Item Number: 9
City Council / Board of Directors
Consent Calendar
Meeting of: January 20, 2026
Submitted By:
James Murawski, Airport Director
Subject:
Notice of Completion for Building 701 Demolition, Project #CC25-134 Recommendation:
That the Southern California Logistics Airport Authority Board of Directors:
(1) Approve the Notice of Completion for Building 701 Demolition, Project #CC25-134; and
(2) Authorize the Executive Director to execute the Notice of Completion.
Fiscal Impact:
This action will result in a fiscal impact of $26,660.50. A retention of five prevent was withheld from each pay estimate during construction in accordance with the Construction Agreement. Upon Board approval of the Notice of Completion (“NOC”), the retention of $26,660.50 will be released thirty-five days after the NOC is recorded. Retention funds are available as follows:
Funding Source Current Budget
450-20110 Building 701 Demolition Retention $26,660.50
Strategic Plan Goal:
Goal E. Invest in Infrastructure: Project #CC25-134 invested in infrastructure by removing a dilapidated building, further preparing the site for future development Background:
Building 701 at the Southern California Logistics Airport was located outside of the Airport Operations Area in a rectangular plot of land bordered by George Boulevard, Readiness Street, and Phantom West. The two story 19,800 square foot structure was constructed in 1968. Due to lack of demand, this office building had not been occupied since it was abandoned by the Air Force in 1992. Staff determined that the building was an ideal 4 5
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candidate for demolition, given the historical lack of demand, the staggering cost to rehabilitate the building, and the potential for future development of aeronautical support buildings, including the potential for one or two wide body capable aircraft hangars.
On July 15, 2025, a Construction Agreement was awarded to Vertex Civil, LLC., to facilitate the demolition of Building 701. Demolition work commenced in September 2025.
During demolition, significant unforeseen quantities of asbestos containing material were discovered. On October 21, 2025, staff brought Amendment One to the Construction Agreement to the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors to increase the contract not to exceed value and extend the term of the Agreement to allow the unforeseen asbestos containing material to be removed.
Discussion:
The demolition of Building 701 necessitated the regulatory compliant removal and disposal of approximately 67,000 square feet of asbestos containing material. All utilities to the building were cut and capped. The building superstructure was demolished and removed, with some items being sent for recycling. The foundation slab and footings were excavated, broken into manageable pieces, and stored at the Airport for future use as base material. The site was backfilled with clean soil and compacted to match the existing grade.
On November 25, 2025, staff inspected the demolition site and determined that the project was completed. Furthermore, the project was completed below the amended budget of $563,674.10 for a total cost of $533,210.
Staff requests and recommends that the SCLAA Board of Directors approve the issuance of the NOC for Building 701 Project #CC25-134 and authorize its execution by the Executive Director. Upon execution, the NOC will be filed with the San Bernardino County Recorder’s office to offer an opportunity for sub-contractors to make a claim for any work performed that remains unpaid. Thirty-five days after the NOC filing, should no claims be made, the SCLAA will release the retention currently held and owed to Vertex Civil, LLC., in the amount of $26,660.50.
Staff remains available for any questions or comments you may have.
Prepared By:
Samuel Evans, Airport Business Analyst
Sisco Elekana, Airport Project Technician
Jose Gutierrez, Airport Business Technician
Attachments: A. Site Map
B. Notice of Completion
C. Demolition Photos