Victorville City Council
February 17, 2026

FIRE PREVENTION | BUSINESS LICENSE | BUILDINGAccomplishmentsAccomplishments

PROJECTS ATA GLANCE
Pictured are a few projects that theBuilding Department staff were able tohelp developers complete.

BUILDING
Building Permit AnalysisBuilding Permit Analysis
This chart illustrates the single-family residential permit history for the first two quarters of 2024 compared to the first two quarters of 2025. It specifically reflects permits that were issued and finalized. The data indicates a significant decrease in both issued and finalized residential permits in 2025 relative to 2024.

Issued and Finalized Single Family Residential Permits
Miscellaneous Finalized Permits
This chart illustrates miscellaneous permits finalized during the first two quarters of 2024 compared with the first two quarters of 2025. Miscellaneous permits include projects not associated with new construction, such as patios, pools, block walls, HVAC installations, and water heater replacements. The data shows a significant decrease in finalized miscellaneous permits in 2025 relative to 2024.

BUILDING
Building Permit AnalysisBuilding Permit Analysis
I s s u e d C o m m e r c i a l & I n d u s t r i a l P e r m i t s This chart illustrates the history of commercial and industrial new construction permits for the first two quarters of 2024 compared with the first two quarters of 2025. It specifically reflects the total square footage issued and finalized each month. The significant increase in 2025 is primarily attributed to two large commercial projects.

Our Permit Technicians!
Building Dept. Clerical!
Ongoing exterior work on a tract homewithin a residential development.

BUILDING
Inspections and StopsInspections and Stops
This chart shows inspections and stops for the first two quarters of the 2025. Some individual site visits (“stops”) involve multiple inspections, which is why the number of inspections is typically higher.

Building Dept. Inspector on the job!
Verifying compliance with City Code and Ordinances.

BUILDING
Building Permit Totals & RevenueBuilding Permit Totals & Revenue R e v e n u e / N u m b e r / P e r c e n t a g e o f I s s u e d P e r m i t s Y e a r l y P e r m i t R e v e n u e - 2 0 2 4 / 2 0 2 5 C o m p a r i s o n The dual-ring donut chart shows the number of permits issued and renewed, categorized by permit type for 2025. The inner ring represents the number of permits issued, and the outer ring represents the percentage of total revenue collected by the Building Division, for each of the same categories. Residential development typically produces the bulk of the City’s permit revenue, as was the case so far.

This chart compares permit revenue totals for the for the first two quarters of 2024 compared to the first two quarters of 2025.

BUSINESS LICENSE
1 1
1 1
This chart shows the number of commercial business licenses issued and renewed so far this fiscal year, categorized by license type as shown in Victorville’s Municipal Code.

Each color represents a different business license category. The inner ring represents new licenses issued, and the outer ring represents renewed licenses.

Business License AnalysisBusiness License Analysis
C o m m e r c i a l B u s i n e s s L i c e n s e s N e w & R e n e w e d P a g e X

Your City of Victorville licensing staff!
The City’s online permitting system.

BUSINESS LICENSE

BUSINESS LICENSE
Business License AnalysisBusiness License Analysis
H o m e O c c u p a t i o n B u s i n e s s L i c e n s e s N e w & R e n e w e d This chart shows the number of home occupation business licenses issued and renewed so far this fiscal year, categorized by license type as shown in Victorville’s Municipal Code. Each color represents a different business license category. The inner ring represents new licenses issued, and the outer ring represents renewed licenses.

Licensing Technician Business License issued by the City of Victorville!

BUSINESS LICENSE
Business License AnalysisBusiness License Analysis
O u t - o f - C i t y B u s i n e s s L i c e n s e s N e w & R e n e w e d This chart shows the number of out-of-city business licenses issued and renewed so far this fiscal year, categorized by license type as shown in Victorville’s Municipal Code. Each color represents a different business license category. The inner ring represents new licenses issued, and the outer ring represents renewed licenses.

R e n t a l B u s i n e s s L i c e n s e s N e w & R e n e w e d This chart shows the number of rental business licenses issued and renewed so far this fiscal year, categorized by license type as shown in Victorville’s Municipal Code.

Each color represents a different business license category. The inner ring represents new licenses issued, and the outer ring represents renewed licenses.

BUSINESS LICENSE
Business License Totals & RevenueBusiness License Totals & Revenue A l l B u s i n e s s L i c e n s e s N e w & R e n e w e d This chart shows revenue totals so far for this fiscal year. Each bar shows the corresponding revenue amounts of issued/renewed licenses this fiscal year.

This chart presents the total number of business licenses issued and renewed so far this fiscal year. Each bar shows the corresponding number, including both new and renewed licenses this fiscal year.

Y e a r l y B u s i n e s s L i c e n s e R e v e n u e - F i v e Y e a r C o m p a r i s o n

FIRE PREVENTION
F i r e P r e v e n t i o n
A c t i v i t y A n a l y s i s
F i r e P r e v e n t i o n
A c t i v i t y A n a l y s i s
Plan Reviews Completed
The following chart illustrates the type and number of plan reviews completed by the Fire Prevention Division this fiscal year, for New Construction Projects and Tenant Improvements to ensure fire code compliance.

Fire Prevention Inspector on the job!
Inspection tags reviewed to confirmrequired inspections have beencompleted.

FIRE PREVENTION
Fire Prevention Activity AnalysisFire Prevention Activity Analysis Fire Prevention Permits Issued
The following chart illustrates the type and number of permits the Fire Prevention Division issued this fiscal year for various construction types and operations.

F i r e P r e v e n t i o n Y e a r l y I n s p e c t i o n s The following chart illustrates the type and number of fire inspections completed by the Fire Prevention Division this fiscal year.

Total Inspections = 2,390
T o t a l P e r m i t s I s s u e d = 4 4

BUILDINGDEPARTMENTHISTORICAL DATA

BUILDING
This chart shows single family residential permit history for the past 20 years broken down by year. The chart specifically covers issued permits. These permits are down significantly since the 2005/2006 boom, and have cooled again recently due to economic factors, such as interest rates.

Issued Single Family Residential Permits
This section is included to provide historical context and to illustrate both current and past Building Department trends.

BUILDING
Building DepartmentHistorical DataBuilding DepartmentHistorical Data Miscellaneous Finalized Permits
This chart shows miscellaneous permits issued for the last 5 years broken down by year.

Miscellaneous permits are permits for items that are not associated with new construction, such as patios, pools, block walls, HVAC, and water heater changeouts.

The bulk of these permits are for residential solar installations, which have tapered off since the regulations for net-metering changed in 2022.

I s s u e d C o m m e r c i a l & I n d u s t r i a l P e r m i t s This chart shows commercial and industrial new construction permits issued for the last 20 years, broken down by year. These numbers trend very similarly to residential in the previous chart.

BUILDING

Building DepartmentHistorical DataBuilding DepartmentHistorical Data T h i s c h a r t s h o w s t h e y e a r l y d a t a f o r t h e p a s t e i g h t y e a r s f o r t w o c a t e g o r i e s :

I n s p e c t i o n s a n d S t o p s . S o m e i n d i v i d u a l s i t e v i s i t s ( “ s t o p s ” ) i n v o l v e m u l t i p l e i n s p e c t i o n s , w h i c h i s w h y t h e n u m b e r o f i n s p e c t i o n s i s t y p i c a l l y h i g h e r . T h e d e c l i n e i n r e c e n t y e a r s i s d i r e c t l y t i e d t o d r o p p i n g s i n g l e f a m i l y h o m e a n d r e s i d e n t i a l s o l a r p e r m i t n u m b e r s .

Y e a r l y I n s p e c t i o n s & S t o p s
Y e a r l y P e r m i t R e v e n u e - F i v e Y e a r C o m p a r i s o n T h i s c h a r t c o m p a r e s p e r m i t r e v e n u e t o t a l s f o r t h e p a s t 5 y e a r s . A s w i t h p e r m i t n u m b e r s , t h i s h a s b e e n s l o w l y d e c l i n i n g i n r e c e n t y e a r s .

BUSINESS LICENSE
Business License Historical DataBusiness License Historical Data A l l B u s i n e s s L i c e n s e s N e w & R e n e w e d This chart shows revenue totals this year, as well as for the last five years. Each bar shows the corresponding revenue amounts of issued/renewed licenses in the most recent year, and a comparison to the previous 4 years.

This chart presents the total number of business licenses issued and renewed for the last 5 years. Each bar shows the corresponding yearly number, including both new and renewed licenses in the most recent year, and a comparison to the previous 4 years.

Y e a r l y B u s i n e s s L i c e n s e R e v e n u e - F i v e Y e a r C o m p a r i s o n

N e w = b a r s i n f r o n t
R e n e w e d = b a r s i n b a c k
N e w = b o l d b a r s o n t o p
R e n e w e d = b a r s b e l o w i n
t h e c o r r e s p o n d i n g c o l o r
Item Number: 10
City Council / Board of Directors
Consent Calendar
Meeting of: February 17, 2026
Submitted By:

Jerry Davenport, Police Captain

Subject:

Automatic License Plate Reader Annual Report
Recommendation:

That the Honorable City Council review and file the attached Annual License Plate Reader Annual Report.

Fiscal Impact:

There is no fiscal impact associated with this action.

Strategic Plan Goal:

This item aligns with Strategic Plan Goal B, Public Safety. The City focuses on implementing public safety strategies to support a thriving and growing community. In accordance with one strategy outlined within the plan, invest in technology that will assist efficient and effective police operations, the City Council has previously approved Phases 1-6 of the Automatic License Plate Reader (ALPR) program.

Background:

Since the City Council approved the ALPR program in 2019, Phases 1-6 have been completed and 123 fixed cameras have been installed throughout the City. In addition to the fixed cameras installed as a part of Phases 1-6, three mobile units have been installed on police vehicles as well as a City-owned street sweeper, creating a perimeter internal to and around the City to better locate vehicles sought by our Police Department.

Discussion:

The ALPR program allows law enforcement to proactively prevent crime and improve the security and safety of the community in the most cost-effective fashion. ALPR technology assists with proactive, tactical, and investigative policing, thereby reducing ongoing costs for additional officers with a one-time capital expense. 4 5
6 5
The ALPR cameras continue to provide critical investigative information to solve murders, burglaries, and sex offender violations, among other crimes. The system immediately notifies our deputies with hits related to wanted vehicles, kidnapping suspects, violent offenders, in-progress robberies, shootings, and critical missing persons. This program allows our deputies to proactively prevent crime and improve the security and safety of our citizens.

In August of 2025, City staff was notified that 29 of the 123 installed ALPR cameras were not operational. The cameras experienced issues such as reaching their end of life, power outages, downed traffic poles, and firmware problems. Staff has coordinated with the vendor to resolve most of these issues; however, certain cameras need to be replaced.

Therefore, staff is working with the vendor to identify the required replacement cameras and expect to have the ALPR fully operational in the coming months.

Attachment A provides the City Council with the City’s ALPR camera activity from January 2025 through December 2025. During this 12-month period, the cameras captured 472 hits and 94 arrests for various crimes including: auto theft, robbery, murder, assault/domestic violence, and fraud. This is in comparison to 567 hits and 116 arrests in 2024. In addition, narcotics and firearms were recovered. The attachment also highlights case summaries where the ALPR program proved invaluable in protecting our community’s citizens.

Therefore, staff recommends that the Honorable City Council review and file the attached Annual License Plate Reader Annual Report for 2025.

Staff remains available for any questions or comments you might have.

Prepared By:

Darcy Mahoney-Henson, Administrative Analyst
Attachments: A. Victorville ALPR Camera Data
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VICTORVILLE ALPR

ANNUAL REPORT
JANUARY 2025 - DECEMBER 2025

Total Hits
Charges from ALPR Hits (94)
Total Arrests
Poss. Stolen Vehicle/Cold Plate
Grand Theft
Drugs EvadingWeapons Murder WarrantProbation
Assault/Do
m. Violen
ce
Theft
H i t&R u n
Resisting Arrest
Parole Fraud
Obstruction
0 5
10 15
20 7
15 4
1 14
4 2 1
3 1
4 11
Other Charges from ALPR Arrests (58)
Q1 Jan - March
Q2 Apr - Jun
Q3 Jul - Sept
Q4 Oct - Dec
Victorville ALPR Cameras
472

ALPR CALENDAR YEAR END TOTALS
(JANUARY - DECEMBER 2025)
94 Carjacking
Embezzled Vehicle
Evading
Armed/Dangerous/Weapon
Assault/Dom. Violence
Murder
Robbery/Burglary
92 HITS
15 ARRESTS
143 HITS
18 ARRESTS
118 HITS
27 ARRESTS
119 HITS
34 ARRESTS
72 4
4 1
2 1
4 3
3 72
2 3
3 44
11 4
4 1
Drugs
Evading
Weapons
Murder
Warrant
Probation
Assault/Dom.Violence
Theft
Hit&Run
ResistingArrest
Parole
Fraud
Obstruction
0 5
10 15
20 7
15 44
1 1144
44 2 1
3 1
44 1 1
Other Charges from ALPR Arrests (58)
Case Summary Examples
Summary 1 - Deputies conducted an area check for a vehicle wanted for carjacking. The driver yielded and all occupants were detained. The victim identified the driver as being involved in the carjacking. The driver was arrested and the vehicle was released to the victim.

Summary 2 - Dispatch received an ALPR alert for a vehicle that was involved in an earlier shooting. Deputies located the vehicle and detained the driver without incident. The driver was found in possession of a handgun that matched ballistics at the scene of the shooting. Detectives issued multiple warrants and were able to recover evidence of the shooting at the driver’s residence, including additional suspects.

Summary 3 - Dispatch received an ALPR hit for a vehicle wanted out of San Bernardino for a kidnapping investigation. The vehicle was located and deputies set up a perimeter and stopped the vehicle as soon as it moved. Three vehicle occupants were detained pending investigation and deputies coordinated with San Bernardino Police Department to tow the vehicle.

Summary 4 - Dispatch received an ALPR hit for a stolen vehicle. Deputies located the vehicle and determined it was suspected in being used in multiple thefts from ULTA Beauty in Hesperia and Apple Valley. The driver was on parole for grand theft. The passenger admitted to having cocaine in her purse. Deputies located the drugs and numerous clothing items with tags attached. The driver was arrested and the passenger was cited.

Summary 5 - Dispatch received an ALPR hit for a vehicle associated with a suspect who had run from CHP the previous day. Deputies located the vehicle driving away from a residence and the vehicle failed to yield. After a brief pursuit, the driver lost control of the vehicle and struck a tree. The driver bailed on foot, but was quickly apprehended and taken to jail.

Summary 6 - During a domestic violence incident, the suspect pointed a handgun at the victim and then left the location. An ALPR hit was entered into the system and the vehicle was located several hours later. The suspect was arrested without incident, and the frame of the handgun was located inside the vehicle. The rest of the handgun was not located. Suspect was arrested and taken to jail.

Summary 7 - A stolen vehicle was located via multiple ALPR hits throughout the day.

Deputies located the vehicle and attempted a traffic stop. The driver failed to yield and a pursuit ensued. The suspect drove through the desert and fled on foot when the vehicle became disabled. Deputies pursued and detained them without incident. Suspect was arrested and taken to jail.
(JANUARY - DECEMBER 2025)
Item Number: 11
City Council / Board of Directors
Written Communications
Meeting of: February 17, 2026
Submitted By:

James Murawski, Airport Director

Subject:

Standard Lease Agreement for Buildings 867, 867A and Cut-Up Pad Space by and between the Southern California Logistics Airport Authority and Aircraft Recycling Corporation
Recommendation:

That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve entering into a Standard Lease Agreement for Buildings 867, 867A and Cut-Up Pad Space (“Agreement”), by and between the SCLAA and Aircraft Recycling Corporation; and
(2) Authorize the Executive Director to execute said Agreement; and (3) Adopt Resolution No. SCLAA 26-002 amending the 2025/2026 budget increasing revenue in Airport account 4501174A-45200 by $471.48 and Airport account 4501185A-45220 by $10,053.40.

Fiscal Impact:

The Agreement presented herein will generate approximately $2,381,008.76 in gross lease revenue over the initial term (March 01, 2026 – February 29, 2036). The table below outlines the fiscal impact of the initial 4 years of the Agreement.

FY 2025-26
March 26 – June 26
FY 2026-27
July 26 – June 27
FY 2027-28
July 27 – June 28
FY 2028-29
July 28 – June 29
$69,232.20 $209,773.57 $216,066.77 $222,548.78
The revenue associated with this Agreement increases the budgeted revenue established in Airport account 4501174A-45200 by $471.48 and 4501185A-45220 by $10,053.40 for fiscal year 2025-2026 and thereby requires an additional revenue appropriation as displayed in the following table.
4 2
5 4
Current Budget Fiscal Year 2025-2026
Building 867 & 867A Revenue 4501174A-45200 $142,298.00
Ground Lease Revenue 4501185A-45220 $31,523.00
Proposed Budget Fiscal Year 2025-2026
Building 867 & 867A Revenue 4501174A-45200 $142,796.48
Ground Lease Revenue 4501185A-45220 $41,576.40
Resolution No. SCLAA 26-002
Building 867 & 867A Revenue 4501174A-45200 $471.48
Ground Lease Revenue 4501185A-45220 $10,053.40
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 through disciplined long-term planning, cost control, increased revenues, and cost recovery.

Background:

Aircraft Recycling Corporation (“ARC”) has been a tenant at the Southern California Logistics Airport (“SCLA”) since April 2006. Their business operations entail two related activities. The first involves dismantling, inventorying, and selling all valuable parts and assemblies from the aircraft it purchases as well as dismantling services for other aircraft owners. The other business component pertains to an aircraft recycling operation that is performed on the Cut-Up Pad Space. This work consists of removing all remaining non- metal aircraft parts before cutting the aircraft into small pieces that are recycled into new aluminum products. ARC frequently supports military operations by facilitating training exercises through the use of its aircraft and equipment which brings additional operations to the SCLA. They also provide specialized equipment to assist other tenants at the SCLA.

Discussion:

The proposed Agreement for Buildings 867, 867A, and the Cut-Up Pad Space entails an initial term of ten-years with a commencement date of March 1, 2026. The Agreement also contemplates one additional five-year, option term. The Leased Premises consist of Buildings 867, which is comprised of approximately 8,576 square feet of hangar and storage space, 867A which is comprised of approximately 2,880 square feet of office space and Cut-Up Pad Space which is comprised of approximately 345,000 square feet of ground space. ARC has agreed to pay $17,308.05 per month with an annual 3% inflator. This amounts to approximately $.94 per square foot for Building 867, approximately $1.42 per square foot for Building 867A, and $.015 per square foot of ground space for the Cut-Up Pad Space, which are comparable with similar SCLA buildings and ground lease space.
4 2
5 4
Because the Standard Lease Agreement will maintain local employment, ARC currently has 12 employees, and produce a steady revenue stream, staff recommends that the Southern California Logistics Airport Authority Board of Directors: (1) approve the Standard Lease Agreement with Aircraft Recycling Corporation for Buildings 867, 867A and the Cut-Up Pad Space and (2) authorize the Executive Director to execute said agreement and (3) adopt Resolution No. SCLAA 26-002 increasing revenues in account 4501174A-45200 by $471.48 and 4501185A-45220 by $10,053.40. Such approval is being requested, subject to any minor, non-substantive modifications to the Lease 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.

