy Exchange Service Command, Johnson & Black, Hurley & Laird, Williams Jordan & Broderson, Paul Hastings Janofsky & Walker, Houk & Hornburg, Baker Manock & Jensen, Griswold LaSalle Cobb Dowd & Gin, Dowling Aaron & Keeler, Herr Pedersen & Berglund, Peltzer & Richardson, Hooper Lundy & Bookman, McCormick Barstow, Kahn Soares & Conway, Ruddell Stanton & Bixler, Sullivan McGregor & Doerr, Lozano Smith • Utilities: Southern California Edison, California Water Service Co., Southern California Gas • Right-of-Way Firms: Universal Field Services, Bender Rosenthal, Paragon Partners, Tarvin & Associates, Hamner Jewell & Associates, Overland Pacific & Cutler, Monument • Churches: Methodist, Baptist, Calvary Chapel, Nazarene, Mennonite, Catholic, Lutheran, Grace Community, Living Christ, Bethel Assembly, New Hope, Praise Center • Health Care: Kaweah Health, Tulare Regional MC, Sierra View District Local HCD, Tulare Community Health Clinic, Visalia Medical Clinic, Family Health Care Network • Other: YMCA, Farm Bureau, Housing Authority, Tulare Irrigation District, International Agri-Center, Visalia Rescue Mission, Owens Valley CDC
Litigation Experience
Appraised properties on behalf of private and public agency clients for eminent domain, bankruptcy, divorce, and other matters involving litigation. Have given depositions, appeared at mediation and arbitration hearings, and qualified as an expert witness in Tulare County, Kings County, and Kern County Superior Courts; Kings County Board of Equalization; and Federal Bankruptcy Court.
Condemnation Experience
Appraised hundreds of properties involved in full or partial takings on behalf of public agencies, right-of-way firms, law firms, and private property owners. Projects have included road widenings, bridges, overcrossings and undercrossings, utility installations, permanent and temporary easements, railroad corridors, lake expansions, and others.
1 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT (draft rev 012725) This AIRPORT GROUND LEASE (this "Lease") is entered into as of this day of , 20 , by and between the City of Porterville
("City"), and , ("Lessee").
RECITALS
WHEREAS, City owns and operates a federally funded and obligated airport within the jurisdictional boundaries of City, commonly known as the (the "Airport"); and
WHEREAS, Lessee desires to lease a portion of the Airport for the purpose of operating and maintaining an aircraft storage hangar constructed before; and WHEREAS, City desires to lease such portion of the Airport to Lessee under the terms and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, incorporating the foregoing Recitals herein, it is mutually agreed as follows:
Name of Lessee:
_ _ Individual
Business Entity
Type of Entity and State of Organization:
Address:
City/State/Zip:
Phone Number:
Alternate Number:
Email:
A/R Account Number:
1. Term. The term of this Lease shall be for a period not to exceed five (5) years, commencing on (the “Commencement Date”), and ending on (the “Expiration Date”), unless sooner terminated as provided in this Lease (the “Initial Term”).
Lessee shall have the right to renew this Lease for four (4) successive five (5) year periods (each a “Renewal Term”) provided that the Renewal Conditions, as defined herein 2 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
below, are met for each such Renewal Term.
“Renewal Conditions” as used herein shall mean the following:
(a) An inspection of the Premises is conducted by the City; (b) Lessee is not then in Default (as defined in Section 20 herein) of this Lease; (c) No more than two (2) events of Default (as defined in Section 20 herein) shall have occurred during the five (5) year period prior to the date of expiration of the thencurrent Initial Term or Renewal Term; (d) The Hangar is in good and operable repair, in accordance with California Department of Industrial Safety and Fire Codes, which may apply to aircraft hangar storage and other applicable federal, state and local laws and ordinances, including exterior painting, wiring and structural repairs made as necessary; (e) City has not elected to use the Premises for any purpose other than construction, installation, maintenance and repair of an aircraft storage hangar; (f) In addition to annual Consumer Price Index adjustments, in order to keep lease rates in line with fair market values throughout the life of the lease; base rent adjustments, if necessary, will be made with adjustments to be determined by an appraisal of real property, with the increase being no more than eight percent (8%) in any given year or twenty percent (20%) in any given five year period; and (g) At the commencement of the first Renewal Term and the renewals permitted by this Lease, all material modifications to City’s standard ground lease offered to private hangar owners at the Airport, with the exception of provisions affecting the length of the Lease term, if any, shall be incorporated into the renewed Lease as an amendment executed by City and Lessee.
In the event the Renewal Conditions are not met or, in City’s determination, are not likely to be met, City shall give written notice to Lessee at least sixty (60) days prior to expiration of the then-current Initial Term or Renewal Term. Such notice shall include any amendment required by subsection (e) above, if applicable. If any Renewal Condition remains unmet, and City has not provided a written waiver of such unmet Renewal Condition prior to the expiration of the then-current Initial Term or Renewal Term, this Lease shall automatically terminate, and the provisions of Section 6.d(1) herein shall apply.
Lessee shall exercise its option to renew by timely delivering its annual rental payment for the first year of each Renewal Term, along with the executed Lease amendment. In the event Lessee does not exercise any option to renew as provided herein, this Lease shall automatically terminate, and the provisions of Section 6.d(1) herein shall apply.
2. Premises. This Lease shall be issued only in connection with premises upon which a privately owned hangar was constructed prior to May 1, 2018. City hereby leases to Lessee, and Lessee hereby hires from City, upon the terms and conditions herein set forth, that certain portion of land located at the Airport (the “Premises"), comprising of ( ) square feet,
upon which a privately owned hangar now sits, which is more particularly identified as Lot # , as outlined in Exhibit “A” attached hereto and made a part hereof by 3 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
this reference. All oil, gas and mineral rights are expressly reserved from this Lease.
3. Utilities. During the term of this Lease, Lessee agrees to pay all charges and expenses in connection with any utility services furnished to the Premises. If utilities are provided to the Premises and not separately metered, Lessee shall arrange for separate meters at Lessee's expense and Lessee shall contract directly with utility providers. If separate meters are not possible, Lessee shall reimburse City for Lessee's pro rata share, as reasonably determined by City, of all shared utilities within ten (10) days after billing by City.
Lessee acknowledges that City has no obligation to provide any utilities to the Premises. City shall not be liable to Lessee under any circumstances for damages or loss to Lessee's property, injury to person or property, or consequential damages, however occurring, through, in connection with, or incidental to the failure to furnish or interruption of any utilities at the Premises.
Lessee shall comply with all rules and regulations which City, any governmental agencies or authorities, or any utility company may establish for the use, proper functioning and protection of any utility.
4. Rent
4a. Base Rent. On the Commencement Date, Lessee shall pay City an annual base rent in the amount of ($ ) per
year (“Base Rent”) calculated at ($0. ) x
( ) square feet as further set forth in Exhibit “C” attached hereto. Rent is to be paid in full on the Commencement Date and thereafter on each yearly anniversary of the Commencement Date. The Base Rent amount is subject to an annual cost of living adjustment as explained in Section 4b below.
4b. Annual Rent Increase. On the first anniversary of the Commencement Date, and each anniversary thereafter, the Base Rent shall be increased by the current City Adjustment Factor. This will determine the new “Base Rent” for the new year. The City "Adjustment Factor" shall be a percentage calculated as follows: Beginning January 1, 2025, and every year thereafter, the annual rent increase shall be determined by calculating the annual average of the San Francisco and Los Angeles California Consumer Price Indexes for all urban consumers as reported by the State of California, Department of Industrial Relations ("CPI"), as published for October of the prior year.
4d. Late Fee; Fees for Denied Payment. Lessee is responsible for timely payment of annual rent and all additional charges, without notice or demand and without deduction, diminution, abatement, counter claim or setoff of any amount for any reason whatsoever, to City.
In the event any payment is not received by City by noon on the fifteenth (15th) day after it is due, Lessee shall, without notice, pay late charges in the amount of standard City late/processing fee as may be periodically adjusted (currently $36.00) 4 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
each month that the annual payment remains unpaid. If payment remitted by check or other negotiable instrument is presented for payment to the appropriate institution and denied for insufficient funds, such payment shall be subject to a City’s standard processing/late fee.
5. Obligations of Lessee. Lessee acknowledges that the principal use of the Airport consists of the operation of a public airport and that all other operations and businesses which are now or thereafter permitted by City, including the use hereunder, must at all times be compatible with such principal use, as City shall, in its sole discretion, determine. 5a. Storage and Use of Premises. The Premises shall be used only for the construction, installation, maintenance and repair of an aircraft storage hangar (the “Hangar”), storage of the aircraft of record identified in Exhibit “B” attached hereto and incorporated herein (the “Aircraft”), and otherwise primarily for aeronautical uses. No residential, commercial or business activity of any kind whatsoever shall be conducted or allowed by Lessee in, from or around the Premises. Subleasing of Aircraft storage space, in and of itself, shall not constitute commercial activity for purposes of this paragraph. The Hangar shall not be removed from the Premises by Lessee except as otherwise provided in this Lease.
Lessee shall have and maintain a controlling ownership interest in the Hangar.
Any aircraft parked or stored on the Premises for more than five (5) days, which need not be consecutive, in any twelve (12) month period shall be deemed Aircraft subject to this Lease. Lessee shall have and maintain a controlling ownership interest in at least one Aircraft, and Lessee, or a sub-lessee of Lessee, shall have and maintain a controlling ownership interest in each other Aircraft, as evidenced by FAA Aircraft Registration Certificates. “Controlling ownership interest”, as used herein, shall mean legal ownership of more than fifty percent (50%); the right to otherwise control the leasing, sale, and management of the subject property, or, in the case of a leased Aircraft, the lessor of the Aircraft or the owner of a controlling ownership interest in the business entity that leases the Aircraft.
In the event additional or substitute Aircraft are to be stored on the Premises, Lessee shall give prior written notice to City which notice shall include identification of the subject Aircraft, a copy of the FAA Aircraft Registration Certificate for the Aircraft, and copies of the insurance certificates required pursuant to Section 12 of this Lease for the Aircraft. Exhibit “B” to this Lease shall then be amended to reflect such additions or substitutions.
5b. Maintenance of Premises. Lessee shall maintain the areas surrounding the Hangar consisting of five (5) feet in the front, rear, and sides of the Hangar in a neat and orderly condition. This includes trash disposal, landscaping, and weed removal. Lessee shall keep such area around the Hangar clean and clear of debris, oil, grease and/or toxic chemicals. Lessee agrees to maintain the Hangar in a clean and orderly condition, and in good and operable repair, at all times, and in accordance with California Department of Industrial Safety and Fire Codes which may apply to aircraft hangar storage and other applicable federal, state and local laws and ordinances. This includes 5 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
exterior painting, wiring and structural repairs, as necessary. Lessee shall be responsible for clean-up and maintenance due to fuel or oil spills. Lessee shall take steps to ensure that the performance of any maintenance work conducted on the Premises shall not damage the Premises. Lessee shall become familiar with and shall at all times abide by all of City's rules and regulations related to use of the Hangar and the Premises and the use of any of City's other Airport facilities, whether promulgated before or after the execution of this Lease, and in particular Lessee shall abide by the following regulations (please initial next to each line):
A. There shall be no priming or painting in the Hangar except for touching up minor chips. Except for the foregoing, Lessee shall request in writing permission from City prior to conducting any painting activities on the Premises or at the Airport.
B. Paints, solvents, thinners, and other flammable liquids or materials shall be used only when the Hangar door is completely open to provide ventilation.
C. Combustible materials must be stored in NFPA-approved containers and closed when not in use.
D. Lessee shall not permit any accumulation of oily rags, paper, rubbish, or other debris, nor overload electrical circuits, which could increase the risk of fire.
E. No hazardous or flammable materials shall be stored within or about the Hangar and Premises unless stored within an Environmental Protection Agency or local Fire Marshall approved container/cabinet.
F. No boxes, crates, rubbish, paper or other litter that could cause or support combustion shall be permitted to accumulate within or about the Premises.
5c. Damage to Premises. Lessee shall control the conduct and demeanor of its invitees, agents, and sub-lessees, and their invitees and agents, in and around the Premises and shall take all steps necessary to remove persons whom City may for good and sufficient cause deem objectionable. Lessee shall be responsible for all damage to the Premises caused by the acts, omissions, negligence, or willful misconduct of Lessee, Lessee’s invitees and sub-lessees, and their invitees, not to exclude repair of apron in front of the Hangar due to fuel spillage. In the event Lessee does not promptly repair any damage to the Premises or property for which Lessee is responsible, City reserves the right, in addition to any other rights or remedies available to City, to make such repairs, at Lessee's expense, the cost of which shall become due and payable within ten (10) days of billing from City. 5d. Licenses, Permits, Authorizations. Lessee shall, at its own cost and 6 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
expense, obtain and maintain all licenses, permits, certificates, or other authorizations of any governmental authority having jurisdiction thereover, including but not limited to, the FAA, which may be necessary for the conduct in the Premises of its business operations and resolutions, codes, rules, orders, directions, ordinances, and regulations of any department, bureau or agency or any governmental authority having jurisdiction over the operations, occupancy, maintenance and use of the Premises for the purpose demised hereunder, except for those requiring major Alterations to the Premises as distinguished form those relating to furniture, fixtures or equipment of Lessee therein. Tenant shall indemnify and save City harmless from an against any claims, penalties, losses, damage or expense imposed by reason of Lessee’s violation of any applicable law or the rules and regulations of governmental authorities having jurisdiction thereof.
5e. No Waste/Nuisance. Lessee shall not use or permit the use of the Premises in any manner that will a) tend to create or permit any waste or nuisance, b) tend to disturb other tenants or users of the Airport, c) invalidate or cause cancellation or be in conflict with fire or other hazard insurance policies covering the Airport, of d) increase the rate of fire insurance for the Airport or of property located therein, over that rate in effect on the Commencement Date hereof. Lessee, at its expense, shall comply with all rules, order, regulations, or requirements of the State and City Fire Code.
5f. Termination and Expiration of This Lease.
(1) Termination. Within ninety (90) days of the termination of this Lease, Lessee shall remove, at Lessee’s sole expense, the Hangar, the Aircraft, and all of Lessee’s personal property from the Premises, and surrender the Premises to City in good and clean condition and repair.
Lessee shall be liable for any and all damage to the Premises caused by Lessee’s use including, but not limited to, damage to the apron immediately adjacent to the Premises due to fuel or oil spillage, or contamination from hazardous materials.
In the event Lessee does not remove Lessee’s property, including the Hangar and/or the Aircraft, from the Premises within ninety (90) days of the termination of this Lease, City may elect with regard to all or any such property, in City’s sole discretion and without further notice to Lessee, to do any of the following: (i) remove such property from the Premises and dispose of it, in which case Lessee shall reimburse City upon demand for all costs of removal and disposal; (ii) take full possession and ownership of such property, in which case Lessee shall not be responsible for removal or disposal cost, nor entitled to any proceeds of any sale or rental by the City of such property; or (iii) in the case of personal property (including the Aircraft, but not including the Hangar), to deem such property abandoned personal property and proceed with notice and foreclosure sale according to and in compliance with the terms of California Civil Code Section 1993, et seq.
7 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
(2) Expiration of Renewal Period. If this Lease has not been terminated prior to the expiration of the fourth (4th) Renewal Term as provided in Section 1 herein, and upon the expiration of the fourth (4th) Renewal Term of this Lease, provided that the Renewal Conditions (as defined in Section 1 herein) are met or waived by City in writing and neither party has informed the other in writing of its intent not to renew at least sixty (60) days prior to such expiration, this Lease shall automatically renew for successive one (1) month; provided, however, that either party hereto shall have the right during any of the foregoing one-month Terms to terminate this Lease for any reason at any time upon thirty (30) days prior written notice to the other party, in which case the provisions of Section 5.f(1) herein shall apply. (3) Termination in Accord with Porterville Charter.
Notwithstanding the stated term of the Lease, the City may terminate this Lease at its pleasure and repossess the premises therein described prior to the expiration of any initial lease term or term of renewal, upon three (3) months’ notice thereof and upon payment to the lessee the market value of any improvements made or put upon said premises by the lessee. The market value of such improvements shall be determined by a board of appraisers consisting of one appraiser appointed by the City Council, and a lessee appraiser appointed by Lessee. The parties will follow Charter Section 68 concerning the determination of the value of the improvements.
6. Compliance with Laws and Regulations. In utilizing the Premises during the term of this Lease, Lessee agrees to comply with the following:
6a. Porterville Municipal Code, Chapter 4 - Airport (Exhibit D) 6b. FAA Assurances – Airport Sponsors (Exhibit E)
6c. City of Porterville Airport Leasing Policy (Exhibit F) 6d. All applicable ordinances, rules and regulations, and policies established by any federal, state or local government agency exercising jurisdiction over the Premises, as the same may be amended from time to time.
6e. Any incidental non-aeronautical use of the Premises shall not interfere with the primary aeronautical uses of the Premises.
6f. All security measures that may be imposed from time to time by City or any other applicable governmental agency. If gate codes are used, Lessee shall not be authorized to distribute gate codes to any persons. If Lessee provides any gate code to unauthorized individuals, it shall be considered a material breach of this Lease. 6g. Lessee agrees that City is not responsible for the security of the Aircraft, or any property located on the Premises. It is expressly understood that no storage of airplanes, boats, cars, trucks, trailers or mobile homes is permitted outside of the Hangar or anywhere on City's property except designated parking areas for such vehicles or aircraft.
8 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
7. Safe Use of Premises. Lessee agrees to make no unlawful, offensive or noxious use of the Premises or the Airport. In addition, no explosives, firearms, volatile or flammable chemicals or other property which would materially increase the hazard of fires shall be stored at the Premises; provided, however, that up to 20 gallons of aircraft fuel may be stored within the Hangar in compliance with Section 6a(D) herein, on a temporary basis in connection with self-service maintenance activities. No aircraft shall be refueled while said aircraft is within the Hangar or otherwise on the Premises. Any refueling shall occur outside the Premises and fuels shall not be stored at the Premises, other than in the fuel tanks internal to the stored Aircraft. If any Aircraft requires a special grade/type of fuel not provided by City and/or the Fixed Based Operator (“FBO”), if any, all rules and regulations governing the private, non-commercial self-fueling of aircraft shall be followed.
8. Airport Use. In connection with the ownership and use of the Airport by City, Lessee agrees as follows:
(a) City reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance. If the foregoing development or improvement shall have a material adverse effect on Lessee’s use of the Premises, the parties hereto shall meet and confer prior to the commencement of such development or improvement.
(b) City reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport to standard established by City in City’s sole discretion, together with the right to direct and control all activities of Lessee in this regard.
(c) This Lease shall be subordinate to the provisions and requirements of any existing or future agreement between City and agencies of the United States relative to the development, operation or maintenance of the Airport.
(d) In the event any future structure or building is planned for the Premises or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises, Lessee shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations, as well as all applicable federal, state, and local laws, regulations and permitting requirements.
(e) It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of any exclusive right within the meaning of Section 308(a) of the Federal Aviation Act of 1958 (49 USC Section 1349).
(f) There is hereby reserved for the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. The public right of flight 9 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
shall include the right to cause within the said airspace any noise inherent in the operation of any aircraft used for navigation of flight through the said airspace or landing at, taking off from or operating on the Airport. (g) Lessee, by accepting this Lease, expressly grants for itself, its successors and assigns that it will not permit any natural growth or other obstruction on the land leased hereunder above a height as determined by the application of the requirements of Part 77 of the Federal Aviation Regulations. Lessee shall also not erect or permit the erection of any structure or building on the land leased hereunder above a height of thirty five (35) feet, as required by City Fire Code. In the event the aforesaid covenants are breached, City reserves the right to remove the offending structure or object, all of which shall be at the expense of Lessee. (h) Lessee shall not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft from the Airport, or which might otherwise constitute a hazard. In the event the aforesaid covenant is breached, City reserves the right to enter upon the Premises and cause the abatement of such interference, at the expense of Lessee. (i) This Lease and all of the provisions hereof shall be subject to whatever right of the United States Government now has, or in the future may have or acquire, affecting the control, operation, regulation and taking over of said Airport, or the exclusive or nonexclusive use of the Airport, by the United States during the time of war or national emergency or otherwise. (j) Lessee shall conform to the Airport Rules and Regulations and FAA safety and security rules and regulations regarding the use of the Airport operations area including runways, taxiways, aircraft aprons by vehicles, employees, customers, visitors, etc. in order to prevent security breaches and avoid aircraft incursions and vehicle/pedestrian deviations; will complete and pass an airfield safe driving instruction program when offered or required by the Airport, and will be subject to penalties as prescribed by the Airport for violations of the Airport safety and security requirements.
9. Airport Security. Lessee is responsible for maintaining security in and around the Premises or any other area adjacent to or upon the Airport which Lessee has an exclusive right to use or which Lessee otherwise controls. Lessee is further responsible for maintaining security with respect to access to an entry upon Airport operations areas, or other areas of the Airport designated by City from time to time as security areas, by employees, subtenants, contractors, invitees or customers of Lessee or any other person who enters the Airport operations areas at Lessee’s invitation, direction or authority, whether through or from the Premises or otherwise.
