MEMORANDUM OF UNDERSTANDING
No. M-022-26
BETWEEN THE
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
AND CITY OF VICTORVILLE
FOR A SCP-ATS PROJECT GRANT
(SCAG Project/OWP No. 225-4955.01)
This Memorandum of Understanding (“MOU”) is entered into by and between the Southern California Association of Governments (“SCAG”) and City of Victorville (“Sub-Recipient”), for a SCP-ATS Project Grant. SCAG and Sub-Recipient may be individually referred to as “Party” and collectively as “Parties.”
RECITALS
WHEREAS, SCAG is the federally designated MPO for Southern California, primarily responsible for the development of a Regional Transportation Plan/Sustainable Communities Strategy (“RTP/SCS” also known as “Connect SoCal”) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside, and Ventura;
WHEREAS, SCAG’s 2024 Sustainable Communities Program – Active Transportation & Safety (“SCP- ATS”) is a grant program that provides technical assistance to support implementation of Connect SoCal by strengthening partnerships with local agencies and strategic partners who are responsible for land use and transportation decisions to help the region achieve its unified goals;
WHEREAS, SCP-ATS, which is partially funded by the Regional Early Action Planning Grants Program of 2021 (“REAP 2.0”) , was established with a principal goal to make funding available to Metropolitan Planning Organizations (“MPO”) and other regional entities for transformative planning and implementation activities that meet housing and equity goals, reduce Vehicle Miles Traveled per capita, and advance implementation of the region’s Sustainable Communities Strategy or Alternative Planning Strategy, as applicable;
WHEREAS, the California Department of Housing and Community Development (“HCD”) , which administers REAP 2.0 in accordance with Health and Safety Code sections 50515.06 t hrough 50515.10 (“Statutes”) and REAP 2.0 guidelines for MPO applicants released by HCD pursuant to the Statutes (“REAP 2.0 Guidelines”), awarded REAP 2.0 funds to SCAG;
WHEREAS, SCP-ATS is partially funded by a grant received from the California Transportation Commission (“CTC”) Active Transportation Program - Cycle 7 (“ATP Cycle 7”) and awarded by the California Department of Transportation (“Caltrans”), under Grant Agreement Numbers ATPL-6049(042) and ATPL-6049(043) and its Master Agreement Number 07-6049S21, to fund specific types of planning, non-infrastructure and quick build projects that implement regional priorities and expand the reach of regional programs;
WHEREAS, as applicable, ATP Cycle 7 grant funds are subject to applicable Caltrans requirements for architectural and engineering (A&E) projects;
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WHEREAS, SCP-ATS is partially funded by the Federal Highway Administration (“FHWA”), an agency of the U.S. Department of Transportation’s (“USDOT”) , through the Fiscal Year 2023 Safe Streets and Roads for All (“SS4A”) Grant Program, which awarded SS4A funds to SCAG to implement its Regional Safety Action Plan , to be informed by community -driven quick-build demonstrations and other safety initiatives, including awareness campaigns, community grants, and pop-up demonstrations;
WHEREAS, this MOU may be funded through various funding sources, and may be subject to requirements imposed by USDOT/FHWA, CTC/Caltrans and /or HCD (collectively, “Awarding Agencies”) as provided in Exhibit B (“Funding Requirements”);
WHEREAS, SCAG’s Regional Council adopted the SCP -ATS Program Guidelines (“Program Guidelines”) on June 6, 2024, and a competitive Call for Projects was released on July 8, 2024;
WHEREAS, SCAG’s Regional Council adopted the first revised guidelines on September 5, 2024;
WHEREAS, SCAG’s Regional Council adopted the second revised guidelines on September 5, 2025;
WHEREAS, Sub-Recipient, eligible for funds under the SCP-ATS and Program Guidelines, developed and submitted a proposed quick-build project (“Project”) for the SCP-ATS;
WHEREAS, SCAG reviewed the Project and approved the Project to receive funding after determining the Project to be consistent with the : 1) SCP-ATS Program Guidelines; 2) REAP 2.0 Statutes and Guidelines; 3) SS4A Grant Program Terms and Conditions ; and/or 4) Caltrans Local Assistance Procedures Manual (“LAPM”);
WHEREAS, Sub-Recipient will commit to the Project and provide SCAG as-needed support, cooperation, and guidance; and
WHEREAS, the purpose of this MOU is to set forth the respective roles, responsibilities and obligations of the Parties with respect to the Project.
NOW THEREFORE, IT IS MUTUALLY AGREED THAT:
1. Recitals and Exhibits
The Recitals and all exhibits referred to in this MOU are incorporated herein by this reference and made a part of the provisions of this MOU.
2. Term
The Term of this MOU shall be effective as of the last date on which the document is executed by all Parties (“ Effective Date”) and continue until June 30, 2028 , (“Completion Date”). Time is of the essence in the performance of services under this MOU. For this MOU, the expenditure deadline for 2023 SS4A funds is June 30, 2028.
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3. Scope of Work and Sub-Recipient’s Responsibilities
a. Sub-Recipient shall be responsible for the complete and timely performance of the Project set forth in the “Scope of Work,” attached as Exhibit A. The Project shall commence when SCAG issues a written notice to proceed.
b. Sub-Recipient shall fully comply with all Funding Requirements set forth in Exhibit B. c. Sub-Recipient shall be responsible for carrying out each of the following for the Project:
1. Fully cooperate with SCAG to procure and manage a Consultant to design and evaluate the Project.
2. Fully cooperate with SCAG and SCAG’s Consultant to support design of the Project.
3. Construction of the Project.
4. Project remains installed for a minimum of six (6) months before evaluation.
5. Fully cooperate with SCAG and SCAG’s Consultant to support evaluation of the Project.
Additional guidance on quick -build materials, designs, and project requirements can be found in the ATP Cycle 7 Guidelines and the ATP Quick-Build Supplemental Guidance.
d. Interim deliverables and tasks, including budgets and schedules, required to implement the Scope of Work shall be documented using the “Scope of Work Approval Form,” attached as Exhibit F (“SAF”). The SAF must be signed by SCAG Project Manager, SCAG Depart ment Manager, SCAG Deputy Director or their designee, and Sub-Recipient prior to the performance of the work outlined in the SAF. The SAF may be signed by way of a manual or authorized digital signature, or a signature stamp. The SAF may be used to docume nt interim deliverables and interim deliverable budgets and schedules but may not be used to modify the deliverables and budget noted in this MOU. The SAF may be amended subject to approval by SCAG. No amendment to the SAF shall be valid unless made in wri ting and signed by the Parties. If there is a conflict between the SAF and this MOU, this MOU shall prevail.
e. To design and evaluate the Project, SCAG will use $130,000 of the grant funds to procure and manage a Consultant through an on -call bench in accordance with applicable procurement requirements. For purposes of this MOU, the term “ Consultant(s)” shall hereinafter refer to all entities that SCAG procures, manages, or otherwise enters into contracts or agreements with, in furtherance of designing and evaluating the Project regardless of the timing, nature of service/work provided or type of organization.
f. To construct the Project, Sub-Recipient will use up to $373,700 of the grant funds to procure and manage a Contractor in accordance with applicable procurement requirements . For purposes of this MOU, t he term “Contractor(s)” shall hereinafter refer to all entities that Sub -Recipient procures, manages, or otherwise enters into contracts or agreements with, in furtherance of constructing the Project regardless of the timing, nature of service/work provided or type of organization. Contractor(s) does not include SCAG’s separately retained Consultants.
g. Before issuing any Invitation for Bid or other procurement(s) for construction of the Project (“IFB”), Sub-Recipient shall provide SCAG with a copy of the IFB for review and approval. In Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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addition, Sub -Recipient shall provide SCAG with a copy of the Contractor contract(s) and Notice(s) to Proceed within 30 days of execution or issuance of each document.
4. Project Management
a. All work under this MOU shall be coordinated with SCAG and Sub-Recipient through the Project Managers.
SCAG Sub-Recipient
Anna Van
SCAG Project Manager
(213) 236-1814
[email protected]
Harry Mayo
Senior Civil Engineer
760-243-6351
[email protected]
b. SCAG reserves the right to change this designation. Sub-Recipient reserves the right to change this designation upon written notice to SCAG.
5. Funding
a. Sub-Recipient’s total SCP -ATS award amount is $503,700 (“Grant Funds”) comprised of the following Awarding Agencies and amounts:
a. 2023 SS4A, in an amount not to exceed $503,700. Of these Grant Funds, $130,000 will be retained by SCAG to provide project technical assistance and up to $373,700 will be pass- through funding to the Sub-Recipient.
b. Total costs incurred for Consultant ’s services, if any, and Sub-Recipient’s construction of the Project shall not exceed the Grant Funds. SCAG shall not be obligated to make payments for any costs that exceed the Grant Funds. SCAG shall not be obligated to pay for any increase in costs which exceeds the budget included in this MOU.
c. SCAG shall make payments to Sub-Recipient only for work performed as part of the Scope of Work, as outlined in the most current fully executed SAF, consistent with the Program Guidelines and Awarding Agencies funding requirements.
d. SCAG reserves the right, in its sole discretion, to discontinue funding the Project and/or terminate this MOU as described in Section 17.
e. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agenc ies, to be ineligible or otherwise unallowable, shall be repaid by Sub-Recipient within thirty (30) calendar days of Sub- Recipient receiving notice or a written demand for reimbursement from SCAG. Such repayment may include interest, penalties, or related fees, as determined by SCAG, the Awarding Agencies, State or Federal authorities or cognizant agenc ies, their designees, or any other duly authorized agencies. Should Sub-Recipient fail to reimburse unallowable costs due to SCAG within thirty Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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(30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold and/or off-set future payments to Sub-Recipient.