Prepared By:

Jacob Kern, Airport Leasing Technician
Attachments: A. General Site Map
B. Standard Lease Agreement for Buildings 867, 867A and Cut-Up Pad Space
C. Resolution No. SCLAA 26-002

ATTACHMENT A

GENERAL SITE MAP
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ATTACHMENT B

STANDARD
LEASE

AGREEMENT FOR
BUILDINGS 867,
867A AND CUT-UP

PAD SPACE
SCLAA Standard Lease Page 1 ARC Buildings 867, 867A & Cut-Up Pad Space SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITYSTANDARD LEASE AGREEMENT BUILDINGS 867, 867A AND CUT-UP PAD SPACE This Lease Agreement (the “Lease”), dated this _____ day of ______________, 2026, for reference purposes only, is made by and between SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”), a California joint powers authority, (hereinafter referred to as “Lessor”) and AIRCRAFT RECYCLING CORPORATION(“ARC”), a California Corporation, (hereinafter referred to as “Lessee”). Lessor and Lessee are sometimes referred to hereinafter individually as a “Party” and collectively as the “Parties.”RECITALSThese Recitals are included to assist in interpreting this Lease 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 Lease.A. The United States Air Force (“Air Force”) and the Victor Valley EconomicDevelopment Authority (“the Authority”) have previously entered into certain Department of the Air Force Leases (hereinafter referred to as 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”). B. The Authority has delegated its decision-making authority with respect tothe SCLA to the Lessor, which now has the authority to enter into transactions on behalf of the Authority. C. The Air Force (“Grantor”) and the SCLAA (“Grantee”) have entered intocertain Air Force Quitclaim Deed(s) (“Quitclaim 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. Lessee seeks to lease from the Lessor a portion of the real property subjectto the Quitclaim Deed(s) (hereinafter defined as the “Leased Premises” and described more fully below) under the terms and conditions set forth in this Lease. E. Although the Leased Premises are subject to and governed by theCovenants, Conditions and Restrictions of the Quitclaim Deed(s), certain portions of the SCLA (some of which may include appurtenances, access/use rights, privileges and/or easements associated with the Leased Premises) are subject to the provisions and conditions of the Air Force Leases, and Lessee shall be subject to and comply with any and all provisions and conditions of such Air Force Leases as applicable.

SCLAA Standard Lease Page 2 ARC Buildings 867, 867A & Cut-Up Pad Space F. The Parties have previously entered into a certain Sublease Agreement dated April 5, 2006, (the “Sublease”) pertaining to the sublease of ground space (the “Cut-Up Pad”) at the SCLA. The Sublease had a term of sixty (60) months and contained one (1) additional five (5) year term which was exercised and expired on February 28, 2016. Subsequently, the Parties entered into a certain Lease Agreement dated February 16, 2016, (the “First Agreement Renewal”). The First Agreement Renewal had a term of five (5) years and contained one (1) additional five (5) year Option Term which was exercised and will expire on February 28, 2026. G. The Parties have previously entered into a certain Lease Agreement dated March 1, 2019, (the “Buildings 867 and 867A Lease Agreement”) pertaining to the Lease of Buildings 867 and 867A at the SCLA. The Lease had a term of two (2) years and contained one (1) additional five (5) year Option Term that was exercised and will expire on February 28, 2026. Lessee desires to combine the Buildings 867 and 867A, and the Cut-Up Pad Space agreements into one (1) Lease Agreement. TERMS AND CONDITIONS 1. Leased Premises. Subject to the terms and conditions herein contained, Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor the Leased Premises described as follows: (a) A portion of that certain real property designated as Building 867,located on the SCLA grounds at 18191 Readiness Street, Victorville, CA 92394, comprised approximately of Eight Thousand Five Hundred Seventy-Six (8,576) square feet of hangar and storage space, together with the improvements thereon, as depicted on Exhibit Aattached hereto and incorporated herein by this reference; and (b) A portion of that certain real property designated as Building 867A, located on the SCLA grounds at 18191 Readiness Street, Victorville, CA 92394, comprised of approximately of Two Thousand Eight Hundred Eighty (2,880) square feet of office space, together with the improvements thereon, as depicted on Exhibit Aattached hereto and incorporated herein by this reference; and (c) Lessor shall make available to Lessee, at no additional cost, the Right of Use space, on a non-exclusive basis of approximately Fifty-Nine Thousand Five Hundred Eighteen (59,518) square feet of yard space located immediately adjacent to Building 867 and 867A as depicted on Exhibit A; and (d) A portion of that certain real property designated as the Cut-Up Pad Space located on the SCLA grounds at 13115 Perimeter Road, Victorville, CA 92394, comprised of approximately of Three Hundred Forty-Five Thousand (345,000) square feetof ground space, together with the improvements thereon, as depicted on Exhibit Aattached hereto and incorporated herein by this reference; and SCLAA Standard Lease Page 3 ARC Buildings 867, 867A & Cut-Up Pad Space (e) all appurtenances, rights, privileges, and easements in any wayapplicable thereto.2. Term. The initial term of this Lease shall be for a period of ten (10) years,(the “Initial Term”) commencing on March 1, 2026, (the “Lease Commencement Date”) and expiring on February 29, 2036, (the “Expiration Date”) unless sooner terminated or extended as hereinafter provided. 3. Option to Extend Term. Upon expiration of the Initial Term, Lessee shallhave the option to renew this Lease for one (1) additional five (5) year term (the “Option Term”), provided that: (1) Lessee is in good standing and otherwise in full compliance with all of the terms and conditions of this Lease; (2) Lessee provides Lessor written notice of its desire to renew no later than one hundred eighty (180) days prior to the expiration of the Initial Term; and (3) Lessor confirms in writing Lessee’s Option Term. Upon confirmation of such exercise by Lessor, all references to the Expiration Date shall mean February 28, 2041. All further references to the Term of this Lease shall mean and include the Initial Term and any confirmed Option Term. 4. Termination. This Lease shall only terminate prior to the Expiration Datefor such reasons as are specifically set forth in the provisions of this Lease. 5. Right to Terminate for Development. With respect to any building or facilitycomprising the Leased Premises (including any additional access or rights of use specified in this Lease) which Lessee occupies pursuant to this Lease, after Lessee’s execution of this Lease, Lessor shall have the right, upon giving Lessee ninety (90) days’ notice in writing, to terminate this Lease. Such right shall only be exercised in good faith to the extent Lessor requires the current space for the development of the SCLA.6. Rent.(a) Monthly Base Rent. During the first year of the Initial Term, Lesseeshall pay to Lessor as rent for the Leased Premises the amount of Seventeen Thousand Three Hundred Eight Dollars and Five Cents ($17,308.05) per month (the “Monthly Base Rent”). Commencing on March 1, 2027, the Monthly Base Rent shall be increased by three percent (3%), and on each annual anniversary of the Lease 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 hangar Building 867 rent in the amount of Eight Thousand Thirty-Nine Dollars and Twenty Cents ($8,039.20), office Building 867A rent in the amount of Four Thousand Ninety-Three Dollars and Eighty-Five Cents ($4,093.85), and Cut-Up Pad Space rent in the amount of Five Thousand One Hundred Seventy-Five Dollars ($5,175).

SCLAA Standard Lease Page 4 ARC Buildings 867, 867A & Cut-Up Pad Space (b) Payment. Monthly Base Rent shall be payable in advance prior tothe first (1st) day of each calendar month and without demand to: Southern California Logistics Airport AuthorityAttention: Airport Director 18374 Phantom West Victorville, California 92394 or at such other place as Lessor may designate in writing from time to time. Lessee shall also pay to Lessor within thirty (30) days of presentation of an invoice, such other chargesas 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 B, attached hereto and incorporated herein by this reference, as such may be amended from time to time by Lessor. 7. Security Deposit. Lessee shall deposit with the Lessor upon executionhereof the sum of Fifty-One Thousand Nine Hundred Twenty-Four Dollars and Fifteen Cents ($51,924.15), which includes Thirty-Two Thousand Three Hundred Eighty Dollars($32,380) already on file with Lessor, as security for Lessee’s faithful performance of Lessee’s obligations hereunder (the “Security Deposit”). If Lessee fails to pay rent or other charges due hereunder, fails to pay any utility or service provider, or otherwise defaults with respect to any provision of this Lease, the Lessor 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 Lessor may become obligated by reason of Lessee’s default, or to compensate the Lessor for any loss or damage which the Lessor may suffer thereby. At all times during the Term hereof, Lessee must maintain at a minimum the amount of Security deposit specified in this Section. 8. Brokerage Commission. Lessor and Lessee represent and affirm to eachother 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 Lease. 9. Late Charge. Lessee hereby acknowledges that late payment by Lesseeto Lessor of any installment of rent, or any other sums due hereunder will cause Lessorto incur costs not contemplated by the Lease, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any installment of rent, or any other sum due from Lessee is not received by the Lessor within ten (10) days after such amount is due, whether or not any notice of default or other notice has been given, Lessee shall pay to the Lessor 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 Lessor will incur by reason of late payment by Lessee, and no more than one (1) Late Charge shall be assessed per month. Notwithstanding the foregoing, in the event the Lessee elects to make annual payments in advance, then no Late Charge shall apply.

SCLAA Standard Lease Page 5 ARC Buildings 867, 867A & Cut-Up Pad Space

10. Limited Right to Possession of the Leased Premises. Lessor shall deliver possession of the Leased Premises to Lessee on or before the Lease Commencement Date, free and clear of all tenants, occupants, and right of any third parties except as hereafter provided in this Section 10. Lessee agrees that its possession of the Leased Premises shall be subject to any outstanding easements and rights-of-way not within the control of the Lessor and further to the right of entry by the Air Force and such other government entities as provided for under the Quitclaim Deed(s). The Lessor shall use best efforts to ensure the quiet use and enjoyment of the Leased Premises by Lessee. However, unreasonable interference by Lessor or the Air Force with Lessee’s quiet enjoyment of the Leased Premises that results in material and demonstrable financial detriment to Lessee and Lessee being unable to continue its business functions in a commercially reasonable manner, shall be grounds for termination of the Lease by Lessee. 11. Holding Over. In the event Lessee, with the Lessor’s prior written consent, holds over and continues in possession of the Leased 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 Lease 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 Monthly Base Rent.If Lessee, without the Lessor’s prior written consent, holds over or continues in possession of the Leased Premises, or any part thereof, after the Expiration Date of this Lease, such occupancy shall be deemed a tenancy at sufferance, permitting the Lessor to immediately commence eviction proceedings without notice to Lessee. 12. Right to Relocate. With respect to any building which Lessee occupies pursuant to this Lease, after Lessee’s execution of this Lease, Lessor, to the extent required by the SCLAA, shall have the right, upon giving Lessee ninety (90) days’ notice in writing, to provide and furnish Lessee with space elsewhere in such other building within the boundaries of the SCLA of approximately the same size and with similar characteristics and amenities (such as access to streets and runways) as the Leased Premises, and to place Lessee in such new building space at the Lessor’s expense. Such right shall only be exercised in good faith to the extent the Lessor requires the Leased Premises for the development of the SCLA. In the event Lessor moves Lessee to said new space within any building then this Lease with respect to the original Leased Premises and each and all of the terms and covenants and conditions thereof shall thereupon remain in full force and effect and be deemed applicable to such new space. If the space in the building is smaller in size than the existing Leased Premises, then Lessor shall receive a reduction in rent equal to the difference between the size (using interior square footage) of the existing Leased Premises and the size of the new building. However, Lessee shall not be assessed additional rent if the new space is larger in size than the Lessee’s then existing Leased Premises, unless the new building exceeds the size of the existing Leased Premises by more than fifteen percent (15%). Lesseereserves the right to reject relocation to a specific location which does not comply with the terms of this provision.

SCLAA Standard Lease Page 6 ARC Buildings 867, 867A & Cut-Up Pad Space

13. Maintenance. Except for excessive repair and maintenance necessitated solely by Lessor’s activities, Lessee shall at all times during the Term hereof and until surrender and termination, keep and maintain the Leased Premises in good and substantial order and repair, and shall undertake all necessary repair and maintenance of the Leased Premises. Lessee shall be responsible for all operating expenses associated with maintaining the Leased Premises including, but not limited to: cleaning; light bulb replacement; procurement of supplies and maintenance 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 Leased Premises mechanical, electrical, lighting, plumbing, and life safety systems; water backflow inspection and maintenance, 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. Lessee agrees at Lessee’s sole cost and expense to procure and maintain throughout the Term of this Lease, or any extension thereof, 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. Lessee also agrees throughout the Term (or any extension thereof) to supply copies of all such contracts and any fire or life safety related certifications and/or inspection records to the Lessor in a timely manner. 14. Use and Condition of Leased Premises. The Leased Premises are to be used by Lessee for those purposes more particularly provided for on Exhibit C, attached hereto and incorporated herein by this reference, and for no other purpose unless expressly agreed to by the Lessor in writing. Lessee agrees to use the Leased Premises in such a manner as to not interfere with the Lessor’s rights in the Leased 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 Leased Premises, to keep the Leased Premises in a clean and sanitary condition, and to use all reasonable precaution to prevent damage, or injury to the Leased Premises. (a) Permits. Lessee, 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 Leased Premises. Such permits shall include, but not be limited to, any which may be required for the air handling and ventilation requirements for the Leased Premises. Furthermore, Lessee 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 Leased Premises and/or the Lessor, and such permits or certifications shall remain with the Leased Premises upon the expiration or termination of the Lease.

SCLAA Standard Lease Page 7 ARC Buildings 867, 867A & Cut-Up Pad Space (b) No Warranties. Except as provided herein, Lessee agrees that no promises, covenants, representations, statements, or warranties have been made on behalf of the Lessor to Lessee respecting the condition of the Leased Premises, or the manner of operating the Leased Premises or the maintaining of any repairs to the Leased Premises. (c) Acceptance of Leased Premises. Lessee acknowledges that it has satisfied itself by its own independent investigation that the Leased Premises are suitable for its intended use, and that neither the Lessor nor the Lessor’s agent or agents have made any representation or warranty as to the present or future suitability of the Leased Premises for the conduct of Lessee’s business. Lessee’s taking possession or use of the Leased Premises for any purpose shall constitute Lessee’s acceptance of the Leased Premises “as-is” in its existing condition, which condition shall be established as set forth on Exhibit C. (d) Notice of Presence of Asbestos and Lead-Based Paint. Lessee, its successors and assigns are warned that the Leased 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. Lessee, 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 Leased Premises, including any asbestos hazards or lead-based paint hazards or concerns. Lessee acknowledges that Lessee was given every opportunity to inspect the Leased Premises to assess the risk, if any, from asbestos containing material or lead-based paint materials. (e) No Liability Assumed by Lessor. The Lessor assumes no liability for damages for personal injury, illness, disability or death to Lessee or to Lessee’s successors, assigns, employees, invitees, or any other persons subject to Lessee’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 Leased Premises which is the subject of this Lease, whether Lessee, its successors or assigns has or have properly warned or failed to properly warn the individuals injured. Lessee, its successors and assigns, further agree that in its use and occupancy of the Leased Premises, it will comply with all federal, state and local laws relating to asbestos and lead-based paint. (f) Personal Property. Lessee shall, at the termination of this Lease, by lapse of time or otherwise, remove all of Lessee’s personal property, repair any damage to the Leased Premises resulting therefrom, and surrender the Leased Premises to the Lessor in as good a condition as when Lessee took possession, normal wear and tear excepted.

SCLAA Standard Lease Page 8 ARC Buildings 867, 867A & Cut-Up Pad Space

15. Waste or Nuisance. Lessee shall not commit or permit the commission by others of any waste on the Leased Premises. Lessee shall not maintain, commit, or permit the maintenance or commission of any nuisance on the Leased Premises nor shall Lessee use or permit the use of the Leased Premises for any unlawful purpose. 16. Taxes. Lessee 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 Lessee in the Leased Premises and the personal property, trade fixtures, appliances, and leased equipment placed by Lessee in, on, or about the Leased Premises during the Term (or any extension thereof) of this Lease. Lessee recognizes that the interests of Lessee in this Lease shall be subject to the imposition of a possessory interest tax by the San Bernardino County Assessor, and Lessee agrees to pay such tax amount as may be so levied with respect to the possessory interest of Lessee in the Leased Premises under this Lease. Lessee 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 Lessee shall pay taxes upon the assessed value of the entire property and not merely the assessed value of its leasehold interest. 17. Compliance With Covenants, Conditions and Restrictions of the Quitclaim Deed(s), Air Force Leases and Related Agreements. (a) Lessee acknowledges that copies of the applicable Quitclaim Deed(s) and the Air Force Leases are available and on file in the SCLA office. (b) Lessee expressly acknowledges that the Lessor has assumed certain duties and obligations to the Air Force (“Grantor”) under the Quitclaim Deed(s)affecting the use and occupancy of the Leased Premises. Lessee further agrees that as of the Lease Commencement Date, it shall observe and perform the duties and obligations of the Lessor (Grantee as the case may be in this Section 17) relating to the Leased Premises in favor of the Air Force which arise under the Quitclaim Deed(s). These duties and obligations as assumed by Lessee include, but are not limited to, the following which are presented below for purposes of reference and convenience:I. Reserving unto the Grantor all oil, gas, and other mineral resources of any kind or nature in the mineral estate of the Leased Premises, provided, however, that such reservation is without surface right of entry or extraction rights; and II. Reserving unto the Grantor right of access to the Leased Premises, extending such access to the United States Environmental Protection Agency (“EPA”) and the State of California (the “State”), and their respective officials, agents, employees, contractors, and subcontractors for the purposes of the Installation Restoration Program (“IRP”) of the Grantor or the Federal Facility Agreement (“FFA”).

SCLAA Standard Lease Page 9 ARC Buildings 867, 867A & Cut-Up Pad Space (c) Any use, occupancy or activity of Lessee on the Leased Premises which may result in either the receipt by the Lessor of a notice of violation or default or breach from the Air Force or the Federal Aviation Administration (“FAA”) under the Quitclaim Deed(s) or a notice of default, violation or breach from the Air Force or the FAAunder the Air Force Leases, shall be deemed to be a default of Lessee under this Lease. The response of the Lessor following receipt of any such notice of violation, default, or breach, shall not waive, stay or otherwise mitigate or remedy the default of Lessee to the Lessor under this Lease. Lessee shall have no right under this Lease to participate in any proceeding between the Air Force, the FAA and the Lessor for the resolution of an alleged default, breach or other dispute of the Parties arising under the Quitclaim Deed(s) and/or the Air Forces Leases, except to the extent the Lessee is alleged to have directly caused such violation, breach or default. (d) Lessee acknowledges that the Leased Premises may be subject to a future Declaration of Covenants, Conditions and Restrictions to be recorded in the official records of San Bernardino County, California, as amended (the “CC&Rs”). In addition to any other applicable assessments, this Lease may be subject to anyassessments levied pursuant to the CC&Rs and applicable to the Leased Premises, determined by the ratio that the rentable area of building on the Leased Premises bears to the total net rentable area of building or buildings which include the Leased Premises and for which a separate assessment is made pursuant to the CC&Rs. 18. Insurance. Lessee shall procure and maintain for the duration of the Lease insurance against claims for injuries to persons or damages to property which may arise from or in connection with Lessee’s operation and use of the Leased Premises. The cost of such insurance shall be borne by the Lessee. 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. INTENTIONALLY OMITTED (c) Commercial Vehicle Liability Insurance. ISO Form Number CA 00 01 covering any auto (Code 1), or if Lessee 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 Lessee has no employees, it may certify or warrant to the SCLAA Standard Lease Page 10 ARC Buildings 867, 867A & Cut-Up Pad Space Lessor 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) Lessee may use Umbrella or Excess Policies to provide the liability limits as required in this Lease. 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 Lessee’s primary and excess policies are exhausted. (f) If the Lessee maintains broader coverage and/or higher limits than the minimum limits shown above, the Lessor requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Lessor. (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 subsection (a) above shall bear an endorsement whereby it is provided that, the Southern California Logistics Airport Authority (“Lessor”), 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 Lessee’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. Lessee hereby grants to the Southern California Logistics Airport Authority (“Lessor”), 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 Lessee 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. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of SCLAA Standard Lease Page 11 ARC Buildings 867, 867A & Cut-Up Pad Space whether or not the Lessor has received a waiver of subrogation endorsement from the insurer. (iii) For any claims related to this Lease, the Lessee’s coverage shall be primary and noncontributory and at least as broad as ISO CG 20 01 04 13 withrespects to the Southern California Logistics Airport Authority (“Lessor”), 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. Any insurance or self-insurance maintained by the Southern California Logistics Airport Authority (“Lessor”), 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 Lessee’s insurance and shall not contribute with it, and Lessor's coverage shall be primary and noncontributory for any claims unrelated to this Lease. 19. Proof of Insurance Coverage. (a) Lessee 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 Lease and furnish to Lessor certificates of said insurance on or before the Lease Commencement Date. (b) Each insurance policy required in the Lease shall provide that coverage should not be canceled, except with written notice to the Lessor. (c) Lessee shall furnish the Lessor with original certificates of insurance and amendatory endorsements, or copies of applicable policy language effecting coverage required by this lease 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 Lessee’s obligation to provide them. (d) Self-insured. If Lessee is self-insured, it shall provide certificates or evidence to Lessor indicating that its insurance meets the levels and requirements as set forth herein above. 20. Personal Property at Risk of Lessee. All personal property which Lessee maintains at the Leased Premises shall be at the risk of Lessee only. Except for the grossly negligent, reckless, or unlawful intentional acts of the Lessor, its agents, employees, guests or invitees, the Lessor shall not be liable for any damage to any property of Lessee or for any damage to Lessee’s property in moving the same to or from the Leased Premises.