10. Assignment and Sublease. Neither this Lease nor any interest herein shall 10 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
be assigned, either voluntarily or involuntarily, by Lessee, or by operation of law or otherwise, nor shall the Premises or the Hangar, or any part thereof, be sublet or sold by Lessee without the prior written consent of City. Consent to any such assignment, transfer, sale, or sublease shall not be unreasonably withheld by City provided (a) City receives FAA Certificates of Ownership for all Aircraft contemplated for storage on the Premises, together with copies of the insurance certificates for each Aircraft as required herein, and (b) in the case of an approved assignment and Hangar sale or transfer, the transferee of the Hangar shall execute a new Ground Lease under terms and conditions then being offered by City but with a term ending no later than the expiration date of the then-current Initial Term or Renewal Term, with the same automatic renewal periods at set forth herein, if any remain (and this Ground Lease shall terminate), or, in the case of a sublease, the sub-lessee executes a sublease containing an agreement to be bound by the provisions of this Lease. Any such assignment, transfer, sublease or sale without such prior written consent of City shall be void and City shall have the right to terminate this Lease upon such unapproved assignment, transfer, sublease or sale at its sole discretion.
City shall have the right to assign or transfer City’s interest in this Lease or any rights or obligations in or to it. In the event of any such assignment or transfer, Lessee shall look solely to the assignee or transferee for performance of City’s obligations under this Lease.
The parking or storing of any aircraft in which Lessee does not have a controlling ownership interest on the Premises for more than five (5) days, which need not be consecutive, in any twelve (12) month period shall require a sublease.
No sublease of this Lease shall be valid unless the sublease is reduced to writing, and executed by Lessee, City, and the sub-lessee. Copies of all subleases shall be kept on record at the Airport Director’s Office.
11. Ownership of Improvements; City’s Right to Purchase. 11a. During Lease Term. It is mutually agreed that the Hangar and any other improvements placed upon the Premises shall remain the property of Lessee throughout the term of this Lease. Lessee covenants and agrees not to make material alterations, additions or improvements to the Premises without a) the prior written approval of City, of which approval shall not be unreasonably withheld, b) acquisition by Lessee of the required building and use permits, and c) Lessee’s compliance with all applicable law, regulations and building/development standards .
11b. Third Party Offer. If, during the term of this Lease, Lessee should receive a bona fide written offer from a third party to purchase the Hangar, which offer Lessee is inclined to accept, Lessee shall give written notice to City. City shall have the first right of refusal to purchase the Hangar on the same terms and conditions as set forth in such offer. City shall exercise its right to purchase by delivering written notice of intent to purchase to Lessee within thirty (30) days of receipt of Lessee’s notice, and City shall complete the purchase within sixty (60) days of City’s notice of intent to purchase. The 11 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
closing of such purchase shall effect an automatic termination of this Lease, and Lessee shall have no further obligation to pay rent.
Notwithstanding the foregoing, this section shall not apply to any offer from, or the sale or transfer of the Hangar to, (i) any immediate family member of Lessee, if Lessee is an individual, (ii) any immediate family member of an individual who holds a controlling interest in Lessee, if Lessee is a business entity, or (iii) any business entity in which any such immediate family member holds a controlling interest. As used herein, "immediate family member" shall mean a child, grandchild, parent, or sibling.
12. Construction of Improvements. The following provisions of this Section 11 are applicable only in the event the Hangar has not yet been erected on the Premises as of the Commencement Date.
12a. Construction. Lessee shall apply for a building permit within six (6) months of the Commencement Date, and shall complete construction, at Lessee’s sole cost and expense, of the Hangar, as approved by City, on the Premises within twelve (12) months of the Commencement Date. Lessee shall provide all information required by City for the permit process in a timely manner. If Lessee seeks to have utilities on the Premises, they shall be provided and paid for by Lessee. Evidence of completion shall be the issuance of a Certificate of Occupancy from City. Prior to occupancy, Lessee shall present the Airport Director with a copy of the validly issued Certificate of Occupancy. Lessee shall be responsible for obtaining, at Lessee’s sole cost and expense, all permits of any kind required by law, including payment of utility and applicable development fees. City shall have the right to control the type of construction, architectural style, size and color of any improvements to the Premises.
Prior to developing final working plans, Lessee shall submit preliminary plans to the Porterville City Building Department for review and comment. City shall review said plans and advise Lessee of any deficiencies. Lessee shall then make the necessary changes, if any, required for City's approval. After those conditions have been satisfied, City shall notify Lessee in writing that Lessee may proceed with construction. 12b. Surety for Performance and Payment. Before any major work of construction, alteration or repair is commenced on the Premises, Lessee shall furnish City adequate surety for performance and payment in a form acceptable to the City Risk Manager, in an amount not less than the cost of the improvements to be constructed, and which shall remain in effect until the entire cost of the work has been paid in full and the new improvements have been insured as provided in this Lease.
City may, but shall not unreasonably, disapprove the surety. The surety shall be deemed approved unless notice of disapproval is given within thirty (30) days after receipt of the proposed surety.
13. Insurance.
13a. Insurance Coverages. Lessee shall obtain and maintain at all times during the term of this Lease, from one or more financially solvent insurance carriers authorized to conduct business in the State of California, general liability insurance, 12 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
inclusive of aircraft liability and premises liability, with a single limit for bodily injury and property damage of $______________ per occurrence with the exception of per aircraft passenger sub-limits of $____________, insuring Lessee's liability against death and bodily injury to persons, including invitees and passengers, and damage to property.
13b. Certificate of Insurance. City shall be named as an additional insured under the applicable insurance policies as of the Commencement Date, and shall be furnished duly executed certificates of all required insurance, together with satisfactory evidence of the payment of the premiums therefore, prior to the Commencement Date, upon renewals of such policies, no less than thirty (30) days prior to the expiration of the term of such coverage. The insurance policies of Lessee shall further provide at least thirty (30) days advance written notice to City and Lessee of any material change, cancellation, non-renewal or changes adverse to the interest of City or Lessee. It is expressly understood by Lessee that the receipt of any required insurance certificates by City hereunder does not constitute agreement that the insurance requirements of this Lease have been fully met or that the insurance policies indicated on the certificate are in compliance with all requirements of this Lease. Further, the failure of City to obtain certificates or other evidence of insurance from Lessee shall not be deemed a waiver by City. Nonconforming insurance shall not relieve Lessee of its obligation to provide the insurance specified herein.
It is Lessee’s responsibility to provide the certificates of insurance with additional insured endorsement on or before the expiration date of Lessee’s existing insurance policy. A processing fee as may be set and periodically adjusted by the City (currently $36.00) will be charged if the certificate of insurance is not received by City on or before the renewal date.
13c. Waiver of Subrogation. All policies shall expressly waive the underwriter’s and insurance carrier’s right of subrogation against City and/or its insurance carriers. 13d. Primary Insurance. Lessee's insurance policies shall respond on a primary basis, with any insurance carried by City to be construed as secondary or excess insurance.
13e. Lessee's Liability Not Limited. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION 12, FOR PURPOSES OF THIS LEASE, LESSEE
ACKNOWLEDGES THAT ITS POTENTIAL LIABILITY IS NOT LIMITED TO THE
AMOUNT OF LIABILITY INSURANCE COVERAGE IT MAINTAINS OR TO THE LIMITS REQUIRED HEREIN.
14. Casualty. In the event that the Premises, or the means of access thereto, is damaged by fire or any other cause, the rent payable hereunder shall not abate. In the event of loss of or material damage to the Hangar, Lessee shall repair or replace the Hangar within twenty-one (21) days following written notice to Lessee or, provided that Lessee has in good faith commenced such repair or replacement within such 21-day period, in a reasonable time thereafter. In the event such repair or replacement has not 13 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
been timely completed as provided in this Section 13, City shall have the rights of entry and repair or replacement granted to it pursuant to Section 17 herein.
15. Liabilities, Indemnities and Force Majure. Lessee shall defend, indemnify and hold harmless City (inclusive of its subsidiaries, affiliates, as now or hereafter constituted) and its officers, directors, agents, employees, and contractors, from and against any and all cost, liability, fine, penalty, damage or injury, including cost of suit and expenses of legal services, claimed or recovered by any person or entity, arising out of or relating to use of the Premises, or any activity, work, or other things done, permitted or suffered by Lessee in, on, or about the Premises by Lessee, its invitees, agents, or sub-lessees, or their invitees or agents, or any breach or default by Lessee in the performance of any obligation of Lessee set forth in this Lease (“Contract Damages”), except in the event that such damages arise from City’s sole negligence or willful misconduct.
Further, Lessee shall indemnify City and pay any taxes or penalties imposed by any proper governing authority based upon Lessee's failure to comply with or violation of any local, state or federal rule resulting from the improper utilization of the Premises.
Any such sum shall be paid within ten (10) days of written demand by City.
Neither party shall be liable for its failure to perform this Lease or for any loss, injury, damage or delay of any nature whatsoever resulting from or caused by an act of God, fire, flood, accident, strike, labor dispute, riot, insurrection, war, law, regulation, or any other cause beyond such party's control; provided, however, that Lessee shall not be excused for any such reason from its obligation to pay rent in a timely manner as provided herein.
16. Risk of Loss. Lessee bears all risk of loss or damage to the Hangar and any property stored within the Hangar, whether caused by fire, water, earthquake, theft, terrorism, or any other risk. City shall not provide insurance for the Hangar or any property stored therein. Lessee acknowledges that insurance is available from independent insurance companies to protect Lessee in the event of damage or loss.
17. Environmental Responsibilities of Lessee.
17a. Environmental Removal and Disposal. Lessee shall be responsible for the proper removal and disposal of all Hazardous Materials and Toxic Substances, as defined herein, generated by Lessee as a result of Lessee's activities in, on and from the Premises or the Airport, whether during the term or following expiration or termination of this Lease. Lessee shall ensure that removal of such materials and substances from the Hangar and the Airport is accomplished in accordance with Airport, local, state and federal guidelines. Additionally, environmental contamination caused or permitted by Lessee, which impacts the Premises or the Airport as a result of Lessee's improper handling, disposal, release or leakage of any Hazardous Materials and Toxic Substances while utilizing the Premises or Airport shall be the sole responsibility of Lessee. For purposes of this Section 16, "Hazardous Materials and Toxic Substances" 14 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
shall mean any hazardous or toxic substances, materials, wastes, pollutants or contaminants, as defined, listed or regulated now or in the future by any federal, state or local law, rule, regulation, ordinance, statute or order or by common law decision, including, without limitation, petroleum products or byproducts. 17b. Environmental Indemnification. Lessee shall indemnify, defend and hold harmless City (inclusive of its subsidiaries, affiliates, as now or hereafter constituted) and its officers, directors, agents, employees, and contractors, from and against any and all claims (including, without limitation, third party claims from bodily injury or real or personal property damage), actions, administrative proceedings (including information proceedings), judgments, damages, punitive damages, penalties, fines, taxes and assessments, liabilities (including sums paid in settlement of claims), interest, impairments, losses, fees and expenses (including attorney's fees and expenses incurred in enforcing this provision or collecting any sums due hereunder), consultant and expert fees, together with all other costs and expenses of any kind or nature, including any and all expenses of cleaning up or disposing of any such Hazardous Materials and Toxic Substances arising from or caused by Lessee's use of the Premises or the Airport or Lessee's failure to perform the covenants of this Section 16 (“Environmental Damages”). Lessee shall have no responsibility for any Environmental Damages which preceded the Commencement Date of this Lease. The obligations, covenants and agreements of Lessee contained in this Section 16 shall survive expiration or termination of this Lease for any reason.
18. Entry to Hangar; City Repairs. Lessee consents to City's entry onto the Premises and the Hangar, without notice to Lessee, in the case of an emergency which, in City’s reasonable determination, poses an imminent health or safety threat to any person or property. Lessee further consents to City's entry onto the Premises and the Hangar if, within twenty-one (21) days following written notice to Lessee of any breach of Section 13 of this Lease relating to casualty, such breach has not been remedied by Lessee. In such event, City shall be entitled to repair, replace, or otherwise remedy any such breach, the cost for which shall be paid by Lessee within ten (10) days of written notice thereof. Under all other circumstances, including inspection to ensure compliance with the terms and provisions of this Lease, Lessee further consents to City's entry onto the Premises and the Hangar with twenty-four (24) hours advance notice by email, or, in the event email notification is unavailable, by mail or by telephone, as provided in Section 25 herein. The cost of such inspections shall be paid by City unless such inspection reveals the presence of hazardous materials or toxic substances are the result of Lessee’s operations on the Premises.
19. Subordination. This Lease is subject and subordinate to the following:
19a. City reserves the right to develop and improve the Airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance by or on behalf of Lessee, provided Lessee is not deprived of the use or access to the Premises or any of Lessee's rights under this Lease.
19b. City reserves the right to take any action it considers necessary to protect the 15 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
aerial approaches to the Airport against obstruction, together with the right to prevent Lessee from erecting or permitting to be erected any building or other structure on the Airport which would limit the usefulness of the Airport or constitute a hazard to aircraft. 19c. City reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. 19d. This Lease is and shall be subordinate to the provisions of existing and future agreements and assurances between City and the United States, the Federal Aviation Administration, or the State of California relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the obtaining or expenditure of federal funds, state funds, services, or property for the benefit of the Airport.
19e. During national emergency, City shall have the right to lease all or any part of the landing area or the Airport to the United States or the State of California for military use, and if any such lease is executed, the provisions of this Lease insofar as they may be inconsistent with the provisions of such lease to the government, shall be suspended, but such suspension shall not extend the term of this Lease. Abatement of rentals shall be reasonably determined by the City in proportion to the degree of interference with Lessee's use of the Premises.
19f. Except to the extent required for the performance of any obligations of Lessee hereunder, nothing contained in this Lease shall grant to Lessee any rights whatsoever in the airspace above the Premises other than those reasonably necessary to Lessee's enjoyment of the Premises and which are consistent with Federal Aviation Administration rules, regulations and orders currently or subsequently effective. 19g. This Lease is subject and subordinate to any and all mortgages which may now or hereafter encumber the City's fee simple interest in the Airport real property, and to all renewals, modifications and extensions thereof; provided that with respect to any future mortgage, the subordination described above shall be subject to the following: in the event that any proceedings are brought by the mortgagee (a) to foreclose the mortgage or any renewal, modification, consolidation, replacement or extension thereof, for any reason whatsoever, or (b) to succeed to the interest of City by foreclosure, deed in lieu thereof or otherwise, and provided no uncured event of default under this Lease shall have occurred and be continuing, Lessee's possession of the Premises and Lessee's rights and privileges under this Lease and any extension or extensions thereof shall not be diminished, interfered with or disturbed by the mortgagee. Lessee shall, within seven (7) days after required of City, execute any subordination documents which City or any mortgagee of the Premises may reasonably request, but no such document shall be required to effectuate said subordination. Any such subordination documents shall, as to any future mortgage, comply with the terms of this paragraph. 19h. Lessee understands and accepts City’s delegation of the prohibition against exclusive rights in accordance with the obligation set forth in the Federal Aviation Act of 1958, Section 308(a), which states “there shall be no exclusive right for the use of any 16 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
landing area or air navigation facility upon which federal funds have been expended” and as set forth in 49 United States Codes Section 40107(a)(4) and U.S.C. Section 40103(e).
Lessee may not exercise any of its rights or privileges under the Lease in any manner which results in and subjects the public Airport users or tenants to unjust discrimination. 19i. Lessee for himself/herself/itself, and its or their personal representatives, administrators, successors in interest, and assignees, as part of the consideration hereof, does hereby covenant and agree that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of Airport facilities, in the construction of any improvements on, over, or under Airport land, or in the furnishing of services thereon; and(b) use the Premises shall be in compliance with all other requirements imposed by or pursuant to Title 49 Code of Federal Regulations Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation and as outlined in FAA AC 150/5100-15A Civil Rights Requirements for the Airport Improvement Program and as said regulations may be amended. 19j. Lessee acknowledges that the City is subject to Federal Grant Agreement obligations as set forth on Exhibit “F” attached hereto and made a part hereof, and Lessee shall act in compliance therewith.
20. Disclaimer of Liability: CITY HEREBY DISCLAIMS, AND LESSEE HEREBY
RELEASES CITY FROM, ANY AND ALL LIABILITY WHETHER IN CONTRACT OR
TORT ( EXCEPT AS PROVIDED HEREIN) FOR ANY LOSS, DAMAGE OR INJURY OF
ANY NATURE WHATSOEVER SUSTAINED BY LESSEE, O R ITS EMPLOYEES,
AGENTS OR INVITEES, DURING THE TERM OF THIS LEASE, INCLUDING BUT
NOT LIMITED TO LOSS, DAMAGE OR INJURY TO THE AIRCRAFT OR OTHER
PROPERTY OF LESSEE THAT MAY BE LOCATED OR STORED ON OR IN THE PREMISES, UNLESS SUCH LOSS, DAMAGE OR INJURY IS CAUSED BY CITY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THE PARTIES HEREBY
AGREE THAT UNDER NO CIRCUMSTANCES SHALL CITY BE LIABLE FOR
INDIRECT, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, WHETHER IN CONTRACT OR TORT.
21. Default. Lessee shall be considered in breach and default of this Lease in the event (each, a “Default”) (a) Lessee defaults in its obligation to pay rent and such default continues for fifteen (15) days after written notice thereof from City; (b) Lessee defaults in the performance of any other obligation or violates any other term or provision herein and such default or violation continues for twenty-one (21) days, or is repeated, after written notice thereof from City; (c) Lessee is a corporation, limited liability company, or other business entity and ceases to lawfully exist under the laws of the State of California or the state of its organization; (d) a petition is filed by or against Lessee under any state or federal bankruptcy laws (including a petition for reorganization); or (e) Lessee assigns its property for the benefit of creditors.
In the event that Lessee is in Default of this Lease, then City may, at its option, terminate this Lease upon written notice to Lessee, in which event the provisions of 17 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
Section 6(d)(1) herein shall apply.
22. Governing Law. This Lease shall be construed in accordance with the laws of the State of California. Venue shall be in the appropriate court in and for Porterville City.
23. Relationship of Parties. The relationship between City and Lessee shall always and only be that of lessor and lessee, or landlord and tenant. Lessee shall never at any time during the term of this Lease become the agent of City, and City shall not be responsible for the acts or omissions of Lessee, its employees or agents.
24. Remedies Cumulative. The rights and remedies with respect to any of the terms and conditions of this Lease shall be cumulative and not exclusive, and shall be in addition to all other rights and remedies available to either party in law or equity.
25. Notices. All notices to be given hereunder shall be in writing and shall be sent by certified mail postage prepaid, addressed as follows:
NOTICE TO CITY:
Email Address:
Address:
NOTICE TO LESSEE:
Email Address:
Telephone:
Name: ___________
Address: _____________
City/State/ZIP:
Any notices permitted or required to be given by the terms of this Lease shall be effective three (3) business days after mailing, or the next business day after emailing.
26. Integration. This Lease constitutes the entire agreement between the parties relating to the subject matter hereof, and supersedes all prior or contemporaneous agreements or understandings, whether oral or written, between the parties. Any change or modification hereof must be in writing signed by both parties.
27. Waiver. The waiver by either party of any covenant or condition of this Lease shall not thereafter preclude such party from demanding performance in accordance with the terms thereof. No failure of City to insist upon the strict performance of any term, covenant, agreement, provision, condition or limitation of this Lease or to exercise any right or remedy consequent upon a breach thereof, and no acceptance by City of full or partial rent during the continuance of any such breach or application of the security deposit in light of any breach, shall constitute a waiver of any such breach or of any such term, covenant, agreement, provision, condition, limitation, right or remedy. No term, 18 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
covenant, agreement, provision, condition or limitation of this Lease to be kept, observed or performed by City or by Lessee, and no breach thereof, shall be waived, altered or modified except by a written instrument executed by City or by Lessee, as the case may be. No waiver of any breach shall affect or alter this Lease, but each and every term, covenant, agreement, provision, condition and limitation of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach thereof.
28. Successors Bound. This Lease shall be binding upon and shall inure to the benefit of the heirs, legal representatives, successors and assigns of the parties hereto.
29. Severability. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction over the parties and subject matter of this Lease, the entire Lease shall not be void, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties.
30. Time is of the Essence. Time is of the essence in the performance of all of Lessee's obligations under this Lease.
31. Taxes, Assessments and Fees. Lessee shall pay, without abatement, deduction or offset all real and personal property taxes, general and special assessments, and other charges of every description levied on or assessed against the Leased Premises, improvements located on the Leased Premises, person property locate on or in the land or improvements, the leasehold estate, or any subleasehold estate, to the full extent of installments falling due during the term, whether belonging to or chargeable against City or Lessee. Lessee shall make all such payments directly to the charging authority at least fifteen (15) days before delinquency and before any fine, interest or penalty shall become due or be imposed by operation of law for nonpayment. If, however, the law permits the payment of any or all of the above items in installments (whether or not interest accrues on the unpaid balance), Lessee may, at Lessee’s election, utilize the permitted installment method, but shall pay each installment with any interest before delinquency. Lessee shall pay any charge or levy only upon the rent payable by the Lessee under the Lease to City, and any tax in lieu of property tax, but shall not be required to pay any franchise, state inheritance, succession, capital levy or transfer tax of the City, or any income, excess profits or revenue tax, or any other tax, assessments or charge attributable to City. In addition, City shall be solely responsible for any income taxes assessed against City arising out of its operation of the Airport or related to the rents received from Lessee.
If at any time during the term of the Lease any tax, however described, is levied or assessed against City as a substitute, in whole or in part, for any real property taxes, or in addition to such real property taxes, Lessee shall pay before delinquency the substitute of additional tax or excise. Such substitutes include, but are not limited to, any possessory interest tax imposed on Lessee by California Revenue and Taxation Code Sections 103 and 107.
Lessee recognizes and understands that this Lease may create a possessory interest subject to property taxes pursuant to Revenue and Taxation Code Section 107.6 and that, if a possessory interest is created, Lessee shall, in 19 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
accordance with this Section 5, be responsible for payment of property taxes levied against such possessory interest. Any documentary transfer tax assessed upon creation of a leasehold interest in the Premises under this lease shall be paid by Lessee. Lessee hereby expressly acknowledges that City has given Lessee notice that Lessee’s possessory interest in the demised premises may be taxed.