6. Invoices
a. SCAG’s contribution to the Project shall be made on a reimbursement basis to Sub-Recipient.
Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred and paid costs may not exceed the Project’s budget set forth in this MOU and the most current fully executed SAF. All invoices submitted to SCAG for payment shall be e -mailed to [email protected] (file cannot exceed 10MB) and copy the SCAG Program Manager. On all invoices submitted to SCAG for the Project, the Project Number (OWP No. 225- 4955.01) shall be referenced.
b. Invoices shall be submitted promptly, no later than sixty (60) days after the date services are completed and accepted. Sub-Recipient shall submit an invoice to SCAG using the electronic “Invoice Template” in accordance with the invoice submittal instructions and requirements noted in Exhibit C. Invoices must be submitted in both PDF format and Excel file format. Invoices shall contain sufficient information to confirm that the services have been performed and can be paid.
As noted in the Invoice Template, all invoiced costs must be substantiated by providing documented support for the expense incurred, such as copies of payroll reports, paid invoices, associated deliverables, and proof of payment. The invoice shall include, in narrative form, a description of services performed by the Sub-Recipient’s staff and Contractor as well as progress toward completion of tasks related to the Project for the invoiced period. The invoice shall be signed by the Sub -Recipient. SCAG shall review invoices for compliance wi th this MOU. If SCAG determines that an invoice is compliant with this MOU, SCAG shall approve the invoice and issue payment to the Sub-Recipient. If SCAG determines that an invoice is not compliant with this MOU, SCAG may withhold and/or off-set future payments(s) to the Sub-Recipient.
c. SCAG shall reimburse the Sub-Recipient as promptly as SCAG’s fiscal procedures permit, using Electronic Fund Transfer, available at: ACH Vendor Payment Authorization Form, upon receipt of itemized invoices submitted in accordance with this MOU. The Sub-Recipient shall complete the ACH Vendor Payment Authorization Form and email it to [email protected], prior to executing this MOU.
d. Only construction and construction material costs are reimbursable. Costs incurred outside of the approved procurement for construction must be approved in advance by SCAG to be eligible for reimbursement. Subrecipient labor and overhead costs are not reimbursable under this MOU.
7. Reporting
a. At any time during the term of this MOU, SCAG may request additional information, as needed, to demonstrate satisfaction of all requirements identified in the MOU and the most current fully executed SAF.
b. Sub-Recipient shall submit quarterly progress reports that include, in narrative form, a description of services performed by Sub-Recipient’s staff and Contractor(s)’ staff along with progress toward the completion of Project-related tasks.
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c. If Sub -Recipient elects to design and evaluate the Project , Sub-Recipient may be required to provide additional progress reports during the design and evaluation of the Project.
d. Within 30 days following the completion of the Project, Sub-Recipient shall submit a Project Completion Report in a format reasonable acceptable to SCAG’s Project Manager. The Project Completion Report shall include photographs of project layouts and a narrative on project outcomes and lessons learned.
e. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 225-4955.01).
8. Accounting
a. Sub-Recipient shall establish and maintain an accounting system and reports that proper ly accumulate incurred Project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (“GAAP”), enable the determination of incurred costs as interim points of completion, and provide support for payment vouchers and invoices.
b. Sub-Recipient shall establish a separate ledger account for receipts and expenditures of Grant Funds and maintain expenditure details in accordance with the Scope of Work as outlined in the most current fully executed SAF.
c. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive procurement bid process and completed procurements, and financial records of expenditures incurred during the course of the Project in accordance with GAAP.
d. Sub-Recipient agrees that (1) the Contract Cost Principles and Procedures, 48 Code of Federal Regulations (CFR), Federal Acquisition Regulations System, Chapter 1, Subchapter E, Part 31, et seq. (Office of Management and Budget Circular A-87 Revised, “Cost Principles for State, Local, and Indian Tribal Governments), 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, and applicable ATP program cost guidance shall be used to determine the acceptabil ity of individual project cost items; and (2) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Sub-Recipient and every Contractor receiving Project funds under this MOU shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards.
9. RESERVED
10. Work Products
a. For purposes of this MOU, “Work Products” shall mean all deliverables created or produced under this MOU including, but not limited to, all deliverables conceived or made either solely or jointly with others during the term of this MOU and during a period of six months after the termination thereof, which relates to the Project. Work Product s includes all deliverables, inventions, innovations, improvements, or other works of authorship , the Sub-Recipient or its Contractor(s) may conceive of or develop in the course of this MOU, whether or not they are eligible for patent, Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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copyright, trademark, trade secret or other legal protection. Work Products shall not include real property or capital improvements, both interim and permanent.
b. If Sub-Recipient elects to design the Project, Work Products shall not include plans, specifications, and estimates (PS&E) package that are developed by the Sub-Recipient. However, Work Product shall include all technical reports , studies, research, analysis, investigation s, and data that are authored by Sub-Recipient.
c. SCAG shall own all Work Products and may, at its sole discretion, grant to Sub-Recipient a perpetual royalty-free, non-assignable, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Project and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products will be at Sub-Recipient’s sole risk and without liability or legal exposure to SCAG.
11. Amendments
No amendment or variation of the terms of this MOU shall be valid unless made in writing and signed by the Parties. If an amendment is to become effective before the date of full execution by the Parties, the effective date of such amendment shall be no earlier than the date that SCAG received the request.
12. Notices
Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other Party by the Party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses:
SCAG Sub-Recipient
Cindy Giraldo
Chief Financial Officer
Southern California Association of Governments
900 Wilshire Blvd., Suite 1700
Los Angeles, CA 90017
(213) 630-1413
[email protected]
Fredy Bonilla
City Engineer
City of Victorville
14343 Civic Drive PO Box 5001
Victorville, CA 92393-5001
760-955-5170
[email protected]
The Parties reserve the right to change this designation.
13. Insurance
a. Sub-Recipient, at their own expense, shall procure and maintain policies of insurance, or provide evidence of self-insurance, of the types and amounts below, for the duration of the MOU, excluding the design and evaluation of the Project. The policies shall state they afford primary coverage.
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Insurance Type Requirements Limits
General Liability Commercial General
Liability insurance with
coverage at least as broad as
Insurance Services Office
form CG 00 01.
Not less than $1,000,000 per occurrence,
$2,000,000 general aggregate, for bodily injury,
personal injury, and property damage. The policy
must include contractual liability that has not
been amended. Any endorsement restricting
standard ISO “insured contract” language will
not be accepted.
Automobile
Liability
Automobile insurance at
least as broad as Insurance
Services Office form CA 00
01. Covering bodily injury and property damage for
all activities of the Sub-Recipient arising out of or
in connection with work to be performed under
this MOU, including coverage for any owned,
hired, non-owned, or rented vehicles, in an
amount not less than $1,000,000 combined single
limit for each accident.
Workers’
Compensation/
Employer’s Liability
Workers’ Compensation
insurance as required by the
State of California and
Employer’s Liability
Insurance. Not required for
sole proprietors or Sub-
Recipient with no
employees.
Including Occupational Diseases in accordance
with California Law and Employers’ Liability
Insurance with a limit of not less than $1,000,000
each accident.
Builders Risk Upon commencement of
construction and with
approval of SCAG, Sub-
Recipient shall obtain and
maintain builder’s risk
(course of construction) for
the entire duration of the
Project. Not required for
Projects without
construction.
Sub-Recipient shall purchase and maintain
property insurance written on a builder’s risk
“Special Form Cause of Loss” or equivalent
policy form in an amount not to exceed amount
of the Contract, plus the cost of materials supplied
or installed by others on a full replac ement cost
basis. The Builder’s Risk policy shall include a
soft cost endorsement that covers soft costs equal
to twenty percent (20%) of the Contract’s full
value. Soft costs are defined as certain expenses,
in addition to labor and materia ls, required to
complete the Project that has been delayed due to
unexpected physical damage and include, but are
not limited to, the following: legal/accounting
fees, design or other professional fees, financing
costs, taxes, general administration, lease
expenses, permit fees and insurance premiums.
This insurance shall include the interests of the
Additional Insureds as named below, Sub-
Recipient and the Contractors of every tier on the
Project as insureds. The insurance shall cover
without limitation, l oss or damage to the Work
arising from the perils covered under “ Special
Form Cause of Loss” form coverage including,
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without duplication of coverage for theft, fire,
lightning, explosion, or hail, smoke, aircraft or
vehicles, riot or civil commotion, vandalism,
malicious mischief, collapse, earthquake, flood,
windstorm, false -work, testing and delay of
startup, temporary buildings, property in transit
and while stored at a temporary location, debris
removal including demolition occasioned by
enforcement of any applicable legal
requirements, and shall cover reasonable
compensation for Sub-Recipient’s services and
expenses required as a result of such loss. During
the Project construction period, Sub-Recipient
and its Contractors shall mutually waive all rights
of recovery against each other and against the
Additional Insureds identified below for damages
caused by fire or other perils covered by the
Builders Risk “Special Form Cause of Loss”
insurance. All applicable po licies of insurance
covering the Work or the property of the Sub-
Recipient or Contractor shall be endorsed to
provide a waiver of subrogation in favor of the
Additional Insureds identified below, Sub-
Recipient and all Contractors of every tier.
Further, Sub-Recipient hereby releases, and shall
cause its Contractors to release, the Indemnitees
identified in section 14 from any and all claims,
losses and damages caused by fire or other perils
covered by the Builders Risk “Special Form
Cause of Loss” insurance. There shall be no
deductible or self -insured ret ention exceeding
$10,000.00 p er loss, other than earthquake or
flood which may have deductible or self -insured
retentions not exceeding $50,000.00. The policy
may have sublimits not less than the following:
Earthquake $5,000,000.00 Flood $1,000,000.00
Pollution Liability Coverage shall provide for
liability arising out of
sudden, accidental, and
gradual pollution, and
remediation. Not required
for Projects without
construction.
