1. The State Water Board and the Recipient mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement, including the following Exhibits, which are attached hereto or are incorporated by reference:
• Exhibit A – SCOPE OF WORK AND SCHEDULE
• Exhibit B – SPECIFIC FUNDING PROVISIONS
• Exhibit C – GENERAL TERMS AND CONDITIONS 2019-NOV
• Exhibit D – SPECIAL CONDITIONS
2. The following documents are also incorporated by reference, as well as any documents incorporated by reference in Exhibit D:
• None.
3. Party Contacts during the term of this Agreement are:
State Water Board City of Victorville
Section: Division of Financial
Assistance
Name: Lucia Tropeano, Project
Manager
Name: Keith C. Metzler,
City Manager
Address: 1001 I Street, 17th Floor Address: 14343 Civic Drive City,
State Zip:
Sacramento, CA 95814 City, State
Zip:
Victorville, CA 92392
Phone: (916) 327-9025 Phone: (760) 955-4823
Fax: (916) 341-5806 Fax: (760) 269-0082
Email: lucia.tropeano
@waterboards.ca.gov
Email: [email protected]
Each party may change its contact upon written notice to the other party. While Party Contacts are contacts for day-to-day communications regarding Project work, the Recipient must provide official communications and notices to the Deputy Director with a copy to the Project Manager.
4. The applicable regulatory agency and the caseworker assigned to this Project are:
City of Victorville
Agreement No.: D2410048
Project No. S0048
Lahontan Regional Water Quality Control Board
Section: R6 Victorville
Name: Amanda Lopez, Caseworker
Address: 15095 Amargosa Road, Building 2,
Suite 210
City, State
Zip:
Victorville, CA 92394
Phone: (760) 241-7373
Fax: N/A
Email: [email protected]
Recipient must provide written notification to the Project Manager of any change in the applicable regulatory agency or the caseworker assigned to the Project.
5. Conditions precedent to this Agreement are set forth as follows:
• None.
6. The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement, which shall be at least until the Records Retention End Date:
(a) The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents. (b) The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.
(c) None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, and professional liability. (d) The Recipient is in compliance with all State Water Board funding agreements to which it is a party.
7. This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document. The parties City of Victorville
Agreement No.: D2410048
Project No. S0048
may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.
IN WITNESS WHEREOF, this Agreement
has been executed by the parties hereto.
CITY OF VICTORVILLE:
By:
____________________________________
Name: Keith C. Metzler
Title: City Manager
Date: ______________________________
STATE WATER RESOURCES CONTROL
BOARD:
By:
____________________________________
Name: Joe Karkoski
Title: Deputy Director
Division of Financial Assistance
Date: _______________________________
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.1 PROJECT PURPOSE AND DESCRIPTION
The Project is for the benefit of the Recipient. The funding under this Agreement is for the purpose of performing the following work at 15595 8th Street, Victorville, California 92392: site investigation, remedial action, groundwater monitoring, soil vapor and indoor air monitoring and sampling, and potential for site closure.
A.2 WORK TO BE PERFORMED BY RECIPIENT
Note: All field activities shall incorporate the following requirements, as applicable. • Obtain access agreements, permits, utility clearances, traffic control, and Health and Safety Plan;
• Comply with the applicable regulatory agency public noticing requirements; • Notify the applicable regulatory agency staff at least ten (10) working days before commencement of field activities;
• Mobilize and demobilize equipment, supplies, materials, and personnel; • Analyze collected environmental, waste characterization, and quality assurance/quality control samples using a California-certified laboratory; • Manage and dispose of investigation and/or remediation derived waste; • Survey new permanent sampling points using a California-licensed surveyor; and • Comply with California Code of Regulations, title 23, division 3, chapter 30:
Electronic Submittal of Information.
1. PROJECT MANAGEMENT
1.1 Provide technical and administrative services as needed for Project completion; plan, organize, direct, control, and report on the Project to complete the agreed- to scope on schedule and within the assigned budget in accordance with approved procedures, applicable statutes, and regulations.
1.2 Prepare correspondence, attend teleconferences, and participate in Joint Execution Team (JET) meetings through the work completion date.
2. SITE INVESTIGATION
2.1 Site Investigation Work Plan
2.1.1 Prepare and upload a Site Investigation Work Plan (SI Work Plan) to GeoTracker in accordance with the regulatory requirements. The SI Work Plan must include detailed plans to conduct additional step-out groundwater monitoring well installations and a Health and Safety Plan City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
(HSP). The SI Work Plan also must include (as applicable) a review of files maintained at relevant regulatory agencies (e.g., environmental health department, building department, and fire department), including but not limited to, hazardous materials business plans and chemical inventories, site and building inspection reports, underground storage tanks, historical photographs, Sanborn Fire Insurance Maps, one hundred (100)-year topographic maps, current and historical utility maps, supply well maps, historical sensitive receptor surveys, and historical geophysical surveys.
2.1.1.1 Obtain the Regional Water Board concurrence of the SI Work Plan.
2.2 Well Installation
2.2.1 Install groundwater monitoring wells in accordance with the approved SI Work Plan. Two (2) groundwater monitoring well is anticipated; if this number needs to be adjusted based on the data collected in Task 2, this will be done by consensus of the JET.
2.2.2 Develop newly installed groundwater wells at least forty-eight (48) hours after construction is complete.
2.2.3 Redevelop existing groundwater monitoring wells, as necessary.
2.2.4 Collect groundwater samples from newly installed and existing wells for volatile organic compound analysis (groundwater samples at least seventy-two (72) hours after well development and include samples for bench-scale analysis).
2.3 Reporting
2.3.1 Prepare and upload a Well Installation Report and associated electronic data submittals to GeoTracker in accordance with the regulatory requirements. The Well Installation Report must include a summary of site investigation activities and update the conceptual site model (CSM) with appropriately scaled geologic cross sections.
2.3.1.1 Obtain Regional Water Board concurrence of the Well Installation Report.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
3. REMEDIAL ACTION
3.1 Remedial Action Plan Update
3.1.1 Prepare and upload an update to the existing Remedial Action Plan (RAP) and associated electronic data deliverables to GeoTracker. The RAP update will include a draft Operation and Maintenance (O&M) Plan, and a draft Remedial Design (plans and specifications) as applicable for cleanup of chlorinated solvents in soil, soil vapor, and groundwater.
3.2 Soil Vapor Extraction System O&M
3.2.1 Conduct soil vapor extraction (SVE) activities with operation, maintenance, and monitoring in accordance with the issuance of the Air Quality Management District air discharge permit and the approved RAP.
3.2.2 Prepare and upload quarterly SVE Progress Reports and associated electronic data submittals to GeoTracker in accordance with the approved RAP through the Work Completion Date. The first SVE Progress Report will include the SVE Installation and Startup Summary, photographs of the remediation system, and the final O&M Plan. Two (2) reports are anticipated; if this number needs to be adjusted based on SVE performance, or system optimization, that will be done by consensus of the JET. SVE Progress Reports and Groundwater Monitoring Reports should be combined when able.
3.2.2.1 Obtain Regional Water Board concurrence of each SVE Progress Reports.
3.3 In-situ Chemical Injections
3.3.1 Conduct (as applicable) in-situ reagent injection activities and associated monitoring in accordance with the approved RAP and Remedial Design.
This subtask includes construction of in-situ remediation injection wells/points and groundwater monitoring wells, and baseline and monitoring in accordance with the Waste Discharge Requirements (WDR) permit requirements.
3.3.2 Prepare and upload a Remediation Injection Summary Report and associated electronic data submittals to GeoTracker in accordance with the approved RAP. The report will include a summary of injection system installation activities and the final in-situ injection Sampling and Analysis Plan. One (1) report is anticipated; if this number needs to be adjusted based on DPE performance, that will be done by consensus of the JET.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
3.3.2.1 Obtain Regional Water Board concurrence of each Groundwater Remediation Monitoring Report.
3.4 Remedial Action Completion
3.4.1 Prepare and upload a Remedial Action Completion Report (RACR) and associated electronic submittals to GeoTracker.
3.4.1.1 Obtain Regional Water Board concurrence of the RACR.
4. MONITORING
4.1 Soil Vapor Well Sampling
4.1.1 Prepare and upload a Soil Vapor Well Monitoring and associated electronic data submittals to GeoTracker in accordance with the Advisory:
Active Soil Gas Investigations (DTSC, July 2015) and the approved RAP.
One (1) monitoring and sampling event are anticipated; if this number needs to be adjusted based on monitoring results, that will be done by consensus of the JET.
4.1.1.1 Obtain Regional Water Board concurrence of the Soil Vapor Monitoring Event
4.2 Groundwater Monitoring
4.2.1 Prepare and upload quarterly Groundwater Monitoring and associated electronic data submittals to GeoTracker in accordance with the approved RAP and WDR permit requirements through the Work Completion Date. Approximately four (4) monitoring and sampling events are anticipated; if this number needs to be adjusted based on monitoring results, that will be done by consensus of the JET.
4.2.1.1 Obtain Regional Water Board concurrence of the Groundwater Monitoring events.
4.3 Indoor Air Sampling
4.3.1 Prepare and upload semi-annual Indoor Air (IA) Monitoring and associated electronic data submittals to GeoTracker in accordance with the Supplemental Guidance and the approved RAP. Two (2) monitoring and sampling events are anticipated; if this number needs to be adjusted based on monitoring results, that will be done by consensus of the JET.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
4.3.1.1 Obtain Regional Water Board concurrence of the IA monitoring events.
4.4 Reporting
4.4.1 Prepare and upload quarterly Monitoring Reports and associated electronic data submittals to GeoTracker through the Work Completion Date. Each report shall include iso-concentration maps for each chemical of concern in each media monitored and sampled, cumulative data tables, evaluations of hydraulic gradient, gradient maps, a summary of analytical results, trend plots, updates to the CSM, interpretations, recommendations, and conclusions. Approximately seven (7) monitoring reports are anticipated; if this number needs to be adjusted based on monitoring results, this will be done by consensus of the JET. Monitoring Reports should be combined when able.
4.4.1.1 Obtain Regional Water Board concurrence of each monitoring report.
5. SITE CLOSURE
5.1 Remedial System and Well Decommissioning
5.1.1 Prepare and upload a Request for Site Closure Letter and associated electronic submittals to GeoTracker.
5.1.1.1 Obtain Regional Water Board concurrence of the Request for Site Closure Letter.
5.1.2 Prepare and upload a Well Destruction and Site Closure Work Plan to GeoTracker. The work plan shall include the destruction of all permanent sampling point associated with the site, and decommissioning of the SVE system.
5.1.2.1 Obtain Regional Water Board concurrence of the Well Destruction and Site Closure Work Plan.
5.1.3 Destroy selected extraction and/or groundwater/soil vapor monitoring wells in accordance with the approved Well Destruction and Site Closure Work Plan.
5.1.4 Demobilize the system surface equipment and restore the site to pre- existing conditions in accordance with the approved Well Destruction and City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
Site Closure Work Plan documents including re-landscaping, floor insulation removal, local utility equipment removal, and re-paving of parking area.
5.1.5 Prepare and upload Well Destruction and Site Closure Report and associated electronic submittals to GeoTracker that includes documented waste removal.
5.1.5.1 Obtain Regional Water Board concurrence of the Well Destruction and Site Closure Report.
A.3 SCHEDULE
Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments may require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to the Work Completion Date. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final Reimbursement Request prior to the Final Reimbursement Request Date set forth on the Cover Page.
ITEM DESCRIPTION OF SUBMITTAL CRITICAL
DUE DATE
ESTIMATED
DUE DATE
COMPLETED
DATE
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.2 WORK TO BE PERFORMED
BY RECIPIENT
2. SITE INVESTIGATION
2.1 Upload Site Investigation Work
Plan to GeoTracker
June 2025
2.3.1 Upload Groundwater Monitoring
Well Installation Report and
associated electronic data
submittals to GeoTracker
September
2025
3. REMEDIAL ACTION
3.1 Upload Remedial Action Plan
and associated electronic data
submittals to GeoTracker
September
2025
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
ITEM DESCRIPTION OF SUBMITTAL CRITICAL
DUE DATE
ESTIMATED
DUE DATE
COMPLETED
DATE
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
3.2.2 Upload two (2) Soil Vapor
Extraction Progress Reports and
associated electronic data
submittals to GeoTracker
Quarterly,
Begin
January
2025 and
through the
Work
Completion
Date
3.3.2 Upload Remediation Injection
Summary Report and
associated electronic data
submittals to GeoTracker
December
2025
3.4.1 Upload Remedial Action
Completion Report to
GeoTracker
August 2027
4. MONITORING
4.1.1 Upload Soil Vapor Monitoring
Report and associated
electronic data submittals to
GeoTracker
July 2026
4.2.1 Upload Groundwater Monitoring
Reports and associated
electronic data submittals to
GeoTracker
Quarterly,
Begin
January
2025 and
through the
Work
Completion
Date
4.3.1 Upload two (2) semi-annual
Indoor Air Monitoring Reports
and associated electronic data
submittals to GeoTracker
January
2027
July 2027
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
ITEM DESCRIPTION OF SUBMITTAL CRITICAL
DUE DATE
ESTIMATED
DUE DATE
COMPLETED
DATE
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
4.4.1 Upload seven (7) Monitoring
Reports and associated
electronic data submittals to
GeoTracker
Quarterly,
Begin
January
2025 and
through the
Work
Completion
Date
5. SITE CLOSURE
5.1.1 Upload Request for Site Closure
Letter and associated electronic
data submittals to GeoTracker
September
2027
5.1.2 Upload Well Destruction/Site
Closure Work Plan to
GeoTracker
November
2027
5.1.5 Upload Site Closure/Well
Destruction Report and
associated electronic data
submittals to GeoTracker
December
2027
2. Draft Project Report January 31,
2028
3. Final Project Report February
28, 2028
EXHIBIT B – SPECIFIC FUNDING PROVISIONS
B.6 REIMBURSEMENT
PROCEDURE
1. Reimbursement Requests Quarterly
4(f) Final Reimbursement Request March 31,
2028
The Recipient must deliver any request for extension of the Work Completion Date no less than 90 days prior to the Work Completion Date.
A.4 PROGRESS REPORTS
Recipient must submit a progress report to the Project Manager monthly by the seventh day of each month, beginning no later than 30 days after execution of this Agreement.
1. The progress reports must provide a brief description of the work performed, any accomplishments during the month, milestones achieved, sampling City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit A
results (if applicable), and any problems encountered in the performance of the work under this Agreement. Recipient must document all contractor activities in progress reports.
2. Invoicing can be either monthly or quarterly. When invoicing monthly, the invoice should accompany the progress report. When invoicing quarterly, the invoice must itemize charges for the work completed during the reporting period covered by the monthly progress reports for that quarter. The invoice cannot be paid prior to submission of (a) progress report(s) covering the invoice reporting period.
A.5 SPECIAL REPORTS
1. As a condition precedent to the Division’s determination of Project Completion and release of withheld Project Funds, if any, the Recipient must submit documentation satisfactory to the Division that the applicable regulatory agency has deemed the work complete.
2. Recipient must prepare and submit to the Project Manager a draft Project Report for review and comment.
3. Recipient must prepare a final Project Report that addresses, to the extent feasible, comments made by the Project Manager on the draft final Project Report. Submit one (1) reproducible master, and an electronic copy of the final.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit B
EXHIBIT B – SPECIFIC FUNDING PROVISIONS
B.1 ESTIMATED REASONABLE COST AND PROJECT FUNDS
The estimated reasonable cost of the total Project is set forth on the Cover Page of this Agreement, and is greater than or equal to the funding anticipated to be provided by the State Water Board under this Agreement. Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.
B.2 DOUBLE PAYMENT PROHIBITION
Pursuant to Health and Safety Code, section 25299.50.6, subdivision (e)(2), the Recipient is prohibited from receiving Project Funds for any costs which the Recipient has been, or will be, paid by another source.
The Recipient must disclose to the State Water Board all moneys that the Recipient, an affiliate, or anyone acting on the Recipient’s behalf has received or may receive that are in any way related in whole or in part to the contamination that is the subject of this Agreement, no matter how the payment is characterized or the Recipient’s own belief as to whether the receipt of those moneys constitutes double recovery. Recipients must fully disclose all moneys received on a Non-Recovery From Other Sources Disclosure Certification so that the State Water Board can make its own independent determination of whether the receipt of those moneys constitutes double recovery.
B.3 VERIFIABLE DATA
Upon request by the Division, the Recipient must submit verifiable data to support deliverables specified in the Scope of Work. The Recipient’s failure to comply with this requirement may be construed as a material breach of this Agreement.
B.4 BUDGET COSTS
Budget costs are contained in the Project Cost Table below:
The maximum amount to be encumbered under this Agreement for the 2024-25 fiscal year ending June 30, 2025 shall not exceed FOUR HUNDRED EIGHTY-THREE THOUSAND THREE HUNDRED FIFTY-THREE DOLLARS ($483,353).
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit B
ITEM DESCRIPTION TOTAL
1 Project Management $32,760
2 Site Investigation $69,722
3 Remedial Action $148,547
4 Monitoring $124,166
5 Site Closure $108,158
TOTAL $483,353
Available Site Contingency Adjustment $0
Less Ability To Pay $0
PROJECT FUNDING AMOUNT $483,353
B.5 LINE ITEM ADJUSTMENTS
1. Subject to the prior review and approved, in advance and in writing, by the Project Manager, adjustments between existing line items may be used to defray allowable direct costs up to fifteen percent (15%) of the total Project Funding Amount available in any Fiscal Year, including any amendment(s) thereto. Line item adjustments approved by the Project Manager must be de minimis, less than fifteen percent (15%) of the total Project Funding Amount available in any Fiscal Year, and may not include any changes to the Scope of Work. Except as provided for the Available Site Contingency Adjustment, line item adjustments in excess of fifteen percent (15%) or line item adjustments that result in a change to the scope of work will require an Agreement amendment. If the detailed budget includes an amount for the Recipient’s personnel costs, that amount is based on the hours, classifications, and rates submitted by the Recipient in its application. Any changes to the hours, classifications, and rates must be task-appropriate, within the item budget and line item adjustments allowed, and approved, in advance and in writing, by the Project Manager.
2. The Recipient may submit a request for an adjustment in writing to the Project Manager. Such adjustment may not increase or decrease the total funding amount available in any Fiscal Year. The Recipient shall submit a copy of the original Agreement budget sheet reflecting the requested changes and shall note proposed changes by striking out the original amount(s) followed with proposed change(s) in bold and underlined. Except as provided for the Available Site Contingency Adjustment, budget adjustments deleting a budget line item or adding a new budget line item shall require a formal amendment. The Division may also propose budget adjustments.
3. The sum of adjusted line items shall not exceed the total budget amount available in any Fiscal Year.
4. The Recipient shall not be entitled to any reimbursement from the Available Site Contingency Adjustment budget line item without prior approval in writing from the City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit B
Division. The Available Site Contingency Adjustment budget line item is available only for reasonable and necessary project costs, which for good cause, exceed the funds allotted for the Total Budgeted Costs, and must be approved by the Cleanup Fund Branch Assistant Deputy Director prior to use. The State Water Board may, at its discretion, require a formal Agreement amendment rather than use funds in the Available Site Contingency Adjustment budget line item.
B.6 REIMBURSEMENT PROCEDURE
1. No reimbursement under this Agreement will be made except upon receipt of an acceptable Reimbursement Request form duly executed by or on behalf of the Recipient. The Recipient’s authorized signatory or designee, who has been approved by the State Water Board, must execute all Reimbursement Request forms. A Reimbursement Request form must accompany all Reimbursement Requests. The Reimbursement Request form with original invoices or unmodified copies of original invoices shall be submitted to the State Water Board’s Project Manager on either a monthly or quarterly basis consistent with the invoicing schedule in this Agreement. The submittal must be made either through approved electronic means or at the following address:
Lucia Tropeano, Project Manager
State Water Resources Control Board
Division of Financial Assistance
SCAP
P. O. Box 944212
Sacramento, CA 94244-2120
2. The Project Costs requested must be for the remediation of harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination. The State Water Board may pay eligible Project Costs of remediation actions that are reasonable and necessary. The Recipient may not receive reimbursement from the State Water Board for remediation actions that have been or will be paid or otherwise compensated from another source.
3. Reimbursement of any Project Costs shall be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed Reimbursement Request. Reimbursement Requests must be itemized based on the line items specified in the Budget Costs in this Exhibit. Reimbursement Requests submitted in any other format than the one provided by the State Water Board will cause a Reimbursement Request to be disputed. In the event of a Reimbursement Request dispute, the State Water Board will notify the Recipient. Reimbursement will not be made until the dispute is resolved and a corrected Reimbursement Request submitted. Failure to use the address exactly as provided above may result in return of the Reimbursement Request to the Recipient. Reimbursement shall be deemed complete upon deposit of the reimbursement, properly addressed, postage City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit B
prepaid, in the United States mail. The State Water Board Project Manager has the responsibility for approving Reimbursement Requests.
4. Reimbursement Requests must contain the following information:
(a) The date of the request;
(b) The time period covered by the request, i.e., the term “from” and “to;” (c) The total amount requested;
(d) Original invoices or unmodified copies of original invoices supporting all requested costs;
(e) Physical, handwritten signature and date (in ink) of the Recipient’s authorized signatory or designee or an electronic signature and date signed by the Recipient’s authorized signatory or designee using a method approved by the State Water Board; and
(f) Final Reimbursement Request shall be clearly marked “FINAL REIMBURSEMENT REQUEST” and submitted NO LATER THAN
MARCH 31, 2028.
5. Each invoice submitted with a Reimbursement Request shall contain the following information:
(a) The word “INVOICE” and a sequential invoice number should appear in a prominent location at the top of the page(s);
(b) The date of the invoice and the time period covered by the invoice, i.e., the term “from” and “to;”
(c) Printed name of the consultant or contractor;
(d) Business address of the consultant or contractor, including P.O. Box, City, State, and Zip Code;
(e) Printed name of the Recipient;
(f) The number of the Agreement upon which the invoice is based; (g) The site address (location) where the work was performed. (h) All subcontractor(s) invoices must be listed on the invoice; a copy of the subcontractor invoice should be attached to the consultant/contractor invoice. All subcontractor(s) must have current and active professional licenses, as applicable.
(i) Physical, handwritten signature and date (in ink) of Recipient’s authorized signatory or designee or an electronic signature and date signed by the Recipient’s authorized signatory or designee using a method approved by the State Water Board.
(j) An itemized account of the work for which the Recipient is seeking payment:
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit B
• A brief description of the work performed, including dates of performance and the name or initials of the person performing the work; • The method of computing the amount due; (On cost reimbursable agreements, invoices must be itemized based on the tasks specified in the Budget.)
• The total amount due; this should be in a prominent location in the lower right- hand portion of the last page and clearly distinguished from other figures or computations appearing on the invoice; the total amount due shall include all costs incurred by the Recipient under the terms of this Agreement; and • Such other documents, certificates, instruments, opinion, or other writings as the State Water Board may reasonably request.
6. Recipient agrees that it will not submit any Reimbursement Requests that include any Project Costs until such costs have been incurred and are currently due and payable by the Recipient.
7. Recipient shall provide proof of payment to the consultant or contractor for each invoice submitted with a Reimbursement Request under this Agreement. If the recipient is not able to demonstrate proof of payment, the State Water Board, at its discretion, may issue two-party checks for the payment of costs identified in the Budget Costs in this Exhibit. The two-party checks will require the endorsement of both Recipient and the company providing the services.
8. Notwithstanding any other provision of this Agreement, no reimbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, rules, or regulations, or which may require any rebates to the Federal Government, or any loss of tax-free status on state bonds, pursuant to any Federal statute or regulation.
9. Notwithstanding any other provision of this Agreement, the Recipient agrees that the State Water Board may retain ten percent (10%) of the amount specified in this Agreement until “Final Project Summary” from local regulatory agency of the Project is received. Any retained amounts due to the Recipient will be promptly disbursed to the Recipient, without interest, upon completion of the Project.
B.7 REVERTING FUNDS AND DISENCUMBRANCE
In the event the Recipient does not submit Reimbursement Requests for all funds encumbered under this Agreement by the Final Reimbursement Request Date, any remaining funds revert to the State. The State Water Board may notify the Recipient that the project file is closed, and any remaining balance will be disencumbered and unavailable for further use under the Agreement.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
1. DEFINITIONS. Unless otherwise specified in this Agreement, each capitalized term used in this Agreement has the following meaning:
• “Agreement” means this agreement, including all exhibits and attachments hereto.
• “Cover Page” means the front page of this Agreement.
• “Days” means calendar days unless otherwise expressly indicated. • “Deputy Director” means the Deputy Director of the Division. • “Division” means the Division of Financial Assistance of the State Water Board or any other division or unit of the State Water Board authorized to administer this Agreement.
• “Event of Default” means the occurrence of any of the following events:
a) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any document furnished by or on behalf of the Recipient to the State Water Board pursuant to this Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect; b) Failure by the Recipient to observe and perform any covenant, condition, or provision in this Agreement, which failure shall continue for a period of time, to be determined by the Division;
c) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any applicable bankruptcy, insolvency, or other similar law; the appointment of or taking possession of the Recipient’s property by a receiver, liquidator, assignee, trustee, custodian, conservator, or similar official; the Recipient’s entering into a general assignment for the benefit of creditors; the initiation of resolutions or proceedings to terminate the Recipient’s existence, or any action in furtherance of any of the foregoing; d) A determination pursuant to Gov. Code section 11137 that the Recipient has violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code; or e) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for the Project, or the occurrence of any material restraint on the Recipient’s enterprise by a government agency or court order.
• “Final Reimbursement Request Date” means the date set forth as such on the Cover Page of this Agreement, after which date, no further reimbursements or disbursements may be requested.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
• “Fiscal Year” means the period of twelve (12) months terminating on June 30 of any year.
• “GAAP” means generally accepted accounting principles, the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Governmental Accounting Standards Board or its successor, or the Uniform System of Accounts, as adopted by the California Public Utilities Commission for water utilities.
• “Material Obligation” means an obligation of the Recipient that is material to this transaction.
• “Party Contact” means, for the Recipient, the Authorized Representative of the Recipient or any designee of the Authorized Representative, and, for the State Water Board, the Division staff set forth in Section 2 of this Agreement. • “Project” means the Project funded by this Agreement as described in Exhibits A and B and in the documents incorporated by reference herein. • “Project Completion” means, as determined by the Division, that the Project is complete to the reasonable satisfaction of the Division. • “Project Costs” means the incurred costs of the Recipient which are eligible for funding under this Agreement, pursuant to applicable statutes, policy, regulations, or guidelines.
• “Project Funding Amount” means the maximum amount payable under this Agreement, as set forth on the Cover Page.
• “Project Funds” means all moneys disbursed to the Recipient by the State Water Board for eligible Project Costs pursuant to this Agreement. • “Project Manager” means the person designated by the State Water Board to manage performance of this Agreement. The Project Manager is set forth on the Cover Page.
• “Records Retention End Date” means the last date that the Recipient is obligated to maintain records related to this Agreement and is set forth on the Cover Page of this Agreement.
• “Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
• “Reimbursement Period” means the period during which Project Funds may be disbursed.
• “Reimbursement Request” means the Recipient’s request for Project Funds from the State Water Board as set forth in Exhibit B.
• “State” means State of California.
• “State Water Board” means the State Water Resources Control Board. • “Work Completion” means the Recipient’s submittal of all work set forth under Exhibit A for review and approval by the Division.
• “Work Completion Date” means the date set forth on the Cover Page of this Agreement and is the last date on which Project Costs may be incurred under this Agreement.
• “Year” means calendar year unless otherwise expressly indicated.
2. ACCESS, INSPECTION, AND PUBLIC RECORDS. The Recipient must ensure that the State Water Board, the State Auditor, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times through the Records Retention End Date or useful life of the Project, whichever is longer. The Recipient acknowledges that, except for a subset of information regarding archaeological records and personally identifiable information, the Project records and locations may be public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated into this Agreement by reference, and all reports, Reimbursement Requests, and supporting documentation submitted hereunder.
3. ACCOUNTING AND AUDITING STANDARDS; FINANCIAL MANAGEMENT SYSTEMS. The Recipient must maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of infrastructure assets.
Without limitation of the requirement to maintain Project accounts in accordance with GAAP , the Recipient must:
(a) Establish an official file for the Project which adequately documents all significant actions relative to the Project;
(b) Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all Project Funds received under this Agreement;
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
(c) Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to Project Funds disbursed under this Agreement;
(d) Establish an accounting system which will accurately depict final total costs of the Project if authorized under this Agreement;
(e) Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and (f) If the Recipient uses its own employees, equipment, or resources for any phase of the Project, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee.
4. AMENDMENT. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by both the Recipient and the Deputy Director or designee and approved as required.
5. ASSIGNABILITY. This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the State Water Board. Amendment of the Agreement may be required.
6. AUDIT. The Division may call for an audit of financial information relative to the Project if the Division determines that an audit is desirable to assure program integrity or if an audit becomes necessary because of State or federal requirements. If an audit is called for, the audit must be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient.
The audit must be in the form required by the Division. The Recipient must return, or ensure the return of, any audit disallowances within 30 days.
7. BONDING. Where construction contractors are used, the Recipient must not authorize construction to begin until each contractor has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00.
8. COMPETITIVE BIDDING. Recipient must adhere to any applicable State law or local ordinance for competitive bidding and applicable labor laws. If Recipient is a private entity, any construction contracts related in any way to the Project must be let by competitive bid procedures which assure award of such contracts to the lowest responsive and responsible bidders. Recipient must not award a construction contract until a summary of bids and identification of the selected lowest responsible bidder is submitted to and approved in writing by the Division.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
Recipient must provide a full explanation if Recipient is proposing to award a construction contract to anyone other than the lowest responsible bidder.
9. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REQUIREMENTS.
The Recipient must, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and State laws, rules, guidelines, regulations, and requirements and with provisions of the adopted environmental mitigation plan, if any, for the useful life of the Project.
10. COMPUTER SOFTWARE. The Recipient certifies that it has appropriate systems and controls in place to ensure that State funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.
11. CONFLICT OF INTEREST. The Recipient certifies that it, its owners, officers, directors, agents, representatives, and employees are in compliance with applicable State and federal conflict of interest laws and will remain in compliance for the useful life of the Project. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.
Public entities are required to have adopted conflict of interest codes and may be required to provide documentation of those codes to the Division.
12. DATA MANAGEMENT. The Recipient will undertake appropriate data management activities so that Project data can be incorporated into statewide data systems.
13. DEBARRED, DISQUALIFIED, OR EXCLUDED CONTRACTORS. The Recipient must not contract or allow subcontracting with excluded parties. The Recipient must not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized. For any work related to this Agreement, the Recipient must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.sht ml
14. DRUG-FREE WORKPLACE. The Recipient certifies that it will provide a drugfree workplace in compliance with the Drug-Free Workplace Act (Gov. Code. §§ 8350- 8357). The Recipient shall publish a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
substance is prohibited in the Recipient’s workplace and specifying the actions to be taken against employees for violations of the prohibition. The Recipient shall establish a drug-free awareness program to inform employees about the dangers of drug abuse in the workplace, the Recipient’s policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation and employee assistance programs, and penalties that may be imposed upon employees for drug abuse violations. The Recipient shall provide that every employee who works on the Project receives a copy of the Recipient’s drug-free workplace policy statement and agrees to abide by the terms of the statement as a condition of employment on the Project.
15. ENVIRONMENTAL CLEARANCE. No work that is subject to California Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA) may proceed under this Agreement until the State Water Board has provided approval to proceed. Upon receipt and review of the Recipient’s environmental documents, the State Water Board shall make the appropriate environmental findings before determining whether to approve construction or implementation funding for the Project under this Agreement. Providing approval for such construction or implementation funding is fully discretionary. The State Water Board may require changes in the scope of work or additional mitigation as a condition to providing construction or implementation funding under this Agreement. Recipient shall not perform any work subject to CEQA and/or NEPA before the State Water Board completes its environmental review and specifies any changes in scope or additional mitigation that may be required. Proceeding with work subject to CEQA and/or NEPA without approval by the State Water Board shall constitute a breach of a material provision of this Agreement. If this Project includes modification of a river or stream channel, the Recipient must fully mitigate environmental impacts resulting from the modification. The Recipient must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Project, and whether, on balance, any environmental enhancement or benefit equals or exceeds any negative environmental impacts of the Project.
16. FINAL REIMBURSEMENT REQUEST. The Recipient agrees to ensure that its final Reimbursement Request is received by the Division no later than the Final Reimbursement Request Date, unless prior approval has been granted by the Division. If the final Reimbursement Request is not received timely, the undisbursed balance of this Agreement may be deobligated.
17. FRAUD AND MISUSE OF PUBLIC FUNDS. All requests for disbursement must be accurate and signed by the Recipient or its Authorized Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for the work or tasks set forth in this Agreement. The Recipient must not submit any City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs).
Any costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and, notwithstanding any other section in this Agreement, the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability.
18. FUNDING CONTINGENCY. The State Water Board’s disbursement of funds hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement. The State Water Board's obligation to disburse funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the federal or State government to appropriate funds necessary for disbursement of funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. If this Agreement’s funding for any fiscal year expires due to reversion or is reduced, substantially delayed, or deleted by the Budget Act, by Executive Order, or by order or action of the Department of Finance, the State Water Board has the option to either cancel this Agreement with no liability accruing to the State Water Board, or offer an amendment to the Recipient to reflect the reduced amount. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other entity. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding.
19. GOVERNING LAW. This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
20. RECIPIENT’S SHARE. The Recipient agrees that it will provide for the payment of its full share, if any share is required, of Project Costs and that all costs connected with the Project will be timely paid by the Recipient.
21. INDEMNIFICATION AND STATE REVIEWS. The parties agree that review or approval of Project plans and specifications by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
feasibility, and does not relieve the Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the Project; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons. The Recipient must also provide for the defense and indemnification of the Indemnified Parties in any contractual provision extending indemnity to the Recipient in any contract let for the performance of any work under this Agreement, and must cause the Indemnified Parties to be included within the scope of any provision for the indemnification and defense of the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section survive the term of this Agreement.
22. INDEPENDENT ACTOR. The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
23. INSPECTION. Throughout the useful life of the Project, the State Water Board shall have the right to inspect the Project area to ascertain compliance with this Agreement.
24. INTEGRATION. This Agreement constitutes the complete and final agreement between the parties. No oral or written understanding or agreement not incorporated in this Agreement shall be binding on either party.
25. LIENS. The Recipient must not make any pledge of or place any lien on the Project or Project assets except upon consent of the Division.
26. NO DISCRIMINATION. The Recipient must comply with Government Code section 11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 11140 et seq.), including, but not limited to, ensuring that no person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to discrimination in the operation of, the Project on the basis of sex, race, color, religion, ancestry, national origin, ethnic group identification, age, mental disability, physical disability, medical condition, genetic information, marital status, or sexual orientation as such terms are defined under California law, for as long as the Recipient retains ownership or possession of the Project. If Project Funds are used to acquire or improve real property, the Recipient must include a covenant of nondiscrimination running with the land in the instrument effecting or recording the transfer of such real property.
The Recipient must comply with the federal American with Disabilities Act of 1990 and implementing regulations as required by Government Code section 11135(b).
The Recipient’s obligations under this section shall survive the term of this Agreement. During the performance of this Agreement, Recipient and its contractors and subcontractors must not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status. The Recipient, its contractors, and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. The Recipient, its contractors, and subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.; Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. The Recipient, its contractors, and subcontractors must give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. The Recipient must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
27. NO THIRD-PARTY RIGHTS. This Agreement creates no rights in and grants no remedies to any third party as a beneficiary of this Agreement.
28. NO OBLIGATION OF THE STATE. Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this Agreement.
29. NON-WAIVER. Nothing in this Agreement shall affect or impair the Recipient’s obligation to undertake work under this Agreement or shall affect or impair the right of the State Water Board to bring suit to enforce such work. No delay or omission of the State Water Board in the exercise of any right arising upon an Event of Default shall impair any such right or be construed to be a waiver of any such Event of Default. The State Water Board may exercise from time to time and as often as shall be deemed expedient by the State Water Board, any remedy or right provided by law or pursuant to this Agreement. Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.
30. OTHER FUNDING SOURCES; INCOME RESTRICTIONS. If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient must notify the Division. The Recipient may retain such funding up to an amount which equals the Recipient's contribution to Project costs. To the extent allowed by requirements of other funding sources, excess funding must be remitted to the State Water Board. The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient as related to this Agreement must be paid by the Recipient to the State Water Board, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State Water Board under this Agreement.
31. PERMITS AND AUTHORIZATIONS. Recipient must procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such permits or licenses must be submitted to the Division before any construction or implementation begins.
Any contractors, outside associates, or consultants required by the Recipient in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, or as are specifically authorized by the State Water Board’s Project Manager during the performance of this Agreement. Any substitutions in, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the State Water Board’s Project Manager.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
32. PREVAILING WAGES. If applicable, the Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. If applicable, the Recipient must monitor all agreements subject to reimbursement from this Agreement to ensure that the applicable prevailing wage provisions of the State Labor Code are being met. Division of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/lcp.asp. For more information, please refer to DIR’s Public Works Manual at:
http://www.dir.ca.gov/dlse/PWManualCombined.pdf.
33. PRIOR COSTS. No costs incurred prior to the Eligible Work Start Date are eligible for reimbursement.
34. PROFESSIONALS. The Recipient agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for.
All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, architectural, or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code sections 5536.1, 6735, 7835, and 7835.1. As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.
35. RECORDS, INSPECTION, AUDITS, AND INTERVIEWS; RECORDS RETENTION.
The Recipient must maintain separate books, records and other material relative to the Project and retain such books, records, subcontracts, and other material until at least the Records Retention End Date set forth on the Cover Page of this Agreement. The Recipient must require that such books, records, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the Department of Finance, the California State Auditor, the Bureau of State Audits, or any authorized representatives of the aforementioned, including federal funding agencies and their auditors, if any. The Recipient must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the term of this Agreement.
36. RELATED LITIGATION. Under no circumstances may the Recipient use funds from any reimbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Board.
Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Recipient agrees to complete the Project funded by this Agreement or to repay all of the disbursed funds plus interest.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
37. REMEDIES. The State Water Board may enforce its rights under this Agreement by any judicial proceeding, whether at law or in equity. None of the remedies available to the State Water Board shall be exclusive of any other remedy, and each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. The State Water Board may exercise any remedy, now or hereafter existing, without exhausting and without regard to any other remedy. Any dispute of the Recipient is limited to the rights and remedies provided to the Recipient under this Agreement and is subject to the procedures provided to the Recipient under this Agreement.
38. REPORTS - AS NEEDED. The Recipient must provide expeditiously any reports, data, and information reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the State or federal government.
39. RESPONSIBILITY FOR WORK. The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project, including, but not limited to, payment disputes with contractors and subcontractors. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.
40. RIGHTS IN DATA. The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request. The Recipient may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Agreement, subject to appropriate acknowledgement of credit to the State Water Board for financial support. The Recipient shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so.
41. STATE WATER BOARD ACTION; COSTS AND ATTORNEY FEES. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
42. STATUS QUO. If any action to enforce any right or exercise any remedy shall be brought and either discontinued or determined adversely to the State Water Board, then the State Water Board shall be restored to its former position, rights, and remedies as if no such action had been brought.
43. TERMINATION, IMMEDIATE REPAYMENT, AND INTEREST: This Agreement may be terminated by written notice at any time, at the option of the State Water Board, if:
a. the Recipient has received funds as a result of a material misrepresentation in the funding application or other submitted document; or b. upon violation by the Recipient of any material provision of this Agreement after such violation has been called to the attention of the Recipient and after failure of the Recipient to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the State Water Board.
In the event of such termination, the Recipient agrees, upon demand, to immediately repay to the State Water Board an amount equal to the amount of Project Funds disbursed to the Recipient prior to such termination. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Recipient to the date of full repayment by the Recipient.
44. TIMING. Time is of the essence. The Recipient must expeditiously proceed with and complete the Project. Failure to proceed according to the timelines set forth in this Agreement may require the Recipient to repay to the State Water Board all disbursed Project Funds.
45. TRAVEL AND PER DIEM. No work or travel outside the State of California is permitted under this Agreement unless the Division provides prior written authorization. No work or travel outside the United States of America is authorized.
Failure to comply with this restriction may constitute an Event of Default and result in termination of this Agreement. Any reimbursement for necessary travel and per diem shall be set pursuant to and at rates not to exceed those set by the California Department of Human Resources at
http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as of the date costs are incurred by the Recipient.
46. UNDISBURSED FUNDS. The Recipient is not entitled to interest earned on undisbursed funds.
47. UNENFORCEABLE PROVISION; SEVERABILITY. In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.
48. UNION ACTIVITIES: The Recipient hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Agreement. The Recipient certifies that none of the Project Funds will be used to assist, promote, or deter union organizing. If the Recipient incurs costs or makes expenditures to assist, promote, or deter union organizing, the Recipient will maintain records sufficient to show that no reimbursement from Project Funds has been sought for these costs and the Recipient shall provide those records to the Attorney General upon request.
49. VENUE. Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.
50. WAIVER AND RIGHTS OF THE STATE WATER BOARD. Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.
51. WATER CONSERVATION AND EFFICIENCY PROGRAMS: The Recipient acknowledges that it has appropriate water conservation and efficiency programs in place, and that this provision constitutes a condition of this Agreement. A web link with examples of water conservation and efficiency programs is available at:
http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/cons ervation.shtml.
52. WATER DIVERSION AND USE: To the extent applicable, the Recipient has complied with, and shall continue to comply with, the requirements of Water Code, division 2, part 5.1, section 5100 et seq. for filing statements of water diversion and use.
53. WITHHOLDING OF DISBURSEMENTS AND REIMBURSEMENTS.
Notwithstanding any other provision of this Agreement, the State Water Board may withhold all or any portion of the Project Funds upon the occurrence of any of the following events:
a) Failure of the Recipient to maintain reasonable progress on the Project as determined by the Division;
b) Commencement of litigation or a judicial or administrative proceeding related to the Project, or Recipient that the State Water Board determines may impair the timely satisfaction of Recipient’s obligations under this Agreement; c) Any investigation by State, local, or federal investigators or auditors, or a grand jury, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit C
d) A material adverse change in the condition of the Recipient, or the Project, that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement, or any other event that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement; e) The Recipient’s material violation of, or threat to materially violate, any provision of this Agreement;
f) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the Recipient or its employees, or by its contractors or agents directly or indirectly regarding the Project;
g) An event requiring notice under this Agreement; or
h) An Event of Default or an event that the Division determines may become an Event of Default.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
EXHIBIT D – SPECIAL CONDITIONS
D.1 ADDITIONAL REPRESENTATIONS AND WARRANTIES
The Recipient has not made any untrue statement of a material fact in its application for this financial assistance or omitted to state in its application a material fact that makes the statements in its application not misleading.
The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.
The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date of execution of this Agreement by the Recipient, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date of execution of this Agreement by the Recipient.
Any financial statements or other financial documentation of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements or other financial documentation: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements or other financial documentation, there has been no material changes in the financial condition of the Recipient.
The Recipient legally possesses property access rights to any real or personal property necessary for the purposes of this Agreement for which the Recipient does not legally possess all real or personal property rights. The Recipient has disclosed to the State Water Board all proceedings, actions, or offers of which the Recipient has knowledge or belief that may in any way affect the Recipient’s ability to access or legally possess all of the property necessary for the purpose of this Agreement, including any proceedings, actions, or offers to lease, purchase, or acquire by eminent domain any of the real or personal property related to or necessary for the Project.
The Recipient and its principals, contractors, and subcontractors, to the best of the Recipient’s knowledge and belief, are not presently debarred, suspended, proposed for debarment, declared ineligible, or otherwise excluded from participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized; nor have they engaged or permitted the performance of services covered by this Agreement from parties that are debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
D.2 NOTICE
The Recipient shall promptly notify the State Water Board of events or proposed changes that could affect the scope, budget, or work performed under this Agreement.
The Recipient agrees that no substantial change in the scope of the Project will be undertaken until written notice of the proposed change has been provided to the State Water Board, and the State Water Board has given written approval for such change.
The Recipient shall notify the State Water Board at least ten (10) working days prior to any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by the State Water Board’s representatives. The Recipient shall promptly notify the State Water Board in writing of completion of work on the Project.
D.3 FRAUD, WASTE, AND ABUSE
The Recipient shall prevent fraud, waste, and the abuse of Project Funds, and shall cooperate in any investigation of such activities that are suspected in connection with this Agreement. The Recipient understands that discovery of any evidence of misrepresentation or fraud related to Reimbursement Requests, invoices, proof of payment of invoices, or other supporting information, including but not limited to double or multiple billing for time, services, or any other eligible cost, may result in an administrative action by the State Water Board and/or referral to the Attorney General’s Office or the applicable District Attorney’s Office for appropriate action. The Recipient further understands that any suspected occurrences of false claims, misrepresentation, fraud, forgery, theft, or any other misuse of Project Funds may result in withholding of reimbursements and/or the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder. A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal may be subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.)
D.4 CONTRACTORS AND CONSULTANTS
Any contractors, outside associates, or consultants required by the Recipient in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, or as are specifically authorized by the State Water Board’s Project Manager during the performance of this Agreement. Any substitutions in, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the State Water Board’s Project Manager.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
D.5 CONDITIONS PRECEDENT TO REIMBURSEMENT
The State Water Board’s obligation to make a reimbursement of the proceeds of this Agreement to the Recipient is subject to and conditioned upon the State Water Board's receipt of each of the following:
1. Copy of executed agreement(s) for response work acceptable to the State Water Board; (Subcontractor(s) must meet all licensing and certification requirements for the work being performed, including, but not limited to, having current and active license(s) issued by the California State Contractors License Board.)
2. Copies of permits from regulatory agencies necessary to conduct response actions;
3. Copies of invoices as identified in Exhibit B;
4. Such other documents, certificates, instruments, opinion, or other writings as the State Water Board may reasonably request;
5. The Recipient has provided proof of payment of the Ability to Pay Obligation, if any, in accordance with D.7; and
6. A complete, adequately supported, properly documented and accurately addressed invoice package.
D.6 DISENCUMBRANCE AND TERMINATION
1. In addition to the relevant provisions of Exhibit C, the State Water Board, at its discretion, may disencumber Project Funds or terminate this Agreement if:
(a) An invoice package seeking reimbursement under this Agreement, or provide proof of payment of the Ability to Pay Obligation, if any, in accordance with D.7, is not received within six (6) months of the effective date of this Agreement; (b) The Recipient does not perform response actions, seek reimbursement under this Agreement, or provide proof of payment of the Ability to Pay Obligation, if any, in accordance with D.7, with due diligence; or
(c) The Recipient is not in compliance with any applicable requirements contained in chapter 6.75 of the Health and Safety Code.
2. The State Water Board’s authority to terminate this Agreement under any of the Agreement’s termination provisions is not subject to the Dispute provisions in this Agreement.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
D.7 SCAP ABILITY TO PAY
To receive a Site Cleanup Subaccount grant, Responsible Parties must lack sufficient financial resources to pay for the required response actions. The State Water Board has determined that the Responsible Parties have Zero Ability to Pay for the costs of the Project, based on the proposed scope of work and budget provided for the period from the Eligible Work Start Date to the Work Completion Date and all available financial information for the Responsible Parties.
D.8 DISPUTES
The parties shall deal in good faith and attempt to resolve potential disputes informally.
If the dispute persists, the Recipient shall submit to the Deputy Director of the Division of Financial Assistance a written demand for a final decision. The decision of the Deputy Director, or his or her authorized representative, shall be reduced to writing and a copy thereof furnished to the Recipient and to the State Water Board’s Executive Director. The decision of the Deputy Director shall be final and conclusive unless, within thirty (30) calendar days of the date of the Division decision, the State Water Board’s Executive Director receives a written appeal. The Recipient’s written appeal shall be fully supported by any factual information the Recipient desires to be considered in the decision. The Executive Director’s decision shall be final and conclusive, unless determined by a court of competent jurisdiction to have been fraudulent, capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. Pending final decision of a dispute hereunder, the Recipient shall continue to fulfill and comply with all the terms, provisions, commitments, and requirements of this Agreement. This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.
D.9 STATE CROSS-CUTTERS
Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following for the term of the Agreement:
• The California Environmental Quality Act (CEQA), as set forth in Public Resources Code section 21000 et seq. and in the CEQA Guidelines at title 14, division 6, chapter 3, section 15000 et seq.
• If applicable, Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in sections 1725.5 and 1771.1 of the Labor Code.
• If applicable, Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002.
City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
• If applicable, Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.
• The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code, Health and Safety Code sections 25187, 25187.1, 25296.10, or 101480, Health and Safety Code sections 25355.5 or 25358.3 as those sections read before January 1, 2024, Health and Safety Code sections 78870 or 79055 as those sections read effective January 1, 2024, and any other directive or order issued pursuant to regulatory authority over the Project.
D.10 COMPETITIVE BIDDING AND BONDING WAIVER
The State Water Board may waive any competitive bidding or bonding requirement in this Agreement that is not otherwise required by any applicable State law or local ordinance for competitive bidding or bonding or applicable labor laws.
D.11 EXECUTIVE ORDER N-6-22 — RUSSIAN SANCTIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State Water Board determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State Water Board shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State Water Board.