____________________
Lessee’s initials
32. Financing Agreements. In order to obtain financing or refinancing for the construction, improvement, repair or sale of the Hangar, which may require encumbrance of the Hangar and/or Lessee’s leasehold interest in the Premises, City shall cooperate with Lessee and any lender in the execution of an amendment to this Lease setting forth such lender’s financing terms and conditions, and City shall not unreasonably withhold its consent to such financing terms and conditions.
33. City’s Proprietary Capacity. Lessee acknowledges that City is entering into this Lease in its proprietary capacity and not in its regulatory or governmental capacity. Nothing in this Lease shall be construed as restraining, impairing, or restricting the City in its regulatory or governmental capacity, or granting any rights upon Lessee with respect to the use, occupancy, development, or operation of the Premises in a manner inconsistent with any laws or applicable requirements.
34. Approval of any Future Development. Nothing in this Lease is intended to commit the Lessee to completing a particular project or to commit City to granting any approval for such proposed use. The City’s approval of this Lease does not constitute approval by the City of any proposed development on the Premises or of other activity on the Premises that would have a direct or reasonably foreseeable indirect environmental impact pursuant to the California Environmental Quality Act (“CEQA”). Nothing in this Lease, nor any action by Lessee with reference to this Lease or any related documents shall be deemed to constitute issuance or waiver of any required City approval regarding the Premises, or waiver or exercise of any legislative discretion of the City regarding any application, approval or other matter relating to Lessee’s intended use of the Premises.
35. Net Lease. This lease shall be a triple net Lease and Base Rent shall be paid to City absolutely net of all costs and expenses, except as specifically provided to the contrary in this Lease. It is understood that City will receive the rent set forth in this Lease free and clear of any and all other impositions, taxes, liens, charges, or expenses of any nature whatsoever in connection with the ownership and operation of the Premises. In addition to the rent required by this Lease, and to the other amounts payable by Lessee pursuant to this Lease, Lessee shall pay to the parties respectively entitled thereto all other impositions, operating charges, maintenance charges, construction costs and any other charges, costs, and expenses which arise or may be contemplated under any provision of this Lease during the term hereof. All of such charges, costs and expenses shall constitute additional rent, and upon the failure of Lessee to pay any of such costs, charges or expenses, City 20 MASTER GROUND LEASE – PORTERVILLE MUNICIPAL AIRPORT
shall have the same rights and remedies as otherwise provided in this Lease for the failure of Lessee to pay rent. It is the intention of the parties hereto that this Lease shall not be terminable for any reason by Lessee, and that Lessee shall in no event be entitled to any abatement or reduction in rent payable under this Lease, except as herein expressly provided. Any present or future law to the contrary shall not alter this Lease.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. Executed in Porterville, California, on the date and year first above written.
LESSEE LESSOR: CITY OF PORTERVILLE
By: By:
(Name of Lessee) ____________________,Mayor
ATTEST
______________________
City Clerk
By:
Deputy
A
B
40 42
41 43
12 39
35 C
38 37
36 ABCDEF
33 32A
B C
31C
A
31B
30B
61 45ABCDE
47 48 49B
49A
50 1
2 3
Garage
5A
5 4 4A
3B
3A
1 &2
11 10
9 6
18 & 19
17 8
7 C
B
D
60 17B
Admin Bldg
46 A
30A
44 34
TAXIWAY
RUNWAY
30 THUNDERBOLT DR HANGARRD
WILDCATWAY
HOPE DR
n
0 500 1,000Feet
Date Printed: 5/6/2019 by the Community Development Department ±
Lot No. Leaseholder Lot No. Leaseholder
1 & 2 City 34E Glenn Ricketson
3A Not buildable 34F Steven Huth/Mike Quatacker
3B Airport museum/storage (City) 35 Chantal Stewart
4 City 36 Matthew Quatacker
4A Elec. Vault (City) 37 Chris Freeman & Connie Hulsey
5 Airport Office (City) 38 Raymond Broad/Dernie Waikiki 5A City 39 Ben Favrholdt
6 Tule River Aero Industries, Inc 40 Dana Gillespie & Susan Peck 7 Tule River Aero Industries, Inc 41 Vacant land/no hangar 8 Vacant land - no hangar 42 Vacant land/no hangar
9 Arrow Falcon 43 Leonard Alogna
10 Arrow Falcon 44A Silvio Addamo
11 City 44B Mike Quatacker
12 Chris and Amy Shaw 44C Gillespie Ag Service
17 HQ Investments 45 Aircraft 445, LLC
18 & 19 US Forest Service/CalFire 46A Janelle Abiog
30A 1,2,3J. Enterprise Trust 46B Travis Bierman
30B M & W Flying Service 46C Mike Quatacker
31A James Costa 46D CVMS - Kevin Taggard
31B Vacant land/no hangar 46E Lloyd Janzen
31C City 47 James Costa
32A City 48 Vacant land/no hangar
32B Ray Boriack 49A Michael & Elaine Wall
32C Mike Quatacker 49B Mike Quatacker
32D Drew Williams 50 Vacant land/no hangar
33 James Costa 60 Vacant land/no hangar
34A Sam Lessley 61A CVMS - Kevin Taggard
34B Ennis Family Revocable Trust 61B Vacant land/no hangar 34C Gary Mussen 61C Vacant land/no hangar
34D Joyce Moody-Flores
Exhibit A - Airport Lease Map
Exhibit B – Aircraft of Record Checklist
The purpose of this form is to document aircraft of record that are authorized to park in the Lessee’s hangar, consistent with criteria outlined in Section 2 - Premises of the lease, and to provide the Lessee and staff a documentation checklist.
Tenant
Info
Name:
Physical Address:
Mailing Address:
(if different than billing)
Phone: Home: Cell:
Email:
Complete the below for all aircraft of record; make additional copies if necessary. If you do not have an aircraft when you are offered a lease, state “NONE” in N Number; you have 12 months to acquire a suitable aircraft of record. You must provide an insurance certificate even without an aircraft.
Aircraft Info Aircraft of Record –
Primary
Aircraft of Record - Alternate
Is this aircraft a project?
(no airworthiness certificate), if so, note
estimated completion date
N Number
Make
Model
FAA Registration, (or bill of sale and FAA
registration application)
List name(s) of owner
Must submit with lease
Proof of Ownership Interest
(if FAA Reg not in your name, describe and
submit, e.g. LLC, lease documents stating
interest)
Certificate of Insurance naming County
additionally insured (annual requirement)
Must submit with lease
Airworthiness Certificate (FAA Form 8100-2,
8130-7, or older version) Must submit with
lease, unless project
Copy of annual inspection sign-off or affidavit
of flyability (annual requirement- affidavit
shall include perjury wording at bottom of this
form) Must submit with lease
Aircraft is homebased at:
In County / State of:
“I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.” Signature: _______________________________________ Date: ______________________ CHAPTER 4
AIRPORT
ARTICLE I. GENERAL PROVISIONS AND DEFINITIONS
SECTION:
4-1.00: General Provisions
4-1.05: Definitions
4-1.00: GENERAL PROVISIONS:
A. Short Title: This chapter may be referred to as the PORTERVILLE MUNICIPAL AIRPORT RULES AND REGULATIONS. It may be amended by a majority vote of the city council of the city of Porterville, California.
B. Necessity: This chapter is enacted to protect the health, safety and peace, and to promote the welfare and convenience of the general public using the Porterville municipal airport, or affected by activities related to the airport by providing for the orderly conduct of activities on, or related to, the airport.
C. Authority: The provisions of these rules and regulations are intended to augment the existing laws of the state of California by the authority of title IX of the aeronautics act, Public Utilities Code sections 2100 et seq., the federal aviation regulations and this chapter. The city of Porterville, as owner of the airport, is directed by federal and state law to provide for the safe and efficient operation of the facility as a public airport, and to provide for the health, safety, and welfare of the flying public.
D. Applicability: The provisions in these rules and regulations shall be applicable to any and all persons upon the airport, who lease or rent property directly from the city of Porterville, who have been granted any license or permit by the city of Porterville, and to any person(s) engaged in activities thereon. (Ord. 1652 § B, 4-20-2004) 4-1.05: DEFINITIONS:
For the purposes of this chapter, the following definitions and meanings shall apply unless otherwise specified:
AEROBATICS: Maneuvers intentionally performed by an aircraft involving an abrupt change in its attitude, an abnormal attitude, or an abnormal acceleration, or deceleration.
AIR CARRIER: Any person who undertakes directly, by lease, or other arrangement, to engage in air transportation of persons or things. They operate, in various categories, under authority or certification by the California public utilities commission. Categories include certificated route air carriers, trunk carriers, flag carriers, local service carriers, all-cargo carriers, helicopter carriers, commercial air operators, air taxi operators, and charter air carriers.
AIR OPERATIONS AREA: Any area used for landing, taking off, taxiing or surface maneuvering aircraft.
AIR TRAFFIC: Aircraft operating in the air or on an airport surface, exclusive of loading ramps or parking areas.
AIR TRAFFIC CLEARANCE: An authorization issued by air traffic control personnel for an aircraft to proceed under specified traffic conditions within controlled airspace.
AIRCRAFT: A device that is used, or intended to be used, for flight in the air. This includes airplanes, helicopters and gliders, and lighter than air devices such as blimps or balloons, but does not include hang gliders. (See Ultralights FARs part 103.)
AIRPORT: The Porterville municipal airport, its buildings and facilities, all lands owned by the city adjacent to the airport, including airspace above such land and the designated approaches thereto.
AIRPORT OPERATIONS MANAGER: That person or his designee (airport operations supervisor), designated by the city of Porterville, as the competent authority charged with the safe and efficient operation of the airport and the enforcement of the regulations herein.
AUTO ROTATION: A rotor craft flight condition in which the lifting rotor is driven entirely by the action of air when the rotor craft (helicopter) is in motion.
BALLOON: A lighter than air aircraft that is not engine driven.
BASED AIRCRAFT: Any aircraft which utilizes the airport as a base of operations and is assigned a permanent parking space, tie down, or hangar space on the airport or adjoining property, for the period of at least one month, by virtue of a lease agreement.
CEILING: The height above the earth's surface of the lowest layer of clouds or obscuring phenomena, that is reported as "broken", "overcast", or "obscuration", and is not classified "thin" or "partial".
CITY: The city of Porterville.
Exhibit D - Porterville City Code - Airport
COMMERCIAL OPERATOR: Any person who, for compensation or hire, engages in the carriage of persons, property or mail in air commerce, or engages in other aerial activity such as flight instruction, aerial photography, firefighting, agricultural aviation activities, and/or traffic surveillance.
COMMERCIAL USE: Use of the Porterville municipal airport for revenue producing commercial activities.
COMMON USE AREA: All runways for landing and takeoff, all runway markers, guidance, signal, and beacon lights used to guide aircraft operations; all apparatus or equipment for disseminating weather and wind information, for signaling, for radio directional finding, or for radio or other electrical communication and any other structure, equipment or mechanism having similar purpose for guiding or controlling flight in the air or the landing and takeoff of aircraft, and together with such aprons, ramps, tie down area, taxiway and improvements.
COUNCIL: The city council of the city of Porterville, who, as governing body of the municipality which owns the airport, is final authority in all matters of policy and procedure in the operation of the airport.
FIXED BASE OPERATOR (FBO): Any person who rents, leases or owns facilities located in an area designated for FBOs at the Porterville municipal airport, who, by virtue of his specific type of aviation (or aviation related) activity, requires the occupancy of a site with contiguous aircraft apron and direct access to the aircraft operation area, and who engages in a business activity providing aviation sales or services, including, but not limited to, any of the following:
A. Selling and/or servicing new and used aircraft and component parts.
B. Aircraft maintenance and repairs.
C. Sales and/or repair of avionics.
D. Aviation training (including ground or flight instruction).
E. Aerial photography.
F. Air ambulance service.
G. Aircraft agricultural operations (crop dusting, spraying, or the application of seed, fertilizers, pesticides, defoliants, etc.).
H. Aircraft rental, charter, and leasing.
I. Hangar rentals in support of FBOs.
FLIGHT VISIBILITY: The average forward horizontal distance from the cockpit of an aircraft in flight, at which prominent unlighted objects may be seen and identified by night.
GROUND VISIBILITY: Prevailing horizontal visibility near the earth's surface.
HELICOPTER: A rotor driven aircraft (rotorcraft) that, for its horizontal motion, depends primarily on its engine driven rotors.
IFR: Instrument flight rules covering meteorological conditions below the minimums for flight under visual (VFR) conditions.
MAINTENANCE: Inspection, overhaul, repair, preservation and the replacement of parts, but excludes preventive maintenance.
MAXIMUM GROSS LANDING WEIGHT: The maximum landing weight stipulated for a particular aircraft by the federal aviation administration (FAA).
MOTOR VEHICLE: As defined in section 415 of the California Vehicle Code.
NIGHT: The time between the end of evening civil twilight and the beginning of morning civil twilight as published in the American air almanac, converted to local time.
PERSON: An individual, firm, partnership, corporation, company, association, joint stock association, or governmental entity, and includes a trustee, receiver, assignee or similar representative of any of them.
RAMP: The area used for the parking and maneuvering, loading, and servicing of aircraft while they are on the ground.
TRAFFIC PATTERN: The traffic flow that is prescribed for aircraft landing at, or taking off from, the Porterville municipal airport.
TRANSIENT AIRCRAFT: All aircraft not permanently based at the airport (as opposed to based aircraft).
ULTRALIGHT: A vehicle to be used as an in-air manned operation for recreation or sport. If powered, weighs less than two hundred fifty four (254) pounds empty, having a maximum fuel capacity of five (5) U.S. gallons, not capable of more than fifty five (55) knots at full power at level flight and having a power off stall speed of twenty four (24) knots or less.
VFR: Visual flight rules covering meteorological conditions, above those requiring flight under IFR conditions.
WORD CONSTRUCTION: The following construction applies throughout this chapter:
A. Words importing the singular include the plural.
B. Words importing the plural include the singular.
C. Words importing the masculine gender include the feminine. (Ord. 1652 § B, 4-20-2004) ARTICLE II. AIRPORT OPERATION AREA REQUIREMENTS, GENERAL SECTION:
4-2.05: Responsibilities
4-2.10: Hours Of Operation
4-2.15: Common Use Areas
4-2.20: Maintenance
4-2.25: Animals
4-2.30: Based Aircraft
4-2.35: Commercial Activity
4-2.40: Aircraft Storage And Parking
4-2.45: Unattended Aircraft
4-2.50: Restricted Areas
4-2.55: Dumping Refuse
4-2.60: Place Of Abode
4-2.05: RESPONSIBILITIES:
A. Management: It shall be the responsibility of the airport manager/airport operations supervisor of Porterville municipal airport to fairly and impartially administer the Porterville municipal airport rules and regulations. The airport manager/airport operations supervisor is responsible for the safe and efficient operation of the airport.
B. Users: It shall be the responsibility of every user of the Porterville municipal airport, pilot or other, to become familiar with the Porterville municipal airport rules and regulations and to obey those rules and regulations. The use of the airport or any of its facilities in any manner shall constitute an acceptance by the user of these rules and regulations and shall create an obligation on the part of the user to abide by and obey said rules and regulations. A copy will be maintained current to reflect any amendments and will be posted in the administration building. Additional copies will be provided by the Porterville municipal airport manager/airport operations supervisor to any user of the airport who requests a copy. (Ord. 1652 § B, 4- 20-2004)
4-2.10: HOURS OF OPERATION:
The Porterville municipal airport shall be open for public use (24 hours), subject to any restrictions imposed by the airport manager/airport operations supervisor, the condition of the landing area, the presentation of special events, construction or repair activities, or similar causes. The airport is attended from eight o'clock (8:00) A.M. to five o'clock (5:00) P.M. daily in the winter and eight o'clock (8:00) A.M. to six o'clock (6:00) P.M. daily in the summer. Services may be obtained at other times by contacting the numbers posted on the door of the airport lobby. A call out fee will by charged per the airport fee schedule set by city council resolution. The fee schedule will be reviewed by city council on an annual basis. (Winter hours are October 1 through May 15; summer hours are May 16 through September 30, unless situations occur that require the airport manager to modify the hours.) (Ord. 1652 § B, 4-20-2004) 4-2.15: COMMON USE AREAS:
All runways, taxiway, and associated turnoffs, and aprons, together with associated lighting, marking and navigational fixtures shall be considered common use areas and shall be maintained as being available for use by all persons flying or operating aircraft on the airport. Certain areas of the main ramp, including parking areas and helipads shall also be designated as common use areas. No FBO or other person shall use any common use area for the parking or storing of aircraft, repair, servicing, or for any other purpose other than the flying and operation of aircraft, without the prior consent or authorization of the airport manager/airport operations supervisor. (Ord. 1652 § B, 4-20-2004) 4-2.20: MAINTENANCE:
Unless otherwise authorized by the airport manager/airport operations supervisor, no aircraft or vehicle maintenance (other than that required to remove damaged aircraft from the runway or taxiway, or replacing a flat tire) shall be performed on the Porterville municipal airport except in areas specifically designated by the airport manager/airport operations supervisor for that purpose. (Ord. 1652 § B, 4-20-2004)
4-2.25: ANIMALS:
A. No person shall wilfully and knowingly permit any animal owned, possessed or harbored by him to enter the airport unless the animal is leashed or restricted so as to be under control, or in a shipping container, or otherwise under physical restraint. Nor shall he permit such animal, except a "seeing eye" dog, to enter any airport building.
B. Owner shall be responsible for cleanup of animal defecation. (Ord. 1652 § B, 4-20-2004) 4-2.30: BASED AIRCRAFT:
Any person desiring to store or base his/her aircraft at the Porterville municipal airport shall register his aircraft at the airport office prior to beginning such storage or operations, and at any time that a change in ownership occurs. The use of the airport or any of its facilities in any manner shall create an obligation on the part of the user to obey all of the rules and regulations. (Ord. 1652 § B, 4-20-2004)
4-2.35: COMMERCIAL ACTIVITY:
No person shall utilize the Porterville municipal airport for any revenue producing commercial activities without first obtaining a business license from the city for such activities and paying the fees and charges established for such use. The airport manager/airport operations supervisor shall maintain available for examination upon request, a schedule of fees and charges for the use of the airport and its facilities. Any aircraft owner who fails to pay any fee duly charged for aircraft owned or controlled by him shall have such aircraft subject to impounding until the fees are paid, along with any impound fees, or until the aircraft is sold for charges. (Ord. 1652 § B, 4-20-2004) 4-2.40: AIRCRAFT STORAGE AND PARKING:
Aircraft shall only be stored or parked at places designated by the airport manager/airport operations supervisor and such storage or parking shall be at the sole risk of the owner or operator of the aircraft, and without any responsibility of the Porterville municipal airport, the city, or any of its officers, agents or employees, for any loss of, or damage to the aircraft while so stored or parked. The owner or operator of the aircraft shall be responsible for the tying down and securing of his aircraft. He shall likewise be responsible for any liability arising from or caused by his aircraft or his activities. Transient aircraft shall only be parked in the area designated by the airport manager/airport operations supervisor. (Ord. 1652 § B, 4- 20-2004)
4-2.45: UNATTENDED AIRCRAFT:
No aircraft shall be left unattended on the airport unless properly secured or within a hangar. Owners of the aircraft left unattended shall be liable for damage to other aircraft or property resulting from the failure to adequately secure or tie down their aircraft. (Ord. 1652 § B, 4-20-2004)
4-2.50: RESTRICTED AREAS:
No person shall enter any restricted area which is posted or closed to the public except: a) persons duly authorized by the airport manager/airport operations supervisor; or b) law enforcement or firefighting personnel. (Ord. 1652 § B, 4-20-2004) 4-2.55: DUMPING REFUSE:
No person shall place, deposit, or dump any garbage, cans, bottles, papers, ashes, sewage, carcass of any dead animal, or any trash, rubbish, debris, or any other refuse in any location on the airport except in containers plainly marked for such purposes. (Ord. 1652 § B, 4-20-2004)
4-2.60: PLACE OF ABODE:
No person shall erect lodge shelters, structures, or house(s) on the airport nor shall any person reside at the airport without consent of the city council. (Ord. 1652 § B, 4-20-2004) ARTICLE III. AIRCRAFT FLIGHT RULES, GENERAL
SECTION:
4-3.05: Starting Engines
4-3.10: Taxiing
4-3.15: Takeoffs And Landings
4-3.20: Traffic Pattern
4-3.25: Noise
4-3.05: STARTING ENGINES:
No person shall start any aircraft engine on the Porterville Municipal Airport:
A. Unless a competent operator is at the controls;
B. Unless the aircraft is equipped with adequate brakes fully applied or the wheels are securely blocked with blocks or chocks that can be removed safely;
C. When the aircraft is in such a position that the propeller slipstream or jet blast can cause damage to, or interfere with the operation of other aircraft, vehicles, mobile equipment, hangar shops or other buildings, or can cause injury to passengers, spectators or other personnel. (Ord. 1652 § B, 4-20-2004) 4-3.10: TAXIING:
A. No person shall taxi any aircraft into, out of, or within any hangar or other building on or adjacent to the airport.
B. Nor shall any person move any aircraft under its own power on the airport unless he is in full control of such aircraft, and has assured himself that there is no danger of collision with other aircraft, vehicles, equipment, buildings, or other obstacles.