SCLAA Standard Lease Page 12 ARC Buildings 867, 867A & Cut-Up Pad Space

21. Utilities and Other Services. (a) Payment for Utility Charges. Lessee shall contract with and pay the applicable provider, whether the provider is the Lessor or another party, all charges for water, gas, electricity, sewer, waste disposal, or other utilities used or supplied upon or in connection with its use of the Leased Premises and shall indemnify, defend and hold harmless the Lessor against any liability on account thereof. Lessee shall obtain separate metering devices for utility services, as applicable. Lessee agrees to promptly reimburse the Lessor 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 Lessor. In addition to the amount of the utility bill that the Lessor may have paid, Lessee shall pay to Lessor a three percent (3%) administrative fee for any pass-through billing processed. In no event shall the Lessor be liable for any interruption or failure in the supply of any such utilities to the Leased Premises. (b) Consent to Energy Use Data Disclosure. By executing this Lease, Lessee hereby consents to disclosure of its energy usage data as required for Lessor to comply with California Public Resources Code section 25402.10 and the implementing regulations of the California Energy Commission (20 Cal. Code Regs., §§ 1680 through 1685). Strictly for the purposes of ensuring such compliance, including any required public disclosure of aggregated energy use, Lessee agrees to provide such energy usage data directly to Lessor and/or authorizes Lessor to obtain the required energy usage data directly from Lessee’s utility providers upon request without the need to execute any further authorizations or consent forms. Lessee’s consent and authorization is deemed given upon the execution of this Lease and shall continue to be in effect throughout the Term or any extension thereof. 22. Alterations, Improvements and Additions. (a) Lessee shall not make any alterations, improvements, or additions to the Leased Premises (collectively hereinafter the “Improvements”) without the prior written consent of the Lessor. The Lessor shall own all alterations, improvements, and additions that are affixed to the Leased Premises without compensation to Lessee, subject to subsection (b) below. Any personal property belonging to Lessee may be removed by Lessee at any time prior to the expiration of the Term of this Lease, or any extension thereof. (b) Once completed, Improvements authorized in writing by Lessorand/or any specific Tenant Improvements as may be provided for elsewhere in this Lease, shall not be removed by Lessee, unless so required by the Lessor in its sole discretion. At the end of the Term (or any extension thereof) of this Lease (or upon any earlier termination as may be provided for herein) Lessor shall have the option to either require Lessee to remove the Improvements or Tenant Improvements or elect to have such Improvements or Tenant Improvements become the property of Lessor. In the case of removal of equipment or fixtures, Lessee shall restore the area of the Leased Premises from which such removals are made to its original condition. Lessee shall require the SCLAA Standard Lease Page 13 ARC Buildings 867, 867A & Cut-Up Pad Space issuance of a Faithful Performance Bond and a Payment Bond for any work performed on the Leased Premises as set forth below:BOND REQUIREMENTS - A Faithful Performance Bond benefitting the Lessor 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 Lessor-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 Lessor, at its sole discretion, shall determine and may from time to time change the routes of surface ingress and egress to and from the Leased Premises, but agrees to locate such routes as conveniently as may be done for Lessee, having in mind the reasonable requirements of the Lessor 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 Lessee such that it results in material financial detriment to Lessee, then Lessee shall have the right to terminate this Lease. 24. Signs. Lessee shall not post, install, erect, or operate any sign, placard, poster, or other device on any part of the Leased Premises without the prior written permission of the Lessor. Such signs as may from time to time be permitted by the Lessor shall be made, posted, maintained and removed, and repair any damage caused by removal, at Lessee’s own cost and expense. Lessor shall have the right to remove unauthorized signs at Lessee’s expense. Lessee 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. Lessee shall not suffer or permit any liens to stand against the Leased Premises, or any part thereof, by reason of any work, labor, services, or materials done for, or supplied to Lessee or anyone holding the Leased Premises or any part thereof through or under Lessee. If any such lien shall at any time be filed against the Leased Premises, Lessee shall cause such lien to either be discharged of record sixty (60) days after the date that Lessee receives notice of the filing. Notwithstanding the above, in any bona fide dispute between Lessee and any third party concerning work done by the third party on or for the Leased Premises, and as a result of the dispute the third party files a lien against the Leased Premises, then, in lieu of obtaining the discharge of the lien within the sixty (60) day period, Lessee, 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 Lessee may file an appropriate bond or other device allowed by law to remove the lien. 26. Inspection by the Lessor. Lessee shall permit the Lessor, or its agents, representatives, or employees to enter the Leased Premises at mutually agreeable, reasonable times for the purpose of inspecting the Leased Premises to determine whether Lessee is complying with the terms of this Lease, for the purpose of doing other SCLAA Standard Lease Page 14 ARC Buildings 867, 867A & Cut-Up Pad Space lawful acts that may be necessary to protect the Lessor’s interest in the Leased Premises, or for the purpose of performing the Lessor’s duties under this Lease. Except in the event of an emergency, the Lessor shall contact Lessee, no less than twenty-four (24) hours prior to the time that Lessor desires to enter the Leased Premises to arrange a mutually agreeable time for the inspection. 27. Damage or Destruction of Leased Premises. Unless occasioned by the negligence or intentionally unlawful act of Lessee, if, during the term of this Lease or any renewal thereof, any portion of the Leased Premises shall be damaged by fire or other catastrophic event, so as to render such portion of the Leased Premises untenantable, the obligations under this Lease shall be immediately suspended while such portion of the Leased Premises remains untenantable. In the event of such damage, the Lessee shall give Lessor notice of such untenantable conditions and the Lessor shall elect in its sole discretion, whether to repair the Leased Premises or to cancel this Lease with respect thereto. It shall notify Lessee in writing of its election within thirty (30) days after such damage. In the event Lessor elects to repair the Leased Premises, the work or repair shall begin promptly and shall be carried on without unnecessary delay. In the event the Lessor elects not to repair the Leased Premises or portion thereof, the Lease shall be deemed canceled as of the date of damage with respect to the applicable portion. Such damage shall not extend the Lease Term. In the event that insurance proceeds are received by Lessee under the Property Insurance policy required to be carried by Lessee, and the Lease is terminated under this Section, the Lessor shall be entitled to the portion of such proceeds attributable to the fixtures, improvements, and other property which would remain with the Leased Premises, and Lessee shall be entitled to the portion of such proceeds attributed to the fixtures and property on the Leased Premises which would be removed by Lessee. Notwithstanding anything in this paragraph to the contrary, if the Leased Premises are rendered inadequate for Lessee to conduct its normal operations in or upon the Leased Premises (or such portion of the Leased Premises which is still tenantable), and it is reasonably anticipated that the damages shall not be repaired or otherwise resolved, within sixty (60) days the damage occurred, then Lessee, at its sole and exclusive option, may immediately terminate this Lease. Additionally, irrespective of whether Lessee remains in possession and occupancy of the Leased Premises or elects to terminate this Lease, rent payable under this Lease shall abate during the period that the Leased Premises are not totally useable by Lessee. The abatement shall be pro rata in proportion to the ratio that the amount of space which Lessee is actually able to occupy and from which it is able to conduct operations bears to the total Leased Premises. Lessee shall continue to make all other payments during this period, including taxes. 28. Assignment and Subletting. (a) Lessee shall not cause, or permit, by operation of law or otherwise, any assignment, encumbrance or transfer of this Lease or any estate or interest therein without the prior written consent of the Lessor.

SCLAA Standard Lease Page 15 ARC Buildings 867, 867A & Cut-Up Pad Space (b) Lessee shall not sublet the Leased Premises or any part thereof without the prior written consent of the Lessor. Such consent is subject to consideration by Lessor of the financial arrangement between Lessee and its proposed subtenant and is subject to Lessor’s financial participation in such arrangement. In addition, if Lessee’s proposed sublease or assignment arrangement will result in any increased rents or profits accruing to Lessee in excess of the Monthly Base Rent due to Lessor under this Lease, such consent shall further be conditioned upon Lessor receiving fifty percent (50%) of the excess amount thereof. An assignment or subletting shall not relieve Lessee of any of its obligations or liabilities under this Lease: both Lessee and any subsequent assignees of Lessee will be deemed to be bound hereunder. The Lessor’s consent to any such assignment, transfer or subletting shall not constitute consent to any further assignment, transfer, or subletting. (c) The provision of this Section 28 is not intended, nor should it be construed, to prevent Lessee from allowing such independent contractors onto the Leased Premises who are involved in Lessee’s normal operations on the Leased Premises (such as repair and maintenance personnel, janitorial personnel, and similar personnel). Additionally, this provision should not be construed to prevent subcontractors of Lessee from conducting their work on the Leased Premises in conjunction with the normal operations conducted by Lessee. To the extent that Lessor must grant its consent for Lessee’s subcontractors to enter onto the Leased Premises for the above-described purposes, consent is hereby deemed to be granted. 29. Indemnification. To the fullest extent permitted by law, Lessee hereby agrees to defend, indemnify and hold harmless Lessor, 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 (collectively hereinafter “Claims”), arising from any legal action or proceeding initiated by any individual or entity arising out of, or resulting from the performance of this Lease, except for any such Claims arising out of the sole negligence or willful misconduct of the Indemnified Parties. 30. The Lessor’s Environmental Representations.(a) Except as otherwise provided in Section 14 hereof, Lessee shall not be held responsible or deemed liable by the Lessor for any hazardous environmental condition on the Leased Premises, which existed prior to Lessee’s occupancy of the Leased Premises.

SCLAA Standard Lease Page 16 ARC Buildings 867, 867A & Cut-Up Pad Space (b) Except as provided in Section 14 hereof, the Lessor represents that to the best of its actual knowledge, the Leased 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 Lease. In the event that any hazardous environmental conditions exist on the Leased Premises as of the LeaseCommencement Date which result in a loss to Lessee and which were caused by Lessor, the United States Air Force or parties or entities within the control of, or under contract with Lessor, then the Lessor shall indemnify, defend and hold Lessee harmless from any costs, expenses, attorney fees or liabilities relating to any claims of such violations or conditions existing prior to Lessee’s occupancy of the Leased Premises. Lessor shall indemnify Lessee from hazardous environmental conditions or violations caused directly by the Lessor, its employees, agents, or licensees during or subsequent to the Term of this Lease. (c) Lessee shall be solely responsible for obtaining at its cost and expense; any environmental permits required for its operation under this Lease 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, petroleum products and motor fuels and similar substances and materials, including all substances 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, Lessee shall not cause or permit any Hazardous Materials to be used, generated, manufactured, produced, stored, brought upon, or released, on, under or about the Leased Premises, or transported to and from the Leased Premises, by Lessee, its agents, employees, contractors, or invitees in violation of any Environmental Laws. Lessee shall indemnify, defend and hold harmless the Lessor 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 Lessee, its officers, agents, employees, contractors or invitees or any of them. This obligation of Lessee shall survive the Expiration Date or earlier SCLAA Standard Lease Page 17 ARC Buildings 867, 867A & Cut-Up Pad Space termination of this Lease and shall apply whenever the Lessor incurs cost or liability arising from any use or activity of Lessee relating to Hazardous Materials during the Term or any extension thereof. (c) Without limiting the foregoing, if at any time during the Term of this Lease or any extension thereof, the presence of any Hazardous Materials on, under or about the Leased Premises caused by Lessee, its agents, employees, contractors, or invitees results in an unpermitted, unscheduled or unauthorized release or contamination of the Leased Premises by such Hazardous Materials, then Lessee shall at its sole cost and expense promptly take all actions necessary to return the Leased Premises to the condition existing prior to the unpermitted, unscheduled or unauthorized release of any such Hazardous Materials on the Leased Premises. (d) Lessee shall immediately notify the Lessor of the occurrence of any of the following events: (1) receipt by Lessee of any correspondence or communication from any governmental entity regarding the application of Environmental Laws to the Leased Premises or the investigation or enforcement by such governmental entity of any such Environmental Laws in connection with Lessee’s occupancy or use of the Leased Premises, and (2) unpermitted, unscheduled or unauthorized release of any Hazardous Materials on the Leased Premises which may occur at any time during the Term of the Lease or any extension thereof. (e) To the extent Lessee may conduct any use or activity on the Leased Premises which includes the use, handling, transport, or disposal of any Hazardous Material in quantities which exceed the threshold amounts authorized under California Health and Safety Code section 25507, Lessee 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 Leased 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 Lessee, its agents, employees, contractors, or invitees, fails to use and maintain the Leased Premises in accordance with the provisions of this Section 31, Lessor and/or the City of Victorville (the “City”) shall have the right, but not the obligation, to enter the Leased Premises and undertake remedial action as necessary in order to ensure that the Leased Premises are in compliance with all Environmental Laws. In such event, Lessee shall reimburse Lessor and/or the City for all reasonable sums incurred by it for such remediation activities for which Lessee is responsible pursuant to Sections 30 and 31. In such event Lessor 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.

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32. Surrender of Leased Premises. On the Expiration Date, Lessee shall surrender and deliver possession of the Leased Premises to the Lessor clean and free of debris and in as good condition as it was on the Lease Commencement Date, reasonable wear and tear excepted. 33. Compliance with Laws. Lessee shall comply with all applicable federal, state and local laws, regulations and standards that are or may become applicable to Lessee’s activities on the Leased Premises (hereinafter collectively, (“Laws”), includingwithout limitation the SCLA and FAA Rules and Regulations). Lessee agrees to abide by and conform to the SCLA Rules and Regulations, as such may be amended from time to time by Lessor, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. Lessor shall have the right, from time to time, to modify, amend and enforce said rules and regulations. In addition, Lessee agrees to abide by the Selected FAA Rules and Regulations attached hereto as Exhibit D 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 Lessor shall not be responsible to Lessee for the noncompliance with said rules by other tenants, their officers, agents, employees,suppliers, shippers, customers and/or invitees. The judgment of any court of competent jurisdiction, or the admission of Lessee in a proceeding brought against Lessee by any government entity, that Lessee has violated any such Laws (except where such admission may be the basis for settlement) shall be conclusive as between the Lessor and Lessee and shall constitute grounds for declaration of default, breach, forfeiture, and termination of this Lease by the Lessor. 34. Defaults. (a) In the event Lessee should default in the performance of any covenant or condition of this Lease (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 Lessee of such default in the performance of any covenants and conditions; then in such event, the Lessor shall have the right and option to terminate this Lease, to re-enter the Leased Premises, to evict Lessee and to remove Lessee’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 Lessee, 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 Lessee continues to make a diligent effort to cure the default. The occurrence of any of the following events shall also be a Default under this Lease; (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. § 101 or any successor statue thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Leased Premises or of Lessee’s interest in this Lease, where possession is not restored to Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure SCLAA Standard Lease Page 19 ARC Buildings 867, 867A & Cut-Up Pad Space of substantially all Lessee’s assets located at the Leased Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this paragraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. (b) Failure to pay Monthly Base Rent or any other amounts when due shall be deemed a default under this provision. Lessee 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 Lessor need not declare a default and have such default remain uncured prior to delivery of such statutory notice. 35. Remedies of the Lessor. In the event of any breach of the Lease by Lessee and the cure periods described in Section 34 hereof have expired, the Lessor may at any time thereafter, with or without notice or demand and without limiting the Lessor in the exercise of any other right or remedy which the Lessor may have by reason of such breach, do any of the following:(a) terminate Lessee’s right to possession of the Leased Premises by any lawful means, in which case this Lease shall terminate, and Lessee shall surrender possession of the Leased Premises to the Lessor. This may involve the Lessor filing an unlawful detainer action and receiving a court order for Lessee to vacate the premises. In any such event, the Lessor shall be entitled to recover from Lessee all damages incurred by the Lessor by reason of Lessee’s default, including, but not limited to the cost of repairing or restoring damages to the Leased Premises caused by Lessee, the cost or removal of Lessee’s improvements, fixtures and other contents of the Leased Premises, costs associated with past or future brokerage commissions and marketing expenses and the other costs payable by the Lessor in connection with the recovery of possession of the Leased Premises, including but not limited to reasonable attorneys’ fees and court costs, as well as: (1) 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 (2) 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 Lessee proves could be reasonably avoided; or (b) pursue any other remedy now or hereafter available to the Lessorunder the laws or judicial decisions of the State of California. 36. Default of Lessor. In the event Lessor should default in the performance of any covenant or condition of this Lease and such default is not cured or removed within thirty (30) days after service of written notice of default upon Lessor, then Lessee shall have the right and option to terminate this Lease. If Lessor, prior to the expiration of such thirty (30) day period for a default, diligently commences to cure such default, but is SCLAA Standard Lease Page 20 ARC Buildings 867, 867A & Cut-Up Pad Space unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Lessor continues to make a diligent effort to cure the default. In the event of an uncured default Lessee shall have all remedies available at law or in equity for any default or breach of this Lease by the Lessor. 37. Force Majeure-Unavoidable Delays. If the performance of any act required by this Lease to be performed by either Party is prevented or delayed by reason of an act of God; strike; lockout; labor troubles; 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 period of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment of rent by Lessee as required by this Lease 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 Lessor: 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 Lessee: Aircraft Recycling Corporation 18374 Phantom West, Suite 7 Victorville, CA 92394 Attn: Mike Barker 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.

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39. Miscellaneous.(a) One or more waivers of any provision of this Lease by the Lessorshall not be construed as a waiver of a subsequent breach of the same provision and the Lessor’s consent or approval shall not be deemed to waive or render unnecessary the Lessor’s consent or approval to or of any subsequent or similar act by Lessee. (b) If either Party to this Lease 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” within 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 Lessor has agreed to arbitrate any dispute which may arise hereunder. (c) This Lease can be modified, supplemented, amended, or rescinded only by a writing expressly referring to this Lease and signed by Lessor and Lessee. (d) If any provision of this Lease or any application thereof shall be invalid or unenforceable, the remainder of this Lease and any other application of such provision shall not be affected thereby. Unless otherwise expressly provided herein, any approval or consent of Lessor required hereunder shall not be unreasonably withheld or delayed. This Lease 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 the Lease are for purposes of reference only and shall not limit or define the meaning hereof. (e) This Lease contains the entire understanding and agreement of the Parties, supersedes all prior understandings and agreements, and cannot be changed orally. This Lease 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 Lease 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.