The policy limit shall be no less than $1,000,000
per claim and in the aggregate. All activities
contemplated in this MOU shall be specifically
scheduled on the policy as “covered operations.”
The policy shall provide coverage for remediation
of the site i n the event of an environmental
contamination event arising out of the materials,
supplies, products, work, operations, or
workmanship.
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Products/Completed
Operations
Coverage
Coverage shall extend a
minimum of three (3) years
after project completion. Not
required for Projects without
construction.
Coverage shall be included on behalf of the
insured for covered claims arising out of the
actions of independent Contractors. If the insured
is using Contractors, the Policy must include
work performed “by or on behalf” of the insured.
Policy shall contain no language that would
invalidate or remove the insurer’s duty to defend
or indemnify for claims or suits expressly
excluded from coverage. Policy shall specifically
provide for a duty to defend on the part of the
insurer. SCAG, its officials, officers, a gents, and
employees, shall be included as additional
insureds under the Products and Completed
Operations coverage.
b. Higher Limits: no representation is made that the minimum insurance requirements of this MOU are sufficient to cover the indemnity or other obligations of Sub-Recipient under this MOU.
c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
i. SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of Sub-Recipient; products and completed operations of Sub-Recipient; premises owned, occupied or used by Sub-Recipient; or automobiles owned leased, hired or borrowed by Sub -Recipient. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials, and employees.
ii. For any claims related to this Project, Sub-Recipient’s insurance coverage shall be primary insurance as respects SCAG, its officials, and employees. Any insurance or self-insurance maintained by SCAG shall be excess of Sub-Recipient’s insurance and shall not contribute with it.
iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials, and employees.
iv. Sub-Recipient’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
d. The Workers’ Compensation and Employer’s Liability policies shall include a waiver of subrogation endorsement in favor of SCAG, its, officials, employees, and volunteers.
e. Any deductibles or self-insured retentions in amounts over $10,000 must be declared to and approved by SCAG.
f. Insurance is to be placed with California admitted insurers with a current A.M. Best’s rating of no less than A and be admitted, unless otherwise approved by SCAG.
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g. Sub-Recipient shall furnish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf . All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, Sub-Recipient shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.
h. Sub-Recipient agrees to ensure that its Contractor(s) provide the same minimum insurance coverage and endorsements required of Sub -Recipient. Sub -Recipient agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. However, in the event Sub -Recipient’s Contractor(s) cannot comply with this requirement, which proof must be submitted to SCAG, Sub- Recipient shall be required to ensure that its Contractor(s) provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Contractor(s) scope of work and services, with limits less than required of the Sub -Recipient, but in all other terms consistent with the Sub-Recipient’s requirements under this MOU. This provision does not relieve Sub-Recipient of its contractual obligations under the MOU and/or limit its liability to the amount of insurance coverage provided by its Contractor(s). This provision is intended solely to provide Sub-Recipient with the ability to utilize Contractor(s) who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of Sub - Recipient under this MOU given the limited scope of work or services provided by the Contractor(s). Sub-Recipient agrees that upon request, all agreements with Contractor(s) will be submitted to SCAG for review.
14. Indemnification
a. Sub-Recipient assumes all risk of injury to its employees, agents, and Contractor(s), including any loss or damage to property, in connection with this MOU.
b. When the law establishes a professional standard of care, Sub-Recipient shall, to the fullest extent permitted by law, indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from all allegations, claims, liabilities, damages, and expenses, including attorney’s fees arising out of or related to the Project or this MOU. If Sub-Recipient elects to design and evaluate the Project , Sub -Recipient shall be solely responsible and liable for all design and evaluation activities along with the accuracy and completeness of any design and evaluation deliverables.
c. For all other services, Sub-Recipient shall indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from all allegations, claims, liabilities, damages, and expenses, including attorneys’ fees, arising out of or related to the Project or this MOU, except to the extent caused by the intentional or willful misconduct of SCAG.
d. Sub-Recipient shall indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from any allegations, claims, liabilities, damages, and expenses, including attorneys’ fees, arising out of or related to any Intellectual Property or Work Produc ts provided under this MOU that infringes or misappropriates the rights of any third party, including without Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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limitation any patent, copyright, trade secret, or trademark right.
e. These indemnification obligations in this Section are independent of any insurance coverage and are not limited by any insurance policy limits.
15. Disputes
Any dispute concerning a question of fact arising under this MOU that is not disposed of by agreement shall be decided by SCAG’s Project Manager who may consider any written or verbal evidence submitted by Sub-Recipient. The decision of the Project Manager , issued in writing, shall be conclusive and binding on the Parties on all questions of fact considered and determined by the Project Manager. Neither the pending of a dispute nor its consideration by the Project Manager will excuse Sub-Recipient from full and timely performance in accordance with the terms of this MOU.
16. Noncompliance
a. In the event of nonperformance or noncompliance with any requirement of this MOU, including but not limited to Project eligibility, schedule, deliverables, or milestone timelines, as outlined in the most current fully executed SAF, SCAG may terminate this MOU and require repayment of Grant Funds, including all applicable Consultant fees related to the Project.
b. Notwithstanding the provisions set forth above, or any other provision contained in this MOU, no remedy conferred by any of the specific provisions of this MOU or in the most current fully executed SAF, is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy existing at law or in equity or by statute or otherwise.
17. Termination of MOU
a. Termination for Cancellation or Reduction in Funding . In the event an Awarding Agency terminates or cancels funding to SCAG that supports this MOU, whether in whole or in part, SCAG reserves the unilateral right to terminate this MOU immediately upon written notice to Sub - Recipient. In such event, this MOU shall be deemed terminated and SCAG shall be relieved of any and all obligation under this MOU as of the effective date of the Awarding Agency’s termination or cancelation of funding. In the event an Awarding Agency reduces funding to SCAG, SCAG shall have the unilateral right to stop work, proportionally reduce funding to Sub-Recipient, or terminate this MOU, in whole or in part, upon written notice to Sub-Recipient.
b. Termination for Convenience. Either Party may terminate this MOU at any time by giving written notice to the other party of such termination at least thirty (30) calendar days before the effective date of such termination. Should SCAG terminate the MOU for convenience, upon receipt of the notice of termination, Sub -Recipient shall immediately take action to avoid incurring any additional obligation costs or expenses except as may be necessary to terminate its activities or the activities of its Contractor(s). SCAG shall pay Sub -Recipient its reasonable and allowable costs through the effective date of termination and is not liable for any expenses after termination, Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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including any costs associated with Contractor(s). In such event, all finished or unfinished Work Products shall be provided to SCAG.
c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill its obligations under this MOU, or if either Party violates any of the covenants, terms, or stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU . In the event that SCAG invokes this termination for cause provision, Sub -Recipient shall reimburse SCAG for all funds provided for the Project and all finished or unfinished Work Products shall be provided to SCAG at its option.
18. Records Retention
a. Subject to longer retention periods in the Funding Requirements, Sub-Recipient and its Contractor(s) shall maintain and make available, in accordance with Section 19 of this MOU, all source documents, books and records connected with the Project, documentation of its normal procurement policy and competitive procurement bid process and completed procurements related to the Project, all work performed under this MOU, all evidence of environmental clearance, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five (5) years after termination of this MOU. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats.
b. Subject to longer retention periods in the Funding Requirements, if any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained and made available by Sub - Recipient and its Contractor(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) termination of this MOU, whichever is later.
19. Monitoring and Audits
a. SCAG may monitor expenditures and activities of Sub-Recipient and its Contractor(s) as SCAG deems necessary to ensure compliance with the MOU and the Funding Requirements of the Awarding Agencies including but not limited to the LAPM, 2 CFR Part 200, and 48 CFR Part 31, as applicable.
b. At any time during the term of this MOU, SCAG, the Awarding Agencies , State or Federal authorities or cognizant agenc ies, their designees, or any other duly authorized agencies may perform or cause to be performed a financial audit of any and all phases of the Project. At their request, Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant.
c. Sub-Recipient agrees that SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made and furnished upon request at no cost.
d. If Sub -Recipient elects to design and evaluate the Project, Sub -Recipient may be subjected to additional monitoring during the design and evaluation of the Project.
e. Sub-Recipient agrees to permit SCAG, the Awarding Agencies , State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other materia l that may be relevant to a matter under investigation for the purpose of determining compliance with this MOU, the Program Guidelines, the Funding Requirements of the Awarding Agencies, or applicable state and federal laws, rules , and regulations.
f. If there are audit findings from any audit, Sub -Recipient must submit a detailed response acceptable to SCAG for each audit finding within ninety (90) days of the audit finding report.
20. RESERVED
21. Compliance with Laws, Rules, and Regulations
Sub-Recipient agrees to comply with all applicable federal and state laws (as set forth in the Funding Requirements) local laws, ordinances, codes and regulations and orders of public authorities as well as all applicable legal authority regarding construction standards.
22. Public Works and Construction
Without limiting the generality of Section 2 1, Sub-Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following:
a. Labor Code Requirements
i. Sub-Recipient is hereby put on notice that the Project under the MOU may qualify as a public works project and Sub-Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages. Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time-to-time.
ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body.
iii. If Sub-Recipient or its Contractor(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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(“DIR”) in order to be compliant with the law. Neither Sub-Recipient nor its Contractor(s) may work on a public works project without a current and active DIR registration.
iv. In the event that Sub-Recipient or its Contractor(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub -Recipient and its Contractor(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub -Recipient and its Contractor(s) shall ensure compliance with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work.
v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Contractor(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter.
b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all construction contracts in accordance with the California Public Contract Code and the California Labor Code.
c. All construction contracts for the Project shall be administered and managed by Sub -Recipient.