C. Aircraft shall be taxied at a safe speed.
D. No aircraft shall use the runway for taxi back purpose, unless communicating intentions over Unicom.
E. No aircraft shall be taxied without an adequate braking system, unless aircraft is accompanied by an attendant to help in stopping or slowing movement. (Ord. 1652 § B, 4-20-2004) 4-3.15: TAKEOFFS AND LANDINGS:
No aeronautical activity shall be conducted at the Porterville Municipal Airport except in conformance with current federal air regulations, state of California law and regulations, and this chapter. (Ord. 1652 § B, 4-20-2004) 4-3.20: TRAFFIC PATTERN:
It is recommended that every aircraft, before landing and after takeoff, shall be flown in accordance with the traffic pattern illustrated on the diagrams included in chapter 21, article 500 of this code. Aircraft traveling faster than one hundred twenty five (125) knots per hour, shall be flown using the outside pattern shown on said chapter 21. If a conflict is observed, the right of way rules of FAR 91.113 shall prevail. In all cases, the offending aircraft shall yield the right of way as appropriate and overfly the pattern to reenter the downwind leg of the pattern. (Ord. 1652 § B, 4-20-2004) 4-3.25: NOISE:
A. No person shall operate any aircraft in flight or on the ground so as to cause unnecessary noise as determined by the applicable federal or state or local laws and regulations.
B. No person shall unnecessarily create noise through loudspeaker systems, radios or other means, or to create disturbances of a nature which will disturb other airport tenants or users of the airport facility. (Ord. 1652 § B, 4-20-2004) ARTICLE IV. VEHICLE OPERATIONS
SECTION:
4-4.05: General
4-4.10: Right Of Way
4-4.15: Motor Vehicle Speed Limits
4-4.20: Parking
4-4.25: Short Term Parking
4-4.30: Long Term Storage
4-4.35: Accident Reports
4-4.40: Motorbikes, Bicycles, Skateboards
4-4.05: GENERAL:
All persons who operate motor vehicles on airport premises shall do so in accordance with all applicable federal, state, and city rules and regulations. The airport operations area was designed for aircraft use and for safety. Vehicular traffic must be kept to a minimum. (Ord. 1652 § B, 4-20-2004)
4-4.10: RIGHT OF WAY:
Motor vehicle traffic shall yield the right of way to aircraft. Right of way shall also be given to emergency response equipment and aircraft fueling vehicles. When emergency conditions exist on the field area, motor vehicles not involved in the emergency shall remain a safe distance away from the emergency area and abide by all existing airport regulations. (Ord. 1652 § B, 4-20-2004)
4-4.15: MOTOR VEHICLE SPEED LIMITS:
No person shall operate any motor vehicle on the airport in excess of ten (10) miles per hour, except emergency vehicles responding to an emergency situation. (Ord. 1652 § B, 4-20-2004) 4-4.20: PARKING:
Vehicles shall not be parked on the airport other than in the manner and locations indicated by posted traffic signs. Vehicles parked other than as specified in this section may be removed by airport personnel, and in such event a towing charge will be levied prior to releasing the vehicle from impound. No liability for damages sustained by such vehicles during said movement will be assumed by the city of Porterville or any of its officers or employees. (Ord. 1652 § B, 4-20-2004) 4-4.25: SHORT TERM PARKING:
The parking lot located adjacent to the administration building is available for public parking for less than seventy two (72) hours. Parking inside the airport security fences, in a designated parking area, is permitted for a fee per the airport fee schedule set by city council resolution. This fee schedule will be reviewed by city council on an annual basis. (Ord. 1652 § B, 4-20-2004)
4-4.30: LONG TERM STORAGE:
The city does not authorize long term storage of vehicles, operable or not, except as provided below:
Persons desiring to store and not move a vehicle off the airport's common area for more than seventy two (72) consecutive hours must ask the permission of the airport manager/airport operations supervisor. A long term parking permit may be purchased. The permit fee shall be set by city council resolution. This fee schedule will be reviewed by city council on an annual basis. (Ord. 1652 § B, 4-20-2004)
4-4.35: ACCIDENT REPORTS:
All persons involved in a vehicle accident, occurring on the airport, shall make a full report to the city police department as soon after the accident as possible. This report shall include names and addresses of all persons involved. (Ord. 1652 § B, 4-20-2004)
4-4.40: MOTORBIKES, BICYCLES, SKATEBOARDS:
Skateboards are prohibited on the airport. Further, no person shall ride or park motorbikes, bicycles, or other equipment in the aircraft movement area in such a manner as to cause distraction or create an obstruction to aircraft, pedestrian traffic or authorized vehicles or in front of "No Vehicle Parking" signs. (Ord. 1652 § B, 4-20-2004) ARTICLE V. FIRE HAZARDS
SECTION:
4-5.00: Compliance With Fire Code
4-5.05: Sources Of Ignition
4-5.10: Smoking
4-5.15: Housekeeping
4-5.20: Fire Department Access
4-5.25: Dispensing Flammable And Combustible Liquids
4-5.30: Combustible Storage Inside Of Hangars
4-5.35: Hazardous Material Disposal
4-5.40: Aircraft Maintenance
4-5.45: Cleaning Parts
4-5.50: Spills
4-5.55: Notification Of Fire Department In Event Of Spill 4-5.60: Engine Run
4-5.65: Portable Fire Extinguishers
4-5.70: Reporting Of Use
4-5.75: Operation, Maintenance And Use Of Aircraft Fueling Vehicles 4-5.80: Open Flames On Aircraft Fuel Servicing Ramps
4-5.85: Aircraft Fuel Servicing Locations
4-5.00: COMPLIANCE WITH FIRE CODE:
All activities at the Porterville municipal airport shall be in compliance with the latest edition of the uniform fire code (UFC) with state amendments as adopted by the city of Porterville. (Ord. 1652 § B, 4-20-2004) 4-5.05: SOURCES OF IGNITION:
Open flames, flame producing devices and other sources of ignition shall not be permitted except where allowed by the fire code. (Ord. 1652 § B, 4-20-2004)
4-5.10: SMOKING:
Smoking shall be prohibited in aircraft refueling vehicles, commercial aircraft hangars, and aircraft operation areas. No smoking signs shall be provided in accordance with the fire code. (Ord. 1652 § B, 4-20-2004) 4-5.15: HOUSEKEEPING:
The aircraft operation area (AOA) and related areas shall be kept free of combustible debris at all times. (Ord. 1652 § B, 4- 20-2004)
4-5.20: FIRE DEPARTMENT ACCESS:
Fire lanes and access roads shall be provided and maintained and shall not be blocked. (Ord. 1652 § B, 4-20-2004) 4-5.25: DISPENSING FLAMMABLE AND COMBUSTIBLE LIQUIDS:
Dispensing, transferring and storage of flammable and combustible liquids shall be in accordance with UFC. (Ord. 1652 § B, 4-20-2004)
4-5.30: COMBUSTIBLE STORAGE INSIDE OF HANGARS:
Combustible materials stored in aircraft hangars shall be stored in approved locations and containers as allowed by the fire code. (Ord. 1652 § B, 4-20-2004)
4-5.35: HAZARDOUS MATERIAL DISPOSAL:
No person shall dispose of any hazardous materials in any manner other than as designated by the United States environmental protection agency, the department of environmental conservation, the laws and regulations of the state of California, the city of Porterville and/or otherwise designated by the airport manager/airport operations supervisor. (Ord. 1652 § B, 4-20-2004)
4-5.40: AIRCRAFT MAINTENANCE:
Aircraft maintenance shall only be done in accordance with the UFC. (Ord. 1652 § B, 4-20-2004) 4-5.45: CLEANING PARTS:
Class 1-A liquids shall not be used to clean aircraft, aircraft parts or aircraft engines. (Ord. 1652 § B, 4-20-2004) 4-5.50: SPILLS:
Spills shall be cleaned immediately. (Ord. 1652 § B, 4-20-2004) 4-5.55: NOTIFICATION OF FIRE DEPARTMENT IN EVENT OF SPILL:
The fire department shall be notified of any fuel spill that is considered a hazard to people or property or that meets one or more of the following criteria, any dimension of the spill is greater than ten feet (10'), or the spill area is greater than fifty (50) square feet. (Ord. 1652 § B, 4-20-2004)
4-5.60: ENGINE RUN:
Aircraft engines shall not be run in aircraft hangars except in approved engine test areas. (Ord. 1652 § B, 4-20-2004) 4-5.65: PORTABLE FIRE EXTINGUISHERS:
Portable fire extinguishers shall be provided as per the fire code. (Ord. 1652 § B, 4-20-2004) 4-5.70: REPORTING OF USE:
Use of any fire extinguisher equipment under any circumstances shall be reported to the airport manager/airport operations supervisor of the airport and the fire chief immediately after use. (Ord. 1652 § B, 4-20-2004) 4-5.75: OPERATION, MAINTENANCE AND USE OF AIRCRAFT FUELING VEHICLES:
Operation, maintenance and use of aircraft fueling vehicles shall be in compliance with the fire code. (Ord. 1652 § B, 4-20- 2004)
4-5.80: OPEN FLAMES ON AIRCRAFT FUEL SERVICING RAMPS:
Open flames and open flame devices are prohibited within fifty feet (50') of any aircraft fuel servicing operation or fueling equipment. (Ord. 1652 § B, 4-20-2004)
4-5.85: AIRCRAFT FUEL SERVICING LOCATIONS:
Aircraft fuel transfer operations shall be prohibited indoors and comply with the fire code. (Ord. 1652 § B, 4-20-2004) ARTICLE VI. AIRCRAFT HANGARS/TIE DOWN PERMITS
SECTION:
4-6.05: General
4-6.10: Aircraft Storage
4-6.15: Tenants/Lessee
4-6.20: Hangar/Tie Down Agreements
4-6.22: City Owned Hangars
4-6.25: Proof Of Ownership
4-6.30: Additional Use
4-6.35: Agreement/Permit Transference
4-6.40: Incidental Storage
4-6.41: Vehicle Storage
4-6.45: Outside Parking
4-6.50: Maintenance
4-6.51: Disassembled Aircraft
4-6.55: Engine Run
4-6.60: Business Activities
4-6.65: Additional Occupancy
4-6.70: Hangar Inspection
4-6.75: Fire And Safety
4-6.76: Bequest Of Hangar/Tie Down/Lease
4-6.77: Use Of Hangar/Tie Down
4-6.80: Payment Terms And Conditions
4-6.85: Notice Of Infraction
4-6.05: GENERAL:
This article refers to the general occupancy of private aircraft storage hangars on the airport. Distinction is made between such small hangars and larger FBOs or aircraft maintenance facilities. This article applies exclusively to smaller, private aircraft storage hangars. The occupancy of larger maintenance or FBO hangars is addressed in article VII of this chapter. (Ord. 1652 § B, 4-20-2004)
4-6.10: AIRCRAFT STORAGE:
No person shall park or store any aircraft or associated equipment in any hangar on the airport except by authority of and in compliance with the provisions of this article. (Ord. 1652 § B, 4-20-2004) 4-6.15: TENANTS/LESSEE:
All tenants of hangars and/or holders of tie down permits shall be subject to the following terms and conditions:
A. Aircraft shall be stored only in hangars or tie down spaces assigned by the airport manager/airport operations supervisor. Occasionally it may be necessary for the airport manager/airport operations supervisor to relocate airplanes.
B. When more than one aircraft (owned by the same person) can be stored safely in a hangar the airport manager/airport operations supervisor will be notified in writing. (Ord. 1652 § B, 4-20-2004) 4-6.20: HANGAR/TIE DOWN AGREEMENTS:
All hangar agreements and tie down permits (except hangars and tie downs under control of concession lessees) shall be assigned by the airport manager/airport operations supervisor based upon present rent or fees. An agreement for permanent hangar storage or tie down permit must be in the name of an individual, flying club, corporation or entity.
Tenants/permittee(s)/lessee(s) must be at least eighteen (18) years old to sign a permit agreement. (Ord. 1652 § B, 4-20- 2004)
4-6.22: CITY OWNED HANGARS:
All city owned hangar tenants shall be responsible for hangar damage caused by their occupancy other than proven vandalism or acts of God. Such damage refers particularly to rough use or misuse of hangar doors by tenants or visitors. (Ord. 1652 § B, 4-20-2004)
4-6.25: PROOF OF OWNERSHIP:
The airport manager/airport operations supervisor shall require tenants/permittees to establish proof of ownership or vested interest for the aircraft. (Ord. 1652 § B, 4-20-2004)
4-6.30: ADDITIONAL USE:
Individual aircraft hangars are allowed on the airport for the primary purpose of aircraft storage and the normal maintenance, repair and service activities associated with said aircraft. Any additional uses within said hangars shall comply with all applicable city regulations. (Ord. 1652 § B, 4-20-2004) 4-6.35: AGREEMENT/PERMIT TRANSFERENCE:
Lessee shall not sublet the premises, or any part thereof or assign, transfer, mortgage, or otherwise convey this agreement without the prior written consent of the city. Any consent by the city to any sublease, assignment, transfer, mortgage, or conveyance shall not be deemed or construed as a consent to any other different or subsequent sublease, assignment, transfer, mortgage, or conveyance. (Ord. 1652 § B, 4-20-2004) 4-6.40: INCIDENTAL STORAGE:
Storage of personal items, in addition to aircraft storage, within the hangar shall conform to all local fire and safety codes and the provisions of these regulations. (Ord. 1652 § B, 4-20-2004) 4-6.41: VEHICLE STORAGE:
Vehicles belonging to the hangar or aircraft owner and guests may be stored in the hangar while the aircraft is away, or for other short durations of time. The storage of any motor vehicle within a hangar shall conform to applicable fire and safety codes. (Ord. 1652 § B, 4-20-2004)
4-6.45: OUTSIDE PARKING:
No vehicle shall be parked or left unattended in any aircraft operating area or in a manner which limits aircraft operation.
Vehicles may be stopped in such areas for short periods of time so long as the owner is readily available to move the vehicles should the needs of aircraft traffic so dictate. (Ord. 1652 § B, 4-20-2004) 4-6.50: MAINTENANCE:
Maintenance in private hangars shall be limited to routine service and inspection of owner's personal aircraft. Said maintenance may include minor repair, required lubrication and engine oil change, and component replacement by aircraft owner or authorized mechanic. All other maintenance activities shall be done in accordance with applicable fire and safety codes. Other FAA maintenance tasks are approved only if the hangar meets current building, fire, and zoning regulations. (Ord. 1652 § B, 4-20-2004)
4-6.51: DISASSEMBLED AIRCRAFT:
Aircraft in any state of disrepair or assembly may be stored in the hangar while awaiting repairs. Long term storage of such aircraft shall be subject to the fire and safety provisions of this code. (Ord. 1652 § B, 4-20-2004) 4-6.55: ENGINE RUN:
No aircraft engine shall be run while inside any hangar. Aircraft shall be moved from the hangar to a safe position as provided in section 4-3.05 of this chapter for run up, or at least outside of the hangar for low power engine runs. (Ord. 1652 § B, 4-20-2004)
4-6.60: BUSINESS ACTIVITIES:
No person shall conduct any type of business activity or service from individual hangars, unless specifically authorized by city. (Ord. 1652 § B, 4-20-2004)
4-6.65: ADDITIONAL OCCUPANCY:
No residential occupancy or use shall be allowed in an aircraft storage hangar or elsewhere on the airport unless specifically authorized by city. (Ord. 1652 § B, 4-20-2004)
4-6.70: HANGAR INSPECTION:
City may inspect each hangar annually, and more often if deemed necessary to determine compliance. (Ord. 1652 § B, 4- 20-2004)
4-6.75: FIRE AND SAFETY:
All occupants of aircraft hangars shall comply with this article, as well as all principles of fire safety. All persons shall exercise the utmost care to guard against any threat of fire or injury to persons and property on the airport. All occupancies shall comply with applicable provisions of city regulations. (Ord. 1652 § B, 4-20-2004) 4-6.76: BEQUEST OF HANGAR/TIE DOWN/LEASE:
Upon the death of a hangar tenant/tie down permittee/lessee, a hangar/tie down permit/lease may be transferred to an heir by inheritance of the aircraft. (Ord. 1652 § B, 4-20-2004) 4-6.77: USE OF HANGAR/TIE DOWN:
No tenant/permittee/lessee may sublease, subrent, his hangar/tie down permit/lease to another person for storage, charter, rental or otherwise without notifying the airport manager/airport operations supervisor and according to standard procedure set forth. The use of hangar/tie down by an aircraft other than the tenant/permittee/lessee must be approved by the airport manager/airport operations supervisor.
A tenant/lessee may sublet a portion of his hangar to a second owner whose aircraft will safely fit in the available space. In such an instance, the second occupant of the space is subject to the same rules and regulations as if they were a primary tenant/lessee. The subtenant/lessee is not the primary tenant/lessee under any circumstance and must comply with all applicable provisions of city regulations. (Ord. 1652 § B, 4-20-2004) 4-6.80: PAYMENT TERMS AND CONDITIONS:
A. Payment Schedule:
1. All city owned hangar agreements/tie down permits will be on a monthly basis with an option to renew.
2. All private hangar land leases will be billed as per the lease agreement.
3. Rental agreements/permits will be prorated to the nearest week upon initial occupancy, but not prorated upon termination of occupancy.
B. Delinquent Accounts: Rules and regulations prescribing penalties and procedures relating to delinquent accounts of the airport are as follows:
For the purpose of these rules and regulations every airport tenant, permit account, lease shall become due and payable on the first day of the calendar month during which the agreement, permit or instrument of tenancy became effective. It shall remain due and owing to the city together with all penalties thereon as herein prescribed, until paid in full, unless otherwise expressly provided by terms of such agreement, permit, or lease.
1. For the purpose of these rules and regulations, all such accounts shall be classified as delinquent when not paid in full by the tenth of the calendar month in which said accounts shall become due, unless otherwise expressly provided by the agreement.
2. Tenant, permit accounts, leases delinquent for thirty (30) days, or on the tenth day of the month succeeding the date the account initially became due, will be subject to the following procedure:
a. A penalty of ten percent (10%) of the sum will be added to the original amount due. b. A due bill will be prepared clearly setting forth the sum and the basic amount. The bill will designate the amount of the penalty, and will be sent to the delinquent party by registered mail accompanied by a letter of termination of tenancy/lease; said termination to be effective on the forty fifth day of delinquency, which will be fifty five (55) days succeeding the date the account first became due.
3. Upon termination of any agreement, by the foregoing procedure, the former tenant/permittee/lessee shall at once relinquish and vacate any and all premises of the airport and shall return any and all lands, building or properties if owned by the city to the control of the city, and the tenant/permittee/lessee shall have no further right, title, estate or interest in said airport.
4. The provisions of these rules and regulations, when carried to termination, shall in no way mitigate, modify or cancel any tenant/permittee/lessee indebtedness to the city and any delinquent account shall be subject to any and all methods of collection determined appropriate by the city.
5. Reinstatement of an agreement/permit/lease terminated by the forgoing procedure may be accomplished only by complete payment of any and all indebtedness, including penalties, and by instituting a successful request for such consideration by the airport manager. Reinstatement action described herein shall be subject to an administrative charge payable by said applicant in advance.
6. The provisions of these rules shall be deemed a part of each and every agreement or permit now in effect and heretofore issued to any tenant or permittee of any portion of the airport, or which may be hereafter issued to any party. (Ord. 1652 § B, 4-20-2004)
4-6.85: NOTICE OF INFRACTION:
The tenant will be given a notice of infraction if he violates the provisions of these rules or other applicable rules, ordinances, resolutions or regulations. Within thirty (30) days the tenant may exercise the appeal process in article XIII of this chapter unless superseded by a current and valid lease agreement. (Ord. 1652 § B, 4-20-2004) ARTICLE VII. FIXED BASE OPERATORS
SECTION:
4-7.05: General
4-7.10: Classification
4-7.20: City Representation
4-7.25: Lease Transference
4-7.30: Incidental Storage
4-7.35: Vehicle Storage
4-7.40: Outside Parking
4-7.45: Engine Run
4-7.50: Additional Occupancy
4-7.55: Hangar Inspection
4-7.60: Fire And Safety
4-7.65: Bequest Of Lease
4-7.70: Payment Terms And Conditions
4-7.75: Notice Of Infraction
4-7.05: GENERAL:
This article applies to any person or entity who provides aviation support services to the flying public. (Ord. 1652 § B, 4-20- 2004)
4-7.10: CLASSIFICATION:
Fixed base operator (FBO) means any person who rents, leases or owns facilities located in an area designated for FBOs at the Porterville municipal airport, who, by virtue of his specific type of aviation (or aviation related) activity, requires the occupancy of a site with contiguous aircraft apron and direct access to the aircraft operation area, and who engages in a business activity providing aviation sales or services, including, but not limited to, any of the following:
A. Selling and/or servicing new and used aircraft and component parts.
B. Aircraft maintenance and repairs.
C. Sales and/or repair of avionics.
D. Aviation training (including ground or flight instruction).
E. Aerial photography.
F. Air ambulance service.
G. Aircraft agricultural operations (crop dusting, spraying, or the application of seed, fertilizers, pesticides, defoliants, etc.).