The Recipient represents that the Recipient is not a target of economic sanctions imposed in response to Russia’s actions in Ukraine imposed by the United States government or the State of California. The Recipient is required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine, including with respect to, but not limited to, the federal executive orders identified in California Executive Order N-6-22, located at https://www.gov.ca.gov/wp- content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf and the sanctions identified on the United States Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and- country-information/ukraine-russia-related-sanctions). The Recipient is required to comply with all applicable reporting requirements regarding compliance with the City of Victorville
Agreement No.: D2410048
Project No. S0048
Exhibit D
economic sanctions, including, but not limited to, those reporting requirements set forth in California Executive Order N-6-22 for all Recipients with one or more agreements with the State of California with an aggregated value of Five Million Dollars ($5,000,000) or more. Notwithstanding any other provision in this Agreement, failure to comply with the economic sanctions and all applicable reporting requirements may result in termination of this Agreement.
For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000) or more with the State of California, reporting requirements include, but are not limited to, information related to steps taken in response to Russia’s actions in Ukraine, including but not limited to:
1. Desisting from making any new investments or engaging in financial transactions with Russian institutions or companies that are headquartered or have their principal place of business in Russia;
2. Not transferring technology to Russia or companies that are headquartered or have their principal place of business in Russia; and
3. Direct support to the government and people of Ukraine.
ATTACHMENT D
MAP OF PROPERTY
Item Number: 13
City Council / Board of Directors
Written Communication
Meeting of: April 15, 2025
Submitted By:
Fredy Bonilla, City Engineer
Subject:
La Paz Drive/Seneca Road Traffic Circle Quick Build Project – Notice of Exemption and Intent to Accept Competitive Grant Award
Recommendation:
That the Honorable City Council;
(1) Adopt Resolution 25-023 of the City of Victorville declaring intent to accept a SCAG Competitive Grant Award for the La Paz/Seneca Road Traffic Circle Quick Build Project, finding the Project exempt from the California Environmental Quality Act, and authorizing the City Manager to execute all necessary documents to accept award; and
(2) Approve the Notice of Exemption and authorize staff to file the notice with the Office of Planning and Research and the County Clerk.
Fiscal Impact:
There is no fiscal impact associated with this item. The action is solely to satisfy the pre- award requirements for the Southern California Association of Governments Sustainable Communities grant program. Additionally, the grant does not include a matching funding requirement.
Strategic Plan Goal:
This project aligns with Goal E “Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026 by increasing vehicular and pedestrian safety with the installation of a traffic circle quick build project.
Background:
In July 2024, the Southern California Association of Governments (SCAG) issued a call for applications for the 2024 Sustainable Communities Program (SCP) – Active Transportation and Safety. This program provides funding for projects that support active transportation modes (walking, biking, and transit), improve roadway safety, and achieve 4 0
6 3
the mobility goals, planning policies, strategic investments, and implementation strategies of the Connect SoCal 2024 Regional Transportation Plan/Sustainable Communities Strategy. Included in this call for projects were the following two project categories:
(1) Community/Areawide Plans: Active transportation-related plans that benefit disadvantaged communities, per the state’s Active Transportation Program guidelines.
(2) Quick-Build Projects: Interim capital improvement projects that require minor construction activity and use durable, low- to medium-cost materials to pilot and iterate through active transportation and roadway safety project designs with community feedback.
Please see Attachment D Active Transportation and Safety Amended Program Guidelines.
In response to this call for projects, on Friday, September 27, 2024, the Engineering Department submitted a Quick-Build Project application titled “La Paz Drive & Seneca Road Traffic Circle”. After the review and scoring of the applications in December of 2024, the SCAG council approved the 2024 SCP – Active Transportation and Safety Project List of projects wherein the City of Victorville’s application was included. On January 25, 2025, SCAG notified the City of its intent to award $503,700 for the “La Paz Drive / Seneca Road Traffic Circle Quick-Build Project” (herein referred to as “La Paz Drive Traffic Circle Quick-Build Project).
To further elaborate, Quick-Build Projects refer to a type of capital improvement that requires minimal or minor construction activities and immediately implements safety needs. Quick-Build Projects are also flexible in that treatments can be removed, altered, or modified based on community feedback and information collected. Some examples include bicycle lane striping, crosswalk additions or enhancements, wayfinding signs, or the addition of potted vegetation/shade trees on sidewalks.
The intersection of La Paz Drive, Mesa Drive, and Seneca Road is geometrically difficult for drivers to navigate. It is one of the signalized intersections within the City that continues to have collisions on a regular basis even with the traffic signal present. Over the years, City staff has implemented different traffic patterns to try to mitigate the crashes. Collision reports indicate one of the principle causes for crashes at the intersection were due to unsafe speeds followed by improper turns and DUIs. Five (5) out of the eight (8) collisions included in the SCP application resulted in property damage.
One traffic pattern that has not been implemented at this intersection has been a traffic circle. It is anticipated a traffic circle at this location will act as a traffic calming measure, forcing drivers to slow down in order to enter and exit the circle. As a result, it is anticipated that changing the geometry of the intersection will reduce collisions and improve the safety of this intersection.
Due to the unusual geometry with the La Paz Drive, Mesa Drive, and Seneca Road intersection, it makes this location a great candidate for a community quick-build pilot 4 0
6 3
project. The project will allow the City to rapidly implement safety improvements using cost-effective and temporary materials that could be replaced with permanent infrastructure at a later time, allowing for fast intervention. The project will further include a community feedback component that will allow motorists to comment on the temporary improvement, therefore allowing the City to adjust the improvements, evaluate usage, and determine whether the traffic circle or the traffic signal will work best for all users.
While the temporary traffic circle is implemented and being studied, the existing traffic signal may remain in place, but not be operational. The project will be primarily led by the City’s Engineering Department staff and will pursue collaboration and feedback from local stakeholders throughout the project development and implementation phases.
Discussion:
As a condition of the grant award, the City must submit a resolution of the City Council supporting the project and demonstrating California Environmental Quality Act (CEQA) clearance. Engineering staff has reviewed the proposed project and has identified that the project is exempt from CEQA, which is hereby noted in Resolution 25-023. Upon Council adoption, staff will file Resolution 25-023 and the Notice of Exemption with the San Bernardino County Registrar Recorder and the State’s Clearinghouse and then proceed with submitting the executed Resolution and CEQA-related documentation to SCAG.
CEQA requires that public agencies review all projects to consider their potential direct or indirect environmental impacts and to establish whether such impacts can be reduced or avoided through mitigation or by pursuing other alternatives. The California Code of Regulations Title 14, Division 6, Chapter 3, provides guidelines for implementation of the CEQA. Article 19 of the guidelines identifies certain types of projects which have been determined not to have a significant effect on the environment and which are exempt from the provisions of the CEQA.
City staff has evaluated the scope of this project and has determined this work is Categorically Exempt from CEQA under Article 19, Section 15301(c): Existing Facilities (Class 1) of the CEQA guidelines.
This determination was based on the following criteria:
• The installation of a traffic circle at the La Paz Dr/Seneca Rd intersection is a minor alteration that will involve no expansion of existing use/capacity as their scopes aim to improve the safety of the intersection by installing a traffic circle that will reduce vehicular speeds.
• None of the following exceptions considered under Section 15300.2 apply for the reasons stated below:
(a) Location: The proposed project elements will be installed within the existing City’s Right-of-way within no particularly sensitive environments. 4 0
6 3
(b) Cumulative Impact: The traffic circle will be fully functional upon completion and will not require any successive projects for which cumulative impacts must be considered.
(c) Significant Effect: Even under unusual circumstances there is no reasonable possibility that the activities to be performed to complete this project will have a significant effect on the environment.
(d) Scenic Highways: The project is not located within a scenic highway. (e) Hazardous Waste Sites: The project is not listed on any list compiled pursuant to Section 65962.5 of the Government Code.
(f) Historical Resources: The project will not affect any historical resources as they will be installed within existing streets.
Pursuant to Article 5, Section 15061, after determining that a project is exempt from the CEQA, and once the project is approved by its governing body, a Notice of Exemption may be recorded to initiate a 35-day statute of limitations for any appeals submitted from a party feeling a categorical exemption is being improperly used to limit the possibility of legal challenge. Please refer to Attachment C, the Notice of Exemption for the project.
Upon approval of the recommendations of this agenda item, staff will begin work on the Memorandum of Understanding (MOU) with SCAG, which will memorialize the roles and responsibilities of each party. It is anticipated that the MOU execution will occur sometime in the Summer of 2025. At that time, staff will return the item to the City Council to request approval for the formal acceptance of grant funds and project account creation. Following the formal grant acceptance, staff will proceed with implementation of the project by conducting pre-implementation/scope of work refinement discussions with the granting agency and public engagement.
Staff recommends that the City Council adopt Resolution No. 25-023 declaring the intention of accepting a SCAG Competitive Grant Award and approve the Notice of Exemption for the La Paz Drive & Seneca Road Traffic Circle project.
Staff is available for any questions Council may have.
Attachments: A. Resolution 25-023
B. Vicinity Map
C. Notice of Exemption
D. Active Transportation and Safety Amended Program Guidelines
ATTACHMENT A
RESOLUTION 25-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VICTORVILLE, CALIFORNIA, DECLARING THE CITY'S
INTENT TO ACCEPT A COMPETITIVE GRANT AW ARD
ADMINISTERED BY SCAG FOR THE "LA PAZ DRIVE / SENECA
ROAD TRAFFIC CIRCLE QUICK-BUILD PROJECT" (LA
PAZ DRIVE TRAFFIC CIRCLE QUICK BUILD PROJECT).
FINDING THE PROJECT EXEMPT FROM CEQA, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
NECESSARY DOCUMENTS TO ACCEPT AW ARD
WHEREAS, the City of Victorville is a municipal corporation duly organized and existing pursuant to the Constitution of the State of California; and WHEREAS, the City of Victorville applied for and is conditionally approved to receive grant funds totaling $503,700 from the 2024 Sustainable Communities Program Active Transportation and Safety Application administered by the Southern California Association of Governments ("SCAG") for the La Paz Drive Traffic Circle Quick Build Project; and WHEREAS, The City's La Paz Drive Traffic Circle Quick Build Project proposes to install quick-build elements within the La Paz Drive/Seneca Road intersection, focusing on improving immediate safety needs, pedestrian and bicycle connectivity; and WHEREAS, as a condition of grant award, SCAG requires that the City of Victorville provide the granting agency with 1.) CEQA Clearance for the project and 2.) a Resolution from the grantees' elected body of intent to accept the award; and WHEREAS, the City of Victorville wishes to delegate authorization to execute these agreements and any amendments thereto; and
WHEREAS, said City Council, being fully advised in the premise, does hereby proceed as follows.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
VICTORVILLE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated herein and made a part of this Resolution.
SECTION 2. The City Council approves this resolution and authorizes the City Manager or designee to execute all necessary grant-related documentation, agreements, and any amendments to facilitate the grant and project.
SECTION 3. The City Council hereby finds and determines that the Project is exempt from the California Environmental Quality Act or "CEQA" and qualifies for an exemption pursuant to CEQA Guidelines Section 15301(c) "Existing Facilities". This categorical exemption includes minor alterations of existing streets, sidewalks, gutters, bicycle and pedestrian tra ils, and similar facilities as well as other alterations such as the addition of bicycle facilities, that involve negligible or no expansion of an existing use. The project proposes the construction of a traffic circle at the intersection of La Paz Drive and Seneca Road aimed to improve road safety for all users and does not propose any expansion of existing use as it will not add additional lanes. The project will involve re-striping and installation of ADAcompliant curb ramps. It is anticipated that the proposed roundabout will enhance traffic flows, reduce travel times, improve fuel efficiency, and decrease traffic congestion.
SECTION 4. City staff are hereby directed to prepare and post a notice of exemption according to CEQA Guidelines Section 15062 with the San Bernardino County Registrar/Recorder and the California State Clearinghouse.
SECTION 5. The City Clerk shall certify as to the adoption of this resolution and shall enter the same in the Book of Original Resolutions.
ATTACHMENT B
ATTACHMENT B
LA PAZ DRIVE/SENECA ROAD TRAFFIC CIRCLE
VICINITY MAP
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PROJECT LOCATION
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VICINITY MAP
NOT TO SCALE
ATTACHMENT C
ATTACHMENT D
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 1 Connect SoCal 2024 Sustainable
Communities Program
Active Transportation and Safety
Amended Program Guidelines
These guidelines were adopted June 6, 2024, by SCAG’s Regional Council and updated in August 2024 due to reductions in ATP Cycle 7 funding availability. The revised guidelines will be adopted by SCAG’s Regional Council on September 5, 2024.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 2 Table of Contents
Sustainable Communities Program Overview ........................................................................................... 3 I. Program Goals ..................................................................................................................................................... 3 2024 SCP Active Transportation & Safety Call for Applications .............................................................. 4 I. Overview ............................................................................................................................................................... 4 II. Eligible Applicants ............................................................................................................................................... 5 III. SCP-ATS Eligible Project Types .......................................................................................................................... 6 IV. Funding ................................................................................................................................................................. 9 V. Application Process ........................................................................................................................................... 11 VI. Schedule ............................................................................................................................................................. 13 VII. Contact Information .......................................................................................................................................... 14 Attachment A: ATP Cycle 7 Guidelines ..................................................................................................... 15 Attachment B: ATP Quick-Build Supplemental Guidance ....................................................................... 16 Attachment C: Allowable Direct Costs ...................................................................................................... 17 SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 3 Sustainable Communities
Program Overview
The Sustainable Communities Program (SCP) is a grant program that provides technical assistance to support implementation of Connect SoCal, the Regional Transportation Plan/Sustainable Communities Strategy for the Southern California Association of Governments (SCAG). The SCP strengthens partnerships with local agencies and strategic partners who are responsible for land use and transportation decisions to help the region achieve its unified goals. The SCP provides local jurisdictions with multiple opportunities to seek funding and resources to meet the needs of their communities.
SCAG is committed to working in partnership with others to close the gap of racial injustice and better serve historically disinvested communities. On July 2, 2020, the SCAG Regional Council adopted Resolution 20-623-2, affirming its commitment to advancing justice, equity, diversity, and inclusion throughout Southern California and subsequently adopted the Racial Equity Early Action Plan in May 2021 to guide SCAG’s work in advancing equity. As part of these commitments, the SCP aims to prioritize resources where there is a demonstrated need.
I. Program Goals
The SCP aims to:
• Provide needed resources for local jurisdictions to advance the goals outlined in Connect SoCal 2024 in the areas of mobility, communities, environment, and economy. • Promote racial equity that is grounded in the recognition of the past and current harms of systemic racism and one that advances restorative justice. • Integrate the region’s development pattern and transportation network to improve air quality, reduce greenhouse gas emissions and enable more sustainable use of energy and water. • Prioritize the most vulnerable populations and communities subject to climate hazards to help the people, places and infrastructure that are most at risk for climate change impacts. In doing so, recognize that disadvantaged communities are often overburdened. • Increase the region’s competitiveness for federal and state funds, including, but not limited to the California Active Transportation Program and Greenhouse Gas Reduction Funds.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 4 2024 SCP Active Transportation &
Safety Call for Applications
I. Overview
Connect SoCal 2024 is defined by the mobility goal to build and maintain an integrated multimodal transportation network (see page 12 in Connect SoCal 2024 Chapter 1). To achieve this goal, Connect SoCal 2024 identifies mobility policies organized into eight categories: System Preservation and Resilience, Complete Streets, Transit and Multimodal Integration, Transportation System Management, Transportation Demand Management, Technology Integration, Safety, and Funding the System/User Fees (see pages 88-89 and 114-116 in Connect SoCal 2024 Chapter 3).
The Connect SoCal 2024 SCP Active Transportation and Safety (SCP-ATS) Call for Applications represents one of multiple funding Calls through the Connect SoCal 2024 SCP. The SCP-ATS funds projects that primarily help advance the Connect SoCal 2024 mobility policies under Complete Streets, Transit and Multimodal Integration, and Safety. Selected projects will improve mobility across the region, increasing rates of walking and biking, advancing traffic safety, expanding opportunities for multimodal transportation options, and competitively positioning local jurisdictions for implementation/grant funds.
The 2024 SCP-ATS Call solicits the following project types:
• Develop a Community/Areawide Plan
• Develop and implement a Quick-Build Project
Applicants are encouraged to review Connect SoCal 2024 strategies to align project applications with regional planning priorities and concepts (see pages 124-128 in Connect SoCal 2024 Chapter 3 and Appendix 4: Connect SoCal 2024 Mobility Strategies of the Connect SoCal 2024 Mobility Technical Report). Competitive applications will advance multiple mobility goals and strategies, reflect understanding of context-based needs, utilize equity-centered planning practices, and result in planning products or programs that clearly tie community need with implementation. Collaborative public participation and engagement efforts that involve communities historically excluded from land use and transportation discussions and planning is required.
In the next four years, Southern California is expected to host several large-scale events that will impact the region’s transportation system: the World Cup in 2026, the Super Bowl in 2027, and the Olympic and Paralympic Games in 2028. These events will impact the entire Southern California region, particularly the region’s transportation networks. Thousands of athletes and spectators will visit the region in compressed periods of time, needing to travel to and from a variety of venues. People from across the region may travel to these events, either to watch the events as spectators or as event staff or volunteers. Moreover, goods and other items will be transported and delivered to venues. Everyone else will still need to carry on with their lives while the events are occurring. A great deal of preparation and planning will be needed, to support existing and anticipated needs, in meaningful, equitable and long-lasting ways.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 5 A) 2024 SCP-ATS GOALS
The SCP-ATS aims to:
• Improve mobility across the region, especially for children and older adults, and people walking, biking, riding transit/rail, and using other forms of active transportation; • Strategically invest in communities most harmed by traffic injuries and fatalities, which include the historically disinvested communities that comprise the majority of the Regional High Injury Network;
• Support a more resilient transportation network, especially in anticipation of the large-scale events hosted by the region; and
• Support local efforts to increase competitiveness for state and federal funding.
B) COMMUNITY ENGAGEMENT INTEGRATION
SCAG’s active transportation safety and engagement program provides a suite of community engagement resources, tools, and strategies. Planning and quick-build projects are expected to incorporate one or both of the following elements to facilitate meaningful community engagement. Go Human elements are available at no cost; however any project-specific costs, such as local event/traffic permits or publicity/advertisements, must be included in an applicant budget.
Go Human Kit of Parts – The Go Human Kit of Parts (Kit) is a community engagement resource loaned at no cost to local partners that creates opportunities for community members, jurisdiction staff and consultant teams to experience improved traffic safety designs directly on the street. The Kit includes a set of durable, lightweight materials that, once assembled, demonstrate complete streets infrastructure components. The Kit also includes signage and evaluation tools that allow the applicant or their consultant to facilitate community feedback as part of an inclusive planning process. The applicant or its consultant will be responsible for coordinating transportation of materials and preparation of a site and installation plan, subject to approval by SCAG. The applicant or its consultant will also be responsible for the set-up, break-down, and oversight of the Go Human Kit of Parts as part of the demonstration. SCAG staff will be available to provide feedback and guidance on planning for a successful demonstration or event and direction on appropriate utilization of the Kit of Parts.
Traffic Safety Awareness Campaign – Co-branded Go Human print and digital advertisements are available at no cost to cities or other local government agencies to implement a traffic safety awareness campaign, alongside project or plan outreach, in an effort to improve traffic safety for people walking and biking. Available materials include, but are not limited to, lawn signs, banners, postcards, billboard ads, bus shelter or bench ads, and social media graphics. SCAG provides select print materials, such as lawn signs and banners, to local partners at no cost, pending available print budget .
II. Eligible Applicants
The following entities, within the six-county SCAG region, are eligible to apply for SCP-ATS funds:
• Local or Regional Agency: Examples include cities, counties, councils of governments, Regional Transportation Planning Agencies and County Public Health Departments. • Caltrans: Caltrans must submit documentation that local communities are supportive of and have provided feedback on the proposed Caltrans project. Caltrans must submit documentation to SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 6 support the need to address the project with ATP funds, rather than other available funding sources, such as the State Highway Operations and Protection Program (SHOPP). • Transit Agencies: Any agency responsible for public transportation that is eligible for funds under the Federal Transit Administration.
• Natural Resources or Public Land Agencies: Federal, Tribal, State, or local agency responsible for natural resources or public land administration.
• Public schools or school districts
• Tribal Governments: Federally recognized Native American Tribes. • Private nonprofit, tax-exempt organizations that are responsible for the management of public lands: These organizations may only apply for projects eligible for Recreational Trails Program funds. Eligible project types include recreational trails and trailheads, park projects that facilitate trail linkages or connectivity to nonmotorized corridors, and conversion of abandoned railroad corridors to trails. Projects must benefit the general public, not only a private entity.
III. SCP-ATS Eligible Project Types
As described above, the 2024 SCP-ATS solicits two project types: community/area wide plans and quick- build projects. Applicants may apply for more than one project type and may submit multiple applications (and shall indicate priority of applications). SCAG staff is available to assist applicants in determining the most appropriate project type for their needs and goals.
A) PROJECT TYPE: COMMUNITY/AREAWIDE PLANS
The 2024 SCP-ATS will fund community/areawide planning projects that benefit disadvantaged communities. Eligible planning projects must meet one of the following conditions:
• Community plans must encompass, be located in, or overlap with a disadvantaged community. • Areawide plans must encompass at least one disadvantaged community.
Connect SoCal 2024 defines a disadvantaged community as a Priority Equity Community (PEC): census tracts in the SCAG region that have a greater concentration of populations that have been historically marginalized and are susceptible to inequitable outcomes based on a combination of the socioeconomic factors listed below. See the Connect SoCal 2024 Equity Analysis Technical Report and a map of PECs in the SCAG region for additional details and to identify PECs. Factors include:
• People of color
• Low-income households
• Limited vehicle and transit access
• Vulnerable ages
• Single parent households
• People without a high school diploma
• People with disabilities
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 7 • Housing cost burdened households
• People with limited English proficiency
In addition to the PEC definition, the following criteria are eligible definitions for disadvantaged communities. See Attachment A, the ATP Cycle 7 Guidelines (Section 17.A, pages 11-12), for details about each of the disadvantaged community definitions.
• Median Household Income
• CalEnviroScreen
• National School Lunch Program
• Healthy Places Index
• Climate and Environmental Justice Screening Tool
• USDOT Equitable Transportation Community Explorer
• Native American Tribal Lands
The maximum award for Community/Areawide Plan projects is $500,000. There is no required minimum funding request, and applicants may submit multiple applications. Awards for Community/Areawide Plans shall take the form of technical assistance, with a SCAG-procured consultant leading the project development and seeking reimbursement directly from SCAG. See Section IV.B (Funding Allocation for Award Recipients) for more information. Applicants are encouraged to include a letter of support from their county transportation commission in their application.
Project Examples
Examples of eligible community/areawide plans include, but are not limited to:
• Active Transportation Plan
• Bicycle and/or Pedestrian Master Plan
• First/Last Mile Plan (focused on active transportation) • Safe Routes Plan (e.g., to school, for seniors, etc.) • Transportation Safety-Focused Plan (e.g., Local Road Safety Plan or Safe System Plan with a focus on active transportation)
Required and Recommended Plan Components
The final deliverable for all plans must include, but not be limited to, the required components identified in Appendix A of the ATP Cycle 7 State Guidelines (see Attachment A) or explain why the component is not applicable. Examples of required components include mode share, existing bicyclist and pedestrian facilities, collision analysis, funding considerations, and an implementation plan. The following components are strongly encouraged:
• Framework to systematically analyze, identify, and prioritize traffic safety issues and corresponding recommendations, including proven roadway safety countermeasures. The framework should also identify roadway safety risks to support a jurisdiction’s ability to proactively address crash risks.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 8 • Multi-faceted community engagement, such as:
− Walk or bike audits
− Media/Advertisement campaigns (e.g., Go Human Co-Branded Awareness Campaign) − Temporary demonstration projects (e.g., Kit of Parts) B) PROJECT TYPE: QUICK-BUILD PROJECTS
A quick-build is an interim capital improvement project that requires minor construction activity (e.g., does not require excavation) and uses durable, low- to medium-cost materials to pilot and iterate through project designs with community feedback. Quick-Build projects are identified through community engagement and/or an existing plan and provide the opportunity to immediately respond to a community safety need. Quick-Build projects are typically installed for one to five years, depending on how quickly a design is modified or how long materials last, with evaluation occurring one to three years post-implementation.
Quick-Build projects are not required to be located in a disadvantaged community. The 2024 SCP-ATS will evaluate and fund quick-build projects using an equity-centered prioritization framework to prioritize the repair of historic and current inequities. The framework will consider project readiness (e.g. informed by community engagement and preliminarily assessed for feasibility), alignment with communities most harmed by traffic injuries and fatalities, and opportunities for mutually beneficial partnerships with local community organizations. These quick-build projects will provide an opportunity to pilot projects that not only enhance or expand the active transportation network but also contribute to a more resilient transportation network given the increased demand expected with large-scale events to be hosted by the region.
The maximum award for quick-build projects is $900,000, which includes planning, design, and implementation. There is no required minimum funding request, and applicants may submit multiple applications. Awards for quick-build projects shall take the form of technical assistance, with a SCAG - procured consultant leading project development and seeking reimbursement directly from SCAG, and pass-through funds to applicants for implementation. An applicant may use pass-through funds to procure a contractor or assign agency staff to implement the quick-build project. See Section IV.B (Funding Allocation for Award Recipients) for more information.
Project Examples
Examples of quick-build elements and materials include, but are not limited to:
• Curb extensions: paint and plastic posts, plastic bollards, or planters • Pedestrian safety enhancements: rectangular rapid flashing beacons, leading pedestrian intervals at signalized intersections, raised crosswalks, and/or high-visibility crosswalks • Modular transit stops: temporary transit platform to safely transition bike lanes through transit areas
• Pedestrian plaza/corridors: concrete barriers, barricades, planters, and/or signage • Protected bike lanes: striping and plastic posts, plastic bollards, planters, or parking SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 9 • Traffic calming treatments: temporary speed cushions, curb extensions (described above), and/or chicanes (i.e. curb extensions in a parking lane)
• Traffic circles: striping, rubber curbs, plastic posts, and signage Required Quick-Build Components
Quick-Build projects must include the following components:
• Ongoing community engagement to inform final project design and evaluation. • Data collection to establish existing conditions and to complete before/after evaluation of project implementation.
• Final (100%) project design reviewed, approved, and stamped by a licensed Professional Engineer and project cost estimates.
• Quick-Build installed for a minimum of six (6) months before conducting evaluation. • Final report summarizing work completed and recommendation of next steps.
See Appendix D of the ATP Cycle 7 Guidelines (Attachment A) and ATP Quick-Build Supplemental Guidance (Attachment B) for additional guidance on quick-build materials, designs, and project requirements.
IV. Funding
A) FUNDING SOURCES
Funding for the 2024 SCP-ATS is provided through a combination of state and federal sources, including the state Cycle 7 Active Transportation Program (ATP), which programs funds from FY25/26 to FY28/29 and a federal Safe Streets and Roads for All (SS4A) grant, which is anticipated to allocate funding in 2025 and expend funding within five years from allocation.
• Community/Areawide Plan projects shall be funded by ATP funds. • Quick-Build projects shall be funded with ATP funds, SS4A funds, local funds or a combination of ATP, SS4A, and/or local funds.
Recipients of 2024 SCP-ATS awards are required to comply with all applicable federal laws and state regulations including, but not limited to, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200); California Environmental Quality Act (CEQA); National Environmental Policy Act (NEPA) (42 U.S.C. § 4321 et seq.); and Build America, Buy America Act (BIL, div. G §§ 70901-27).
Hosting a Call for Applications to award funds from multiple funding streams is intended to simplify the application process and achieve efficiencies in program administration. The enacted state budget in June 2024 significantly reduced ATP Cycle 7 funding, one of the funding sources for the SCP-ATS as mentioned above. Therefore, the program anticipates awarding between $6.3 million to $8.2 million , with up to $700,000 available for planning projects benefiting disadvantaged communities and a minimum of $5.6 million set aside for quick-build projects. SCAG will allocate funding for selected projects based on the eligibility of each funding source and the applicant’s readiness.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 10 B) FUNDING ALLOCATION FOR AWARD RECIPIENTS
Awards and projects shall be primarily managed by SCAG and implemented through its consultants, except the quick-build project implementation that will be managed by grantees in coordination with SCAG. SCAG shall manage the administrative activities associated with requesting funding allocation from the California Transportation Commission (CTC) for ATP funding and from the Federal Highway Administration (FHWA) for SS4A funding, procuring a consultant team, passing through funding for quick- build implementation, and providing all necessary reporting and documentation required by CTC, Caltrans, and FHWA.
Recipients of 2024 SCP-ATS awards are expected to enter into a Memorandum of Understanding (MOU) with SCAG for technical assistance, which shall identify funding sources for the award and memorialize roles and responsibilities for each party, including but not limited to identifying a project manager for each party, providing guidance, cooperation and approvals as necessary, and assuming responsibility for a timely use of funds. MOUs for quick-build projects will also serve to pass through funds for quick-build implementation.
Recipients shall be the implementing agency for environmental approval(s) and responsible for documentation of environmental clearance or categorical exemption under the California Environmental Quality Act (CEQA) and under the National Environmental Policy Act (NEPA) for federally funded projects.
Funding shall be contingent on recipients securing environmental clearance.
Community/Areawide Plan projects shall only be eligible for technical assistance. Quick -Build Projects shall be eligible for technical assistance and pass through funds; pass through funds shall only be used for construction.
C) ELIGIBLE COSTS
SCAG uses cost principles outlined in 2 CFR Part 200 Subpart E and the ATP Cycle 7 Guidelines (Attachment A) to determine reasonable, allocable, and allowable costs. Award recipients are required to adhere to these requirements. Eligible costs include staff salaries, fringe, indirect costs (for ATP funding, the fringe and indirect cost rates require Caltrans approval and for SS4A, approved rates by a federal cognizant agency may be required), consultant/contractual services, and other direct costs. These costs and others not listed here are subject to review and approval by SCAG staff.
Recipients of the 2024 SCP-ATS awards claiming reimbursement for indirect costs and/or fringe benefits cost must have the current rates approved in the Negotiated Indirect Cost Rate Agreement (NICRA) with its federal cognizant agency. In absence of the NICRA, recipients may elect the applicable de minimis indirect cost rate that is applicable at the time of award and must annually complete a certification form provided by the SCAG Project Manager to confirm the eligibility and compliance with Title 2 Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards. The eligibility of the indirect cost and/or fringe benefits cost is subject to review and applicable funding guidelines and requirements. For the ATP funding, Caltrans prior approval is required for the fringe benefits and indirect cost rates; see “Local Government Agency Indirect Cost Review” on the Caltrans Internal Audits Office webpage. For SS4A, please see the 2 CFR 200.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 11 D) MATCH REQUIREMENTS
There are no match requirements for projects proposed through the SCP-ATS. Applicants, especially those with projects that exceed the respective project type funding caps, are encouraged to provide matching funds.
V. Application Process
As noted above, applicants may apply for more than one project type and may submit multiple applications, which are available on the SCAG SCP-ATS website. Applicants do not need a board resolution in order to apply, but applicants will be required to submit a supporting resolution from the elected body or a letter of intent in support of the project from the appropriate executive officer prior to receiving funding. Please contact SCAG staff (see section VI) if the project includes multiple components or if any other support is needed in identifying the proper application to use for a project application.
A) APPLICATIONS
Applications will be accepted via an online form. Application workshops will be scheduled for summer 2024, to review project types, the application process, and address any questions. For more information and registration/details for the workshops, please see the SCAG SCP-ATS website. Applications must be submitted online by September 27, 2024.
Automatic Consideration of Non-Selected Statewide ATP Applications Community/Areawide Plans and Quick-Build projects from the SCAG region submitted to the statewide ATP Call for Applications but not selected for funding will also be considered in the 2024 SCP -ATS selection process. These applications will be automatically considered, and applicants do not need to indicate they want to be considered for the SCP-ATS. These applications will not be re-scored and the initial score given in the statewide ATP competition will be used to rank against projects submitted through the SCP-ATS Call for Applications. Please see the state ATP website for more information about the application process and deadlines. Interested applicants are welcome to contact SCAG staff (see section VI) to discuss statewide ATP applications as well.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 12 B) SCORING RUBRIC & CRITERIA
Each project type is evaluated by six scoring criteria: Mobility, Safety Benefit, Public Health, Disadvantaged Communities, Public Participation, and Cost Effectiveness. Application questions vary by project type. The potential points to be awarded for responses to each question, by project type, are noted in each application.
Scoring Criteria Points
Mobility 25
Safety Benefit 35
Public Health 10
Disadvantaged Communities 10
Public Participation 15
Cost Effectiveness 5
Total 100 Points
C) EVALUATION PROCESS
A minimum of six evaluation teams, one per county, will be established to review, score and rank applications submitted to the 2024 SCP-ATS; counties receiving a large volume of applications may require multiple evaluation teams. Projects will compete and be ranked against other projects within their respective county. Final awards will be based on application score, geographic distribution across the region, and funding eligibility. Following grant award announcements, unsuccessful applicants are encouraged to meet with SCAG staff to obtain feedback on opportunities to improve their applications for future grant cycles. Quick-build applications not selected for award may be placed on a contingency list in the event that additional funding is made available.
D) RISK ASSESSMENT
Prior to entering into an MOU to receive funding from SCAG, each selected applicant will be subject to a risk assessment as required by 2 CFR 200.206 in accordance with SCAG’s Subrecipient Monitoring Policies and Procedures. SCAG may evaluate the risks to the program imposed by each applicant to assess the applicant’s ability to manage award funds pursuant to the requirements prescribed in the applicable funding guidelines. In some circumstances, special grant conditions may be imposed to mitigate anticipated risks. Each applicant may be required to provide documentation to SCAG for this evaluation.
E) IN-KIND CONTRIBUTIONS
Prior to entering into an MOU to receive funding from SCAG, each selected applicant may be required to specify the amount of staff time to be spent on the project. The enacted state budget in June 2024 significantly reduced ATP Cycle 7 funding, which resulted in a significant reduction to SCAG’s ATP regional SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 13 July 8, 2024
SCP-ATS Call for Applications Opens
Date
2024 SCP-ATS Milestone
Final 2024 SCP-ATS Award Announcements* June 26-27, 2025 funds that were leveraged as local match for SCAG’s SS4A grant. To maintain the SS4A funding, quick - build project awardees may be required to document project staff time that is being leveraged, such as attending project check-in meetings, coordinating with agency departments, and other project tasks. This awardee staff time, which is already taking place to support project management and delivery, may be leveraged as an in-kind contribution to help fulfill the local match requirements of SCAG’s SS4A grant.
Awardees will receive templates from SCAG to comply with SS4A requirements.
VI. Schedule
The following schedule outlines key dates for the 2024 SCP-ATS. These dates are subject to change; the Sustainable Communities Program webpage will have the latest dates. 2024 SCP-ATS Key Dates
July 25, 2024
*Projects selected to receive ATP funding are subject to approval by the SCAG Regional Council and California Transportation Commission (CTC) as part of the adoption of the complete 2025 Regional ATP. In addition, projects receiving ATP funding will be subject to the programming and allocation process, requirements, and schedule of the CTC.
SCAG Regional Council consideration for 2024 SCP-ATS projects is anticipated on December 5, 2024 followed by CTC action in June 2025.
A) TIMELY USE OF FUNDS/TIME EXTENSIONS
A project initiation schedule and expectations regarding the period of performance will be determined within three months of project award announcements, and will be based on project complexity, funding source, and SCAG staff capacity. In certain cases, projects may receive a notice to proceed two to three years after the project award announcements, such as if ATP funds are allocated in the latter part of the Cycle 7 ATP funding cycle (FY25/26 to FY28/29). Once the project schedule has been established, extensions will be considered on a case-by-case basis. Extensions and scope changes must be requested in letter format. All requests must include an explanation of the issues and actions the agency has taken to correct the issues. All extensions will be contingent on funding availability and the program requirements of the funding source assigned to the project when awarded. SCAG intends all selected projects to be completed in a timely manner and requires that applicants coordinate internal resources to ensure timely completion of the projects.
SCP-ATS Application Workshops
August 7, 2024
SCP-ATS Call for Applications Deadline September 27, 2024 SCAG Regional Council Approval of the 2024 SCP– December 5, 2024 ATS Application Projects*
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 14 VII. Contact Information
Questions regarding the SCP-ATS project types, applications, or application process should be directed to:
Rachel Om
Senior Regional Planner
Telephone: (213) 630-1550
Email: [email protected]
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 15 Attachment A: ATP Cycle 7 Guidelines
Please see: 2025 Active Transportation Program Cycle 7 Guidelines.
SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 16 Attachment B: ATP Quick-Build
Supplemental Guidance
Please see: Active Transportation Program Quick-Build Supplemental Guidance SCAG 2024 SCP Active Transportation and Safety Amended Program Guidelines August 2024 17 Attachment C: Allowable Direct Costs
SCAG uses cost principles outlined in 2 CFR Part 200 Subpart E and the ATP Cycle 7 Guidelines (Attachment A) to determine reasonable, allocable, and allowable costs. The procurement of goods and services are subject to 2 CFR Part 200 and applicable funding guidelines. • Advertisement costs. Including the purchase of advertising media to support program outreach. • Compensation—personnel services. Including wages and salaries. • Compensation—fringe benefits. Including, but not limited to, costs of leave, employee insurance, pensions, and unemployment benefit plans.
• Professional service costs. Including costs of professional and consultant services. • Publication and printing costs. Including costs for distribution and general handling of electronic and print media.
• Transportation costs. Including costs for delivery of items and/or equipment • Contractual Services. Including professional services necessary to complete the proposed project.
• Travel. Including transportation, food and lodging that meet the Travel Reimbursement policies established by CalHR.
• Supplies or services. Including printed material, translation and interpretation, supplies or services cost, excluding equipment
Please note: allowable indirect costs include an approved negotiated rate by a federal cognizant agency or a de minimis rate in accordance with 2 CFR Part 200.
These costs and others not listed here are subject to review and approval by SCAG staff.
Item Number: 14
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Acceptance of Roadway and Access & Maintenance Easement Deeds for the Bear Valley Road Bridge Over Mojave River Rehabilitation and Widening Project Recommendation:
That the Honorable City Council:
(1) Accept a Roadway Easement Deed from Victor Valley Community College District for the Bear Valley Road Bridge Over Mojave River Rehabilitation and Widening Project;
(2) Accept an Access & Maintenance Easement Deed from Victor Valley Community College District for the Bear Valley Road Bridge Over Mojave River Rehabilitation and Widening Project; and
(3) Authorize the City Manager to execute the easement deeds on the City’s behalf.
Fiscal Impact:
There is no impact associated with this item.
Strategic Plan Goal:
This item aligns with “Goal E Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026 by accepting easement deeds associated with the planned widening and rehabilitation of the Bear Valley Road Bridge crossing the Mojave River. The proposed project will improve the level of service to motorists and pedestrians crossing the Mojave River by utilizing the Bear Valley Road Bridge.
Background:
The Town of Apple Valley is the lead agency for a multi-jurisdiction capital improvement project titled the Bear Valley Road Bridge Over Mojave River Rehabilitation and Widening Project. The project planning was initiated following the findings of a Caltrans Bridge Inspection Report, which found the bridge to be structurally deficient (including the deck, joints, and foundation) and functionally obsolete (due to narrow travel lanes and the 4 0
6 9
absence of shoulders). The planned rehabilitation and widening project will include road upgrades such as six-standard width lanes, shoulders, a median, two sidewalks, a Class 1 bike path, drainage improvements, and utility relocations. This project involves collaboration among several organizations. As a result, the Town of Apple Valley has been working closely with Dokken Engineering (the design consultant), Caltrans, San Bernardino County Flood Control, City of Victorville, City of Hesperia along with various regional and federal agencies, utility companies and private property owners.
The proposed infrastructure improvements within the City of Victorville will help to accommodate the bridge widening at the westerly approach of Bear Valley Road. These improvements will include road widening, pavement rehabilitation, and shoulder work.
The shoulder work on the northerly side of the road will include the construction of a curb & gutter, a sidewalk, a curb ramp, and the modification of the traffic signal at the northeast corner of Bear Valley Road and Mojave Fish Hatchery Road. Please see the attached Vicinity Map (Attachment A) for the location of the proposed improvements. The City Council approved the City’s share of the cost for the proposed improvements during the February 20, 2024 meeting, when they also approved the Mid-Year Budget and the Amendment Request to the 2023-2024 revised Fiscal Budget.
Discussion:
The proposed improvements within the City of Victorville require additional Public Right- of-Way and an Access & Maintenance Easement for future operations and maintenance of the public improvements.
As the lead agency for the project, the Town of Apple Valley worked with the Victor Valley Community College District (VVCCD) to obtain both the Roadway Easement Deed (Attachment B) and the Access & Maintenance Easement Deed (Attachment C). The Roadway Easement Deed is required for the construction of the improvements and the Access & Maintenance Easement Deed will allow for the City’s Public Works Department to maintain the public improvements once construction has been completed. At the Town of Apple Valley’s April 8, 2025 Town Council Meeting, the Town Council approved a Purchase and Sale Agreement for the abovementioned easement deeds with VVCCD.
It is staff’s recommendation that the City Council accept the Roadway Easement and the Access & Maintenance Easement Deeds from Victor Valley Community College District for the Bear Valley Road Bridge Over Mojave River Rehabilitation and Widening Project; and Authorize the City Manager to execute the easement deeds on the City’s behalf.
Staff is available for any questions Council may have.
Attachments: A. Vicinity Map
B. Roadway Easement
C. Access & Maintenance Easement
ATTACHMENT A
ATTACHMENT B
ROADWAY EASEMENT DEED
This Roadway Easement Deed (“Easement Deed”) is made and entered into as of , 2025, by and between the Victor Valley Community College District (hereinafter referred to as “District” or “Grantor”), and the City of Victorville (“Grantee”), each of which may also be identified individually herein as a “Party” or collectively as the “Parties.” WHEREAS, the District is the owner of that real property located in the City of Victorville, County of San Bernardino, State of California, and identified by Assessor’s Parcel Number 0482-022-06 (the “Property”);
WHEREAS, the Grantee has requested a permanent, non-exclusive roadway easement for public purposes, including but not limited to, public street, sidewalk, bike and multi-use path access, curbs, gutters, sewer, drainage and public ingress and egress over, on, under, along and across that certain portion of the Property more particularly described in the legal description attached hereto as Exhibit “A” and depicted on the drawing attached hereto as Exhibit "B 99 (hereafter, the “Easement Area”) subject to the conditions set forth herein. All Exhibits, including Exhibit “C” as later referenced herein, are incorporated into this Easement Deed as though completely set forth herein.
NOW, THEREFORE, in consideration of the mutual promises set forth herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
l.
2. Grant of Roadway Easement. The Grantor hereby grants and conveys to the Grantee, a permanent, non-exclusive roadway easement for public purposes, including but not limited to, public street, sidewalk, bike and multi-use path access, curbs, gutters, sewer, drainage, and public ingress and egress over, on, along and across the Easement Area totaling 11,072 sq. ft / 0.254 acres (“Roadway Easement”), together with the right, privilege and authority, within said Easement Area, to grade, excavate for, install, replace, relocate, resurface, pave, repave, inspect, operate, patrol, maintain, use and protect any and all facilities and appurtenances, as Grantee shall from time to time elect, for roadway, access, utilities and drainage control purposes, on the terms and conditions set forth below.
Conditions of Grant.
The Roadway Easement is granted on the conditions set forth in this agreement between the Grantor and Grantee, including, but not limited to the following conditions:
a.
b.
The Roadway Easement at its widest point is 24 feet in width and at its narrowest point it is 6 feet in width as noted in Exhibit “A” and Exhibit “B”. The Grantee is not permitted to enlarge or increase or otherwise modify the size of the Easement Area without the written consent of the Grantor.
Grantor will retain the use of, and access to, the Easement Area, including the surface area and the ground below it, but only to the extent that such use and access is compatible with and does not unreasonably interfere with the purposes and uses granted to Grantee under this Roadway Easement Deed.
1 C.
d.
e.
f.
8. h.
No use or improvement by Grantor can unreasonably interfere with or endanger, in the opinion of Grantee, the operation or maintenance of its Roadway Easement or any part thereof, or Grantee’s ready access to Roadway Easement, or any of the rights herein granted to Grantee.
Grantee shall be wholly responsible for any improvements, hardscaping, or landscaping installed on the Roadway Easement by Grantee. Any improvements, hardscaping or landscaping installed on the Roadway Easement shall not create any safety concerns or dangerous or hazardous conditions.
Grantee shall keep the Easement Area free from explosives, combustible material, and any and all other hazards or obstructions of any kind caused by Grantee.
Grantee shall not create or contribute to a dangerous or hazardous condition or a nuisance or commit a waste on the Easement Area.
Grantor agrees to inform any potential purchasers or lessors of the Property about the use restrictions on the Easement Area.
All costs of operation and maintenance of the Roadway Easement shall be borne by Grantee.
Grantee acknowledges that Grantor may decide to lease/sell a portion of the Property or Easement Area for commercial development that is compatible with the terms of this Easement Deed and does not interfere with Grantee’s rights hereunder.
Grantee acknowledges that such development may include, but is not limited to, the construction of driveways, and vehicle and pedestrian ingress and egress access points from Bear Valley Road onto the Property through the Easement Area as well as construction of commercial buildings and accessory parking. For this purpose.
Grantor has reserved the right to potentially install a standard commercial paved driveway, driveway approach and pedestrian walking paths within the hatched area depicted on Exhibit “C” (“Reserved Access Corridor”). Grantee warrants that its use of this Easement will not create an impediment to securing commercial driveway access off of Bear Valley Road. Other than as specified in Grantee's rights under this Easement Deed and the Access and Maintenance Easement Deed being executed concurrently herewith, the Grantor shall not be limited from carrying out such commercial development, or otherwise selling or leasing the Property for others to do the same.
3. Term. This Easement Deed shall become effective upon recordation and shall continue in full force and effect in perpetuity, unless this Easement Deed is amended, modified, or terminated by an agreement executed, acknowledged, and recorded by the Parties hereto (or their successors and assigns).
4. Easement As-Is. The Easement Area is conveyed by the Grantor to the Grantee, and the Grantee hereby agrees that this Roadway Easement permitting use of the Easement Area is conveyed to the Grantee, AS IS, WHERE IS, and WITH ALL FAULTS, and that the
GRANTOR MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, 2 EXPRESS OR IMPLIED (INCLUDING THOSE IMPLIED BY THE TERMS “GRANT,” “CONVEY,” OR “DEED,” OR THOSE IMPLIED BY ANY OTHER TERM HEREIN),
OR ARISING BY OPERATION OF LAW WITH RESPECT TO THE TITLE,
MAINTENANCE, REPAIR OR CONDITION OF THE EASEMENT AREA,
INCLUDING, WITHOUT LIMITATION: (i) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY; (ii) ANY IMPLIED OR EXPRESS WARRANTY OF HABITABILITY; (iii) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (iv) ANY IMPLIED OR EXPRESS
WARRANTY OF CONFORMITY TO STATUTES, CODES, REGULATIONS, DRAWINGS, PLANS OR SPECIFICATIONS; (v) ANY IMPLIED OR EXPRESS
WARRANTY OF PRIORITY OVER ANY DEEDS OF TRUST, GROUND LEASES OR
OTHER ENCUMBRANCES (INCLUDING, WITHOUT LIMITATION , CLAIMS BY
THIRD PARTIES OF RIGHTS TO A PRESCRIPTIVE EASEMENT IN THE EASEMENT AREA); AND (vi) ANY CLAIM FOR DAMAGES BECAUSE OF
DEFECTS, WHETHER LATENT OR PATENT, KNOWN OR UNKNOWN, WITH
RESPECT TO THE EASEMENT AREA, IT BEING THE EXPRESS INTENTION OF
THE PARTIES THAT THE EASEMENT AREA BE CONVEYED TO, AND
ACCEPTED BY, GRANTEE IN ITS PRESENT CONDITION AND STATE OF REPAIR.
5. Construction and Maintenance. All work performed in the Easement Area and any structures or improvements constructed thereon or therein must comply with applicable federal and state statutes, codes, standards and regulations and local laws, codes, ordinances, standards, and regulations and comply with industry standards and best construction practices. Grantee shall use due care in the construction, operation, and maintenance of the Roadway Easement. Grantee will, at its sole cost and expense, maintain the Roadway Easement, and every aspect thereof, in good condition and repair at all times.
Grantee shall maintain the Easement Area to be clear and free from any trash, rubbish, brush, debris, waste, weeds, and any Hazardous Materials as defined herein.
Grantee at its sole cost and expense will repair any damage to the Property or the Easement Area that arises from its use of the Easement Area.
6. Third Party Indemnity. Grantee agrees to indemnify, defend (by counsel reasonably acceptable to the Grantor), and hold harmless the Grantor, and its Board of Trustees, officers, employees, agents, contractors, and representatives from and against any and all third party claims, demands, suits, proceedings, judgments, fines, penalties, encumbrances, liens, damages of any type whatsoever (whether foreseeable or unforeseeable), costs and expenses (including, without limitation, any litigation expenses and experts' or attorneys' fees), liabilities, or losses (collectively, the "Liabilities"), to the extent arising out of or in connection with or relating to:
3 a.
b.
c.
d.
e.