Sub-Recipient shall prepare or have prepared a detailed schedule of performance for the Project, ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient shall be responsible for requiring the construction Contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub -Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds.
d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Project, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements applicable to the Project. Sub-Recipient shall pay all charges and fees and give all notices necessary or incidental to the Project.
e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Project and ensure that the Project complies with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability.
f. Sub-Recipient shall conduct all necessary due diligence for the Project, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property , including but not limited to any covenants conditions and restrictions, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project.
g. Sub-Recipient shall ensure any Contractors or subcontractors are paid in accordance with applicable laws and regulations.
h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts.
i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Project after completion.
SCAG shall not be responsible for ongoing maintenance of the Project after completion.
23. Conflict of Interest
The Parties shall comply with all applicable Federal and State conflict of interest laws, regulations , and policies.
24. Independent Contractor
Sub-Recipient and its Contractor(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG.
25. Assignment
Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU , which consent may be granted, withheld, or conditioned in the consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees.
26. Release of Information
a. Subject to any provisions of law, including but not limited to the California Public Records Act, any Work Product or materials deemed confidential by either Party shall be held confidential by the receiving Party who shall safeguard such confidential materials from unauthorized disclosure, using the same standard of care to avoid disclosure as the receiving Party treats its confidential information, but in no case less than reasonable care. Nothing furnished to either Party which is otherwise known or is g enerally known, or has become known, to the related industry shall be deemed confidential.
b. Sub-Recipient shall not release any information or Work Product s to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act).
c. All public-facing communications materials relating to this MOU , or its subject matter , shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials.
d. To ensure consistency of public information about SCAG programs and funded work products, Sub-Recipient is required to notify and coordinate with SCAG Project Manager who will coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets.
e. All communication materials must be provided to SCAG Project Manager prior to completion so that inclusion of this element can be confirmed.
27. Non-Exclusivity
Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services from other entities or sources.
28. Severability
If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.
29. Survival
The following sections survive expiration or termination of this MOU:
Section 5 (Funding)
Section 10 (Work Products)
Section 12 (Notices)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 15 (Disputes)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 26 (Release of Information)
Section 31 (Jurisdiction and Venue)
Section 32 (Waiver)
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30. Flow-Down Provisions
Sub-Recipient shall include the following provisions in all agreements entered into containing funds provided under this MOU, require the provisions below that survive expiration or termination of this MOU to survive, and shall include a requirement in all agreements that each of them in turn include the requirements in all contracts and subcontracts they enter into to perform work under the Project.
SCAG does not have a contractual relationship with Sub-Recipient’s Contractor(s), and Sub-Recipient shall be fully responsible for monitoring and ensuring compliance with these provisions.
Exhibit B (Funding Requirements)
Section 5.e. (Funding – repayment of ineligible costs)
Section 6 (Invoices)
Section 7 (Reporting)
Section 8 (Accounting)
Section 10 (Work Products)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 24 (Independent Contractor)
Section 25 (Assignment)
Section 26 (Release of Information)
Section 33 (Standard of Care)
Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement.
31. Jurisdiction and Venue
This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Los Angeles County, California.
32. Waiver
No delay or failure by either Party to exercise or enforce at any time any right or provision of this MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each and every right and provision of this MOU. A waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.
33. Standard of Care
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in accordance with generally accepted industry standards, practices, and principles applicable to such work. If Sub-Recipient elects to design and evaluate the Project, such services shall be performed in accordance with professional standards of care applicable to licensed design professionals in California.
34. Force Majeure
Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance as a result of such event shall notify the other Party in writing of such circumstances within not more than ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver the notice described in the previous sentence, then such event shall not relieve the Party from its timely performance.
35. Entire MOU
This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed amendments, represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties with respect to the matters set forth herein.
36. Execution
This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.
The signature page of this MOU or any amendments may be executed by way of a manual or authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any amendment.
37. Authority
Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake the Project, and , if applicable, that a resolution, motion, or similar action has been fully adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in connection with the Project and to provide such additional information as may be required by SCAG.
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SIGNATURE PAGE TO
MEMORANDUM OF UNDERSTANDING
No. M-022-26
IN WITNESS WHEREOF, the Parties have caused this M emorandum of Understanding to be executed by their duly authorized representatives as of the dates indicated below:
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”)
By: _______________________________________________ _________________ Cindy Giraldo Date
Chief Financial Officer
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Richard Lam Date
Senior Deputy Legal Counsel
City of Victorville (“Sub-Recipient”)
By: _______________________________________________ _________________ Elizabeth Becerra Date
Mayor
By: _______________________________________________ _________________ Jennifer Thompson Date
Victorville City Clerk
By: _______________________________________________ _________________ Sandra Bostick Date
Victorville Risk Manager
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Andre de Bortnowsky Date
Victorville City Attorney
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EXHIBIT A
SCOPE OF WORK & BUDGET
Sub-Recipient: City of Victorville
Project Title: La Paz Dr. / Seneca Rd. Traffic Circle
Project Description:
The project will improve safety at an intersection in the city by reducing vehicular speeds and increasing connectivity for people walking. Quick-build materials will support elements including a traffic circle, protected crosswalks, pedestrian islands/refuge, signage for wayfinding, and road markings.
Project involves installation of a rubberized traffic circle, street markings, and wayfinding with no changes to concrete/asphalt.
Total Grant Funds: $503,700
Total Amount of Sub-Award: $373,700
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EXHIBIT B
FUNDING REQUIREMENTS
Sub-Recipient shall comply with all relevant federal, state, and local requirements, including cost principles, procurement standards, and environmental regulations. If a conflict arises between federal and state regulations, laws, or policies, federal law takes precedence and supersedes state law . Similarly, if a state regulation or policy conflicts with applicable federal laws, statutes, or regulations, the federal requirement must be followed. In some cases, the state may impose more stringent standards than federal (i.e. environmental regulations), which is generally allowable, provided they do not directly contradict or frustrate the objectives of the federal legislation.
I. GENERAL FEDERAL REGULATIONS
Sub-Recipient must comply with all applicable federal requirements governing federal assistance, including:
a. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR Part 200 and 48 CFR Part 31, including reporting obligations under 2 CFR Part 200, access related to books, records, and facilities for audits under 2 CFR 200.337, and Cash Management Requirements under 2 CFR 200.305
b. Labor and fair employment standards, including requirements related to Disadvantaged Business Enterprises (DBE) under 49 C.F.R. Part 26;
c. Prevailing Wage requirements under 29 CFR Part 3;
d. Environmental Compliance including, as applicable, the National Environmental Policy Act (42 U.S.C. 4321, et seq.), the Clean Air Act (42 U.S.C. 7401, et seq.), and the Clean Water Act (33 U.S.C. 1344);
e. Compliance with drug-free workplaces under 49 CFR Part 32; and f. All certifications related to:
1. Non-Discrimination (Title VI of the Civil Rights Act of 1964 and 49 CFR Part 21)
2. Debarment and Suspension (2 CFR Part 180, Part 1532);
3. Lobbying Restrictions (2 CFR Part 34; 31 U.S.C. § 1352);
4. Trafficking Victims Protection Act of 2000 (as amended) compliance;
5. Prohibition on Covered Telecommunications Equipment (2 CFR §200.216);
6. Domestic Preferences (2 CFR §200.322); and
7. Procurement of Recovered Materials (2 CFR §200.323)
g. Sub-Recipient shall require its Contractor(s) to abide by the Federal Requirements set forth here and throughout this MOU.
II. GENERAL PROJECT REQUIREMENTS
a. Procurement. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its procurement process complies with all applicable federal, state and funding requirements. For all agreements entered into containing funds provided under this MOU or to perform work under this MOU, Sub-Recipient shall procure in compliance with all applicable federal, state, and local laws and regulations. These include the following:
1. Upon request, Sub-Recipient shall provide information to the SCAG Project Manager regarding any existing solicitation including, but not limited to, Requests for Proposals, Invitation for Bids, Request for Qualifications, and Requests for Quotation (collectively “RFP”). For new RFPs developed or finalized after the Effective Date of Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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this MOU, Sub-Recipient shall provide information to the SCAG Project Manager and obtain SCAG Project Manager’s written approval on any final RFP prior to its issuance.
SCAG may require documentation of RFPs and Notices to Proceed before approval of invoice reimbursement.
2. Sub-Recipient shall be accountable to SCAG and the Awarding Agencies to ensure Contractor’s performance. Sub -Recipient’s Project Manager shall be responsible for final approval of Contractor’s deliverables consistent with the Scope of Work as outlined in the most current fully excecuted SAF ; provided, however, that prior to approving a deliverable from the Contractor, Sub -Recipient’s Project Manager shall consult with SCAG’s Project Manager.
3. When requested, Sub -Recipient shall provide other related documentation of compliance, as determined by SCAG, with applicable procurement requirements and terms and conditions of this MOU within ten (10) days of the request.
4. Sub-Recipient shall not be authorized to direct any additional work by the Contractor or cause any increase in the Contractor costs without SCAG’s prior written approval.
In the event that Sub -Recipient or its Contractor proposes an amendment to the Contractor’s contract which changes the terms of Contractor’s contract with Sub - Recipient, including but not limited to, increases the value of the contract amount and/or modifies the Scope of Work as outlined in the most current fully executed SAF, Sub-Recipient shall notify SCAG’s Project Manager in writing prior to execution of such amendment, provide SCAG with copy of the amendment and obtain SCAG’s written approval. SCAG may propose an amendment to this MOU, if necessary, consistent with any executed amendments to the Contractor contract.