H. Aircraft rental, charter, and leasing.
I. Hangar rentals in support of FBOs. (Ord. 1652 § B, 4-20-2004) 4-7.20: CITY REPRESENTATION:
No employee or representative of any FBO or lessee shall be authorized or assumed to be authorized to act as an agent for or on behalf of the city in matters of airport operation or policy. (Ord. 1652 § B, 4-20-2004) 4-7.25: LEASE TRANSFERENCE:
Lessee shall not sublet the premises, or any part thereof or assign, transfer, mortgage, or otherwise convey this agreement without the prior written consent of the city. Any consent by the city to any sublease, assignment, transfer, mortgage, or conveyance shall not be deemed or constructed as a consent to any other different or subsequent sublease, assignment, transfer, mortgage, or conveyance. (Ord. 1652 § B, 4-20-2004) 4-7.30: INCIDENTAL STORAGE:
Storage of items, in addition to aircraft storage, within the hangar shall conform to all local fire and safety codes and the provisions of these regulations. (Ord. 1652 § B, 4-20-2004) 4-7.35: VEHICLE STORAGE:
Vehicles belonging to the hangar or aircraft owner and guests may be stored in the hangar for short durations of time. The storage of any motor vehicle within a hangar shall conform to applicable fire and safety codes. (Ord. 1652 § B, 4-20-2004) 4-7.40: OUTSIDE PARKING:
No vehicle shall be parked or left unattended in any aircraft operating area or in a manner which limits aircraft operation.
Vehicles may be stopped in such areas for short periods of time so long as the owner is readily available to move the vehicles should the needs of aircraft traffic so dictate. (Ord. 1652 § B, 4-20-2004) 4-7.45: ENGINE RUN:
No aircraft engine shall be run while inside any hangar. Aircraft shall be moved from the hangar to a safe position as provided in section 4-3.05 of this chapter for run up, or at least outside of the hangar for low power engine runs. (Ord. 1652 § B, 4-20-2004)
4-7.50: ADDITIONAL OCCUPANCY:
No residential occupancy or use shall be allowed in an aircraft storage hangar or elsewhere on the airport unless specifically authorized by city. (Ord. 1652 § B, 4-20-2004)
4-7.55: HANGAR INSPECTION:
City may inspect each hangar annually, and more often if deemed necessary to determine compliance. (Ord. 1652 § B, 4- 20-2004)
4-7.60: FIRE AND SAFETY:
All occupants of aircraft hangars shall comply with this article, as well as all principles of fire safety. All persons shall exercise the utmost care to guard against any threat of fire or injury to persons and property on the airport. All occupancies shall comply with applicable provisions of city regulations. (Ord. 1652 § B, 4-20-2004) 4-7.65: BEQUEST OF LEASE:
With the death of a lessee, a lease may be transferred to an heir by inheritance of the aircraft. (Ord. 1652 § B, 4-20-2004) 4-7.70: PAYMENT TERMS AND CONDITIONS:
A. Delinquent Accounts: Rules and regulations prescribing penalties and procedures relating to delinquent accounts of the airport are as follows:
For the purpose of these rules and regulations every airport lease shall become due and payable on the first day of the calendar month during which the agreement became effective. It shall remain due and owing to the city together with all penalties thereon as herein prescribed, until paid in full, unless otherwise expressly provided by terms of such lease.
1. For the purpose of these rules and regulations, all such accounts shall be classified as delinquent when not paid in full by the tenth of the calendar month in which said accounts shall become due, unless otherwise expressly provided by the agreement.
2. Leases delinquent for thirty (30) days, or on the tenth day of the month succeeding the date of the account initially became due, will be subject to the following procedure:
a. A penalty of ten percent (10%) of the sum will be added to the original amount due. b. A due bill will be prepared clearly setting forth the sum and the basic amount. The bill will designate the amount of the penalty, and will be sent to the delinquent party by registered mail accompanied by a letter of termination of lease; said termination to be effective on the forty fifth day of delinquency, which will be fifty five (55) days succeeding the date the account first became due.
3. Upon termination of any agreement, by the foregoing procedure, the former lessee shall at once relinquish and vacate any and all premises of the airport and shall return any and all lands, building or properties if owned by the city to the control of the city, and the lessee shall have no further right, title, estate or interest in said airport. Personal property shall be removed upon termination of the lease. Hangar(s) will be removed within ninety (90) days during which the hangar owner will be responsible for the lease payment.
4. The provisions of these rules and regulations, when carried to termination, shall in no way mitigate, modify or cancel any lessee indebtedness to the city and any delinquent account shall be subject to any and all methods of collection determined appropriate by the city.
5. Reinstatement of a lease terminated by the foregoing procedure may be accomplished only by complete payment of any and all indebtedness, including penalties, and by instituting a successful request for such consideration by the airport manager. Reinstatement action described herein shall be subject to an administrative charge payable by said applicant in advance.
6. The provisions of these rules shall be deemed a part of each and every agreement or permit now in effect and heretofore issued to any lessee of any portion of the airport, or which may be hereafter issued to any party. (Ord. 1652 § B, 4-20-2004)
4-7.75: NOTICE OF INFRACTION:
The lessee will be given a notice of infraction if he violates the provisions of these rules or other applicable rules, ordinances, resolutions or regulations. Within thirty (30) days the lessee may exercise the appeal process in article XIII of this chapter. (Ord. 1652 § B, 4-20-2004)
ARTICLE VIII. EMERGENCY
SECTION:
4-8.05: General
4-8.10: Notification
4-8.15: Response Activation
4-8.25: Right Of Way
4-8.30: Emergency Vehicle Right Of Way
4-8.35: Speed Waiver
4-8.40: Authorized Personnel
4-8.45: Incident Command
4-8.50: Airport Personnel
4-8.55: Aircraft Accident
4-8.60: Automatic Closure
4-8.65: Removal Of Aircraft
4-8.70: Scene Preservation
4-8.75: Owner Responsibility
4-8.80: City Responsibility
4-8.85: City Indemnity
4-8.90: Aircraft Storage
4-8.95: Special Handling
4-8.96: Airport Closure
4-8.05: GENERAL:
This article provides for the authority and designated responsibilities of individuals and agencies in the event of an airport emergency. Such emergencies would include fires of any type, aircraft emergencies or accident, or incident of personal injury. (Ord. 1652 § B, 4-20-2004)
4-8.10: NOTIFICATION:
It shall be the responsibility of any person or airport tenant who observes or has knowledge of any type of airport emergency which has not, to their knowledge, been reported, to initiate a report as specified. Said report shall be accomplished by dialing 9-1-1 from any airport telephone or otherwise contacting the city police/fire department. The person shall then give the dispatcher all information which he has available. (Ord. 1652 § B, 4-20-2004) 4-8.15: RESPONSE ACTIVATION:
Upon receipt of notification of an airport emergency, the police/fire dispatcher shall activate the fire department and/or police department. (Ord. 1652 § B, 4-20-2004)
4-8.25: RIGHT OF WAY:
All persons not responding to an airport emergency shall yield the right of way to emergency service personnel. (Ord. 1652 § B, 4-20-2004)
4-8.30: EMERGENCY VEHICLE RIGHT OF WAY:
Emergency service vehicles displaying proper red lights and other required markings shall have the right of way on all taxiways. When responding to an aircraft incident, all aircraft and other vehicles shall yield to said equipment. (Ord. 1652 § B, 4-20-2004)
4-8.35: SPEED WAIVER:
The airport speed limit requirements are waived for all emergency vehicles and authorized personnel responding to an airport emergency. (Ord. 1652 § B, 4-20-2004)
4-8.40: AUTHORIZED PERSONNEL:
Upon the arrival of the fire department and/or police department to an airport emergency, all other persons, including aircraft owners, operators, and interested parties shall remain clear of the area until the designated incident commander has determined that the accident scene is stabilized and safe for entry by airport personnel. The airport manager/airport operations supervisor shall then designate only those essential persons authorized to enter the accident scene. (Ord. 1652 § B, 4-20-2004)
4-8.45: INCIDENT COMMAND:
Immediately upon arrival at any airport emergency, the affected area shall come under the full control of the fire department and the designated incident commander. The incident commander shall control all access to and from the site, as well as all rescue, stabilization, and suppression efforts. (Ord. 1652 § B, 4-20-2004) 4-8.50: AIRPORT PERSONNEL:
It shall be the duty of the airport manager/airport operations supervisor to coordinate or even curtail any and all airport operations which may be in conflict with or endangered by an emergency situation. (Ord. 1652 § B, 4-20-2004) 4-8.55: AIRCRAFT ACCIDENT:
Aircraft accident scenes, as defined by FAR, fall within the jurisdiction of the FAA and its associated investigating bodies. All persons on or near a crash scene shall preserve any and all aircraft pieces, parts, papers, and other pertinent data and document their positions and content as additional aid to the appropriate investigating authority. Only those persons authorized by the incident commander or the airport manager/airport operations supervisor shall be on the accident scene or within two thousand feet (2,000') thereof. (Ord. 1652 § B, 4-20-2004) 4-8.60: AUTOMATIC CLOSURE:
Any runway, taxiway, or other operating area of the airport which becomes the scene of an aircraft accident shall immediately be considered closed and unusable until determined otherwise by the airport manager/airport operations supervisor. The airport manager/airport operations supervisor shall provide for proper notification of closures and the coordination of air traffic so long as the closure remains in effect. (Ord. 1652 § B, 4-20-2004) 4-8.65: REMOVAL OF AIRCRAFT:
No aircraft or parts thereof shall be removed from an accident scene until such removal has been authorized by the appropriate FAA/NTSB representative. Airport management may assist in securing proper removal authority; however, it shall be the ultimate responsibility of the aircraft owner to acquire the proper authorizations for removal, as specified by federal regulation. (Ord. 1652 § B, 4-20-2004)
4-8.70: SCENE PRESERVATION:
In the event an accident scene must be preserved for a prolonged period of time, the airport manager shall provide for adequate protection as may be necessary for such preservation. The charges for any such protection shall be borne by the aircraft owner. (Ord. 1652 § B, 4-20-2004)
4-8.75: OWNER RESPONSIBILITY:
Any aircraft involved in an accident or incident on the airport shall bear the responsibility of the registered owner for its prompt and proper removal from the accident site. Said removal shall be accomplished only after proper authorization has been received as specified in section 4-8.65 of this article. The owner may engage local services at his option. (Ord. 1652 § B, 4-20-2004)
4-8.80: CITY RESPONSIBILITY:
In the case where an owner is unable to remove a disabled aircraft from an airport operating area, the airport manager/airport operations supervisor may at his discretion remove, or authorize the removal of said aircraft to the appropriate storage area. The charges for such removal shall be borne by the aircraft owner. (Ord. 1652 § B, 4-20-2004) 4-8.85: CITY INDEMNITY:
In the event that airport management removes said aircraft or parts thereof from an accident site in order to facilitate airport operations, to the fullest extent permitted by law, all tenants and persons shall indemnify, defend and hold harmless airport management, its agents and employees from and against all claims, damages, losses and expenses attributed to bodily injury, sickness, disease or death, or injury to or destruction of tangible property including the loss of use resulting therefrom, regardless of whether or not it is caused in part by a party indemnified hereunder, and including, but not limited to, attorney fees, arising out of, resulting from, or in any manner related to any work performed or services provided in the course of such a removal. Said removal shall be done only after the proper authorization has been obtained from the FAA, and only if it is determined to be necessary to assist airport operation, or to protect the safety of the general public and users of the airport. (Ord. 1652 § B, 4-20-2004)
4-8.90: AIRCRAFT STORAGE:
Any aircraft involved in an accident or incident which is rendered disabled or unairworthy shall be parked or stored in an area designated by the airport manager/airport operations supervisor. (Ord. 1652 § B, 4-20-2004) 4-8.95: SPECIAL HANDLING:
The registered owner of any aircraft which requires special handling, parking or storage as a result of an accident, shall be responsible for any and all charges incurred as a result of such storage. (Ord. 1652 § B, 4-20-2004) 4-8.96: AIRPORT CLOSURE:
The airport manager/airport operations supervisor is hereby directed and authorized to close the airport, or portions thereof, or suspend operations related to the landing, takeoff, or taxiing of aircraft during any period in which he/she determines that such operations, or their continuance, would be hazardous. Causes for such closure could include, but would not be limited to, runway maintenance or repairs, runway obstacles, fire, aircraft or other accident. Any such closure shall be effective only during such time as there is placed at each end of each runway so closed, a letter "X", the arms of which are at least sixty feet (60') long and twenty feet (20') wide, and so colored as to contrast with the background or other surface. The airport manager/airport operations supervisor shall immediately notify the Rancho Murrieta flight service station and issue a notice to airmen (NOTAM), advising of the closure. Phone 1-800-992-7433. (Ord. 1652 § B, 4-20-2004) ARTICLE IX. FUELING AND SALES
SECTION:
4-9.05: Aircraft Fueling And Defueling
4-9.10: Fuel Sales
4-9.05: AIRCRAFT FUELING AND DEFUELING:
All fueling operations conducted at the Porterville airport shall be in compliance with city regulations and the uniform fire code.
A. No aircraft shall be fueled or defueled while the aircraft engine is running or while the aircraft is in a hangar or other enclosed space.
B. No smoking shall be permitted within fifty feet (50') of the aircraft or fuel truck while the aircraft is being fueled or defueled.
C. During fuel handling, no passenger shall be permitted in or on the aircraft.
D. All hoses, funnels and apparatus used in fueling or defueling activities shall be equipped properly with a grounding device to prevent possible static ignition of volatile liquids. Such grounding devices shall be used during all fueling and defueling activities.
E. During fueling handling activities, no person shall operate any radio transmitter or receiver, nor switch electrical appliances on or off in such aircraft, or in the immediate vicinity (50 feet) thereof.
F. Every person engaged in aircraft fuel handling shall exercise due care to prevent the overflow or spilling of fuel.
G. Any fuel spills in excess of forty four (44) gallons shall be reported to the airport manager/airport operations supervisor. All fuel spills shall be cleaned up immediately, following guidelines as set forth by the EPA.
H. During fuel handling, no person shall use any material or device which is likely to cause a static spark within fifty feet (50') of such aircraft or fuel truck.
I. Where there has been a fuel spill or leak, no person shall start the engine of any aircraft in close proximity until the spill or leak has been stopped and cleaned up. In the event of such spills or leaks, the fire department shall be notified.
J. All fueling equipment including, but not limited to, pumps and hoses shall be maintained in a safe and sound, nonleaking condition.
K. Prior to fuel transfer to storage tanks, the fuel dealer and dispensary shall conduct tests as to fuel type and signs of contamination. Furthermore, in accordance with environmental laws, the fuel dispensary or authorized agent shall conduct daily inventory reconciliation in order to assess fuel loss. A reconciliation log shall be maintained daily. Any fuel loss due to apparent leakage or any other reason shall be reported to the airport manager/airport operations supervisor. (Ord. 1652 § B, 4-20-2004)
4-9.10: FUEL SALES:
No person shall deliver aviation fuels or lubricants to, or dispense such fuel from, at, or upon the airport without written approval from the city council. For the right, privilege and concession of making deliveries of all types of aviation fuels and lubricants, and other fuels, to any person or location at or upon the airport, or to a bulk storage plant of an oil company on the airport, there is levied against such individual or firm a gallonage charge, which will be established by resolution of the city council, for each gallon so delivered. No fuel shall be stored anywhere on the airport except in tanks as may be approved by the fire department. (Ord. 1652 § B, 4-20-2004) ARTICLE X. INSURANCE
SECTION:
4-10.05: Liability
4-10.10: Routine Maintenance
4-10.15: City Liability
4-10.05: LIABILITY:
The privileges of using the airport and its facilities shall be conditioned upon the assumption of full responsibility and risk by the user thereof. To the fullest extent permitted by law the city, its agents, and/or employees shall not be liable for claims, damages, losses and expenses including, but not limited to, attorney fees arising out of, resulting from or in any manner related to loss, incident or mishap of any nature whatsoever, and/or from any cause whatsoever to individual, aircraft or property, which occurs at the airport. Such indemnification shall include loss or expense attributable to bodily injury, sickness, death or disease or any injury to or destruction of tangible property including the loss of use resulting therefrom regardless of whether or not it is caused in part by a party indemnified hereunder.
No person, firm or corporation shall maintain a local based aircraft at the airport unless such proprietor has filed with the airport manager/airport operations supervisor, and kept in current effect, a certificate of public liability insurance with the coverage set by the risk manager of the city of Porterville. This article shall apply to all airport users.
In order to protect the city, its agents, officers, and employees against all claims and liability for death, injury, loss, and damage as a result of use and operations on the airport, lessee shall name the city as additional insured on the aircraft insurance policy or policies. Such insurance for additional insured shall apply as primary insurance and any other insurance maintained by airport management shall be excess.
Provided coverage shall not be suspended, voided, canceled, reduced in coverage or otherwise materially changed except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been provided to airport management. (Ord. 1652 § B, 4-20-2004)
4-10.10: ROUTINE MAINTENANCE:
The city conducts routine maintenance and contracts for special events, construction and various airport improvement projects with certain equipment and machinery and because of these ongoing occurrences cannot fully protect aircraft or person using the airport facility from damage or injury to persons and/or property arising from dust, debris, vehicle equipment operation or the related condition of the facility. (Ord. 1652 § B, 4-20-2004) 4-10.15: CITY LIABILITY:
To the fullest extent permitted by law, the tenant and other persons on premises shall indemnify, defend and hold harmless the city, its agents and employees from and against all claims, demands, damages, debts, liabilities, obligations, costs, expenses, liens and actions or causes of actions of any kind whatsoever resulting from the activities including, but not limited to, foreign object damage, collision, equipment or vehicles, closure of gates, access, runway or ramp facilities or any other circumstances whatsoever. Tenant's indemnification to defend and hold harmless relative to city, its agents and employees, shall extend as well to attorney fees arising out of or resulting from any incident which occurs on the premises. (Ord. 1652 § B, 4-20-2004)
ARTICLE XI. ILLEGAL ACTIVITIES
SECTION:
4-11.05: Runway
4-11.10: Safety
4-11.15: Stunts
4-11.20: Business Permits
4-11.25: Disorderly Conduct
4-11.30: Intoxicating Liquors/Illicit Drug Use
4-11.35: Model And Radio Controlled Aircraft
4-11.05: RUNWAY:
No person shall land, take off, taxi, or otherwise operate any aircraft on, at, or from, the Porterville municipal airport when he/she knows such aircraft is not operating properly, or is equipped with any part or safety device which is defective or unsafe. Deviations from this restriction shall only be permitted by the issuance of a ferry permit by the FAA. Nor shall any aircraft be operated on or at the airport, or on any runway thereof, when the airport or runway has been closed to traffic by the airport manager/airport operations supervisor or other legal authority, and such closure has been indicated by the placement of an "X" at each end of the closed runway. (Ord. 1652 § B, 4-20-2004) 4-11.10: SAFETY:
No person shall operate any aircraft (or vehicle) on, at, or in the vicinity of the Porterville municipal airport in wilful or wanton disregard for the safety of persons or property, whether his own or that of others. (Ord. 1652 § B, 4-20-2004) 4-11.15: STUNTS:
No person shall engage in the performance of any aerobatics, stunt, maneuver not necessary to a normal takeoff, landing, normal turn or level flight of the aircraft over or within one mile of the exterior boundaries of the airport, except for FAA approved airshows. (Ord. 1652 § B, 4-20-2004)
4-11.20: BUSINESS PERMITS:
No person shall engage in the sale of any goods, wares, merchandise, or services at or upon the airport without first having complied with chapter 15, "Licenses And Business Regulations", of this code. (Ord. 1652 § B, 4-20-2004) 4-11.25: DISORDERLY CONDUCT:
No person shall commit any disorderly, obscene, indecent or unlawful act or commit any nuisance on the airport. (Ord. 1652 § B, 4-20-2004)
4-11.30: INTOXICATING LIQUORS/ILLICIT DRUG USE:
No person shall drink any intoxicating liquors upon any portion of the airport open to the public, except in a restaurant or other place designated and licensed for on-sale liquor dispensing, or in an area protected by the right to privacy.
No person shall become intoxicated or use habit forming and/or illicit drugs on any portion of the airport nor shall any person under the influence enter upon or loiter on or about the airport property. (Ord. 1652 § B, 4-20-2004) 4-11.35: MODEL AND RADIO CONTROLLED AIRCRAFT:
No model or radio controlled aircraft will be allowed on or above Porterville municipal airport property nor on any city property adjacent to the Porterville municipal airport nor any property within the city of Porterville that is under or near the pattern for aircraft or air vehicles at the Porterville municipal airport. (Ord. 1755, 6-2-2009) ARTICLE XII. SPECIAL EVENTS
SECTION:
4-12.00: Permit Required
4-12.05: Application
4-12.10: Evaluation
4-12.15: Liability Exposure
4-12.20: Liability Insurance
4-12.25: Crowd Control/Operations
4-12.00: PERMIT REQUIRED:
No person or organization shall hold or cause to be held any community civic event utilizing airport facilities, involving the assembly of more than ten (10) aircraft and/or thirty (30) people, outside of normal prescribed airport operations, without first obtaining a community civic event permit from the city. (Ord. 1652 § B, 4-20-2004) 4-12.05: APPLICATION:
An applicant for a community civic event shall submit an application to the city council. Such application shall include the name and address of the sponsoring organization, those principal persons involved, the scope and extent of the proposed event, and the number of persons and/or aircraft anticipated to attend. (Ord. 1652 § B, 4-20-2004) 4-12.10: EVALUATION:
Applications for a community civic event shall be evaluated on the basis of relative merit, compatibility with airport operations, anticipated benefit to the airport, the public, and the city of Porterville, and the compatibility with allowed uses for city and airport property. (Ord. 1652 § B, 4-20-2004)
4-12.15: LIABILITY EXPOSURE:
No application for an airport special events permit shall be approved which unduly creates additional hazard or liability exposure to the public, the airport, or the city of Porterville. (Ord. 1652 § B, 4-20-2004) 4-12.20: LIABILITY INSURANCE:
Each applicant for an airport special events permit shall provide adequate liability insurance in a form and by an underwriter approved by the state of California, to those minimum limits as specified by the city. Said insurance shall include coverage for liability and property damage, and insurance against liability for personal injury including accidental death, as well as liability for property damage which may arise in any way during the term of the permit. Such insurance shall remain in effect during that period of time of the event as specified in the special events permit. Each policy covering the special event on the airport shall name the city of Porterville as an additional primary insured without offset to the city's own liability insurance. (Ord. 1652 § B, 4-20-2004)
4-12.25: CROWD CONTROL/OPERATIONS:
A. Each applicant for an airport special events permit who proposes to involve more than thirty (30) persons outside of normal airport operations for said event shall submit a crowd control/operations plan to the airport manager/airport operations supervisor for review and approval. Such plan shall include, but not be limited to, provisions for the following as pertains to the proposed event:
1. Vehicle parking.
2. Transient (spectator) aircraft parking.
3. Participant aircraft parking.
4. Static display area.
5. Spectator area.
6. Crowd line.
7. Participant aircraft pattern and limitations.
8. Concession areas.
9. Public accommodations (restrooms, first aid, etc.).
10. Tactical communications.
11. Additional aircraft communications.
12. Ground handling of aircraft and vehicles.
13. Personnel training and coordination.
14. Public address and communication.
B. The airport manager/airport operations supervisor may waive, approve, or require additional information or provision for any of the elements above, based upon the scope of the proposed event. (Ord. 1652 § B, 4-20-2004) ARTICLE XIII. APPEALS PROCESS
SECTION:
4-13.05: Violations Of Regulations
4-13.05: VIOLATIONS OF REGULATIONS:
Violations of the regulations contained herein and administered by the airport manager/airport operations supervisor may result in a notice of violation or an order to cease. Any notice or order so levied may be appealed.