The use of the Easement Area by the Grantee or “Grantee’s Affiliates” which is defined as Grantee’s contractors, subcontractors and consultants or any similar retained agents or representatives;
The installation of, work performed on, and the maintenance of, the Roadway Easement, by Grantee or Grantee’s Affiliates;
The acts or omissions of the Grantee or Grantee’s Affiliates; The non-performance, breach, or violation by Grantee or Grantee’s Affiliates of any term or condition of this Easement Deed; and/or
Any handling of Hazardous Materials (as hereinafter defined) by the Grantee or Grantee’s Affiliates, or the presence or release of Hazardous Materials in, on or under the Easement Area caused or contributed to by the Grantee or Grantee’s Affiliates.
(i) For the purposes of this Easement Deed, “Hazardous Materials” means each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified as hazardous or toxic under any applicable environmental law or regulation.
The aforesaid indemnity obligations shall not apply if the Liabilities arise out of the sole active negligence or willful misconduct of the Grantor. Grantee will not be held liable, nor will Grantee be required to indemnify Grantor for Liabilities arising from any presence or release of Hazardous Materials located on, in, or under the Easement Area which occurred prior to the date this Easement Deed was recorded.
7. Release. The Grantee hereby releases the Grantor, and its Board of Trustees, officers, employees, agents, contractors, consultants, invitees, representatives, successors, and assigns, from any and all Liabilities to the extent arising out of or in connection with or relating to:
a.
b.
c.
d.
e.
The use of the Easement Area by the Grantee;
The work performed on, and the maintenance of, the Roadway Easement; The acts or omissions of the Grantee;
The non-performance, breach, or violation by Grantee of any term or condition of this Easement Deed; and/or
Any handling of Hazardous Materials (as hereinabove defined) by the Grantee or the presence or release of Hazardous Materials in, on or under the Easement Area caused or contributed to by the Grantee.
4 The aforesaid release shall not apply if the Liabilities arise out of the sole active negligence or willful misconduct of the Grantor. Grantee will not be held liable, nor will Grantee be required to release Grantor for any Liabilities arising from any presence or release of Hazardous Materials located on, in, or under the Easement Area which occurred prior to the date this Easement Deed was recorded.
8. Insurance. The Grantee represents that it carries, will continue to carry, and will ensure that Grantee’s Affiliates carry, commercial general liability insurance in an amount not less than $5,000,000 per occurrence for bodily injury and property damage and $10,000,000 annual aggregate for the entire duration of this Easement Deed. Commercial Automobile Liability Insurance shall have limits of not less than $2,000,000 per accident. This insurance must cover liability arising out of or in connection with the operation, use, loading, or unloading of a motor vehicle assigned to or used in connection with work to be performed on the Easement Area including, without limitation, owned, hired, and non owned motor vehicles.
In lieu of the foregoing, Grantee represents that it is self-insured and that its self insurance meets or exceeds the insurance requirements set forth above. Grantee shall require and verify that all Grantee’s Affiliates obtain and maintain insurance meeting all requirements stated in the foregoing paragraph and Grantee shall ensure that Grantor is an additional insured on insurance required from Grantee’s Affiliates.
9. Successors and Assigns. This Easement Deed will be binding on the Parties and their respective successors and assigns. In no event may the Grantee sell, transfer, assign or encumber the rights or obligations conveyed by this Easement Deed or the Grantee's interest under this Easement Deed without the consent of Grantor which consent shall not be unreasonably withheld.
10. Breach, Restoration, and Remedies.
a.
b.
Injunctive and Other Relief: The Parties further intend that, should any Party undertake, or cause to be undertaken, any activity in violation of this Easement Deed, or refuse after reasonable notice from the other Party to stop any activity in violation of this Easement Deed, then the other Party will have the right to obtain injunctive relief or writs from courts of competent jurisdiction in the County of San Bernardino, State of California, to stop any prohibited activity. The Parties will have the right to seek temporary restraining orders, preliminary injunctions, and similar provisional, equitable relief in a court of competent jurisdiction, provided that the Party seeking such relief has: (i) determined in good faith that the breach or threatened breach requires such immediate relief; and (ii) given the other Party notice and an opportunity to cure such breach or threatened breach.
Delay in Enforcement: Enforcement of the terms and provisions of this Easement Deed will be at the discretion of the Grantor or the Grantee. Any forbearance on behalf of the Grantor or the Grantee to exercise its rights hereunder in the event of any breach by the other Party or its respective assigns or successors will not be 5 deemed or construed to be a waiver of that Party's rights hereunder in the event of any subsequent breach.
11. Liens. The Grantee will ensure that no lien is placed upon the Easement Area or the Property as a result of its activities within the Easement Area or that of Grantee’s Affiliates.
If such a lien is placed upon the Easement Area or the Property, the Grantee will immediately cause it to be removed at the Grantee’s sole cost and expense.
12. Miscellaneous.
a. No Third-Party Beneficiaries: The Parties agree that no governmental agency, person, or entity other than the Parties themselves will have the right to enforce any of the terms or provisions of this Easement Deed, it being intended that there be no third-party beneficiaries of this Easement Deed.
b. Governing Law: This Easement Deed will be governed by and construed in accordance with California law.
c. Entire Agreement: This Easement Deed sets forth the entire agreement and understanding between the Parties with respect to the subject matter of this Easement Deed.
ci. Attorneys' Fees and Enforcement Costs of Suits: In the event of any action or proceeding between the Parties to enforce any provision of this Easement Deed the losing Party will pay to the prevailing Party all costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred in such action and in any appeal in connection therewith by such prevailing Party. e. Notices: All notices, requests, demands, or other communications under this Easement Deed will be in writing and notice will be sufficiently given for all purposes when provided as follows:
1. Personal Delivery: When personally delivered to the recipient, notice is effective upon delivery;
n. First Class Mail: When mailed first class to the last address of the recipient known to the Party giving notice: notice is effective after three (3) mail delivery days of being deposited in a United States Postal Service office or mailbox;
in. Certified Mail: When mailed by certified mail, with return receipt requested: notice is effective upon receipt, if delivery is confirmed by a return receipt;
IV. Overnight Delivery: When delivered by an overnight delivery service, with charges prepaid or charged to sender's account: notice is effective upon delivery, if delivery is confirmed by the delivery service; or 6 f.
In all cases where notice is required a courtesy email notice will also be provided to the individuals identified below.
In the case of notifications to the Parties, addresses for purpose of giving notice hereunder are as follows:
To Grantor:
With a copy to:
To Grantee:
With a copy to:
Victor Valley Community College District
Attn: Eric Vreeman VP Administrative Services
18422 Bear Valley Road
Victorville, California 92395
[email protected]
Telephone: (760) 245-4271
Estela Wansten, Executive Assistant
18422 Bear Valley Road
Victorville, California 92395
[email protected]
City of Victorville
Attn: Fredy Bonilla, City Engineer
14343 Civic Drive
Victorville, California 92392
[email protected]
Telephone: 760-955-5170
Green de Bortnowsky, LLP
Attn: Andre de Bortnowsky
Victorville City Attorney
30077 Agoura Court, Suite 210
Agoura Hills, CA 91301
[email protected]
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the Party to be notified will be deemed effective as of the first date the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or overnight delivery service. Each Party must provide advance written notice to the other of any change to its contact information (i.e., address, telephone number, or email address).
Modification; Severability; Waiver; Survival. This Easement Deed may not be modified or altered except in writing and signed by both Parties (or their successors and assigns). If any part of this Easement Deed is found to be in conflict with applicable laws or regulations, that part will be inoperative, null, and void insofar as it is in conflict; however, the remainder of the Easement Deed will remain in full 7 force and effect. The failure by one Party to enforce or require the other Party's full compliance with the terms and provisions of this Easement Deed will not constitute a waiver of its right to do so in the future, nor will it release the other party from its responsibilities under this Easement Deed. A Party's consent to or approval of any act by the other Party, which act requires the first Party's consent or approval, will not be construed to waive or render unnecessary the first Party's consent to or approval of subsequent acts. A waiver of rights under this Easement Deed will only be valid if it is clearly set forth in writing. The covenants, agreements, and indemnities of the Parties set forth in this Easement Deed shall survive any termination of this Easement Deed.
8. No Fee Interest Transferred. Nothing in this Easement Deed shall be construed as transferring any fee interest in the Easement Area or the Property to the Grantee. [END OF PAGE - SIGNATURE PAGE FOLLOWS]
8 IN WITNESS WHEREOF, the Parties have executed this Easement Deed on the dates set forth below, but this Easement Deed is effective as of the date identified in Section 3 above.
VICTOR VALLEY COMMUNITY COLLEGE
DISTRICT
By:
Name:
Title:
Daniel Walden, Ph.D.
SUPERINTENDENT/PRESIDENT
Date:
CITY OF VICTORVILLE
By:
Name:
Title:
Date:
ATTEST:
By:
Name:
Title:
Date:
APPROVED AS TO FORM:
By:
Name:
Title:
Date:
1210-102/7171598.1
9 ALL CAPACITY ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
OnMarch 12.20a8 before me,
Daniel alde
Maria Wheeler Public Notary ,
(Name and title of the officer) 4
personally appeared _ CIIC___ CCt__________ J______ (Name of person signing) who proved to me on the basis of satisfactory evidence to be the person(s) , , the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized whose name(s) is/are subscribed to
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
I2
Maria D. Wheeler
COMM. #2441827
) NOTARY PUBLIC ■ CALIFORNIA r
J SAN BERNARDINO COUNTY '
—My Comm. Expires Mar 20.2027
(Seal)
N
0 N
Rev. 01/01/2015
ALL CAPACITY ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On
(Date)
before me,
(Name and title of the officer)
personally appeared
(Name of person signing)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of officer
(Seal)
Rev. 01/01/2015
Exhibit “A” to Roadway Easement Deed
(Legal Description)
EXHIBIT “A
99 LEGAL DESCRIPTION
ROADWAY
APN: 0482-022-06
BEING A PORTION OF WEST %2 OF SECTION 36, TOWNSHIP 5 NORTH, RANGE 4 WEST, SAN
BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT OF SAID LAND APPROVED BY THE SURVEYOR GENERAL MARCH 19, 1856 AND DESCRIBED IN DEED IN BOOK 5775, PAGE 258, OFFICIAL RECORDS OF SAID COUNTY AND PARTICULARLY DESCRIBED AS FOLLOWS:
PARCEL 1
COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION:
THENCE NORTH 89°09'11" EAST ALONG THE SOUTH LINE OF SAID SECTION, A DISTANCE OF 436.56 FEET;
THENCE NORTH 00°50'49" WEST, A DISTANCE OF 15.00 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID DESCRIBED LAND AND THE TRUE POINT OF BEGINNING; THENCE NORTH 00°50‘49" WEST, A DISTANCE OF 17.00 FEET TO A POINT 32.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION;
THENCE NORTH 89°09'11" EAST, PARALLEL WITH AND 32.00 FEET NORTHERLY OF THE SOUTH LINE SAID SECTION, A DISTANCE OF 13.00 FEET TO THE WESTERLY LINE OF PARCEL 2 AS DESCRIBED IN DEED TO COUNTY OF SAN BERNARDINO, RECORDED MAY 31, 1961 IN BOOK 5444, PAGE 71 OF OFFICIAL RECORDS OF SAID COUNTY;
THENCE SOUTH 00°50‘49" EAST, A DISTANCE OF 17.00 FEET ALONG SAID WESTERLY LINE OF SAID PARCEL 2, TO THE SOUTHERLY LINE OF SAID DEED;
THENCE SOUTH 89°09'11" WEST ALONG THE SOUTHERLY LINE OF LAND DESCRIBED IN SAID DEED, A DISTANCE OF 13.00 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 221.00 SQUARE FEET, MORE OR LESS.
PARCEL 2
COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION;
THENCE NORTH 89°09'11" EAST, A DISTANCE OF 530.11 FEET ALONG THE SOUTH LINE OF SAID SECTION;
THENCE NORTH 00°50‘49" WEST, A DISTANCE OF 15.00 FEET TO A POINT ON THE SOUTHERLY
LINE OF LAND DESCRIBED IN SAID DEED ALSO BEING THE ON THE EASTERLY LINE OF PARCEL 2 AS DESCRIBED IN DEED TO THE COUNTY OF SAN BERNARDINO, RECORDED MAY 31, 1961 IN BOOK 5444, PAGE 71 OF OFFICIAL RECORDS OF SAID COUNTY AND THE TRUE POINT OF BEGINNING;
THENCE NORTH 20°30'19" WEST ALONG THE EASTERLY LINE OF SAID PARCEL 2, A DISTANCE OF 18.05 FEET TO A POINT 32.00 FEET NORTHERLY OF SAID SECTION LINE; THENCE NORTH 89°09'11" EAST, PARALLEL WITH AND 32.00 FEET NORTHERLY OF SAID SECTION LINE, A DISTANCE OF 60.41 FEET;
THENCE SOUTH 00°50‘49" EAST, A DISTANCE OF 8.00 FEET TO A POINT 24.00 FEET NORTHERLY OF SECTION LINE;
v:\plans\dokken engineering\add topo files\new legals\0482-022-06\apn 0482-022-06 roadway.doc
THENCE NORTH 89°09'11" EAST. PARALLEL WITH AND 24.00 FEET NORTHERLY OF SAID SECTION LINE, A DISTANCE OF 781.84 FEET;
THENCE SOUTH 00°50’49" EAST, A DISTANCE OF 18.00 FEET TO A POINT 6.00 FEET NORTHERLY OF SECTION LINE;
THENCE NORTH 89°09'11" EAST ALONG A LINE WHICH LIES 24.00 FEET NORTHERLY AND PARALLEL WITH SOUTHERLY LINE OF SAID SECTION LINE, A DISTANCE OF 353.72 FEET TO THE EASTERLY LINE OF LAND DESCRIBED IN SAID DEED;
THENCE SOUTH 00°50‘56" EAST ALONG THE EASTERLY LINE OF LAND DESCRIBED IN SAID DEED, A DISTANCE OF 6.00 FEET TO THE SOUTH LINE OF SAID SECTION; THENCE SOUTH 89o09'11" WEST ALONG THE SOUTH LINE OF SAID SECTION, A DISTANCE OF 401.49 FEET;
THENCE NORTH 00°50'49" WEST ALONG THE SOUTHERLY LINE OF LAND DESCRIBED IN SAID DEED, A DISTANCE OF 15.00 FEET;
THENCE SOUTH 89o09'11" WEST ALONG THE SOUTHERLY LINE OF LAND DESCRIBED IN SAID DEED. A DISTANCE OF 788.40 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 0.249 ACRES, MORE OR LESS.
SEE EXHIBIT “B” ATTACHED HERETO AND MADE APART HEREOF.
LUDWIG ENGINEERING ASSOCIATES, INC.
PREPARED BY ME OR UNDER MY SUPERVISION
A // / A660 2220020024
Glen L Ludwig, RCE 13191
3-01-2022
Date
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v:\plans\dokken engineering\add topo files\new legals\0482-022-06\apn 0482-022-06 roadway.doc
Exhibit “B” to Roadway Easement Deed
(Diagram of Easement Area)
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Exhibit “C” to Roadway Easement Deed
(Reserved Access Corridor)
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ATTACHMENT C
ACCESS AND MAINTENANCE EASEMENT DEED
This Access and Maintenance Easement Deed (“Access and Maintenance Easement Deed”) is made and entered into as of , 2025, by and between the Victor Valley Community College District (hereinafter referred to as “District” or “Grantor”), and the City of Victorville, a Municipal Corporation (“Grantee”), each of which may also be identified individually herein as a “Party” or collectively as the “Parties.” WHEREAS, the District is the owner of that real property located in the City of Victorville, County of San Bernardino, State of California, and identified by Assessor’s Parcel Number 0482-022-06 (the “Property”);
WHEREAS, the Grantee has requested a permanent, non-exclusive access and maintenance easement to access above ground public utilities and adjacent public utility easements, including the right to temporarily move equipment through a portion of the Property and the right to vehicular access on, over, along and across a portion of the Property; WHEREAS, the District wishes to grant the requested permanent, non-exclusive access and maintenance easement on, over, along and across that certain portion of the Property more particularly described in the legal description attached hereto as Exhibit “A” and depicted on the drawing attached hereto as Exhibit “B” (hereafter, the “Easement Area”) subject to the conditions set forth herein. All Exhibits, including Exhibit “C” and Exhibit “D” as later referenced herein, are incorporated into this Access and Maintenance Easement Deed as though completely set forth herein.
NOW, THEREFORE, in consideration of the mutual promises set forth herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. 2.
Grant of Access and Maintenance Easement. The Grantor hereby grants and conveys to the Grantee, a permanent, non-exclusive access and maintenance easement for the purpose of accessing and maintaining above ground public utilities and adjacent public utility easements, including the right to temporarily move equipment through the Easement Area and the right to vehicular access on, over, along and across the Easement Area totaling 7,091 sq. ft. / 0.16 acres (“Access and Maintenance Easement”) on the terms and conditions, set forth below.
Conditions of Grant.
The Access and Maintenance Easement is granted on the conditions set forth in this agreement between the Grantor and Grantee, including, but not limited to the following conditions:
a. The Grantee is not permitted to enlarge or increase the size of the Easement Area without the written consent of the Grantor.
1 b. Grantor reserves the right of full use and access of all surface areas and subsurface areas located within the Easement Area provided such uses do not substantially interfere with Grantee’s use of the Access and Maintenance Easement. Grantee agrees that Grantor’s improvement of the Easement Area surface with paved driveways, parking spaces, roadways, hardscape, sidewalks, or landscaping strips will not constitute substantial interference with Grantee’s use of the Access and Maintenance Easement.
c. Grantor reserves the right to permit others to use and/or occupy the Easement Area as long as such uses do not substantially interfere with Grantee’s use. d. Grantee’s use of the Access/Maintenance Easement shall include the right to enter the Easement Area through the primary access point on Bear Valley Road, as identified in Exhibit “C”. In the event that public roads and driveways are ultimately developed, Grantee may use such access routes as well. e. This grant does not include the right to construct improvements on the Easement Area or store materials or equipment on the Easement Area, including excavated soils, supplies or hazardous materials. The Easement Area may not be used as a staging area. Grantee’s use of the Easement Area is limited to accessing and maintaining above ground public utilities on the Easement Areas and accessing adjacent public utility easements.
f. Grantee shall keep the Easement Area free from explosives, combustible material and any and all other hazards or obstructions of any kind that are within its control.
Grantee shall not create or contribute to a dangerous or hazardous condition or a nuisance or commit a waste on the Easement.
8. Grantor agrees to inform any potential purchasers or lessors of the Property, or any portion thereof, about this Access and Maintenance Easement Deed. h. Grantee acknowledges that Grantor may decide to lease/sell a portion of the Property or Easement Area for commercial development that is compatible with the terms of this Access and Maintenance Easement Deed and does not interfere with Grantee’s rights hereunder. Grantee acknowledges that such development may include, but is not limited to, the construction of driveways, and vehicle and pedestrian ingress and egress access points from Bear Valley Road onto the Property through the Easement Area as well as construction of commercial buildings and accessory parking. For this purpose, Grantor reserves the right to potentially install a standard commercial paved driveway, driveway approach, and pedestrian walking paths within the hatched area depicted on Exhibit “D 99 (“Reserved Access Corridor”). Grantee warrants that its use of this Easement will not create an impediment to securing commercial driveway access off of Bear Valley Road. Other than as specified in Grantee's rights under this Access and Maintenance Easement Deed and the Roadway Easement Deed being executed and recorded concurrently herewith, the Grantor shall not be limited from carrying out 2 such commercial development, or otherwise selling or leasing the Property for others to do the same.
3. Term. This Access and Maintenance Easement Deed shall become effective upon recordation and shall continue in full force and effect in perpetuity, unless this Access and Maintenance Easement Deed is amended, modified, or terminated by an agreement executed, acknowledged, and recorded by the Parties hereto (or their successors and assigns).
4. Easement As-Is. The Easement Area is conveyed by the Grantor to the Grantee, and the Grantee hereby agrees that this Access and Maintenance Easement permitting use of the Easement Area is conveyed to the Grantee, AS IS, WHERE IS, and WITH ALL FAULTS, and that the GRANTOR MAKES NO REPRESENTATIONS OR WARRANTIES
WHATSOEVER, EXPRESS OR IMPLIED (INCLUDING THOSE IMPLIED BY THE TERMS “GRANT,” “CONVEY,” OR “DEED,” OR THOSE IMPLIED BY ANY OTHER
TERM HEREIN), OR ARISING BY OPERATION OF LAW WITH RESPECT TO THE
TITLE, MAINTENANCE, REPAIR OR CONDITION OF THE EASEMENT AREA, INCLUDING, WITHOUT LIMITATION: (i) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY; (ii) ANY IMPLIED OR EXPRESS WARRANTY OF HABITABILITY; (iii) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (iv) ANY IMPLIED OR EXPRESS
WARRANTY OF CONFORMITY TO STATUTES, CODES, REGULATIONS, DRAWINGS, PLANS OR SPECIFICATIONS; (v) ANY IMPLIED OR EXPRESS
WARRANTY OF PRIORITY OVER ANY DEEDS OF TRUST, GROUND LEASES OR
OTHER ENCUMBRANCES (INCLUDING, WITHOUT LIMITATION , CLAIMS BY
THIRD PARTIES OF RIGHTS TO A PRESCRIPTIVE EASEMENT IN THE EASEMENT AREA); AND (vi) ANY CLAIM FOR DAMAGES BECAUSE OF
DEFECTS, WHETHER LATENT OR PATENT, KNOWN OR UNKNOWN, WITH
RESPECT TO THE EASEMENT AREA, IT BEING THE EXPRESS INTENTION OF
THE PARTIES THAT THE EASEMENT AREA BE CONVEYED TO, AND
ACCEPTED BY, GRANTEE IN ITS PRESENT CONDITION AND STATE OF REPAIR.
5. Maintenance. All use of, or work performed in, the Easement Area must comply with applicable federal and state statutes, codes, standards and regulations and local laws, codes, ordinances, standards and regulations and comply with industry standards and best maintenance practices. Grantee shall use due care in the use of the Access and Maintenance Easement, in accessing and maintaining public utilities on the Easement Area and accessing adjacent public utility easements.
Grantee will, at its sole cost and expense, maintain the Access and Maintenance Easement in good condition and repair at all times. Grantee shall maintain the Easement Area to be clear and free from any trash, rubbish, brush, debris, waste, weeds, excess dust and any Hazardous Materials as defined herein, and in the same or similar condition it was upon entering into this Access and Maintenance Easement.
3 Grantee at its sole cost and expense will repair any damage to the Property or the Easement Area that arises from its use of, or its activities undertaken on, the Easement Area.
Grantee shall provide forty-eight (48) hours advance notification prior to performing any maintenance that requires heavy equipment or traffic barricades or similar obstructions to vehicular or pedestrian travel through the Easement Area. Notwithstanding the provisions of Section 12.e hereof, given the short lead time, the required advance notification provided under this paragraph will be considered sufficient when provided by telephone and email.
This notification requirement shall not apply in the event of an emergency.
6. Third Party Indemnity. Grantee agrees to indemnify, defend (by counsel reasonably acceptable to the Grantor), and hold harmless the Grantor, and its Board of Trustees, officers, employees, agents, contractors, and representatives from and against any and all third party claims, demands, suits, proceedings, judgments, fines, penalties, encumbrances, liens, injuries, damages of any type whatsoever (whether foreseeable or unforeseeable), costs and expenses (including, without limitation, any litigation expenses and experts' or attorneys' fees), liabilities, or losses (collectively, the "Liabilities"), to the extent arising out of or in connection with or relating to:
a.
b.
c.
d.
e.
f.
The acts or omissions of the Grantee or “Grantee’s Affiliates” which is defined as Grantee’s contractors, subcontractors and consultants or any similar retained agents or representatives ;
The work or activities performed on the Access and Maintenance Easement by Grantee or Grantee’s Affiliates;
The maintenance of any public utilities located on the Access and Maintenance Easement by Grantee or Grantee’s Affiliates;
The non-performance, breach, or violation by Grantee of any term or condition of this Access and Maintenance Easement Deed;
The Grantee’s exercise of rights or performance of obligations under this Agreement; or,
Any handling of Hazardous Materials as hereinafter defined by the Grantee or Grantee’s Affiliates, or the presence or release of Hazardous Materials in, on or under the Easement Area caused or contributed to by the Grantee or Grantee’s Affiliates.
(i) For the purposes of this Access and Maintenance Easement Deed, “Hazardous Materials” means each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified as hazardous or toxic under any applicable environmental law or regulation.
The aforesaid indemnity obligations shall not apply if the Liabilities arise out of the sole active negligence or willful misconduct of the Grantor. Grantee will not be held liable, nor 4 will Grantee be required to indemnify Grantor for Liabilities arising from any presence or release of Hazardous Materials located on, in, or under the Easement Area which occurred prior to the date this Access and Maintenance Easement Deed was recorded.
7. Release. The Grantee hereby releases the Grantor, and its Board of Trustees, officers, employees, agents, contractors, consultants, invitees, representatives, successors, and assigns, from any and all Liabilities to the extent arising out of or in connection with or relating to:
a.
b.
c.
d.
e.
The acts or omissions of the Grantee;
Any work or activities performed on the Access and Maintenance Easement by Grantee;
The maintenance of any public utilities located on the Access and Maintenance Easement by Grantee;
The non-performance, breach, or violation by Grantee of any term or condition of this Access and Maintenance Easement Deed;
Any handling of Hazardous Materials (as hereinabove defined) by the Grantee, or the presence or release of Hazardous Materials in, on or under the Easement Area caused or contributed to by the Grantee.
The aforesaid release shall not apply if the Liabilities arise out of the sole active negligence or willful misconduct of the Grantor. Grantee will not be held liable, nor will Grantee be required to release Grantor for any Liabilities arising from any presence or release of Hazardous Materials located on, in, or under the Easement Area which occurred prior to the date this Access and Maintenance Easement Deed was recorded.
8. Insurance. The Grantee represents that it carries and will continue to carry commercial general liability insurance in an amount not less than $5,000,000 per occurrence for bodily injury and property damage and $10,000,000 annual aggregate for the entire duration of this Access and Maintenance Easement Deed. Commercial Automobile Liability Insurance shall have limits of not less than $2,000,000 per accident. This insurance must cover liability arising out of or in connection with the operation, use, loading, or unloading of a motor vehicle assigned to or used in connection with work to be performed on the Easement Area including, without limitation, owned, hired, and non-owned motor vehicles.
In lieu of the foregoing, Grantee represents that it is self-insured and that such self insurance meets or exceeds the limits set forth above. Grantee shall require and verify that all Grantee’s Affiliates obtain and maintain insurance meeting all requirements stated in the foregoing paragraph and Grantee shall ensure that Grantor is an additional insured on insurance required from Grantee’s Affiliates.
5 9. Successors and Assigns. This Access and Maintenance Easement Deed will be binding on the Parties and their respective successors and assigns. In no event may the Grantee sell, transfer, assign, or encumber the rights or obligations conveyed by this Access and Maintenance Easement Deed or the Grantee's interest under this Access and Maintenance Easement Deed without the consent of Grantor which consent shall not be unreasonably withheld.
10. Breach, Restoration, and Remedies.
a. Injunctive and Other Relief: The Parties further intend that, should any Party undertake, or cause to be undertaken, any activity in violation of this Access and Maintenance Easement Deed, or refuse after reasonable notice from the other Party to stop any activity in violation of this Access and Maintenance Easement Deed, then the other Party will have the right to obtain injunctive relief or writs from courts of competent jurisdiction in the County of San Bernardino, State of California, to stop any prohibited activity. The Parties will have the right to seek temporary restraining orders, preliminary injunctions, and similar provisional, equitable relief in a court of competent jurisdiction, provided that the Party seeking such relief has: (i) determined in good faith that the breach or threatened breach requires such immediate relief; and (ii) given the other Party notice and an opportunity to cure such breach or threatened breach.
b. Delay in Enforcement: Enforcement of the terms and provisions of this Access and Maintenance Easement Deed will be at the discretion of the Grantor or the Grantee. Any forbearance on behalf of the Grantor or the Grantee to exercise its rights hereunder in the event of any breach by the other Party or its respective assigns or successors will not be deemed or construed to be a waiver of that Party's rights hereunder in the event of any subsequent breach.
11. Liens. The Grantee will ensure that no lien is placed upon the Easement Area or the Property as a result of its activities within the Easement Area or that of Grantee’s Affiliates.
If such a lien is placed upon the Easement Area or the Property, the Grantee will immediately cause it to be removed at the Grantee’s sole cost and expense.
12. Miscellaneous.
a.
b.
No Third-Party Beneficiaries: The Parties agree that no governmental agency, person, or entity other than the Parties themselves will have the right to enforce any of the terms or provisions of this Access and Maintenance Easement Deed, it being intended that there be no third-party beneficiaries of this Access and Maintenance Easement Deed.
Governing Law: This Access and Maintenance Easement Deed will be governed by and construed in accordance with California law.
6 C. Entire Agreement: This Access and Maintenance Easement Deed sets forth the entire agreement and understanding between the Parties with respect to the subject matter of this Access and Maintenance Easement Deed.
d. Attorneys' Fees and Enforcement Costs of Suits: In the event of any action or proceeding between the Parties to enforce any provision of this Access and Maintenance Easement Deed the losing Party will pay to the prevailing Party all costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred in such action and in any appeal in connection therewith by such prevailing Party.
e. Notices: All notices, requests, demands, or other communications under this Easement Deed will be in writing and notice will be sufficiently given for all purposes when provided as follows:
1. 11.
111.
IV.
Personal Delivery: When personally delivered to the recipient, notice is effective upon delivery;
First Class Mail: When mailed first class to the last address of the recipient known to the Party giving notice: notice is effective after three (3) mail delivery days of being deposited in a United States Postal Service office or mailbox;
Certified Mail: When mailed by certified mail, with return receipt requested: notice is effective upon receipt, if delivery is confirmed by a return receipt;
Overnight Delivery: When delivered by an overnight delivery service, with charges prepaid or charged to sender's account: notice is effective upon delivery, if delivery is confirmed by the delivery service; or In all cases where notice is required a courtesy email notice will also be provided to the individuals identified below.
In the case of notifications to the Parties, addresses for purpose of giving notice hereunder are as follows:
To Grantor: Victor Valley Community College District
Attn: Eric Vreeman VP Administrative Services
18422 Bear Valley Road
Victorville, California 92395
[email protected]
Telephone: (760) 245-4271
7 With copy to: Estela Wansten, Executive Assistant
18422 Bear Valley Road
Victorville, California 92395
[email protected]
To Grantee: City of Victorville
Attn: Fredy Bonilla, City Engineer
14343 Civic Drive
Victorville, California 92392
[email protected]
Telephone: (760) 955-5170
With copy to: Green de Bortnowsky, LLP
Attn: Andre de Bortnowsky
Victorville City Attorney
30077 Agoura Court, Suite 210
Agoura Hills, CA 91301
[email protected]
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the Party to be notified will be deemed effective as of the first date the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or overnight delivery service. Each Party must provide advance written notice to the other of any change to its contact information (i.e., address, telephone number, or email address).
f. Modification; Severability; Waiver; Survival: This Access and Maintenance Easement Deed may not be modified or altered except in writing and signed by both Parties (or their successors and assigns). If any part of this Access and Maintenance Easement Deed is found to be in conflict with applicable laws or regulations, that part will be inoperative, null, and void insofar as it is in conflict; however, the remainder of the Access and Maintenance Easement Deed will remain in full force and effect. The failure by one Party to enforce or require the other Party's full compliance with the terms and provisions of this Access and Maintenance Easement Deed will not constitute a waiver of its right to do so in the future, nor will it release the other Party from its responsibilities under this Access and Maintenance Easement Deed. A Party's consent to or approval of any act by the other Party, which act requires the first Party's consent or approval, will not be construed to waive or render unnecessary the first Party's consent to or approval of subsequent acts. A waiver of rights under this Access and Maintenance Easement Deed will only be valid if it is clearly set forth in writing. The covenants, agreements, and indemnities of the Parties set forth in this Easement Deed shall survive any termination of this Access and Maintenance Easement Deed. 8 8. No Fee Interest Transferred: Nothing in this Access and Maintenance Easement Deed shall be construed as transferring any fee interest in the Easement Area or the Property to the Grantee.
[END OF PAGE - SIGNATURE PAGE FOLLOWS]
9 IN WITNESS WHEREOF, the Parties have executed this Access and Maintenance Easement Deed on the dates set forth below, but this Access and Maintenance Easement Deed is effective as of the date identified in Section 3 above.
VICTOR VALLEY COMMUNITY COLLEGE
DISTRICT
Daniel Walden, Ph.D.
SUPERINTENDENT/PRESIDENT
By:
Name:
Title:
Date:
CITY OF VICTORVILLE
By:
Name:
Title:
Date:
ATTEST:
By:
Name:
Title:
Date:
APPROVED AS TO FORM:
By:
Name:
Title:
Date:
1210-102/7171451.1
10 ALL CAPACITY ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On Match 1, 2025
1 (Date)'
before me,
personally appeared Dahiel Walde
Mario heeler Pblic ,
(Name and title of the officer)
K
(Name of person signing)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of officer
N
P8:
Rev. 01/01/2015
Maria D. Wheeler
I| COMM. #2441827 ,.
7 NOTARY PUBLIC - CALIFORNIA r- SAN BERNARDINO COUNTY , "Y. comm. Expires Mar 20,2027 •
0 (Seal)
ALL CAPACITY ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On
(Date)
before me,
(Name and title of the officer)
personally appeared
(Name of person signing)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of officer
(Seal)
Rev. 01/01/2015
Exhibit “A” to Access and Maintenance Easement
(Legal Description)
EXHIBIT “A”
LEGAL DESCRIPTION
ACCESS AND MAINTENANCE
APN 0482-022-06
BEING A PORTION OF WEST % OF SECTION 36, TOWNSHIP 5 NORTH, RANGE 4 WEST, SAN
BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT OF SAID LAND APPROVED BY THE SURVEYOR GENERAL MARCH 19, 1856 AND DESCRIBED IN DEED IN BOOK 5775, PAGE 258, OFFICIAL RECORDS OF SAID COUNTY AND PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION:
THENCE NORTH 89°09'11" EAST, A DISTANCE OF 1046.32 FEET ALONG THE SOUTH LINE OF SAID SECTION;
THENCE NORTH 00°50'49" WEST, A DISTANCE OF 24.00 FEET TO A POINT 24.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION AND THE TRUE POINT OF BEGINNING; THENCE NORTH 45°10'39" EAST, A DISTANCE OF 151.22 FEET TO A POINT 129.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION;
THENCE SOUTH 89°09'11" WEST PARALLEL WITH AND 129.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION, A DISTANCE OF 79.00 FEET;
THENCE SOUTH 10°09‘06" EAST, A DISTANCE OF 68.01 FEET;
THENCE SOUTH 06°58'20" EAST, A DISTANCE OF 38.10 FEET TO A POINT 24.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION;
THENCE SOUTH 89°09‘11" WEST PARALLEL WITH AND 24.00 FEET NORTHERLY OF THE SOUTH LINE OF SAID SECTION, A DISTANCE OF 202.89 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 0.341 ACRES, MORE OR LESS.
SEE EXHIBIT “B” ATTACHED HERETO AND MADE APART HEREOF.
LUDWIG ENGINEERING ASSOCIATES, INC.
PREPARED BY ME OR UNDER MY SUPERVISION
Glen L Ludwig, RCE 13191 /
AoeorESSTo,
1-31-2022
Date
No. 13191
EXP. 3-31-23
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Exhibit “D” to Access and Maintenance Easement
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Item Number: 15
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
James Murawski, Airport Director
Subject:
Standard Sublease Agreement for Building 682C by and between the Southern California Logistics Airport Authority and Anduril Industries, Inc.
Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve entering into a Standard Sublease Agreement for Building 682C (“Agreement”), by and between the SCLAA and Anduril Industries, Inc., (“Anduril”); and
(2) Authorize the Executive Director to execute said Agreement.
Fiscal Impact:
The Agreement presented herein will generate approximately $655,134.80 in gross lease revenue over the initial term (May 01, 2025 – April 30, 2028). The table below outlines the fiscal impact of the initial 3 years of the Agreement.
FY 2024-25
May 25 – June 25
FY 2025-26
July 25 – June 26
FY 2026-27
July 26 – June 27
FY 2027-28
July 27 – April 28
$35,326 $213,015.78 $219,406.25 $187,386.77
A budget amount has been established in account 4501116A-45200 for fiscal year 2024- 2025 for the resulting revenue, therefore, no additional revenue appropriation is required with this action. Future appropriations for the subject Agreement will be considered at the time the annual budget is approved.
Strategic Plan Goal:
The City of Victorville Strategic Plan 2023-2026 identifies multi-year strategic goals and various strategies to work toward achieving those goals. Goal A fosters fiscal health 5 7
0 through disciplined long-term planning, cost control, increased revenues, and cost recovery.
Background:
Anduril Industries, Inc., is an American defense company that specializes in autonomous systems. It was founded in 2017 by inventor Palmer Luckey and a team of founders formerly with Palantir and SpaceX. Anduril raised $1.5 billion in their latest funding round, six months ago, from some of the most renowned investors in the global technology landscape, including: Andreessen Horowitz; Founders Fund; General Catalyst; Lux Capital; Thrive Capital; Valor Equity Partners; and Elad Gil, among others. As of February 2025, the company has a valuation of $14 billion. Moreover, the company is in discussions to raise additional capital that is expected to bring its market valuation to $28 billion.
Anduril states that at its core, it is a defense products company. Unlike most defense companies, Anduril does not sit idly waiting for its customers to tell them what they need.
Anduril identifies problems, and privately funds research and development while working to break into large programs of record and sells finished products off the shelf in order to get relevant technologies into the hands of warfighters as quickly and effectively as possible. Ideas are turned into deployed capabilities in months, not years, saving the government and taxpayers money along the way. Military veterans make up more than 20% of Anduril’s team and their defense experience is leveraged to ensure that the company’s products meet the needs of servicemen and women in the battlefield.
Anduril’s family of systems is powered by the proprietary Lattice OS, an artificial intelligence powered open operating system that brings autonomy to the Defense Department’s toughest missions. Lattice OS connects autonomous sensemaking and command and control capabilities with open, modular, and scalable hardware components for a layered family of systems approach. Some of the major systems that Anduril has deployed or publicly acknowledged to be developing are the Sentry Towers, Roadrunner, Ghost Shark XLAUV, Dive LDAUV, Altius and Fury.
Anduril announced plans to build a massive, 5 million square foot manufacturing facility called "Arsenal-1" in Pickaway County, Ohio, with a projected investment of nearly $1 billion, creating over 4,000 jobs by 2035. This project is considered one of the largest single job creation initiatives in Ohio history, with the state offering significant tax incentives to attract Anduril to the area, aiming to bolster the state's defense manufacturing capabilities.
When production begins next year, the company will start manufacturing three of its autonomous air systems products, Fury, Roadrunner and Barracuda, Anduril said in an email to Manufacturing Dive, a periodical. The company has plans to expand into other products as it builds out the plant and new facilities come online.
The facility at the Southern California Logistics Airport (“SCLA”) will support Anduril’s Group 5 autonomous air vehicle program, called Fury, a single engine jet drone. 5 7
0 Additionally, Andril will perform related independent research and development, including certain contracted efforts with other defense contractors.
Discussion:
Anduril became a tenant of the SCLA March 2024, when it leased Buidling 685C. Anduril expanded its footprint at the SCLA by leasing Buildings 868, 868A, 869 and 835 in March 2025, and looks to expand again by leasing Building 682C which is adjacent to 685C.
The Agreement will allow Anduril to grow its footprint at the SCLA to perform aircraft assembly, maintenance, calibration, storage, and preparation for testing in support of Anduril’s Group 5 autonomous air vehicle program, an autonomous jet powered aircraft.
Anduril is creating a hub for their research and development and flight testing at the SCLA.
The proposed Agreement for the Building 682C entails an initial term of three-years with a commencement date of May 1, 2025. The Agreement also contemplates one additional, three-year, option term. The Subleased Premises consist of Building 682C, which is comprised of hangar, office space, outdoor storage, vehicle parking and ramp space. Anduril has agreed to pay $17,663 per month with an annual 3% inflator. This amounts to the summation of Building 682C rent in the amount of $16,263 which is $1.50 per square foot; outside storage and vehicle parking space rent in the amount of $500 which is $.03 per square foot; ramp space rent in the amount of $900 which is $.01 per square foot. The rate for the hangar and office space is the highest rate the SCLA has for similar SCLA buildings. The storage, vehicle and ramp space is comparable with similar SCLA outdoor space.
Because the Standard Sublease Agreement will increase local employment, increase aircraft activity, increase operations, and produce a steady revenue stream, staff recommends that the Southern California Logistics Airport Authority Board approve the Standard Sublease Agreement with Anduril Industries, Inc., for Building 682C and authorize the Executive Director to execute said agreement. Such approval is being requested, subject to any minor, non-substantive modifications to the Sublease Agreement as approved by the Southern California Logistics Airport Authority Legal Counsel and the Southern California Logistics Airport Director.
Staff remains available for any questions or comments you may have.
JM/lf
Attachments: A. General Site Map
B. Standard Sublease Agreement for Building 682C
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SCLAA Standard Sublease Page 1 Anduril Industries, Inc. Bldg 682C
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
STANDARD SUBLEASE AGREEMENT
BUILDING 682C
This Sublease Agreement (the “Sublease”) is made this _____ day of__________, 2025, by and between the SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”), a California joint powers authority, (hereinafter referred to as “Sublessor”) and ANDURIL INDUSTRIES, INC. , a Delaware corporation (hereinafter referred to as “Sublessee”). Sublessor and Sublessee are sometimes referred to hereinafter individually as a “Party” and collectively as the “Parties.”
RECITALS
These Recitals are included to assist in interpreting this Sublease and to understand the basis upon which certain terms and conditions have been included. It is not intended, nor should it be construed, to supersede or amend the specific terms and conditions of this Sublease.
A. The United States Air Force (“Air Force”) and the Victor Valley Economic Development Authority (“the Authority”) have previously entered into certain Department of the Air Force Leases pertaining to portions of the former George Air Force Base, which is now known as the Southern California Logistics Airport (“SCLA”) (hereinafter the “Air Force Leases”).
B. The Authority has delegated its decision-making authority with respect to the SCLA to the Sublessor, who now has the authority to enter into transactions on behalf of the Authority.
C. The Air Force (“Grantor”) and the SCLAA (“Grantee”) have entered into certain Air Force Quitclaim Deed(s) (“Quitc laim Deed(s)”), which release and forever quitclaim to the Grantee all the real property described in such Quitclaim Deed(s), subject to the Covenants, Conditions and Restrictions set forth in the Quitclaim Deed(s).
D. Sublessee seeks to sublease from the Sublessor a portion of the property subject to the Air Force Leases (hereinafter the “Subleased Premises”).
E. Although many portions of the SCLA are subject to and governed by the Air Force Leases, some portions (which may include appurtenances, access/use rights, privileges and/or easements associated with the Subleased Premises) have been transferred from the Air Force to Sublessor by means of various deeds (hereinafter the “Airport Deeds”) and are subject to the provisions and conditions of such Airport Deeds.
SCLAA Standard Sublease Page 2 Anduril Industries, Inc. Bldg 682C
TERMS AND CONDITIONS
1. Subleased Premises. Subject to the terms and conditions herein contained, Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor certain property which is part of the SCLA, described as follows (the “Subleased Premises”):
a. A portion of that certain real property designated as Building 682C, comprised of approximately Ten Thousand Eight Hundred Forty-Two (10,842) square feet of hangar and office space, located at the SCLA at 18308 Readiness Street, Victorville, CA, and approxim ately Twelve Thousand Nine Hundred Thirty (12,930) square feet of adjacent outside storage and vehicle parking space, and approximately Fifty-Six Thousand Three Hundred (56,300) square feet of adjacent ramp space, together with the improvements thereon as depicted on Exhibit A, attached hereto and incorporated herein by this reference; and
b. all appurtenances, rights, privileges and easements in any way applicable thereto.
2. Term. The initial term of this Sublease shall be for a period of Three (3) years, (the “Initial Term”) commencing on May 1, 2025, (the “Sublease Commencement Date”) and expiring on April 30, 2028, (the “Sublease Expiration Date”) unless sooner terminated or extended as hereinafter provided. To the extent any of the leases or subleases referenced in Recital A hereof are terminated, and such lease or sublease governs this Sublease, then this Sublease shall also terminate, as of the date of termination of the applicable governing lease or sublease.
3. Option to Extend Term. Upon expiration of the Initial Term, Sublessee shall have the option to renew this Sublease for one (1) additional three (3) year term (the “Option Term”), provided that: (i) Sublessee is in good standing and otherwise in full compliance with all of the terms and conditions of this Sublease; (ii) Sublessee provides Sublessor written notice of its desire to renew no later than one hundred eighty (180) days prior to the expiration of the Term ; and (iii) Sublessor confirms in writing Sublessee’s Option Term. Upon confirmation of such exercise by Sublessor, all references to the Expiration Date shall mean April 30, 2031. All further references to the Term of this Sublease shall mean and include the Initial Term and any confirmed Option Term.
4. Termination. This Sublease shall only terminate prior to the Expiration Date for such reasons as are specifically set forth in the provisions of this Sublease.
5. Right to Terminate for Developm ent. INTENTIONALLY OMITTED.
SCLAA Standard Sublease Page 3 Anduril Industries, Inc. Bldg 682C
6. Rent.
a. Monthly Base Rent. During the first year of the Initial Term, Sublessee shall pay to Sublessor as rent for the Subleased Premises the amount of Seventeen Thousand Six Hundred Sixty-Three Dollars ($17,663) per month (the “Monthly Base Rent”). Commencing on May 1, 2026, the Monthly Base Rent shall be increased by three percent (3%), and on each annual anniversary of the Sublease Commencement Date thereafter during the Term (or during any Option Term exercised in accordance with the provisions of Section 3 hereof), the then-current Monthly Base Rent shall be increased by an additional three percent (3%). All further references to the Monthly Base Rent shall mean and include any such increased amount as calculated under the provisions of this paragraph. The Monthly Base Rent represents the summation of Building 682C rent in the amount of Sixteen Thousand Two Hundred Sixty-Three Dollars ($16,263), the Outside Storage and Vehicle Parking space rent in the amount of Five Hundred Dollars ($500), and the Ramp Space rent in the amount of Nine Hundred Dollars ($900).
b. Tenant Improvements. Within three hundred sixty-five (365) days of the Sublease Commencement Date, Sublessee shall undertake and substantially complete, at its sole expense, certain tenant improvements to the Subleased Premises (the “Tenant Improvements”) as further described on Exhibit B Schedule A attached hereto and incorporated herein by this reference. Sublessee shall construct the Tenant Improvements in accordance with Section 14, 17 and 22 of this Sublease, using its own staff and/or properly licensed and insured contractors and in full compliance with any applicable prevailing wage or public bidding requirements.
c. Rent Credits. As consideration for substantially completing the Tenant Improvements described on Exhibit B Schedule A, within the time period set forth above, and subject to the provisions of subsections i and ii hereof, Sublessor shall, commencing on July 1, 2026, and continuing for twenty (20) consecutive months of the Initial Term of this Sublease, provide Sublessee with a monthly rental credit in an amount equal to fifty percent (50%) of the anticipated cost of Six Hundred Thousand Dollars ($600,000) for the tenant improvements to Building 682C described on Exhibit B Schedule A . The rental credit shall be based upon actual costs incurred by Sublessee to construct the Tenant Improvements, as verified, and approved by Sublessor pursuant to subsection (i) below. The rental credit shall not exceed a total of Three Hundred Thousand Dollars ($300,000) and shall be applied on a monthly basis toward the Sublessee’s Monthly Base Rent in an amount not to exceed Fifteen Thousand Dollars ($15,000) monthly.
i. Following the substantial completion of the Tenant
Improvements described on Exhibit B Schedule A , Sublessee shall provide to Sublessor all invoices with proof of payment, Tenant Improvement Certifications, and other evidence of actual cost incurred together with a cost summary cover page (the “Close-Out Statement”). Upon receipt of the Close-Out Statement, Sublessor shall verify same and calculate the actual total amount of the rent credits due to Sublessee.
SCLAA Standard Sublease Page 4 Anduril Industries, Inc. Bldg 682C
ii. Should Sublessee not substantially complete the Tenant Improvements within three hundred sixty-five (365) days following the Sublease Commencement Date (April 30, 2026), and provide a Close-Out Statement to Sublessor documenting the actual costs incurred, Sublessee shall not be eligible for rent credits described in Section 6.c.
d. Payment. Monthly Base Rent shall be payable in advance prior to the first (1st) day of each calendar month and without demand to:
Southern California Logistics Airport Authority
Attention: Airport Director
18374 Phantom West
Victorville, California 92394
or at such other place as Sublessor may designate in writing from time to time.
Sublessee shall also pay to Sublessor within thirty (30) days of presentation of an invoice, such other charges as it may incur for use of facilities and services at the SCLA which shall be charged in accordance with the SCLA Rules and Regulations as set forth on Exhibit C, attached hereto and incorporated herein by this reference, as such may be amended from time to time by Sublessor.