5. Sub-Recipient shall be accountable to SCAG and the Awarding Agencies to ensure Contractor(s)’ performance. Sub-Recipient’s Project Manager shall be responsible for final approval of Contractor(s)’ deliverables consistent with the Scope of Work , as outlined in the most current fully executed SAF ; provided, however, that prior to approving a deliverable from the Contractor(s), Sub-Recipient’s Project Manager shall consult with SCAG’s Project Manager.
b. Licenses. Sub-Recipient agrees to obtain and maintain the required licenses, permits, and all other appropriate legal authorizations from all applicable federal, state and local jurisdictions, and pay all applicable fees. Sub -Recipient further agrees to immediately notify SCAG in writing of any change in its licensing status which has a material impact on the Sub-Recipient’s performance under this MOU.
c. Reporting. Sub -Recipient shall submit reports to SCAG as outlined in Exhibit A Scope of Work, as outlined in the most current fully executed SAF . Unless otherwise stated herein, all reports shall be submitted electronically to the SCAG Project Manager (“SCAG PM”) at intervals determined by SCAG PM. If the reports are too large to be attached via email, the reports shall be submitted via a file-sharing site that allows SCAG to access and download the files. SCAG reserves the right to review, comment, and request changes to any report produced as a result of this MOU.
d. No Conflict of Interest. Sub-Recipient, in performing all tasks set forth in Exhibit A Scope of Work, as outlined in the most current fully executed SAF , warrants that it has no business, professional, personal or other interest that would conflict in any manner or degree with the performance of its obligations under this MOU. Sub -Recipient must immediately inform SCAG in writing of any actual or potentia l conflict of interest arises during the term of this Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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MOU. SCAG may, in its sole judgment, terminate this MOU immediately upon written notice to Sub-Recipient.
e. Standards of Performance. Sub-Recipient shall be responsible for exercising the degree of skill and care customarily required by accepted professional practices and procedures subject to SCAG’s final approval which SCAG will not unreasonably withhold. Any costs incurred due to the failure to meet the foregoing standards, or otherwise defective services which require re- performance, as directed by SCAG, shall be the responsibility of Sub -Recipient. If Sub- Recipient is deemed by SCAG to have failed the foreg oing standards of performance, SCAG may request re-performance.
f. Pass-Through. Sub -Recipient shall require its subrecipients, if any, to abide by the Project Requirements set forth in this MOU.
III. FEDERAL REQUIREMENTS AND CERTIFICATIONS
This MOU is funded, in whole or in part, by an USDOT award to the SCAG. Information on the award may be found at SS4A FY23 Terms and Conditions and made a part herein by this reference. As such, Sub-Recipient shall fully comply with all applicable federal rules, regulations, and requirements, including, but not limited to, the following:
a. Procurement Requirements . As a federal funded project, Sub-Recipient shall conduct all procurements in strict compliance with:
1. Title 2 Code of Federal Regulations Part 200 (2 CFR Part 200), including Subpart D (Post Federal Award Requirements) and Subpart E (Cost Principles) b. SS4A Requirements . Sub-Recipient, and its Contractor(s) must fully adhere to the SS4A program requirements set forth by USDOT pursuant to the Infrastructure Investment and Jobs Act (IIJA) Section 24112 and align its performance with the specific requirements listed in the “FY 2023 Notice of Funding Opportunity (NOFO) for Safe Streets and Roads for All.” c. Delinquent Tax Liability and Felony Convictions . Sub-Recipient warrants that federal funds will not be used for contracts with corporations having unpaid Federal tax liability or recent felony convictions under the Consolidated Appropriations Act, 2023. d. Anti-Kickback and Fraud . Sub -Recipient warrants compliance with the Copeland Anti - Kickback Act under 18 U.S.C. 874 and 40 U.S.C. 3145 and Whistleblower Protection under 41 U.S.C. 4712, which prohibits retaliation for disclosing gross mismanagement or violations of law.
e. Banning Text Messaging While Driving . Pursuant to Executive Order 13513, Sub -Recipient must adopt policies to prohibit texting while driving on official business. f. Quarterly Reporting . Sub -Recipient shall comply with the Quarterly Progress Reports requirement submitted in the specific format and with the content described in Exhibit D, which was designed specifically for the SS4A grant program. g. Debarment and Suspension . Sub-Recipient shall fully comply with 2 CFR Part 180, as supplemented by 2 CFR Part 1532 and Executive Order 12549. Sub -Recipient certifies that neither it, nor any of its Contractor(s) is or has been debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions, as they are defined in 2 CFR Parts 180 and 1200, by any Federal agency or department and is: not presently excluded or disqualified, as those terms are defined in 2 CFR § 180.110; not convicted within the preceding three years of any of the offenses listed in 2 CFR § 180.800(a) or had a civil judgment rendered against it for one of those offe nses within that time period; not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses listed in 2 CFR § 180.800(a); or not had one Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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or more public transactions (Federal, State, or local) terminated within the preceding three years for cause or default. Sub-Recipient acknowledges that failing to disclose the information required under 2 CFR § 180.355 may result in the delay or negation of this MOU or pursuance of legal remedies, including suspension and debarment.
h. New Restrictions on Lobbying. Sub-Recipient certifies its compliance with Title 2 CFR Part 34, New Restrictions on Lobbying. No appropriated funds may be expended by the Sub - Recipient of a Federal contract, grant, loan, or cooperative agreement to pay any person for influencing or at tempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: the aw arding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. i. Trafficking Victims Protection Act of 2000 . Sub-Recipient, and any of its subrecipients and Contractor(s) paid with SS4A funds , shall comply with the provisions of the Trafficking Victims Protection Act of 2000, (See 22 USC 7104 et seq.; and specifically 7104(g)), as amended, Prohibition On Covered Telecommunications Equipment . Sub -Recipient is prohibited from obligating or expending loan or grant funds to: Procure or obtain covered telecommunications equipment or services; Extend or renew a contract to procure or obtain covered telecommunications equipment or services; or Enter into a contract (or extend or renew a contract) to procure or obtain covered telecommunications equipment or services, as those terms are defined in 2 CFR §200.216.
j. Domestic Preferences (“Buy America”). Sub-Recipient must, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products), as those terms are defined in 2 CFR §200.322.
k. Audit Requirements. During the term of the MOU, and for a period of three (3) years from the date of MOU expiration, and if requested in writing by SCAG, Sub -Recipient shall allow SCAG or the Comptroller General of the United States, their designated representatives and/or the cognizant Federal Audit Agency access during normal business hours to all records and reports related to the work performed under this MOU. Sub -Recipient assumes sole responsibility for reimbursement to USDOT, a sum of money equivalent to the amount of any expenditures disallowed should the Auditing Agencies rule through audit exception or some other appropriate means that expenditures from funds allocated to the Sub-Recipient were not made in compliance with the applicable cost principles as contained in 2 CFR Part 200 Subpart E, or the provisions of this MOU. Through the term of this MOU, and if applicable and if Sub- Recipient expended One Million Dollars ($1,000,000) or more in a fiscal year in Federal Awards, Sub-Recipient shall have a single or program-specific audit conducted in accordance with the requirements of 2 CFR Part 200 Subpart F.
l. Federal Property Disposition Conditions. The disposition of equipment funded in whole or in part with Federal funds, when it is no longer needed for the original project, program, or for other activities currently or previously supported by a Federal agency, must comply with local, state and federal regulations, including 2 CFR § 200.313 as amended. Pursuant to the federal property disposition conditions, Sub -Recipient agrees to report to SCAG, every 2 years after the conclusion of the MOU term, information relating to the equipment, until the equipment’s fair market value drops below $10,000 or until the equipment is no longer used in accordance Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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with the purpose of this MOU. Information to be reported shall include: the serial number or another identification number, the fair market value at the time of the report, location, use and condition of the equipment. Sub -Recipient shall also notify SCAG within thirty (30) days of the equipment’s sale or transfer. The requirements of this provision shall survive the expiration of this MOU.
m. Intellectual Property Rights . The Parties’ rights to all intangible property made under this MOU, including copyrights, trademarks, patents, and inventions, shall be in accordance with 2 CFR §200.315 and 37 CFR Part 401, and any applicable federal regulations. In addition, Sub-Recipient agrees to the following:
1. Rights of Technical Data – The United States Government and SCAG shall have the unlimited right to use technical data, including material designated as a trade secret, resulting from the performance of services by Sub -Recipient under this MOU. Sub - Recipient shall have the right to use technical data for its own benefit.
2. Copyright – Sub-Recipient agrees to grant the United States Government and SCAG a royalty-free, nonexclusive, irrevocable right to reproduce, translate, publish, use, and dispose of all copyrightable material first produced or composed in the performance of this MOU.
n. NEPA Requirements. Sub-Recipient is responsible for ensuring compliance with applicable National Environmental Policy Act (NEPA) requirements, including, as applicable, serving as the implementing agency for environmental approval(s).
o. Nondiscrimination. In the performance of this MOU, Sub -Recipient must not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment on the basis of race, religious creed, color, national origin, ancestry, sex, sexual orientation, age, mental status, medical condition, physical or mental disability, or allow unlawful denial of family and medical care leave, denial of pregnancy disability leave, or reasonable accommodations. Sub-Recipient must comply with the provis ions of the Fair Employment & Housing Act (Government Code § 12900 et seq.), Title VI of the Federal Civil Rights Act of 1964 (P.L. 88 -352), Section 504 of the Rehabilitation Act of 1973, the Americans with Disability Act (42 USC 12101, et seq.), and all amendments thereto, and all administrative rules and regulations issued pu rsuant to said Acts. Sub -Recipient must also comply with all applicable Executive Orders, including:
1. Executive Order 14173 (Ending Illegal Discrimination and Restoring Merit -Based Opportunity).
2. Executive Order 14224 (English as the Official Language).
Failure by Sub -Recipient to carry out these nondiscrimination requirements is a material breach of this MOU, which may result in the termination of this MOU or other legally available remedies.