A. The person receiving the notice of violation or order to cease may appeal, in writing, within ten (10) working days to the airport manager/airport operations supervisor.
B. Within ten (10) days after the receipt of the appeal by the airport manager/airport operations supervisor the time and place for a meeting will be set to be held within thirty (30) days. Further actions by the airport manager/airport operations supervisor will be stayed (where the violation is not a hazard) pending the meeting. The person requesting the appeal shall have the right of the presence of any supporting person he chooses at the meeting. The decision reached shall be binding, subject to appeal.
C. If the party does not agree with the decision from the meeting, he may appeal to the city council for final determination. (Ord. 1652 § B, 4-20-2004)
ARTICLE XIV. SEVERABILITY
SECTION:
4-14.05: Severability
4-14.05: SEVERABILITY:
Should any article, section, subsection, sentence, clause or phrase of this chapter be held invalid or unconstitutional for any reasons, such decision shall not affect the remaining portions of this chapter. The city council hereby declares that it would have adopted this chapter and each article, section, subsection, sentence, clause or phrase, regardless of the fact that any one or more articles, sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. (Ord. 1652 § B, 4-20-2004)
ARTICLE XV. APPENDIX A, TRAFFIC PATTERN
SECTION:
4-15.05: Porterville Municipal Airport, Runway 30
4-15.10: Porterville Municipal Airport, Runway 12
4-15.05: PORTERVILLE MUNICIPAL AIRPORT. RUNWAY 30:
A. Enter pattern in level flight, abeam midpoint of runway, at pattern altitude. Light aircraft with pattern speed under one hundred twenty five (125) knots use inner pattern at altitude of one thousand feet (1,000') AGL (above ground level = 1,444 feet indicated altitude).
B. Maintain pattern altitude until abeam approach end of landing runway, on downwind leg.
C. Complete turn to final at least one-fourth (1/4) mile from end of runway.
D. Continue straight ahead until beyond departure end of runway.
E. If remaining in traffic pattern, commence turn to crosswind leg two thousand feet (2,000') beyond the departure end of the runway at the designated marker, at pattern altitude.
F. If departing traffic pattern, continue straight out, or exit with a forty five degree (45°) left turn beyond the departure end of the runway, after reaching pattern altitude.
(Ord. 1652 § B, 4-20-2004)
4-15.10: PORTERVILLE MUNICIPAL AIRPORT, RUNWAY 12:
A. Enter pattern in level flight, abeam midpoint of runway, at pattern altitude. Light aircraft with pattern speed under one hundred twenty five (125) knots, use inner pattern at altitude of one thousand feet (1,000') AGL (above ground level = 1,444 feet indicated altitude).
B. Maintain pattern altitude until abeam approach end of landing runway, on downwind leg.
C. Complete turn to final at least one-fourth (1/4) mile from end of runway.
D. Continue straight ahead until beyond departure end of runway.
E. If remaining in traffic pattern, commence turn to crosswind leg two thousand feet (2,000') beyond the departure end of the runway at the designated marker, at pattern altitude.
F. If departing traffic pattern, continue straight out, or exit with a forty five degree (45°) left turn beyond the departure end of the runway, after reaching pattern altitude.
(Ord. 1652 § B, 4-20-2004)
ARTICLE XVI. FORMS
SECTION:
4-16.05: Municipal Airport Forms
4-16.05: MUNICIPAL AIRPORT FORMS:
City Of Porterville
MUNICIPAL AIRPORT
General Information Form
Name/Company Name:
Address:
Phone Number:
Emergency Contact:
Phone Number:
Brief Description Of Airport Business:
Insurance Co.:
Description Of Aircraft:
Hangar Lease Lot Number:
PORTERVILLE MUNICIPAL AIRPORT
AIRCRAFT PARKING AND TIE-DOWN AGREEMENT
(MONTHLY BASIS)
NAME
ADDRESS
AIRCRAFT REGISTRATION NUMBER
OWNER OF AIRCRAFT IF OTHER THAN ABOVE
AIRCRAFT DESCRIPTION: COLOR NO. OF ENGINES
MANUFACTURER MODEL
YEAR GROSS WEIGHT
INSURANCE POLICY
The Undersigned:
1. Understands this agreement extends the right to park and/or tie-down one aircraft in a designated space at the Porterville Municipal Airport and conveys no other right or interest.
2. Agrees to pay monthly parking and tie-down fees as specified in this agreement.
3. Understands that the monthly fees are $ for single engine aircraft and $ for twin engine aircraft at the time of the signing of this agreement and that the City Council of the City of Porterville may, at any time, adjust the fees at their discretion.
4. Understands that he/she will be billed each month in advance for parking/tie-down fees and that all fees unpaid after one month of the billing date will be charged interest at a rate of one percent (1%) per month on any unpaid balance.
5. Agrees to comply with all codes, ordinances and rules of operation applicable to Porterville Municipal Airport.
6. Agrees to indemnify, defend and save harmless the City, its agents, officers, and employees, and each of them, from any and all losses, costs, expenses, claims, liabilities, actions, or damages, including liability for injuries to person or persons, or damage to property of third persons, arising out of or in any way connected with the above described aircraft.
7. Agrees, in the event the City has to resort to legal action to enforce payment under this agreement, to pay all court costs including reasonable attorney fees, of such action.
8. Agrees that the fees due under this agreement shall be due on the day of , and the first of each calendar month thereafter.
AIRCRAFT OWNER/AGENT:
SIGNATURE
DATE
APPROVED FOR PORTERVILLE MUNICIPAL AIRPORT:
SIGNATURE TITLE
DATE
NOTICE OF VIOLATION
CITY OF PORTERVILLE - MUNICIPAL AIRPORT
Name
Address
Phone ( )
VIOLATION
Your actions have been found to conflict with Article of the Rules and Regulations for the Porterville Municipal Airport.
You are hereby formally ordered to cease any and all actions conflicting with the established Rules and Regulations.
Airport users who feel they have a compelling, legitimate reason to dispute a violation notice or a notice to cease may follow the Appeals Procedure set forth in Article XIII of the Rules and Regulations for the Porterville Municipal Airport.
Noncompliance with an official NOTICE OF VIOLATION may result in termination of lease agreement or the loss of Airport privileges.
Signed Date
Designated City Officer Date
City of Porterville
REPORT OF AIRCRAFT ACCIDENT
1. DATE OF ACCIDENT TIME A.M. P.M.
(Month) (Date)
2. Location of Accident
3. Operator (Pilot)
(Name) (Telephone Number)
(Number and Street, Apartment No., etc.)
(City, State, Zip Code)
4. Owner (if different)
(Name) (Telephone Number)
(Number and Street, Apartment No., etc.)
(City, State, Zip Code)
5. Type of Aircraft
(Manufacturer) (Model) (Identification No.)
6. Total Number of Persons on Board Aircraft
7. (Name, Address, Extent of Injuries to Occupants and/or Persons on the ground. Use additional sheets if number exceeds space.)
Crew Passenger NonOccupantFatal Serious Minor None
8. Damage to Property (Other than that of Owner, Operator or Passenger, or in their care, custody or control).
Describe fully, and give best estimate of dollar cost. Use additional sheets if necessary.
9. Was a Report made to Any of the Following Agencies:
Federal Aviation Administration Yes No
National Transportation Safety Board Yes No
Law Enforcement Agency Yes No
If such a report was made, to whom and at what address:
10. Was there, at the time of the accident, an Aircraft Liability Policy? Yes No
or Bond? Yes No
or any other form of Liability Protections covering the aircraft operation? Yes No
or have you registered with the Department of Aeronautics as a Self-Insurer? Yes No
11. If answer to 10 was Yes, furnish the following data on Insurer or Bonding firm which issued your Policy or Bond to cover liability for damages or injury to others:
Complete name and address of Company
Policy Number Period of Coverage
(from) (to)
Policy issued to
(named individual or firm)
12. Report made by (print)
(Name)
(Number and Street)
(City, State, Zip Code)
(Telephone Number)
(Signature)
REMARKS or Additional Information:
Pilot Certificate Number
Ratings Total Flying Time
Weather/Visibility Conditions at time of accident:
Official Capacity, or relationship to the Operator or Owner
CITY OF PORTERVILLE
MUNICIPAL AIRPORT
After-Hours Tie-Down Fees
Name
Address
Phone Number ( )
Description of Aircraft
Manufacturer
Model/Year
No. of Engines
Aircraft Number
Overnight Tie-Down Fees:
$2/night (single engine)
$2.50/night (twin engine)
I agree to comply with all codes, ordinances and rules of operation applicable to Porterville Municipal Airport.
I agree not to hold the City and its employees liable for any losses, costs, expenses, claims, liabilities, actions, or damages in any way connected with the above described aircraft. (Ord. 1652 § B, 4-20-2004)
FAA
Airports
Airport Sponsor Assurances 3/2014 Page 1 of 20
ASSURANCES
Airport Sponsors
A. General.
1. These assurances shall be complied with in the performance of grant agreements for airport development, airport planning, and noise compatibility program grants for airport sponsors.
2. These assurances are required to be submitted as part of the project application by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used herein, the term "public agency sponsor" means a public agency with control of a public-use airport; the term "private sponsor" means a private owner of a public-use airport; and the term "sponsor" includes both public agency sponsors and private sponsors.
3. Upon acceptance of this grant offer by the sponsor, these assurances are incorporated in and become part of this grant agreement.
B. Duration and Applicability.
1. Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency Sponsor.
The terms, conditions and assurances of this grant agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired for an airport development or noise compatibility program project, or throughout the useful life of the project items installed within a facility under a noise compatibility program project, but in any event not to exceed twenty (20) years from the date of acceptance of a grant offer of Federal funds for the project. However, there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport. There shall be no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with federal funds. Furthermore, the duration of the Civil Rights assurance shall be specified in the assurances.
2. Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor.
The preceding paragraph 1 also applies to a private sponsor except that the useful life of project items installed within a facility or the useful life of the facilities developed or equipment acquired under an airport development or noise compatibility program project shall be no less than ten (10) years from the date of acceptance of Federal aid for the project.
Exhibit E - FAA Assurances
Airport Sponsor Assurances 3/2014 Page 2 of 20
3. Airport Planning Undertaken by a Sponsor.
Unless otherwise specified in this grant agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 25, 30, 32, 33, and 34 in Section C apply to planning projects. The terms, conditions, and assurances of this grant agreement shall remain in full force and effect during the life of the project; there shall be no limit on the duration of the assurances regarding Airport Revenue so long as the airport is used as an airport.
C. Sponsor Certification.
The sponsor hereby assures and certifies, with respect to this grant that:
1. General Federal Requirements.
It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance and use of Federal funds for this project including but not limited to the following:
Federal Legislation
a. Title 49, U.S.C., subtitle VII, as amended.
b. Davis-Bacon Act - 40 U.S.C. 276(a), et seq.1
c. Federal Fair Labor Standards Act - 29 U.S.C. 201, et seq. d. Hatch Act – 5 U.S.C. 1501, et seq.2
e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 U.S.C. 4601, et seq.1 2
f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C. 470(f).1 g. Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469 through 469c.1
h. Native Americans Grave Repatriation Act - 25 U.S.C. Section 3001, et seq. i. Clean Air Act, P.L. 90-148, as amended.
j. Coastal Zone Management Act, P.L. 93-205, as amended. k. Flood Disaster Protection Act of 1973 - Section 102(a) - 42 U.S.C. 4012a.1 l. Title 49, U.S.C., Section 303, (formerly known as Section 4(f)) m. Rehabilitation Act of 1973 - 29 U.S.C. 794.
n. 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); o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.), prohibits discrimination on the basis of disability). p. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et seq. q. American Indian Religious Freedom Act, P.L. 95-341, as amended. r. Architectural Barriers Act of 1968 -42 U.S.C. 4151, et seq.1 s. Power plant and Industrial Fuel Use Act of 1978 - Section 403- 2 U.S.C. 8373.1 t. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et seq.1 u. Copeland Anti-kickback Act - 18 U.S.C. 874.1
v. National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et seq.1 w. Wild and Scenic Rivers Act, P.L. 90-542, as amended. x. Single Audit Act of 1984 - 31 U.S.C. 7501, et seq.2
y. Drug-Free Workplace Act of 1988 - 41 U.S.C. 702 through 706.
Airport Sponsor Assurances 3/2014 Page 3 of 20
z. The Federal Funding Accountability and Transparency Act of 2006, as amended (Pub. L. 109-282, as amended by section 6202 of Pub. L. 110-252).
Executive Orders
a. Executive Order 11246 - Equal Employment Opportunity1 b. Executive Order 11990 - Protection of Wetlands
c. Executive Order 11998 – Flood Plain Management
d. Executive Order 12372 - Intergovernmental Review of Federal Programs e. Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New Building Construction1
f. Executive Order 12898 - Environmental Justice
Federal Regulations
a. 2 CFR Part 180 - OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement).
b. 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. [OMB Circular A-87 Cost Principles Applicable to Grants and Contracts with State and Local Governments, and OMB Circular A-133 - Audits of States, Local Governments, and Non-Profit Organizations].4, 5, 6
c. 2 CFR Part 1200 – Nonprocurement Suspension and Debarment d. 14 CFR Part 13 - Investigative and Enforcement Procedures14 CFR Part 16 - Rules of Practice For Federally Assisted Airport Enforcement Proceedings. e. 14 CFR Part 150 - Airport noise compatibility planning. f. 28 CFR Part 35- Discrimination on the Basis of Disability in State and Local Government Services.
g. 28 CFR § 50.3 - U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964.
h. 29 CFR Part 1 - Procedures for predetermination of wage rates.1 i. 29 CFR Part 3 - Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States.1 j. 29 CFR Part 5 - Labor standards provisions applicable to contracts covering federally financed and assisted construction (also labor standards provisions applicable to non-construction contracts subject to the Contract Work Hours and Safety Standards Act).1
k. 41 CFR Part 60 - Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements).1
l. 49 CFR Part 18 - Uniform administrative requirements for grants and cooperative agreements to state and local governments.
3 m. 49 CFR Part 20 - New restrictions on lobbying.
n. 49 CFR Part 21 – Nondiscrimination in federally-assisted programs of the Department of Transportation - effectuation of Title VI of the Civil Rights Act of 1964.
o. 49 CFR Part 23 - Participation by Disadvantage Business Enterprise in Airport Concessions.
Airport Sponsor Assurances 3/2014 Page 4 of 20
p. 49 CFR Part 24 – Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs.
1 2
q. 49 CFR Part 26 – Participation by Disadvantaged Business Enterprises in Department of Transportation Programs.
r. 49 CFR Part 27 – Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance.1 s. 49 CFR Part 28 – Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities conducted by the Department of Transportation. t. 49 CFR Part 30 - Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors. u. 49 CFR Part 32 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance)
v. 49 CFR Part 37 – Transportation Services for Individuals with Disabilities (ADA).
w. 49 CFR Part 41 - Seismic safety of Federal and federally assisted or regulated new building construction.
Specific Assurances
Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in this grant agreement.
Footnotes to Assurance C.1.
1 These laws do not apply to airport planning sponsors. 2 These laws do not apply to private sponsors.
3 49 CFR Part 18 and 2 CFR Part 200 contain requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation and circular shall also be applicable to private sponsors receiving Federal assistance under Title 49, United States Code.
4 On December 26, 2013 at 78 FR 78590, the Office of Management and Budget (OMB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200. 2 CFR Part 200 replaces and combines the former Uniform Administrative Requirements for Grants (OMB Circular A-102 and Circular A-110 or 2 CFR Part 215 or Circular) as well as the Cost Principles (Circulars A-21 or 2 CFR part 220; Circular A-87 or 2 CFR part 225; and A-122, 2 CFR part 230). Additionally it replaces Circular A-133 guidance on the Single Annual Audit. In accordance with 2 CFR section 200.110, the standards set forth in Part 200 which affect administration of Federal awards issued by Federal agencies become effective once implemented by Federal agencies or when any future amendment to this Part becomes final. Federal agencies, including the Department of Transportation, must implement the policies and procedures applicable to Federal awards by promulgating a regulation to be effective by December 26, 2014 unless different provisions are required by statute or approved by OMB.
Airport Sponsor Assurances 3/2014 Page 5 of 20
5 Cost principles established in 2 CFR part 200 subpart E must be used as guidelines for determining the eligibility of specific types of expenses. 6 Audit requirements established in 2 CFR part 200 subpart F are the guidelines for audits.
2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor:
It has legal authority to apply for this grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required.
b. Private Sponsor:
It has legal authority to apply for this grant and to finance and carry out the proposed project and comply with all terms, conditions, and assurances of this grant agreement.
It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required.
3. Sponsor Fund Availability.
It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. It has sufficient funds available to assure operation and maintenance of items funded under this grant agreement which it will own or control.
4. Good Title.
a. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, or will give assurance satisfactory to the Secretary that good title will be acquired. b. For noise compatibility program projects to be carried out on the property of the sponsor, it holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will give assurance to the Secretary that good title will be obtained.
5. Preserving Rights and Powers.
a. It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in this grant agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary.
Airport Sponsor Assurances 3/2014 Page 6 of 20
b. It will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property shown on Exhibit A to this application or, for a noise compatibility program project, that portion of the property upon which Federal funds have been expended, for the duration of the terms, conditions, and assurances in this grant agreement without approval by the Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of this grant agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this grant agreement.
c. For all noise compatibility program projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that government. Except as otherwise specified by the Secretary, that agreement shall obligate that government to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility program project. That agreement and changes thereto must be satisfactory to the Secretary. It will take steps to enforce this agreement against the local government if there is substantial non-compliance with the terms of the agreement.
d. For noise compatibility program projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. It will take steps to enforce this agreement against the property owner whenever there is substantial noncompliance with the terms of the agreement. e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public-use airport in accordance with these assurances for the duration of these assurances. f. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to insure that the airport will be operated and maintained in accordance Title 49, United States Code, the regulations and the terms, conditions and assurances in this grant agreement and shall insure that such arrangement also requires compliance therewith. g. Sponsors of commercial service airports will not permit or enter into any arrangement that results in permission for the owner or tenant of a property used as a residence, or zoned for residential use, to taxi an aircraft between that property and any location on airport. Sponsors of general aviation airports entering into any arrangement that results in permission for the owner of residential real property adjacent to or near the airport must comply with the requirements of Sec. 136 of Public Law 112-95 and the sponsor assurances.
Airport Sponsor Assurances 3/2014 Page 7 of 20
6. Consistency with Local Plans.
The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport.
7. Consideration of Local Interest.
It has given fair consideration to the interest of communities in or near where the project may be located.
8. Consultation with Users.
In making a decision to undertake any airport development project under Title 49, United States Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed.
9. Public Hearings.
In projects involving the location of an airport, an airport runway, or a major runway extension, it has afforded the opportunity for public hearings for the purpose of considering the economic, social, and environmental effects of the airport or runway location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary. Further, for such projects, it has on its management board either voting representation from the communities where the project is located or has advised the communities that they have the right to petition the Secretary concerning a proposed project.
10. Metropolitan Planning Organization.
In projects involving the location of an airport, an airport runway, or a major runway extension at a medium or large hub airport, the sponsor has made available to and has provided upon request to the metropolitan planning organization in the area in which the airport is located, if any, a copy of the proposed amendment to the airport layout plan to depict the project and a copy of any airport master plan in which the project is described or depicted.
11. Pavement Preventive Maintenance.
With respect to a project approved after January 1, 1995, for the replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with Federal financial assistance at the airport. It will provide such reports on pavement condition and pavement management programs as the Secretary determines may be useful.
12. Terminal Development Prerequisites.
For projects which include terminal development at a public use airport, as defined in Title 49, it has, on the date of submittal of the project grant application, all the safety equipment required for certification of such airport under section 44706 of Title 49, United States Code, and all the security equipment required by rule or regulation, and Airport Sponsor Assurances 3/2014 Page 8 of 20
has provided for access to the passenger enplaning and deplaning area of such airport to passengers enplaning and deplaning from aircraft other than air carrier aircraft.
13. Accounting System, Audit, and Record Keeping Requirements. a. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of this grant, the total cost of the project in connection with which this grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984.
b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which this grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made.