SCLAA Standard Lease Page 22 ARC Buildings 867, 867A & Cut-Up Pad Space (g) This Lease shall be of no force or effect unless executed by both Parties. Each person executing this Lease 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 Lease is executed.(h) This Lease 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 Lease Page 23 ARC Buildings 867, 867A & Cut-Up Pad Space IN WITNESS WHEREOF, the Parties have executed this Lease as of the dates set forth below.LESSEE AIRCRAFT RECYCLING CORPORATION ______________________________ ___________________ Mike Barker Date Chief Executive Officer LESSOR 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 Lease Page 24 ARC Buildings 867, 867A & Cut-Up Pad Space EXHIBIT A DESCRIPTION OF LEASED PREMISES Building 867 consisting of approximately Seven Thousand Six Hundred Thirty-Five(7,635) square feet of hangar space, and approximately Nine Hundred Forty-One (941) square feet of storage space for a total combined square footage of approximately Eight Thousand Five Hundred Seventy-Six (8,576) square feet, located on the SCLA at 18191 Readiness Street, Victorville, CA 92394, as depicted on Exhibit A-1 and Exhibit A-2; and Building 867A consisting of approximately Two Thousand Eight Hundred Eighty (2,880) square feet of office space, located on the SCLA at 18191 Readiness Street, Victorville, CA 92394, as depicted on Exhibit A-2 and Exhibit A-3. Vehicle parking area is depicted in yellow on Exhibit A-2; and Right of Use space adjacent to Buildings 867 and 867A, consisting of approximately Fifty-Nine Thousand Five Hundred Eighteen (59,518) square feet as depicted on Exhibit A-2, for such purposes related to its aircraft recycling operations, to be used in common with others at such times as coordinated through the Airport Operations Division; and Cut-Up Pad Space, consisting of approximately Three Hundred Forty-Five Thousand (345,000) square feet of ground space, located on the SCLA grounds at 13115 Perimeter Road, Victorville, CA 92394 as depicted on Exhibit A-4. These properties combined in total, with the improvements thereon, represent the Leased Premises. 13'13'Hangar Space sq ftEXHIBIT A-1Storage SpaceHangar: sq ftStorage:941 sq ftTotal:8576 sq ft OPEN

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EXHIBIT B SCLA RULES AND REGULATIONS
Southern California Logistics Airport Rules and Regulations AmendedApril 17, 2007

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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, tobecome 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.

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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 facilities (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, employees, representatives, and subtenants which occupies or controls all or part of Airport areas, buildings or other facilities which they lease from the Southern California Logistics Airport Authority.

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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.

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4.27 “Criminal History Records Check (CHRC)” means a fingerprint-basedcriminal 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;

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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 forward 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 rotor driven aircraft (rotorcraft) 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 Southern 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 avehicle 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 entrances 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 noise 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 permitted 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 SCLAA, 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 liability 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 use, 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 Airport 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 necessary 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 Aircraft 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 Airport Director shall have 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 accessdevice issued to him; or 2.Have possession of, or use for any purpose, a key, code oraccess device that was issued to him by a Person nothaving 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 across 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 with 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 assuch. 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 orproperties, 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 without 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, solvents, 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 Aircraft 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 material 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. Each 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 the 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 Identification 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 SecurityCoordinator, 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 activateadditional time for the door to be open.

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SECTION 32. RESPONSIBILITY 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 ability 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 berevoked 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 procedures 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 issuing 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 User 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 provides 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) business 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 DATE44.1 These changes contained in the Southern California Logistics Airport Rules and regulations shall be of full force and effective immediately upon filing of same with proof of publication with approval 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 Airport 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 there 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 eachaircraft 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 sitehaving 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 eachaircraft 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: Aircraft 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 storagefee 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

SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.37 of 38
Attachment B SCLASCHEDULE 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 User 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, appropriatemarkings 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 Lease Page 26 ARC Buildings 867, 867A & Cut-Up Pad Space EXHIBIT C USE AND CONDITION OF LEASED PREMISES Buildings 867 and 867A shall be used for the purposes of storage of aircraft parts, inventory, dismantling, deconstruction, parting-out, dissembling and administrative duties related to the Lessee’s aircraft dismantling and recycling of aircraft end-of-life company.The definitions below shall serve as a guide to govern Lessee’s actions and use of the Leased premises and Right of Use space at Buildings 867, 867A and Right of Use space. Definitions Dismantling– The orderly removal and salvaging of aircraft assemblies, parts, and components. Deconstruct – Same as disassemble, part-out, and dismantling.Part-out – Same as dismantling, disassemble, and deconstruct. Disassemble – Same as dismantling, part-out, and deconstruct. At NO TIME shall any DEMOLITION activities occur on the Leased Premises of Building 867, 867A and the Right of Use space. The definition below shall serve as a guide to govern Lessee’s actions as to what is NOT an allowed use of the Leased Premises at Buildings 867, 867A and Right of Use space. Demolish – To forcefully tear down, cut up, take apart or otherwise to reduce to smaller components for the purpose of final disposal or recycling. This action includes the removal of insulation and final removal of all residual fuel, oils, and other fluids. The Cut-Up Pad Space shall be for the purposes of yard space, aircraft storage, aircraft dismantling and recycling operations, to include disassembly of aircraft for salvage, parts removal, or other activities to facilitate the proper disposal of aircraft, and for no other purpose unless expressly agreed to by the Lessor in writing. The definitions below shall serve as a guide to govern Lessee’s actions and use of the Cut-Up Pad Space. Demolish – To forcefully tear down, cut up, take apart or otherwise to reduce to smaller components for the purpose of final disposal or recycling. This action includes the removal of insulation and final removal of all residual fuel, oils, and other fluids.

SCLAA Standard Lease Page 27 ARC Buildings 867, 867A & Cut-Up Pad Space As the Lessee is the currently Leases the Leased Premises the condition of the Leased Premises shall be established during the routine building inspection attended by both Lessor and Lessee. 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 Lease Page 28 ARC Buildings 867, 867A & Cut-Up Pad Space

EXHIBIT D SELECTED FAA RULES AND REGULATIONS

ATTACHMENT C

RESOLUTION NO. SCLAA
26-002

RESOLUTION NO. SCLAA 26-002

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHERN CALIFORNIA

LOGISTICS AIRPORT AUTHORITY AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2025-2026

WHEREAS, the Executive Director of the Southern California Logistics Airport Authority (“SCLAA”) did heretofore submit to the 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 2025-2026; 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, 2025, 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 Di rector or his designee will provide all necessary justification for the budget a mendment 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 2025-2026 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
4501174A-45200 Building 867 & 867A Revenue $471.48
4501185A-45220 Ground Lease Revenue $10,053.48

SECTION 2. That copies of such amended budget, certified by the Authority Secretary, shall be filed with the auditors of the Southern California Logistics Airport Authority and in the office of the Authority Secretary for public inspection and certified copies thereof shall be made available for use by SCLAA, City departments, offices and subsidiary districts of the City.

Item Number: 12
City Council / Board of Directors
Written Communications
Meeting of: February 17, 2026
Submitted By:

Fredy Bonilla, City Engineer

Subject:

Amendment No. 2 to the Consultant/Professional Services Provider Agreement with Woodard & Curran, Inc., for Industrial Wastewater Treatment Plant Expansion 2024 Design and Construction Support, Project CC24-099
Recommendation:

That the Honorable Victorville Water District Board of Directors approve Amendment No. 2 to the Consultant/Professional Services Provider Agreement with Woodard & Curran, Inc., increasing the total compensation not to exceed amount to $6,702,018, updating the Fee Schedule to include additional services, and extending the agreement term through December 31, 2027.

Fiscal Impact:

This amendment will increase the total compensation by $4,884,000. There are sufficient funds in the Fiscal Year 2025/2026 budget to cover the planned expenses. The budget account number, account description, and amount available are shown below:

Budget Account Number Account Description Amount Available 4160710-55060-74474 IWWTP Expansion $5,128,500
An additional appropriation is not required.

Strategic Plan Goal:

This item aligns with Goal E, Invest in Infrastructure, in the City of Victorville Strategic Plan 2023-2026. The IWWTP expansion is required to ensure proper treatment for sanitary sewer flows within the City’s Service Area B and allow for the production of high- quality treated water that meets California's Title 22 requirements for reclaimed water. 4 5
7 0
Background:

The City operates the IWWTP that processes both industrial and domestic sewer wastewater. This plant is located at the Southern California Logistics Airport (SCLA). The IWWTP was constructed in 2010 to meet the demands of growing commercial development.

The City has two sanitary sewer service areas: Service Area A for Victor Valley Wastewater Authority (VVWRA) and Service Area B for the IWWTP as shown in the attached Service Area Map (Attachment A). Approximately 40% of the City’s sewer influent flows to IWWTP, the remaining 60% of sewer influent flows are sent to VVWRA.

IWWTP currently treats approximately 2.0 million gallons per day (MGD) of wastewater.

IWWTP is unique in that it has a dedicated industrial influent line. The industrial flows are approximately 10% of the total influent flows, with the Keurig-Dr. Pepper bottling plant being the primary generator of the influent. IWWTP is currently operating at 90% capacity for sewer influent and the City’s projected growth in residential, commercial, and industrial developments will necessitate expansion of the existing plant capacity.

The City also owns, operates, and maintains an expanding reclaimed water system with reclaimed water provided from both IWWTP and VVWRA. The largest reclaimed water customer is the High Desert Power Plant (HDPP), which uses approximately 0.75 MGD to 1.2 MGD for their cooling towers (depending on the climate and demand).

On September 3, 2024, the Water District Board of Directors (Board) approved a Professional Services Provider Agreement with Woodard & Curran, Inc., for the preliminary (30%) design for the IWWTP Expansion. The project provides the expansion of the City’s IWWTP to account for future development in Service Area B. Please see Attachment C for the existing agreement with Woodard & Curran, Inc., including Amendment No. 1, which outlines these services in detail.

When the Request for Proposals (RFP) was originally issued, the City included a phased approach as follows:
Phase 1: Preliminary 30% design
Phase 2: Final 100% design
Phase 3: Bid services and Engineering services during construction The preliminary design kicked off in October 2024 and was completed last fall. We are now ready to begin Phase 2.

Discussion:

Throughout Phase 1, staff from Engineering, Water and the City Manager’s office met with the Woodard and Curran team to ensure timely review of plans, review of plant equipment, and a cohesive understanding of how to meet Service Area B’s sanitary flows for the future.
4 5
7 0
When planning began at the 30% design stage, staff expected the treatment plant’s capacity to increase from 2.5 MGD to 5.0 MGD by making the best use of the existing facilities. After completing the 30% design and technical analysis, the planned improvements are now expected to increase capacity to 6.0 MGD. According to Woodard & Curran, this increased capacity will be sufficient to support growth in Service Area B through approximately 2060. As development continues beyond that time, a future expansion to 8.0 MGD is expected to be needed once Service Area B is fully developed.

To prepare for this long-term growth, staff and Woodard & Curran have designed the plant so that additional capacity can be added in the future through new equipment, without expanding the plant’s footprint or constructing new buildings, which will significantly reduce future construction costs and minimize disruption to ongoing operations.

In the original proposal, Woodard & Curran estimated that the contract amount would be $3,013,000 for the 100% design. However, the conceptual design process resulted in additional structures that were not initially anticipated such as primary clarifiers, a new electrical building, a new operations building, and additional fire flow requirements. This work requires additional mechanical, civil, structural, and electrical engineering, resulting in an added cost of $1,871,000 and bringing the total Phase 2 amount to $4,884,000. The increased cost for Phase 2 will raise the total agreement amount to $6,702,018.

Staff is confident that the current 30% design plans align with the City’s goals and is therefore presenting Amendment No. 2 to the original contract to initiate Phase 2 and advance the design to 100% construction-ready documents. It’s estimated that Phase 2 will take approximately 18 months.

Therefore, staff recommends that the Board approve Amendment No. 2 (Attachment B) to the Consultant/Professional Services Provider Agreement with Woodard & Curran, Inc., increasing the total compensation by $4,884,000 for a revised not to exceed amount of $6,702,018, updating the Fee Schedule to include additional services, and extending the agreement term through December 31, 2027. This amendment will provide for the additional engineering services necessary to finalize the project plans, specifications, and estimates (PS&E) and acquire the necessary permits for the public bidding and construction phase.

Staff is available for any questions the Board may have.

Prepared By:

Fredy Bonilla, City Engineer
Melissa Krejckant, Public Works and Water Administrative Manager Attachments: A. Service Area Map
B. Amendment No. 2
C. Original Agreement & Amendment No. 1
A
ttachment A
Service Area Map
LEGEND
CJ) AREA "A"
AREA "B"
El CITY BOUNDARY
El TRUNKLINES
El COLLECTORS
CJ 'NOT BUILT"
AREA "A" & AREA "B"
cou,••-
N.T.S.
10/22109
Atta
chment B
Amendment No. 2
AMENDMENT NUMBER: TWO
TO

CONSULTANT/PROFESSIONAL SERVICES PROVIDER

AGREEMENT

BY AND BETWEEN

CITY OF VICTORVILLE
AND
WOODARD & CURRAN, INC.

FOR
IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT,
PROJECT CC24-099
TH
IS AMENDMENT (the “Amendment”) is made and entered into this ____ day of _______, 2026, by and between the City of Victorville, a municipal corporation, organized and existing in the County of San Bernardino under and by virtue of the laws of the State of California (hereinafter referred to as “City”), and Woodard & Curran, Inc., a corporation located in the state of Maine, hereinafter referred to as “Consultant”, City and Consultant are sometimes hereinafter referred to individually as a “Party” and collectively referred to as the “Parties”.

Recitals

1. WHEREAS, th e City has a Consultant/Professional Services Provider Agreement (hereinafter referred to as the “Original Agreement”) with the Consultant to provide IWWTP Expansion 2024 Design and Construction Support; and

2. WHEREAS, on or about September 4, 2025, Amendment One (1) was issued to the Original Agreement to exercise Option 1 of 4, additional one-y ear periods, amending, Section 6., Term of Agreement, to commence September 17, 2025 and expire September 16,
2026 and to add Prevailing Wage Provisions as a continuing required reference to all
Public Work associated with said ongoing maintenance services; and Section 3 ., Compensation total annual not to exceed sum of $1,818,018.00 remained unchanged; an
d

3. WHEREAS, it is the desire of the Parties to issue Amendment Two (2) to the Original Agreement
to amend Section 3., Compensation total annual not to exceed sum from $1,818,018.00 to $6,702,518.00; Section 4., Fee Schedule to include additional services as
set forth in the Consultant’s Proposal; and Section 6., Term of the Agreement amending the term to commence September 17, 2025, and expire December 31, 2027; and

4. NOW THEREFORE, in consideration of the covenants, conditions, and promises contained herein and for such other good and valuable consideration, receipt of which is hereby acknowledged, the Parties are willing to amend the Original Agreement as stated below.

Contract Amendment
Section 3. – COMPENSATION – is am ended as f ollows:
“The City shall pay to Consultant a sum not to exceed Six Million Seven Hundred Two Thousand Five Hundred Eighteen and 00/1 00 dollars ($6,702,518.00) for faithful performance of the services to be rendered under this Agreement, subject to the Fee Schedule provisions of Section 4, below.”
S
ection 4. – FEE SCHEDULE – is amended as follows:
“The City shall pay Consultant for those additional services set forth in Consultant’s P
roposal dated February 6, 2026, attached hereto as Exhibit A and hereby incorporated as part of this agreement by this reference.”
Ex
cept as amended herein, t he terms and conditions of the O riginal Agreement and all previous amendments remain in full force and effect.
(SI

GNATURES ON NEXT PAGE)
IN WITNESS WHEREOF, the parties hereto have caused the Amendment to the Original Agreement to be entered as of the dates written below.

PAR

TY OF THE FIRST PART PARTY OF THE SECOND PART
T
HE CITY OF VICTORVILLE WOODARD & CURRAN, INC.

B
y:_______________________________ By:________________________________ Elizabeth Becerra, Scott Godman,
Mayor Vice President
D
ated:____________________________ Dated:______________________________ ATTE
ST
B
y:_______________________________
Jennifer Thompson,
City Clerk
D
ated:_____________________________
AP

PROVED AS TO STANDARD FORM
B
y:________________________________
Andre de Bortnowsky,
City Attorney
D
ated:______________________________
B
y: ________________________________
Sandra Bostick,
Risk Manager
D
ated: ______________________________
515 S. Flower Street | 18th Floor
Los Angeles, California 90071
www.woodardcurran.com
T 800.426.4262
Via Electronic Mail
February 6, 2026
Fredy Bonilla
City Engineer
City of Victorville, CA
14343 Civic Dr
Victorville, CA 92392
RE: Proposal for Phase 2 – IWWTP Capacity Expansion Design Dear Mr. Bonilla:

Woodard & Curran was selected by the City of Victorville (City) in 2024 as the design engineer for the Integrated Wastewater Treatment Plant (IWWTP) Capacity Expansion Project, with the project intended to be completed in 3 separate phases.
• Phase 1: Conceptual and 30% Design
• Phase 2: 60% -100% Design
• Phase 3: Bid Services and Engineering Services During Construction Woodard & Curran’s proposal submitted in 2024 included a scope of services, budget, and schedule for all three phases of the project . However, the design concept for expansion of the IWWTP was refined during Phase 1 and identifies additional treatment unit processes that were not anticipated when our previous proposal was developed. The new unit processes necessitate revisions to the scope of services and budget that was initially submitted to the City in 2024.

Tasks and features that are added to the Phase 2 scope include the following:
• New primary clarifiers, electrical building, and administrative building • Facilitate procurement of long-lead items to mitigate construction delays • Use of recycled water for fire flow
• Additional environmental surveys
Multiple new scope items were identified during Phase 1 in addition to the additional treatment processes. Through workshops with the City and the operations team, it was determined that plant staff need additional office space which will be achieved with an Operations Annex Building. Additionally, it was determined that the fire protection loop at the site is dry (i.e., out- of-service). While the IWWTP may be exempt from needing to meet fire flows and no buildings on site require sprinkl ers, the City would like to consider using treated effluent for fire protection instead of extending a large potable water supply pipeline to the plant for fire protection. Finally, to construct additional capacity as quickly as possible and to help ensure the City obtains the lowest capital and operating cost equipment, the City would like Woodard

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 2 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 & Curran to assist with equipment pre-procurement services. The assistance would identify the most favorable equipment manufacturers and models based on the City’s criteria and review equipment submittals. The City intends to execute purchase agreements for selected equipment, to be assigned to the lowest qualified bidder for construction of the capacity improvements project.

Remaining work to complete under Phase 1 at the time of this submittal includes California Environmental Quality Act compliance permitting and utility potholing; this work will continue into Phase 2 of the project . Additionally, a workshop to review the 30% design package with the City is pending, and Woodard & Curran remains ready to facilitate a workshop at our mutual convenience with the City.

On October 30th, 2025, Woodard & Curran submitted the Phase 1 - 30% Design to the City for review and comments. This letter proposal is being submitted to document and seek approval for these revisions for Phase 2 of the project. In order to maintain momentum on this project and gain additional IWWTP capacity as quickly as possible , we are requesting approval of a n amendment to begin Phase 2 of this project.

SCOPE OF SERVICES
Project Management and Administration
Project Administration: Project administration includes Project setup, invoices, coordination meetings, schedule development and monitoring, financial monitoring, and related work. The Project Manager/Deputy Project Manager and Project Assistant will conduct this work for the duration of the Project.