p. Citizenship and Alien Status . Sub-Recipient warrants that it fully complies with all laws regarding the employment of aliens and others, and that its employees performing services hereunder meet the citizenship or alien status requirements contained in federal and state statutes and regulations including, but not limited to, the Immigration Reform and Control Act of 1986 (P.L. 99-603). The Sub-Recipient shall obtain from all covered employees performing services hereunder all verification and other document ation of employees' eligibility status required by federal statutes and regulations as they currently exist and as they may be hereafter amended. Sub -Recipient shall have a continuing obligation to verify and document the continuing employment authorizatio n and authorized alien status of employees performing services under this MOU to ensure continued compliance with all federal statutes and Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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regulations. Notwithstanding the above, Sub-Recipient, in the performance of this MOU, shall not discriminate against any person in violation of 8 USC Section 1324b. q. Federal Freedom of Information Act . Certain records related to this MOU may be subject to disclosure under the Freedom of Information Act (FOIA), 5 U.S.C. § 552. Accordingly, nothing in this MOU will be construed to limit the rights of any member of the public under FOIA or to obligate SCAG to withhold records that are otherwise required to be disclosed under applicable law. Sub -Recipient must clearly mark information that it considers proprietary, confidential, or otherwise exempt from disclosure under FOIA at the time of submission. Such markings do not guarantee protection from disclosure. r. Scope of Applicability . Failure to expressly identify a Federal law applicable to the Sub - Recipient or to activities under this MOU does not negate its applicability.
[THIS SECTION INTENTIONALLY LEFT BLANK]
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EXHIBIT C
INVOICE SUBMITTAL REQUIREMENTS
SCAG will provide the Sub-Recipient an Invoice Template in Excel file format. The Invoice Template must be used to request reimbursement from SCAG. Detailed submittal instructions for filling out and submitting are provided in the Invoice Template. The Invoice Template may be amended from time to time and does not guarantee that any invoices will be approved or that the Sub-Recipient will receive payment.
A Final Invoice shall be submitted within sixty (60) days of Project completion and must include all remaining eligible costs, proof of payment, and a certification that no additional reimbursement requests will be submitted for this Project.
The Invoice Template will require information and supporting documentation such as, but not limited to:
a. SCAG’s “Bill To” information
b. Invoice number specified by the Sub-Recipient. The invoice number must be unique for each invoice submitted;
c. Invoice date;
d. Billing period specified with beginning and ending dates. The beginning date must not be sooner than the MOU Effective Date of the Agreement, or within any previous billing dates;
e. Total amount due for the billing period;
f. MOU Number, SCAG Project/OWP Number, and the MOU Term Date; g. Project Title;
h. Agency Name, Agency Project Manager Name, and Project Manager Email Address; and i. SCAG Project Manager Name.
j. Progress report
k. Cost by task and/or cost category
l. Detailed description of Other Direct Charges
m. Proof of payment
n. Timesheets
o. Payroll report/Payroll registers
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EXHIBIT D
REPORT TEMPLATE
Pending Template.
Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB In Process
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EXHIBIT E
Annual Title VI Compliance Report
1. Instructions for Agency
As a recipient of Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) funds, the Southern California Association of Governments (SCAG) is required to ensure that all federally funded programs, services, and activities are conducted in compliance with Title VI of the Civil Rights Act of 1964 and related nondiscrimination laws. These laws prohibit discrimination on the basis of race, color, national origin, sex, age, and disability in federally assisted programs.
SCAG is responsible to monitoring Subrecipients and beneficiaries of FHWA/FTA funds to ensure their compliance with Title VI requirements. As a beneficiary of FHWA funds, your agency is required to implement Title VI policies and procedures to prevent discrimination and ensure equitable service delivery.
The purpose of this Annual Title VI Compliance Report is to document your agency’s ongoing compliance with Title VI requirements. This report must be completed and submitted to SCAG within two months of the MOU effective date to demonstrate adherence to federal nondiscrimination obligations.
Failure to comply with Title VI requirements may result in corrective actions, increased monitoring, or suspension of the FHWA funding. If any compliance deficiencies exist, please attach a corrective action plan outlining the steps you will take to achieve compliance.
Section 1.01
2. General Information
Name of Agency:
Project Name/ Number:
Date of Review:
Reviewer Name & Title:
Section 1.02
3. Annual Certifications
a. Title VI Policy and Training
Do you have an adopted Title VI Policy?
[ ] Yes. [ ] No*. If no, explain why not.
Do you have a Title VI Coordinator?
[ ] Yes. [ ] No*. If no, explain why not.
Have you required your employees to receive Title VI training in the last two years?
[ ] Yes. [ ] No*. If no, explain why not.
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Is your Title VI Policy publicly available and posted in appropriate locations?
[ ] Yes. [ ] No*. If no, explain why not.
Are Title VI complaints logged, investigated, and resolved appropriately?
[ ] Yes. [ ] No*. If no, explain why not.
b. Public Engagement and Limited English Proficiency (LEP)
Are your public meetings held in accessible locations?
[ ] Yes. [ ] No*. If no, explain why not.
Do you have a LEP plan in place and follow the plan?
[ ] Yes. [ ] No*. If no, explain why not.
Are LEP individuals provided interpretation and translated materials, as needed?
[ ] Yes. [ ] No*. If no, explain why not.
Do your engagement efforts include minority, low-income, and underserved communities?
[ ] Yes. [ ] No*. If no, explain why not.
c. Data Collection and Reporting
Do you collect demographic data on program beneficiaries, as applicable?
[ ] Yes. [ ] No*. If no, explain why not.
Do you work to identify and address disparities in services or benefits?
[ ] Yes. [ ] No*. If no, explain why not.
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d. Complaint Monitoring and Resolution
Is your Title VI complaint process clearly communicated to the public?
[ ] Yes. [ ] No*. If no, explain why not.
Do you track complaints and resolve them within required timeframes?
[ ] Yes. [ ] No*. If no, explain why not.
Have you ensured that no patterns of discrimination were identified in complaint reviews?
[ ] Yes. [ ] No*. If no, explain why not.
4. Certification and Signature
By signing below, I certify that the information provided in this report is true and accurate to the best of my knowledge. I acknowledge that failure to comply with Title VI requirements may result in corrective actions, increased monitoring, or suspension of the FHWA funding.
* If any compliance deficiencies exist, I have attached a corrective action plan outlining the steps my agency will take to achieve compliance.
Name:
Title:
Signature:
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EXHIBIT F
SCOPE OF WORK APPROVAL FORM
Scope of Work Approval Form forthcoming.
Docusign Envelope ID: F0D64BA5-5874-8197-8250-9C8BA4EE6BDB Item Number: 25
City Council / Board of Directors
Written Communications
Meeting of: August 18, 2026
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Presentation on City's Pavement Management of City Roads Recommendation:
Staff recommends that the Honorable City Council receive and file this report.
Fiscal Impact:
There is no fiscal impact related to this item.
Strategic Plan Goal:
This item aligns with “Goal E Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. The effective management of the City’s pavement rehabilitation projects and operations and maintenance of the City's roads results in investment in our roadway infrastructure and is a part of implementing the City's Capital Improvement Program.
Background:
City staff utilize and manage a pavement management program to identify needs, prioritize, and budget for pavement reconstruction, rehabilitation, and preservation projects.
Discussion:
A presentation (Attachment A) will be given regarding the City's system of pavement management for the City's roads.
Prepared By:
Harry Mayo, Senior Civil Engineer
Attachments: A. Pavement Management Presentation
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3DYHPHQW0DQDJHPHQW
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Pavement
Management
Program for
City Roads
Pavement Management Program
The Pavement Management Program is a system developed to:
• Collect and analyze the overall condition of the City’s pavement network • Develop projects
• Provide a decision support tool
• Find cost-effective treatments to meet desired pavement condition levels • Manage projects within imposed budget constraints
• Report to decision makers (City Council) network:
- Conditions
- Current needs
- Projected future costs
-W o r k P l a n s
- Results of work done
Pavement Management Report (PMR)
x Is a pavement network analysis that:
- Identifies overall pavement condition of the roadway network - Identifies current roads needing work
- Estimates network level cos ts base on suggested treatment type - Updates the condition of str eet segment every 5 years, Zone A (2022), Zone B (2023), and Zone C (2024)
x Prepared by consultant since 2005
Victorville Road Network Overview
479.1 centerline miles of roads
±1,121 lane miles of road
±101.5 million square feet of pavement
Classification Centerline
Miles % Square Feet %
Arterial 105.5 22% 30,574,830 30.1%
Collector 60.0 13% 11,302,675 11.1%
Local 307.7 64% 59,166,924 58.3%
Alleyways 5.8 1% 460,870 0.5%
Totals 479.1 100% 101,505,299 100%
Residentials Collectors Arterials
City-wide
Square Footage
As of January 2025
x The PCI is a numerical rating resulting from a
pavement condition inspection that identifies &
represents the severity of surface distresses.