7. Security Deposit. Sublessee shall deposit with the Sublessor upon execution hereof the sum of Seventy Thousand Six Hundred Fifty-Two Dollars ($70,652), as security for Sublessee’s faithful performance of Sublessee’s obligations hereunder (the “Security Deposit”). If Sublessee fails to pay rent or other charges due hereunder, fails to pay any utility or service pr ovider, or otherwise defaults with respect to any provision of this Sublease, the Sublessor may use, apply or retain all or any portion of said deposit for payment of any rent or other charges in default or for the payment of any other sum to which the Sublessor may become obligated by reason of Sublessee’s default, or to compensate the Sublessor for any loss or damage which the Sublessor may suffer thereby. At all times during the Term hereof, Sublessee must maintain at a minimum the amount of Security Deposit specified in this Section.
8. Brokerage Commission. Sublessor and Sublessee represent and affirm to each other that they have not had any dealings with any real estate brokers, finders or agents and no commissions or fees are payable by either Party in connection with this Sublease.
9. Late Charge. Sublessee hereby acknowledges that late payment by Sublessee to Sublessor of any installment of rent, or any other sums due hereunder will cause Sublessor to incur costs not contemplated by the Sublease, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any installment of rent, or any other sum due from Sublessee is not received by the Sublessor within ten (10) days after such amount is due, whether or not any notice of default or other notice has been given, Sublessee shall pay to the Sublessor a charge equal to six percent (6%) of the SCLAA Standard Sublease Page 5 Anduril Industries, Inc. Bldg 682C amount past due (the “Late Charge”), in addition to the payment of the past due amount itself. The Parties hereby agree that such Late Charge represents a fair and reasonable estimate of the costs the Sublessor will incur by reason of late payment by Sublessee, and no more than one (1) Late Charge shall be assessed per month. Notwithstanding the foregoing, in the event the Sublessee elects to make annual payments in advance, then no Late Charge shall apply.
10. Limited Right to Possession of the Subleased Premises. Sublessor shall deliver possession of the Subleased Premises to Sublessee on or before the Sublease Commencement Date, free and clear of all tenants, occupants, and right of any third parties except as hereafter provided in this Section 10. Sublessee agrees that the terms of its possession shall be subject to any outstanding easements and rights-of-way not within the control of the Sublessor and further to the right of entry by the United States Air Force as provided under the Air Force Leases. The Sublessor shall use best efforts to ensure the quiet use and enjoyment of the Subleased Premises by Sublessee.
However, unreasonable interference by Sublessor or the Air Force with Sublessee’s quiet enjoyment of the Subleased Premises that results in material and demonstrable financial detriment to Sublessee and Sublessee being unable to continue its business functions in a commercially reasonable manner, shall be grounds for termination of the Sublease by Sublessee.
11. Holding Over. In the event Sublessee, with the Sublessor’s prior written consent, holds over and continues in possession of the Subleased Premises, or any part thereof, after the Expiration Date, such occupancy shall be considered a month-to- month tenancy subject to all the terms and conditions of this Sublease in effect on the day immediately preceding the Expiration Date, except that the Monthly Base Rent for any such holdover period shall be increased to one hundred fifty percent (150%) of the then current Monthly Base Rent. If Sublessee, without the Sublessor’s prior written consent, holds over or continues in possession of the Subleased Premises, or any part thereof, after the Sublease Expiration Date of this Sublease, such occupancy shall be deemed a tenancy at sufferance, permitting the Sublessor to immediately commence eviction proceedings without notice to Sublessee.
12. Right to Relocate. INTENTIONALLY OMITTED.
13. Maintenance. Except for excessive repair and maintenance necessitated solely by Sublessor’s activities, Sublessee shall at all times during the Term hereof and until surrender and Expiration, keep and maintain the Subleased Premises in good and substantial order and repair, and shall undertake all necessary repair and maintenance of the Subleased Premises. Sublessee shall be responsible for all operating expenses associated with maintaining the Subleased Premises including, but not limited to:
cleaning; light bulb replacement; procurement of supplies and materials; preventative maintenance; repair; upkeep and emptying of emergency/hazardous spill trench drains and reservoir; signs; sidewalks; all monthly, quarterly, and annual inspection/servicing and repair of the Subleased Premises mechanical, electrical, lighting, plumbing, and life safety systems; furniture and window cleaning; servicing of fire extinguishers and fire SCLAA Standard Sublease Page 6 Anduril Industries, Inc. Bldg 682C suppression systems; repairs to trade fixtures and/or equipment, doors, ceilings, roofing, floors; exterior painting, resurfacing paved exterior areas and the like; landscaping of parking lot, associated fees, etc. Sublessee agrees at Sublessee’s sole cost and expense to procure, maintain throughout the Term, and supply copies to Sublessor, contracts for the inspection/servicing and maintenance of HVAC equipment, fire extinguishing and suppression systems, fire alarms and/or smoke detection systems, and air compressor systems. Sublessee also agrees throughout the Term to supply copies of all life safety related certifications and/or inspection records to the Sublessor in a timely manner following Sublessor’s written request.
14. Use and Condition of Subleased Premises. The Subleased Premises are to be used by Sublessee for those purposes more particularly provided for on Exhibit D, attached hereto and incorporated herein by this reference, and for no other purpose unless expressly agreed to by the Sublessor in writing. Sublessee agrees to use the Subleased Premises in such a manner as to not interfere with the Sublessor’s rights in the Subleased Premises or the surrounding areas, to comply with all airport rules and regulations, all applicable governmental laws, ordinances, and regulations in connection with its use of the Subleased Premises, to keep the Subleased Premises in a clean and sanitary condition, and to use all reasonable precaution to prevent damage, or injury to the Subleased Premises.
a. Permits. Sublessee, at its sole cost and expense, shall apply for and obtain any and all permits and/or certifications required by any federal, state or local governmental entity, including but not limited to the Mojave Desert Air Quality Board, in connection with the painting, maintenance and/or overhaul of aircraft in or about the Subleased Premises. Such permits shall include, but not be limited to, any which may be required for the air handling and ventilation requirements for the Subleased Premises. Furthermore, Sublessee shall coordinate and cooperate with the Mojave Desert Air Quality Board as may be required from time to time. Any and all such permits and/or certifications shall be obtained in such a manner so as to run in favor of the Subleased Premises and/or the Sublessor, and such permits or certifications shall remain with the Subleased Premises upon the expiration or termination of the Sublease.
b. No Warranties. Except as provided herein, Sublessee agrees that no promises, covenants, representations, statements, or warranties have been made on behalf of the Sublessor to Sublessee respecting the condition of the Subleased Premises, or the manner of operating the Subleased Premises or the maintaining of any repairs to the Subleased Premises.
c. Acceptance of Subleased Premises. Sublessee acknowledges that it has satisfied itself by its own independent investigation that the Subleased Premises are suitable for their intended use, and that neither the Sublessor nor the Sublessor’s agent or agents have made any representation or warranty as to the present or future suitability of the Subleased Premises for the conduct of Sublessee’s business.
Sublessee’s taking possession or use of the Subleased Premises for any purpose shall SCLAA Standard Sublease Page 7 Anduril Industries, Inc. Bldg 682C constitute Sublessee’s acceptance of the Subleased Premises “as-is” in its existing condition, which condition shall be established as set forth in Exhibit D.
d. Notice of Presence of Asbestos and Lead-Based Paint. Sublessee, its successors, and assigns are warned that the Subleased Premises may contain asbestos materials and lead-based paint materials. No warranties, either expressed or implied, are given with regard to the quantity, location or condition of the asbestos containing materials or the lead-based paint materials. Sublessee, its successors, and assigns, shall be deemed to have relied solely on their own judgment in assessing the overall condition of all or any portion of the Subleased Premises, including any asbestos hazards or lead-based paint hazards or concerns. Sublessee acknowledges that Sublessee was given every opportunity to inspect the Subleased Premises to assess the risk, if any, from asbestos containing material or lead-based paint materials.
e. No Liability Assumed by Sublessor. The Sublessor assumes no liability for damages for personal injury, illness, disability or death to Sublessee or to Sublessee’s successors, assigns, employees, invitees, or any other persons subject to Sublessee’s control or direction, or to any person, including members of the general public arising from or incident to the purchase, transportation, removal, handling, use, disposition or any activity causing or leading to contact of any kind whatsoever with asbestos or lead-based paint on the Subleased Premises which is the subject of this Sublease, whether Sublessee, its successors or assigns has or have properly warned or failed to properly warn the individuals injured. Sublessee, its successors, and assigns, further agree that in its use and occupancy of the Subleased Premises, it will comply with all federal, state and local laws relating to asbestos and lead-based paint.
f. Personal Property. Sublessee shall, at the Sublease Expiration Date or such other termination of this Sublease, by lapse of time or otherwise, remove all of Sublessee’s personal property, repair any damage to the Subleased Premises resulting therefrom, and surrender the Subleased Premises to the Sublessor in as good a condition as when Sublessee took possession, normal wear and tear excepted.
15. Waste or Nuisance. Sublessee shall not commit or permit the commission by others of any waste on the Subleased Premises. Sublessee shall not maintain, commit, or permit the maintenance or commission of any nuisance on the Subleased Premises nor shall Sublessee use or permit the use of the Subleased Premises for any unlawful purpose.
16. Taxes. Sublessee shall pay when due and prior to delinquency all taxes, assessments, and other charges including possessory interest taxes levied or imposed by any governmental entity on the possessory interest of Sublessee in the Subleased Premises and the personal property, trade fixtures, appliances, and leased equipment placed by Sublessee in, on, or about the Subleased Premises during the Term of this Sublease. Sublessee recognizes that the interests of Sublessee in this Sublease shall be subject to the imposition of a possessory interest tax by the San Bernardino County Assessor, and Sublessee agrees to pay such tax amount as may be so levied with SCLAA Standard Sublease Page 8 Anduril Industries, Inc. Bldg 682C respect to the possessory interest of Sublessee in the Subleased Premises under this Sublease. Sublessee further acknowledges that pursuant to California Health and Safety Code Section 33673, the property shall be assessed in the same manner as privately owned property and Sublessee shall pay taxes upon the assessed value of the entire property and not merely the assessed value of its leasehold interest.
17. Compliance with Air Force Leases, Airport Deeds, Covenants, Conditions and Restrictions and Related Agreements.
a. Sublessee acknowledges that a copy of the applicable Air Force Leases and/or Airport Deeds are available and on file in the SCLA office.
b. Sublessee expressly acknowledges that the Sublessor has assumed certain duties and obligations to the Air Force under the Air Force Leases and/or Airport Deeds affecting the use and occupancy of the Subleased Premises.
Sublessee further agrees that as of the Sublease Commencement Date, it shall observe and perform the duties and obligations of the Sublessor relating to the Subleased Premises in favor of the Air Force which arise under the Air Force Leases. These duties and obligations as assumed by Sublessee include but are not limited to the following which are presented below for purposes of reference and convenience:
I. Air Force Lease Condition 10 (Environmental Protection); and
II. Air Force Lease Condition 17 (Development and Alterations); and
III. Air Force Lease Condition 26 (Restrictions on Use of Leased Premises)
c. Any use, occupancy or activity of Sublessee on the Subleased Premises which may result in either the receipt by the Sublessor of a notice of default from the Air Force under the Air Force Leases or a notice of default or a notice of violation from either the Air Force or the Federal Aviation Administration (“FAA”) under any Airport Deeds, shall be deemed to be a default of Sublessee under this Sublease.
The response of the Sublessor following receipt of any such notice of default or breach from either the Air Force under the Air Force Leases or from the Air Force and/or the FAA under the Airport Deeds, shall not waive, stay, or otherwise mitigate or remedy the default of Sublessee to the Sublessor under this Sublease. Sublessee shall have no right under this Sublease to participate in any proceeding between the Air Force, the FAA and the Sublessor for the resolution of an alleged default, breach or other dispute of the parties arising under the Air Force Leases and/or the Airport Deeds except to the extent the Sublessee is alleged to have directly caused such breach or default.
d. Sublessee acknowledges that the Subleased Premises are, or will be, subject to certain Declaration of Covenants, Conditions and Restrictions to be recorded in the official records of San Bernardino County, California, as amended (the “CC&Rs”). There shall also be included in any assessments the amount of SCLAA Standard Sublease Page 9 Anduril Industries, Inc. Bldg 682C assessments levied pursuant to the CC&Rs and applicable to the Subleased Premises, determined by the ratio that the rentable area of building on the Subleased Premises bears to the total net rentable area of building or buildings which include the Subleased Premises and for which a separate assessment is made pursuant to the CC&Rs.
e. Sublessee further expressly acknowledges that it is subject to and shall comply with all provisions and conditions of the applicable Air Force Leases.
18. Insurance. Sublessee shall procure and maintain for the duration of the Sublease insurance against claims for injuries to persons or damages to property which may arise from or in connection with Sublessee’s operation and use of the Subleased Premises. The cost of such insurance shall be borne by the Sublessee. Coverage shall be at least as broad as:
a. Commercial General Liability Insurance. (“CGL”): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products completed operations, property damage, bodily injury, and personal and advertising injury with limits no less than Five Million Dollars ($5,000,000) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence.
b. Property Insurance. Sublessee acknowledges that the insurance to be maintained by the Sublessor on the Subleased Premises will not insure against any of the Sublessee’s property or improvements made by the Sublessee. Accordingly, Sublessee shall maintain in full force and effect insurance against all risks of loss to any improvements or betterments, at full replacement cost with no coinsurance penalty provision. Property Insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the Subleased Premises.
c. Commercial Vehicle Liability Insurance. ISO Form Number CA 00 01 covering any auto (Code 1), or if Sublessee has no owned autos, hired (Code 8) and non-owned (Code 9), with limit no less th an One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
d. Workers’ Compensation Insurance. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Sublessee has no employees, it may certify or warrant to the Sublessor that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code and the requirement for Workers’ Compensation coverage may be waived by the Risk Manager.
SCLAA Standard Sublease Page 10 Anduril Industries, Inc. Bldg 682C e. Sublessee may use Umbrella or Excess Policies to provide the liability limits as required in this Sublease. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, Self-Insured Retentions, indemnity and defense requirements. The Umbrella and Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance maintained by the Additional Insureds, whether primary or excess, and which also apply to loss covered hereunder, shall be called upon to contribute to a loss until Sublessee’s primary and excess policies are exhausted.
f. If the Sublessee maintains broader coverage and/or higher limits than the minimum limits shown above, the Sublessor requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Sublessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Sublessor.
g. The insurance policies are to contain, or be endorsed to contain the following provisions:
(i) Additional Named Insureds. Notwithstanding any
inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by the commercial general liability policy described in s ubsection (a) above shall bear an endorsement whereby it is provided that, the Souther n California Logistics Airpor t Authority (“Sublessor”), the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, the United States Air Force, and their respective officers, officials, employees, servants, volunteers, agents, and independent contractors are named as Additional Insureds.
General Liability coverage can be provided in the form of an endorsement to the Sublessee’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 2038; and CG 20 37 if a later edition is used).
(ii) Waiver of Subrogation Rights.
Subl essee hereby grants to
the Southern California Logistics Airport Aut hority (“Sublessor”), the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, the United States Air Force, and their respective officers, officials, employees, servants, volunteers, agents, and independent contractors a waiver of any right to subrogation which any insurer of said Sublessee may acquire against the Southern California Logistics Airport Authority, the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, and the United States Air Force. Sublessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Sublessor has received a waiver of subrogation endorsement from the insurer.
SCLAA Standard Sublease Page 11 Anduril Industries, Inc. Bldg 682C (iii) For any claims related to this Sublease, the Sublessee’s coverage shall be primary and noncontributory and at least as broad as ISO CG 20 01 04 13 with respects to the Southern Californi a Logistics Airport Aut hority (“Sublessor”), the Victor Valley Economic Development Au thority, the City of Victorville, the City Attorney and the United States Air Force and their officers, officials, employees, volunteers, contractors, and subcontractors. Any insurance or self-insurance maintained by the Southern California Logistics Airport Authority (“Sublessor”), the Victor Valley Economic Development Authority, the City of Victorville, the City Attorney and the United States Air Force and their officers, officials, employees, volunteers, contractors, and subcontractors shall be in excess of the Sublessee’s insurance and shall not contribute with it.
19. Proof of Insurance Coverage.
a. Sublessee shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Sublease and furnish to Sublessor certificates of said insurance on or before the Sublease Commencement Date.
b. Each insurance policy required in the Sublease shall provide that coverage should not be canceled, except with written notice to the Sublessor.
c. Sublessee shall furnish the Sublessor with original certificates of insurance and amendatory endorsements, or copies of applicable policy language effecting coverage required by this Sublease and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates, endorsements and copies or Declarations and Endorsements are to be received and approved before the Commencement Date.
However, failure to obtain the required documents prior to the Commencement Date shall not waive the Sublessee’s obligation to provide them.
d. Self-insured. If Sublessee is self-insured, it shall provide certificates or evidence to Sublessor indicating that its insurance meets the levels and requirements as set forth herein above.
20. Personal Property at Risk of Sublessee. All personal property which Sublessee maintains at the Subleased Premises shall be at the risk of Sublessee only.
Except for the grossly negligent, reckless, or unlawful intentional acts of the Sublessor, its agents, employees, guests, or invitees, the Sublessor shall not be liable for any damage to any property of Sublessee or for any damage to Sublessee’s property in moving the same to or from the Subleased Premises.
SCLAA Standard Sublease Page 12 Anduril Industries, Inc. Bldg 682C
21. Utilities and Other Services.
a. Payment for Utility Charges. Sublessee shall contract with and pay the applicable provider, whether the provider is the Sublessor or other party, all charges for water, gas, electricity, waste disposal, sewer or other utilities used or supplied upon or in connection with its use of the Subleased Premises and shall indemnify, defend, and hold harmless the Sublessor against any liability on account thereof. Sublessee shall obtain separate metering devices for utility services, as applicable. Sublessee agrees to promptly reimburse the Sublessor upon receipt of invoice, its proportionate share of the actual cost of utility services from any common utility service, which may have been paid by Sublessor. In addition to the amount of the utility bill that the Sublessor may have paid, Sublessee shall pay to Sublessor a three percent (3%) administrative fee for any pass-through billing processed. In no event shall the Sublessor be liable for any interruption or failure in the supply of any such utilities to the Subleased Premises.
b. Sublessee understand that the electric, water, fire system, fire system certification, alarm line monitoring, and backflow certification, are shared with other tenant(s) of Building 682. Sublessee further understands its obligation to enter into separate utility reimbursement agreements with the tenants occupying Building 682A and 682B in order to receive reimbursement from said tenants for their proportionate share of the actual cost of utility services which may have been paid by Sublessee
c. Consent to Energy Use Data Disclosure. By executing this Sublease, Sublessee hereby consents to disclosure of its energy usage data as required for Sublessor to comply with the California Public Resources Code section 25402.10 and the implementing regulations of the California Energy Commission (20 Cal. Code Regs. Sections 1680 through 1685). Strictly for the purposes of ensuring such compliance, including any required public disclosure of aggregated energy use, Sublessee agrees to provide such energy usage data directly to Sublessor and/or authorizes Sublessor to obtain the required energy usage data directly from Sublessee’s utility providers upon request without the need to execute any further authorizations or consent forms. Sublessee’s consent and authorization is deemed given upon the execution of this Sublease and shall continue to be in effect throughout the Term or any extension thereof.
22. Alterations, Improvements and Additions.
a. Sublessee shall not make any alterations, improvements, or additions to the Subleased Premises (collectively hereinafter the “Improvements”) without the prior written consent of the Sublessor. The Sublessor shall own all alterations, improvements, and additions that are affixed to the Subleased Premises without compensation to Sublessee, subject to subsection (b) below. Any personal property belonging to Sublessee may be removed by Sublessee at any time prior to the expiration of the Term of this Sublease, or extension thereof.
SCLAA Standard Sublease Page 13 Anduril Industries, Inc. Bldg 682C b. Once completed, Improvements authorized in writing by Sublessor and/or any specific Tenant Improvements as may be provided for elsewhere in this Sublease, shall not be removed by Sublessee, unless so required by the Sublessor in its sole discretion. At the end of the Term of this Sublease (or upon any earlier termination as may be provided for herein) Sublessor shall have the option to either require Sublessee to remove the Improvements or Tenant Improvements or elect to have such Improvements or Tenant Improvem ents become the property of Sublessor.
In the case of removal of equipment or fixtures, Sublessee shall restore the area of the Subleased Premises from which such removals are made to its original condition.
Sublessee shall require the issuance of a Faithful Performance Bond and a Payment Bond for any work performed on the Subleased Premises as set forth below:
BOND REQUIREMENTS - A Faithful Performance Bond benefitting the Sublessor in the amount of one hundred twenty-five percent (125%) of the bid amount and a Payment Bond in the amount of one hundred twenty-five percent (125%) of the bid amount. Bonds must be issued by an admitted surety insurer in the State of California. When a contract for constructing Sublessor-authorized Improvements or Tenant Improvements is signed, the successful bidder shall provide, within ten (10) working days, the Faithful Performance and Payment Bonds in the amounts set forth above in this paragraph.
23. Airport Development. The Sublessor, at its sole discretion, shall determine and may from time to time change the routes of surface ingress and egress to and from the Subleased Premises, but agrees to locate such routes as conveniently as may be done for Sublessee, having in mind the reasonable requirements of the Sublessor with respect to the operation of the SCLA. Notwithstanding the above, if the rerouting of such ingress and egress routes significantly disrupts the normal operations of Sublessee such that it results in material financial detriment to Sublessee, then Sublessee shall have the right to terminate this Sublease.
24. Signs. Sublessee shall not post, install, erect, or operate any sign, placard, poster or other device on any part of the Subleased Premises without the prior written permission of the Sublessor. Such signs as may from time to time be permitted by the Sublessor shall be made, posted, maintained and removed, and repair any damage caused by removal, at Sublessee’s own cost and expense. Sublessor shall have the right to remove unauthorized signs at Sublessee’s expense. Sublessee shall be responsible for all costs associated with the purchase and installation of the required Building Standard Suite Signage in accordance with local codes.
25. Liens. Sublessee shall not suffer or permit any liens to stand against the Subleased Premises, or any part thereof, by reason of any work, labor, services, or materials done for, or supplied to Sublessee or anyone holding the Subleased Premises or any part thereof through or under Sublessee. If any such lien shall at any time be filed against the Subleased Premises, Sublessee shall cause such lien to either be discharged of record sixty (60) days after the date that Sublessee receives notice of the filing. Notwithstanding the above, in any bona fide dispute between Sublessee and any SCLAA Standard Sublease Page 14 Anduril Industries, Inc. Bldg 682C third party concerning work done by the third party on or for the Subleased Premises, and as a result of the dispute the third party files a lien against the Subleased Premises, then, in lieu of obtaining the discharge of the lien within the sixty (60) day period, Sublessee, at its option, may either file suit against the third party, a part of the suit being to judicially negate or remove the lien or Sublessee may file an appropriate bond or other device allowed by law to remove the lien.
26. Inspection by the Sublessor. Sublessee shall permit the Sublessor, or its agents, representatives, or employees to enter the Subleased Premises at mutually agreeable, reasonable times for the purpose of inspecting the Subleased Premises to determine whether Sublessee is complying with the terms of this Sublease, for the purpose of doing other lawful acts that may be necessary to protect the Sublessor’s interest in the Subleased Premises, or for the purpose of performing the Sublessor’s duties under this Sublease. Except in the event of an emergency, the Sublessor shall contact Sublessee, no less than twenty-four (24) hours prior to the time that Sublessor desires to enter the Subleased Premises to arrange a mutually agreeable time for the inspection. Sublessor agrees that Sublessee may require that anyone entering the Subleased Premises be accompanied by an employee of Sublessee so long as such escort is reasonably available. Sublessor shall use commercially reasonable efforts to minimize any disruption to Sublessee’s business operations in connection with any such entry.
27. Damage or Destruction of Subleased Premises. Unless occasioned by the negligence or intentionally unlawful act of Sublessee, if, during the Term of this Sublease or any renewal thereof, any portion of the Subleased Premises shall be damaged by fire or other catastrophic event, so as to render such portion of the Subleased Premises untenable, the obligations under this Sublease shall be immediately suspended while such portion of the Subleased Premises remains untenantable. In the event of such damage, the Sublessee shall give Sublessor notice of such untenantable conditions and the Sublessor shall elect in its sole discretion, whether to repair the Subleased Premises or to cancel this Sublease with respect thereto. It shall notify Sublessee in writing of its election within thirty (30) days after such damage. In the event Sublessor elects to repair the Subleased Premises, the work or repair shall begin promptly and shall be carried on without unnecessary delay.
In the event the Sublessor elects not to repair the Subleased Premises or portion thereof, the Sublease shall be deemed canceled as of the date of damage with respect to the applicable portion. Such damage shall not extend the sublease Term. In the event that insurance proceeds are received by Sublessee under the Property Insurance policy required to be carried by Sublessee, and the Sublease is terminated under this Section, the Sublessor shall be entitled to the portion of such proceeds attributable to the fixtures, improvements, and other property which would remain with the Subleased Premises, and Sublessee shall be entitled to the portion of such proceeds attributed to the fixtures and property on the Subleased Premises which would be removed by Sublessee. Notwithstanding anything in this paragraph to the contrary, if the Subleased Premises are rendered inadequate for Sublessee to conduct its normal operations in or upon the Subleased Premises (or such portion of the Subleased Premises which is still SCLAA Standard Sublease Page 15 Anduril Industries, Inc. Bldg 682C tenantable), and it is reasonably anticipated that the damages shall not be repaired or otherwise resolved, within sixty (60) days of the date the damage occurred, then Sublessee, at its sole and exclusive option, may immediately terminate this Sublease.
Additionally, irrespective of whether Sublessee remains in possession and occupancy of the Subleased Premises or elects to terminate this Sublease, rent payable under this Sublease shall abate during the period that the Subleased Premises are not totally useable by Sublessee. The abatement shall be pro rata in proportion to the ratio that the amount of space which Sublessee is actually able to occupy and from which it is able to conduct operations bears to the total Subleased Premises. Sublessee shall continue to make all other payments during this period, including taxes.
28. Assignment and Subletting.
(a) Sublessee shall not cause, or permit, by operation of law or otherwise, any assignment, encumbrance or transfer of this Sublease or any estate or interest therein without the prior written consent of the Sublessor.
(b) Sublessee shall not sublet the Subleased Premises or any part thereof without the prior written consent of the Sublessor. Any consent to a sublease or assignment shall be conditioned upon the proposed subtenant or assignee demonstrating to Sublessor its ability to perform and complete the obligations of Sublessee under this Sublease, a determined by objective standards of financial capability, creditworthiness and experience required for such performance. In addition, if Sublessee’s proposed sublease or assignment arrangement will result in any increased rents or profits accruing to Sublease in excess of the Monthly Base Rent due to Sublessor under this Sublease, such consent shall further be conditioned upon Sublessor receiving fifty percent (50%) of the excess amount thereof. An assignment or subletting shall not relieve Sublessee of any of its obligations or liabilities under this Sublease: both Sublessee and any subsequent assignees will be deemed to be bound hereunder. The Sublessor’s consent to any such assignment, transfer or subletting shall not constitute consent to any further assignment, transfer, or subletting.
(c) The provisions of this Section 28 are not intended, nor should they be construed, to prevent Sublessee from allowing such independent contractors onto the Subleased Premises who are involved in Sublessee’s normal operations on the Subleased Premises (such as repair and maintenance personnel, janitorial personnel, and similar personnel). Additionally, nothing in this Section 28 should be construed to prevent subcontractors of Sublessee from conducting their work on the Subleased Premises in conjunction with the normal operations conducted by Sublessee. To the extent that Sublessor must grant its consent for Sublessee’s subcontractors to enter onto the Subleased Premises for the above-described purposes, consent is hereby deemed to be granted.
29. Indemnification. To the fullest extent permitted by law, Sublessee hereby agrees to defend, indemnify and hold harmless Sublessor, the City of Victorville, the Victor Valley Economic Development Authority, the United States Air Force and each SCLAA Standard Sublease Page 16 Anduril Industries, Inc. Bldg 682C of their respective officers, officials, employees, directors, agents, volunteers, independent contractors and assigns (collectively hereinafter the “Indemnified Parties”), from and against any and all claims, actions, suits, proceedings, demands, losses, judgments and costs and expenses, including attorneys’ fees, arising from any legal action or proceeding initiated by any individual or entity arising out of, or resulting from the performance of this Sublease, except for any such claim arising out of the sole negligence or willful misconduct of the Indemnified Parties.
30. The Sublessor’s Environmental Representations.
a. Except as otherwise provided in Section 14 hereof, Sublessee shall not be held responsible or deemed liable by the Sublessor for any hazardous environmental condition on the Subleased Premises, which existed prior to Sublessee’s occupancy of the Subleased Premises.
b. Except as provided in Section 14 hereof, the Sublessor represents that to the best of its actual knowledge, the Subleased Premises are free from any violations of law or regulations pertaining to occupational hazards and environmental conditions or Hazardous Materials as defined in Section 31 of this Sublease. In the event that any hazardous environmental conditions exist on the Subleased Premises as of the Sublease Commencement Date which result in a loss to Sublessee and which were caused by Sublessor, the Air Force or parties or entities within the control of, or under contract with Sublessor, then the Sublessor shall indemnify, defend and hold Sublessee harmless from any costs, expenses, at torney fees or liabilities relating to any claims of such violations or conditions existing prior to Sublessee’s occupancy of the Subleased Premises. Sublessor shall indemnify Sublessee from hazardous environmental conditions or violations caused directly by the Sublessor, its employees, agents, or licensees during or subsequent to the Term of this Sublease.
c. Sublessee shall be solely responsible for obtaining at its cost and expense; any environmental permits required for its operation under this Sublease independent of any existing permits.
31. Compliance with Environmental Laws.
a. The words and phrases set forth below shall have the following definitions:
I. “Hazardous Materials” means and includes any material that because of its quality, concentration or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment. Hazardous Materials include hazardous wastes, toxic substances, petrol eum products and motor fuels and similar substances and materials, including all s ubstances and materials defined as hazardous or toxic substances or materials under California Health and Safety Code section 25501(n) or any other similarly applicable state, federal or local law.
SCLAA Standard Sublease Page 17 Anduril Industries, Inc. Bldg 682C II. “Environmental Laws” means and includes the various health and safety laws and regulations of state, federal and local agencies pertaining to the manufacture, use, storage, disposal, release, and reporting relating to Hazardous Materials
b. Following the Commencement Date, Sublessee shall not cause or permit any Hazardous Materials to be used, generated, manufactured, produced, stored, brought upon, or released, on, under or about the Subleased Premises, or transported to and from the Subleased Premises, by Sublessee, its agents, employees, contractors, or invitees in violation of any Environmental Laws. Sublessee shall indemnify, defend, and hold harmless the Sublessor from any damage, cost, expense, liability, fine, or penalty resulting from any unauthorized discharge, emission, spill, storage, release, disposal or use of any Hazardous Materials by Sublessee, its officers, agents, employees, contractors or invitees or any of them. This obligation of Sublessee shall survive the Expiration Date or earlier termination of this Sublease and shall apply whenever the Sublessor incurs cost or liab ility arising from any use or activity of Sublessee relating to Hazardous Materials during the Term hereof.
c. Without limiting the foregoing, if the presence of any Hazardous Materials on, under or about the Subleased Premises caused by Sublessee, its agents, employees, contractors, or invitees results in an unpermitted, unscheduled or unauthorized release or contamination of the Subleased Premises by such Hazardous Materials at any time during the Term or any extension thereof, then Sublessee shall at its sole cost and expense promptly take all actions necessary to return the Subleased Premises to the condition existing prior to the unpermitted, unscheduled or unauthorized release of any such Hazardous Materials on the Subleased Premises.
d. Sublessee shall immediately notify the Sublessor of the occurrence of any of the following events: (i) receipt by Sublessee of any correspondence or communication from any governmental entity regarding the application of Environmental Laws to the Subleased Premises or the investigation or enforcement by such governmental entity of any such Environmental Laws in connection with Sublessee’s occupancy or use of the Subleased Premises, and (ii) unpermitted, unscheduled or unauthorized release of any Hazardous Materials on the Subleased Premises which may occur at any time during the Term (or any extension thereof) of the Sublease.
e. To the extent Sublessee may conduct any use or activity on the Subleased Premises which includes the use, handling, transport, or disposal of any Hazardous Materials in quantities which exceed the threshold amounts authorized under California Health and Safety Code Section 25507, Sublessee shall, at its sole cost and expense, prepare and submit to the City of Victorville (or designated local Certified Unified Program Agency “CUPA”) for approval, renewal or amendment, as applicable, a Business Plan for the Subleased Premises, as the term “Business Plan” is described under California Health and Safety Code Section 25505.
SCLAA Standard Sublease Page 18 Anduril Industries, Inc. Bldg 682C f. Notwithstanding any of the foregoing, in the event Sublessee, its agents, employees, contractors, or invitees, fails to use and maintain the Subleased Premises in accordance with the provisions of this Section 31, Sublessor and/or the City of Victorville (the “City”) shall have the right, but not the obligation, to enter the Subleased Premises and undertake remedial action as necessary in order to ensure that the Subleased Premises are in compliance with all Environmental Laws. In such event, Sublessee shall reimburse Sublessor and/or the City for all reasonable sums incurred by it for such remediation activities for which Sublessee is responsible pursuant to Sections 30 and 31. In such event Sublessor may, in its sole discretion, and not limiting its ability to recove r through any other means prov ided in law or equity, determine to deduct all or a part of such sums due under this section from the Security Deposit.
32. Surrender of Subleased Premises. On the Expiration Date, Sublessee shall surrender and deliver possession of the Subleased Premises to the Sublessor clean and free of debris and in as good condition as it was on the Sublease Commencement Date, reasonable wear and tear excepted.
33. Compliance with Laws. Sublessee shall comply with all applicable Federal, State, and local laws, regulations and standards that are or may become applicable to Sublessee’s activities on the Subleased Premises (hereafter collectively “Laws”, including without limitation the SCLA and FAA Rules and Regulations).
Sublessee agrees to abide by and conform to the SCLA Rules and Regulations, attached hereto as Exhibit C, and incorporated herein by this reference as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. The Sublessor shall have the right, from time to time, to modify, amend and enforce said rules and regulations. In addition, Sublessee agrees to abide by the Selected FAA Rules and Regulations, attached hereto as Exhibit E and incorporated herein by this reference, as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. Sublessor shall not be responsible to Sublessee for the noncompliance with said rules by other tenants, their officers, agents, employees, and invitees. The judgment of any court of competent jurisdiction, or the admission of Sublessee in a proceeding brought against Sublessee by any government entity, that Sublessee has violated any such Laws (except where such admission may be the basis for settlement) shall be conclusive as between the Sublessor and Sublessee and shall constitute grounds for declaration of default, breach, forfeiture, and termination of this Sublease by the Sublessor.
34. Defaults.
a. In the event Sublessee should default in the performance of any covenant or condition of this Sublease (excluding the payment of any monthly rent or other amounts due hereunder) and such default is not cured or removed within thirty (30) days after service of written notice upon Sublessee of such default in the performance of any covenants and conditions; then in such event, the Sublessor shall SCLAA Standard Sublease Page 19 Anduril Industries, Inc. Bldg 682C have the right and option to terminate this Sublease, to re-enter the Subleased Premises, to evict Sublessee and to remove Sublessee’s possessions, all without being deemed guilty of any trespass, and without prejudice to any claim for arrears of rent or breach of covenant. Notwithstanding the foregoing, if Sublessee, prior to the expiration of such thirty (30) day period for default diligently commences to cure such default but is unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Sublessee continues to make a diligent effort to cure the default.
b. Failure to pay Monthly Base Rent or any other amounts required to be paid to Sublessor by Sublessee when due shall also be deemed a default which Sublessee shall cure such default within ten (10) days after service of written notice.
c. Any statutory notice required as part of any eviction action or similar type of proceeding may be included with any notice of default given pursuant to this Section and the Sublessor need not declare a default and have such default remain uncured prior to delivery of such statutory notice.
35. Remedies of the Sublessor. In the event of any breach of the Sublease by Sublessee and the cure periods described in Section 34 hereof have expired, the Sublessor may at any time thereafter, with or without notice or demand and without limiting the Sublessor in the exercise of any other right or remedy which the Sublessor may have by reason of such breach, do any of the following:
a. terminate Sublessee’s right to possession of the Subleased Premises by any lawful means, in which case this Sublease shall terminate, and Sublessee shall surrender possession of the Subleased Premises to the Sublessor.
This may involve the Sublessor filing an unlawful detainer action and receiving a court order for Sublessee to vacate the premises. In any such event, the Sublessor shall be entitled to recover from Sublessee all damages incurred by the Sublessor by reason of Sublessee’s default, including, but not limited to the cost of repairing or restoring damages to the Subleased Premises caused by Sublessee, the cost or removal of Sublessee’s improvements, fixtures and other contents of the Subleased Premises, costs associated with past or future brokerage commissions and marketing expenses and the other costs payable by the Sublessor in connection with the recovery of possession of the Subleased Premises, including but not limited to reasonable attorneys’ fees and court costs, as well as: (a) the worth at the time of award by the court having jurisdiction thereof of the unpaid rent which had been earned at the time of termination; and (b) the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the Term after the time of such award may exceed the amount of such rental loss for the same period that Sublessee proves could be reasonably avoided; or
b. pursue any other remedy now or hereafter available to the Sublessor under the laws or judicial decisions of the State of California.
SCLAA Standard Sublease Page 20 Anduril Industries, Inc. Bldg 682C
36. Default of Sublessor. In the event Sublessor should default in the performance of any covenant or condition of this Sublease and such default is not cured or removed within thirty (30) days after service of written notice of default upon Sublessor, then, Sublessee shall have the right and option to terminate this Sublease.
If Sublessor, prior to the expiration of such thirty (30) day period for a default, diligently commences to cure such default, but is unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Sublessor continues to make a diligent effort to cure the default. In the event of an uncured default Sublessee shall have all remedies available at law or in equity for any default or breach of this Sublease by the Sublessor.
37. Force Majeure-Unavoidable Delays. If the performance of any act required by this Sublease to be performed by either Party is prevented or delayed by reason of an act of God; strike; lockout; labo r disputes; inability to secure materials; unreasonably restrictive governmental laws or regulations; or any other cause except financial inability that is not the fault of the Party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay, and performance of the act during the peri od of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment of rent by Sublessee as required by this Sublease or the performance of any act rendered difficult solely because of the financial condition of the Party required to perform the act.
38. Notices. Any and all notices or demands required or permitted to be given hereunder must be personally delivered or be mailed by registered or certified mail, return receipt requested, or sent by a nationally recognized overnight courier, addressed as follows:
To the Sublessor: Southern California Logistics Airport Authority 18374 Phantom West
Victorville, CA 92394
Attn: Airport Director
With copies to: Green de Bortnowsky, LLP
30077 Agoura Court, Suite 210
Agoura Hills, CA 91301
Attn: Andre de Bortnowsky, Esq.
To the Sublessee: Anduril Industries, Inc.
1400 Anduril
Costa Mesa, CA 92626
Attn: Babak Siavoshy
or at such other address or addresses that either Party may hereafter designate in writing to the other. Any notice or demand which is mailed by registered or certified mail as provided above shall be deemed to be effective and given for all purposes three (3) business days following the time of deposit thereof in the United States mail.
SCLAA Standard Sublease Page 21 Anduril Industries, Inc. Bldg 682C
39. Miscellaneous.
a. One or more waivers of any provision of this Sublease by the Sublessor shall not be construed as a waiver of a subsequent breach of the same provision and the Sublessor’s consent or approval shall not be deemed to waive or render unnecessary the Sublessor’s consent or approval to or of any subsequent or similar act by Sublessee.
b. If either Party to this Sublease shall bring any action for any relief against the other, declaratory or otherwise, to enforce the terms hereof or to declare rights here under (collectively, an Action), the losing Party shall pay to the prevailing Party attorneys’ fees and costs incurred in bringing and prosecuting such Action and/or enforcing any judgment, order, ruling, or award (collectively, a Decision) granted therein, all of which shall be deemed to have accrued on the commencement of such Action and shall be paid whether such Action is prosecuted to a Decision. Any Decision entered in such Action shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such Decision. The court may fix the amount of reasonable attorneys’ fees and costs on the request of either Party. For the purposes of this paragraph, attorneys’ fees shall include, without limitation, fees incurred in the following: (1) post-judgment motions and collection actions; (2) contempt proceedings; (3) garnishment, levy, and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation. “Prevailing Party” withi n the meaning of this paragraph includes, without limitation, a Party who agrees to dismiss an Action upon the other Party’s payment of the sums allegedly due or performance of the covenants allegedly breached, or who obtains substantially the relief sought by it. Nothing contained in the Section shall be interpreted to mean that Sublessor has agreed to arbitrate any dispute which may arise hereunder.
c. This Sublease can be modified, supplemented, amended, or rescinded only by a writing expressly referring to this Sublease and signed by authorized representatives of the Parties.
d. If any provision of this Sublease or any application thereof shall be invalid or unenforceable, the remainder of this Sublease and any other application of such provision shall not be affected thereby. Unless otherwise expressly provided herein, any approval or consent of Sublessor required hereunder shall not be unreasonably withheld or delayed. This Sublease shall be binding upon and inure to the benefit of and be enforceable by the respective successors of the Parties hereto. The Section headings in this Sublease are for purposes of reference only and shall not limit or define the meaning hereof.
e. This Sublease contains the entire understanding and agreement of the Parties, supersedes all prior understandings and agreements, and cannot be changed orally. This Sublease shall be construed in accordance with the laws of the State of California. Time is of the essence.
SCLAA Standard Sublease Page 22 Anduril Industries, Inc. Bldg 682C f. Any conflict between the printed provisions, exhibits, or addenda of this Sublease and the typewritten or handwritten provisions, if any, shall be controlled by the typewritten or handwritten provisions provided such typewritten or handwritten provisions are initialed by both Parties.
g. This Sublease shall be of no force or effect unless executed by both Parties. Each person executing this Sublease for the respective Parties expressly represents and warrants that he or she has the authority to enter into leases on behalf of and bind the entity on whose behalf this Sublease is executed.
h. This Sublease may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of the same instrument.
[END OF THIS PAGE – SIGNATURES FOLLOW]
SCLAA Standard Sublease Page 23 Anduril Industries, Inc. Bldg 682C IN WITNESS WHEREOF, the Parties have executed this Sublease as of the day and year first written above.
SUBLESSEE:
ANDURIL INDUSTRIES, INC.
_______________________________ _____________________ Babak Siavoshy Date
Chief Financial Officer
SUBLESSOR:
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”)
__________________________
_____________________
Keith C. Metzler Date
Executive Director
ATTEST:
__________________________
_____________________
Jennifer Thompson Date
SCLAA Secretary
APPROVED AS TO STANDARD FORM:
________________________ _____________________
Andre de Bortnowsky Date
SCLAA Legal Counsel
RISK MANAGER
__________________
_____________________
Sandra Bostick Date
SCLAA Standard Sublease Page 24 Anduril Industries, Inc. Bldg 682C
EXHIBIT A
DESCRIPTION OF SUBLEASED PREMISES
Building 682C consisting of approximately Two Thousand Two Hundred Twenty-Six (2,226) square feet of office space and Eight Thousand Six Hundred Sixteen (8,616) square feet of hangar space for a total combined square footage of approximately Ten Thousand Eight Hundred Forty-Two (10,842) square feet, located on the SCLA at 18308 Readiness Street, Victorville, CA 92394, as depicted on Exhibit A-1; and
Outside Storage Space and Vehicle Parking Space consisting of approximately Twelve Thousand Nine Hundred Thirty (12,930) squar e feet of exterior space adjacent to Building 682C as depicted on Exhibit A-2; and
Ramp Space consisting of approximately Fifty-Six Thousand Three Hundred (56,300) square feet, as depicted on Exhibit A-3.
These properties combined in total, with the improvements thereon, represent the Subleased Premises.
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SCLAA Standard Sublease Page 25 Anduril Industries, Inc. Bldg 682C
EXHIBIT B
TENANT IMPROVEMENTS
Subject to the terms and conditions of the Sublease, Sublessor and Sublessee hereby affirm and acknowledge that the following items of work shall represent the Tenant Improvements contemplated for Building 682C and the related property within this Sublease. The Tenant Improvements are represented in two distinct categories called “schedules”. The Sublessor hereby consents to the Sublessee performing said Tenant Improvements upon Sublessor receiving and approving detailed plans describing the Tenant Improvements Sublessee desires to construct. All Tenant Improvements must be approved in writing by Sublessor prior to any work being performed. Schedule A below depicts the Tenant Improvements for which the Sublessor shall provide the Sublessee rent credits per Section 6 of this Sublease. Schedule B below represents the Tenant Improvements which the Sublessor hereby tentatively approves Sublessee to undertake, but for which no rent credits shall be provided.
SCHEDULE A
Location Description Notes
Bldg 682C
Bathroom
Remove all abandoned M.E.P. equipment
and/or facilities.
As needed.
Bldg 682C
Bathroom
Remove existing lighting and replace
with segregated LED lighting.
Bldg 682C
Bathroom
Construct a new bathroom
meeting ADA requirements.
Sublessee to
determine size.
Throughout Bldg
682C
Remove any abandoned MEP
and sprinkler equipment.
As needed,
where needed.
North side of Bldg
682C
Remodel existing offices per
current building codes.
As needed,
where needed.
Throughout Bldg
682C
Patch or repair walls and/or
insulation before painting.
If needed,
where needed.
Throughout Bldg
682C
Painting Where needed.
Throughout Bldg
682C
Update sprinkler system
and/or related electrical equipment
to a wet pipe only facility.
Throughout
SCLAA Standard Sublease Page 26 Anduril Industries, Inc. Bldg 682C
SCHEDULE B
Location Description Notes
Throughout Bldg
682C
Remove and replace all man doors with
updated panic hardware and electronic
access control.
Where needed,
if needed.
Throughout Bldg
682C
Install interior security camera system. Where needed,
if needed.
Bldg 682C hangar
bay
Remove floor coating and polish PCC. If needed.
Bldg 682C hangar
bay
LED hangar lighting upgrade. If needed.
Bldg 682C hangar
bay
Construct hangar environmental control
systems.
If needed.
Throughout Bldg
682C
HVAC Improvements As needed.
Throughout Bldg
682C
Access control, security camera system, and
intrusion detection.
As needed.
SCLAA Standard Sublease Page 27 Anduril Industries, Inc. Bldg 682C
EXHIBIT C
SCLA RULES AND REGULATIONS
Southern California
Logistics Airport
Rules and Regulations
Amended
April 17, 2007
Exhibit C
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.1 of 38
RULES AND REGULATIONS FOR THE USERS OF SOUTHERN CALIFORNIA LOGISTICS AIRPORT; ESTABLISHING FEES FOR THE VARIOUS USES; DEFINING TERMS; PROHIBITING OR LIMITING CERTAIN ACTIVITIES; FIXING PENALTIES FOR VIOLATIONS; AND PROVIDING FOR AMENDMENTS TO
THESE RULES AND REGULATIONS AS MAY BE NEEDED FROM TIME TO TIME SECTION 1. SHORT TITLE:
1.1 These Rules and Regulations shall be referred to as the Southern California Logistics Airport (SCLA) Rules and Regulations. It may be amended by a majority vote by the Board of the Southern California Logistics Airport Authority (SCLAA).
SECTION 2. APPLICABILITY:
2.1 These Rules and Regulations apply equally to every Airport User. The Airport Operating Manual or Specifications, as applicable, adopted in accordance with FAR Part 139, and the Airport Policies and Procedures Manual are hereby made by reference a part of these Rules and Regulations.
SECTION 3. RESPONSIBILITIES
:
3.1 Management: It shall be the responsibility of the Airport Director to fairly and impartially administer these Rules and Regulations.
3.2 Users: It shall be the responsibility of every Airport User, pilot or other, to become familiar with the SCLA Rules and Regulations and to obey those Rules and Regulations. Current copies of these Rules and Regulations will be maintained reflecting any amendments and will be posted at the SCLA Administrative Office and at Million Air. Additional copies will be provided by the SCLA Airport Director through the SCLA Administrative Office to any Airport User who requests such copy.
SECTION 4. DEFINITIONS:
For the purposes of these Rules and Regulations, the following definitions and meanings shall apply unless otherwise specified:
4.1 “Air Operations Area” or “AOA” means the area upon which aircraft are able to operate and includes the runways, taxiways, taxi lanes, apron area, and the vehicle and personnel gates that lead to these areas.
4.2 “Air Carrier” means any person who undertakes directly, by lease, or other arrangement, to engage in air transportation of persons or things. An “Air Carrier” operates in various categories, under authority or certification by the FAA and holds a current FAA certificate to transport air passengers or property for hire.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.2 of 38
4.3 “Aircraft” means a device that is used, or is intended to be used, for flight in the air. “Aircraft” includes airplanes, helicopters and gliders, and lighter than air devices such as blimps or balloons, but does not include hang gliders.
4.4 “Aircraft Owner” shall mean a Person who holds title to an Aircraft.
4.5 “Aircraft Operator” shall mean the Person who is operating or controlling an Aircraft while said Aircraft is on Airport property.