Project Meetings: The Project Delivery Team will meet weekly during the Project to discuss project design progress and any related issues with the City of Victorville. These periodic meetings will be conducted via teleconference.

Project Workshops: Woodard & Curran will conduct up to three in-person workshops with the City of Victorville, typically one after each design milestone deliverable 60%, 90%, and pre- procurement). The workshops will provide stakeholders with the opportunity for input on the design.

QA/QC: We will implement several Quality Assurance/Quality Control (QA/QC) measures during the Project. A team of senior experts, who are independent from the design team, will review the Project at the start and at the initial milestones. This Senior Technical Advisory Review, or STAR, will focus on big picture issues including operations, maintenance, constructability, opportunities for innovation, and a wide range of considerations to help the Project Team achieve overall Project success. In addition, se nior engineers will provide independent technical reviews of the designs, calculations, and drawings. These reviews focus on the design details. Finally, via the workshops and design reviews (both internal and by the City), constructability, operability and safety approaches will be validated.

Deliverables:

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 3 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 • Monthly invoice and progress report (pdf)
• Agenda, meeting materials, and minutes from workshops (pdf) Assumptions:
• Weekly, ½ hour teleconferences with City
• Phase 2 is anticipated to take 18 months
Environmental Surveys in Support of CEQA
Based on the findings during the first phase of project design, the City of Victorville Planning Department has requested protocol level surveys for special status species to support the IS/MND. The IS/MND will require development of avoidance and mitigation measures for special status species and permitting for Joshua Tree. Protocol level surveys and reporting that are necessary to support CEQA findings will include:
• Burrowing owl breeding season protocol surveys and report • Mohave ground squirrel trapping surveys and report
• Desert Tortoise protocol survey report
Additionally, dependent on findings of the surveys, additional Endangered Species Act permitting may be required. Scope for completing the necessary documentation to assist in obtaining the following permits has been included:
• Biological Assessment and HCP assistance for federally listed species: Desert Tortoise (Scope for supporting the Section 7 consultation process with US Fish and Wildlife Service can be provided once a federal nexus is confirmed. • California Department of Fish and Wildlife Incidental Take Permit for state listed/candidate species:
o Western Joshua Tree,
o Burrowing Owl,
o Mohave Ground Squirrel
Equipment Pre-Procurement Assistance
To reduce the total construction time, to help provide the best life -cycle value for the project, and to obtain equipment -specific details during the design process, there are several equipment-based components of the project that the City intends to pre -purchase and assign the contracts to the selected bidder. The (1) UV system, (2) fine screens, (3) grit basins, (4) blower and diffuser system, and (5) MBR system have all been identified as equipment to be pre-procured by the City. These components have be en identified because of their long lead times, their impact on long -term operations and maintenance costs, and their criticality in detailing related components of the project.

For the UV, fine screen, grit basin, and blower and diffuser equipment packages (Items 1-4), Woodard & Curran will solicit proposals from equipment manufacturers or their vendors,

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 4 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 evaluate the proposals based on criteria agreed upon by the City, make a recommendation based upon the evaluation, provide a technical memorandum summarizing the selection process, and provide contract and submittal review services.

For the MBR system (Item 5), Veolia has already been selected as the manufacturer. W&C will coordinate with Veolia to define the appropriate models of equipment and scope of supply, review early submittal packages, and coordinate the Veolia systems with the other design elements.

Deliverables:
• Five (5) technical memorandums summarizing the selection of the make and model for each of the five items defined above.

Assumptions:
• Items 1 -5 will include a kickoff call, vendor communications, proposal reviews, equipment evaluations, a technical memorandum summarizing the findings, o For Items 1 -4, up to 60 h ours of contract reviews and 190 hours of submittal reviews as included
o For Item 5, Veolia is preselected for the MBR equipment and up to 16 hours of contract reviews and 52 hours of submittal reviews as included • W&C and the City will collaborate on the equipment selection criteria • The City/plant is standardized on existing equipment in use New Operations Annex Building
This scope of work for this task includes the design and documentation for a n approximately 28’ x 70’ Operations Annex Building which houses the following:
• Offices (2)
• Conference Room
• Kitchenette
• Toilet Facilities (3 unisex type)
• Showers (4 fully enclosed single showers w/ changing areas) • Locker Area
The scope also includes:

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 5 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 • Limited interior renovations in the existing operations building to reconfigure spaces that were moved to the annex, to achieve a large conference/meeting room in the existing Operations Building
• Reconfiguration / replacement of exterior door hardware on all building to implement a card reader access control system
The design documentation will include drawings and specifications from the following disciplines:
• Structural/Architectural which will include life safety code analysis, design of the foundation and superstructure, building enclosure and openings, ADA accessibility, design of interior layout with openings, plumbing fixtures, finishes and fixed casework/equipment for spaces listed above.
• HVAC Mechanical, including heating, cooling and ventilation as required for the spaces noted above and required by the code.
• Plumbing including building plumbing components typical of a building of this occupancy including but not limited to water supply and wastewater infrastructure, plumbing fixtures, roof drainage
• Electrical design including electrical systems typical to a building of this occupancy including but not limited to interior and exterior lighting, building power, networking and audio-visual connections in the conference room. • Civil designs including the design of parking, sidewalks, site utility connections, stormwater design and site grading.

Deliverables:
• Drawings and specifications will be provided consecutively with the capacity expansion improvements
• Agenda, meeting materials, and minutes from workshops (pdf) Assumptions:
• The existing Operations Building does not require any additional modifications or rehabilitations
• The existing Operations Building does not, and does not require, an occupancy permit
• The Operations Annex Building will require an occupancy permit • Neither building requires fire suppression/sprinkler systems 60%, 90% and 100% Final Design Documents

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 6 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 Based on the accepted Preliminary Design Report, Woodard & Curran will develop a series of milestone design packages – 60%, 90% and 100% Final – for the City’s review. The packages will include drawings and specifications prepared in accordance with CSI and Woodard & Curran design standards and will be detailed to a level that is proportional to the design’s completion. The appropriate level of contingency will be included for the respective design level of detail. Comments from the City will be logged and responded to with or before the subsequent design milestone.

Drawings will include existing applicable and any future necessary rights -of-way modifications and easements.

Phase 2 Deliverables: The deliverables for this phase include:
• Design Package for City Review, include drawings, specifications, and construction cost estimate, at the following milestones (pdf):
o 60% Design
o 90% Design
o 100% Final Design (with AutoCAD format files)
Phase 2 Assumptions: The following assumptions are included in this phase of services:
• Drawings, Specifications, and Cost Estimates
o City will provide the City’s “boiler plate” front end specification documents. o The specifications will be issued in CSI format for Divisions 02 through 46. o The Opinion of Probable Project costs will be presented to the City with each deliverable in accordance with AACE estimating procedures. The appropriate level of contingency will be included for the respective design level of detail.
o Project is intended to be designed in Revit and exports to AutoCAD format will be generated for City’s use.
o Non-standard design features will be provided to the City for approval, as needed.

SCHEDULE
Upon receipt of a fully executed agreement, we anticipate 100% Design being complete in 18 months with the following anticipated milestones:
• 60% Design: 8 months
• City Comment Period: 1-2 months

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 7 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026 • 90% Design: 4 months
• City Comment Period: 1-2 months
• 100% Design: 2 months
BUDGET
The proposed budget for completion of Phase 2 work described herein is summarized below , and a detailed hourly fee table can be included upon request:

TERMS AND CONDITIONS
We anticipate t he Scope of Services will be completed in accordance with the terms that are consistent with the Consultant/Professional Services Agreement CC24-099 between Woodard & Curran, Inc. and the City of Victorville, dated September 5th, 2024.

Line Parameter
1 Initially Proposed Phase 2 Fee Estimate ( 5/24) $3,013,000 2 Updated Phase 2 Fee Estimate (11/25)
3 Proposed Scope Additions
4 New Operations Annex Bldg Design and Exist. Bldg Rehab $330,000 5 Fire Flow Improvements Design $50,000
6 Equipment Pre-procurement Assistance $248,000
7 Net Changes for Engineering and Design $780,000
8 Environmental Survey Support $313,500
9 Total Scope Changes (Sum Line 4 - Line 8) $1,721,500 10 Updated Phase 2 Fee Estimate (11/25) (Line 1 + Line 9) $4,734,500 11 Optional Services
12 WIFIA Application Support $25,000
13 SRF Application Support $100,000
14 Air Permitting Support $25,000
15 Net Scope Changes (Sum Line 15 - Line 17) $150,000
16 Updated Phase 2 Fee Estimate w/ Optional Services (Line 10 + Line 15) $4,884,500

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

City of Victorville, CA 8 Woodard & Curran, Inc.

Phase 2 – IWWTP Capacity Expansion Design February 6, 2026

CLOSING
We greatly appreciate this opportunity to continue supporting the City with this critical project.

If you have any questions related to this proposal or require any further information, please contact Anthony Naccarato at 949.248.5027 or at [email protected] or Scott Goldman at 949.420.5314 or at [email protected].

Sincerely,
Woodard & Curran, Inc.
________________________________________ ________________________________________ Scott Goldman, PE, BCEE Tony Elberti, PE
Project Manager Principal-in-Charge
Vice President | Senior Principal Wastewater Market Leader | Senior Principal ________________________________________ ________________________________________ Gregory Sands, PE Anthony Naccarato
Deputy Project Manager Client Manager
Principal Associate Principal

EXHIBIT A
CONSULTANT'S PROPOSAL, IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT, PROJECT CC24-099

Attachment C
Original Agreement &
Amendment No. 1
A

GREEMENT

ORIGINAL
Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Fee Estimate
Client: City of Victorville May 2024
Project: CC24-099 IWWTP Expansion Design and Construction Support Phases Total
Tony Elberti Scott
Goldman Greg Sands Harpreet Rai Tia Trate Josh Jondo Kim Clyma Richard Harmon
Chris
McMahon Brian Wickes
Sue Guswa,
Tech.

Advisors
Multiple Multiple
Electrical,
Structural,
and I&C
Leads
Multiple Manager Drafter Project
Assistant
SLR
Consulting
Rincon
Consulting
Charlie Cruz
SPI
Chris Nelson &
Associates
DEVCO
Development
& Engineering
Sub Markup ODC Markup
PIC PM Deputy PM Sr. Tech Ldr Design
Manager Sr. Tech Ldr TM2 TM2 TM2 TM1 QAQC PE1 E2 TDG
Managers TDG Staff BIM BIM/CADD SUB SUB SUB SUB SUB 10% 10% $350 $335 $300 $335 $320 $320 $300 $300 $300 $285 $335 $255 $220 $300 $240 $210 $160 $120 Phase 1: Preliminary Design (30%) Services

1.1 Project Management and Administration

1.1.1 Invoicing, Contracting, and Team Management 36 162 12 210 $62,100 $0 $0 $0 $0 $0 $62,100

1.1.2 Kickoff Meeting 2 2 3 2 3 2 2 16 $5,110 $0 $0 $0 $0 $0 $5,110

1.1.3 Meetings 8 16 61 46 16 4 8 8 167 $50,460 $0 $0 $0 $15,000 $1,500 $16,500 $66,960

1.1.4 Quality Control 32 2 14 2 6 2 1.5 1.5 33.5 2 96 2 2 1 1 1 1 1 201.5 $64,960 $25,870 $25,870 $2,587 $28,457 $3,000 $300 $3,300 $96,717

1.2 Initial Site Investigations

1.2.1 Site Visits 8 16 8 8 16 56 $16,400 $17,980 $17,980 $1,798 $19,778 $5,000 $500 $5,500 $41,678

1.2.2 Initial Geotechnical Investigations 4 4 $1,200 $153,260 $153,260 $15,326 $168,586 $0 $0 $169,786

1.2.3 Utility Potholing and Utility Coordination 2 2 8 8 16 60 20 24 16 40 196 $45,190 $31,875 $31,875 $3,188 $35,063 $0 $0 $80,253

1.3. Financial Initiative Plan 2 80 16 98 no fee $0 $0 $0 $0 $0 no fee

1.4. Conceptual Design

1.4.1 Conceptual Design Development 8 1 100 40 28 100 60 30 32 40 80 519 $134,975 $0 $0 $0 $0 $0 $134,975

1.4.2 Conceptual Design Workshop 2 1 4 16 8 4 16 51 $15,515 $0 $0 $0 $0 $0 $15,515

1.5. Initial Permitting and Environmental Documentation

1.5.1 Environmental Constraints 2 4 40 46 $13,870 $63,958 $63,958 $6,396 $70,354 $0 $0 $84,224

1.5.2 Permitting Review 2 2 24 28 $8,470 $4,745 $4,745 $475 $5,220 $0 $0 $13,690

1.5.3 California Environmental Quality Act Compliance & Permitting 2 200 202 $60,670 $16,270 $16,270 $1,627 $17,897 $0 $0 $78,567

1.5.4 New Waste Discharge Requirements Permit Amendment 2 280 282 $80,470 $0 $0 $0 $3,000 $300 $3,300 $83,770

1.6. 30% Design Documents

1.6.1 Basemapping 2 2 24 24 20 100 100 20 40 332 $84,070 $20,250 $20,250 $2,025 $22,275 $0 $0 $106,345

1.6.2 30% Drawings 16 4 12 36 80 16 60 100 160 220 240 400 1344 $305,820 $0 $0 $0 $5,000 $500 $5,500 $311,320

1.6.3 30% Opinion of Probable Construction Cost 4 8 12 8 30 16 80 120 278 $74,290 $0 $0 $0 $0 $0 $74,290

1.6.4 Draft Preliminary Design Report 8 12 24 12 8 12 80 60 100 150 466 $123,220 $12,900 $12,900 $1,290 $14,190 $0 $0 $137,410

1.6.4a Draft Preliminary Design Report (AWTF Addendum) 4 20 40 24 12 4 2 4 100 60 60 100 18 448 $119,850 $86,104 $86,104 $8,610 $94,714 $5,000 $500 $ 5,500 $220,064

1.6.5 Final Preliminary Design Report and Response to Comments 4 4 12 6 24 12 16 40 118 $31,460 $3,440 $3,440 $344 $3,784 $0 $0 $35,244 Subtotal Phase 1: 68 104 330 208 291 90 273.5 81.5 37.5 322 100 484 394 575 795 335 561 13 5062.5 $1,298,100 $187,580 $84,973 $111,974 $20,250 $31,875 $4 36,652 $43,666 $480,318 $36,000 $3,600 $39,600 $1,818,018 Phase 2: Final Design (30%-100%) Services

2.1 Project Management and Administration

2.1.1 Invoicing, Contracting, and Team Management 81 242 18 341 $101,895 $0 $0 $0 $0 $0 $101,895

2.1.2 Meetings 8 30 92 69 24 6 12 12 253 $76,450 $0 $0 $0 $45,000 $4,500 $49,500 $125,950

2.1.3 Quality Control (60%, 90%, 100%) 32 16 26 6 18 6 4 78 4 360 2 2 1 1 1 1 1 559 $182,370 $73,320 $73,320 $7,332 $80,652 $0 $0 $263,022

2.2. 60% Design Documents

2.2.1 Drawings 16 24 4 80 80 48 200 240 250 1000 160 240 2342 $573,400 $0 $0 $0 $2,500 $250 $2,750 $576,150

2.2.2 Specifications 2 4 40 40 40 140 240 100 400 1006 $255,370 $38,780 $38,780 $3,878 $42,658 $0 $0 $298,028

2.2.3 Opinion of Probable Construction Costs 2 8 12 24 8 24 40 20 80 20 238 $60,650 $0 $0 $0 $0 $0 $60,650

2.2.4 Response to 30% Design Comments 2 8 8 8 40 40 20 80 206 $52,670 $0 $0 $0 $0 $0 $52,670

2.2.5 Supplemental Site Visits 2 16 8 16 24 12 40 8 126 $33,310 $0 $0 $0 $20,000 $2,000 $22,000 $55,310

2.3. 90% Design Documents

2.3.1 Drawings 12 20 8 80 80 48 200 280 80 600 240 400 2048 $476,060 $0 $0 $0 $25,000 $2,500 $27,500 $503,560

2.3.2 Specifications 2 4 32 40 40 200 280 60 400 1058 $264,790 $38,780 $38,780 $3,878 $42,658 $0 $0 $307,448

2.3.3 Opinion of Probable Construction Costs 2 8 8 24 8 40 60 40 36 20 246 $63,230 $0 $0 $0 $0 $0 $63,230

2.3.4 Response to 60% Design Comments 2 6 8 24 12 40 24 116 $31,760 $0 $0 $0 $0 $0 $31,760

2.4. 100% Design Documents

2.4.1 Drawings 8 16 8 24 60 36 200 120 60 400 120 200 1252 $297,920 $0 $0 $0 $2,500 $250 $2,750 $300,670

2.4.2 Specifications 2 4 24 40 8 100 120 40 200 538 $137,170 $0 $0 $0 $0 $0 $137,170

2.4.3 Opinion of Probable Construction Costs 2 8 8 12 8 16 16 12 24 20 126 $32,310 $0 $0 $0 $0 $0 $32,310

2.4.4 Response to 90% Design Comments 2 6 8 8 24 12 24 84 $22,320 $0 $0 $0 $0 $0 $22,320 Subtotal Phase 2: 76 207 432 342 527 266 4 0 78 4 360 1258 1480 735 3321 529 901 19 10539 $2,661,675 $77,560 $0 $73,320 $0 $0 $150,880 $15,088 $165,968 $95, 000 $9,500 $104,500 $2,932,143 Phase 3: Bidding and Construction Services

3.1 Project Management and Administration

3.1.1 Invoicing, Contracting, and Team Management 26 52 24 102 $27,190 $0 $0 $0 $0 $0 $27,190

3.1.2 Meetings 8 50 120 96 16 24 16 24 354 $106,190 $43,100 $43,100 $4,310 $47,410 $58,000 $5,800 $63,800 $217,400

3.1.3 Quality Control 14 2 14 2 6 2 1.5 49.5 2 108 2 2 1 1 1 1 1 210 $67,030 $39,940 $39,940 $3,994 $43,934 $0 $0 $110,964

3.2 Advertising Support

3.2.1 Prebid Meeting 2 2 4 4 12 $3,890 $0 $0 $0 $0 $0 $3,890

3.2.2 Responses to Questions 2 6 20 12 40 $10,420 $4,800 $4,800 $480 $5,280 $0 $0 $15,700

3.2.3 Conformed Contract Documents 2 2 4 8 2 9 6 12 45 $10,530 $0 $0 $0 $2,500 $250 $2,750 $13,280

3.3 Construction Support

3.3.1 Meetings 2 196 192 4 394 $121,930 $31,810 $31,810 $3,181 $34,991 $0 $0 $156,921

3.3.2 Request for Information Responses 2 10 10 20 100 150 180 472 $127,120 $0 $0 $0 $0 $0 $127,120

3.3.3 Construction Change Order 2 200 125 180 20 60 587 $146,170 $7,400 $7,400 $740 $8,140 $0 $0 $154,310

3.3.4 Submittal Reviews 2 10 10 15 200 125 180 542 $143,520 $23,320 $23,320 $2,332 $25,652 $0 $0 $169,172

3.3.5 Inspection 2 8 8 8 384 60 60 530 $138,630 $217,510 $217,510 $21,751 $239,261 $65,500 $6,550 $72,050 $449,941

3.3.6 Record Drawings 2 80 60 120 262 $52,870 $11,910 $11,910 $1,191 $13,101 $2,500 $250 $2,750 $68,721 Subtotal Phase 3: 22 96 414 40 345 2 1.5 0 49.5 2 108 1014 38 479 634 87 193 25 3550 $955,490 $339,850 $0 $39,940 $0 $0 $379,790 $37,979 $417,769 $128,500 $1 2,850 $141,350 $1,514,609 TOTAL 166 407 1176 590 1163 358 279 81.5 165 328 568 2756 1912 1789 4750 951 1655 57 19151.5 $4,915,265 $604,990 $84,973 $225,234 $20,250 $31,875 $967,3 22 $96,733 $1,064,055 $259,500 $25,950 $285,450 $6,268,150

2. Subconsultants will be billed at actual cost plus 10%.

5. Additional Woodard & Curran staff may perform work on the proj ect, based on our standard billing rate schedule currently in effect.