x The PCI is a scaled rating from 0 to 100
x Surface distresses identified in PCI include:
- Fatigue cracking (heavy loading):
oAlligator cracking
oRutting & depression
oPotholes
- Age-related cracking:
oBlock cracking
oLongitudinal and transverse cracking
oPatching & utility cuts
oRaveling
oWeathering
PMR Pavement Condition Index (PCI)
PCI Range Pavement Condition
86 –100 Excellent
71 - 85 Very Good
56 - 70 Good
41 - 55 Fair
26 - 40 Poor
11 - 25 Very Poor
0 - 10 Failed
Alligator
Longitudinal Transverse
Potholes
Block Block
1. City street network is broken down into street segments
2. Pavement in each segment is visually inspected
3. Surface distresses (e.g. cracks and potholes) are identified
4. Severities for distresses (low, medium, or high) are identified
5. Quantity for each type of distress is estimated
6. Distress type and quantity are input into MicroPAVER software
7. Report is generated with PCI for each street segment Method Used to Estimate PCI
0.1%
6.1%
14.0% 12.2%
20.3%
38.9%
8.2%
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
0-10 11-25 26-40 41-55 56-70 71-85 86-100
Area (Square Feet) PCI Rating
47.1% of City all streets have a PCI ranging from 71 to 100 (Good)
20.1% of City all streets have a PCI ranging from 11 to 40 (Poor) Current Pavement Conditions: All Streets
Average Network PCI = 65.7
AN k C I 6
PCI = 65
PAST 12 YR PCI TREND
72.1 70.8
69.9 69.1 68.9 68.6 68.6
70.0 69.5 69.0 68.6
67.2 65.7
62.0 64.0
66.0 68.0
70.0 72.0
74.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PCI TREND
0.4%
3.8%
19.1%
9.8%
24.6%
30.4%
11.9%
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
0-10 11-25 26-40 41-55 56-70 71-85 86-100
Area (Square Feet) PCI Rating
Current Pavement Conditions: Arterial Streets
PCI = 63
63.0 62.0
63.4 63.0
61.0 61.5
62.0 62.5
63.0 63.5
64.0 2022 2023 2024 2025
PCI TREND
2025 Average Arterial PCI = 63.0
0.0%
14.8% 16.4%
9.9%
19.1%
29.0%
10.9%
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
0-10 11-25 26-40 41-55 56-70 71-85 86-100
Area (Square Feet) PCI Rating
Current Pavement Conditions: Collector Streets
63.0 62.7
58.7 57.0
54.0 55.0
56.0 57.0
58.0 59.0
60.0 61.0
62.0 63.0
64.0 2022 2023 2024 2025
PCI TREND
PCI = 57
2025 Average Collector PCI = 57.0
0.0%
5.7%
10.9%
13.9%
18.4%
45.2%
5.8%
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
0-10 11-25 26-40 41-55 56-70 71-85 86-100
Area (Square Feet) PCI Rating
68.0 67.8
66.6 65.0
63.5 64.0
64.5 65.0
65.5 66.0
66.5 67.0
67.5 68.0
68.5 2022 2023 2024 2025
PCI TREND
Current Pavement Conditions: Residential Streets
PCI = 25
2025 Average Local PCI = 65.0
x Preliminary treatment method identified in PMR by PCI rating x Three treatment methods with subcategories considered:
1) Reconstruction – complete removal and replacement of the road pavement sections 2) Rehabilitation – grind of existing AC pavement and overlay of new AC on old pavement 3) Preservation:
- Slurry seal - coating of asphalt emulsion and small aggregate (sand) - Microsurfacing – similar to slurry seal with chemical additives such as polymer x Actual treatment method is selected during project design phase x Methods are selected based upon street type, condition, and available budget PCI Range Condition Treatment Method Extended Life
(years)
86-100 Excellent None
71-85 Very Good Slurry Seal 5 -7
56-70 Good Microsurfacing 8 - 10
41-55 Fair 2 inch AC Overlay 12 - 20
26-40 Poor 2 Inch AC Overlay 12 - 20
11-25 Very Poor Reconstruct 30
0-10 Failed Reconstruct 30
Pavement Network Treatment Method Decision Tree
Pavement projects are prioritized by street type and information pulled from the PMR Arterial & Collector Roads (2-7 lanes)
x All treatment methods considered
x Benefit/Cost (B/C) Formula used to prioritize arterial and collector roads projects x Benefit is divided by project cost to calculate a B/C number x The higher the B/C number, the higher the priority and benefit to the City x Benefit factors
- Traffic Volume (how many cars use the road daily, largest benefit factor) - Improvement in PCI
- Extended Life of Pavement
- Length of Project
x Currently $7.7 million Measure I and SB1 budgeted for FY 26/27 Local Roads
(2-lanes)
x Pavement Preservation methods only used on local streets x Slurry seal / microsurfacing projects identified by PCI rating x Project is typically in a geographic area or neighborhood x Currently $1.0 million budgeted for FY 26/27
Capital Improvement Project Prioritization
Prioritization Benefit Cost Ratio Formula
=
ࢀࡰࢤ ࡵࡼ
ࢀࡸ
Variable Description Unit
B
Benefit to users from the increased average PCI over
the extended life of the pavement and length of the
project
None
ADT Est. Average Daily Traffic Volume Vehicles/day
PCI Pavement Condition Index. A number from 0 to 100. None UPCI / 2 Est. Avg. PCI increase over the extended life of the pavement resulting from rehabilitation project None
T Est. life of pavement extended resulting from
rehabilitation project Years
L Project Length Mile
C Est. Project Cost $
Example: Mojave Dr from Amargosa Rd to I-15
Road Name Limit To Limit From Length
(ft)
Width
(ft) PCI Rehab. Method $ / SF
Mojave Dr I-15 SB Ramps Condor Rd 1,200 61 25 Reconstruct $10.20 Mojave Dr Condor Rd Amargosa Rd 2,800 53 56 Single Mirco Surf $0.85 Road Name Limit To Limit From Est. Cost PCI
Increase
Extended
Life ADT ADT
Year
Benefit/
Cost
Ratio
Mojave Dr I-15 SB Ramps Condor Rd $768,600 75 30 40,735 2023 13.6 Mojave Dr Condor Rd Amargosa Rd $170,660 44 8 27,867 2023 3.8
=
, ૠ ૠ
, ࢚ࢌ
ૡ ࢚ࢌ/
̈́ૠૡ, = .
FY 26/27 Five-Year Plan - Pavement Rehab Projects
Example: Roy Rogers R from Civic Dr to Amargosa Rd
Million $ B/C PCI
• Air Expressway (National Trails Hwy to George Blvd) $5.5 9.0 27 to 39 • Bear Valley Rd (US-395 to Bellflower Rd) $0.4 5.3 63
• Amargosa Rd (Dos Palmas Rd to Village Dr) $3.6 5.1 24 to 60 • El Evado Rd (Palmdale Rd to Begonia Rd) $1.2 4.8 25
• Mariposa Rd (Talpa St to Kingswood Dr) $1.2 6.4 23 to 29 • Air Expressway (George Blvd to Phantom West) $3.0 7.3 25 • Ridgecrest Rd (Pahute Rd to Green Tree Blvd) $1.3 6.3 26 to 33 • La Paz Dr (7
th St to I-15 ramps) $1.2 7.3 32
• Seventh St (Mariposa Rd to Lorene Dr) $1.0 5.2 32
• Hesperia Rd (Bear Valley Rd to Seneca Rd) $3.2 5.0 31 to 72 • Amargosa Rd (Avenal St to Bear Valley Rd) $3.1 6.6 21 to 61 • Cobalt Rd (Dos Palmas Rd to Palmdale Rd) $0.4 3.5 29
Fiscal Year 27-31 Five - Year Plan Total Cost: $25 Million FY 26/27 Annual Available Funding for Pavement Projects (Million $) Fund
No. Fund Name Revenue Operations &
Maintenance
Pavement
Projects
220 Highway Users
Tax $4.1 $4.1 $0
221 Local Streets &
Roads (SB1) $3.9 $0 $3.9
250 Measure I $7.1 $3.7 $3.4
Total $15.1 $7.8 $7.3
x Unlimited Budget, $205.7 million required per preliminary 2025 treatment methods1 x Restrained budget of $6.52 to 7.53 million annually over 20 years is insufficient x $7 million annually will drop the overall average PCI by 2 points per year x $16 million annually will drop the overall average PCI by 1 point per year x $20 million annually will stop the overall average PCI from dropping each year x $22 million annually would increase overall average PCI by 2 points in 10 years 1Based on January 2025 PCI Report, 2FY 2024/25 Budget 3FY 2025/26 Budget Pavement Project Needs & Funding
Total Pavement Network Needs 2025
Example: Roy Rogers R from Civic Dr to Amargosa Rd
2026 Estimated Unlimited Budget Required for Pavement Projects Arterial Preservati on Projects $11.7 million
Arterial Rehabilitation Projects $51.7 million
Collector Preservation Projects $3.7 million
Collector Rehabilitation Projects $27.7 million
Local Road Preservation Pr ojects $22.1 million
Local Road Rehabilitation Pr ojects $88.8 million
Total $205.7 million to an average PCI of 86
62 64
66 68
70 72
74 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PCI TREND
Traffic Engineering Maintenance Efforts
Example: Roy Rogers R from Civic Dr to Amargosa Rd
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Totals
Miles of Striping 285 314 569 740 893 2,801
No. of Legends Striped 1,194 757 1,542 1,753 1,913 7,159 LF of Red Curbs Painted 13,420 2,717 19,717 15,297 56,270 107,421 New Signs Installed 338 309 279 250 349 1,525
Signs Replaced 587 742 654 752 1,197 3,932
m Civic Dr to Amargosssssaaaa
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Public Works Maintenance Efforts
Example: Roy Rogers R from Civic Dr to Amargosa Rd
FY 22/23 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Totals
LF of Crack Seal 199,580 130,880 100,710 23,900 102,920 557,990 Total Potholes Filled 8,389 12,658 17,367 12,041 17,379 67,834 SF of AC R&R 56,956 35,884 79,381 43,030 86,745 301,996 SF of Sidewalk R&R 19, 175 14,440 14,256 17,498 21,911 87,280 SF of New Sidewalk 0 0 0 5,052 4,140 9,192
LF of Curb R&R 126 118 195 1,004 1,752 3,195
LF of Curb & Gutter R&R 25 287 850 160 1,178 2,500
Recently Completed Projects
Example: Roy Rogers R from Civic Dr to Amargosa Rd
Steet Segment(s) or Project Year
Completed
Total Cost
Industrial/Silica from Bear Valley Rd to Hesperia Rd 2021 $4.6 M 7th Street/Arrowhead Drive from Green Tree Blvd to
Bear Valley Rd
2022 $7.3 M
Green Tree Extension* 2023 $47.7 M
Liberty Village Slurry Seal Project 2022 $1.3 M
Bear Valley Rd from Ridgecrest Rd to Industrial Rd* 2023 $11.9 M Civic Area Slurry Seal Project 2024 $1.8 M
Bear Valley Road from Amethyst Rd to Highway 395 2024 $7.8 M 2024 Citywide Slurry Seal (Golden Triangle) 2024 $1.4 M 2025 Citywide Slurry Seal Phase II 2025 $1.1 M
Ridgecrest Road/Bear Valley Rd to Pahute Ave 2026 $1.7 M Roy Rogers Road/I-15 to Amargosa Rd 2026 $2.3 M
Total Capital Investment in Street Improvement Projects $88.9 M *Project costs include bridge construction/widening
Future Outlook
Example: Roy Rogers R from Civic Dr to Amargosa Rd
• SBCTA will place a measure on the November 2026 ballot to extend Measure I beyond 2040 without a sunset clause. SBCTA proposes to keep the Measure I sales tax rate at 0.5%
• Measure I revenue is steady
• SB-1 revenues are rising
• Newly formed City CFD does not address existing demand for services • Victorville needs an additional revenue source for pavement rehabilitation projects that could include the reconsideration of a Transaction And Use Tax ballot measure in 2028
Item Number: 26
City Council / Board of Directors
Written Communications
Meeting of: August 18, 2026
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Measure I Five Year Capital Improvement Plan
Recommendation:
That the Honorable City Council adopt Resolution No. 26-076, approving the Measure I Five Year Capital Improvement Plan for Fiscal Years 2026-2027 through 2030-2031.