4.6 “Aircraft Storage” shall have the same meaning as “Stored Aircraft”.
4.7 “Airport” means the SCLA, its buildings and facilities, all lands owned and or controlled by the SCLAA contiguous to the airport, including airspace above such land and the designated approaches thereto.
4.8 “Airport Director” means that person so appointed by the SCLAA or his designated representative.
4.9 “Airport Master Security Program” or “Airport Security Program” means the Security Program, which is the responsibility of an Airport Operator pursuant to TSA 1542.
4.10 “Airport Operations and Security Department” or means the Airport Operations and Security Department of the Southern California Logistics Airport.
4.11 “Airport Security Areas” or “Secure Areas” means Air Operations Areas, roadways, and common Air Carrier areas within terminal fa cilities (i.e. baggage makeup areas), excluding exclusive leasehold structural areas, to which public access is limited or denied under Airport Master Security Program.
4.12 “Airport Security Coordinator” or “ASC” means an individual appointed by the Airport Director, charged with the responsibility to implement and enforce the Airport Master Security Program, employed by the City of Victorville and under the direction of the Airport Director, or the Airport Security Coordinator’s designated representative.
4.13 “Airport Tenant” means an individual, partnership, corporation or other business entity, and its agents, employ ees, representatives, and subtenants which occupies or controls all or part of Airport areas, buildings or other facilities which they lease from t he Southern California Logistics Airport Authority.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.3 of 38
4.14 “Airport Tenant Security Program” shall have the same meaning as set forth in TSA1542.113, entitled “Airport Tenant Security Programs.”
4.15 “Airport User” means any Person who uses the Southern California Logistics Airport, including but not limited to, Airport Tenants and subtenants, Fixed Base Operators, Air Carriers, Aircraft Owners, Aircraft Operators, Commercial Operators, passengers, and their employees, agents, representatives, agents, successors and assigns.
4.16 “Authorized Person” means an individual authorized with a Personnel Identification Badge issued by the Airport Security Coordinator, or his designated representative, to have unescorted access authority to Airport Security Areas.
4.17 “Air Traffic” means Aircraft operating in the air or on an Airport surface, exclusive of loading ramps or parking areas.
4.18 “Air Traffic Clearance” means an authorization issued by Air Traffic Control personnel for an Aircraft to proceed under specified traffic conditions within controlled airspace.
4.19 “Air Traffic Control” or “ATC” shall mean the Air Traffic Control of the Southern California Logistics Airport.
4.20 “Airworthy Condition” means a condition wherein an Aircraft can take flight under its own power. See definition of “Non-Airworthy Aircraft” below.
4.21 “Autorotation” means a rotorcraft flights condition in which the lifting rotor is driven entirely by action of the air when the rotorcraft (helicopter) is in motion.
4.22 “Balloon” means a lighter-than air aircraft, which is not engine-driven.
4.23 “Based Aircraft,” means Aircraft that are parked on the Airport for thirty (30) days or longer and are not part of an aircraft storage program.
4.24 “Ceiling” means 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”.
4.25 “City” means the City of Victorville.
4.26 “Commercial Operator” means 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, fire fighting, agricultural aviation activities, or traffic surveillance.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.4 of 38
4.27 “Criminal History Records Check (CHRC)” means a fi ngerprint-based criminal history records check as described in 49 CFR § 1542.
4.28 “Commercial Use” means use of SCLA for revenue-producing commercial activities.
4.29 “Dismantled Aircraft” means an Aircraft which has been disassembled to a point where it is not reasonable to assume that said Aircraft can be reassembled and placed in an Airworthy Condition.
4.30 “Driving Permit” means a permit issued by the Airport Director or his designee in order for an Individual to operate a Vehicle on the Airport.
4.31 “Escort” means an Authorized Person or Authorized Persons accompanying, monitoring, directing and controlling the actions of an Individual or Individuals who are not displaying Personnel Identification Badges, and/or who are not otherwise Authorized Persons, within Airport Security Areas. The Authorized Person(s) performing an Escort must be displaying valid Personnel Identification Badges, must be accompanying the Individual or Individuals for performance of direct job duties and must ensure that those Individuals who are being escorted remain within sight and sound at all times.
4.32 “Executive Director” means the Executive Director of the Southern California Logistics Airport Authority.
4.33 “FAA” means the Federal Aviation Administration of the United States Government or any federal agencies succeeding to its jurisdiction.
4.34 “Fixed Base Operator” means any Person who rents, leases, or owns facilities located on SCLA, 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 service, including but not limited to any of the following:
1. Selling and/or servicing new and used Aircraft and
component parts;
2. Aircraft maintenance and repairs;
3. Sales and/or repair of avionics;
4. Aviation training (including ground or flight instruction);
5. Aerial photography;
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.5 of 38
6. Air ambulance service;
7. Aircraft agricultural operations (crop dusting, spraying, or the application of seed, fertilizers, pesticides, defoliants, etc);
8. Aircraft rental, charter, leasing;
9. Aircraft Storage;
10. Fuel and oil sales and servicing; and
11. Aircraft servicing or ground handling including cargo handling, baggage handling, lavatory service, water service, air starts, ground power, or other elements related to aircraft handling.
4.35 ”Flight Visibility” means the average fo rward horizontal distance from the cockpit of an Aircraft in flight, at which prominent unlighted objects may be seen and identified by day, and prominent lighted objects may be seen and identified by night.
4.36 “Ground Visibility” means prevailing horizontal visibility near the earth's surface.
4.37 “Helicopter” means a roto r driven aircraft (r otorcraft) that, for its horizontal motion, depends primarily on its engine-driven rotors.
4.38 “IFR” means Instrument Flight Rules covering meteorological conditions below the minimums for flight under visual (VFR) conditions.
4.39 “Individual” means a natural person.
4.40 “Maintenance” means inspection, overhaul, repair, preservation, and the replacement of parts, including preventive maintenance.
4.41 “Movement Area” means the runways, taxiways, and other areas of the Airport, which are utilized for taxiing, takeoff, and landing of Aircraft. The Movement Area does not include parking and loading ramps. Entry into the Movement Area requires ATC approval.
4.42 “Night” means 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.
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4.43 “Non-Airworthy Condition” means when an Aircraft cannot take flight under its own power as a result of being in disrepair or in the process of being disassembled.
4.44 “Notice of Violation” means a written notification of non-compliance with these Rules and Regulations, issued by the Airport Director or his designated representative.
4.45 “Person” means 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.
4.46 “Personnel Identification Badge” means a Personnel Identification Badge issued to an Individual by the Southe rn California Logistics Airport for purposes of granting that Individual unescorted access authority to the Restricted Area.
4.47 “Ramp” means an improved surfaced area reserved exclusively for the parking and taxiing of Aircraft.
4.48 “Restricted Area” means all areas or facilities accessible only by Authorized Persons or Persons under Escort, and including all Ramp areas and the Aircraft Operations Area (AOA).
4.49 “Roadway” means that portion of an area improved or designed or ordinarily used for vehicular travel. A roadway on the Airport Operations Area is called a vehicle service road (“VSR”).
4.50 “Runway” means an improved surfaced area reserved exclusively for the landing and taking off of Aircraft.
4.51 “Scheduled Air Carrier” means any Person providing scheduled passenger or cargo service from the Airport in accordance with a published schedule and having at least one scheduled departure per day, or no less than five scheduled departures per week, and operating under authority of the Federal Aviation Administration and the Airport.
4.52 “Security Perimeter” means the portion of the Airport that is enclosed by fencing, walls or other barriers, and to which access is controlled through designated entry points.
4.53 “SCLA” means Southern California Logistics Airport.
4.54 “SCLAA” means Southern California Logistics Airport Authority.
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4.55 “Security Devices” means equipment installed or placed by or under the direction of the Southern California Logistics Airport Authority, or designated representative, to monitor or control entranc es to and exits from Airport Security Areas. “Security Devices” include, but are not limited to, bells, sirens, communication equipment, locks and corresponding keys, emergency exits, electronic access control and other security equipment.
4.56 “Security Identification Display Area” or “SIDA” shall have the same meaning as set forth in TSA1542.205. Before being granted unescorted access to the SIDA, Individuals must undergo a Criminal History Record Check and employment history verification.
4.57 “Security Screening Area” means an access point, including entrances and exits, to the Airport Security Areas, Secure Areas and the Sterile Areas, where Vehicles, equipment, Individuals, and belongings are inspected prior to entrance.
4.58 “Sterile Area” means an area to which access is controlled by the inspection of Individuals and property in accordance with FAA and TSA requirements.
4.59 “Stirling Airport International” or “SAI” means SCLA’s development partner.
4.60 “Stored Aircraft” means aircraft that are parked at/on airport property and are part of an aircraft storage program.
4.61 “Taxiway” means an improved surfaced area reserved exclusively for use by aircraft to proceed to and from ramp and runway areas.
4.62 “Traffic Pattern” means the traffic flow that is prescribed for aircraft landing at or taking off from SCLA.
4.63 “Unnecessary Noise” means any engine nois e that is greater than the level produced when the engines are at idle except when required for taxiing of the aircraft, takeoff or landings.
4.64 “Vehicle” means every device in, upon or which any Individual or property is or may be transported or drawn upon a roadway, excepting devices moved by human power or used exclusively upon stationary rails or tracks. A bicycle shall be considered a vehicle under all portions of these Rules and Regulations, which govern right-of-way.
4.65 “Vehicle Owner” means a person who holds the legal title of a vehicle.
4.66 “Vehicle Service Road” or “VSR”. (See Roadway.)
4.67 “VVEDA” means the Victor Valley Economic Development Authority.
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4.68 “VFR” means Visual Flight Rules covering meteorological conditions, above those requiring flight under IFR conditions.
4.69 “Word Construction”: The following construction applies throughout these Rules and Regulations:
1. Words importing the singular include the plural,
2. Words importing the plural include the singular; and,
3. Words importing the masculine gender include the
feminine and the neutral gender.
SECTION 5. NECESSITY:
5.1 These Rules & Regulations are enacted to protect the health, safety and peace, and to promote the welfare and convenience of the general public using SCLA, or affected by activities related to the Airport by providing for the orderly conduct of activities on, or related to, the Airport. The use of the Airport or any of its facilities in any manner shall create an obligation on the part of the Airport User to obey all of the rules and regulations herein provided.
SECTION 6. BASED AIRCRAFT:
6.1 Any Person desiring to base an Aircraft at SCLA shall register such Aircraft at the Airport Operations and Security Department as soon as possible but not later than 24 hours after the arrival of the Aircraft. If a change in ownership occurs while the Aircraft is based at the Airport, the new Aircraft Owner shall re-register the Aircraft with the Airport Operations and Security Department, again, no later than 24 hours after the change in ownership occurred.
6.2 Except as specifically set forth in an Airport land or facility sublease, Aircraft in a Non-Airworthy Condition shall not be permi tted to remain on the Airport in excess of five (5) days without the express prior written permission of the Airport Director. Such Aircraft shall be removed from the Airport or stored at the Aircraft Owner’s expense.
SECTION 7. AIRCRAFT STORAGE AND PARKING:
7.1 Aircraft shall only be stored or parked at places as set forth in such Person’s sublease or as may be authorized by the Airport Director, and such storage or parking shall be at the sole risk of the Aircraft Owner and/or Aircraft Operator, and without any responsibility to SC LAA, VVEDA or Stirling Airport International, or any of their officers, employees, agents or representatives, for any loss of, or damage to the Aircraft while so stored or parked. The Aircraft Owner and/or the Aircraft Operator shall be responsible for the tying-down and/or securing of his Aircraft. The Aircraft Owner and/or Aircraft Operator shall likewise be responsible for any li ability arising from or caused by his
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Aircraft or his activities. All Airport Tenants desiring to store Aircraft at SCLA must notify the Airport Director in writing prior to the Aircraft arriving at SCLA.
SECTION 8. COMMERCIAL ACTIVITY:
8.1 No Person shall utilize SCLA for any revenue-producing commercial activities without the express written permission of SCLAA or its designated representative, and obtaining a City of Victorville Business License for such activities, and paying the fees and charges established for such use or license.
SECTION 9. AIRPORT FEES
:
9.1 Funding for Airport operations and capital improvements is derived through various types or classes of Airport User Fees. Airport User fees are specifically established to compensate the Airport for the us e, maintenance and repair of Airport facilities, as well as to minimize the need for on-going general taxpayer support.
9.2 A schedule of rates and charges for the use of the Airport and its facilities may be found as Attachment A to these Rules and Regulations.
9.3 Any Aircraft Owner or Aircraft Operator 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.
SECTION 10. HOURS OF OPERATION:
10.1 SCLA shall be open for public use at all hours of the day and night, subject to any restrictions imposed by the Airpor t Director due to inclement weather, condition of the landing area, presentation of special events, construction or repair activities, or similar causes. The control tower is open 24 hours a day, 7 days a week. The Airport is attended from 6:00 A.M. to 10:00 P.M. daily by Million Air. Services may be obtained from Million Air during said hours at telephone number (760) 246-7794 or UNICOM (122.85 MHz).
SECTION 11. UNATTENDED AIRCRAFT:
11.1 No Aircraft shall be left unattended on the Airport unless properly secured or within a hangar. Aircraft Owners and/or Aircraft Operators of Aircraft left so unattended shall be liable for damage to other Aircraft or property resulting from the failure to adequately secure or tie down the Aircraft.
SECTION 12. MAINTENANCE:
12.1 Unless otherwise authorized by the Airport Director, or specified as a permitted use in an Airport facility or land sublease, no Aircraft or Vehicle maintenance, other than that which is required to remove damaged Aircraft from the Runway or Taxiway(s), or that which is neces sary to replace a flat tire, shall be
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performed at SCLA except in areas specifically designated by the Airport Director for that purpose.
SECTION 13. EQUIPMENT REQUIREMENTS:
13.1 Every Aircraft using SCLA shall be equipped with a fully functional, two-way radio, except when operating into or from the Airport under an FAA waiver for radio maintenance. The ATC frequency is 118.35 MHz and the ground control frequency is 124.45 MHz. Weather and traffic advisories are broadcast on 109.40 MHz. No fixed-wing Aircraft equipped with a tailskid shall operate on any paved surface of SCLA.
SECTION 14. ACCIDENTS:
14.1 Every Person involved in, or witnessing an Aircraft operating accident on the Airport shall report promptly the details of such accident to the Airport Director, ATC, or FAA.
14.2 In addition, the Aircraft Owner and/or the Aircraft Operator, including pilot, shall report fully to the California Division of Aeronautics the details on any accident in which there is death or injury, or in which damage to the property of others exceeds $400.00.
14.3 The Aircraft Owner and/or the Aircraft Operator of an Aircraft which is damaged or wrecked in an accident shall be responsible for the prompt removal of the Aircraft as directed by the Airport Director.
14.4 Where the Aircraft Owner and/or Ai rcraft Operator of an Aircraft which is damaged or wrecked in an accident is unable to arrange for removal of such disabled or wrecked Aircraft, the Airpor t Director shall hav e the authority to move, or arrange the removal of, the Aircraft when released (if applicable) by the FAA or the National Transportation Safety Board (NTSB).
14.5 No liability shall be incurred by the SCLAA, SAI, VVEDA, the Airport Director or any of their officers, employees, agents, successors and assigns, for damage aggravated by, or resulting from, removal of an Aircraft pursuant to Section 14.4 of these Rules and Regulations.
SECTION 15. NOISE:
15.1 No Person shall operate any Aircraft in flight or on the ground in such a manner as to cause Unnecessary Noise as determined by applicable Federal or State or local laws and regulations.
SECTION 16. RESTRICTED AREAS:
16.1 Restricted Areas include those areas leased to the Army National Training Center, Advanced Unmanned Systems-Concept Exploration, Southern California Aviation, Victorville Aerospace LLC, Army Reserve, or other area that has direct access to the AOA. No Person shall enter any Restricted Area
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except (a) employees or invitees of the leaseholder, (b) Persons duly authorized by the Airport Director, including, but not limited to, Authorized Persons who have received Personnel Identification Badges, or (c) security or fire-fighting personnel.
16.2 Every Person who has access to a restricted area shall close and lock the door, gate or other device immediately after it has been used unless it is under surveillance of a Person who is responsible for controlling entry at that access point.
16.3 Every Airport Tenant whose premises have total or limited access to any Restricted Areas shall prevent access to the Restricted Areas by Persons who are not authorized to have such access.
16.4 The Airport Director’s staff is authorized to close and lock any door, gate or other device permitting access to a Restricted Area that is found open or unlocked and unattended.
16.5 Every Person to whom a key, code or access device has been issued by the Airport Security Director, or his designated staff, shall use the key, code or access device to enter a Restricted Area only in accordance with any conditions of issuance and only at Restricted Area access points.
16.6 Except where authorized by the Airport Director and subject to any conditions of issuance, no Person shall:
1. Loan or give to another Person a key, code or access device issued to him; or
2. Have possession of, or use for any purpose, a key, code or access device that was issued to him by a Person not
having authority to do so.
SECTION 17. ANIMALS:
17.1 No Person shall willfully and knowingly allow or permit any animal owned, possessed, or harbored by him to enter the Airport unless the animal is leashed or restricted in such manner as to be under control, or is in a shipping container, or is otherwise under physical restraint, nor shall any Person allow or permit such animal except “special assistance animals” (i.e. guide dog) to enter any Airport building without the approval of the Airport Director.
SECTION 18. ACCESS TO RUNWAYS AND TAXIWAYS:
18.1 No Person shall enter upon any Runway or Taxiway, or the movement area as defined by FAA, without the express consent of the Air Traffic Control Tower representative.
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SECTION 19. STARTING ENGINES:
19.1 No Person shall start any Aircraft engine at SCLA:
1. Unless a competent operator is at the controls;
2. 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 (Skid equipped helicopters do not have brakes or chocks);
3. 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, hangars, shops, other buildings, or can cause injury to passengers, spectators, or other personnel; and
4. When the Aircraft is within 50 feet of any building without prior written consent.
SECTION 20. ENGINE RUN-UPS
:
20.1 No Person shall conduct an aircraft engine run-up beyond idle anywhere on the Airport other than in areas designated by the Airport Director (with the exception of helicopters, which routinely operate with engines beyond idle as part of normal operations).
20.2 Persons who want to conduct an engine run-up beyond idle shall first call ATC on the ground control frequency, 124.45 MHz, and request clearance to one of the two engine run-up areas. ATC will advise the Airport User, given the current wind direction, to proceed to one of two designated engine run-up areas.
20.3 ATC will make the final determination of which engine run-up area should be used.
20.4 The Person requesting the engine run-up beyond idle will conduct the engine run-up in the area designated by ATC and he shall exercise the necessary caution to ensure no damage is created by the engine run-up.
SECTION 21. TAXIING:
21.1 Only those personnel that have training and are qualified to taxi a particular type of Aircraft are permitted to taxi Aircraft at SCLA.
21.2 No Person shall taxi any Aircraft into, out of, or within any hangar or other building on or adjacent to the Airport.
21.3 No Person shall taxi any Aircraft acro ss the double yellow lines on the edge of Taxiways and the apron.
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21.4 Nor shall any Person move any Aircraft under its own power on the Airport unless that Person is in full control of such aircraft, and has assured himself that there is no danger of collision wi th other Aircraft, Vehicles, equipment, buildings, or other obstacles. Aircraft shall be taxied at a safe speed.
SECTION 22. DUMPING REFUSE:
22.1 No Person shall place, deposit, or dump any garbage, cans, bottles, papers, ashes, sewage, carcass of any dead animal, offal, trash rubbish, debris or any other refuse in any location on the Airport except in containers designed for such purposes.
SECTION 23. FIREARMS:
23.1 No Person shall shoot any projectile from a firearm or other device, into, on, or across any portion of the Airport, nor have in his possession, or under his control, any firearm which is not unloaded and securely wrapped and boxed for shipment, or explosive or explosive device; provided,
23.2 However, that this Section does not apply to peace officers, military personnel, or Airport security guards who are acting in the performance of their duties as such. Firearms on Airport property are pre-coordinated with ASCs when possible.
SECTION 24. TRAFFIC PATTERN:
24.1 Every Aircraft before landing and after takeoff shall be flown as directed by ATC.
SECTION 25. TAKE-OFFS AND LANDINGS:
25.1 No aeronautical activity shall be conducted at SCLA except in conformance with current Federal Aviation Regulations, State of California law and regulations, and these Rules and Regulations.
25.2 All initial takeoffs shall commence at the end of the Runway unless cleared by the ATC Tower.
25.3 Due to the complex mix of Aircraft that utilize SCLA, there is need to limit those type of aircraft and aerial activities that represent a potential hazard to normal flight operations. The following aircraft and aerial activities are restricted from operating at SCLA except in emergency situations or with prior approval of the Airport Director:
1. Hot Air Balloons;
2. Hang Gliders;
3. Parachutists;
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4. Radio Controlled Aircraft;
5. Ultra Light Aircraft;
6. Gliders; and
7. Motorized Lighter than Air Aircraft.
SECTION 26. AIRCRAFT FUELING AND DEFUELING:
26.1 In accordance with the regulations from the National Fire Protection Association (NFPA), Uniform Fire Code (UFC), and the Department of Transportation (DOT) the following rules and regulations must be observed while fueling aircraft:
26.2 All fuel servicing must be done outside of any building or hangar. (NFPA 407 3-10).
26.3 Aircraft shall be located a minimum of fifty (50) feet away from any building openings, doors, windows, etc.
26.4 During fuel handling, no passenger shall be permitted in or on the Aircraft unless a cabin attendant is stationed at or near the cabin door.
26.5 Fueling shall not be done while an on-board engine is operating (“hot fueling”) without the permission of the Airport Director and then, it shall only be permitted when representatives of the Fire Department are standing by.
Exception is allowed for A.P.U. operation on large aircraft. (NFPA 407 3-5.1)
26.6 Equipment other than Aircraft service equipment shall not be permitted within fifty (50) feet of an Aircraft during fueling or defueling. (NFPA 407 3-
5.1)
26.7 No open flames, smoking, battery chargers, or any material or device which is likely to cause a spark shall be in use within fifty (50) feet of an Aircraft or fueling truck during fueling or defueling operation. (NFPA 407 3-7, 3-8).
Exception is allowed for Ground Power Units.
26.8 All hoses, funnels and appurtenances used in fueling or defueling activities shall be equipped properly with grounding and bonding devices to prevent possible static ignition of volatile liquids or vapors. Such grounding and bonding devices shall be used during all fueling and defueling activities.
26.9 Refueling vehicles, fuel hoses and defueling equipment shall be maintained in a safe, sound, operational and non-leaking condition.
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26.10 Gravity (hand) fueling may not be accomplished with any container having a capacity greater than five (5) US gallons. (NFPA 407 3-2.3)
26.11 All portable fuel containers must be approved and marked so as to identify the product contained therein. (UFC)
26.12 Any fuel transported by privately owned vehicles, not specifically designed for the transport of flammable liquids and appropriately placarded, are limited to a maximum of 20 U.S. gallons in an approved and marked container. (DOT and UFC)
26.13 Portable fuel containers shall be kept in approved locations, at least fifty (50) feet from any building, and secured in a cabinet or locker marked “Flammable.” (UFC)
26.14 Every Person engaged in aircraft fuel handling shall exercise due care to prevent the overflow of tanks and spilling of fuel. Fuel spills are a fuel operator’s responsibility.
26.15 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 cleaned up. In event such spills or leaks are over 10 ft. in any direction, or over 50 sq. ft. in area, or continues to flow, or are otherwise a hazard to persons or properties, the SCLA Fire Department & Haz-Mat shall be notified.
26.16 In addition, all fuel storage on the Airport shall be regulated by NFPA 407, the UFC, and be approved by the City of Victorville Fire Chief or his designee.
SECTION 27. VEHICLE OPERATIONS:
27.1 No Person shall travel on any portion of the Airport except upon the roads, walks, or places provided for the particular class of traffic, nor occupy the roads or walks in such manner as to hinder or obstruct their proper use.
27.2 Unless escorted by an Authorized Person who is authorized to drive on the AOA, no Person shall operate a Vehicle on the Airport wi thout successfully passing the SCLA driving test, being issued a Personnel Identification Badge, and possessing a valid state driver’s license, with the exception of the Airport ARFF, or Law Enforcement.
27.3 No Person shall operate a powered industrial vehicle without a Driving Permit on the Ramps, Taxiways, Runways or designated Roadways. An exception will be made for employees working within the exclusive leaseholders premises as authorized by the Airport Director.
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27.4 Persons who employ Individuals at the Airport shall be responsible to provide training for powered industrial vehicles and equipment, and for maintaining all training materials and records relating to the employee’s duties.
27.5 SCLA requires that employers "certify" that training and evaluations have been completed and maintained in the employee’s files up to 180 days upon separation of employment, and are available for inspection by the FAA, TSA and the Airport Operations and Security Department upon request.
27.6 Motor-vehicle traffic shall yield the right-of-way to Aircraft.
27.7 Every vehicle, excluding ARFF and construction vehicles operating within the Movement Area, shall have a flashing yellow beacon and carry a 2-way radio or be escorted by a vehicle so equipped. Construction vehicles must be identified with an orange and white flag and a 2-way radio or be escorted by an authorized vehicle so equipped.
27.8 Any accident, involving a motor vehicle, which results in a fatality or injury, or in property damage, shall be reported by the driver, or his representative, to the Airport Director.
27.9 No Person shall operate any motor vehicle on the airport in excess of 25 miles per hour except emergency vehicles responding to an emergency situation, or emergency vehicles involved in training or drills with prior ATC coordination. On passenger loading ramps, around parked Aircraft, and in areas immediately adjacent to hangars, speed shall not exceed ten (10) miles per hour.
27.10 Vehicles shall not be parked on the Airport other than in the manner and locations indicated by posted traffic signs and markings.
27.11 Unattended Vehicles may be parked only in designated Airport vehicle parking lots.
27.12 Vehicles parked other than specified in “27.10” and “27.11” above, may be moved by Airport personnel, and in such event a towing charge will be levied prior to releasing the Vehicle from impound. Neither SCLAA, VVEDA, the City, nor any of their respective officers, employees, agents, or designated representatives shall be liable for damages sustained by such Vehicles during said movement.
27.13 Motor vehicles shall not be driven on or across Runways or other portions of the Movement Area without permission from ATC Tower to do so. Two-way radio communications with Ground Control (on frequency 124.45) shall be required between the ATC Tower and such vehicles. Exceptions may be granted during maintenance activities as long as two-way radio
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communications control is maintained with at least one vehicle controlling the activity. ARFF vehicles may contact the ATC tower on the fire net per operational agreement.
27.14 Motor vehicles shall not be driven or parked upon, or within fifty (50) feet of Aircraft parking areas, ramp areas, or aprons without express approval of the Airport Director. Exceptions: aircraft support, airport maintenance, emergency vehicles, or fuel or service vehicles.
27.15 No Person may operate a motor vehicle or Aircraft in or on any portion of the Airport while under the influence of alcohol or drugs.
27.16 No Vehicle shall be operated on the Airport unless the Vehicle has been registered to drive on the Airport with Airport Operations. To register a Vehicle to drive on the Airport requires: a) proof of ownership, b) proof of vehicle registration with the Department of Motor Vehicles for State of California, or the Department of Motor Vehicles for another State; and c) proof of insurance as set forth in Section 37 of these Rules and Regulations.
27.17 Vehicles passing through electronic access perimeter security gates are required to stop just past the gate and wait for the gate to fully close before continuing. Vehicle operators should ensure no unauthorized persons enter the AOA while the gate is closing. Vehicle entry procedure is one vehicle per gate activation unless the vehicles following are under Escort.
SECTION 28. FIRE HAZARDS:
28.1 No Person shall light or smoke any cigarette, cigar, pipe, or similar object in the following Airport areas:
i. Within any hangar, or fuel handling or fuel storage areas; ii. Inside any Aircraft (whether or not such Aircraft are parked or stored) or within fifty (50) feet thereof;
iii. Within fifty (50) feet of any "No Smoking" sign posted; iv. Within any Vehicle operating on the AOA;
v. Within any building on the Airport.
28.2 No Person may use flammable liquids, solv ents, or substances to clean any Aircraft, engine, part, or accessory thereo f, within any hangar or building except a building specially designed for that purpose and approved in writing by the Airport Director. Such approval shall only be granted when the Airport Director approves the ventilation provisions, fireproofing, and fire-extinguishing equipment.
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28.3 No Person shall light or use any open flame for any purpose in any hangar or other building on the airport without the prior written consent of the Airport Director and Fire Chief.
28.4 No Person shall operate any welding or cutting equipment (electric or gas) anywhere on the Airport without prior written approval of the Airport Director and the SCLA Fire Department. A welding permit is required and may be obtained at the fire station.
28.5 No Person shall clean or degrease any Aircra ft or part thereof except at or in a maintenance station properly equipped for such purposes, or in a space designated or authorized by the Airport Director.
28.6 No Person shall store or stock any mate rial or substance, or lease or permit such activities in or on the Airport in such a manner, or of such nature, as to constitute a fire hazard. No Person shall keep, store or discard any flammable liquid, gas, signal flare, or other flammable material in any hangar, shop, building, room, enclosure, or other place on the Airport except in areas specially designated by the SCLA Fire Department for such purpose.
28.7 Lessees of hangars, shops, or other Airport areas shall provide suitable metal receptacles with hinged lids for the storage of oily waste, rags, and other similar rubbish. The lessee shall remove all such materials at frequent intervals.
28.8 Every lessee shall maintain his leased area clean and reasonably free of oil, grease, waste, other flammable materials and weeds.
28.9 Lessees shall provide, and maintain in proper working order, adequate and readily accessible fire extinguishers. Ea ch such extinguisher shall bear a suitable tag, which indicates the most recent date of inspection or servicing.
SCLA Fire Department shall approve all extinguishers, their type, and location.
28.10 No Person shall move, relocate, or otherwise disturb any wheeled fire extinguisher on the Airport without t he permission of the SCLA Fire Department unless specifically for emergency use.
28.11 All fires on the Airport, regardless of size, even if extinguished, shall be immediately reported to the SCLA Fire Department without delay.
SECTION 29. FUEL SALES:
29.1 No Person shall deliver aviation fuels or lubricants to, or dispense such fuel from, at, or upon the Airport without a lease or permit from the Airport Director.
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29.2 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, other than to a central fuel person or location at or upon the Airport, other than to a central fuel service stand provided by the Airport, there is levied against such lease or permit holder, a flowage fee of ten cents (.10) for each gallon of fuel so delivered.
29.3 No fuel shall be stored anywhere on the Airport except approved by the Airport Director and the SCLA Fire Department.
SECTION 30. SECURITY:
30.1 Though not required, SCLA operates under the guidelines established by FAR Part 139 “CERTIFICATION AND OPERATIONS SERVING CERTAIN AIRCRAFT OPERATORS.” To this end, SCLA has prepared and implemented a security program that parallels the requirements contained in TSA 1542. This program includes the following elements: Personnel Identification Badging, controlled access to the Air Operations Area (AOA), driver licensing for personnel operating on the AOA, Vehicle registration, and perimeter security. All personnel operating at SCLA are required to abide by the SCLA Airport Master Security Program.
30.2 Personnel Identification Badges. Only those Individuals that have a need to be on the AOA will be issued a Personnel Identification Badge and granted unescorted access to the AOA and Restricted Areas. Individuals that require access must apply for a Personnel Identification Badge at the Airport Operations and Security Department. Lost or stolen Personnel Identification Badges must be reported to the Airport Operations and Security Department immediately. The application process includes:
1. A ten-year employment/education or unemployment history verification check, with five years verified by the Individual’s former employer(s), and
2. A CHRC, which is information gathered from the Federal Bureau of Investigation, provided to SCLAA after submitting a Live Scan Fingerprint to the Transportation Clearing House.
30.3 Fingerprints are collected by the Airport Security Coordinator, or his designated representative, at the expense of the Individual’s employer.
30.4 A Fingerprint-based Criminal History Records Check as described in TSA 1542.209 is required before authorized unescorted access to the Airport is granted. The results of the CHRC will be among the determining factors as to whether the issuance of a Personnel Identification Badge is granted.
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30.5 Identification for Authorized Persons contains the Individual’s photograph, name, company name, expiration date, identification number and color blocks that indicate authorized access areas granted to the badge holder.
30.6 Individuals who have a need to be within the Airport Operations Area (AOA) are required to attend an Airport Familiarization and Security Identification Display Area (SIDA) class and will be required to display a Personnel Identification Badge while operating in such areas.
30.7 The Airport Badging Office issues Non-Driving I dentification Badge and Identification Badges with Driving Permit, upon completion of a SIDA Class and AOA Drivers Training and satisfactory score upon completion of a written test. Driving permits will be determined and issued in accordance with the applicant’s job related duties on the airport.
30.8 The Airport Security Coordinator will confirm or deny an applicant’s request for a badge based on verification of the CHRC and the
employment/education or unemployment history verification check, with five years verified by the employer, and the need of the applicant to access the AOA. If a Personnel Identification Badge is warranted, the Airport Security Coordinator, or his designated representative, will issue the Badge.
30.9 All Personnel Identification Badges issued by the Airport Operations and Security Department are the property of Southern California Logistics Airport Authority and MUST be returned upon expiration, separation of employment (for any reason), when the job function no longer requires Personnel Identification Badge, and upon demand of staff from the Southern California Logistics Airport. Any misuse or willful failure to return a Personnel Identification Badge is punishable by fine as dictated in the Airport Rules and Regulations. Personnel Identification Badges are non- transferable and must be used only by the Individual to whom they are issued.
30.10 No Individual shall enter the AOA of the Airport without a Personnel Identification Badge unless the Individual is accompanied by an Authorized Person with a Personnel Identification Badge who shall be fully responsible for the unbadged person being escorted. Fire department personnel responding to an emergency wearing uniforms or other identifying clothing, shall not be required to wear an identification badge.
30.11 No Authorized Person shall Escort any Individual who is not in the performance of job-related duties and who requests access to the Airport as a visitor without the consent and approval of the Airport Director. Person(s) denied access to the Airport by Airport security officers, must abide by the decision of the security officers under the direction of this rule. Visitor Escort must be conducted during normal business hours of the Airport
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Operations and Security Department, unless prior approval of the Airport Director has been established
30.12 Authorized Persons shall always prominently display their Personnel Identification Badge while on the AOA. Failure to prominently display an issued Personnel Identification Badge while on the AOA shall constitute a violation for which a fine shall be assessed as set forth in Section 43,
PENALTIES AND APPEALS
.
30.13 Individuals who do not display a Personnel Identification Badge, and who are not under Escort by an Authorized Person displaying a Personnel Identification Badge, shall immediately be reported to the Airport Director and shall be escorted off the AOA by the Airport Director or his staff.
30.14 Authorized Persons who have been issued a Personnel Identification Badge and are involved in an accident while operating on the AOA will be asked to submit to a drug-screening test. Authorized Persons who refuse to submit to the drug-screening test will be considered as having failed the test and the Authorized Person will be considered to be under the influence of drugs or alcohol.
30.15 Controlled Access to the AOA
. Any Airport Tenant that has direct access to
the AOA, should, because of their immediacy of access, be considered part of the AOA. These Airport Tenants shall therefore take measures to protect access to the AOA. As required by TSA 1542.113 Airport Tenant Security Programs, the Airport Tenant must assume responsibility for specified security measures of the Secure Area, AOA, or SIDA. Airport Tenants are encouraged to develop individual security programs designed to meet the needs of their particular businesses. In all cases such security programs must be approved
in writing by the Airport Director.
30.16 While on the AOA, customers and clients of the Airport or Airport Tenants must be under Escort at all times. Failure to provide an Escort may constitute the issuance of a Notice of Violation that could result in sanctions.
See Section 43, PENALTIES AND VIOLATIONS
for a discussion on the
scope of fines/penalties associated with violations of the Airport Security Program.
30.17 The Airport Operations and Security Department administers the licensing program for drivers on the AOA. This program involves a study element that describes the procedures for driving on the AOA at SCLA. A written test will be administered and all applicants must pass the test in order to receive a license to drive on the AOA.
30.18 Vehicle Registration for driving on the AOA. All Vehicles that operate on the AOA must be registered with the Airport Operations and Security
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Department. All Vehicles that operate on the AOA will be issued a Radio Call Sign that must be utilized while on the AOA. Airport Standard Operating Procedure No. 200-01 describes the Radio Call Sign Procedure.
30.19 Perimeter Security
. The Airport is surrounded by an eight-foot (8’) high chain link fence. Barbed wire is placed atop this fence. There are numerous locked gates that access the Airport perimeter. Airport Tenants that are situated on the immediate perimeter of the AOA must employ secured personnel doors.
30.20 All Persons that operate on the Airport are charged with the responsibility of maintaining the security of the Airport. To this end, Persons who observe breeches in security are to call said incidents to the attention of the Airport Operations and Security Department.
30.21 A Person’s responsibility under Section 30.20 includes breeches to the procedural elements of the Airport Security Program, as well as the physical elements of the Airport Security Program (perimeter fence, vehicle gates, etc.).
30.22 The issuance under this Section of either (i) a Personnel Identification Badge, or (ii) a Personnel Identification Badge with Driving Permit to drive on the AOA, shall be conditioned upon the express consent of the Individual to whom the badge is issued, to a drug and alcohol screening in the event that such Individual is involved in an accident while on Airport property.
30.23 In the event that an Individual to whom a Personnel Identification Badge or Personnel Identification Badge with Driving Permit has been issued (a) tests positive for the use of a controlled substance not prescribed by a physician or has a blood alcohol content equal to or in excess of .08, or (b) refuses to consent to a drug and alcohol screening, then such Individual’s Personnel Identification Badge and/or Driving Permit shall be revoked by the Airport Director.
30.24 A Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will remain revoked until the Individual’s employer petitions the Airport Director in writing, to have said Individual’s Personnel Identification Badge and/or Driving Permit reinstated.
30.25 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations remains the prerogative of the Airport Director; however, reinstatement will not be unreasonably withheld.
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30.26 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will depend on, as a minimum, the employer’s verification of a negative drug test as part of a return to duty test. Any Individual who has verified positive drug test results on two drug tests will not be permitted to thereafter work or drive on the AOA, regardless of whether such Individual is accompanied by an Individual properly in possession of a Personnel Identification Badge and/or Permit.
SECTION 31. AIRPORT SECURITY AREAS:
31.1 Unauthorized Entry and Exit : No Person shall seek entry to or exit from Airport Security Areas except through designated entrances and exits. No Individual shall seek entry to or exit from Airport Security Areas over, under or through fencing, walls, window, air or other vents.
31.2 Only Authorized Persons, or those Individuals under Escort, shall have access by any means to Airport Security Areas.
31.3 A Person performing an Escort must, at all times, be in a position to actively monitor, direct and control the movements and actions of the accompanied Individual(s).
31.4 No Individual shall enter/exit or allow another Individual to enter/exit into Airport Security Areas except by using his Personnel Identification Badge.
No Individual shall follow another Individual into an Airport Security Area without first using his or her Personnel Identification Badge through any electronic access installed at the entry/exit point. This provision does not apply to an Individual under Escort
31.5 No Individual shall drive a Vehicle into Airport Security Areas unless the Individual has used his or her Personnel Identification Badge to open any electronic access installed at the entry point. No Individual shall allow other Vehicles to follow or tailgate in Airport Security Areas. This provision does not apply to Vehicles under Escort.
31.6 No Person shall tamper with or in any way hamper the effective operation of Security Devices.
31.7 Security of Access Points
: No Person shall leave open, propped or
unsecured any door, gate or access point leading to or allowing access to Airport Security areas. No Person shall hold, prop or cause a door, gate or access point to be open beyond the period of time allowed by a Security Device unless an Authorized Person attends the door. When an Authorized Person is attending a security door, he or she must be physically present at the door and must use his or her Personnel Identification Badge to activate additional time for the door to be open.
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SECTION 32. R ESPONSIBILITY OF AIRPORT TENANTS:
32.1 Adherence to the Security Rules and Regulations : Airport Tenants with access to Airport Security Areas on their leased area shall follow these Rules and Regulations by posting signs, approved by the SCLAA, which prohibit access into the Airport Security Areas. Airport Tenants with access to Airport Security Areas shall at all times keep the access secured or staffed in a manner that prevents unauthorized Individuals from accessing Airport Security Areas. Airport Tenants shall retain keys or other means of access to Airport Security Areas under their control and issue such access only to Authorized Persons.
32.2 Airport Tenants with access to Airport Security Areas shall appoint at least one employee of the Airport Tenant as the security contact primarily responsible for the Airport Tenant’s leased area which access Airport Security Areas. Airport Tenants shall advise the Airport Security Coordinator in writing of the Individual or Individuals at all times having such responsibility.
32.3 Airport Tenants must provide a quarterly employee roster to the Airport Operations and Security Department in the months of January, April, July and October, and immediately notify the Airport Operations and Security Department of employee separation.
32.4 Airport Tenants must immediately confiscate Personnel Identification Badges, with or without access media, as well as any keys that would allow access to the Airport, from Individuals upon separation of employment. Any misuse or willful failure to return a Personnel Identification Badge is punishable by fine as dictated in these Rules and Regulations.
SECTION 33. OTHER PROHIBITED ACTS:
33.1 Bypassing Security Screening Area : No Individual shall enter a Sterile Area through a Security Screening Area unless first going through equipment that has been installed for inspection of Individuals and their belongings. Armed federal and local law enforcement officers on official duties at the Airport, airport operations and maintenance personnel, and others exempted by the FAA do not have to be inspected, provided they follow FAA and TSA regulations.
33.2 Statements Against Aviation Safety or Security
: No Person shall make a
statement to another so as to indicate that the Person or another may have possession of a firearm, bomb or explosive device while at the Airport.
33.3 Interference with Airport Personnel : No Person shall intimidate, threaten, hinder or obstruct Airport Personnel or Airport Security Officers in the performance of his or her official job duties or lessen the ability of such person to perform his or her duties.
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33.4 Interference with Flight Operations : No Person shall intimidate, threaten, hinder or obstruct an aircraft crewmember in the performance of his or her official job duties or lessen the ab ility of such aircraft crewmember to perform his or her duties.
33.5 Unattended Baggage
: No Person shall leave any bag, luggage, box or
container unattended in the terminal areas of the Airport, which are accessible to the public.
33.6 Presenting a Weapon at Security Screening Area
: No Person shall place
firearm(s), explosive device(s), knife/knives or other FAA/TSA prohibited items that could be used as a weapon onto inspection equipment at a Security Screening Area without first declaring such item(s). Only Persons authorized by the TSA may test Security Screening Areas.
SECTION 34. ENFORCEMENT:
34.1 Notices of Violation : The Airport Operations and Security Department will conduct inspections and enforce violations of these Rules and Regulations, Minimum Standards, and any permits issued hereunder regarding activities at the Airport. All Personnel Identification Badge holders and persons with access cards will be subject to a Notice of Violation (NOV) when reasonable grounds exist to believe that Rules and Regulations, Minimum Standards or a permit have been violated, either by commission or omission.
34.2 NOV’s will be monitored and issued by Airport Operations and Security Department personnel or by recommendation from an Authorized Person of Authority. A copy of the NOV will be given to the Personnel Identification Badge holder, or the Person(s) observed committing the violation(s).
34.3 The NOV may serve as a notice only or may include a penalty ranging from suspension to revocation. Any violation of a severe nature as determined by the Airport Director will warrant immediate suspension or revocation of the Personnel Identification Badge. Severe violations include, but are not limited to, any violation that may result in property damage, injury, runway incursions, or other safety hazards, or that threatens the environment or public welfare.
34.4 The receipt of three (3) NOVs, which have not been appealed or that have been upheld upon appeal, within a twenty-four (24) month period will be considered grounds for revocation of the Personnel Identification Badge.
34.5 When an NOV or sanction is issued, a letter indicating as such will be sent to the Individual’s employer, advising the employer of the violation.
34.6 Upon written request, the Airport Security Coordinator may review and recommend modification of the NOV.
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SECTION 35. SUSPENSIONS:
An Individual’s authorization to use a Personnel Identification Badge may be suspended for any of the following reasons:
1. Violation of these Rule and Regulations.
2. Violation of any rule or regulation of SCLAA for which a criminal penalty may be imposed.
3. Violation while on Airport property of any law of the State of California or the United States for which a criminal penalty may be imposed.
4. Actions which interfere with or threaten the operation of the Airport, or the comfort, safety or convenience of passengers, Authorized Person’s employed by the City of Victorville, or otherwise constitute just cause for suspension.
35.2 The Airport Director or an Airport Security Coordinator shall issue written notice of the Suspension, which shall state the nature and date of the violation, the length of Suspension, and the date the Suspension shall begin and the Individual’s right to have a hearing pursuant to the provisions of Section 43 of these Rules and Regulations. The suspension may be for up to ninety (90) days as determined by the Airport Director or the Airport Security Coordinator.
SECTION 36. REVOCATION:
36.1 An Individual’s authorization to use a Personnel Identification Badge may be revoked for any of the following reasons:
1. Any act that seriously endangers property or Persons or indicates willful or reckless disregard for, and which has an immediate impact on the health, safety or welfare of the public or poses a serious threat to the security of the Airport.
2. A violation warranting Suspension where the Individual has had a previous suspension for the same or similar offense.
36.2 The Airport Director or Airport Security Coordinator shall issue a written notice of Revocation, which shall state the nature and date of violation, the date and Revocation shall begin, and the Individual’s right to a hearing pursuant to the provisions of Section 43 of these Rules and Regulations.
SECTION 37. LIABILITY INSURANCE:
37.1 Every Airport User shall carry insurance as required by their lease, sublease or permit to operate on Southern California Logistics Airport and as required
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by State and Federal regulations. Any person operating a vehicle within the fenced area of the Airport, who does not have a lease, sublease, or Operating Permit, is required to have comprehensive automobile insurance with combined single limits for bodily injury and property damage of not less than $1,000,000.
37.2 Airport Users shall provide Certificates of Insurance naming VVEDA, SCLA and Stirling Airports International as Additional Insured’s with respect to their lease, sublease or permit. These Certificates of Insurance shall also provide for a 30-day Notice of Cancellation for those policies listed on the Certificate of Insurance.
37.3 The Airport User shall formally advise its Insurers that all Vehicles in use with or without valid Airside Vehicle Permits are intended to be operated on that portion of the Southern California Logistics Airport premises known as Airside, and should those Insurers exclude, limit, or otherwise restrict coverage while the Vehicle is on Airside, the Occupant shall obtain and keep in full force and effect at all times, a policy of Aviation Liability insurance covering both license-plated and unlicensed plated Vehicles while on Airside
SECTION 38. ILLEGAL ACTIVITIES:
No Person shall:
38.1 Take or use any Aircraft, aircraft parts, instruments, or tools pertaining thereto, which are owned, controlled, or operated by any other Person, while such Aircraft, parts, instruments, or tools are stored or otherwise left on SCLA, or within its hangars, building, or facilities , without the written consent of the owner/operator thereof, except upon satisfactory evidence of the right to do so duly presented to the Airport Director, or authorized by him or so ordered by a court of competent jurisdiction.
38.2 Land, takeoff, taxi, or otherwise operate any Aircraft on, at, or from SCLA when he 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 specific authorization from the Airport Director and/or FAA if required, or his designated representative.
38.3 Operate any Aircraft on or at the Airport, or on any Runway thereof, when the Airport or Runway has been closed to traffic by the Airport Director or other legal authority, or when such closure has been indicated by the placement of an "X" at each end of the closed Runway.
38.4 Operate any aircraft on, at, or in the vicinity of SCLA in willful or wanton disregard for the safety of persons or property, whether his own or that of others.
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38.5 Engage in the performance of any aerobatics, stunt, or 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 without the permission of the Airport Director or ATC.
38.6 Engage in the sale of any goods, wares, merchandize, or services at or upon the Airport without first having secured from the Airport Director a lease or permit therefore, and paying any required fees for such lease or permit.
38.7 Board an aircraft at the Airport without the prior approval of the Aircraft’s owner or representative.
SECTION 39. AIRPORT CLOSURE:
39.1 The Airport Director 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 determines that such operations, or their continuance, would be hazardous.
39.2 Causes for such closure could include, but would not be limited to, adverse weather conditions, runway maintenance or re pairs, runway obstacles, fire, Aircraft or other accident.
39.3 The Airport Director or his designee shall immediately notify the Riverside Flight Service Station and issue a NOTAM, advising of the closure.
SECTION 40. THRU-THE-FENCE ACTIVITIES
:
40.1 Thru-the-fence activities, defined as accessing the Airport from private land outside the airport perimeter for the purpose of utilizing or otherwise benefiting from the Airport, are strictly prohibited.
SECTION 41. SEVERABILITY:
41.1 Should any article, section, sub-section, sentence, clause or phrase of these Rules and Regulations be held invalid or unconstitutional for any reason, such decision shall not affect the remaining portion of these Rules and Regulations.
41.2 The SCLA Authority hereby declares that it would have adopted these Rules and Regulations and each article, section, sub-section, sentence, clause or phrase, regardless of the fact that any one or more articles, sections, sub- sections, sentences, clauses, or phrases be declared invalid or unconstitutional.