3. Other direct costs (ODCs) such as reproduction, delivery, mileage (rates will be those allowed by current IRS guidelines), and travel expenses, will be billed at actual cost plus 10%.

4. W&C reserves the right to adjust its hourly rate structure and ODC markup at the beginning of the calendar year for all ongoing contracts.

Total ODCs (3)
ODCs Labor Outside Services
Total
FeeODCsSubtotal

1. The individual hourly rates include salary, overhead and profit.

Total Hours
Sub
Consultant
Total Cost (2)
Total Labor
Costs (1)
EXHIBIT B, COST PROPOSAL, PROJECT CC24-099

 


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Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

DOCUSIGN

CERTIFICATE

Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Certificate Of Completion
Envelope Id: 1A8493CD-86F5-4E82-B56E-D33F151B409D
Status: Completed
Subject: Revised Woodard & Curran-Amend. 1-CC24-099 for IWWTP Expansion 2024, CC24-099 Source Envelope:

Document Pages: 6
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Certificate Pages: 4
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Elizabeth Salcido
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
[email protected]
IP Address: 24.182.14.221
Record Tracking
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8/25/2025 1:43:59 PM
Holder: Elizabeth Salcido
[email protected]
Location: DocuSign
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Scott Goldman, Vice President
[email protected]
Senior Principal
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Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE AMENDMENT NO. 1
Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Consultant/Professional Services Provider Agreement/Woodard & Curran, Inc./Project CC24-099/Amendment #1 Pa
ge 1 of 6
AMENDMENT NUMBER: ONE
TO

CONSULTANT/PROFESSIONAL SERVICES PROVIDER

AGREEMENT

BY AND BETWEEN

CITY OF VICTORVILLE
AND
WOODARD & CURRAN, INC.

FOR
IWWTP EXPANSION 2024 DESIGN AND CONSTRUCTION SUPPORT,
PROJECT CC24-099
THIS A MENDMENT (the “Amendment”) is made and entered into this 4th day of September, 2025, by and between the City of Victorv ille, a municipal c orporation, organized and existing in the County of San Bernardino under and by virtue of the laws of the State of California (hereinafter referred to as “City”), and Woodard & Curran, Inc., a corporation located in the stat e of Maine, hereinafter referred to as “Consultant”, City and Consultant are sometimes hereinafter referred to indiv idually as a “Party” and collectively referred to as the “Parties”.

Recitals

1. WHEREAS, th e City has a Consultant/Professional Services Provider Agreement (hereinafter r eferred to as the “Original Agreement”) with the Consultant to pr
ovide IWWTP Expansion 2024 Design and Construction Support; and

2. WHEREAS, it is the desire of the Parties to issue Amendment One (1) to the Original
Agreement to amend Section 6., Term of the Agreement to exercise Option
1 of 4, additional one-year periods, amending the term to commence September 17, 2025 and expire September 16, 2026; and to add Prevailing Wage Provisions as a continuing required reference to all Public Work associated with said on-g oing maintenance services; and Section 3., Compensation total annual not to exceed sum of $1,818,018.00 remains unchanged; and

3. NOW THEREFORE, in consideration of the covenants, conditions, and promises contained herein and for such other good and valuable consideration, receipt of which is hereby acknowledged, the Parties are willing to amend the Original Agreement as s
tated below.

Docusign Envelope ID: 1A8493CD-86F5-4E82-B56E-D33F151B409D Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Consultant/Professional Services Provider Agreement/Woodard & Curran, Inc./Project CC24-099/Amendment #1 P
age 2 of 6
C
ontract Amendment
S
ection 6. – TERM OF AGREEMENT - is amended as follows:

“The City hereby amends the Term of Agreement to commence on September 1 7, 2025 (the “Commencement Date”) and expire on September 16, 2026 (the “Termination Date”).”
Prevailing Wage: The work contemplated by this project is a public work subject to prevailing wages under California Labor Code section 1770 et. Seq. In accordance with the provisions of California Labor Code Sections 1720, 1770- 1776, 1810, 1813, and 1815, as amended, the Director of the DIR has determined the general prevailing rate of per diem wages in accordance with the standards set forth in Labor Code Section 1773 for the locality in which the Work is to be performed attached here to as Exhibit C.

E
xcept as amended herein, t he terms and conditions of the O riginal Agreement and all previous amendments remain in full force and effect.
(

SIGNATURES ON NEXT PAGE)
Docusign Envelope ID: 1A8493CD-86F5-4E82-B56E-D33F151B409D Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

Consultant/Professional Services Provider Agreement/Woodard & Curran, Inc./Project CC24-099/Amendment #1

EXHIBIT C

STATE PREVAILING WAGE AND RELATED LABOR PROVISIONS

a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the City has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at http://www.dir.ca.gov/DLSR/PWD. Consultant and its subconsultants/subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, the IWWTP Expansion 2024 Design and Construction Support, and any other work or services described in or encompassed by California Labor Code (“ Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Consultant shall be solely responsible for using the correct and current prevailing wage rates and performing accordingly. An error on the part of any awarding body does not relieve the Consultant from the responsibility for payment of the correct prevailing wage, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq.; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.

b. Designation as Consultant Not Determinative. For purposes of this Agreement, Consultant its subconsultants or subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Consultant or subconsultant herein.

c. Conflict. It is further ex pressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section 5 and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section 5 shall control, and nothing herein shall be considered as an acceptance of the terms of Consultant’s Scope of Services, Scope of Work, or Cost/Bid Proposal which conflict with the provisions of this Section 5.

d. Payroll Records. Consultant and its subconsultants/subcontractors must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq . (hereinafter the “ Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR. (1) C
onsultant and Subconsultant/Subcontractor Obligations. Consultant and each subconsultant or subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll Docusign Envelope ID: 1A8493CD-86F5-4E82-B56E-D33F151B409D Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Consultant/Professional Services Provider Agreement/Woodard & Curran, Inc./Project CC24-099/Amendment #1

record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:

(a) The information contained in the payroll record is true and correct; and

(b) Consultant and or subconsultant/subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.

(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.

(3) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Consultant and/or subconsultant/subcontractor has ten days in which to comply with the requirements of this section. If Consultant and/or subconsultant/subcontractor fails to do so within the ten -day period, Consultant and/or subconsultant/subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Consultant and/or subconsultant/subcontractor.

(4) Payment of Invoices. Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the City. Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.

e. Apprentices. Consultant is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.

f. Notices. Pursuant to Labor Code section 1771.4, Consultant is required to post all Job Site notices, including prevailing wage rates and other notices, as required by regulation.

g. Other Labor Requirements. Consultant has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 et seq ., the Regulations, and all other applicable State labor laws. Consultant further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Consultant shall require the same of all its subconsultants or subcontractors.

h. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hours laws will be enforced as follows:

(1) Pursuant to Labor Code section 1775, the Consultant and any subcontractor/subconsultant under it shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or Docusign Envelope ID: 1A8493CD-86F5-4E82-B56E-D33F151B409D Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Consultant/Professional Services Provider Agreement/Woodard & Curran, Inc./Project CC24-099/Amendment #1

craft in which such worker is employed for any public work done under this Agreement by it or by any subcontractor/subconsultant under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Consultant and/or subconsultant/subcontractor as provided for in Section 1775.
(2) Pursuant to Labor Code Section 1813, Consultant and its subconsultants or subcontractors shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement by the respective Consultant or subconsultant/subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.

i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the DIR.

j. DIR Registration . Pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and its subconsultants/subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Agreement, Consultant represents that it is aware of the registration requirement and is currently registered with the DIR.

Consultant shall maintain a current registration for the duration of the Agreement. Consultant shall further include the requirements of Labor Code Sections 1725.5 and 1771.1 in any subcontract and ensure that all subconsultants/subcontractors are registered at the time this Agreement is entered into and maintain registration for the duration thereof.

Docusign Envelope ID: 1A8493CD-86F5-4E82-B56E-D33F151B409D Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

INSURANCE

Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOSAUTOS ONLY

NON-OWNED

SCHEDULEDOWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-

STATUTE
PER

LIMITS(MM/DD/YYYY)

POLICY EXP
(MM/DD/YYYY)

POLICY EFF

POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR

CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE

DAMAGE TO RENTED
$PREMISES (Ea occurrence)

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY PRO-

JECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
7/10/2025
Edgewood Partners Insurance Agency
3780 Mansell Rd. Suite 370
Alpharetta GA 30022
Greyling COI Specialist
770.756.6599
770.756.6599
[email protected]
Continental Casualty Company
20443
The Continental Insurance Company
35289
Woodard & Curran, Inc.
12 Mountfort Street
Portland, ME 04101
National Union Fire Ins Co of Pittsburg
19445
New Hampshire Insurance Company
23841
1098744192
C
X
2,000,000
X
500,000
25,000
2,000,000
4,000,000
X
X
GL3960965
4/1/2025
4/1/2026
4,000,000
C
2,000,000
X
X
X
CA4629109
4/1/2025
4/1/2026
B
X
X
10,000,000
7063893898
4/1/2025
4/1/2026
10,000,000
X
10,000
D
D
X
N
WC13711874 (AOS)
WC13711873 (CA)
4/1/2025
4/1/2025
4/1/2026
4/1/2026
2,000,000
2,000,000
2,000,000
A
Professional Liability
incl. Pollution
AEH114135520
2/23/2025
2/23/2026
Per Claim
Aggregate
10,000,000
10,000,000
The City of Victorville, its officers, employees, servants, volunteers, and agents and independent contractors, including without limitation, the City attorney, The City of Victorville Redevelopment Agency, its officers, employees, servants, volunteers, agents, and independent contractors, and the Southern California Logistics Airport Authority, its officers, employees, servants, volunteers, gents and independent contractors shall be included as additional insured with respects to General, Auto, and Umbrella Liability where required by written contract. General Liability, Auto & Umbrella Liability are Primary and Non-contributory as required per written contract. A 30 Day Notice of Cancellation is provided in accordance with the policy terms and conditions.

The City of Victorville
14343 Civic Drive
Victorville CA 92393-0000
Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

ENDORSEMENT
This endorsement, effective 12:01 A.M. 04/01/2025
forms a part of Policy No. CA4629109
issued to Woodard & Curran, Inc.
by NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

EARLY NOTICE OF CANCELLATION PROVIDED BY US
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

TRUCKERS COVERAGE FORM

GARAGE COVERAGE FORM
COMMON POLICY CONDITIONS, A. - Cancellation, 2. is amended to read:

2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least:
a. TEN ( 10) * days before the effective date of cancellation if we cancel for nonpayment of premium; or
b. SIXTY (60)* days before the effective date of cancellation if we cancel for any other reason.
* The notice period provided shall not be less than that required by applicable state law(s).

Authorized Representative or
Countersignature (in States Where
Applicable)
101399 (4/09) Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 1 of 1 Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

ENDORSEMENT
This endorsement, effective 12:01 A.M. 04/01/2025
forms a part of Policy No. CA4629109
issued to Woodard & Curran, Inc.
by NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

ADDITIONAL INSURED - WHERE REQUIRED UNDER CONTRACT OR AGREEMENT This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

SCHEDULE
ADDITIONAL INSURED:

AUTHORIZED REPRESENTATIVE
I. SECTION II - COVERED AUTOS LIABILITY COVERAGE, A. Coverage, 1. - Who Is Insured, is amended to add:
d. Any person or organization, shown in the schedule above, to whom you become obligated to include as an additional insured under this policy, as a result of any contract or agreement you enter into which requires you to furnish insurance to that person or organization of the type provided by this policy, but only with respect to liability arising out of use of a covered "auto". However, the insurance provided will not exceed the lesser of:
(1) The coverage and/or limits of this policy, or
(2) The coverage and/or limits required by said contract or agreement.

ANY PERSON OR ORGANIZATION FOR WHOM YOU ARE CONTRACTUALLY BOUND TO PROVIDE

ADDITIONAL INSURED STATUS BUT ONLY TO THE EXTENT OF SUCH PERSON'S OR ORGANIZATION'S LIABILITY ARISING OUT OF THE USE OF A COVERED "AUTO". 87950 (9/14) Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 1 of 1 Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

ENDORSEMENT
This endorsement, effective 12:01 A.M. 04/01/2025
forms a part of Policy No. CA4629109
issued to Woodard & Curran, Inc.
by NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
All other terms and conditions remain unchanged.

Authorized Representative or
Countersignature (in States Where
Applicable)

INSURANCE PRIMARY AS TO CERTAIN ADDITIONAL INSUREDS
Section IV - Business Auto Conditions, B., General Conditions, 5., Other Insurance, c., is amended by the addition of the following sentence:

The insurance afforded under this policy to an additional insured will apply as primary insurance for such additional insured where so required under an agreement executed prior to the date of accident. We will not ask any insurer that has issued other insurance to such additional insured to contribute to the settlement of loss arising out of such accident. 74445 (10/99) Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 1 of 1 Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

ENDORSEMENT
This endorsement, effective 12:01 A.M. 04/01/2025
forms a part of Policy No. CA4629109
issued to Woodard & Curran, Inc.
by NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

BUSINESS AUTO COVERAGE FORM

AUTHORIZED REPRESENTATIVE
This endorsement modifies insurance provided under the following:

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (2)
(1)
The contract or agreement was entered into prior to any "accident" or "loss".

No waiver of the right of recovery will directly or indirectly apply to your employees or employees of the person or organization, and we reserve our rights or lien to be reimbursed from any recovery funds obtained by any injured employee.

Section IV - Business Auto Conditions, A. - Loss Conditions, 5. - Transfer of Rights of Recovery Against Others to Us, is amended to add:

The "accident" or "loss" is due to operations undertaken in accordance with the contract existing between you and such person or organization; and
However, we will waive any right of recover we have against any person or organization with whom you have entered into a contract or agreement because of payments we make under this Coverage Form arising out of an "accident" or "loss" if:
62897 (6/95) Includes copyrighted material of Insurance Services Office, Inc. with its permission. Page 1 of 1 Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE

BLANKET WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a different date is indicated below.
(The following "attaching clause" need be completed only when this endorsement is issued subsequent to preparation of the policy). forms a part of Policy No. WC WC13711873This endorsement, effective 12:01 AM 04/01/2025 Issued to Woodard & Curran, Inc.

By NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

We have a right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against any person or organization with whom you have a written contract that requires you to obtain this agreement from us, as regards any work you perform for such person or organization.

The additional premium for this endorsement shall be 2. 00 % of the total estimated workers compensation premium for this policy.

WC 04 03 61
(Ed. 11/90)
Countersigned by _
Authorized Representative
Docusign Envelope ID: 032537F0-0916-4457-A3E5-E982F8F7DAEE Item Number: 13
City Council / Board of Directors
Written Communications
Meeting of: February 17, 2026
Submitted By:

Doug Mathews, Director of Public Works and Water

Subject:

Award of a Consultant/Professional Services Provider Agreement for the Conservation as a California Way of Life Technical Assistance Plan
Recommendation:

That the Honorable Board of Directors award a Consultant/Professional Agreement to Maddaus Water Management in the amount of $137,123 for City of Victorville 2025 Conservation as a California Way of Life Technical Assistance Plan, Project No. CC26- 058.

Fiscal Impact:

The recommended action will result in a fiscal impact of $137,123. Funds for this expenditure have been appropriated in the Fiscal Year 2025-2026 budget and no additional appropriations are needed.

Account Available Balance
4100525-52300-74653 $140,000
Strategic Plan Goal:

This item supports Strategic Goal E: Create a healthy and livable community by maintaining the Victorville Water District (District’s) assets through investment in infrastructure and innovation. The proposed professional services agreement for the Conservation as a California Way of Life Technical Assistance Plan (Plan) builds upon the District’s investment in water infrastructure, including Advanced Metering Infrastructure (AMI), by applying innovative, data-driven approaches to water conservation, system efficiency, and regulatory compliance. 4 5
6 2
By integrating infrastructure capabilities with long-term conservation planning, this effort helps protect the District’s water assets, promotes sustainable resource use, and enhances service delivery to residents and businesses.

Background:

In 2018, the State of California adopted Senate Bill 606 and Assembly Bill 1668, known collectively as Making Conservation a California Way of Life. These laws created a new statewide approach to water conservation that requires urban water suppliers to plan for and achieve long-term, efficient water use while accounting for local conditions.

Under this framework, each water supplier must calculate an Urban Water Use Objective (UWUO), a target that represents the amount of water the community would use if water were being used efficiently. This objective is based on factors such as residential indoor and outdoor water use, irrigation, system water losses, and approved adjustments unique to the service area.

In addition to the UWUO, the framework establishes Commercial, Industrial, and Institutional (CII) Performance Measures. These measures focus on improving water efficiency in non-residential accounts through best management practices, improved meter configurations, and information sharing for large water-using facilities.

On July 3, 2024, the State Water Resources Control Board formally adopted the Making Conservation a California Way of Life Regulation (Regulation), which puts these requirements into effect. The Regulation requires annual reporting by water suppliers and sets a deadline of January 1, 2027, for agencies to meet their assigned water-use objectives. State enforcement will begin at that time.

The District is currently in compliance with all reporting requirements and has successfully submitted its required annual reports. However, continued planning and implementation are necessary to ensure the District meets future conservation targets and remains compliant as enforcement approaches. A simple regulatory summary is listed below.

Regulatory Timeline
2018 – SB 606 and AB 1668 signed into law
August 2023 – Draft conservation regulations released
January 1, 2024 – Annual reporting requirements began
July 3, 2024 – Final Regulation adopted by the State Water Board January 1, 2025 – Regulation became effective
January 1, 2027 – Water suppliers must meet conservation objectives; enforcement begins
Discussion:

The State’s Making Conservation a California Way of Life Regulation transitions water conservation from voluntary efforts to enforceable, long-term efficiency standards for urban water suppliers. Although the District is currently compliant with all reporting requirements, upcoming deadlines require the District to actively plan for and implement 4 5
6 2
conservation measures in order to meet its assigned water-use objectives by January 1, 2027.

To support ongoing compliance with reporting requirements and to meet the Urban Water Use Objective (UWUO) and Commercial, Industrial, and Institutional (CII) Performance Measures, the District sought a qualified professional partner. A Request for Proposals (RFP) for a Technical Assistance Plan was issued through the OpenGov Procurement Software on September 25, 2025, with proposals due by October 30, 2025. Two proposals were received and evaluated by a three-member review panel. The resulting scores are shown below:

Vendor Rater 1 Rater 2 Rater 3 Average
Environmental Incentives, Inc. 96 95 91 94
Maddaus Water Management 100 99 96 98.33

Maddaus Water Management’s proposal demonstrated extensive experience with State water-use efficiency mandates, a highly qualified team of water utility industry experts, and a proven track record of developing and implementing similar water-use efficiency plans for other public water agencies. Maddaus Water Management will provide all labor, materials, and professional services necessary to develop a Plan that will support the District in planning for and achieving regulatory compliance. The firm will also leverage District data, including information from the AMI system, to support data-driven decision- making.