14. Minimum Wage Rates.
It shall include, in all contracts in excess of $2,000 for work on any projects funded under this grant agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work.
15. Veteran's Preference.
It shall include in all contracts for work on any project funded under this grant agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Vietnam era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns owned and controlled by disabled veterans as defined in Section 47112 of Title 49, United States Code. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates.
16. Conformity to Plans and Specifications.
It will execute the project subject to plans, specifications, and schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this grant agreement, and, upon approval of the Secretary, shall be incorporated into this grant agreement. Any modification to the approved plans, Airport Sponsor Assurances 3/2014 Page 9 of 20
specifications, and schedules shall also be subject to approval of the Secretary, and incorporated into this grant agreement.
17. Construction Inspection and Approval.
It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary.
18. Planning Projects.
In carrying out planning projects:
a. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities.
c. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States.
d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country.
e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. f. It will grant the Secretary the right to disapprove the sponsor's employment of specific consultants and their subcontractors to do all or any part of this project as well as the right to disapprove the proposed scope and cost of professional services.
g. It will grant the Secretary the right to disapprove the use of the sponsor's employees to do all or any part of the project.
h. It understands and agrees that the Secretary's approval of this project grant or the Secretary's approval of any planning material developed as part of this grant does not constitute or imply any assurance or commitment on the part of the Secretary to approve any pending or future application for a Federal airport grant.
19. Operation and Maintenance.
a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other than facilities owned or controlled by the United States, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable Federal, Airport Sponsor Assurances 3/2014 Page 10 of 20
state and local agencies for maintenance and operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non-aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for1) Operating the airport's aeronautical facilities whenever required; 2) Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and
3) Promptly notifying airmen of any condition affecting aeronautical use of the airport. Nothing contained herein shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood or other climatic conditions interfere with such operation and maintenance.
Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor.
b. It will suitably operate and maintain noise compatibility program items that it owns or controls upon which Federal funds have been expended.
20. Hazard Removal and Mitigation.
It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards.
21. Compatible Land Use.
It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, if the project is for noise compatibility program implementation, it will not cause or permit any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended.
22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport.
b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or Airport Sponsor Assurances 3/2014 Page 11 of 20
to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to1) furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and
2) charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers.
c. Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing the same or similar facilities.
d. Each air carrier using such airport shall have the right to service itself or to use any fixed-based operator that is authorized or permitted by the airport to serve any air carrier at such airport.
e. Each air carrier using such airport (whether as a tenant, non-tenant, or subtenant of another air carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable classifications such as tenants or non-tenants and signatory carriers and nonsignatory carriers. Classification or status as tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status.
f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees [including, but not limited to maintenance, repair, and fueling] that it may choose to perform. g. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions. h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport.
i. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public.
Airport Sponsor Assurances 3/2014 Page 12 of 20
23. Exclusive Rights.
It will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public. For purposes of this paragraph, the providing of the services at an airport by a single fixed-based operator shall not be construed as an exclusive right if both of the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than one fixed-based operator to provide such services, and
b. If allowing more than one fixed-based operator to provide such services would require the reduction of space leased pursuant to an existing agreement between such single fixed-based operator and such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any exclusive right to conduct an aeronautical activity now existing at such an airport before the grant of any assistance under Title 49, United States Code.
24. Fee and Rental Structure.
It will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport, taking into account such factors as the volume of traffic and economy of collection. No part of the Federal share of an airport development, airport planning or noise compatibility project for which a grant is made under Title 49, United States Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be included in the rate basis in establishing fees, rates, and charges for users of that airport.
25. Airport Revenues.
a. All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport. The following exceptions apply to this paragraph:
1) If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of the airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's financing, provide for the use of the revenues from any of the airport owner or Airport Sponsor Assurances 3/2014 Page 13 of 20
operator's facilities, including the airport, to support not only the airport but also the airport owner or operator's general debt obligations or other facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply. 2) If the Secretary approves the sale of a privately owned airport to a public sponsor and provides funding for any portion of the public sponsor’s acquisition of land, this limitation on the use of all revenues generated by the sale shall not apply to certain proceeds from the sale. This is conditioned on repayment to the Secretary by the private owner of an amount equal to the remaining unamortized portion (amortized over a 20-year period) of any airport improvement grant made to the private owner for any purpose other than land acquisition on or after October 1, 1996, plus an amount equal to the federal share of the current fair market value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996. 3) Certain revenue derived from or generated by mineral extraction, production, lease, or other means at a general aviation airport (as defined at Section 47102 of title 49 United States Code), if the FAA determines the airport sponsor meets the requirements set forth in Sec. 813 of Public Law 112-95. b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law, including any regulation promulgated by the Secretary or Administrator.
c. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the provisions of Section 47107 of Title 49, United States Code.
26. Reports and Inspections.
It will:
a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary; b. for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; c. for noise compatibility program projects, make records and documents relating to the project and continued compliance with the terms, conditions, and assurances of this grant agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; and
Airport Sponsor Assurances 3/2014 Page 14 of 20
d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail:
1) all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and
2) all services and property provided by the airport to other units of government and the amount of compensation received for provision of each such service and property.
27. Use by Government Aircraft.
It will make available all of the facilities of the airport developed with Federal financial assistance and all those usable for landing and takeoff of aircraft to the United States for use by Government aircraft in common with other aircraft at all times without charge, except, if the use by Government aircraft is substantial, charge may be made for a reasonable share, proportional to such use, for the cost of operating and maintaining the facilities used. Unless otherwise determined by the Secretary, or otherwise agreed to by the sponsor and the using agency, substantial use of an airport by Government aircraft will be considered to exist when operations of such aircraft are in excess of those which, in the opinion of the Secretary, would unduly interfere with use of the landing areas by other authorized aircraft, or during any calendar month that –
a. Five (5) or more Government aircraft are regularly based at the airport or on land adjacent thereto; or
b. The total number of movements (counting each landing as a movement) of Government aircraft is 300 or more, or the gross accumulative weight of Government aircraft using the airport (the total movement of Government aircraft multiplied by gross weights of such aircraft) is in excess of five million pounds.
28. Land for Federal Facilities.
It will furnish without cost to the Federal Government for use in connection with any air traffic control or air navigation activities, or weather-reporting and communication activities related to air traffic control, any areas of land or water, or estate therein, or rights in buildings of the sponsor as the Secretary considers necessary or desirable for construction, operation, and maintenance at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the Secretary.
29. Airport Layout Plan.
a. It will keep up to date at all times an airport layout plan of the airport showing 1) boundaries of the airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and proposed additions thereto;
2) the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, terminal buildings, hangars and Airport Sponsor Assurances 3/2014 Page 15 of 20
roads), including all proposed extensions and reductions of existing airport facilities;
3) the location of all existing and proposed nonaviation areas and of all existing improvements thereon; and
4) all proposed and existing access points used to taxi aircraft across the airport’s property boundary. Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the signature of a duly authorized representative of the Secretary on the face of the airport layout plan. The sponsor will not make or permit any changes or alterations in the airport or any of its facilities which are not in conformity with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport. b. If a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary (1) eliminate such adverse effect in a manner approved by the Secretary; or (2) bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of a relocation or replacement of an existing airport facility due to a change in the Secretary’s design standards beyond the control of the airport sponsor.
30. Civil Rights.
It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any activity conducted with, or benefiting from, funds received from this grant.
a. Using the definitions of activity, facility and program as found and defined in §§
21.23 (b) and 21.23 (e) of 49 CFR § 21, the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all nondiscrimination requirements imposed by, or pursuant to these assurances. b. Applicability
1) Programs and Activities. If the sponsor has received a grant (or other federal assistance) for any of the sponsor’s program or activities, these requirements extend to all of the sponsor’s programs and activities. 2) Facilities. Where it receives a grant or other federal financial assistance to construct, expand, renovate, remodel, alter or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith.
Airport Sponsor Assurances 3/2014 Page 16 of 20
3) Real Property. Where the sponsor receives a grant or other Federal financial assistance in the form of, or for the acquisition of real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property.
c. Duration.
The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods:
1) So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or
2) So long as the sponsor retains ownership or possession of the property. d. Required Solicitation Language. It will include the following notification in all solicitations for bids, Requests For Proposals for work, or material under this grant agreement and in all proposals for agreements, including airport concessions, regardless of funding source:
“The (Name of Sponsor), in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises and airport concession disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”
e. Required Contract Provisions.
1) It will insert the non-discrimination contract clauses requiring compliance with the acts and regulations relative to non-discrimination in Federallyassisted programs of the DOT, and incorporating the acts and regulations into the contracts by reference in every contract or agreement subject to the nondiscrimination in Federally-assisted programs of the DOT acts and regulations.
2) It will include a list of the pertinent non-discrimination authorities in every contract that is subject to the non-discrimination acts and regulations. 3) It will insert non-discrimination contract clauses as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a sponsor.
4) It will insert non-discrimination contract clauses prohibiting discrimination on the basis of race, color, national origin, creed, sex, age, or handicap as a Airport Sponsor Assurances 3/2014 Page 17 of 20
covenant running with the land, in any future deeds, leases, license, permits, or similar instruments entered into by the sponsor with other parties:
a) For the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b) For the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.
f. It will provide for such methods of administration for the program as are found by the Secretary to give reasonable guarantee that it, other recipients, sub-recipients, sub-grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the acts, the regulations, and this assurance.
g. It agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the acts, the regulations, and this assurance.
31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes, including land serving as a noise buffer, it will dispose of the land, when the land is no longer needed for such purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of such disposition which is proportionate to the United States' share of acquisition of such land will be, at the discretion of the Secretary, (1) reinvested in another project at the airport, or (2) transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order, (1) reinvestment in an approved noise compatibility project, (2) reinvestment in an approved project that is eligible for grant funding under Section 47117(e) of title 49 United States Code, (3) reinvestment in an approved airport development project that is eligible for grant funding under Sections 47114, 47115, or 47117 of title 49 United States Code, (4) transferred to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport, and (5) paid to the Secretary for deposit in the Airport and Airway Trust Fund. If land acquired under a grant for noise compatibility purposes is leased at fair market value and consistent with noise buffering purposes, the lease will not be considered a disposal of the land. Revenues derived from such a lease may be used for an approved airport development project that would otherwise be eligible for grant funding or any permitted use of airport revenue. b. For land purchased under a grant for airport development purposes (other than noise compatibility), it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the Secretary an amount equal to the United States' proportionate share of the fair market value of the land. That portion of the proceeds of such disposition which is proportionate to the United States' share of the cost of acquisition of such land will, (1) upon application to the Secretary, be reinvested or transferred to another Airport Sponsor Assurances 3/2014 Page 18 of 20
eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order: (1) reinvestment in an approved noise compatibility project, (2) reinvestment in an approved project that is eligible for grant funding under Section 47117(e) of title 49 United States Code, (3) reinvestment in an approved airport development project that is eligible for grant funding under Sections 47114, 47115, or 47117 of title 49 United States Code, (4) transferred to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport, and (5) paid to the Secretary for deposit in the Airport and Airway Trust Fund.
c. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be needed for aeronautical purposes (including runway protection zones) or serve as noise buffer land, and (2) the revenue from interim uses of such land contributes to the financial self-sufficiency of the airport. Further, land purchased with a grant received by an airport operator or owner before December 31, 1987, will be considered to be needed for airport purposes if the Secretary or Federal agency making such grant before December 31, 1987, was notified by the operator or owner of the uses of such land, did not object to such use, and the land continues to be used for that purpose, such use having commenced no later than December 15, 1989.
d. Disposition of such land under (a) (b) or (c) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport.
32. Engineering and Design Services.
It will award each contract, or sub-contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services with respect to the project in the same manner as a contract for architectural and engineering services is negotiated under Title IX of the Federal Property and Administrative Services Act of 1949 or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport.
33. Foreign Market Restrictions.
It will not allow funds provided under this grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction.
34. Policies, Standards, and Specifications.
It will carry out the project in accordance with policies, standards, and specifications approved by the Secretary including but not limited to the advisory circulars listed in the Current FAA Advisory Circulars for AIP projects, dated ___________ (the latest approved version as of this grant offer) and included in this grant, and in accordance _
Airport Sponsor Assurances 3/2014 Page 19 of 20
with applicable state policies, standards, and specifications approved by the Secretary.
35. Relocation and Real Property Acquisition.
a. It will be guided in acquiring real property, to the greatest extent practicable under State law, by the land acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse property owners for necessary expenses as specified in Subpart B.
b. It will provide a relocation assistance program offering the services described in Subpart C and fair and reasonable relocation payments and assistance to displaced persons as required in Subpart D and E of 49 CFR Part 24. c. It will make available within a reasonable period of time prior to displacement, comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24.
36. Access By Intercity Buses.
The airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of transportation to have access to the airport; however, it has no obligation to fund special facilities for intercity buses or for other modes of transportation.
37. Disadvantaged Business Enterprises.
The sponsor shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26, or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its DBE and ACDBE programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts, and/or concession contracts. The sponsor’s DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the sponsor of its failure to carry out its approved program, the Department may impose sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1936 (31 U.S.C. 3801).
38. Hangar Construction.
If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owner’s expense, the airport owner or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose.
Airport Sponsor Assurances 3/2014 Page 20 of 20
39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport (as defined in section 47102 of title 49, U.S.C.) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that1) Describes the requests;
2) Provides an explanation as to why the requests could not be accommodated; and
3) Provides a time frame within which, if any, the airport will be able to accommodate the requests.
b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accommodate the request(s) in the six month period prior to the applicable due date.
AIRPORT LEASING POLICY
Porterville Municipal Airport
ADOPTED FEBRUARY 18, 2025
City of Porterville
Airport Lease Policy
Contents
1. Introduction .......................................................................................................................................1
2. Definitions..........................................................................................................................................3
3. Exclusive Rights...............................................................................................................................5
4. Requests for Leases .......................................................................................................................5
5. Application Documents..................................................................................................................6
6. Action on Application .....................................................................................................................7
7. Standards for Leasing Airport Property.....................................................................................8
8. Written Agreement.........................................................................................................................16
9. FAA Required Lease Provisions................................................................................................16
10. Rentals, Rates, Fees, and Charges .......................................................................................16
11. Construction of Leasehold Improvements..........................................................................19
City of Porterville
Airport Lease Policy
1 City of Porterville Leasing Policy for the Porterville Municipal Airport Adopted February 18, 2025
1. Introduction
a. Purpose
Airport Operated for Benefit of the Public. Through its Leases, and by other means, the City will ensure that the Airport is operated for the use and benefit of the public and is made available to all types, kinds and classes of aeronautical activities.
As an Airport Sponsor and recipient of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grants, the City of Porterville (hereinafter, “City”) is obligated to operate the Porterville Municipal Airport (PTV) for the use and benefit of the public and to make it available to all types, kinds, and classes of aeronautical activities on fair and reasonable terms and conditions without unjust discrimination.
Further, the City leases property at the Airport for certain non-aeronautic uses to provide revenue support to the airport. Per 49 USC 47107(b) and 47133(a), revenues generated by a public airport are required to be expended for the capital or operating costs of – (A) the airport, (B) the local airport system, (C) other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property. Given these obligations, the City hereby establishes this policy to set forth a standardized system and process for leasing property at the Airport.
In furtherance of this objective, the City leases airport property based on the following principles:
• Promotion of aeronautic and aeronautic-compatible enterprise fund activities for the benefit of the Porterville community. • Preservation of the City’s investment in the Airport. • Facilitation of orderly management of the Airport.
• Ensuring consistent quality of facilities at the Airport.
City of Porterville
Airport Lease Policy
2 • Providing equitable and uniform treatment of all Lessees. • Ensuring compliance with applicable laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application and acceptance of Federal Funds.
• Enabling conformity with the FAA approved Airport Layout Plan and Exhibit ‘A’, Airport Property Map.
• Making the Airport available for public use on reasonable terms without unjust discrimination.
• Maintaining a fee and rental structure with the goal of financial selfsufficiency for the Airport.
Persons seeking to provide a Commercial Aeronautical Activity at the Airport shall also be obligated to adhere to the requirements set forth in the Airport Minimum Standards, Airport Rules & Regulations, and current FAA Guidelines and Regulations.
In accordance with FAA Leasing Guidelines, Grant Assurances and general FAA policy statements, ownership of all lease site development and improvements shall revert to the Airport at no cost to the Airport at the conclusion of the lease. Lease length shall be established in order to allow tenants to recuperate their initial investment, long term leases beyond the life of the asset will not be entertained.
At the conclusion of the lease term, a new lease agreement may be entered into with the site occupants in accordance with the then-existing Airport Leasing Policy and then-existing Airport Layout Plan. The premises are considered to be owned by the Airport and the lease terms will reflect that condition accordingly. The rental rates charged and the lease term allowed will be based on airport ownership of the premises.
City of Porterville
Airport Lease Policy
3 2. Definitions
For the purpose of this policy, the following definitions shall apply:
• Aeronautical Activities – Activities directly related to the operation, maintenance, and storage of aircraft, including flight training, aircraft maintenance, charter service, and Fixed Based Operator (FBO) services. • Airport – The Porterville Municipal Airport (PTV), including all associated land, facilities, and infrastructure.
• Airport Manager – The individual designated by the City to oversee Airport operations and enforce Airport policies.
• Airport Leasing Policy – This document as established and amended from time to time by the City, to govern the safe, orderly, and efficient leasing of Airport property.
• Airport Layout Plan (ALP) – The FAA approved and Airport adopted drawing, as may be amended from time to time, which reflects an agreement between the FAA and Airport depicting the physical layout of the Airport. The ALP identifies the location and configuration of current and proposed runways, taxiways, buildings, roadways, utilities, navaids, etc.
The ALP also includes the proposed allocation of Airport land and/or improvements to specific uses and/or development. The ALP reflects the existing and proposed allocation of areas of the Airport to specific operations and support functional usage.
• Airport Sponsor – The City of Porterville under the FAA guidelines and requirements to operate a public use airport facility.
• Applicant – A person submitting an application to the City to lease airport property.
• City – The City of Porterville, owner and operator of the Airport, acting by or through the City of Porterville City Council, the City Manager, the Transportation Manager, the Airport Manager, or any duly authorized employee, agent, or instrumentality of the City of Porterville. Discretion, opinions and approvals of “City” under this section refer to the responsibilities and authorities delegated to the City Council and designated City staff members as may be assigned these tasks through adopted policy. • City Council – The legislative body that governs the City of Porterville.
City of Porterville
Airport Lease Policy
4 • Commercial Aeronautical Activity – An Aeronautical Activity for commercial purposes.
• Commercial Aeronautical Operator – Any entity providing aeronautical services to the public, such as flight training, aircraft rental, or aircraft maintenance.
• FAA – Federal Aviation Administration.
• Fair Market Value (FMV) – The rental value of Airport land or facilities as determined by a qualified independent appraisal, market analysis, or competitive lease rates at comparable airports.
• Fixed Base Operator (FBO): A commercial business granted the right to operate on the Airport and provide services such as fueling, aircraft storage, maintenance, and flight instruction.
• General Aviation – All phases of aviation other than military aviation and scheduled or non-scheduled commercial air carrier operations. • Ground Lease: A long-term lease agreement for the use of Airport land on which the Lessee constructs improvements (e.g., hangars, commercial buildings).
• Lease – A contract between the City and any person wherein the City grants the use or occupancy of Airport property and certain leasehold interests for a specified period in exchange for a specified rent.
• Lessee: Any individual, entity, or business that enters into a lease agreement with the City for the use of Airport property. • Leasehold Improvements: Any structures or modifications made by the Lessee on leased Airport land, such as buildings, hangars, or paved surfaces.
• Non-Aeronautical Use: Any use of Airport land or facilities that is not directly related to aviation, subject to FAA approval.
• Rules and Regulations – The policies, procedures, and regulations, established and amended from time to time by the City Council, to govern the safe, orderly, and efficient use of the Airport.
City of Porterville
Airport Lease Policy
5 • Sublease – An agreement between a primary Lessee and a third party to lease a portion of the Lessee’s leased premises, subject to City approval. If approved, sublessees must enter a new lease agreement under current City terms.
• Term – The total period of time which the Lease may or might remain in effect. (For instance, a Lease for an initial period of 5 years, which may potentially be extended for an additional 5-year period, is a Lease for a term of 10 years).
• Unimproved Land – Airport land that has no existing buildings or significant infrastructure improvements.
3. Exclusive Rights
a) Federal law forbids the granting of an exclusive right to provide aeronautical services at an airport on which federal funds have been expended. An exclusive right is a power, privilege or other right excluding or debarring another from enjoying or exercising a like power, privilege or right. The City will not grant any such special privilege or monopoly in the use of public Airport facilities.
b) It is the policy of this City not to enter into or promote any understanding, commitment, or express agreement to exclude other reasonably qualified Lessees; the presence on the Airport of only one Lessee engaged in a particular aeronautical service(s) will not, in and of itself, indicate that an exclusive right has been granted. Accordingly, those who desire to enter into a Lease with the City to engage in an aeronautical activity should neither expect nor request the City to exclude others who desire to engage in the same or similar activities. The opportunity to engage in an aeronautical activity shall be made available to those meeting reasonable qualifications and standards relevant to such activity and as space may be available at the Airport for such an activity.
4. Requests for Leases
a) Written Application Required.
Any Person desiring to enter into a Lease with the City for permission to occupy Airport property shall make written application to the City for such permission.
City of Porterville
Airport Lease Policy
6 b) Applicant Must Demonstrate Qualifications.
If an Applicant is seeking to engage in a Commercial Aeronautical Activity, he/she shall also provide all application information and materials required.