SECTION 42. DISMANTLING AIRCRAFT:
42.1 No Person shall dismantle an Aircraft of any type outside of a hangar unless they receive prior written approval from the Airport Director. Any Person permitted to dismantle an aircraft outside of a hangar must:
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42.2 Submit a written request to the Airport Director describing the type of aircraft to be dismantled, the dismantling procedures to be employed, the procedures for disposing of all dismantled material, toxic material clean up and abatement procedures, and the schedule for dismantling an aircraft.
42.3 Conduct all aircraft dismantling within a fenced in area to prevent visual contact with the dismantling activity.
42.4 Return the area used for dismantling to its original condition as approved by the Airport Director in his/her sole discretion.
42.5 Procure a performance bond to ensure any contamination, remediation of contamination and the dismantling area is returned to its original state. The amount of the bond will depend upon the pr ocedures set forth in the request and the potential exposure and land clean-up cost to the Airport.
42.6 Receive the prior approval of the SCLA Fire Department.
42.7 Adhere to all City of Victorville, State and Federal environmental regulations.
42.8 Upon receipt of the information set forth in 42.1 through 42.7 above, the availability of land to conduct dismantling and other airport operating requirements and/or constraints, the Airport Director will either approve the Aircraft dismantling request by issu ing a written Letter of Permit with appropriate indemnities and airport protection provisions to the requesting person or business or deny the request by providing a Letter of Denial to the requestor.
SECTION 43. PENALTIES AND APPEALS:
43.1 Fixing penalties for violations: Any Airport User including, without limitation, sublessees, suppliers, contractors, guests, invitees, or others that do not adhere to or violates these Rules and Regulations shall be sanctioned.
43.2 Sanctions may include, but are not limited to, a fine paid to the Airport, denial of the use of the Airport for a specified period of time, and/or a referral to the Transportation Security Administration and/or Airport Authority Attorney with a recommendation for criminal prosecution.
43.3 In determining the sanctions to be imposed, the Airport Director may take into consideration any mitigating or aggravating factors that may exist including, without limitation, the number of previous violations and the cooperation of the person involved.
43.4 Fines shall be assessed from $ 100.00 to $10,000.00 per day per incident depending on the severity of the violation.
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43.5 Should an infraction occur, and should the infraction and situation surrounding the infraction warrant, fines will be assessed on a graduated/increasing basis.
43.6 All fines assessed to a sublessee, or to a sublessee’s suppliers, contractors, guests, invitees, or others, will be added to a Sublessee’s monthly rent and subjected to late fees and default provisions as set forth in a Sublessee’s land or facility Sublease.
43.7 Fines assessed to Airport Users who do not have a land or facility Sublease at SCLA, shall be paid before the Airport Us er is permitted to use the Airport again.
43.8 Continuous violation of these Rules and Regulations shall result in denial to use the Airport. Attachment B provid es an example of fines as may be applied.
43.9 Removal from Airport Premises
: The Airport Director, or his designated
representative, may order removal of anyone from the Airport who knowingly and willfully violates any provision of these Rules and Regulations.
43.10 Recourse under Tenant’s Lease : SCLAA may take action against Airport Tenants under their lease agreements irrespective of any other penalties under these Rules and Regulations.
43.11 RIGHTS OF APPEAL
: Fines and other sanctions may be appealed to the
Executive Director. Requests for appeal must be made in writing to the Executive Director within ten (10) busi ness days from the date the fine was presented to the Airport User.
43.12 The Executive Director (or his designated representative) will convene an administrative hearing and shall serve as the hearing officer (the “Hearing Officer”). Failure of any Airport User to properly file an appeal shall constitute a waiver of its right to an administrative hearing and adjudication of the fine or any portion of the total amount of the fine.
43.13 The Airport User or other Person in receipt of the fine or sanction shall be provided a written notice of the date, time, and location of the hearing. The notice will include the date, time and nature of the alleged violation.
43.14 The hearing shall be conducted in an informal manner and strict rules of evidentiary procedure will not apply. The Hearing Officer may consider any evidence that is reasonably probative and aids in the determination of the facts.
43.15 Parties are entitled to be represented by an attorney of their choice, to bring witnesses, and present documentary evidence. Parties have the right to have
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all records or documents relevant to the proceedings provided to them at the cost of reproduction.
43.16 At the conclusion of the appeal hearing, and pursuant to the Hearing Officer’s authority, the Airport Director’s imposition of sanctions may be upheld, modified or reversed. Parties will be provided with the results of the hearing in writing, including any penalties imposed by the Hearing Officer. The decision of the Hearing Officer is final.
SECTION 44. EFFECTIVE DATE
44.1 These changes contained in the Southern California Logistics Airport Rules and regulations shall be of full force a nd effective immediately upon filing of same with proof of publication with ap proval of the Southern California Logistics Airport Authority.
____________________________
Peter R. Soderquist
Airport Director
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Attachment A
SOUTHERN CALIFORNIA LOGISTICS AIRPORT
Airport Rates and Charges
Introduction / Guiding Principles:
A.1 In establishing a Schedule of Ai rport Rates and Charges, the Southern California Logistics Airport Authority (the “Airport Authority”) is required by federal regulations to ensure that charges are fair, reasonable and non- discriminatory. Further, Airport Rates and Charges are to be reasonably consistent with the rates and charges being applied by other airports for similar types of activities, unless ther e is a special situation unique to the Southern California Logistics Airport.
A.2 The Airport Authority fully recognizes the FAA prohibition against the diversion of Airport revenues for non-airport purposes. It is recognized that failure to collect fair and reasonable fees and market-based rents for the use of Airport property, facilities and equipment can be considered a form of Revenue Diversion. The Authority also recognizes the FAA requirement to establish a Schedule of Rates and Charges that will permit the Airport to be as self- sustaining as possible.
Airport User Fees Defined:
A.3 Aircraft Landing Fees: The Southern California Logistics Airport Authority (SCLA) has expended a significant amount of funds to provide aviation facilities for the benefit of aircraft owners and operators. Landing fees are assessed to help offset the cost of operating and maintaining the Airport’s runway, taxiway, and aircraft parking ramp areas. Landing fees are based upon the Certified Maximum Gross Landing Weight (MGLW) of the aircraft multiplied by the Airport Authority’s established landing fee rate per 1,000 pounds of Certified Maximum Gross Landing Weight.
A.4 Commercial Aircraft: The Airport Authority assesses a landing fee on each aircraft landing conducted by an airline or other commercial Air Carrier, operating under FAR Part 121 (airline), Part 129 (international airline), Part 135 (air taxi), or other similar regulation, regardless of the purpose of the landing.
A.5 Signatory Landing Fees: Signatory landing fees are assessed to an airline, or other large (over 75,000 lbs MGLW) commercial aircraft operator having a Signatory Operating Agreement with SCLA. To be eligible for Signatory Operating Agreement status, the operator must have one or more of the following:
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i. A lease with the Airport Authority of a ground site having at least 10,000 square feet or more that is used to accommodate the organization’s primary base of
business on Airport property.
ii. A lease with the Airport Authority, or an approved sublease, of a building, or part of a building totaling at least 4,000 square feet that is used as the
organization’s primary base of operations on the
Airport.
iii. Commercial Airlines operating under the military
Civilian Reserve Air Force (CRAF) program.
A.6 Non-Signatory Landing Fees: Non-signatory Landing Fees are assessed at a rate of 125% of the Signatory Landing Fee rate for large commercial operators (over 75,000 lbs MGLW) using the Airport who do not have Signatory Operating Agreement status with the Airport Authority, or have an agreement, but do not meet any of the Signatory eligibility criteria specified in paragraph 2 above. The Non-Signatory Landing Fee is intended to compensate the Airport Authority for the operator’s use of the Airport’s runway and taxiway areas as well as compensation for the privilege of being able to access the airport to conduct business.
A.7 Private Aircraft: The Airport Authority assesses a landing fee on each aircraft landing conducted by large private operators (over 75,000 lbs MGLW) operating under FAR Part 91, or other similar regulation, regardless of the purpose of the landing. Landing fees for private aircraft that are operated under FAR Part 91 and are based at the airport under conditions set forth in a long term agreement with the Authority will be charged landing fees as required by that agreement.
Aircraft Parking Fees:
A8. Signatory Aircraft Parking Fees: Ai rcraft having Signatory status as defined in A.1 above, are not required to pay parking fees during the time an aircraft is in the loading/ unloading process (24 hour maximum). Signatory Aircraft are also exempt from aircraft parking fees on the weekend, and over national holidays, as long as the weekend/holiday parking occurs in the middle of the loading/unloading process. Signatory Aircraft that are not in the unloading/loading process, and/or use aircraft parking areas in excess of the 24-hour maximum, are required to pay established aircraft parking fees.
A9. Non-Signatory Aircraft: Non-signatory aircraft are required to pay established aircraft parking fees.
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A10. Private Aircraft: All private aircraft (both heavy and light) are required to pay aircraft parking fees. Aircraft that are based at the airport under conditions set forth in a long term agreement with the Authority will be charged parking fees as required by that agreement.
A.11 Aircraft Storage Fees: Aircraft storage fees are charged to aircraft that are stored on areas other than the main parking apron. Fees are payable under one of three different categories: under 50,000 lbs MGTW, narrow body aircraft, and wide body aircraft. Remote aircraft storage is occasioned by the many acres of closed runways and taxiways that make a suitable “hard stand” for aircraft parking. The availability of these areas is directly related to the longevity of these surfaces. As these surfaces fail to be usable for aircraft parking, they will be removed from the inventory of remote parking.
The Airport Authority makes no representation that it will maintain these surfaces and those businesses that store aircraft thereon do so at their own risk.
A.12 Fuel Flowage Fees: A substantial percentage of the fuel dispensed at SCLA is “pre-purchased” by large aircraft operators that enjoy discounts based on the large volumes of fuel these carriers purchase nationally. This pre- purchased fuel is stored in SCLA’s fuel farm to which SCLA assesses a storage fee . SCLA also assesses a flowage fee on each gallon of fuel delivered from the fuel farm to the aircraft.
A.13 Fuel flowage and fuel storage fees reflect the intent of the Airport Authority to generate reasonable revenues for the use of the airport’s fuel storage facility, while at the same time, encouraging aircraft operators to use SCLA as a base of operations.
A.14 All fuel sold at SCLA is subject to the described fuel flowage fees with following exceptions:
1. Non-Signatory Air Cargo Operators: Commercial Air Cargo Operators that are considered Non-Signatory as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft, shall pay flowage fees and storage fees.
2. Signatory Cargo Operators: Commercial Air Cargo Operators that meet the requirements of Signatory status as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft shall pay the appropriate storage fee.
3. Non-Commercial Signatory: Based operators (signatory) that are non-commercial (Part 91) will pay the appropriate storage fee and a modified flowage fee as provided in the operators lease agreement.
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Southern California Logistics Airport
Schedule of Rates and Charges
Landing Fees:
Signatory airline (over 75,000 lbs MGLW) $ .85 per 1,000 pounds MGLW Non-signatory airline (over 75,000 lbs MGLW) $1.06 per 1,000 pounds MGLW Private aircraft (over 75,000 lbs MGLW) $ .85 per 1,000 pounds MGLW Fueling Fees
:
(Flowage fee -$ .08 per gal; Storage fee -$ .02 per gallon) Aircraft Parking Fees: (commercial aircraft)
Signatory airline $200.00 per day
Non-signatory airline $200.00 per day
Transient Aircraft Tie down Fees: (general aviation aircraft; main ramp) Single engine . . . . . . . . . .. . .. . . . . . . $ 5.00 per day $ 80.00 per month Multi engine . . . . . . . . . . . . . . . . . . . . . $ 10.00 per day $120.00 per month Mid-weight aircraft (12.5K lbs to 25K lbs) $ 20.00 per day $200.00 per month Large aircraft (25Klbs to 100K lbs) $ 30.00 per day $300.00 per month Narrow body . . . . . . . . . . . . . . . . . . . . .$100.00 per day $1,000.00 per month Wide body . . . . . . . . . . . . . . . . . . . . . . . $200.00 per day $2,000.00 per month Wash Rack:
Any aircraft……………………………….........$ 40.00 per hour $240.00 per day Live Scan Fingerprint Transmission Fee Per Applicant for Criminal History Records Check:
Call Airport Operations at (760) 243-1915 for Fingerprint transmission fees.
Personnel Identification Badge
Personnel Identification Badge with or without access card……….…...$ 10.00 Lost Personnel Identification Badge …………………………………….$ 100.00 (Fees are subject to change)
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.36 of 38
Notes:
Parking charges for Signatory Airlines do not apply for the first 24 hours, weekends, or holidays. Transient aircraft tie down fees apply to aircraft remaining overnight. Transient aircraft remaining parked longer than overnight Military aircraft are exempt from paying landing, parking and storage fees.
Definitions
:
Signatory –
Having a lease or sublease of a ground site or building space on the Airport in accordance with the Airport Authority’s Rates and Charges Policy; or, an airline having a contractual airline operating arrangement with an organization that has such a lease on airport property.
Non-signatory
–
Those operators who do not have an On-Airport Lease Agreement with the Airport Authority in accordance with the Rates & Charges Policy.
MGLW
– Maximum (certificated) Gross Landing Weight
MGTW – Maximum (certificated) Gross Takeoff Weight
Narrow body aircraft - i.e. B-727; B-737; DC-9; MD-80
Wide body aircraft - i.e. B747; B-777; DC-10; MD-11
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.37 of 38
Attachment B
SCLA
SCHEDULE OF FINES
B.1 In most situations, a sanction or fine will be levied upon the employer of the Individual involved in the infraction. All sanctions or fines assessed will be added to the employer’s basic monthly rent and subjected to late fees and default provisions as set forth in an Airport Tenant’s land or facility sublease.
Fines assessed to Airport Users who do not have a land or facility Sublease at SCLA, shall be paid before the Airport Us er is permitted to use the Airport again. Continuous violation of these Rules and Regulations shall result in denial to use the Airport.
B.2 The following schedule should be regarded as a suggested schedule of fines. The Airport Director has the sole discretion and authority to levy fines, their amount and final disposition.
B.3 For minor infractions related to vehicle operations on the AOA such as:
Speeding on the AOA. $100.00
Operating a vehicle on the AOA without:
Airport Issued I’D Badge or drivers permit, appropriate markings or two-way radio communication with ATCT. $100.00 Runway incursion. $500.00
Taxiway incursion. $300.00
For negligence resulting in, and failure to correct, FOD $100.00 B.4 For breeches in security such as:
1. Leaving a perimeter gate unattended. $100.00
2. Failure to accompany non-badged person on the AOA. $100.00
3. Sharing a security code or vehicle gate card. $300.00
4. Bypassing Security. $300.00
5. Sharing a Personnel Identification Badge. $300.00
6. Losing a Personnel Identification Badge. $100.00
B.5 For miscellaneous infractions of the Rules and Regulations such as:
1. Smoking in a non-approved area. $100.00
2. Parking or storing aircraft in non-approved areas. $100.00
3. Performing aircraft maintenance in unauthorized areas. $100.00
4. Knowingly allow an unsafe condition to exist. $300.00
5. Bringing an unauthorized vehicle on the airport. $100.00 B.6 A Federal Aviation Administration (FAA) or Transportation Security Administration (TSA) fine levied at the SCLA may be directly forwarded to a tenant if such tenant action is cause for the FAA/TSA penalty
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.38 of 38
A second violation of the above listed offenses will result in the doubling of the applicable fine. A third offense will result in the tripling of the applicable fine and a suspension of privileges until corrective actions are taken and documented.
SCLAA Standard Sublease Page 28 Anduril Industries, Inc. Bldg 682C
EXHIBIT D
USE AND CONDITION OF SUBLEASED PREMISES
The use of the Subleased Premises shall include aircraft assembly, maintenance, calibration, storage, and preparation for testing in support of Sublessee’s Group 5 autonomous air vehicle program, an autonomous jet powered aircraft, storage of fully assembled vehicles, spare parts and tooling.
The use of The Outside Storage space shall include storage of extra equipment, aircraft conex containers, and a spare generator. May also include expansion of the existing ground control station and ground support equipment.
The use of the Ramp Space shall include aircraft ground system checks and engine runs.
The condition of the Subleased Premises shall be established resulting from a walk- through inspection attended by both Sublessor and Sublessee prior to the date Sublessee takes possession. The findings of this walk-through inspection shall be memorialized at the time of the walk-through via the SCLA Property Lease Checklist.
SCLAA Standard Sublease Page 29 Anduril Industries, Inc. Bldg 682C
EXHIBIT E
SELECTED FAA RULES AND REGULATIONS
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37 Item Number: 16
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
James Murawski, Airport Director
Subject:
Standard Sublease Agreement for Buildings 717B, 671, 675 and Lot 20 by and between the Southern California Logistics Airport Authority and The Boeing Company Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve entering into a Standard Sublease Agreement for Buildings 717B, 671, 675 and Lot 20 (“Agreement”), by and between the SCLAA and The Boeing Company, (“Boeing”); and
(2) Authorize the Executive Director to execute said Agreement; and (3) Adopt Resolution No. SCLAA 25-008 amending the 2024/2025 budget increasing revenue in account 4500125-44605 by $179,514.12.
Fiscal Impact:
The Agreement presented herein will generate approximately $737,146.68 in gross lease and parking revenue over the initial term (May 01, 2025 – December 31, 2027). The table below outlines the fiscal impact of the initial 2 years and 8 months of the Agreement.
FY 2024-25
May 25 – June 25
FY 2025-26
July 25 – June 26
FY 2026-27
July 26 – June 27
FY 2027-28
July 27 – December 27
$44,883.38 $270,646.78 $278,766.18 $142,850.33
The sublease revenue generated by this Agreement that is associated with Buildings 717B, 671, and 675 is in line with the current budget and does not require a budget Amendment. However, the parking revenue associated with this Agreement exceeds the budgeted revenue established in Airport account 4500125-44605 for fiscal year 2024-25 by $25,740. Additionally, other parking revenues recorded in account 4500125-44605 have exceeded expectations for fiscal year 2024-25. Resolution No. SCLAA 25-008 is presented herein for the purpose of requesting approval of the required budget 5 7
0 Amendment in the amount of $179,514.12 as outlined below. Future appropriations for the subject Agreement will be considered at the time the annual budget is approved.
Original FY24/25 Budget
Revenue
4500125-44605 Parking Revenue $800,000
Proposed FY24/25 Budget
Revenue
4500125-44605 Parking Revenue $979,514.12
Strategic Plan Goal:
The City of Victorville Strategic Plan 2023-2026 identifies multi-year strategic goals and various strategies to work toward achieving those goals. Goal A fosters fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery.
Background:
Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. Boeing also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the fourth-largest defense contractor in the world based on 2022 revenue and is the largest exporter in the United States by dollar value. Boeing stock is included in the Dow Jones Industrial Average and Boeing is ranked 54th on the Fortune 500 list.
Since 2003, Boeing has been one of the largest companies to maintain operations at the Southern California Logistics Airport (“SCLA”). Given a number of positive attributes associated with the SCLA and the surrounding airspace, Boeing started performing aircraft flight tests at the SCLA in 2010. Boeing has steadily expanded operations at the SCLA to include aircraft financing via the Boeing Capital Corporation, flight test operations, and Maintenance Repair and Overhaul (“MRO”) services for its Aircraft on Ground (“AOG”) and Fleet Care divisions.
With approximately 790 employees, Boeing is the largest employer at the SCLA. Since executing their first lease agreement in 2003, Boeing has grown to its current leasehold estate that includes seven SCLA owned buildings and a ground leasehold interest, including Building 717B which Boeing has leased since August 2021.
Discussion:
Boeing continues to thrive at the SCLA and desires to renew and combine their agreements for office, storage and ramp space. The proposed Agreement for Buildings 717B, 671, 675 and Lot 20 entails an initial term of two-years and eight-months with a commencement date of May 1, 2025. The Agreement also contemplates one, three-year, option term. The Subleased Premises consist of Building 717B which is comprised of 5 7
0 approximately 9,803 square feet of office space, Buildings 671 and 675 which are comprised of 6,240 square feet of storage space, and Lot 20 which is comprised of 330,000 square feet of ramp space. Boeing has agreed to pay $22,441.69 per month with an annual 3% inflator. This amounts to $.83 per square foot per month for Building 717B, $.23 per square foot per month for Buildings 671 and 675, and $.04 per square foot per month for Lot 20, which is comparable with similar SCLA buildings and ramp space.
Because the Standard Sublease Agreement will maintain local employment, produce a steady revenue stream, and will maintain airport operations, staff recommends that the Southern California Logistics Airport Authority Board approve the Standard Sublease Agreement with The Boeing Company Buildings 717B, 671, 675 and Lot 20 and authorize the Executive Director to execute said agreement and adopt Resolution No. SCLAA 25- 008 amending the 2024/2025 budget increasing revenue in Airport account 4500125- 44605 by $179,514.12. Such approval is being requested, subject to any minor, non- substantive modifications to the Sublease Agreement as approved by the Southern California Logistics Airport Authority Legal Counsel and the Southern California Logistics Airport Authority Executive Director.
Staff remains available for any questions or comments you may have.
JM/lf
Attachments: A. General Site Map
B. Standard Sublease Agreement for Buildings 717B, 671, 675 and Lot 20
C. Resolution No. SCLAA 25-008
$WWDFKPHQW$
ATTACHMENT B
STANDARD SUBLEASE AGREEMENT FOR
BUILDINGS 717B, 671, 675 AND LOT 20
SCLAA Standard Sublease Page 1 Boeing Buildings 717B. 671, 675 & Lot 20
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
STANDARD SUBLEASE AGREEMENT
BUILDINGS 717B, 671, 675, AND LOT 20
This Sublease Agreement (the “Sublease”) is made this _______ day of ___________, 2025, by and between the SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”), a California joint powers authority, (hereinafter referred to as “Sublessor”) and THE BOEING COMPANY (“Boeing”), a Delaware corporation (hereinafter referred to as “Sublessee”). Sublessor and Sublessee are sometimes referred to hereinafter individually as a “Party” and collectively as the “Parties.”
RECITALS
These Recitals are included to assist in interpreting this Sublease and to understand the basis upon which certain terms and conditions have been included. It is not intended, nor should it be construed, to supersede or amend the specific terms and conditions of this Sublease.
A. The United States Air Force (“Air Force”) and the Victor Valley Economic Development Authority (“the Authority”) have previously entered into certain Department of the Air Force Leases pertaining to portions of the former George Air Force Base, which is now known as the Southern California Logistics Airport (“SCLA”) (hereinafter the “Air Force Leases”).
B. The Authority has delegated its decision-making authority with respect to the SCLA to the Sublessor, who now has the authority to enter into transactions on behalf of the Authority.
C. The Air Force (“Grantor”) and the SCLAA (“Grantee”) have entered into certain Air Force Quitclaim Deed(s) (“Quitc laim Deed(s)”), which release and forever quitclaim to the Grantee all the real property described in such Quitclaim Deed(s), subject to the Covenants, Conditions and Restrictions set forth in the Quitclaim Deed(s).
D. Sublessee seeks to sublease from the Sublessor a portion of the property subject to the Air Force Leases (hereinafter the “Subleased Premises”).
E. Although many portions of the SCLA are subject to and governed by the Air Force Leases, some portions (which may include appurtenances, access/use rights, privileges and/or easements associated with the Subleased Premises) have been transferred from the Air Force to Sublessor by means of various deeds (hereinafter the “Airport Deeds”) and are subject to the provisions and conditions of such Airport Deeds.
F. Sublessor and Sublessee have previously entered into a certain Lease Agreement dated August 25, 2021, (the “Original Lease”) pertaining to the lease of Building 717B at the SCLA. The Original Lease contained two (2) additional three (3) month option terms which were exercised and expired on February 15, 2023.
SCLAA Standard Sublease Page 2 Boeing Buildings 717B. 671, 675 & Lot 20 Subsequently, Sublessor and Sublessee entered into a certain Lease Agreement dated July 14, 2022, (the “First Lease Renewal”) pertaining to the lease of Building 717B at the SCLA. The First Lease Renewal contained one (1) additional one (1) year option term and one (1) additional four (4) month and sixteen (16) day term which were exercised and expired on December 31, 2024. The First Lease Renewal has been in hold over since the expiration of the exercised option terms.
TERMS AND CONDITIONS
1. Subleased Premises. Subject to the terms and conditions herein contained, Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor certain property, which is part of the SCLA, described as follows (the “Subleased Premises”):
a. A portion of that certain real property designated as Building 717B, located on the SCLA grounds at 18368 Readiness Street, Victorville, CA 92394, comprised of approximately of Nine Thousand Eight Hundred Three (9,803) square feet of office space, together with the improvements thereon, as depicted on Exhibit A attached hereto and incorporated herein by this reference; and
b. A portion of that certain real property designated as Building 671, comprised of approximately Three Thousand One Hundred Twenty (3,120) square feet of storage space, together with the improvements thereon, located at the SCLA at 12950 Aerospace Drive, Victorville, CA 92394, as depicted on Exhibit A , attached hereto and incorporated herein by this reference; and
c. A portion of that certain real property designated as Building 675, comprised of approximately Three Thousand One Hundred Twenty (3,120) square feet of storage space, together with the improvements thereon, located at the SCLA at 12950 Aerospace Drive, Victorville, CA 92394, as depicted on Exhibit A , attached hereto and incorporated herein by this reference; and
d. A portion of ramp space designated as Lot 20, located on the main ramp, comprised of approximately Three Hundred Thirty Thousand (330,000) square feet of ramp space as depicted on Exhibit A; and
e. all appurtenances, rights, privileges and easements in any way applicable thereto.
2. Term. The initial term of this Sublease shall be for a period of Two (2) years and Eight (8) months, (the “Initial Term”) commencing on May 1, 2025, (the “Sublease Commencement Date”) and expiring on December 31, 2027, (the “Sublease Expiration Date”) unless sooner terminated or extended as hereinafter provided. To the extent any of the leases or subleases referenced in Recital A hereof are terminated, and such lease or sublease governs this Sublease, then this Sublease shall also terminate, as of the date of termination of the applicable governing lease or sublease.
SCLAA Standard Sublease Page 3 Boeing Buildings 717B. 671, 675 & Lot 20
3. Option to Extend Term. Upon expiration of the Initial Term, Sublessee shall have the option to renew this Sublease for One (1) additional Three (3) year term (the “Option Term”), provided that: (i) Sublessee is in good standing and otherwise in full compliance with all of the terms and conditions of this Sublease; (ii) Sublessee provides Sublessor written notice of its desire to renew no later than One Hundred and Eighty (180) days prior to the expiration of the Term; and (iii) Sublessor confirms in writing Sublessee’s Option Term. Upon confirmation of such exercise by Sublessor, all references to the Expiration Date shall mean December 31, 2030. All further references to the Term of this Sublease shall mean and include the Initial Term and any confirmed Option Term.
4. Termination. This Sublease shall only terminate prior to the Expiration Date for such reasons as are specifically set forth in the provisions of this Sublease.
5. Right to Terminate for Development. With respect to any building or facility comprising the Subleased Premises (including any additional access or rights of use specified in this Sublease) which Sublessee occupies pursuant to this Sublease, after Sublessee’s execution of this Sublease, Sublessor shall have the right, upon giving Sublessee ninety (90) days’ notice in writing, to terminate this Sublease. Such right shall only be exercised in good faith to the extent Sublessor requires the current space for the development of the SCLA.
6. Rent.
a. Monthly Base Rent. During the first year of the Initial Term, Sublessee shall pay to Sublessor as rent for the Subleased Premises the amount of Twenty-two Thousand Four Hundred Forty-One Dollars and Sixty-Nine Cents ($22,441.69) per month (the “Monthly Base Rent”). Commencing on May 1, 2026, the Monthly Base Rent shall be increased by three percent (3%), and on each annual anniversary of the Sublease Commencement Date thereafter during the Term (or during any Option Term exercised in accordance with the provisions of Section 3 hereof), the then-current Monthly Base Rent shall be increased by an additional three percent (3%).
All further references to the Monthly Base Rent shall mean and include any such increased amount as calculated under the provisions of this paragraph. The Monthly Base Rent represents the summation of Building 717B monthly rent in the amount of Eight Thousand One Hundred Thirty-Six Dollars and Forty-Nine Cents ($8,136.49), Building 671 monthly rent in the amount of Seven Hundred Seventeen Dollars and Sixty Cents ($717.60), Building 675 monthly rent in the amount of Seven Hundred Seventeen Dollars and Sixty Cents ($717.60), and Lot 20 monthly rent in the amount of Twelve Thousand Eight Hundred Seventy Dollars ($12,870).
b. Tenant Improvements. Within Three Hundred Sixty-Five (365) days of the Sublease Commencement Date, Sublessee shall undertake and substantially complete, at its sole expense, certain tenant improvements to the Subleased Premises (the “Tenant Improvements”) as further described on Exhibit B attached hereto and incorporated herein by this reference. Sublessee shall construct SCLAA Standard Sublease Page 4 Boeing Buildings 717B. 671, 675 & Lot 20 the Tenant Improvements in accordance with Section 14, 17 and 22 of this Sublease, using its own staff and/or properly licensed and insured contractors and in full compliance with any applicable prevailing wage or public bidding requirements.
c. Rent Credits. As consideration for substantially completing the Tenant Improvements within the time period set forth above, and subject to the provisions of subsections i and ii hereof, Sublessor shall, commencing on July 1, 2026, and continuing for Eighteen (18) consecutive months of the Initial Term of this Sublease, provide Sublessee with a monthly rental credit in an amount equal to Fifty percent (50%) of the anticipated cost of Forty-One Thousand Dollars ($41,000) for the tenant improvements to Building 717B. The rental credit shall be based upon actual costs incurred by Sublessee to construct the Tenant Improvements, as verified and approved by Sublessor pursuant to subsection (i) below. The rental credit shall not exceed a total of Twenty Thousand Five Hundred Dollars ($20,500) and shall be applied on a monthly basis toward the Sublessee’s Monthly Base Rent in an amount not to exceed One Thousand One Hundred Thirty-Nine Dollars ($1,139) monthly.
i. Following the substantial completion of the Tenant
Improvements, Sublessee shall provide to Sublessor all invoices with proof of payment, and other evidence of actual cost incurred together with a cost summary cover page (the “Close-Out Statement”). Upon receipt of the Close-Out Statement, Sublessor shall verify same and calculate the actual total amount of the rent credits due to Sublessee.
ii. Should Sublessee not substantially complete the Tenant Improvements within Three Hundred Sixty-Five (365) days following the Sublease Commencement Date for a final completion date of April 30, 2026, and provide a Close- Out Statement to Sublessor documenting the actual costs incurred, Sublessee shall not be eligible for rent credits described in Section 6.c.
d. Payment. Monthly Base Rent shall be payable in advance prior to the first (1st) day of each calendar month and without demand to:
Southern California Logistics Airport Authority
Attention: Airport Director
18374 Phantom West
Victorville, California 92394
or at such other place as Sublessor may designate in writing from time to time.
Sublessee shall also pay to Sublessor within thirty (30) days of presentation of an invoice, such other charges as it may incur for use of facilities and services at the SCLA which shall be charged in accordance with the SCLA Rules and Regulations as set forth on Exhibit C, attached hereto and incorporated herein by this reference, as such may be amended from time to time by Sublessor.
SCLAA Standard Sublease Page 5 Boeing Buildings 717B. 671, 675 & Lot 20
7. SECURITY DEPOSIT. INTENTIONALLY OMITTED.
8. Brokerage Commission. Sublessor and Sublessee represent and affirm to each other that they have not had any dealings with any real estate brokers, finders or agents and no commissions or fees are payable by either Party in connection with this Sublease.
9. Late Charge. Sublessee hereby acknowledges that late payment by Sublessee to Sublessor of any installment of rent, or any other sums due hereunder will cause Sublessor to incur costs not contemplated by the Sublease, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any installment of rent, or any other sum due from Sublessee is not received by the Sublessor within ten (10) days after such amount is due, whether or not any notice of default or other notice has been given, Sublessee shall pay to the Sublessor a charge equal to six percent (6%) of the amount past due (the “Late Charge”), in addition to the payment of the past due amount itself. The Parties hereby agree that such Late Charge represents a fair and reasonable estimate of the costs the Sublessor will incur by reason of late payment by Sublessee, and no more than one (1) Late Charge shall be assessed per month. Notwithstanding the foregoing, in the event the Sublessee elects to make annual payments in advance, then no Late Charge shall apply.
10. Limited Right to Possession of the Subleased Premises. Sublessor shall deliver possession of the Subleased Premises to Sublessee on or before the Sublease Commencement Date, free and clear of all tenants, occupants, and right of any third parties except as hereafter provided in this Section 10. Sublessee agrees that the terms of its possession shall be subject to any outstanding easements and rights-of-way not within the control of the Sublessor and further to the right of entry by the United States Air Force as provided under the Air Force Leases. The Sublessor shall use best efforts to ensure the quiet use and enjoyment of the Subleased Premises by Sublessee.
However, unreasonable interference by Sublessor or the Air Force with Sublessee’s quiet enjoyment of the Subleased Premises that results in material and demonstrable financial detriment to Sublessee and Sublessee being unable to continue its business functions in a commercially reasonable manner, shall be grounds for termination of the Sublease by Sublessee.
11. Holding Over. In the event Sublessee, with the Sublessor’s prior written consent, holds over and continues in possession of the Subleased Premises, or any part thereof, after the Expiration Date, such occupancy shall be considered a month-to- month tenancy subject to all the terms and conditions of this Sublease in effect on the day immediately preceding the Expiration Date, except that the Monthly Base Rent for any such holdover period shall be increased to one hundred fifty percent (150%) of the then current Monthly Base Rent. If Sublessee, without the Sublessor’s prior written consent, holds over or continues in possession of the Subleased Premises, or any part thereof, after the Sublease Expiration Date of this Sublease, such occupancy shall be deemed a tenancy at sufferance, permitting the Sublessor to immediately commence eviction proceedings without notice to Sublessee.
SCLAA Standard Sublease Page 6 Boeing Buildings 717B. 671, 675 & Lot 20
12. Right to Relocate. INTENTIONALLY OMITTED.
13. Maintenance. Excessive repair and maintenance necessitated solely by Sublessor’s activities shall be borne to the Sublessor. Additionally, Sublessor shall, at Sublessor’s expense, maintain and repair the structural components of the Subleased Premises i.e., foundations, slabs, exterior walls, (excluding glass and doors), HVAC systems, parking lots, and the structural an d waterproofing membrane portions of the roof. Excluding the aforementioned, Sublessee shall at all times during the Term hereof and until surrender and Expiration, keep and maintain the Subleased Premises in good and substantial order and repair, and shall undertake all necessary repair and maintenance of the Subleased Premises. Sublessee shall be responsible for all operating expenses associated with maintaining the Subleased Premises including, but not limited to: cleaning; light bulb replacement; procurement of supplies and materials; preventative maintenance; repair; signs; sidewalks; all monthly, quarterly, and annual inspection/servicing and repair of the Subleased Premises mechanical, electrical, lighting, plumbing, and life safety systems; furniture and window cleaning; servicing of fire extinguishers and fire suppression systems; repairs to trade fixtures and/or equipment, doors, ceilings, roofing, floors; exterior painting, resurfacing paved exterior areas and the like; landscaping of parking lot, associated fees, etc. Sublessee agrees at Sublessee’s sole cost and expense to procure, maintain throughout the Term, and supply copies to Sublessor, contracts for the inspection/servicing and maintenance of HVAC equipment, fire extinguishing and suppression systems, fire alarms and/or smoke detection systems, and air compressor systems. Sublessee also agrees throughout the Term to supply copies of all life safety related certifications and/or inspection records to the Sublessor in a timely manner.
14. Use and Condition of Subleased Premises. The Subleased Premises are to be used by Sublessee for those purposes more particularly provided for on Exhibit D, attached hereto and incorporated herein by this reference, and for no other purpose unless expressly agreed to by the Sublessor in writing. Sublessee agrees to use the Subleased Premises in such a manner as to not interfere with the Sublessor’s rights in the Subleased Premises or the surrounding areas, to comply with all airport rules and regulations, all applicable governmental laws, ordinances, and regulations in connection with its use of the Subleased Premises, to keep the Subleased Premises in a clean and sanitary condition, and to use all reasonable precaution to prevent damage, or injury to the Subleased Premises.
a. Permits. Sublessee, at its sole cost and expense, shall apply for and obtain any and all permits and/or certifications required by any federal, state or local governmental entity, including but not limited to the Mojave Desert Air Quality Board, in connection with the painting, maintenance and/or overhaul of aircraft in or about the Subleased Premises. Such permits shall include, but not be limited to, any which may be required for the air handling and ventilation requirements for the Subleased Premises. Furthermore, Sublessee shall coordinate and cooperate with the Mojave Desert Air Quality Board as may be required from time to time. Any and all such permits and/or certifications shall be obtained in such a manner so as to run in SCLAA Standard Sublease Page 7 Boeing Buildings 717B. 671, 675 & Lot 20 favor of the Subleased Premises and/or the Sublessor, and such permits or certifications shall remain with the Subleased Premises upon the expiration or termination of the Sublease.
b. No Warranties. Except as provided herein, Sublessee agrees that no promises, covenants, representations, statements, or warranties have been made on behalf of the Sublessor to Sublessee respecting the condition of the Subleased Premises, or the manner of operating the Subleased Premises or the maintaining of any repairs to the Subleased Premises.
c. Acceptance of Subleased Premises. Sublessee acknowledges that it has satisfied itself by its own independent investigation that the Subleased Premises are suitable for their intended use, and that neither the Sublessor nor the Sublessor’s agent or agents have made any representation or warranty as to the present or future suitability of the Subleased Premises for the conduct of Sublessee’s business.
Sublessee’s taking possession or use of the Subleased Premises for any purpose shall constitute Sublessee’s acceptance of the Subleased Premises “as-is” in its existing condition.
d. Notice of Presence of Asbestos and Lead-Based Paint. Sublessee, its successors and assigns are warned that the Subleased Premises may contain asbestos materials and lead-based paint materials. No warranties, either expressed or implied, are given with regard to the quantity, location or condition of the asbestos containing materials or the lead-based paint materials. Sublessee, its successors and assigns, shall be deemed to have relied solely on their own judgment in assessing the overall condition of all or any portion of the Subleased Premises, including any asbestos hazards or lead-based paint hazards or concerns. Sublessee acknowledges that Sublessee was given every opportunity to inspect the Subleased Premises to assess the risk, if any, from asbestos containing material or lead-based paint materials.
e. No Liability Assumed by Sublessor. The Sublessor assumes no liability for damages for personal injury, illness, disability or death to Sublessee or to Sublessee’s successors, assigns, employees, invitees, or any other persons subject to Sublessee’s control or direction, or to any person, including members of the general public arising from or incident to the purchase, transportation, removal, handling, use, disposition or any activity causing or leading to contact of any kind whatsoever with asbestos or lead-based paint on the Subleased Premises which is the subject of this Sublease, whether Sublessee, its successors or assigns has or have properly warned or failed to properly warn the individuals injured. Sublessee, its successors, and assigns, further agree that in its use and occupancy of the Subleased Premises, it will comply with all federal, state and local laws relating to asbestos and lead-based paint.
SCLAA Standard Sublease Page 8 Boeing Buildings 717B. 671, 675 & Lot 20 f. Personal Property. Sublessee shall, at the Sublease Expiration Date or such other termination of this Sublease, by lapse of time or otherwise, remove all of Sublessee’s personal property, repair any damage to the Subleased Premises resulting therefrom, and surrender the Subleased Premises to the Sublessor in as good a condition as when Sublessee took possession, normal wear and tear excepted.
15. Waste or Nuisance. Sublessee shall not commit or permit the commission by others of any waste on the Subleased Premises. Sublessee shall not maintain, commit, or permit the maintenance or commission of any nuisance on the Subleased Premises nor shall Sublessee use or permit the use of the Subleased Premises for any unlawful purpose.
16. Taxes. Sublessee shall pay when due and prior to delinquency all taxes, assessments, and other charges including possessory interest taxes levied or imposed by any governmental entity on the possessory interest of Sublessee in the Subleased Premises and the personal property, trade fixtures, appliances, and leased equipment placed by Sublessee in, on, or about the Subleased Premises during the Term of this Sublease. Sublessee recognizes that the interests of Sublessee in this Sublease shall be subject to the imposition of a possessory interest tax by the San Bernardino County Assessor, and Sublessee agrees to pay such tax amount as may be so levied with respect to the possessory interest of Sublessee in the Subleased Premises under this Sublease. Sublessee further acknowledges that pursuant to California Health and Safety Code Section 33673, the property shall be assessed in the same manner as privately owned property and Sublessee shall pay taxes upon the assessed value of the entire property and not merely the assessed value of its leasehold interest.
17. Compliance with Air Force Leases, Airport Deeds, Covenants, Conditions and Restrictions and Related Agreements.
a. Sublessee acknowledges that a copy of the applicable Air Force Leases and/or Airport Deeds are available and on file in the SCLA office.
b. Sublessee expressly acknowledges that the Sublessor has assumed certain duties and obligations to the Air Force under the Air Force Leases and/or Airport Deeds affecting the use and occupancy of the Subleased Premises.
Sublessee further agrees that as of the Sublease Commencement Date, it shall observe and perform the duties and obligations of the Sublessor relating to the Subleased Premises in favor of the Air Force which arise under the Air Force Leases. These duties and obligations as assumed by Sublessee include but are not limited to the following which are presented below for purposes of reference and convenience:
I. Air Force Lease Condition 10 (Environmental Protection); and
II. Air Force Lease Condition 17 (Development and Alterations); and
SCLAA Standard Sublease Page 9 Boeing Buildings 717B. 671, 675 & Lot 20 III. Air Force Lease Condition 26 (Restrictions on Use of Leased Premises)
c. Any use, occupancy or activity of Sublessee on the Subleased Premises which may result in either the receipt by the Sublessor of a notice of default from the Air Force under the Air Force Leases or a notice of default or a notice of violation from either the Air Force or the Federal Aviation Administration (“FAA”) under any Airport Deeds, shall be deemed to be a default of Sublessee under this Sublease.
The response of the Sublessor following receipt of any such notice of default or breach from either the Air Force under the Air Force Leases or from the Air Force and/or the FAA under the Airport Deeds, shall not waive, stay, or otherwise mitigate or remedy the default of Sublessee to the Sublessor under this Sublease. Sublessee shall have no right under this Sublease to participate in any proceeding between the Air Force, the FAA and the Sublessor for the resolution of an alleged default, breach or other dispute of the parties arising under the Air Force Leases and/or the Airport Deeds except to the extent the Sublessee is alleged to have directly caused such breach or default.
d. Sublessee acknowledges that the Subleased Premises are, or will be, subject to certain Declaration of Covenants, Conditions and Restrictions to be recorded in the official records of San Bernardino County, California, as amended (the “CC&Rs”). There shall also be included in any assessments the amount of assessments levied pursuant to the CC&Rs and applicable to the Subleased Premises, determined by the ratio that the rentable area of building on the Subleased Premises bears to the total net rentable area of building or buildings which include the Subleased Premises and for which a separate assessment is made pursuant to the CC&Rs.
e. Sublessee further expressly acknowledges that it is subject to and shall comply with all provisions and conditions of the applicable Air Force Leases.
18. Insurance. Lessee shall procure and maintain for the duration of the Sublease insurance against claims for injuries to persons or damages to property which may arise from or in connection with Sublessee’s operation and use of the Subleased Premises. The cost of such insurance shall be borne by the Sublessee. Coverage shall be at least as broad as:
a. Commercial General Liability Insurance. (“CGL”): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products completed operations, property damage, bodily injury and personal and advertising injury with limits no less than One Million Dollars ($1,000,000) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence.
SCLAA Standard Sublease Page 10 Boeing Buildings 717B. 671, 675 & Lot 20 b. Property Insurance. Sublessee acknowledges that the insurance to be maintained by the Sublessor on the Subleased Premises will not insure against any of the Sublessee’s property or improvements made by the Sublessee. Accordingly, Sublessee shall maintain in full force and effect insurance against all risks of loss to any improvements or betterments, at full replacement cost with no coinsurance penalty provision. Property Insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the Subleased Premises.
c. Commercial Vehicle Liability Insurance. ISO Form Number CA 00 01 covering any auto (Code 1), or if Sublessee has no owned autos, hired (Code 8) and non-owned (Code 9), with limit no less than One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
d. Workers’ Compensation Insurance. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Sublessee has no employees, it may certify or warrant to the Sublessor that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code and the requirement for Workers’ Compensation coverage may be waived by the Risk Manager.
e. Sublessee may use Umbrella or Excess Policies to provide the liability limits as required in this Sublease. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, Self-Insured Retentions, indemnity and defense requirements. The Umbrella and Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance maintained by the Additional Insureds, whether primary or excess, and which also apply to loss covered hereunder, shall be called upon to contribute to a loss until Sublessee’s primary and excess policies are exhausted.
f. If the Sublessee maintains broader coverage and/or higher limits than the minimum limits shown above, the Sublessor requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Sublessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Sublessor.
g. The insurance policies are to contain, or be endorsed to contain the following provisions:
SCLAA Standard Sublease Page 11 Boeing Buildings 717B. 671, 675 & Lot 20 (i) Additional Named Insureds. Notwithstanding any
inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by the commercial general liability policy described in s ubsection (a) above shall bear an endorsement whereby it is provided that, the Souther n California Logistics Airpor t Authority (“Sublessor”), the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, the United States Air Force, and their respective officers, officials, employees, servants, volunteers, agents, and independent contractors are named as Additional Insureds.
General Liability coverage can be provided in the form of an endorsement to the Sublessee’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 2038; and CG 20 37 if a later edition is used).
(ii) Waiver of Subrogation Rights.
Subl essee hereby grants to
the Southern California Logistics Airport Aut hority (“Sublessor”), the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, the United States Air Force, and their respective officers, officials, employees, servants, volunteers, agents, and independent contractors a waiver of any right to subrogation which any insurer of said Sublessee may acquire against the Southern California Logistics Airport Authority, the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, and the United States Air Force. Sublessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Sublessor has received a waiver of subrogation endorsement from the insurer.
(iii) For any claims related to this Sublease, the Sublessee’s coverage shall be primary and noncontributory and at least as broad as ISO CG 20 01 04 13 with respects to the Southern Californ ia Logistics Airport Au thority (“Sublessor”), the Victor Valley Economic Development Au thority, the City of Victorville, the City Attorney and the United States Air Force and their officers, officials, employees, volunteers, contractors, and subcontractors. Any insurance or self-insurance maintained by the Southern California Logistics Airport Authority (“Sublessor”), the Victor Valley Economic Development Authority, the City of Victorville, the City Attorney and the United States Air Force and their officers, officials, employees, volunteers, contractors, and subcontractors shall be in excess of the Sublessee’s insurance and shall not contribute with it.
19. Proof of Insurance Coverage.
a. Sublessee shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Sublease and furnish to Sublessor certificates of said insurance on or before the Sublease Commencement Date.
b. Each insurance policy required in the Sublease shall provide that coverage should not be canceled, except with written notice to the Sublessor.
SCLAA Standard Sublease Page 12 Boeing Buildings 717B. 671, 675 & Lot 20 c. Sublessee shall furnish the Sublessor with original certificates of insurance and amendatory endorsements, or copies of applicable policy language effecting coverage required by this Sublease and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates, endorsements and copies or Declarations and Endorsements are to be received and approved before the Commencement Date.
However, failure to obtain the required documents prior to the Commencement Date shall not waive the Sublessee’s obligation to provide them.
d. Self-insured. If Sublessee is self-insured, it shall provide certificates or evidence to Sublessor indicating that its insurance meets the levels and requirements as set forth herein above.
20. Personal Property at Risk of Sublessee. All personal property which Sublessee maintains at the Subleased Premises shall be at the risk of Sublessee only.
Except for the grossly negligent, reckless, or unlawful intentional acts of the Sublessor, its agents, employees, guests, or invitees, the Sublessor shall not be liable for any damage to any property of Sublessee or for any damage to Sublessee’s property in moving the same to or from the Subleased Premises.
21. Utilities and Other Services.
a. Sublessor shall contract with and pay the applicable provider, all charges for water, gas, electricity, sewer, sanitation, or other utilities used or supplied upon or in connection with Sublessee’s use of the Subleased Premises and Sublessee shall indemnify, defend, and hold harmless the Sublessor against any liability on account thereof. Sublessee understands that utility costs for electricity and sanitation are shared with the Air Force which is co-located in Building 717B, and the tenant of Building 717A, therefore Sublessee shall pay forty percent (40%) of these utility costs.
Sublessee also understands that water, gas, the alarm line and alarm line monitoring utility costs are not shared with the tenant of Building 717A, but are shared with the Air Force, therefore Sublessee shall pay ninety percent (90%) of these utility costs.
Sublessee agrees to promptly reimburse the Sublessor upon receipt of invoice, its proportionate s hare of the actual cost of utility services, which have been paid by Sublessor. In addition to the amount of the utility bill that the Sublessor may have paid, Sublessee shall pay to Sublessor a three percent (3%) administrative fee for any pass- through billing processed. In no event shall the Sublessor be liable for any interruption or failure in the supply of any such utilities to the Subleased Premises.
b. Consent to Energy Use Data Disclosure. By executing this Sublease, Sublessee hereby consents to disclosure of its energy usage data as required for Sublessor to comply with the California Public Resources Code section 25402.10 and the implementing regulations of the California Energy Commission (20 Cal. Code Regs. Sections 1680 through 1685). Strictly for the purposes of ensuring such compliance, including any required public disclosure of aggregated energy use, Sublessee agrees to provide such energy usage data directly to Sublessor and/or SCLAA Standard Sublease Page 13 Boeing Buildings 717B. 671, 675 & Lot 20 authorizes Sublessor to obtain the required energy usage data directly from Sublessee’s utility provider s upon request without the need to execute any further authorizations or consent forms. Sublessee’s consent and authorization is deemed given upon the execution of this Sublease and shall continue to be in effect throughout the Term or any extension thereof.