Failure to comply with the State’s conservation requirements may result in enforcement actions beginning in 2027, including potential financial penalties, mandated corrective measures, increased operational costs associated with reactive compliance efforts, and reduced local control over water management decisions. Proactively developing and implementing the Plan will allow the District to minimize these risks, protect its water resources, and continue to provide reliable and efficient water service to the community.

The Plan will establish a structured, locally tailored framework to translate State regulations into effective conservation programs, set measurable benchmarks, and ensure continued compliance as enforcement approaches.

Once the draft Plan is ready for Board approval, the Plan will be brough back for review and adoption.

Staff recommends that the Board of Directors award a Consultant/Professional Agreement to Maddaus Water Management in the amount of $137,123 for City of Victorville 2025 Conservation as a California Way of Life Technical Assistance Plan, Project No. CC26-058.

Staff is available for any questions the Board may have.

Prepared By:

Mel Krejckant, Public Works & Water Administrative Manager 4 5
6 2
Sam Arvizu, Water Manager
Norma Armenta, Water Efficiency Supervisor
Attachments: A. Consultant/Professional Agreement
B. Making Conservation a California Way of Life Legislative Overview
Attachment A
Consultant/Professional
Agreement

Attachment B
Making Conservation a
California Way of Life
Legislative Overview
Overview
SB 606 and AB 1668, signed in 2018 are intended to “Make Water Conservation a California Way of Life.” In total, three water use standards (indoor residential, outdoor residential, and outdoor commercial, industrial and institutional (CII-DIM)), one water loss standard, and a variety of adjustments are used to calculate each urban water supplier’s overall budget. The sum of these is known as an Urban Water Use Objective (UWUO).

Provisional Data
In March 2024, the State Water Board released
updated provisional data for every urban water
supplier in the state used for their Water Use
Objective Exploration Tool. The chart to the right
shows projections for reductions needed by water
suppliers in 2040 based on the State’s provisional
data. (Note the provisional data does not include
potential variances that suppliers may be able to
utilize to adjust their UWUO. )
Making Conservation a California Way of Life
Outdoor Residential
Water Budget
CII-DIM Outdoor
Water Budget
Water Loss
Budget
Urban Water Use Objective (UWUO)
Indoor Residential
Water Budget
Adjustments if
applicable:

Variances, Temporary
Provisions, and/or
Bonus Incentive
Adjustments to an UWUO can be made via variances, temporary provisions, and/or a bonus incentive for potable reuse, where applicable per supplier. A variance or temporary provision must receive prior approval by submitting a request to the State Water Board.

In addition to the UWUO, every urban supplier will need to comply with a set of CII performance measures. These performance measures are intended to enable water-usage benchmarking per CII classification category as well as establish BMPs for indoor and outdoor CII water use regardless of CII- DIM status. Even if an agency meets its UWUO, it will still need comply with the CII Performance Measures.

Use the QR code to go to the Water Use Objective Exploration Tool.

February 2025
CalWEP is your implementation partner.

CalWEP has been making conservation a california way of life since 1991. We are uniquely suited to help water agencies meet and exceed their urban water use objective, and comply with CII performance measures.

AVAILABLE NOW:

Cut sheets
Framework 101 slide deck
NAICS to ESPM Crosswalk
Disclosable Buildings Toolkit
CII DIM Identification Guidebook
RFP Guidance and Template RFP
CalWEP LAM Viewer Powered by WaterView
CalWEP’s Compliance Resource Hub (scan QR code)
CII Classification Guidance Document
Variance Modeler
IN DEVELOPMENT:

Alternative Compliance Support Tools
Qualified Vendors List
Direct Technical Assistance Program
Timeline for Implementation and Reporting
For more information, please visit: www.calwep.org or email [email protected] 2 February 2025
Indoor Residential Water Budget (gal/yr) = Indoor Residential Standard x Population x 365 days The Indoor Residential Standard is the maximum allowed indoor water use measured in gallons per capita per day (GPCD). It is intended to represent efficient use. The Indoor Residential Standard will decrease over time.

Indoor Residential Standard by year
Compliance Year Allowable GPCD
2020-2024
2025-2029
2030 onward
55 47
42 Making Conservation a California Way of Life

DIVE INTO THE DETAILS
Indoor Residential Water Budget
5 Outdoor Residential Water Budget (gal/yr) = LAM x LEF x (ETo-Peff) x 0.62 Factor Definition
LAM Landscape Area Measurement includes the following landscape types:

Irrigable-Irrigated (II),
Irrigable-Not-Irrigated (INI) – up to 20% until LAM data is updated, Special Landscape Areas (SLA), and
New Construction
Aggregate data provided by DWR for all designations except for new landscapes installed beginning 1/1/2019.

LEF Outdoor Residential Standard or landscape efficiency factor (unitless).

ETo Reference Evapotranspiration (inches per year). Provided annually by DWR.

Peff Effective Precipitation (inches per year). Capped at 25% of total precipitation or a lower value generated by the Cal-SIMETAW model. Provided by DWR.

0.62 Conversion Factor to generate units in gallons per year.

Outdoor Residential Water Budget
The annual outdoor water budget is calculated as follows:

In the most general terms, the outdoor water budget consists of a supplier’s residential landscape area, multiplied by an efficiency standard and a climate factor that’s reflective of a supplier’s unique service area conditions. 3 *For new homes built after the DWR Landscape Area Measurement (LAM) data was generated, the water budgets should be calculated with an LEF of 0.55.

Compliance
Start Date
Irrigable-
Irrigated (II)
July 1, 2025 0.80

0.63 Irrigable-Not -
Irrigated (INI)

0.80until LAM data updated 1.0

1.0 Special
Landscape
Areas (SLA)
New Construction
(post 1/1/2019)*

0.55 0.55
July 1, 2040
July 1, 2035

0.55 1.0
Outdoor Commercial, Industrial, and Institutional Water Budget

0.55 Outdoor Residential Water Budget (cont.)
CII Residential Water Budget (gal/yr) = ((DIM LA - DIM SLA) x LEF) + (DIM SLA x 1.0) x (ETo-Peff)x 0.62
Factor
Definition

DIM LA

DIM SLA
Landscape Area Measurement includes the following landscape types:

Irrigable-Irrigated (II) of connections served by dedicated irrigation meters (DIM) Landscape Area Measurement for CII Special Landscape Area includes the following landscape:

Edible plants
Recreation
Recycled water
Slopes with live vegetation
Ponds or lakes for sustaining wildlife
Plant collections, botanical gardens, and arboretums
Public pools
Cemeteries (build before 2015)
The LEF is an efficiency factor determined by the State Water Board. It is proposed to decrease overtime as presented in the table below.

Example landscape types with associated LEFs from least efficient to most efficient.

N/Aassumes LAM data updated
N/Aassumes LAM data updated
4 Outdoor Commercial, Industrial, and Institutional (CII) Water Budget (cont.) Factor Definition
LEF Outdoor CII Standard or landscape efficiency factor (unitless).

ETo Reference Evapotranspiration (inches per year). Provided annually by DWR.

Peff Effective Precipitation (inches per year). Capped at 25% of total precipitation or a lower value generated by the Cal-SIMETAW model. Provided by DWR.

0.62 Conversion Factor to generate units in gallons per year.

DWR is currently mapping water agencies CII landscape area. This project is expected to be completed over the next few years. Agencies can choose to generate their own CII landscape area measurements or wait and utilize the dataset provided by DWR as a technical resource for measuring their CII landscape area. Suppliers must distinguish CII-MUM area from CII-DIM area. Below are simplified steps to identify and measure CII-DIM landscape area. CalWEP and the California Data Collaborative have a comprehensive guidebook for measuring DIMs available for members.

Water Loss Budget
Compliance
Start Date
Irrigable-
Irrigated (II)
July 1, 2028 0.80

0.63 1.0

1.0 Special
Landscape
Areas (SLA)
New Construction
(post 1/1/2019)*

0.45 0.45
July 1, 2040
July 1, 2035

0.45 1.0 0.45
*Applies to CII-DIM accounts subject to MWELO. See 23 CCR Section 495 (b)(6) 5 The water loss standard is the maximum allowable “real” water loss measured in gallons per connection per day for each supply system in an urban water supplier’s service area. Therefore, a supplier could have multiple water loss standards. The standards are intended to represent cost effective real water loss. Real losses can be defined as the volume of annual leakage due to physical water leakage in a supplier’s distribution system.

Starting July 1st 2028, suppliers will use total Irrigated Irrigable (II) square footage for all DIMs. The CII-DIM LEF is proposed to decrease overtime as presented in the table below Commercial, Industrial, and Institutional (CII) Performance Measures All urban water suppliers will also be required to meet a list of performance measures. These performance measures are intended to enable water-usage benchmarking per CII classification category as well as establish BMPs for indoor and outdoor CII water use regardless of CII-DIM status. A simplified rundown of the CII Performance Measures are as follows:

For more information, please visit: www.calwep.org or email [email protected] 6 It is important to note the following as it relates to the water loss standard:

The water loss standard is unique in that it was originally regulated under prior and independent 2015 legislation – Senate Bill 555 (Wolk, Chapter 679, Statues of 2015). Therefore, compliance can be enforced individually for water loss , unlike other standards within the Framework legislation.

Water loss standards apply to systems with more than 200 connections. Systems with under 200 connections are not subject to a water loss standard if conditions in Water Code Section 980 (ddd) are met.

The State Water Board cannot issue a notice or order to a supplier under the Framework legislation for exceeding the UWUO due solely to water loss budget overages if the State is already taking enforcement action under SB 555. The water loss standard guidelines and requirements are complex with many caveats not covered in this cut sheet. Therefore, it is recommended that a supplier review the entire regulation text for a complete understanding.

Water Loss Budget (gal/yr) = Water Loss Standard x (C or M) x days in the year Equation 2: Annual Water Loss Budget
Where,
C = Number of total service connections
M = Length of the distribution system in miles
The water loss standard is derived by entering a supplier’s system-specific validated baseline water loss audit data and other related data into the Water Loss Economic Model (Model) developed by the State Water Board. The Model calculates the water loss standard based on water use, system characteristics, and economic cost data. The State Water Board provides initial water loss standards for each applicable supplier’s systems on their water loss website. For about half of the State’s urban water suppliers’ systems, the Model cannot calculate a cost-effective water loss standard. In these cases, a supplier’s impacted systems’ water loss standard will revert to baseline loss (average of 2017-2020 water loss audit real loss).

The water loss standard is used to calculate the annual maximum allowed water loss volume (in gallons) per system. This maximum is referred to as the water loss budget. The annual water loss budget is calculated using Equation 2. For suppliers with multiple systems the total water loss budget is equal to the sum all of water loss budgets per system.

Action

Compliance Date

Ongoing Activities

Identify buildings that meet “disclosable buildings” threshold according to CEC and supply building owners information by request.

January 1, 2025

Classification of CII properties with ENERGY STAR Portfolio Manager’s broad categories plus 4 additional categories

July 1, 2027

Maintain 95%, assessed
annually

BMP Choose Your Own Adventure PART I
Track 1: ID top 2.5% CII Users & Top 20% CII Users
Track 2: ID top 2.5% CII Users & Top 20% CII Users in each classification category
Track 3: ID CII Users based on Supplier Defined Thresholds

Track 1: 06/2025
Track 2: 06/2027
Track 3: 06/2029

Maintain 95%, assessed on
annual basis

BMP Choose Your Own Adventure PART II
Track 1 and 2: Top 2.5% CII Users design implement 2 BMPs from each category
Track 1 and 2: Top 20% CII Users design and implement 1 BMP from each category
Track 3: Design and implement 1 BMP from each category
All Tracks:

June 30, 2039

Maintain programs

Identify CII mixed-use meters (MUMs) associated with large landscapes
(large landscape threshold = ½ acre)

Option 1: Identify all
CII MUMs with large
landscapes: July 1,
2027

Option 2: Identify all
CII large landscapes
that exceed their
outdoor water budget
by July 1, 2029

DIM installation or in-lieu technology plus 2 BMPs on large landscapes
(large landscape threshold = ½ acre)

July 1, 2039
Maintain 95%, assessed on
annual basis

6 7
7 Item Number: 14
City Council / Board of Directors
Written Communications
Meeting of: February 17, 2026
Submitted By:

Brenda Hampton, Director of Electric Utility Services

Subject:

Victorville Municipal Utility Service (”VMUS“) Shop/Warehouse Design and Construction Estimate
Recommendation:

That the Honorable City Council award a Consultant/Professional Services Provider Agreement to BFK Architecture + Planning in the amount of $170,000 for the VMUS Shop/Warehouse Design and Construction Estimate, Project CC26-042 (”Project”).

Fiscal Impact:

This action will result in a fiscal impact of $170,000. An additional appropriation is not required. There are sufficient funds available in the Project budget to support this expenditure.

Account Budget FY 2025-2026
4202076-55080-30072 $1,930,000.00

Strategic Plan:

This item reflects Goal E: Invest in Infrastructure - The design and construction of the VMUS Shop/Warehouse will establish a centralized facility for all VMUS parts, materials, and equipment, enhancing the tracking, management, and maintenance of active assets.

Background:

Since the department’s establishment in 2001, VMUS parts, materials, and equipment have been distributed across multiple City facilities at the Southern California Logistics Airport. This decentralized storage has made it challenging to effectively track and monitor active assets and to ensure they are maintained in good working condition while remaining securely stored.
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The design and construction of the VMUS Shop/Warehouse, Project CC26-042, will establish a centralized facility, located on APN 0459-192-58, for all VMUS parts, materials, and equipment, enhancing the tracking, management, and maintenance of active assets. Consolidating these resources will increase the department’s effectiveness and efficiency in responding to customer needs.

Discussion:

The VMUS Shop/Warehouse Design and Construction Project CC26-042 requires the services of a qualified professional or firm with demonstrated experience in the planning, design, and construction of metal shop and warehouse facilities, including all associated design-build processes. On September 23, 2025, a Request for Proposals (RFP) was issued in accordance with City Municipal Code §2.28.200. A pre-proposal meeting and job walk was conducted on October 7, 2025. Proposals were due October 21, 2025, at which time Purchasing staff opened all sealed bids that were received. The bids are summarized as follows:

Contractor Location Bid Amount
BFK Architecture + Planning Pasadena, CA $170,000
TESO Architects, Inc. Upland, CA $248,000
TKDA Bloomington, MN $409,500
TR Design Group, Inc. Riverside, CA $413,957
Through their RFP response, BFK Architecture + Planning demonstrated substantial experience with similar projects and identified additional opportunities to reduce costs, providing a clear benefit to the construction phase. These cost-saving measures will help ensure that funding is maximized and that the project remains on schedule for completion in Fiscal Year 2026-2027.

Therefore, City staff recommends that the City Council approve the Consultant/Professional Services Provider Agreement with BFK Architecture + Planning, in an amount not to exceed $170,000 for the VMUS Shop/Warehouse Design and Construction Estimate, Project CC26-042.

Staff remains available for any questions you may have
Prepared By:

Brenda Hampton, Director of Electric Utility Services
Melissa Wycoff, Management Specialist
Attachments: A. Consultant/Professional Services Agreement with BFK Architecture + Planning
B. Cost Proposal
C. Site Map

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Attachment A
Consultant/Professional
Services Agreement
with BFK Architecture
+ Planning
1 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

CONSULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT

BY AND BETWEEN

THE CITY OF VICTORVILLE

VICTORVILLE MUNICIPAL UTILITY SERVICES
AND

BFK ARCHITECTURE AND PLANNING
FOR

VMUS SHOP/WAREHOUSE DESIGN & CONSTRUCTION ESTIMATE,
PROJECT CC26-042

THIS CONSULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT (hereinafter “Agreement”), dated this __________________ day of ______________, 20__ , for reference purpose only, is made and entered into by and between THE CITY OF VICTORVILLE, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City” , and BFK Architecture and Planning , a California corporation hereinafter referred to as “ Consultant.” City and Consultant are sometimes hereinafter referred to individually as a “Party” and collectively referred to as the “Parties.”

RECITALS:

WHEREAS, the City requires Consultant/Professional Services Provider Agreement for VMUS Shop/Warehouse Design & Construction Estimate; and

WHEREAS, Consultant represents that it is fully qualified to perform the consulting and/or professional services required for performance under this Agreement by virtue of its experience and the training, education and expertise of its principals and its employees; and

WHEREAS, in light of the facts set forth above, the City desires to retain the services of a qualified Consultant to provide, on an independent contractor basis, VMUS Shop/Warehouse Design & Construction Estimate; and

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE

CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS

The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth fully herein.

Section 2. SCOPE OF SERVICES

Consultant shall provide to the City those services set forth in the Scope of Services , attached hereto as Exhibit “A”, and incorporated as part of this Agreement by this reference.

2 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 3. COMPENSATION

The City shall pay to Consultant a sum not to exceed One hundred seventy thousand dollars ($170,000) for faithful performance of the services to be rendered under this Agreement, subject to the Proposal provisions of Section 4, below . No expense reimbursements, including, but not limited to, reimbursements for travel, parking, lodging, and/or meals shall be paid to Consultant unless such expense reimbursements: (i) are specifically provided for and described by nature and type in Exhibit “B”, below; (ii) appear on Consultant’s monthly invoices to City; (iii) are supported by the appropriate receipts and other such documentation as the City shall require; and (iv) are directly related to the Scope of Services to be performed under this A greement. In addition, any and all reimbursements shall be made in accordance with any City policy governing same.

Section 4. CONSULTANT’S COST PROPOSAL

The City shall pay Consultant as provided in the Proposal, attached hereto as Exhibit “B”, and incorporated as part of this Agreement by this reference. The provisions of Exhibit “ B” notwithstanding, in order to receive payments, Consultant shall be required to submit to the City detailed monthly invoices which include, if applicable, a description of all services/tasks performed, the number of hours expended on each service/task, the name of the person performing the service/task, and expense reimbursement information, if any, as required by Section 3, above. Provided that services have been satisfactorily rendered, invoices shall be paid by the City approximately thirty (30) working days following receipt of Consultant’s invoice.

Section 5. RESERVED

Section 6. TERM OF AGREEMENT

This Agreement shall be for an Initial Term commencing on the date of full execution of the Agreement (the “Commencement Date”) and expiring 60 working days after full execution of the contract (the “Termination Date”) , unless terminated earlier pursuant to Section 21 of this Agreement. From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month- to-month basis until terminated pursuant to Section 21 below.

Section 7. INDEPENDENT CONTRACTOR STATUS

It is the express intention of the Parties that Consultant is an independent contractor and not an employee, agent, joint ventures, or partner of the City. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between the City and Consultant or any employee or agent of Consultant . Both P arties acknowledge that Consultant is not an employee for state or federal tax purposes or any other purpose. Consultant shall retain the right to perform services for others during the term o f this Agreement.

Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS OF

CONSULTANT

a. Consultant represents and acknowledges the following:

3 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City.

(3) The services described in this Agreement can be performed without the use of City equipment, materials, tools, or facilities, unless otherwise provided under a separate agreement.

(4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.

(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage, or other such compensation to any person employed by Consultant to perform the services described in this Agreement.

(6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City.

b. The City represents and acknowledges the following:

(1) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.

(2) The City will not hire, supervise, or pay any employees or assistants working for Consultant pursuant to this Agreement.

(3) Nothing in this Agreement shall be interpreted to imply that Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.

(4) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement.

(5) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement.

(6) Unless deemed necessary under certain circumstances, Consultant is not required to perform the services set forth in this Agreement at City Hall or on City-owned property.

(7) Other than attendance at required public meetings and public hearings, and complying with the provisions of the Proposal set forth in Exhibit B and any procedural requirements set forth by law, Consultant is not required to perform the services set forth in this Agreement in any particular order or sequence.

(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.