Application materials shall consist of a fully executed Application Cover Sheet, all the information specified in this Leasing Policy, the Airport’s Minimum Standards, if applicable, and all documentation deemed necessary by the City for a full and complete analysis of the Applicant’s qualifications. The Cover Sheet shall include the benefit that will accrue to the aviation public, not-for-profit entities, and commercial activities, from the Applicant’s proposed use of Airport property.
c) Space Limited to Demonstrated Need.
A single aeronautical activity, although meeting all reasonable standards and qualifications, shall be limited to a lease of such space as is needed for that activity. When an Applicant seeks to lease property from the City, he/she must provide evidence of demonstrated need for the Airport property in question. The City will only agree to lease the amount of land justifiably required for the specific use. Additional land for unsubstantiated future expansions is not allowed.
5. Application Documents
Each application for Lease of Airport Property shall be in writing and in sufficient detail to discern the complete qualifications of the Applicant and shall include a Cover Sheet briefly describing the proposal, the offered lease rate, and other key summary information, accompanied by a written application including the details listed below:
a) The name, address, electronic mail address, and telephone number of the Applicant.
b) The amount, size, and location of the land and/or facilities desired to be leased.
c) Descriptions and cost estimates of any proposed capital improvements to be undertaken by the applicant, or proposed to be provided by another party. This specifically includes tenant improvements if the lease proposal is for an existing building.
d) The types and amounts of insurance coverage to be maintained for the proposed use Airport property.
City of Porterville
Airport Lease Policy
7 e) A current financial statement prepared or certified by an independent certified public accountant and certified by the Chief Financial Officer of the Applicant. The City shall consider financial statements in evaluating the Applicant’s financial ability to construct capital improvements, occupy Airport property, and enter into a Lease of Airport property. f) To the extent allowed by law (if any), proposed applications for Leases, and the financial terms thereof, shall initially be maintained as confidential, for discussion between staff and the Applicant, and for discussion among staff, the Applicant, and the City Council.
g) Evidence, in a form acceptable to the City, of the Applicant’s financial ability to complete construction of proposed capital improvement in one of the following forms:
i. A performance bond in the amount equal to the cost for constructing the proposed improvements.
ii. An irrevocable letter of credit guaranteeing funds to complete the project.
iii. An escrow agreement administered by a title and escrow company; or
iv. A trust administered by a commercial bank.
6. Action on Application
After an application has been completed and materials are submitted in accordance with Section 4, it will be reviewed by the City and a determination made regarding approval.
The City may deny any application if, in the City’s opinion, any one or more of the following:
a) The Applicant's proposed use of Airport property or construction of leasehold improvements will create a safety hazard on the Airport. b) The granting of the application will require the City to spend funds, supply labor or materials in connection with the proposed activity, or the activity is expected to result in a financial loss to the City.
City of Porterville
Airport Lease Policy
8 c) Inappropriate, inadequate, or insufficient space exists at the Airport to accommodate the proposed activity or business.
d) The development or construction on the Airport necessary to accommodate the proposed business does not conform to land uses specified on the FAAapproved ALP. e) The development or use of the area requested by the Applicant will result in congestion of aircraft or buildings or will result in unduly interfering with other Airport operations.
f) The Applicant does not meet the requirements of the Airport Leasing Policy. g) The Applicant has either intentionally or unintentionally misrepresented or omitted any pertinent information in the application or in supporting documents.
h) The Applicant has a record of violating the Rules and Regulations of the Airport or of any other airport, FAA regulations, or any other federal, State, or local statutes, laws, rules, or regulations.
i) The Applicant has defaulted in the performance of any lease or any other agreement with the City or other airport(s).
j) The Applicant does not, in the opinion of the City, exhibit adequate financial responsibility to undertake the project based upon financial information provided.
k) The Applicant cannot provide acceptable surety in the amount required by the City.
l) The proposed activity or development is not in the best interest of the Airport or the public.
7. Standards for Leasing Airport Property
a. Lease Classification.
The City will address each airport lease and/or proposed airport lease for the purpose of definition and relevance to airport use according to the following classifications:
City of Porterville
Airport Lease Policy
9 • Non-commercial Hangar – Primarily for private aircraft storage; The City will determine if smaller parcels or additional infrastructure provisions are necessary.
• Non-commercial Multi-Tenant – A proposed development of a number of private hangars under one project which affords multiple tenants the benefits of larger economy of scale to offset the burdens of project development costs.
• Commercial Aviation (FBO) – Any commercial service facility allowing single or multiple aviation service disciplines to be accommodated on one site.
• Non-aviation Commercial/Industrial – Any entity that provides benefit to the airport, the community, or the local economic base through services or employment provided, which remains compatible with the Airport existence. This category includes but is not limited to Hotels, Conference and Recreational uses.
• Public Facility – Government sponsored and publicly operated uses that provide benefits to the airport, aviation, and/or the local community are part of this category.
• Non-profit Entities – A number of uses qualify as non-profit organizations and valid services that benefit not only aviation, but also a variety of public causes and concerns. Rental agreements are therefore justified.
• Unimproved Land – The occasional need to enter into leases and use agreements for uses which utilize larger amounts of land but without specific definition or qualification. e.g., The farming contract maintains vast portions of airport property not otherwise utilized.
Occasional airport/aircraft operations require large areas for specific short-term purposes.
b. Requests for Additional Space.
If the need for additional space becomes apparent for or in connection with a new or expanded activity, or one not authorized by the Lessee’s existing Lease, the request for additional space may be treated as a new Lease request by the City. Otherwise, a simple amendment to the existing lease agreement may be appropriate.
City of Porterville
Airport Lease Policy
10 c. Applicability of FAA Policy on the Non-Aeronautical Use of Airport Hangars.
In addition to the specific requirements set forth in this policy, the City airport is subject to the FAA Policy on the Non-Aeronautical Use of Airport Hangars, 81 FR 38906, as may be further amended. Pursuant to this policy, some areas of the airport may be designated for non-aviation use, with explicit FAA approval, but aeronautical facilities of the airport must be dedicated to use for aviation purposes. FAA policy generally requires tenants utilizing hangars for nonaeronautical purposes to pay a selfsustaining, fair market commercial (nonaeronautical) rental rate. FAA approval is also required to permit interim non-aeronautical use of hangars.
While the City is able to lease hangars and other airport property designated for aeronautical use when there is no current demand for the aeronautical use of a hangar or property, the FAA policy additionally requires that the City either 1) lease the hangar for a period of 3 to 5 years and include a clause allowing the City to recover the hangar for aeronautical purposes with 30 days notice; 2) request preapproval of a month-to month leasing plan if it wishes to allow the leasing of such hangars for interim nonaeronautical purposes; or 3) acquire advance written approval from the FAA on a case-by-case basis.
d. Lease Term.
The term is categorized according to the following considerations:
i. Long-term development of unimproved land.
ii. Occupancy of facilities owned by the Airport.
iii. The designation of the facility or proposed property on the ALP. iv. The Lessee’s proposed use of the property (See Section 7.c. above). v. The Lessee’s proposed capital investment in facilities and peripheral benefits to the airport.
While subject to specific negotiations between the City and each Lessee, as well as the additional restrictions set forth in this policy, the standard lease terms would be as follows:
i. Initial lease term is up to 5 years, with four (4) successive 5-year renewal options (totaling up to 25 years).
City of Porterville
Airport Lease Policy
11 ii. Renewal is contingent upon meeting inspection, compliance, and maintenance conditions, but the City may choose not to renew for airport needs or non-compliance.
In responding to a request to exercise an Option to Extend, the City will consider whether the Lessee is or has been in default of any terms and conditions of its Lease as well as the structural integrity, safety, and appearance of the leasehold improvements. Upon receipt of the request, the City will inspect the leasehold improvements for condition, appearance and viability for continued occupancy. The actual lease agreement shall be reviewed for compliance with its terms and conditions.
d. Lease Expiration.
In order to ensure compliance with this Policy and FAA Guidelines, it is not feasible to simply extend the term of existing leases, and thus, no time extensions will be allowed other than as explicitly set forth within the specific lease terms. Notwithstanding the foregoing, it is not the intent of the City to arbitrarily require the wholesale removal of existing tenants from their lease sites, so long as the occupancy remains viable and the basic provisions of this Policy and FAA Guidelines can be met.
I. As current leases reach a time where extension of term is essential to accommodate additional operations or development plans, the provisions of this policy may be implemented. The occupancies may be allowed to remain, but only under a new lease agreement, drafted and executed under the policies and standards currently outlined in this document and as may be amended in the future. As policies change, rental rates and escalations are adjusted, and new legal provisions evolve, new lease agreements will contain these necessary modifications. The provisions of Section E (Reversion) below will apply.
II. If a lease extension on an existing occupancy is requested, the terms for the new lease will remain relatively unchanged for that duration.
Although the Lessee will be a new entity, no additional investment in the property is anticipated. No change in occupancy is intended. The ownership of site and building improvements as outlined in the lease will apply. With no Capital investment, the new term may be 5 years, so long as the lease remains in full compliance and the age and current condition of the leased premises and its improvements remain viable and useable. If significant investment and/or new City of Porterville
Airport Lease Policy
12 development is requested or anticipated, then terms under the new lease would be extended commensurate with the amount of investment considered.
III. At the conclusion of the new lease, ownership of all site and building improvements revert to the Airport. Any subsequent occupancies are authorized under new lease agreements and shall be executed according to the adopted standard for new leases of City property. In accordance with FAA orders and guidelines, rental rates for leases on non-aeronautical sites will be based on the Fair Market Value as established for the premises. Rental rates for lease on the aeronautical sites will be based on fair and reasonable value as established for the site.
e. Reversion.
At the termination or conclusion of any lease agreement, the ownership of all site and building improvements shall revert to the Airport, except under the following conditions:
I. The occupancy is allowed to remain under the provisions of a new, short-term lease.
II. The preceding lease agreement specifically identifies the owner and states that he retains ownership and the right to remove the hangar from the airport.
III. The Airport, upon thorough inspection of the building, determines that it is not suitable or viable to remain as an operable and maintainable building. In which case the Tenant is required under the terms of the outgoing lease to remove the building at Tenant’s own cost and responsibility.
If the building improvements are allowed to remain, no further lease extensions are granted, and a new lease agreement is not entered into, the Lessee shall agree that all said improvements shall, become the property of the City. Under no circumstances shall the Tenant be entitled to any compensation for the value of its business, franchise, or improvements. f. Leases for Private Aeronautical Uses.
The City is required to operate the Airport for the maximum use and benefit of the public, and must retain the ability to make reasonable provision for City of Porterville
Airport Lease Policy
13 essential support services for those who use the Airport; nevertheless, some private aeronautical uses may be beneficial to the City; for instance, a private flying club might be a desirable and compatible use. Proposed Leases for private aeronautical uses will be evaluated on a case-by-case basis, taking into account long-term plans for the development of the Airport, the benefits which may be derived from the proposed Lease, the potential costs of the proposed Lease to the City, the availability of suitable space, the potential for conflict or interference with the public uses of the Airport, and any other factors the City deems relevant. g. Adherence to Airport Layout Plan (ALP) Required.
The ALP depicts the entire property of the Airport and identifies existing facilities and plans for future development. The ALP reflects the existing and proposed allocation of areas of the Airport to specific operations and land uses. No use, occupancy, construction, modification or improvement that is inconsistent with the Airport’s FAA-approved ALP shall be viewed as desirable by the City. The conversion of any area of the Airport to a substantially different use than that shown in the approved ALP could adversely affect the safety, utility or efficiency of the Airport. Only upon a determination by the City that a particular construction, modification or improvement would serve the needs of the Airport public for facilities or services, and that a change in circumstances is evident such that the need for space for such facilities or services was not anticipated at the time the most recent ALP was submitted to the FAA for approval, will the City consider making application to the FAA for approval of a revision of the ALP pursuant to the request of an Applicant or Lessee. Nothing contained in this policy shall require the City to make such application. h. Development of Vacant Airport Property.
Any application for permission to develop vacant airport properties shall include, in addition to all other required materials, a site plan depicting the nature and location of the proposed development. Before actual development, the site plan must be approved by the City. i. Liens or Encumbrances to Airport Property.
The tenant is given the right by the City to mortgage its interest in the Lease, under one or more leasehold Mortgage(s) and assign its interest in this Lease, as collateral security for such Mortgage(s) to secure any bona fide loan upon the condition that all rights acquired under such leasehold City of Porterville
Airport Lease Policy
14 Mortgage(s) shall be subject to each and all of the covenants, conditions and restrictions set forth in the Lease.
j. Financing Airport Development.
The City is under no obligation to provide financing, or to make any improvements to Airport property to facilitate leasehold improvements proposed by an existing or prospective Lessee. If such a Lessee cannot demonstrate the financial means to implement and pay for such development that may be an indication that the proposed development would not be in the best interests of the City or the public using the Airport.
Nevertheless, once an Applicant or Lessee has demonstrated the requisite financial responsibility, the City may choose to pursue any federal, state or City funds to contribute to the leasehold improvements, if in doing so there would be no diversion of funds away from capital improvements or the Airport capital budget program planned by the City.
k. General Rights and Privileges Granted.
Airport Leases are designed to accomplish one or more of three basic rights or privileges:
• The right for a Person to use the landing area and other public Airport facilities in common with others so authorized;
• The right to occupy Airport Property, and to use exclusively, certain designated premises; and/or
• The commercial privilege or the franchise right to offer goods and services to the public who use the Airport.
The City will not enter any Lease without receipt of adequate consideration for the rights granted therein.
l. Control Over Operations.
Any Lease granting the right to serve the public on the premises of the Airport shall be subject to terms and conditions reserving to the City sufficient control over operations to ensure that the Lessee will treat patrons fairly. The Lessee must agree to make available its services and facilities on fair and reasonable terms, and without unjust discrimination. m. Control over Aeronautical Activity and Development.
City of Porterville
Airport Lease Policy
15 The City will enter into no Lease that would require it to divest itself of the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, or the right to prevent any Lessee from erecting, or permitting to be erected, any building or other structures that might limit the usefulness of the Airport or constitute a hazard to aircraft. The City will enter into no Lease that would require it to divest itself of, or limit its right to develop or improve the Airport as it sees fit, regardless of the desires or views of any Lessee and without interference or hindrance from such a party.
n. Airport Minimum Standards.
The Airport Minimum Standards set forth the qualifications which must be met by a Lessee conducting certain aeronautical activities at the Airport.
They establish a basis for practical negotiations between the City and potential Lessees offering such activities; however, prospective Lessees should be aware that the City, if presented with a choice between multiple potential Lessees for a single space or facility, will give preference to Lessees who can offer the City and the public the highest standard of quality and service which may well exceed the Airport Minimum Standards for a proposed activity. Existing and prospective Lessees shall understand that the City may increase its Airport Minimum Standards from time to time, in order to ensure a higher quality of service to the public. Only in the rare circumstance, where the aviation community at the Airport has encountered difficulty in attracting a competent service entity, shall the City consider waiving an Airport Minimum Standard to allow a period of initial development. In all other circumstances, it is the policy of the City not to enter into Leases with Lessees who cannot meet the applicable Airport Minimum Standards.
o. Waivers of Immunity.
The City will enter into no Leases that require it to waive any sovereign, governmental or other immunity to which it may be entitled, or that would require it to submit to the laws of any state other than those of the State of California.
p. Indemnification.
Every Lessee desiring to Lease Airport property shall agree to indemnify and hold the City, its officers, officials, agents, representatives and employees from and against any and all injuries, damage or harm, or any City of Porterville
Airport Lease Policy
16 nature whatsoever, which may result from its use or occupancy of Airport property.
8. Written Agreement
All Persons, prior to the commencement of construction of leasehold improvements or operation of an Aeronautical Activity as defined herein, shall enter into a Lease with the City setting forth the terms and conditions by which the Person shall occupy and use Airport property. Leases entered into by the City are designed to protect the public interest and may contain more restrictive clauses than private sector leases, are to be in a form approved by the City’s legal counsel and shall, at a minimum; conform to local/regional standards of tenant responsibility and liability.
Each Lease shall include all provisions required by law and obligations placed upon the City by all federal and State agencies including, but not limited to, compliance with all federal, state and local laws and regulations pertaining to the use of the leased premises. Other Lease provisions contain standard language, developed through continuous review and revision of the document for conformance to FAA regulations, real estate law, changing economic conditions and other risks associated with land ownership. A sample of that document is available for review.
9. FAA Required Lease Provisions
In addition to the minimum terms and conditions listed in Section 9, each Lease shall contain provisions requiring the Lessee to furnish services on a reasonable basis to all users thereof, and charge reasonable and not unjustly discriminatory, prices for each unit or service, provided that the lessee may make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers.
10.Rentals, Rates, Fees, and Charges
a. Financially Self-Sufficient.
The City has an obligation to make the Airport as self- sufficient as possible under the circumstances existing at the Airport at any given point in time.
Toward this end, the City, through its Leases, and by other means available to it, shall endeavor to recover the cost of providing its facilities, through rentals, fees or other charges. All Leases shall provide for adequate consideration to be received by the City in compensation for the rights and privileges therein granted. It shall be the policy of the City to seek Lease City of Porterville
Airport Lease Policy
17 terms and conditions that, while fair and nondiscriminatory, provide the most advantageous returns to the City.
b. No Unjustifiably Discriminatory Rates.
Each Lessee shall be subject to rates, fees, rentals and other charges (e.g., fuel flowage fees, hangar rentals, percentages of gross volume of business, etc.) as may be currently applicable to, or being received from others making the same or similar uses of the Airport, utilizing the same or similar facilities. Nevertheless, in respect to a contractual commitment from any Lessee, the City may charge different rates to similar users of the Airport if such rates are nondiscriminatory in purpose. Differences in values of properties involved, and the extent of use made of common use facilities may be factors to be considered. Seldom will each Airport user have properties of the same value nor will their use and impact upon common facilities be the same. If one Lessee is in what is considered a prime location, and another is in a less advantageous area, there could logically be a differential in the fees and charges, to reflect this advantage of location.
This factor might also influence the rental value of the property. If one Lessee rents office and/or hangar space and another builds its own facilities, this would provide justification for different rental and fee structures; these two Lessees would not be considered essentially similar as to rates and charges even though they offer the same services to the public.
c. Rental Rate.
The City pursues its objectives towards financial self-sufficiency through establishing fair and equitable rental rates to the greatest extent possible.
Competition may determine applicable rates and charges. In situations where leases are awarded as the result of competition, said Leases shall be subject to the financial terms and conditions proposed therein. Leases obtained through this process may offer returns that are higher than those being received from existing leases at a given point in time.
The alternative in a rental process is to define a rental rate based on the current market value of the subject property and then negotiating within an adopted range of pricing, based on the relative merits and local benefits identified for the particular lease agreement.
d. Periodic Adjustment of Rates.
City of Porterville
Airport Lease Policy
18 Providing for adjustments to rental rates and Airport user fees facilitates parity of rates and charges between new and long-standing Lessees and enables the Airport to remain as self-sustaining as possible under the circumstances existing at any given point in time.
Each lease shall be adjusted annually in accordance with the City’s adopted escalation policy. On the first anniversary of the lease’s commencement date, and each anniversary thereafter, the Base Rent shall be increased by the current City Adjustment Factor. This will determine the new “Base Rent” for the new year. The City "Adjustment Factor" shall be a percentage calculated as follows: Beginning January 1, 2025, and every year thereafter, the annual rent increase shall be determined by calculating the annual average of the San Francisco and Los Angeles California Consumer Price Indexes for all urban consumers as reported by the State of California, Department of Industrial Relations ("CPI"), as published for October of the prior year.
All leases with a term of five years or more shall contain provisions subjecting the rental rates to a periodic adjustment of rent based on a determination of Fair Market Value of comparable properties within the airport area, prior to and as a condition to any specified extension (Renewal). The periodic adjustment shall not increase the rental rate more than 8% on an annual basis or 20% over five years. Periodic adjustments will be based on current FAA guidance for evaluating land value at airports. e. “Pioneer” Periods Disfavored.
In the case of a new general aviation Lessee, offering services not previously available to the public at this Airport, the City may choose to offer reduced rental rates or other inducements to obtain a Lessee, recognizing that it may well be a non- profit venture during its pioneering period. In such circumstances, the “incentive rate” shall be offered only during a specific “pioneer” period, and shall be defined to end on a specified date. Future Lessees coming on the Airport following the pioneer period will be expected to pay the comparable standard rates and charges based on then-current values, rates and charges, and the City shall not be obligated to offer subsequent Lessees a pioneer period. Nor shall it generally be appropriate to offer an established Lessee the benefit of an additional period of reduced rates or other financial inducements, beyond the Lessee’s initial pioneer period.
f. Diligent Bookkeeping Required.
City of Porterville
Airport Lease Policy
19 Income from a Lessee’s Airport operations must be fully accounted for, and adequate records must be kept to evidence amounts due to the City for the various rentals, fees and charges applicable to the Lessee’s operations at the Airport. The City shall be entitled to have access to such records upon request.
11.Construction of Leasehold Improvements
Through its leasing activities, the City seeks to promote consistent, attractive, and compatible high quality development and facilities at the Airport. In addition, it desires to encourage private sector investment in Airport facilities, develop and maintain aesthetic excellence, and high standards of environmental protection.
Finally, it desires to create standards of development that maintain the character of the Airport and ensure all construction meets and exceeds all applicable safety standards and requirements.
Each Lease issued by the City shall include the specific development requirements for the construction of leasehold improvements on the Airport; however, following are general provisions and policies applicable to each Airport Lease:
A. No leasehold improvements shall be designed, planned, constructed, reconstructed, or remodeled without the prior written approval of the City.