22. Alterations, Improvements and Additions.
a. Sublessee shall not make any alterations, improvements, or additions to the Subleased Premises (collectively hereinafter the “Improvements”) without the prior written consent of the Sublessor. The Sublessor shall own all alterations, improvements, and additions that are affixed to the Subleased Premises without compensation to Sublessee, subject to subsection (b) below. Any personal property belonging to Sublessee may be removed by Sublessee at any time prior to the expiration of the Term of this Sublease, or extension thereof.
b. Once completed, Improvements authorized in writing by Sublessor and/or any specific Tenant Improvements as may be provided for elsewhere in this Sublease, shall not be removed by Sublessee, unless so required by the Sublessor in its sole discretion. At the end of the Term of this Sublease (or upon any earlier termination as may be provided for herein) Sublessor shall have the option to either require Sublessee to remove the Improvements or Tenant Improvements or elect to have such Improvements or Tenant Improvem ents become the property of Sublessor.
In the case of removal of equipment or fixtures, Sublessee shall restore the area of the Subleased Premises from which such removals are made to its original condition.
Sublessee shall require the issuance of a Faithful Performance Bond and a Payment Bond for any work performed on the Subleased Premises as set forth below:
BOND REQUIREMENTS - A Faithful Performance Bond benefitting the Sublessor in the amount of one hundred twenty-five percent (125%) of the bid amount and a Payment Bond in the amount of one hundred twenty-five percent (125%) of the bid amount. Bonds must be issued by an admitted surety insurer in the State of California. When a contract for constructing Sublessor-authorized Improvements or Tenant Improvements is signed, the successful bidder shall provide, within ten (10) working days, the Faithful Performance and Payment Bonds in the amounts set forth above in this paragraph.
23. Airport Development. The Sublessor, at its sole discretion, shall determine and may from time to time change the routes of surface ingress and egress to and from the Subleased Premises, but agrees to locate such routes as conveniently as may be done for Sublessee, having in mind the reasonable requirements of the Sublessor with respect to the operation of the SCLA. Notwithstanding the above, if the rerouting of such ingress and egress routes significantly disrupts the normal operations of Sublessee such that it results in material financial detriment to Sublessee, then Sublessee shall have the right to terminate this Sublease.
SCLAA Standard Sublease Page 14 Boeing Buildings 717B. 671, 675 & Lot 20
24. Signs. Sublessee shall not post, install, erect or operate any sign, placard, poster or other device on any part of the Subleased Premises without the prior written permission of the Sublessor. Such signs as may from time to time be permitted by the Sublessor shall be made, posted, maintained and removed, and repair any damage caused by removal, at Sublessee’s own cost and expense. Sublessor shall have the right to remove unauthorized signs at Sublessee’s expense. Sublessee shall be responsible for all costs associated with the purchase and installation of the required Building Standard Suite Signage in accordance with local codes.
25. Liens. Sublessee shall not suffer or permit any liens to stand against the Subleased Premises, or any part thereof, by reason of any work, labor, services, or materials done for, or supplied to Sublessee or anyone holding the Subleased Premises or any part thereof through or under Sublessee. If any such lien shall at any time be filed against the Subleased Premises, Sublessee shall cause such lien to either be discharged of record sixty (60) days after the date that Sublessee receives notice of the filing. Notwithstanding the above, in any bona fide dispute between Sublessee and any third party concerning work done by the third party on or for the Subleased Premises, and as a result of the dispute the third party files a lien against the Subleased Premises, then, in lieu of obtaining the discharge of the lien within the sixty (60) day period, Sublessee, at its option, may either file suit against the third party, a part of the suit being to judicially negate or remove the lien or Sublessee may file an appropriate bond or other device allowed by law to remove the lien.
26. Inspection by the Sublessor. Sublessee shall permit the Sublessor, or its agents, representatives, or employees to enter the Subleased Premises at mutually agreeable, reasonable times for the purpose of inspecting the Subleased Premises to determine whether Sublessee is complying with the terms of this Sublease, for the purpose of doing other lawful acts that may be necessary to protect the Sublessor’s interest in the Subleased Premises, or for the purpose of performing the Sublessor’s duties under this Sublease. Except in the event of an emergency, the Sublessor shall contact Sublessee, no less than twenty-four (24) hours prior to the time that Sublessor desires to enter the Subleased Premises to arrange a mutually agreeable time for the inspection.
27. Damage or Destruction of Subleased Premises. Unless occasioned by the negligence or intentionally unlawful act of Sublessee, if, during the Term of this Sublease or any renewal thereof, any portion of the Subleased Premises shall be damaged by fire or other catastrophic event, so as to render such portion of the Subleased Premises untenable, the obligations under this Sublease shall be immediately suspended while such portion of the Subleased Premises remains untenantable. In the event of such damage, the Sublessee shall give Sublessor notice of such untenantable conditions and the Sublessor shall elect in its sole discretion, whether to repair the Subleased Premises or to cancel this Sublease with respect thereto. It shall notify Sublessee in writing of its election within thirty (30) days after such damage. In the event Sublessor elects to repair the Subleased Premises, the work or repair shall begin promptly and shall be carried on without unnecessary delay.
SCLAA Standard Sublease Page 15 Boeing Buildings 717B. 671, 675 & Lot 20 In the event the Sublessor elects not to repair the Subleased Premises or portion thereof, the Sublease shall be deemed canceled as of the date of damage with respect to the applicable portion. Such damage shall not extend the sublease Term. In the event that insurance proceeds are received by Sublessee under the Property Insurance policy required to be carried by Sublessee, and the Sublease is terminated under this Section, the Sublessor shall be entitled to the portion of such proceeds attributable to the fixtures, improvements, and other property which would remain with the Subleased Premises, and Sublessee shall be entitled to the portion of such proceeds attributed to the fixtures and property on the Subleased Premises which would be removed by Sublessee. Notwithstanding anything in this paragraph to the contrary, if the Subleased Premises are rendered inadequate for Sublessee to conduct its normal operations in or upon the Subleased Premises (or such portion of the Subleased Premises which is still tenantable), and it is reasonably anticipated that the damages shall not be repaired or otherwise resolved, within sixty (60) days of the date the damage occurred, then Sublessee, at its sole and exclusive option, may immediately terminate this Sublease.
Additionally, irrespective of whether Sublessee remains in possession and occupancy of the Subleased Premises or elects to terminate this Sublease, rent payable under this Sublease shall abate during the period that the Subleased Premises are not totally useable by Sublessee. The abatement shall be pro rata in proportion to the ratio that the amount of space which Sublessee is actually able to occupy and from which it is able to conduct operations bears to the total Subleased Premises. Sublessee shall continue to make all other payments during this period, including taxes.
28. Assignment and Subletting.
(a) Sublessee shall not cause, or permit, by operation of law or otherwise, any assignment, encumbrance or transfer of this Sublease or any estate or interest therein without the prior written consent of the Sublessor.
(b) Sublessee shall not sublet the Subleased Premises or any part thereof without the prior written consent of the Sublessor. Any consent to a sublease or assignment shall be conditioned upon the proposed subtenant or assignee demonstrating to Sublessor its ability to perform and complete the obligations of Sublessee under this Sublease, a determined by objective standards of financial capability, creditworthiness and experience required for such performance. In addition, if Sublessee’s proposed sublease or assignment arrangement will result in any increased rents or profits accruing to Sublease in excess of the Monthly Base Rent due to Sublessor under this Sublease, such consent shall further be conditioned upon Sublessor receiving fifty percent (50%) of the excess amount thereof. An assignment or subletting shall not relieve Sublessee of any of its obligations or liabilities under this Sublease: both Sublessee and any subsequent assignees will be deemed to be bound hereunder. The Sublessor’s consent to any such assignment, transfer or subletting shall not constitute consent to any further assignment, transfer, or subletting.
SCLAA Standard Sublease Page 16 Boeing Buildings 717B. 671, 675 & Lot 20 (c) The provisions of this Section 28 are not intended, nor should they be construed, to prevent Sublessee from allowing such independent contractors onto the Subleased Premises who are involved in Sublessee’s normal operations on the Subleased Premises (such as repair and maintenance personnel, janitorial personnel, and similar personnel). Additionally, nothing in this Section 28 should be construed to prevent subcontractors of Sublessee from conducting their work on the Subleased Premises in conjunction with the normal operations conducted by Sublessee. To the extent that Sublessor must grant its consent for Sublessee’s subcontractors to enter onto the Subleased Premises for the above-described purposes, consent is hereby deemed to be granted.
29. Indemnification. To the fullest extent permitted by law, Sublessee hereby agrees to defend, indemnify and hold harmless Sublessor, the City of Victorville, the Victor Valley Economic Development Authority, the United States Air Force and each of their respective officers, officials, employees, directors, agents, volunteers, independent contractors and assigns (collectively hereinafter the “Indemnified Parties”), from and against any and all claims, actions, suits, proceedings, demands, losses, judgments and costs and expenses, including attorneys’ fees, arising from any legal action or proceeding initiated by any individual or entity arising out of, or resulting from the performance of this Sublease, except for any such claim arising out of the sole negligence or willful misconduct of the Indemnified Parties.
30. The Sublessor’s Environmental Representations.
a. Except as otherwise provided in Section 14 hereof, Sublessee shall not be held responsible or deemed liable by the Sublessor for any hazardous environmental condition on the Subleased Premises, which existed prior to Sublessee’s occupancy of the Subleased Premises.
b. Except as provided in Section 14 hereof, the Sublessor represents that to the best of its actual knowledge, the Subleased Premises are free from any violations of law or regulations pertaining to occupational hazards and environmental conditions or Hazardous Materials as defined in Section 31 of this Sublease. In the event that any hazardous environmental conditions exist on the Subleased Premises as of the Sublease Commencement Date which result in a loss to Sublessee and which were caused by Sublessor, the Air Force or parties or entities within the control of, or under contract with Sublessor, then the Sublessor shall indemnify, defend and hold Sublessee harmless from any costs, expenses, at torney fees or liabilities relating to any claims of such violations or conditions existing prior to Sublessee’s occupancy of the Subleased Premises. Sublessor shall indemnify Sublessee from hazardous environmental conditions or violations caused directly by the Sublessor, its employees, agents, or licensees during or subsequent to the Term of this Sublease.
c. Sublessee shall be solely responsible for obtaining at its cost and expense; any environmental permits required for its operation under this Sublease independent of any existing permits.
SCLAA Standard Sublease Page 17 Boeing Buildings 717B. 671, 675 & Lot 20
31. Compliance with Environmental Laws.
a. The words and phrases set forth below shall have the following definitions:
I. “Hazardous Materials” means and includes any material that because of its quality, concentration or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment. Hazardous Materials include hazardous wastes, toxic substances, petrol eum products and motor fuels and similar substances and materials, including all s ubstances and materials defined as hazardous or toxic substances or materials under California Health and Safety Code section 25501(n) or any other similarly applicable state, federal or local law.
II. “Environmental Laws” means and includes the various health and safety laws and regulations of state, federal and local agencies pertaining to the manufacture, use, storage, disposal, release, and reporting relating to Hazardous Materials
b. Following the Commencement Date, Sublessee shall not cause or permit any Hazardous Materials to be used, generated, manufactured, produced, stored, brought upon, or released, on, under or about the Subleased Premises, or transported to and from the Subleased Premises, by Sublessee, its agents, employees, contractors, or invitees in violation of any Environmental Laws. Sublessee shall indemnify, defend, and hold harmless the Sublessor from any damage, cost, expense, liability, fine, or penalty resulting from any unauthorized discharge, emission, spill, storage, release, disposal or use of any Hazardous Materials by Sublessee, its officers, agents, employees, contractors or invitees or any of them. This obligation of Sublessee shall survive the Expiration Date or earlier termination of this Sublease and shall apply whenever the Sublessor incurs cost or liability arising from any use or activity of Sublessee relating to Hazardous Materials during the Term hereof.
c. Without limiting the foregoing, if the presence of any Hazardous Materials on, under or about the Subleased Premises caused by Sublessee, its agents, employees, contractors, or invitees results in an unpermitted, unscheduled or unauthorized release or contamination of the Subleased Premises by such Hazardous Materials at any time during the Term or any extension thereof, then Sublessee shall at its sole cost and expense promptly take all actions necessary to return the Subleased Premises to the condition existing prior to the unpermitted, unscheduled or unauthorized release of any such Hazardous Materials on the Subleased Premises.
d. Sublessee shall immediately notify the Sublessor of the occurrence of any of the following events: (i) receipt by Sublessee of any correspondence or communication from any governmental entity regarding the application of Environmental Laws to the Subleased Premises or the investigation or enforcement by such governmental entity of any such Environmental Laws in connection with Sublessee’s SCLAA Standard Sublease Page 18 Boeing Buildings 717B. 671, 675 & Lot 20 occupancy or use of the Subleased Premises, and (ii) unpermitted, unscheduled or unauthorized release of any Hazardous Materials on the Subleased Premises which may occur at any time during the Term (or any extension thereof) of the Sublease.
e. To the extent Sublessee may conduct any use or activity on the Subleased Premises which includes the use, handling, transport, or disposal of any Hazardous Materials in quantities which exceed the threshold amounts authorized under California Health and Safety Code Section 25507, Sublessee shall, at its sole cost and expense, prepare and submit to t he City of Victorville (or designated local Certified Unified Program Agency “CUPA”) for approval, renewal or amendment, as applicable, a Business Plan for the Subleased Premises, as the term “Business Plan” is described under California Health and Safety Code Section 25505.
f. Notwithstanding any of the foregoing, in the event Sublessee, its agents, employees, contractors, or invitees, fails to use and maintain the Subleased Premises in accordance with the provisions of this Section 31, Sublessor and/or the City of Victorville (the “City”) shall have the right, but not the obligation, to enter the Subleased Premises and undertake remedial action as necessary in order to ensure that the Subleased Premises are in compliance with all Environmental Laws. In such event, Sublessee shall reimburse Sublessor and/or the City for all reasonable sums incurred by it for such remediation activities for which Sublessee is responsible pursuant to Sections 30 and 31. In such event Sublessor may, in its sole discretion, and not limiting its ability to recover through any other means provided in law or equity, determine to deduct all or a part of such sums due under this section from the Security Deposit.
32. Surrender of Subleased Premises. On the Expiration Date, Sublessee shall surrender and deliver possession of the Subleased Premises to the Sublessor clean and free of debris and in as good condition as it was on the Sublease Commencement Date, reasonable wear and tear excepted.
33. Compliance with Laws. Sublessee shall comply with all applicable Federal, State, and local laws, regulations and standards that are or may become applicable to Sublessee’s activities on the Subleased Premises (hereafter collectively “Laws”, including without limitation the SCLA and FAA Rules and Regulations).
Sublessee agrees to abide by and conform to the SCLA Rules and Regulations, attached hereto as Exhibit C, and incorporated herein by this reference as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. The Sublessor shall have the right, from time to time, to modify, amend and enforce said rules and regulations. In addition, Sublessee agrees to abide by the Selected FAA Rules and Regulations, attached hereto as Exhibit E and incorporated herein by this reference, as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. Sublessor shall not be responsible to Sublessee for the noncompliance with said rules by other tenants, their officers, agents, employees, and invitees. The judgment of any court of competent SCLAA Standard Sublease Page 19 Boeing Buildings 717B. 671, 675 & Lot 20 jurisdiction, or the admission of Sublessee in a proceeding brought against Sublessee by any government entity, that Sublessee has violated any such Laws (except where such admission may be the basis for settlement) shall be conclusive as between the Sublessor and Sublessee and shall constitute grounds for declaration of default, breach, forfeiture, and termination of this Sublease by the Sublessor.
34. Defaults.
a. In the event Sublessee should default in the performance of any covenant or condition of this Sublease (excluding the payment of any monthly rent or other amounts due hereunder) and such default is not cured or removed within thirty (30) days after service of written notice upon Sublessee of such default in the performance of any covenants and conditions; then in such event, the Sublessor shall have the right and option to terminate this Sublease, to re-enter the Subleased Premises, to evict Sublessee and to remove Sublessee’s possessions, all without being deemed guilty of any trespass, and without prejudice to any claim for arrears of rent or breach of covenant. Notwithstanding the foregoing, if Sublessee, prior to the expiration of such thirty (30) day period for default diligently commences to cure such default but is unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Sublessee continues to make a diligent effort to cure the default.
b. Failure to pay Monthly Base Rent or any other amounts required to be paid to Sublessor by Sublessee when due shall also be deemed a default which Sublessee shall cure such default within ten (10) days after service of written notice.
c. Any statutory notice required as part of any eviction action or similar type of proceeding may be included with any notice of default given pursuant to this Section and the Sublessor need not declare a default and have such default remain uncured prior to delivery of such statutory notice.
35. Remedies of the Sublessor. In the event of any breach of the Sublease by Sublessee and the cure periods described in Section 34 hereof have expired, the Sublessor may at any time thereafter, with or without notice or demand and without limiting the Sublessor in the exercise of any other right or remedy which the Sublessor may have by reason of such breach, do any of the following:
a. terminate Sublessee’s right to possession of the Subleased Premises by any lawful means, in which case this Sublease shall terminate, and Sublessee shall surrender possession of the Subleased Premises to the Sublessor.
This may involve the Sublessor filing an unlawful detainer action and receiving a court order for Sublessee to vacate the premises. In any such event, the Sublessor shall be entitled to recover from Sublessee all damages incurred by the Sublessor by reason of Sublessee’s default, including, but not limited to the cost of repairing or restoring damages to the Subleased Premises caused by Sublessee, the cost or removal of Sublessee’s improvements, fixtures and other contents of the Subleased Premises, SCLAA Standard Sublease Page 20 Boeing Buildings 717B. 671, 675 & Lot 20 costs associated with past or future brokerage commissions and marketing expenses and the other costs payable by the Sublessor in connection with the recovery of possession of the Subleased Premises, including but not limited to reasonable attorneys’ fees and court costs, as well as: (a) the worth at the time of award by the court having jurisdiction thereof of the unpaid rent which had been earned at the time of termination; and (b) the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the Term after the time of such award may exceed the amount of such rental loss for the same period that Sublessee proves could be reasonably avoided; or
b. pursue any other remedy now or hereafter available to the Sublessor under the laws or judicial decisions of the State of California.
36. Default of Sublessor. In the event Sublessor should default in the performance of any covenant or condition of this Sublease and such default is not cured or removed within thirty (30) days after service of written notice of default upon Sublessor, then, Sublessee shall have the right and option to terminate this Sublease.
If Sublessor, prior to the expiration of such thirty (30) day period for a default, diligently commences to cure such default, but is unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Sublessor continues to make a diligent effort to cure the default. In the event of an uncured default Sublessee shall have all remedies available at law or in equity for any default or breach of this Sublease by the Sublessor.
37. Force Majeure-Unavoidable Delays. If the performance of any act required by this Sublease to be performed by either Party is prevented or delayed by reason of an act of God; strike; lockout; labo r disputes; inability to secure materials; unreasonably restrictive governmental laws or regulations; or any other cause except financial inability that is not the fault of the Party required to perform the act, the time for performance of the ac t will be extended for a period equiva lent to the period of delay, and performance of the act during the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment of rent by Sublessee as required by this Sublease or the performance of any act rendered difficult solely because of the financial condition of the Party required to perform the act.
38. Notices. Any and all notices or demands required or permitted to be given hereunder must be personally delivered or be mailed by registered or certified mail, return receipt requested, or sent by a nationally recognized overnight courier, addressed as follows:
To the Sublessor: Southern California Logistics Airport Authority 18374 Phantom West
Victorville, CA 92394
Attn: Airport Director
SCLAA Standard Sublease Page 21 Boeing Buildings 717B. 671, 675 & Lot 20 With copies to: Gr een de Bortnowsky, LLP
30077 Agoura Court, Suite 210
Agoura Hills, CA 91301
Attn: Andre de Bortnowsky, Esq.
To the Sublessee: The Boeing Company
C/O MBG Consulting Inc.
980 N. Michigan Ave., Suite 1000
Chicago, IL 60611-4521
or at such other address or addresses that either Party may hereafter designate in writing to the other. Any notice or demand which is mailed by registered or certified mail as provided above shall be deemed to be effective and given for all purposes three (3) business days following the time of deposit thereof in the United States mail.
39. Miscellaneous.
a. One or more waivers of any provision of this Sublease by the Sublessor shall not be construed as a waiver of a subsequent breach of the same provision and the Sublessor’s consent or approval shall not be deemed to waive or render unnecessary the Sublessor’s consent or approval to or of any subsequent or similar act by Sublessee.
b. If either Party to this Sublease shall bring any action for any relief against the other, declaratory or otherwise, to enforce the terms hereof or to declare rights here under (collectively, an Action), the losing Party shall pay to the prevailing Party attorneys’ fees and costs incurred in bringing and prosecuting such Action and/or enforcing any judgment, order, ruling, or award (collectively, a Decision) granted therein, all of which shall be deemed to have accrued on the commencement of such Action and shall be paid whether such Action is prosecuted to a Decision. Any Decision entered in such Action shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such Decision. The court may fix the amount of reasonable attorneys’ fees and costs on the request of either Party. For the purposes of this paragraph, attorneys’ fees shall include, without limitation, fees incurred in the following: (1) post-judgment motions and collection actions; (2) contempt proceedings; (3) garnishment, levy, and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation. “Prevailing Party” withi n the meaning of this paragraph includes, without limitation, a Party who agrees to dismiss an Action upon the other Party’s payment of the sums allegedly due or performance of the covenants allegedly breached, or who obtains substantially the relief sought by it. Nothing contained in the Section shall be interpreted to mean that Sublessor has agreed to arbitrate any dispute which may arise hereunder.
c. This Sublease can be modified, supplemented, amended, or rescinded only by a writing expressly referring to this Sublease and signed by authorized representatives of the Parties.
SCLAA Standard Sublease Page 22 Boeing Buildings 717B. 671, 675 & Lot 20 d. If any provision of this Sublease or any application thereof shall be invalid or unenforceable, the remainder of this Sublease and any other application of such provision shall not be affected thereby. Unless otherwise expressly provided herein, any approval or consent of Sublessor required hereunder shall not be unreasonably withheld or delayed. This Sublease shall be binding upon and inure to the benefit of and be enforceable by the respective successors of the Parties hereto. The Section headings in this Sublease are for purposes of reference only and shall not limit or define the meaning hereof.
e. This Sublease contains the entire understanding and agreement of the Parties, supersedes all prior understandings and agreements, and cannot be changed orally. This Sublease shall be construed in accordance with the laws of the State of California. Time is of the essence.
f. Any conflict between the printed provisions, exhibits, or addenda of this Sublease and the typewritten or handwritten provisions, if any, shall be controlled by the typewritten or handwritten provisions provided such typewritten or handwritten provisions are initialed by both Parties.
g. This Sublease shall be of no force or effect unless executed by both Parties. Each person executing this Sublease for the respective Parties expressly represents and warrants that he or she has the authority to enter into leases on behalf of and bind the entity on whose behalf this Sublease is executed.
h. This Sublease may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of the same instrument.
[END OF THIS PAGE – SIGNATURES FOLLOW]
SCLAA Standard Sublease Page 23 Boeing Buildings 717B. 671, 675 & Lot 20 IN WITNESS WHEREOF, the Parties have executed this Sublease as of the day and year first written above.
SUBLESSEE:
THE BOEING COMPANY
_______________________________ _____________________ Authorized Signatory Date
Title
SUBLESSOR:
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”)
__________________________
_____________________
Keith C. Metzler Date
Executive Director
ATTEST:
__________________________
_____________________
Jennifer Thompson Date
SCLAA Secretary
APPROVED AS TO STANDARD FORM:
________________________ _____________________
Andre de Bortnowsky Date
SCLAA Legal Counsel
RISK MANAGER
__________________
_____________________
Sandra Bostick Date
SCLAA Standard Sublease Page 24 Boeing Buildings 717B. 671, 675 & Lot 20
EXHIBIT A
DESCRIPTION OF SUBLEASED PREMISES
A portion of Building 717B consisting of approximately Nine Thousand Eight Hundred Three (9,803) square feet of office space located on the SCLA at 18368 Readiness Street, Victorville, California 92394, as depicted on Exhibit A-1 and Exhibit A-2 .
Vehicle parking is depicted in yellow on Exhibit A-2 as “Vehicle Parking Area”; and
Building 671 (Nose Dock 1 and Nose Dock 2) consisting of approximately Three Thousand One Hundred and Twenty (3,120) square feet of storage space located on the SCLA at 12950 Aerospace Drive, Victorville, California 92394, as depicted on Exhibit A-3 and Exhibit A-5; and
Building 675 (Nose Dock 3 and Nose Dock 4) consisting of approximately Three Thousand One Hundred and Twenty (3,120) square feet of storage space, located on the SCLA at 12950 Aerospace Drive, Victorville, California 92394, as depicted on Exhibit A-4 and Exhibit A-5; and
A portion of the main ramp “Lot 20” consisting of approximately Three Hundred Thirty Thousand (330,000) square feet of ramp space located on the main ramp depicted on Exhibit A-6 as “Area Available to Park”.
These properties combined in total, with the improvements thereon, represent the Subleased Premises.
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SCLAA Standard Sublease Page 25 Boeing Buildings 717B. 671, 675 & Lot 20
EXHIBIT B
TENANT IMPROVEMENTS
Subject to the terms and conditions of the Sublease, Sublessor and Sublessee hereby affirm and acknowledge that the following items of work shall represent the Tenant Improvements contemplated for Building 717B within this Sublease. The Tenant Improvements must be approved in writing by Sublessor prior to any work being performed.
Location Description Notes
Building
717B
Remove the existing service entrance and
replace with a 600-amp metered switch gear.
Building
717 B
Remove two existing electrical panels and
replace with two new 100 amp main breaker
120/208 volt panels with 20 amp single pole
breakers installed for branch circuits.
Building
717 B
Tie all existing electrical circuits into the new
metered switch gear and panels. May require
additional wire and conduits.
Total Expense Not to Exceed: $41,000
SCLAA Standard Sublease Page 26 Boeing Buildings 717B. 671, 675 & Lot 20
EXHIBIT C
SCLA RULES AND REGULATIONS
Southern California
Logistics Airport
Rules and Regulations
Amended
April 17, 2007
Exhibit C
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.1 of 38
RULES AND REGULATIONS FOR THE USERS OF SOUTHERN CALIFORNIA LOGISTICS AIRPORT; ESTABLISHING FEES FOR THE VARIOUS USES; DEFINING TERMS; PROHIBITING OR LIMITING CERTAIN ACTIVITIES; FIXING PENALTIES FOR VIOLATIONS; AND PROVIDING FOR AMENDMENTS TO
THESE RULES AND REGULATIONS AS MAY BE NEEDED FROM TIME TO TIME SECTION 1. SHORT TITLE:
1.1 These Rules and Regulations shall be referred to as the Southern California Logistics Airport (SCLA) Rules and Regulations. It may be amended by a majority vote by the Board of the Southern California Logistics Airport Authority (SCLAA).
SECTION 2. APPLICABILITY:
2.1 These Rules and Regulations apply equally to every Airport User. The Airport Operating Manual or Specifications, as applicable, adopted in accordance with FAR Part 139, and the Airport Policies and Procedures Manual are hereby made by reference a part of these Rules and Regulations.
SECTION 3. RESPONSIBILITIES
:
3.1 Management: It shall be the responsibility of the Airport Director to fairly and impartially administer these Rules and Regulations.
3.2 Users: It shall be the responsibility of every Airport User, pilot or other, to become familiar with the SCLA Rules and Regulations and to obey those Rules and Regulations. Current copies of these Rules and Regulations will be maintained reflecting any amendments and will be posted at the SCLA Administrative Office and at Million Air. Additional copies will be provided by the SCLA Airport Director through the SCLA Administrative Office to any Airport User who requests such copy.
SECTION 4. DEFINITIONS:
For the purposes of these Rules and Regulations, the following definitions and meanings shall apply unless otherwise specified:
4.1 “Air Operations Area” or “AOA” means the area upon which aircraft are able to operate and includes the runways, taxiways, taxi lanes, apron area, and the vehicle and personnel gates that lead to these areas.
4.2 “Air Carrier” means any person who undertakes directly, by lease, or other arrangement, to engage in air transportation of persons or things. An “Air Carrier” operates in various categories, under authority or certification by the FAA and holds a current FAA certificate to transport air passengers or property for hire.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.2 of 38
4.3 “Aircraft” means a device that is used, or is intended to be used, for flight in the air. “Aircraft” includes airplanes, helicopters and gliders, and lighter than air devices such as blimps or balloons, but does not include hang gliders.
4.4 “Aircraft Owner” shall mean a Person who holds title to an Aircraft.
4.5 “Aircraft Operator” shall mean the Person who is operating or controlling an Aircraft while said Aircraft is on Airport property.
4.6 “Aircraft Storage” shall have the same meaning as “Stored Aircraft”.
4.7 “Airport” means the SCLA, its buildings and facilities, all lands owned and or controlled by the SCLAA contiguous to the airport, including airspace above such land and the designated approaches thereto.
4.8 “Airport Director” means that person so appointed by the SCLAA or his designated representative.
4.9 “Airport Master Security Program” or “Airport Security Program” means the Security Program, which is the responsibility of an Airport Operator pursuant to TSA 1542.
4.10 “Airport Operations and Security Department” or means the Airport Operations and Security Department of the Southern California Logistics Airport.
4.11 “Airport Security Areas” or “Secure Areas” means Air Operations Areas, roadways, and common Air Carrier areas within terminal fa cilities (i.e. baggage makeup areas), excluding exclusive leasehold structural areas, to which public access is limited or denied under Airport Master Security Program.
4.12 “Airport Security Coordinator” or “ASC” means an individual appointed by the Airport Director, charged with the responsibility to implement and enforce the Airport Master Security Program, employed by the City of Victorville and under the direction of the Airport Director, or the Airport Security Coordinator’s designated representative.
4.13 “Airport Tenant” means an individual, partnership, corporation or other business entity, and its agents, employ ees, representatives, and subtenants which occupies or controls all or part of Airport areas, buildings or other facilities which they lease from t he Southern California Logistics Airport Authority.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.3 of 38
4.14 “Airport Tenant Security Program” shall have the same meaning as set forth in TSA1542.113, entitled “Airport Tenant Security Programs.”
4.15 “Airport User” means any Person who uses the Southern California Logistics Airport, including but not limited to, Airport Tenants and subtenants, Fixed Base Operators, Air Carriers, Aircraft Owners, Aircraft Operators, Commercial Operators, passengers, and their employees, agents, representatives, agents, successors and assigns.
4.16 “Authorized Person” means an individual authorized with a Personnel Identification Badge issued by the Airport Security Coordinator, or his designated representative, to have unescorted access authority to Airport Security Areas.
4.17 “Air Traffic” means Aircraft operating in the air or on an Airport surface, exclusive of loading ramps or parking areas.
4.18 “Air Traffic Clearance” means an authorization issued by Air Traffic Control personnel for an Aircraft to proceed under specified traffic conditions within controlled airspace.
4.19 “Air Traffic Control” or “ATC” shall mean the Air Traffic Control of the Southern California Logistics Airport.
4.20 “Airworthy Condition” means a condition wherein an Aircraft can take flight under its own power. See definition of “Non-Airworthy Aircraft” below.
4.21 “Autorotation” means a rotorcraft flights condition in which the lifting rotor is driven entirely by action of the air when the rotorcraft (helicopter) is in motion.
4.22 “Balloon” means a lighter-than air aircraft, which is not engine-driven.
4.23 “Based Aircraft,” means Aircraft that are parked on the Airport for thirty (30) days or longer and are not part of an aircraft storage program.
4.24 “Ceiling” means 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”.
4.25 “City” means the City of Victorville.
4.26 “Commercial Operator” means 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, fire fighting, agricultural aviation activities, or traffic surveillance.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.4 of 38
4.27 “Criminal History Records Check (CHRC)” means a fi ngerprint-based criminal history records check as described in 49 CFR § 1542.
4.28 “Commercial Use” means use of SCLA for revenue-producing commercial activities.
4.29 “Dismantled Aircraft” means an Aircraft which has been disassembled to a point where it is not reasonable to assume that said Aircraft can be reassembled and placed in an Airworthy Condition.
4.30 “Driving Permit” means a permit issued by the Airport Director or his designee in order for an Individual to operate a Vehicle on the Airport.
4.31 “Escort” means an Authorized Person or Authorized Persons accompanying, monitoring, directing and controlling the actions of an Individual or Individuals who are not displaying Personnel Identification Badges, and/or who are not otherwise Authorized Persons, within Airport Security Areas. The Authorized Person(s) performing an Escort must be displaying valid Personnel Identification Badges, must be accompanying the Individual or Individuals for performance of direct job duties and must ensure that those Individuals who are being escorted remain within sight and sound at all times.
4.32 “Executive Director” means the Executive Director of the Southern California Logistics Airport Authority.
4.33 “FAA” means the Federal Aviation Administration of the United States Government or any federal agencies succeeding to its jurisdiction.
4.34 “Fixed Base Operator” means any Person who rents, leases, or owns facilities located on SCLA, 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 service, including but not limited to any of the following:
1. Selling and/or servicing new and used Aircraft and
component parts;
2. Aircraft maintenance and repairs;
3. Sales and/or repair of avionics;
4. Aviation training (including ground or flight instruction);
5. Aerial photography;
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.5 of 38
6. Air ambulance service;
7. Aircraft agricultural operations (crop dusting, spraying, or the application of seed, fertilizers, pesticides, defoliants, etc);
8. Aircraft rental, charter, leasing;
9. Aircraft Storage;
10. Fuel and oil sales and servicing; and
11. Aircraft servicing or ground handling including cargo handling, baggage handling, lavatory service, water service, air starts, ground power, or other elements related to aircraft handling.
4.35 ”Flight Visibility” means the average fo rward horizontal distance from the cockpit of an Aircraft in flight, at which prominent unlighted objects may be seen and identified by day, and prominent lighted objects may be seen and identified by night.
4.36 “Ground Visibility” means prevailing horizontal visibility near the earth's surface.
4.37 “Helicopter” means a roto r driven aircraft (r otorcraft) that, for its horizontal motion, depends primarily on its engine-driven rotors.
4.38 “IFR” means Instrument Flight Rules covering meteorological conditions below the minimums for flight under visual (VFR) conditions.
4.39 “Individual” means a natural person.
4.40 “Maintenance” means inspection, overhaul, repair, preservation, and the replacement of parts, including preventive maintenance.
4.41 “Movement Area” means the runways, taxiways, and other areas of the Airport, which are utilized for taxiing, takeoff, and landing of Aircraft. The Movement Area does not include parking and loading ramps. Entry into the Movement Area requires ATC approval.
4.42 “Night” means 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.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.6 of 38
4.43 “Non-Airworthy Condition” means when an Aircraft cannot take flight under its own power as a result of being in disrepair or in the process of being disassembled.
4.44 “Notice of Violation” means a written notification of non-compliance with these Rules and Regulations, issued by the Airport Director or his designated representative.
4.45 “Person” means 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.
4.46 “Personnel Identification Badge” means a Personnel Identification Badge issued to an Individual by the Southe rn California Logistics Airport for purposes of granting that Individual unescorted access authority to the Restricted Area.
4.47 “Ramp” means an improved surfaced area reserved exclusively for the parking and taxiing of Aircraft.
4.48 “Restricted Area” means all areas or facilities accessible only by Authorized Persons or Persons under Escort, and including all Ramp areas and the Aircraft Operations Area (AOA).
4.49 “Roadway” means that portion of an area improved or designed or ordinarily used for vehicular travel. A roadway on the Airport Operations Area is called a vehicle service road (“VSR”).
4.50 “Runway” means an improved surfaced area reserved exclusively for the landing and taking off of Aircraft.
4.51 “Scheduled Air Carrier” means any Person providing scheduled passenger or cargo service from the Airport in accordance with a published schedule and having at least one scheduled departure per day, or no less than five scheduled departures per week, and operating under authority of the Federal Aviation Administration and the Airport.
4.52 “Security Perimeter” means the portion of the Airport that is enclosed by fencing, walls or other barriers, and to which access is controlled through designated entry points.
4.53 “SCLA” means Southern California Logistics Airport.
4.54 “SCLAA” means Southern California Logistics Airport Authority.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.7 of 38
4.55 “Security Devices” means equipment installed or placed by or under the direction of the Southern California Logistics Airport Authority, or designated representative, to monitor or control entranc es to and exits from Airport Security Areas. “Security Devices” include, but are not limited to, bells, sirens, communication equipment, locks and corresponding keys, emergency exits, electronic access control and other security equipment.
4.56 “Security Identification Display Area” or “SIDA” shall have the same meaning as set forth in TSA1542.205. Before being granted unescorted access to the SIDA, Individuals must undergo a Criminal History Record Check and employment history verification.
4.57 “Security Screening Area” means an access point, including entrances and exits, to the Airport Security Areas, Secure Areas and the Sterile Areas, where Vehicles, equipment, Individuals, and belongings are inspected prior to entrance.
4.58 “Sterile Area” means an area to which access is controlled by the inspection of Individuals and property in accordance with FAA and TSA requirements.
4.59 “Stirling Airport International” or “SAI” means SCLA’s development partner.
4.60 “Stored Aircraft” means aircraft that are parked at/on airport property and are part of an aircraft storage program.
4.61 “Taxiway” means an improved surfaced area reserved exclusively for use by aircraft to proceed to and from ramp and runway areas.
4.62 “Traffic Pattern” means the traffic flow that is prescribed for aircraft landing at or taking off from SCLA.
4.63 “Unnecessary Noise” means any engine nois e that is greater than the level produced when the engines are at idle except when required for taxiing of the aircraft, takeoff or landings.
4.64 “Vehicle” means every device in, upon or which any Individual or property is or may be transported or drawn upon a roadway, excepting devices moved by human power or used exclusively upon stationary rails or tracks. A bicycle shall be considered a vehicle under all portions of these Rules and Regulations, which govern right-of-way.
4.65 “Vehicle Owner” means a person who holds the legal title of a vehicle.
4.66 “Vehicle Service Road” or “VSR”. (See Roadway.)
4.67 “VVEDA” means the Victor Valley Economic Development Authority.
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.8 of 38
4.68 “VFR” means Visual Flight Rules covering meteorological conditions, above those requiring flight under IFR conditions.
4.69 “Word Construction”: The following construction applies throughout these Rules and Regulations:
1. Words importing the singular include the plural,
2. Words importing the plural include the singular; and,
3. Words importing the masculine gender include the
feminine and the neutral gender.
SECTION 5. NECESSITY:
5.1 These Rules & Regulations are enacted to protect the health, safety and peace, and to promote the welfare and convenience of the general public using SCLA, or affected by activities related to the Airport by providing for the orderly conduct of activities on, or related to, the Airport. The use of the Airport or any of its facilities in any manner shall create an obligation on the part of the Airport User to obey all of the rules and regulations herein provided.
SECTION 6. BASED AIRCRAFT:
6.1 Any Person desiring to base an Aircraft at SCLA shall register such Aircraft at the Airport Operations and Security Department as soon as possible but not later than 24 hours after the arrival of the Aircraft. If a change in ownership occurs while the Aircraft is based at the Airport, the new Aircraft Owner shall re-register the Aircraft with the Airport Operations and Security Department, again, no later than 24 hours after the change in ownership occurred.
6.2 Except as specifically set forth in an Airport land or facility sublease, Aircraft in a Non-Airworthy Condition shall not be permi tted to remain on the Airport in excess of five (5) days without the express prior written permission of the Airport Director. Such Aircraft shall be removed from the Airport or stored at the Aircraft Owner’s expense.
SECTION 7. AIRCRAFT STORAGE AND PARKING:
7.1 Aircraft shall only be stored or parked at places as set forth in such Person’s sublease or as may be authorized by the Airport Director, and such storage or parking shall be at the sole risk of the Aircraft Owner and/or Aircraft Operator, and without any responsibility to SC LAA, VVEDA or Stirling Airport International, or any of their officers, employees, agents or representatives, for any loss of, or damage to the Aircraft while so stored or parked. The Aircraft Owner and/or the Aircraft Operator shall be responsible for the tying-down and/or securing of his Aircraft. The Aircraft Owner and/or Aircraft Operator shall likewise be responsible for any li ability arising from or caused by his
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Aircraft or his activities. All Airport Tenants desiring to store Aircraft at SCLA must notify the Airport Director in writing prior to the Aircraft arriving at SCLA.
SECTION 8. COMMERCIAL ACTIVITY:
8.1 No Person shall utilize SCLA for any revenue-producing commercial activities without the express written permission of SCLAA or its designated representative, and obtaining a City of Victorville Business License for such activities, and paying the fees and charges established for such use or license.
SECTION 9. AIRPORT FEES
:
9.1 Funding for Airport operations and capital improvements is derived through various types or classes of Airport User Fees. Airport User fees are specifically established to compensate the Airport for the us e, maintenance and repair of Airport facilities, as well as to minimize the need for on-going general taxpayer support.
9.2 A schedule of rates and charges for the use of the Airport and its facilities may be found as Attachment A to these Rules and Regulations.
9.3 Any Aircraft Owner or Aircraft Operator 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.
SECTION 10. HOURS OF OPERATION:
10.1 SCLA shall be open for public use at all hours of the day and night, subject to any restrictions imposed by the Airpor t Director due to inclement weather, condition of the landing area, presentation of special events, construction or repair activities, or similar causes. The control tower is open 24 hours a day, 7 days a week. The Airport is attended from 6:00 A.M. to 10:00 P.M. daily by Million Air. Services may be obtained from Million Air during said hours at telephone number (760) 246-7794 or UNICOM (122.85 MHz).
SECTION 11. UNATTENDED AIRCRAFT:
11.1 No Aircraft shall be left unattended on the Airport unless properly secured or within a hangar. Aircraft Owners and/or Aircraft Operators of Aircraft left so unattended shall be liable for damage to other Aircraft or property resulting from the failure to adequately secure or tie down the Aircraft.
SECTION 12. MAINTENANCE:
12.1 Unless otherwise authorized by the Airport Director, or specified as a permitted use in an Airport facility or land sublease, no Aircraft or Vehicle maintenance, other than that which is required to remove damaged Aircraft from the Runway or Taxiway(s), or that which is neces sary to replace a flat tire, shall be
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performed at SCLA except in areas specifically designated by the Airport Director for that purpose.
SECTION 13. EQUIPMENT REQUIREMENTS:
13.1 Every Aircraft using SCLA shall be equipped with a fully functional, two-way radio, except when operating into or from the Airport under an FAA waiver for radio maintenance. The ATC frequency is 118.35 MHz and the ground control frequency is 124.45 MHz. Weather and traffic advisories are broadcast on 109.40 MHz. No fixed-wing Aircraft equipped with a tailskid shall operate on any paved surface of SCLA.
SECTION 14. ACCIDENTS:
14.1 Every Person involved in, or witnessing an Aircraft operating accident on the Airport shall report promptly the details of such accident to the Airport Director, ATC, or FAA.
14.2 In addition, the Aircraft Owner and/or the Aircraft Operator, including pilot, shall report fully to the California Division of Aeronautics the details on any accident in which there is death or injury, or in which damage to the property of others exceeds $400.00.
14.3 The Aircraft Owner and/or the Aircraft Operator of an Aircraft which is damaged or wrecked in an accident shall be responsible for the prompt removal of the Aircraft as directed by the Airport Director.
14.4 Where the Aircraft Owner and/or Airc raft Operator of an Aircraft which is damaged or wrecked in an accident is unable to arrange for removal of such disabled or wrecked Aircraft, the Airpor t Director shall hav e the authority to move, or arrange the removal of, the Aircraft when released (if applicable) by the FAA or the National Transportation Safety Board (NTSB).
14.5 No liability shall be incurred by the SCLAA, SAI, VVEDA, the Airport Director or any of their officers, employees, agents, successors and assigns, for damage aggravated by, or resulting from, removal of an Aircraft pursuant to Section 14.4 of these Rules and Regulations.
SECTION 15. NOISE:
15.1 No Person shall operate any Aircraft in flight or on the ground in such a manner as to cause Unnecessary Noise as determined by applicable Federal or State or local laws and regulations.
SECTION 16. RESTRICTED AREAS:
16.1 Restricted Areas include those areas leased to the Army National Training Center, Advanced Unmanned Systems-Concept Exploration, Southern California Aviation, Victorville Aerospace LLC, Army Reserve, or other area that has direct access to the AOA. No Person shall enter any Restricted Area
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except (a) employees or invitees of the leaseholder, (b) Persons duly authorized by the Airport Director, including, but not limited to, Authorized Persons who have received Personnel Identification Badges, or (c) security or fire-fighting personnel.
16.2 Every Person who has access to a restricted area shall close and lock the door, gate or other device immediately after it has been used unless it is under surveillance of a Person who is responsible for controlling entry at that access point.
16.3 Every Airport Tenant whose premises have total or limited access to any Restricted Areas shall prevent access to the Restricted Areas by Persons who are not authorized to have such access.
16.4 The Airport Director’s staff is authorized to close and lock any door, gate or other device permitting access to a Restricted Area that is found open or unlocked and unattended.
16.5 Every Person to whom a key, code or access device has been issued by the Airport Security Director, or his designated staff, shall use the key, code or access device to enter a Restricted Area only in accordance with any conditions of issuance and only at Restricted Area access points.
16.6 Except where authorized by the Airport Director and subject to any conditions of issuance, no Person shall:
1. Loan or give to another Person a key, code or access device issued to him; or
2. Have possession of, or use for any purpose, a key, code or access device that was issued to him by a Person not
having authority to do so.
SECTION 17. ANIMALS:
17.1 No Person shall willfully and knowingly allow or permit any animal owned, possessed, or harbored by him to enter the Airport unless the animal is leashed or restricted in such manner as to be under control, or is in a shipping container, or is otherwise under physical restraint, nor shall any Person allow or permit such animal except “special assistance animals” (i.e. guide dog) to enter any Airport building without the approval of the Airport Director.
SECTION 18. ACCESS TO RUNWAYS AND TAXIWAYS:
18.1 No Person shall enter upon any Runway or Taxiway, or the movement area as defined by FAA, without the express consent of the Air Traffic Control Tower representative.
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SECTION 19. STARTING ENGINES:
19.1 No Person shall start any Aircraft engine at SCLA:
1. Unless a competent operat or is at the controls;
2. 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 (Skid equipped helicopters do not have brakes or chocks);
3. 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, hangars, shops, other buildings, or can cause injury to passengers, spectators, or other personnel; and
4. When the Aircraft is within 50 feet of any building without prior written consent.
SECTION 20. ENGINE RUN-UPS
:
20.1 No Person shall conduct an aircraft engine run-up beyond idle anywhere on the Airport other than in areas designated by the Airport Director (with the exception of helicopters, which routinely operate with engines beyond idle as part of normal operations).
20.2 Persons who want to conduct an engine run-up beyond idle shall first call ATC on the ground control frequency, 124.45 MHz, and request clearance to one of the two engine run-up areas. ATC will advise the Airport User, given the current wind direction, to proceed to one of two designated engine run-up areas.
20.3 ATC will make the final determination of which engine run-up area should be used.
20.4 The Person requesting the engine run-up beyond idle will conduct the engine run-up in the area designated by ATC and he shall exercise the necessary caution to ensure no damage is created by the engine run-up.
SECTION 21. TAXIING:
21.1 Only those personnel that have training and are qualified to taxi a particular type of Aircraft are permitted to taxi Aircraft at SCLA.
21.2 No Person shall taxi any Aircraft into, out of, or within any hangar or other building on or adjacent to the Airport.
21.3 No Person shall taxi any Aircraft acro ss the double yellow lines on the edge of Taxiways and the apron.
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21.4 Nor shall any Person move any Aircraft under its own power on the Airport unless that Person is in full control of such aircraft, and has assured himself that there is no danger of collision wi th other Aircraft, Vehicles, equipment, buildings, or other obstacles. Aircraft shall be taxied at a safe speed.
SECTION 22. DUMPING REFUSE:
22.1 No Person shall place, deposit, or dump any garbage, cans, bottles, papers, ashes, sewage, carcass of any dead animal, offal, trash rubbish, debris or any other refuse in any location on the Airport except in containers designed for such purposes.
SECTION 23. FIREARMS:
23.1 No Person shall shoot any projectile from a firearm or other device, into, on, or across any portion of the Airport, nor have in his possession, or under his control, any firearm which is not unloaded and securely wrapped and boxed for shipment, or explosive or explosive device; provided,
23.2 However, that this Section does not apply to peace officers, military personnel, or Airport security guards who are acting in the performance of their duties as such. Firearms on Airport property are pre-coordinated with ASCs when possible.
SECTION 24. TRAFFIC PATTERN:
24.1 Every Aircraft before landing and after takeoff shall be flown as directed by ATC.
SECTION 25. TAKE-OFFS AND LANDINGS:
25.1 No aeronautical activity shall be conducted at SCLA except in conformance with current Federal Aviation Regulations, State of California law and regulations, and these Rules and Regulations.