4 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 9. NOT AGENT OF THE CITY

a. Nothing contained in this Agreement shall be deemed, construed, or represented by the City or Consultant or by any third person to create the relationship of principal and agent.

b. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 10. LICENSES AND PERMITS

Consultant represents that it has obtained and will maintain at all times during the I nitial Term (and during the Option Period, if applicable) of this Agreement all business licenses, including but not limited to a City of Victorville business license, professional licenses or certifications, or permits necessary for performing the services described in this Agreement.

Section 11. STANDARD OF PERFORMANCE; WARRANTY

a. Consultant agrees to perform all services required by this Agreement in a professional and competent manner, in accordance with the degree of skill and diligence which is normally employed by reputable professionals performing similar services under similar conditions in the same or similar locality. Such services shall also be performed in a manner which is reasonably satisfactory to Brenda Hampton, Director of Electric Utility Services, or her designee.

b. By executing this Agreement, Consultant warrants that it:

(1) Has thoroughly investigated and considered the services and work to be performed;

(2) Has investigated the issues regarding the scope of services to be provided;

(3) Has carefully considered how the services and related work should be performed; and

(4) Fully understands the facilities, difficulties and restrictions associated with performance of the services required by this Agreement.

Section 12. FAMILIARITY WITH WORK

Should Consultant discover any latent or unknown conditions materially differing from those inherent in the services or as represented by the City, Consultant shall immediately inform the City of such fact and shall not provide any services, except at Consultant 's risk, until written instructions are received from Brenda Hampton, Director of Electric Utility Services, or her designee.

Section 13. CONFLICTS OF INTEREST

Consultant covenants that it does not have any interest, nor shall it acquire any interest, directly or indirectly, which would conflict in any manner with the performance of Consultant’s services under this Agreement. Consultant further covenants that in the performance of services 5 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

under this Agreement, no officer, employee or agent of Consultant having such interest shall be employed by it. In the event the City determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file such Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the City Clerk. Acquisition or maintenance of a conflicting interest by Consultant may result in termination of this Agreement by the City.

Section 14. COMPLIANCE WITH LAWS

Consultant shall comply with all local, state, and federal laws and regulations applicable to the services to be rendered hereunder, including any rule, regulation, or bylaw governing the conduct or performance of Consultant or its employees, officers, or board members.

Section 15. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement (and during the Option Period, if applicable) , Commercial General Liability Insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by Consultant or its officers, employees, servants, volunteers, and agents and independent contractors.

b. Consultant shall further procure and maintain, at its own expense, during the Initial Term of this Agreement, (and during the Option Period, if applicable), Commercial Vehicle Liability Insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit, covering any vehicle utilized by Consultant or its officers, employees, servants, volunteers, agents and independent contractors in performing the services required by this Agreement.

Section 16. WORKERS' COMPENSATION INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement (and during the Option Period, if applicable), Workers' Compensation Insurance, providing coverage as required by the California State Workers' Compensation Law.

b. If any class of employees employed by the Consultant pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City.

Section 17. PROFESSIONAL LIABILITY INSURANCE

Professional Liability Insurance or Errors and Omissions insurance as appropriate to Consultant’s profession shall be required and written on a policy form specifically designed to provide coverage for and protect against the negligent acts, errors and omissions of the Consultant in the performance of the services required by this Agreement. A minimum limit of One Million Dollars ($1,000,000) per claim and in the aggregate must be provided.

6 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 18. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, all insurance policies, except for the Workers' Compensation, shall be endorsed to name the City and its officers, employees, servants, volunteers, agents and independent contractors, including, without limitation, the City Attorney, as Additional Insureds.

Section 19. WAIVER OF SUBROGATION RIGHTS

Consultant shall require the carriers of all required insurance policies , to waive all rights of subrogation against the City and its officers, employees, servants, volunteers, agents, and independent contractors and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 20. PROOF OF INSURANCE COVERAGE; REQUIRED

ENDORSEMENTS

a. Consultant shall secure from a good and responsible company or companies authorized to transact insurance business in the State of California, the policies of insurance required by this Agreement and furnish to the City Clerk certificates of insurance evidencing the required coverage, and policy endorsements at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.

b. The policies and certificates of insurance shall be endorsed to provide that in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of cancellation for non-payment, ten (10) days advance written notice shall be given.

c. Each policy and certificate of insurance shall be endorsed to provide that the policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.

d. Each policy and certificate of insurance shall be endorsed to provide that the policy will be maintained throughout the Initial Term (and during the Option Period, if applicable), of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 21. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of such termination or suspension. In the event of such 7 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory services rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory services rendered or supplies actually furnished prior to the effective date of termination.

Section 22. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement.

Section 23. INDEMNIFICATION

a. Except as set forth in Subsection b of this Section 23, and to the fullest extent permitted by law, Consultant shall immediately defend, indemnify, and hold harmless the City, its officers, employees, representatives, and agents (the “City Indemnitees”), from and against those actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and reasonable attorneys’ fees, for any personal injuries, deaths, or property damage, including property owned by the City (collectively “Claims”) which may arise out of Consultant's negligence or willful misconduct in the performance of the services described in this Agreement, unless such Claims are proven to be caused by the negligence or willful misconduct of the City Indemnitees.

b. The provisions of this Subsection b apply only in the event that Consultant is a design professional within the meaning of California Civil Code section 2782.8 (“Design Professional”). The term Design Professional, as defined in said section, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordance with the applicable provisions of the California Business and Professions Code.

(1) Notwithstanding the provisions of Subsection a above, to the extent that the services to be provided under this Agreement are those of a Design Professional, Consultant's duty to indemnify, hold harmless, and defend the City Indemnitees shall be limited to the extent that any Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, its officers, agents, employees or subconsultants in the performance of the services described in this Agreement.

(2) In no event shall the costs of defense charged to Consultant exceed the Consultant’s proportionate percentage of fault, except as otherwise set forth in said Civil Code section 2782.8, the provisions of which are incorporated into this Agreement by this r eference.

Nothing in this Subsection b shall be construed to require Consultant to provide indemnification for Claims caused by the active negligence or willful misconduct of the City Indemnitees.

c. The City does not and shall not waive any rights that it may have against Consultant under this Section, because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions of this Section 23 shall apply regardless of whether said insurance 8 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense described herein.

d. The obligation to indemnify and defend, as set forth in this Section 23, is binding on the successors, assigns, or heirs of Consultant and shall survive the expiration or any early termination of this Agreement.

Section 24. REPORTS

Upon request by Brenda Hampton, Director of Electric Utility Services, or her designee, or as otherwise required by this Agreement, including but not limited to, the Scope of Services set forth in Exhibit “A”, Consultant shall prepare and submit reports to the City concerning Consultant's performance of the services required by this Agreement.

Section 25. RECORDS

a. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Brenda Hampton, Director of Electric Utility Services, or her designee, to evaluate the cost and the performance of such services.

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles.

c. Brenda Hampton, Director of Electric Utility Services, or her designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

d. Records and supporting documents pertaining to the use of funds paid to Consultant hereunder shall be retained by Consultant and made available to Brenda Hampton, Director of Electric Utility Services, or her designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 26. RESERVED

Section 27. CONFIDENTIALITY; OWNERSHIP OF WORK

a. Any and all documents and information obtained from the City or prepared by Consultant for the City shall be kept strictly confidential unless otherwise provided by applicable law. All City data, documents and information shall be returned to the City upon termination of the Agreement.

b. Any drawings, specifications, reports, records, documents, or other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of Brenda Hampton, Director of Electric Utility Services, or her designee, or as required by applicable law.

c. Consultant shall not disclose to any other entity or person any information regarding the activities of the City, except with the prior written approval of Brenda Hampton, Director of Electric Utility Services, or her designee, or as required by applicable law.

9 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

d. All original documents, reports, designs, computer files and all other materials prepared by Consultant in the course of performing the services pursuant to this Agreement, whether completed or in progress, are the property of the City and shall be surrendered to the City upon the completion of Consultant’s services or when requested by Brenda Hampton, Director of Electric Utility Services, or her designee. Such materials may be used, reused or otherwise disposed of by the City without the permission of Consultant.

e. Consultant’s covenants under this Section 27 shall survive the termination of this Agreement.

Section 28. PRINCIPAL REPRESENTATIVES

a. Brian Knight, CEO is designated as the principal representative of Consultant for purposes of communicating with the City on any matter associated with the performance of the services set forth in this Agreement.

b. Brenda Hampton, Director of Electric Utility Services, or her designee, shall be the principal representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

c. Either Party may designate another individual as its principal representative by giving written notice of such designation to the other Party.

Section 29. MODIFICATIONS AND AMENDMENTS; EXTRA SERVICES

a. This Agreement may be modified or amended only by a written instrument signed by both Parties.

b. During the I nitial Term, the City may request that the Consultant perform Extra Services. As used herein, "Extra Services" means any services, which are determined by the City to be necessary for the proper completion of VMUS Shop/Warehouse Design & Construction Estimate, Project CC26-042 but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. A written instrument signed by both Parties shall be required to authorize performance of and payment for Extra Services.

Section 30. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.

b. This Agreement contains all of the covenants and agreements between the Parties with respect to the subject matter of this Agreement, and each Party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Agreement.

c. No agreement, statement, or promise with respect to the subject matter of this Agreement, which is not contained in this Agreement, or in a valid modification or amendment to this Agreement, shall be valid or binding on either Party.

10 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 31. AMBIGUITIES

This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted agains t either of them.

Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibit “ B” is attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Consultant/Professional Services Standard Provider Agreement and Exhibit “B” the terms of this Consultant/Professional Services Standard Provider Agreement shall control and nothing set forth in Exhibit “ B” shall be deemed to supersede any of the provisions of this Consultant/Professional Services Standard Provider Agreement.

Section 32. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:

To the City: Brenda Hampton, Director of Electric Utility Services Victorville Municipal Utility Services
City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Consultant: Brian Knight, CEO
BFK Architecture and Planning
1337 Lida Street
Pasadena, CA 91103

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 33. NON-LIABILITY OF CITY OFFICERS AND

EMPLOYEES

No officer or employee of the City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Consultant or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 34. REVIEW BY ATTORNEYS

Each Party hereto has had its attorney(s) review this Agreement and all related documents. Each Party hereto has consulted with its attorney(s) and has negotiated the terms of this Agreement based on such consultation.

11 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 35. WAIVER

a. No waiver shall be binding unless executed in writing by the Party making the waiver.

b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision.

c. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of such provision or any of the remaining provisions of this Agreement.

Section 36. ASSIGNMENT

This Agreement shall not be assigned by either Party without prior written consent of the other Party.

Section 37. CARE OF WORK

The performance of services by Consultant or the payment of money by the City shall not relieve Consultant from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the City, when such incomplete, inaccurate or defective work is due to the negligence of Consultant.

Section 38. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 39. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 40. GENDER

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 41. SEVERABILITY

If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

12 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 42. GOVERNING LAW

The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the Parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 43. DEFAULT

a. Failure or delay by any Party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the Party who is otherwise claimed to be in default by the other Party commences to cure, correct, or remedy the alleged default within fifteen (15) days after receipt of written notice specifying such default and shall diligently complete such cure, correction, or remedy, such Party shall not be deemed to be in default hereunder.

b. The Party claiming that a default has occurred shall give written notice of default to the Party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured Party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein.

c. Any failure or delay by a Party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.

d. In the event that a default by any Party to this Agreement may remain uncured for more than fifteen (15) days following written notice, as provided above, the injured Party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.

Section 44. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercis e by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.

Section 45. VENUE

All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or f orum in San Bernardino County, California.

Section 46. ATTORNEYS’ FEES

In the event any action, suit, or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement, or as a result of any alleged breach of any provision of this Agreement, the prevailing Party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorneys’ fees, from the losing Party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 13 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

Section 47. EFFECTIVENESS OF AGREEMENT

This Agreement shall not be binding upon the City, until signed by the authorized representative(s) of Consultant , approved by the City ’s Risk Manager, and executed by the authorized City personnel or Mayor.

Section 48. REPRESENTATIONS OF PARTIES AND PERSONS EXECUTING

AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 49. COUNTERPARTS

This Agreement 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 this Agreement.

(END OF THIS PAGE)

14 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.

THE CITY OF VICTORVILLE BFK ARCHITECTURE &

PLANNING

By:______________________________ By:__________________________ Elizabeth Becerra, Brian Knight, CEO
Mayor

Dated: ___________________________ Dated:_______________________

ATTEST

By: ______________________________
Jennifer Thompson,
City Clerk

Dated: ___________________________

APPROVED AS TO STANDARD FORM:

By: ______________________________
Andre de Bortnowsky,
City Attorney

Dated: ___________________________

By: ______________________________
Sandra Bostick,
Risk Manager

Dated: ___________________________

15 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

EXHIBIT A

SCOPE OF SERVICES

EXHIBIT A

SCOPE OF WORK

1.1. VMUS Shop/Warehouse Design and Construction Estimate Description of Project and Scope of work.

Scope of work:
• Design Shop/warehouse/field office
• Deliver engineer stamped issued for construction plan sets o Plan sets for:
▪ Overall site layout
▪ Grading and foundation
▪ Steel building, electrical, plumbing
▪ Finished office space
▪ Yard lighting, block (screen) wall, landscaping
▪ Line of site study for screen walling
▪ Water, sewer, and communications service connections
• Provide engineers construction cost estimate
Construction Project Description:

Steel Building:
50’ x 100’, 16’ tall at roof line, on a 70’x100’ concrete pad (20’ concrete apron on front of building) Shop/Warehouse Area:
• Shop lighting
• Wall outlets on interior and exterior of shop walls
• Exterior building lighting
• Hose bibs
• Fully Insulated.
• (6)-14’ tall by 12’ wide roll up doors with electric openers • (4) – Exit man doors
• (2) – Evaporative coolers
• Shop sink with floor drain
• Sky lights
Office Space:
• 15’ x 50’ finished office space 9’ ceiling
• (2)- 9’x7’ ADA bathrooms.
• (2) – Minisplit AC units
• 5’x 9’ closet
16/ Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042 • Finished kitchen countertop with sink and cabinets
• (2) – Exit doors out of building and 1 – into shop area • (2) – windows
• Optional small mezzanine storage above office area.

Yard:
• Grade and level lot
• Add gravel to remainder of lot
• Fire road through property
• Paved parking spots
• Electric gate openers on (2) – 20’ double sing gates
• Yard lighting
• Block screen wall, with barb wire
17/ Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042 18 Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042

EXHIBIT B
C

OST PROPOSAL
See Attachment

CITY OF VICTORVILLE

PROJECT NUMBER AND NAME: ________________________________ COS

T PROPOSAL SHEET
TO THE CITY COUNCIL OF THE CITY OF VICTORVILLE, CALIFORNIA:

The undersigned declares he has carefully examined the locations of the proposed work, the Scope of Services, and Contract Documents; and being familiar with all the conditions surrounding the work. All of the aforementioned shall be done in accordance with said Scope of Services and all applicable addenda.

ITEM # DESCRIPTION TOTAL AMOUNT
1 The City of Victorville is seeking design services from a qualified architectural or engineering firm per Scope of Work provided.

T OTAL AMOUNT $
All rates sub
mitted must be all-inclusive and final. The City will not pay any separate costs for travel, lodging, per diem, printing, shipping, etc. Provide breakdown on a separate sheet. ** Consultant can use their own cost sheets but make sure to include this page with your signature.

ESTIMATED LUMP SUM GRAND TOTAL COST TO COMPLETE THE PROJECT BASED ON THE SCOPE OF WORK PROVIDED IN WORDS:

Co
nsultant’s Name:____________________________________________________________ Company Name:________________________________________________________________ Phone:___________________ Fax:___________________ Email:_________________________ Name:_________________________________________________________________________ _____________________________________________________________________________ Signature
Tit
le D
ate
OWNER 10.21.2025
CC26-042 SHOP
170,000
170,000

ONE HUNDRED SEVENTY THOUSAND AND ZERO CENTS
BFK ARCHITECTURE + PLANNING

BRIAN F KNIGHT ARCHITECT INC
(626) 823-0150 N/A [email protected]

BRIAN KNIGHT
Brian Knight
Digitally signed by Brian Knight
DN: C=US, [email protected], O="BFK Architecture + Planning", OU=Design, CN=Brian Knight
Date: 2025.10.19 09:47:34-07'00'

EXHIBIT B

COST PROPOSAL
19/ Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042 Architect (prime) 52.65% $89,500.00
Civil Engineer 9.47% $16,100.00
Structural Engineer 14.21% $24,150.00
MEP (Mechanical, Electrical, Plumbing) 18.94% $32,200.00 Landscape / Cost Estimating / Misc 4.74% $8,050.00
TOTAL A/E FEES $170,000.00

EXHIBIT B

COST PROPOSAL
20/ Consultant/Professional Services Provider Agreement/BFK ARCHITECTURE & PLANNING/PROJECT CC26-042 Attachment B
Cost Proposal
CITY OF VICTORVILLE PROJECT NUMBER AND NAME: ________________________________ COST PROPOSAL SHEET TO THE CITY COUNCIL OF THE CITY OF VICTORVILLE, CALIFORNIA: The undersigned declares he has carefully examined the locations of the proposed work, the Scope of Services, and Contract Documents; and being familiar with all the conditions surrounding the work. All of the aforementioned shall be done in accordance with said Scope of Services and all applicable addenda. ITEM #DESCRIPTIONTOTAL AMOUNT1 The City of Victorville is seeking design services from a qualified architectural or engineering firm per Scope of Work provided. TOTAL AMOUNT $ All rates submitted must be all-inclusive and final. The City will not pay any separate costs for travel, lodging, per diem, printing, shipping, etc. Provide breakdown on a separate sheet. ** Consultant can use their own cost sheets but make sure to include this page with your signature. ESTIMATED LUMP SUM GRAND TOTAL COST TO COMPLETE THE PROJECT BASED ON THE SCOPE OF WORK PROVIDED IN WORDS: Consultant’s Name:____________________________________________________________ Company Name:________________________________________________________________ Phone:___________________ Fax:___________________ Email:_________________________ Name:_________________________________________________________________________ _____________________________________________________________________________ Signature Title Date OWNER10.21.2025 Architect (prime) 52.65% $89,500.00Civil Engineer 9.47% $16,100.00Structural Engineer 14.21% $24,150.00MEP (Mechanical, Electrical, Plumbing) 18.94% $32,200.00Landscape / Cost Estimating / Misc 4.74% $8,050.00TOTAL A/E FEES $170,000.00 Attachment C
Site Map

Item Number: 15
City Council / Board of Directors
Written Communications
Meeting of: February 17, 2026
Submitted By:

Jennifer Thompson, City Clerk

Subject:

Discussion and possible action to name the new Victorville Library after former Council Member and City Manager James L. Cox
Recommendation:

Any action is at the discretion of Your Honorable City Council.

Fiscal Impact:

There is no fiscal impact associated with this item.

Background:

At the City Council meeting of February 3, 2026, it was moved by Mayor Becerra, with unanimous approval, to agendize an item for discussion and possible action, to discuss the possibility of naming the new Victorville Library after former Council Member and City Manager James L. Cox. Council Policy CP-83-3 adopts the criteria for the naming for City parks and facilities following the priority listed below:

1. Geographical location

2. Historical features

3. Community contributions by individuals

4. Other events
Discussion:

This item is being presented to Council so that Council can further discuss the possibility of naming the new Victorville Library after former Council Member and City Manager James L. Cox.

Staff remains available for any questions or comments you might have.

Prepared By:

Jennifer Thompson, City Clerk
4 0
1 7
Attachments: A. Council Policy CP-83-3

ATTACHMENT A

COUNCIL POLICY
CP-83-3