25.2 All initial takeoffs shall commence at the end of the Runway unless cleared by the ATC Tower.
25.3 Due to the complex mix of Aircraft that utilize SCLA, there is need to limit those type of aircraft and aerial activities that represent a potential hazard to normal flight operations. The following aircraft and aerial activities are restricted from operating at SCLA except in emergency situations or with prior approval of the Airport Director:
1. Hot Air Balloons;
2. Hang Gliders;
3. Parachutists;
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4. Radio Controlled Aircraft;
5. Ultra Light Aircraft;
6. Gliders; and
7. Motorized Lighter than Air Aircraft.
SECTION 26. AIRCRAFT FUELING AND DEFUELING:
26.1 In accordance with the regulations from the National Fire Protection Association (NFPA), Uniform Fire Code (UFC), and the Department of Transportation (DOT) the following rules and regulations must be observed while fueling aircraft:
26.2 All fuel servicing must be done outside of any building or hangar. (NFPA 407 3-10).
26.3 Aircraft shall be located a minimum of fifty (50) feet away from any building openings, doors, windows, etc.
26.4 During fuel handling, no passenger shall be permitted in or on the Aircraft unless a cabin attendant is stationed at or near the cabin door.
26.5 Fueling shall not be done while an on-board engine is operating (“hot fueling”) without the permission of the Airport Director and then, it shall only be permitted when representatives of the Fire Department are standing by.
Exception is allowed for A.P.U. operation on large aircraft. (NFPA 407 3-5.1)
26.6 Equipment other than Aircraft service equipment shall not be permitted within fifty (50) feet of an Aircraft during fueling or defueling. (NFPA 407 3-
5.1)
26.7 No open flames, smoking, battery chargers, or any material or device which is likely to cause a spark shall be in use within fifty (50) feet of an Aircraft or fueling truck during fueling or defueling operation. (NFPA 407 3-7, 3-8).
Exception is allowed for Ground Power Units.
26.8 All hoses, funnels and appurtenances used in fueling or defueling activities shall be equipped properly with grounding and bonding devices to prevent possible static ignition of volatile liquids or vapors. Such grounding and bonding devices shall be used during all fueling and defueling activities.
26.9 Refueling vehicles, fuel hoses and defueling equipment shall be maintained in a safe, sound, operational and non-leaking condition.
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26.10 Gravity (hand) fueling may not be accomplished with any container having a capacity greater than five (5) US gallons. (NFPA 407 3-2.3)
26.11 All portable fuel containers must be approved and marked so as to identify the product contained therein. (UFC)
26.12 Any fuel transported by privately owned vehicles, not specifically designed for the transport of flammable liquids and appropriately placarded, are limited to a maximum of 20 U.S. gallons in an approved and marked container. (DOT and UFC)
26.13 Portable fuel containers shall be kept in approved locations, at least fifty (50) feet from any building, and secured in a cabinet or locker marked “Flammable.” (UFC)
26.14 Every Person engaged in aircraft fuel handling shall exercise due care to prevent the overflow of tanks and spilling of fuel. Fuel spills are a fuel operator’s responsibility.
26.15 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 cleaned up. In event such spills or leaks are over 10 ft. in any direction, or over 50 sq. ft. in area, or continues to flow, or are otherwise a hazard to persons or properties, the SCLA Fire Department & Haz-Mat shall be notified.
26.16 In addition, all fuel storage on the Airport shall be regulated by NFPA 407, the UFC, and be approved by the City of Victorville Fire Chief or his designee.
SECTION 27. VEHICLE OPERATIONS:
27.1 No Person shall travel on any portion of the Airport except upon the roads, walks, or places provided for the particular class of traffic, nor occupy the roads or walks in such manner as to hinder or obstruct their proper use.
27.2 Unless escorted by an Authorized Pers on who is authorized to drive on the AOA, no Person shall operate a Vehicle on the Airport wi thout successfully passing the SCLA driving test, being issued a Personnel Identification Badge, and possessing a valid state driver’s license, with the exception of the Airport ARFF, or Law Enforcement.
27.3 No Person shall operate a powered industrial vehicle without a Driving Permit on the Ramps, Taxiways, Runways or designated Roadways. An exception will be made for employees working within the exclusive leaseholders premises as authorized by the Airport Director.
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27.4 Persons who employ Individuals at the Airport shall be responsible to provide training for powered industrial vehicles and equipment, and for maintaining all training materials and records relating to the employee’s duties.
27.5 SCLA requires that employers "certify" that training and evaluations have been completed and maintained in the employee’s files up to 180 days upon separation of employment, and are available for inspection by the FAA, TSA and the Airport Operations and Security Department upon request.
27.6 Motor-vehicle traffic shall yield the right-of-way to Aircraft.
27.7 Every vehicle, excluding ARFF and construction vehicles operating within the Movement Area, shall have a flashing yellow beacon and carry a 2-way radio or be escorted by a vehicle so equipped. Construction vehicles must be identified with an orange and white flag and a 2-way radio or be escorted by an authorized vehicle so equipped.
27.8 Any accident, involving a motor vehicle, which results in a fatality or injury, or in property damage, shall be reported by the driver, or his representative, to the Airport Director.
27.9 No Person shall operate any motor vehicle on the airport in excess of 25 miles per hour except emergency vehicles responding to an emergency situation, or emergency vehicles involved in training or drills with prior ATC coordination. On passenger loading ramps, around parked Aircraft, and in areas immediately adjacent to hangars, speed shall not exceed ten (10) miles per hour.
27.10 Vehicles shall not be parked on the Airport other than in the manner and locations indicated by posted traffic signs and markings.
27.11 Unattended Vehicles may be parked only in designated Airport vehicle parking lots.
27.12 Vehicles parked other than specified in “27.10” and “27.11” above, may be moved by Airport personnel, and in such event a towing charge will be levied prior to releasing the Vehicle from impound. Neither SCLAA, VVEDA, the City, nor any of their respective officers, employees, agents, or designated representatives shall be liable for damages sustained by such Vehicles during said movement.
27.13 Motor vehicles shall not be driven on or across Runways or other portions of the Movement Area without permission from ATC Tower to do so. Two-way radio communications with Ground Control (on frequency 124.45) shall be required between the ATC Tower and such vehicles. Exceptions may be granted during maintenance activities as long as two-way radio
SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.17 of 38
communications control is maintained with at least one vehicle controlling the activity. ARFF vehicles may contact the ATC tower on the fire net per operational agreement.
27.14 Motor vehicles shall not be driven or parked upon, or within fifty (50) feet of Aircraft parking areas, ramp areas, or aprons without express approval of the Airport Director. Exceptions: aircraft support, airport maintenance, emergency vehicles, or fuel or service vehicles.
27.15 No Person may operate a motor vehicle or Aircraft in or on any portion of the Airport while under the influence of alcohol or drugs.
27.16 No Vehicle shall be operated on the Airport unless the Vehicle has been registered to drive on the Airport with Airport Operations. To register a Vehicle to drive on the Airport requires: a) proof of ownership, b) proof of vehicle registration with the Department of Motor Vehicles for State of California, or the Department of Motor Vehicles for another State; and c) proof of insurance as set forth in Section 37 of these Rules and Regulations.
27.17 Vehicles passing through electronic access perimeter security gates are required to stop just past the gate and wait for the gate to fully close before continuing. Vehicle operators should ensure no unauthorized persons enter the AOA while the gate is closing. Vehicle entry procedure is one vehicle per gate activation unless the vehicles following are under Escort.
SECTION 28. FIRE HAZARDS:
28.1 No Person shall light or smoke any cigarette, cigar, pipe, or similar object in the following Airport areas:
i. Within any hangar, or fuel handling or fuel storage areas; ii. Inside any Aircraft (whether or not such Aircraft are parked or stored) or within fifty (50) feet thereof;
iii. Within fifty (50) feet of any "No Smoking" sign posted; iv. Within any Vehicle operating on the AOA;
v. Within any building on the Airport.
28.2 No Person may use flammable liquids, solv ents, or substances to clean any Aircraft, engine, part, or accessory thereof, within any hangar or building except a building specially designed for that purpose and approved in writing by the Airport Director. Such approval shall only be granted when the Airport Director approves the ventilation provisions, fireproofing, and fire-extinguishing equipment.
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28.3 No Person shall light or use any open flame for any purpose in any hangar or other building on the airport without the prior written consent of the Airport Director and Fire Chief.
28.4 No Person shall operate any welding or cutting equipment (electric or gas) anywhere on the Airport without prior written approval of the Airport Director and the SCLA Fire Department. A welding permit is required and may be obtained at the fire station.
28.5 No Person shall clean or degrease any Aircra ft or part thereof except at or in a maintenance station properly equipped for such purposes, or in a space designated or authorized by the Airport Director.
28.6 No Person shall store or stock any mate rial or substance, or lease or permit such activities in or on the Airport in such a manner, or of such nature, as to constitute a fire hazard. No Person shall keep, store or discard any flammable liquid, gas, signal flare, or other flammable material in any hangar, shop, building, room, enclosure, or other place on the Airport except in areas specially designated by the SCLA Fire Department for such purpose.
28.7 Lessees of hangars, shops, or other Airport areas shall provide suitable metal receptacles with hinged lids for the storage of oily waste, rags, and other similar rubbish. The lessee shall remove all such materials at frequent intervals.
28.8 Every lessee shall maintain his leased area clean and reasonably free of oil, grease, waste, other flammable materials and weeds.
28.9 Lessees shall provide, and maintain in proper working order, adequate and readily accessible fire extinguishers. Ea ch such extinguisher shall bear a suitable tag, which indicates the most recent date of inspection or servicing.
SCLA Fire Department shall approve all extinguishers, their type, and location.
28.10 No Person shall move, relocate, or otherwise disturb any wheeled fire extinguisher on the Airport without t he permission of the SCLA Fire Department unless specifically for emergency use.
28.11 All fires on the Airport, regardless of size, even if extinguished, shall be immediately reported to the SCLA Fire Department without delay.
SECTION 29. FUEL SALES:
29.1 No Person shall deliver aviation fuels or lubricants to, or dispense such fuel from, at, or upon the Airport without a lease or permit from the Airport Director.
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29.2 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, other than to a central fuel person or location at or upon the Airport, other than to a central fuel service stand provided by the Airport, there is levied against such lease or permit holder, a flowage fee of ten cents (.10) for each gallon of fuel so delivered.
29.3 No fuel shall be stored anywhere on the Airport except approved by the Airport Director and the SCLA Fire Department.
SECTION 30. SECURITY:
30.1 Though not required, SCLA operates under the guidelines established by FAR Part 139 “CERTIFICATION AND OPERATIONS SERVING CERTAIN AIRCRAFT OPERATORS.” To this end, SCLA has prepared and implemented a security program that parallels the requirements contained in TSA 1542. This program includes the following elements: Personnel Identification Badging, controlled access to the Air Operations Area (AOA), driver licensing for personnel operating on the AOA, Vehicle registration, and perimeter security. All personnel operating at SCLA are required to abide by the SCLA Airport Master Security Program.
30.2 Personnel Identification Badges. Only those Individuals that have a need to be on the AOA will be issued a Personnel Identification Badge and granted unescorted access to the AOA and Restricted Areas. Individuals that require access must apply for a Personnel Identification Badge at the Airport Operations and Security Department. Lost or stolen Personnel Identification Badges must be reported to the Airport Operations and Security Department immediately. The application process includes:
1. A ten-year employment/education or unemployment history verification check, with five years verified by the Individual’s former employer(s), and
2. A CHRC, which is information gathered from the Federal Bureau of Investigation, provided to SCLAA after submitting a Live Scan Fingerprint to the Transportation Clearing House.
30.3 Fingerprints are collected by the Airport Security Coordinator, or his designated representative, at the expense of the Individual’s employer.
30.4 A Fingerprint-based Criminal History Records Check as described in TSA 1542.209 is required before authorized unescorted access to the Airport is granted. The results of the CHRC will be among the determining factors as to whether the issuance of a Personnel Identification Badge is granted.
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30.5 Identification for Authorized Persons contains the Individual’s photograph, name, company name, expiration date, identification number and color blocks that indicate authorized access areas granted to the badge holder.
30.6 Individuals who have a need to be within the Airport Operations Area (AOA) are required to attend an Airport Familiarization and Security Identification Display Area (SIDA) class and will be required to display a Personnel Identification Badge while operating in such areas.
30.7 The Airport Badging Office issues Non-Driving I dentification Badge and Identification Badges with Driving Permit, upon completion of a SIDA Class and AOA Drivers Training and satisfactory score upon completion of a written test. Driving permits will be determined and issued in accordance with the applicant’s job related duties on the airport.
30.8 The Airport Security Coordinator will confirm or deny an applicant’s request for a badge based on verification of the CHRC and the
employment/education or unemployment history verification check, with five years verified by the employer, and the need of the applicant to access the AOA. If a Personnel Identification Badge is warranted, the Airport Security Coordinator, or his designated representative, will issue the Badge.
30.9 All Personnel Identification Badges issued by the Airport Operations and Security Department are the property of Southern California Logistics Airport Authority and MUST be returned upon expiration, separation of employment (for any reason), when the job function no longer requires Personnel Identification Badge, and upon demand of staff from the Southern California Logistics Airport. Any misuse or willful failure to return a Personnel Identification Badge is punishable by fine as dictated in the Airport Rules and Regulations. Personnel Identification Badges are non- transferable and must be used only by the Individual to whom they are issued.
30.10 No Individual shall enter the AOA of the Airport without a Personnel Identification Badge unless the Individual is accompanied by an Authorized Person with a Personnel Identification Badge who shall be fully responsible for the unbadged person being escorted. Fire department personnel responding to an emergency wearing uniforms or other identifying clothing, shall not be required to wear an identification badge.
30.11 No Authorized Person shall Escort any Individual who is not in the performance of job-related duties and who requests access to the Airport as a visitor without the consent and approval of the Airport Director. Person(s) denied access to the Airport by Airport security officers, must abide by the decision of the security officers under the direction of this rule. Visitor Escort must be conducted during normal business hours of the Airport
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Operations and Security Department, unless prior approval of the Airport Director has been established
30.12 Authorized Persons shall always prominently display their Personnel Identification Badge while on the AOA. Failure to prominently display an issued Personnel Identification Badge while on the AOA shall constitute a violation for which a fine shall be assessed as set forth in Section 43,
PENALTIES AND APPEALS
.
30.13 Individuals who do not display a Personnel Identification Badge, and who are not under Escort by an Authorized Person displaying a Personnel Identification Badge, shall immediately be reported to the Airport Director and shall be escorted off the AOA by the Airport Director or his staff.
30.14 Authorized Persons who have been issued a Personnel Identification Badge and are involved in an accident while operating on the AOA will be asked to submit to a drug-screening test. Authorized Persons who refuse to submit to the drug-screening test will be considered as having failed the test and the Authorized Person will be considered to be under the influence of drugs or alcohol.
30.15 Controlled Access to the AOA
. Any Airport Tenant that has direct access to
the AOA, should, because of their immediacy of access, be considered part of the AOA. These Airport Tenants shall therefore take measures to protect access to the AOA. As required by TSA 1542.113 Airport Tenant Security Programs, the Airport Tenant must assume responsibility for specified security measures of the Secure Area, AOA, or SIDA. Airport Tenants are encouraged to develop individual security programs designed to meet the needs of their particular businesses. In all cases such security programs must be approved
in writing by the Airport Director.
30.16 While on the AOA, customers and clients of the Airport or Airport Tenants must be under Escort at all times. Failure to provide an Escort may constitute the issuance of a Notice of Violation that could result in sanctions.
See Section 43, PENALTIES AND VIOLATIONS
for a discussion on the
scope of fines/penalties associated with violations of the Airport Security Program.
30.17 The Airport Operations and Security Department administers the licensing program for drivers on the AOA. This program involves a study element that describes the procedures for driving on the AOA at SCLA. A written test will be administered and all applicants must pass the test in order to receive a license to drive on the AOA.
30.18 Vehicle Registration for driving on the AOA. All Vehicles that operate on the AOA must be registered with the Airport Operations and Security
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Department. All Vehicles that operate on the AOA will be issued a Radio Call Sign that must be utilized while on the AOA. Airport Standard Operating Procedure No. 200-01 describes the Radio Call Sign Procedure.
30.19 Perimeter Security
. The Airport is surrounded by an eight-foot (8’) high chain link fence. Barbed wire is placed atop this fence. There are numerous locked gates that access the Airport perimeter. Airport Tenants that are situated on the immediate perimeter of the AOA must employ secured personnel doors.
30.20 All Persons that operate on the Airport are charged with the responsibility of maintaining the security of the Airport. To this end, Persons who observe breeches in security are to call said incidents to the attention of the Airport Operations and Security Department.
30.21 A Person’s responsibility under Section 30.20 includes breeches to the procedural elements of the Airport Security Program, as well as the physical elements of the Airport Security Program (perimeter fence, vehicle gates, etc.).
30.22 The issuance under this Section of either (i) a Personnel Identification Badge, or (ii) a Personnel Identification Badge with Driving Permit to drive on the AOA, shall be conditioned upon the express consent of the Individual to whom the badge is issued, to a drug and alcohol screening in the event that such Individual is involved in an accident while on Airport property.
30.23 In the event that an Individual to whom a Personnel Identification Badge or Personnel Identification Badge with Driving Permit has been issued (a) tests positive for the use of a controlled substance not prescribed by a physician or has a blood alcohol content equal to or in excess of .08, or (b) refuses to consent to a drug and alcohol screening, then such Individual’s Personnel Identification Badge and/or Driving Permit shall be revoked by the Airport Director.
30.24 A Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will remain revoked until the Individual’s employer petitions the Airport Director in writing, to have said Individual’s Personnel Identification Badge and/or Driving Permit reinstated.
30.25 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations remains the prerogative of the Airport Director; however, reinstatement will not be unreasonably withheld.
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30.26 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will depend on, as a minimum, the employer’s verification of a negative drug test as part of a return to duty test. Any Individual who has verified positive drug test results on two drug tests will not be permitted to thereafter work or drive on the AOA, regardless of whether such Individual is accompanied by an Individual properly in possession of a Personnel Identification Badge and/or Permit.
SECTION 31. AIRPORT SECURITY AREAS:
31.1 Unauthorized Entry and Exit : No Person shall seek entry to or exit from Airport Security Areas except through designated entrances and exits. No Individual shall seek entry to or exit from Airport Security Areas over, under or through fencing, walls, window, air or other vents.
31.2 Only Authorized Persons, or those Individuals under Escort, shall have access by any means to Airport Security Areas.
31.3 A Person performing an Escort must, at all times, be in a position to actively monitor, direct and control the movements and actions of the accompanied Individual(s).
31.4 No Individual shall enter/exit or allow another Individual to enter/exit into Airport Security Areas except by using his Personnel Identification Badge.
No Individual shall follow another Individual into an Airport Security Area without first using his or her Personnel Identification Badge through any electronic access installed at the entry/exit point. This provision does not apply to an Individual under Escort
31.5 No Individual shall drive a Vehicle into Airport Security Areas unless the Individual has used his or her Personnel Identification Badge to open any electronic access installed at the entry point. No Individual shall allow other Vehicles to follow or tailgate in Airport Security Areas. This provision does not apply to Vehicles under Escort.
31.6 No Person shall tamper with or in any way hamper the effective operation of Security Devices.
31.7 Security of Access Points
: No Person shall leave open, propped or
unsecured any door, gate or access point leading to or allowing access to Airport Security areas. No Person shall hold, prop or cause a door, gate or access point to be open beyond the period of time allowed by a Security Device unless an Authorized Person attends the door. When an Authorized Person is attending a security door, he or she must be physically present at the door and must use his or her Personnel Identification Badge to activate additional time for the door to be open.
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SECTION 32. R ESPONSIBILITY OF AIRPORT TENANTS:
32.1 Adherence to the Security Rules and Regulations : Airport Tenants with access to Airport Security Areas on their leased area shall follow these Rules and Regulations by posting signs, approved by the SCLAA, which prohibit access into the Airport Security Areas. Airport Tenants with access to Airport Security Areas shall at all times keep the access secured or staffed in a manner that prevents unauthorized Individuals from accessing Airport Security Areas. Airport Tenants shall retain keys or other means of access to Airport Security Areas under their control and issue such access only to Authorized Persons.
32.2 Airport Tenants with access to Airport Security Areas shall appoint at least one employee of the Airport Tenant as the security contact primarily responsible for the Airport Tenant’s leased area which access Airport Security Areas. Airport Tenants shall advise the Airport Security Coordinator in writing of the Individual or Individuals at all times having such responsibility.
32.3 Airport Tenants must provide a quarterly employee roster to the Airport Operations and Security Department in the months of January, April, July and October, and immediately notify the Airport Operations and Security Department of employee separation.
32.4 Airport Tenants must immediately confiscate Personnel Identification Badges, with or without access media, as well as any keys that would allow access to the Airport, from Individuals upon separation of employment. Any misuse or willful failure to return a Personnel Identification Badge is punishable by fine as dictated in these Rules and Regulations.
SECTION 33. OTHER PROHIBITED ACTS:
33.1 Bypassing Security Screening Area : No Individual shall enter a Sterile Area through a Security Screening Area unless first going through equipment that has been installed for inspection of Individuals and their belongings. Armed federal and local law enforcement officers on official duties at the Airport, airport operations and maintenance personnel, and others exempted by the FAA do not have to be inspected, provided they follow FAA and TSA regulations.
33.2 Statements Against Aviation Safety or Security
: No Person shall make a
statement to another so as to indicate that the Person or another may have possession of a firearm, bomb or explosive device while at the Airport.
33.3 Interference with Airport Personnel : No Person shall intimidate, threaten, hinder or obstruct Airport Personnel or Airport Security Officers in the performance of his or her official job duties or lessen the ability of such person to perform his or her duties.
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33.4 Interference with Flight Operations : No Person shall intimidate, threaten, hinder or obstruct an aircraft crewmember in the performance of his or her official job duties or lessen the ab ility of such aircraft crewmember to perform his or her duties.
33.5 Unattended Baggage
: No Person shall leave any bag, luggage, box or
container unattended in the terminal areas of the Airport, which are accessible to the public.
33.6 Presenting a Weapon at Security Screening Area
: No Person shall place
firearm(s), explosive device(s), knife/knives or other FAA/TSA prohibited items that could be used as a weapon onto inspection equipment at a Security Screening Area without first declaring such item(s). Only Persons authorized by the TSA may test Security Screening Areas.
SECTION 34. ENFORCEMENT:
34.1 Notices of Violation : The Airport Operations and Security Department will conduct inspections and enforce violations of these Rules and Regulations, Minimum Standards, and any permits issued hereunder regarding activities at the Airport. All Personnel Identification Badge holders and persons with access cards will be subject to a Notice of Violation (NOV) when reasonable grounds exist to believe that Rules and Regulations, Minimum Standards or a permit have been violated, either by commission or omission.
34.2 NOV’s will be monitored and issued by Airport Operations and Security Department personnel or by recommendation from an Authorized Person of Authority. A copy of the NOV will be given to the Personnel Identification Badge holder, or the Person(s) observed committing the violation(s).
34.3 The NOV may serve as a notice only or may include a penalty ranging from suspension to revocation. Any violation of a severe nature as determined by the Airport Director will warrant immediate suspension or revocation of the Personnel Identification Badge. Severe violations include, but are not limited to, any violation that may result in property damage, injury, runway incursions, or other safety hazards, or that threatens the environment or public welfare.
34.4 The receipt of three (3) NOVs, which have not been appealed or that have been upheld upon appeal, within a twenty-four (24) month period will be considered grounds for revocation of the Personnel Identification Badge.
34.5 When an NOV or sanction is issued, a letter indicating as such will be sent to the Individual’s employer, advising the employer of the violation.
34.6 Upon written request, the Airport Security Coordinator may review and recommend modification of the NOV.
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SECTION 35. SUSPENSIONS:
An Individual’s authorization to use a Personnel Identification Badge may be suspended for any of the following reasons:
1. Violation of these Rule and Regulations.
2. Violation of any rule or regulation of SCLAA for which a criminal penalty may be imposed.
3. Violation while on Airport property of any law of the State of California or the United States for which a criminal penalty may be imposed.
4. Actions which interfere with or threaten the operation of the Airport, or the comfort, safety or convenience of passengers, Authorized Person’s employed by the City of Victorville, or otherwise constitute just cause for suspension.
35.2 The Airport Director or an Airport Security Coordinator shall issue written notice of the Suspension, which shall state the nature and date of the violation, the length of Suspension, and the date the Suspension shall begin and the Individual’s right to have a hearing pursuant to the provisions of Section 43 of these Rules and Regulations. The suspension may be for up to ninety (90) days as determined by the Airport Director or the Airport Security Coordinator.
SECTION 36. REVOCATION:
36.1 An Individual’s authorization to use a Personnel Identification Badge may be revoked for any of the following reasons:
1. Any act that seriously endangers property or Persons or indicates willful or reckless disregard for, and which has an immediate impact on the health, safety or welfare of the public or poses a serious threat to the security of the Airport.
2. A violation warranting Suspension where the Individual has had a previous suspension for the same or similar offense.
36.2 The Airport Director or Airport Security Coordinator shall issue a written notice of Revocation, which shall state the nature and date of violation, the date and Revocation shall begin, and the Individual’s right to a hearing pursuant to the provisions of Section 43 of these Rules and Regulations.
SECTION 37. LIABILITY INSURANCE:
37.1 Every Airport User shall carry insurance as required by their lease, sublease or permit to operate on Southern California Logistics Airport and as required
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by State and Federal regulations. Any person operating a vehicle within the fenced area of the Airport, who does not have a lease, sublease, or Operating Permit, is required to have comprehensive automobile insurance with combined single limits for bodily injury and property damage of not less than $1,000,000.
37.2 Airport Users shall provide Certificates of Insurance naming VVEDA, SCLA and Stirling Airports International as Additional Insured’s with respect to their lease, sublease or permit. These Certificates of Insurance shall also provide for a 30-day Notice of Cancellation for those policies listed on the Certificate of Insurance.
37.3 The Airport User shall formally advise its Insurers that all Vehicles in use with or without valid Airside Vehicle Permits are intended to be operated on that portion of the Southern California Logistics Airport premises known as Airside, and should those Insurers exclude, limit, or otherwise restrict coverage while the Vehicle is on Airside, the Occupant shall obtain and keep in full force and effect at all times, a policy of Aviation Liability insurance covering both license-plated and unlicensed plated Vehicles while on Airside
SECTION 38. ILLEGAL ACTIVITIES:
No Person shall:
38.1 Take or use any Aircraft, aircraft parts, instruments, or tools pertaining thereto, which are owned, controlled, or operated by any other Person, while such Aircraft, parts, instruments, or tools are stored or otherwise left on SCLA, or within its hangars, building, or facilities , without the written consent of the owner/operator thereof, except upon satisfactory evidence of the right to do so duly presented to the Airport Director, or authorized by him or so ordered by a court of competent jurisdiction.
38.2 Land, takeoff, taxi, or otherwise operate any Aircraft on, at, or from SCLA when he 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 specific authorization from the Airport Director and/or FAA if required, or his designated representative.
38.3 Operate any Aircraft on or at the Airport, or on any Runway thereof, when the Airport or Runway has been closed to traffic by the Airport Director or other legal authority, or when such closure has been indicated by the placement of an "X" at each end of the closed Runway.
38.4 Operate any aircraft on, at, or in the vicinity of SCLA in willful or wanton disregard for the safety of persons or property, whether his own or that of others.
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38.5 Engage in the performance of any aerobatics, stunt, or 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 without the permission of the Airport Director or ATC.
38.6 Engage in the sale of any goods, wares, merchandize, or services at or upon the Airport without first having secured from the Airport Director a lease or permit therefore, and paying any required fees for such lease or permit.
38.7 Board an aircraft at the Airport without the prior approval of the Aircraft’s owner or representative.
SECTION 39. AIRPORT CLOSURE:
39.1 The Airport Director 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 determines that such operations, or their continuance, would be hazardous.
39.2 Causes for such closure could include, but would not be limited to, adverse weather conditions, runway maintenance or repairs, runway obstacles, fire, Aircraft or other accident.
39.3 The Airport Director or his designee shall immediately notify the Riverside Flight Service Station and issue a NOTAM, advising of the closure.
SECTION 40. THRU-THE-FENCE ACTIVITIES
:
40.1 Thru-the-fence activities, defined as accessing the Airport from private land outside the airport perimeter for the purpose of utilizing or otherwise benefiting from the Airport, are strictly prohibited.
SECTION 41. SEVERABILITY:
41.1 Should any article, section, sub-section, sentence, clause or phrase of these Rules and Regulations be held invalid or unconstitutional for any reason, such decision shall not affect the remaining portion of these Rules and Regulations.
41.2 The SCLA Authority hereby declares that it would have adopted these Rules and Regulations and each article, section, sub-section, sentence, clause or phrase, regardless of the fact that any one or more articles, sections, sub- sections, sentences, clauses, or phrases be declared invalid or unconstitutional.
SECTION 42. DISMANTLING AIRCRAFT:
42.1 No Person shall dismantle an Aircraft of any type outside of a hangar unless they receive prior written approval from the Airport Director. Any Person permitted to dismantle an aircraft outside of a hangar must:
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42.2 Submit a written request to the Airport Director describing the type of aircraft to be dismantled, the dismantling procedures to be employed, the procedures for disposing of all dismantled material, toxic material clean up and abatement procedures, and the schedule for dismantling an aircraft.
42.3 Conduct all aircraft dismantling within a fenced in area to prevent visual contact with the dismantling activity.
42.4 Return the area used for dismantling to its original condition as approved by the Airport Director in his/her sole discretion.
42.5 Procure a performance bond to ensure any contamination, remediation of contamination and the dismantling area is returned to its original state. The amount of the bond will depend upon the pr ocedures set forth in the request and the potential exposure and land clean-up cost to the Airport.
42.6 Receive the prior approval of the SCLA Fire Department.
42.7 Adhere to all City of Victorville, State and Federal environmental regulations.
42.8 Upon receipt of the information set forth in 42.1 through 42.7 above, the availability of land to conduct dismantling and other airport operating requirements and/or constraints, the Airport Director will either approve the Aircraft dismantling request by issu ing a written Letter of Permit with appropriate indemnities and airport protection provisions to the requesting person or business or deny the request by providing a Letter of Denial to the requestor.
SECTION 43. PENALTIES AND APPEALS:
43.1 Fixing penalties for violations: Any Airport User including, without limitation, sublessees, suppliers, contractors, guests, invitees, or others that do not adhere to or violates these Rules and Regulations shall be sanctioned.
43.2 Sanctions may include, but are not limited to, a fine paid to the Airport, denial of the use of the Airport for a specified period of time, and/or a referral to the Transportation Security Administration and/or Airport Authority Attorney with a recommendation for criminal prosecution.
43.3 In determining the sanctions to be imposed, the Airport Director may take into consideration any mitigating or aggravating factors that may exist including, without limitation, the number of previous violations and the cooperation of the person involved.
43.4 Fines shall be assessed from $ 100.00 to $10,000.00 per day per incident depending on the severity of the violation.
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43.5 Should an infraction occur, and should the infraction and situation surrounding the infraction warrant, fines will be assessed on a graduated/increasing basis.
43.6 All fines assessed to a sublessee, or to a sublessee’s suppliers, contractors, guests, invitees, or others, will be added to a Sublessee’s monthly rent and subjected to late fees and default provisions as set forth in a Sublessee’s land or facility Sublease.
43.7 Fines assessed to Airport Users who do not have a land or facility Sublease at SCLA, shall be paid before the Airport Us er is permitted to use the Airport again.
43.8 Continuous violation of these Rules and Regulations shall result in denial to use the Airport. Attachment B provid es an example of fines as may be applied.
43.9 Removal from Airport Premises
: The Airport Director, or his designated
representative, may order removal of anyone from the Airport who knowingly and willfully violates any provision of these Rules and Regulations.
43.10 Recourse under Tenant’s Lease : SCLAA may take action against Airport Tenants under their lease agreements irrespective of any other penalties under these Rules and Regulations.
43.11 RIGHTS OF APPEAL
: Fines and other sanctions may be appealed to the
Executive Director. Requests for appeal must be made in writing to the Executive Director within ten (10) busi ness days from the date the fine was presented to the Airport User.
43.12 The Executive Director (or his designated representative) will convene an administrative hearing and shall serve as the hearing officer (the “Hearing Officer”). Failure of any Airport User to properly file an appeal shall constitute a waiver of its right to an administrative hearing and adjudication of the fine or any portion of the total amount of the fine.
43.13 The Airport User or other Person in receipt of the fine or sanction shall be provided a written notice of the date, time, and location of the hearing. The notice will include the date, time and nature of the alleged violation.
43.14 The hearing shall be conducted in an informal manner and strict rules of evidentiary procedure will not apply. The Hearing Officer may consider any evidence that is reasonably probative and aids in the determination of the facts.
43.15 Parties are entitled to be represented by an attorney of their choice, to bring witnesses, and present documentary evidence. Parties have the right to have
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all records or documents relevant to the proceedings provided to them at the cost of reproduction.
43.16 At the conclusion of the appeal hearing, and pursuant to the Hearing Officer’s authority, the Airport Director’s imposition of sanctions may be upheld, modified or reversed. Parties will be provided with the results of the hearing in writing, including any penalties imposed by the Hearing Officer. The decision of the Hearing Officer is final.
SECTION 44. EFFECTIVE DATE
44.1 These changes contained in the Southern California Logistics Airport Rules and regulations shall be of full force a nd effective immediately upon filing of same with proof of publication with ap proval of the Southern California Logistics Airport Authority.
____________________________
Peter R. Soderquist
Airport Director
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Attachment A
SOUTHERN CALIFORNIA LOGISTICS AIRPORT
Airport Rates and Charges
Introduction / Guiding Principles:
A.1 In establishing a Schedule of Air port Rates and Charges, the Southern California Logistics Airport Authority (the “Airport Authority”) is required by federal regulations to ensure that charges are fair, reasonable and non- discriminatory. Further, Airport Rates and Charges are to be reasonably consistent with the rates and charges being applied by other airports for similar types of activities, unless ther e is a special situation unique to the Southern California Logistics Airport.
A.2 The Airport Authority fully recognizes the FAA prohibition against the diversion of Airport revenues for non-airport purposes. It is recognized that failure to collect fair and reasonable fees and market-based rents for the use of Airport property, facilities and equipment can be considered a form of Revenue Diversion. The Authority also recognizes the FAA requirement to establish a Schedule of Rates and Charges that will permit the Airport to be as self- sustaining as possible.
Airport User Fees Defined:
A.3 Aircraft Landing Fees: The Southern California Logistics Airport Authority (SCLA) has expended a significant amount of funds to provide aviation facilities for the benefit of aircraft owners and operators. Landing fees are assessed to help offset the cost of operating and maintaining the Airport’s runway, taxiway, and aircraft parking ramp areas. Landing fees are based upon the Certified Maximum Gross Landing Weight (MGLW) of the aircraft multiplied by the Airport Authority’s established landing fee rate per 1,000 pounds of Certified Maximum Gross Landing Weight.
A.4 Commercial Aircraft: The Airport Authority assesses a landing fee on each aircraft landing conducted by an airline or other commercial Air Carrier, operating under FAR Part 121 (airline), Part 129 (international airline), Part 135 (air taxi), or other similar regulation, regardless of the purpose of the landing.
A.5 Signatory Landing Fees: Signatory landing fees are assessed to an airline, or other large (over 75,000 lbs MGLW) commercial aircraft operator having a Signatory Operating Agreement with SCLA. To be eligible for Signatory Operating Agreement status, the operator must have one or more of the following:
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i. A lease with the Airport Authority of a ground site having at least 10,000 square feet or more that is used to accommodate the organization’s primary base of
business on Airport property.
ii. A lease with the Airport Authority, or an approved sublease, of a building, or part of a building totaling at least 4,000 square feet that is used as the
organization’s primary base of operations on the
Airport.
iii. Commercial Airlines operating under the military
Civilian Reserve Air Force (CRAF) program.
A.6 Non-Signatory Landing Fees: Non-signatory Landing Fees are assessed at a rate of 125% of the Signatory Landing Fee rate for large commercial operators (over 75,000 lbs MGLW) using the Airport who do not have Signatory Operating Agreement status with the Airport Authority, or have an agreement, but do not meet any of the Signatory eligibility criteria specified in paragraph 2 above. The Non-Signatory Landing Fee is intended to compensate the Airport Authority for the operator’s use of the Airport’s runway and taxiway areas as well as compensation for the privilege of being able to access the airport to conduct business.
A.7 Private Aircraft: The Airport Authority assesses a landing fee on each aircraft landing conducted by large private operators (over 75,000 lbs MGLW) operating under FAR Part 91, or other similar regulation, regardless of the purpose of the landing. Landing fees for private aircraft that are operated under FAR Part 91 and are based at the airport under conditions set forth in a long term agreement with the Authority will be charged landing fees as required by that agreement.
Aircraft Parking Fees:
A8. Signatory Aircraft Parking Fees: Ai rcraft having Signatory status as defined in A.1 above, are not required to pay parking fees during the time an aircraft is in the loading/ unloading process (24 hour maximum). Signatory Aircraft are also exempt from aircraft parking fees on the weekend, and over national holidays, as long as the weekend/holiday parking occurs in the middle of the loading/unloading process. Signatory Aircraft that are not in the unloading/loading process, and/or use aircraft parking areas in excess of the 24-hour maximum, are required to pay established aircraft parking fees.
A9. Non-Signatory Aircraft: Non-signatory aircraft are required to pay established aircraft parking fees.
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A10. Private Aircraft: All private aircraft (both heavy and light) are required to pay aircraft parking fees. Aircraft that are based at the airport under conditions set forth in a long term agreement with the Authority will be charged parking fees as required by that agreement.
A.11 Aircraft Storage Fees: Aircraft storage fees are charged to aircraft that are stored on areas other than the main parking apron. Fees are payable under one of three different categories: under 50,000 lbs MGTW, narrow body aircraft, and wide body aircraft. Remote aircraft storage is occasioned by the many acres of closed runways and taxiways that make a suitable “hard stand” for aircraft parking. The availability of these areas is directly related to the longevity of these surfaces. As these surfaces fail to be usable for aircraft parking, they will be removed from the inventory of remote parking.
The Airport Authority makes no representation that it will maintain these surfaces and those businesses that store aircraft thereon do so at their own risk.
A.12 Fuel Flowage Fees: A substantial percentage of the fuel dispensed at SCLA is “pre-purchased” by large aircraft operators that enjoy discounts based on the large volumes of fuel these carriers purchase nationally. This pre- purchased fuel is stored in SCLA’s fuel farm to which SCLA assesses a storage fee . SCLA also assesses a flowage fee on each gallon of fuel delivered from the fuel farm to the aircraft.
A.13 Fuel flowage and fuel storage fees reflect the intent of the Airport Authority to generate reasonable revenues for the use of the airport’s fuel storage facility, while at the same time, encouraging aircraft operators to use SCLA as a base of operations.
A.14 All fuel sold at SCLA is subject to the described fuel flowage fees with following exceptions:
1. Non-Signatory Air Cargo Operators: Commercial Air Cargo Operators that are considered Non-Signatory as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft, shall pay flowage fees and storage fees.
2. Signatory Cargo Operators: Commercial Air Cargo Operators that meet the requirements of Signatory status as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft shall pay the appropriate storage fee.
3. Non-Commercial Signatory: Based operators (signatory) that are non-commercial (Part 91) will pay the appropriate storage fee and a modified flowage fee as provided in the operators lease agreement.
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Southern California Logistics Airport
Schedule of Rates and Charges
Landing Fees:
Signatory airline (over 75,000 lbs MGLW) $ .85 per 1,000 pounds MGLW Non-signatory airline (over 75,000 lbs MGLW) $1.06 per 1,000 pounds MGLW Private aircraft (over 75,000 lbs MGLW) $ .85 per 1,000 pounds MGLW Fueling Fees
:
(Flowage fee -$ .08 per gal; Storage fee -$ .02 per gallon) Aircraft Parking Fees: (commercial aircraft)
Signatory airline $200.00 per day
Non-signatory airline $200.00 per day
Transient Aircraft Tie down Fees: (general aviation aircraft; main ramp) Single engine . . . . . . . . . .. . .. . . . . . . $ 5.00 per day $ 80.00 per month Multi engine . . . . . . . . . . . . . . . . . . . . . $ 10.00 per day $120.00 per month Mid-weight aircraft (12.5K lbs to 25K lbs) $ 20.00 per day $200.00 per month Large aircraft (25Klbs to 100K lbs) $ 30.00 per day $300.00 per month Narrow body . . . . . . . . . . . . . . . . . . . . .$100.00 per day $1,000.00 per month Wide body . . . . . . . . . . . . . . . . . . . . . . . $200.00 per day $2,000.00 per month Wash Rack:
Any aircraft……………………………….........$ 40.00 per hour $240.00 per day Live Scan Fingerprint Transmission Fee Per Applicant for Criminal History Records Check:
Call Airport Operations at (760) 243-1915 for Fingerprint transmission fees.
Personnel Identification Badge
Personnel Identification Badge with or without access card……….…...$ 10.00 Lost Personnel Identification Badge …………………………………….$ 100.00 (Fees are subject to change)
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Notes:
Parking charges for Signatory Airlines do not apply for the first 24 hours, weekends, or holidays. Transient aircraft tie down fees apply to aircraft remaining overnight. Transient aircraft remaining parked longer than overnight Military aircraft are exempt from paying landing, parking and storage fees.
Definitions
:
Signatory –
Having a lease or sublease of a ground site or building space on the Airport in accordance with the Airport Authority’s Rates and Charges Policy; or, an airline having a contractual airline operating arrangement with an organization that has such a lease on airport property.
Non-signatory
–
Those operators who do not have an On-Airport Lease Agreement with the Airport Authority in accordance with the Rates & Charges Policy.
MGLW
– Maximum (certificated) Gross Landing Weight
MGTW – Maximum (certificated) Gross Takeoff Weight
Narrow body aircraft - i.e. B-727; B-737; DC-9; MD-80
Wide body aircraft - i.e. B747; B-777; DC-10; MD-11
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Attachment B
SCLA
SCHEDULE OF FINES
B.1 In most situations, a sanction or fine will be levied upon the employer of the Individual involved in the infraction. All sanctions or fines assessed will be added to the employer’s basic monthly rent and subjected to late fees and default provisions as set forth in an Airport Tenant’s land or facility sublease.
Fines assessed to Airport Users who do not have a land or facility Sublease at SCLA, shall be paid before the Airport Us er is permitted to use the Airport again. Continuous violation of these Rules and Regulations shall result in denial to use the Airport.
B.2 The following schedule should be regarded as a suggested schedule of fines. The Airport Director has the sole discretion and authority to levy fines, their amount and final disposition.
B.3 For minor infractions related to vehicle operations on the AOA such as:
Speeding on the AOA. $100.00
Operating a vehicle on the AOA without:
Airport Issued I’D Badge or drivers permit, appropriate markings or two-way radio communication with ATCT. $100.00 Runway incursion. $500.00
Taxiway incursion. $300.00
For negligence resulting in, and failure to correct, FOD $100.00 B.4 For breeches in security such as:
1. Leaving a perimeter gate unattended. $100.00
2. Failure to accompany non-badged person on the AOA. $100.00
3. Sharing a security code or vehicle gate card. $300.00
4. Bypassing Security. $300.00
5. Sharing a Personnel Identification Badge. $300.00
6. Losing a Personnel Identification Badge. $100.00
B.5 For miscellaneous infractions of the Rules and Regulations such as:
1. Smoking in a non-approved area. $100.00
2. Parking or storing aircraft in non-approved areas. $100.00
3. Performing aircraft maintenance in unauthorized areas. $100.00
4. Knowingly allow an unsafe condition to exist. $300.00
5. Bringing an unauthorized vehicle on the airport. $100.00 B.6 A Federal Aviation Administration (FAA) or Transportation Security Administration (TSA) fine levied at the SCLA may be directly forwarded to a tenant if such tenant action is cause for the FAA/TSA penalty
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A second violation of the above listed offenses will result in the doubling of the applicable fine. A third offense will result in the tripling of the applicable fine and a suspension of privileges until corrective actions are taken and documented.
SCLAA Standard Sublease Page 27 Boeing Buildings 717B. 671, 675 & Lot 20
EXHIBIT D
USE AND CONDITION OF SUBLEASED PREMISES
The Subleased Premises for Building 717B are to be used by the Sublessee for the purpose of general office and data processing uses pertaining to the performance of design, manufacturing, and sales of commercial aircraft.
The Subleased Premises for Building 671 (Nose Dock 1 and Nose Dock 2) and Building 675 (Nose Docks 2 and Nose Docks 3) are to be used by the Sublessee for the purpose of storage of general and hazardous materials.
The Subleased Premises for Lot 20 are to be used by the Sublessee for the purpose of parking, fueling and de-fueling, running auxiliary power units, idle engine runs and light maintenance of Boeing aircraft. Heavy aircraft maintenance, demolition, or disassembly shall not be permitted in this area.
The condition of the Subleased Premises shall be established resulting from a walk- through inspection attended by both Sublessor and Sublessee during the annual routine building inspection. The findings of this walk-through inspection shall be memorialized at the time of the walk-through via the SCLA Property Inspection Form.
SCLAA Standard Sublease Page 28 Boeing Buildings 717B. 671, 675 & Lot 20
EXHIBIT E
SELECTED FAA RULES AND REGULATIONS
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37 ATTACHMENT C
RESOLUTION NO. SCLAA
25-008
RESOLUTION NO. SCLAA 25-008
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHERN
CALIFORNIA LOGISTICS AIRPORT AUTHORITY AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2024-2025
WHEREAS, the Executive Director of the Southern California Logistics Airport Authority (“SCLAA”) did heretofore submit to the SCLAA Board of Directors an estimate of the expenditures and revenues of the City departments and offices, together with a proposed budget for the fiscal year 2024-2025; and
WHEREAS, copies of said budget were prepared and distributed to the SCLAA Board of Directors, approved by the SCLAA Board of Directors prior to June 30, 2024, and have been available for the inspection by the public in the office of the Authority Secretary of the SCLAA; and
WHEREAS, after preparation of the budget, a need to amend the budget is being recommended to the SCLAA Board of Directors for approval; and WHEREAS, the Executive Director or his designee will provide all necessary justification for the budget amendment as an attachment to this resolution or in the associated SCLAA agenda report.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SOUTHERN
CALIFORNIA LOGISTICS AIRPORT AUTHORITY HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the annual budget for the fiscal year 2024-2025 for the SCLAA be hereby amended to reflect a change in the amounts and associated accounts listed below and as described in the corresponding Agenda Item.
Account Amount Adjusted
4500125-44605 179,514.12
SECTION 2. That copies of such amended budget, certified by the Authority Secretary, shall be filed with the auditors of the SCLAA and in the office of the Authority Secretary for public inspection and certified copies thereof shall be made available for use by the SCLAA, City departments, offices and subsidiary districts of the City.
Item Number: 17
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Jennifer Thompson, City Clerk
Subject:
Discussion and possible action to place a memorial sign at the intersection of El Evado Road and Seneca Road in honor of Deputy Hector Cuevas Jr.
Recommendation:
Any action is at the discretion of Your Honorable City Council.
Fiscal Impact:
There is no fiscal impact associated with this item at this time. However, if the City Council decides to move forward with signage, the cost to create four signs and install said signage could cost approximately $550. These funds would come from Public Works 2505008-52440 for fabrication and materials and 2505008-51100 for labor.
Background:
At the City Council meeting of April 1, 2025, it was moved by Mayor Becerra, with majority approval, to agendize an item for discussion and possible action to place a memorial sign at the intersection of El Evado Road and Seneca Road in honor of Deputy Hector Cuevas Jr.
Discussion:
This item is being presented to Council so that Council can further discuss whether it would like to place a memorial sign at the intersection of El Evado Road and Seneca Road, recognizing that intersection as the City’s memorial intersection in honor of Deputy Hector Cuevas Jr.
Staff remains available for any questions or comments you might have.
Attachments: A. None
Item Number: 18
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Jennifer Thompson, City Clerk
Subject:
Discussion and possible action to determine whether members of the City’s commissions, committees and boards should adhere to the same standards as the City Council specifically including but not limited to administrative procedures, communication, conduct and conflict of interest provisions as outlined in the City Council Policy and Procedures Manual
Recommendation:
Any action is at the discretion of Your Honorable City Council.
Fiscal Impact:
There is no fiscal impact associated with this item at this time.
Background:
At the City Council meeting of April 15, 2025, it was moved by Council Member Jones, with majority approval, to agendize an item for discussion and possible action to determine whether members of the City’s commissions, committees and boards should adhere to the same standards as the City Council specifically including but not limited to administrative procedures, communication, conduct and conflict of interest provisions as outlined in the City Council Policy and Procedures.
Discussion:
This item is being presented to Council so that Council can further discuss whether members of the City’s commissions, committees and boards should adhere to the same standards as the City Council specifically including but not limited to administrative procedures, communication, conduct and conflict of interest provisions as outlined in the City Council Policy and Procedures.
Staff remains available for any questions or comments you might have. 4 0
1 7
Attachments: A. None