Fiscal Impact:
The adoption of the Five-Year Plan does not have a direct fiscal impact. Capital projects, vehicles, equipment, maintenance and operations expenses for Measure I, Fund 250, will be in accordance with the approved Fiscal Year 2026-2027 City Budget, and subsequent amendments to the budget, if required.
Strategic Plan Goal:
The Measure I Five Year Capital Improvement Plan aligns with Goal E, Strategy 11, Invest in Infrastructure in the City of Victorville Strategic Plan 2023-2026. Measure I funds are used to invest in the preservation, rehabilitation, improvement, and maintenance operations of the City’s road system.
Background:
Each year, in accordance with San Bernardino County Transportation Authority (SBCTA) requirements, the City is required to adopt by resolution a Measure I Five Year Capital Improvement Plan (CIP) for all its planned expenditures for Victorville’s local pass-through Measure I. The deadline for submission of the Measure I Five Year CIP to SBCTA is September 1, 2026. In general, eligible expenditures for Measure I must be for streets and roads purposes. Expenditures for capital projects, vehicles, equipment, operations, and maintenance may be included.
4 8
5 0
Discussion:
Resolution No. 26-076 is included as (Attachment A). The SBCTA estimate for pass- through revenue in FY 2026-2027 is $7,104,220. The Five-Year CIP has been prepared in accordance with the City’s approved FY 2026-2027 Budget which includes capital projects, equipment, operations, and maintenance Measure I expenses. The Measure I Five-Year CIP is included as Exhibit “A” within (Attachment A). The “projects” listed in the Five-Year CIP include capital improvement projects and equipment. In addition, several categories in the City’s budget which are funded by Measure I are listed. These categories include: Cost Allocation; Engineering Services; Streets Engineering; Traffic Signal Maintenance; and Traffic Control (signing and striping).
An expenditure strategy, as required by SBCTA, is included in Exhibit “B” within (Attachment A). The strategy provides the policy approach for City Council for the use of Measure I funds. The attached policy is similar to that used in past years and provides flexibility for programming expenditures for a variety of needs for streets capital improvement projects, vehicles, equipment, operations, and maintenance.
Measure I is one of three funding sources dedicated to street improvement, reconstruction, rehabilitation, and preservations projects. This year the Engineering Department’s 5-Year Road CIP Plan (Attachment B) has been prepared in addition to the Measure I Five Year Capital Improvement Plan. Attachment B includes the five-year summary for all roadway improvement projects proposed to be funded by SB1 (Fund 221), Measure I (Fund 250), and Road DIF (Fund 352). Road DIF funding is limited to capacity improvement projects such as road widening of an existing road to include an additional lane and/or the construction of new infrastructure such as a road, bridge, or traffic signal. Road DIF funding is also considered the Public Share of proportionate project costs to the Public Share of federal or state-funded capacity improvement projects. SB1 funding is restricted to transportation infrastructure, maintenance, and transit projects as it cannot be used for indirect administration or operational purposes.
As projects are completed, the Road CIP Master Plan will include a five-year look back on completed projects and a five-year forward look for all new street improvement CIP.
Staff recommends that the Honorable City Council adopt Resolution No. 26-076, approving the Measure I Five Year Capital Improvement Plan for Fiscal Years 2026-2027 through 2030-2031. Upon adoption of the attached resolution, staff will forward a copy of the resolution and the Five Year CIP to SBCTA for inclusion in their planning documents.
Staff is available for any questions Council may have.
Prepared By:
Harry Mayo, Senior Civil Engineer
Attachments: A. Resolution No. 26-076
B. Engineering 5-Year Road CIP Plan
Attachment A
Resolution No. 26-076
RESOLUTION NO. 26-076
RESOLUTION OF T HE CITY C OUNCIL OF THE CITY OF
VICTORVILLE, S TATE OF CA LIFORNIA, ADOPTING THE
MEASURE I F IVE-YEAR CAP ITAL IMPROVEMENT PLAN FOR
FY2026/2027 THROUGH FY2030/2031
WHEREAS, San B ernardino C ounty voters ap proved passa ge of Measure I in November 2004, a uthorizing the San B ernardino County T ransportation A uthority to impose a one-ha lf of one p ercent retail t ransactions and use tax a pplicable in the incorporated and unincorporated territory of the County of San Bernardino; and
WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04-01 of the Authority; and
WHEREAS, t
he Strategic Plan requires each local jurisdiction applying for revenue from the Local Street Program to a nnually ad opt a nd update a F ive-Year Ca pital Improvement Plan; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOL VE AS FOLLOWS:
SECTION 1 . T hat the Measure I Five Year Capital Improvement Plan, attached to this resolution as Exhibit A, and the Expenditure Strategy, attached to this resolution as Exhibit B, are hereby adopted.
SECTION 2. That the City Clerk shall certify as to the adoption of this Resolution.
Exhibit A
Measure I Five Year Capital Improvement Plan
Resolution Number:
Resolution Approval Date:
Contact Person/Title:
Phone:
Email:
6/30/26 Carryover Balance $8,971,615.00
FY2026/27 Est. Revenue FY2027/28 Est. Revenue FY2028/29 Es t. Revenue FY2029/30 Est. Revenue FY2030/31 Est. Revenue Total Est. Rev. $7,104,220 $7,273,260 $7,450,686 $7,632,453 $7,818,646 $37,279,265 Projects:
Ridgecrest Rd at Bluff Crest St/Vista Point Dr Offset Traffic Signal Project No No 0.0% 0.0% $1,392,000 $232,000 $0 $0 $0 $0 $232,000 Air Expressway, National Trails Hwy to George Blvd, pavement rehabilitation No No 0.0% 0.0% $6,273,000 $2,773,000 $0 $0 $0 $0 $2,773,000 Bear Valley Rd, US 395 to Bellflower Rd, pavement rehabilitation No No 0.0% 0.0% $3, 422,000 $422,000 $0 $0 $0 $0 $422,000 Amargosa Rd, Dos Palmas Rd to Village Dr, pavement
rehabilitation No No 0.0% 0.0% $1,800,000 $0 $1,800,000 $0 $0 $0 $1,800,000 El Evado Rd, Palmdale Rd to Begonia Rd, pavement rehabilitation No No 0.0% 0.0% $605,000 $0 $605,000 $0 $0 $0 $605,000 Mariposa Rd, Talpa St to Kingswood Dr, pavement rehabilitation No No 0.0% 0.0% $600,000 $0 $600,000 $0 $0 $0 $600,000 Air Expressway, George Blvd to Phantom West, pavement
rehabilitation No No 0.0% 0.0% $1,507,500 $0 $1,507,500 $0 $0 $0 $1,507,500 Ridgecrest Rd, Pahute Rd to Green Tree Blvd, pavement
rehabilitation No No 0.0% 0.0% $1,300,000 $0 $0 $1,300,000 $0 $0 $1,300,000 La Paz Dr, I-15 Ramps to 7th St, pavement rehabilitation No No 0.0% 0.0% $569,000 $0 $0 $569,000 $0 $0 $569,000 Seventh St, Mariposa Rd to Lorene Dr, pavement rehabilitation No No 0.0% 0.0% $955,000 $0 $0 $955,000 $0 $0 $955,000 Hesperia Rd, Bear Valley Rd to Seneca Rd, pavement
rehabilitation No No 0.0% 0.0% $3,200,000 $0 $0 $0 $3,200,000 $0 $3,200,000 Amargosa Rd, Avenal St to Bear Valley Rd, pavement rehabilitation No No 0.0% 0.0% $3, 110,000 $0 $0 $0 $0 $3,110,000 $3,110,000 Cobalt Rd, Dos Palmas Rd to Palmdale Rd, pavement rehabilitation No No 0.0% 0.0% $457,000 $0 $0 $0 $0 $457,000 $457,000 Sidewalk Connectivity Project(s) Citywide No No 0.0% 0.0% $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $1,500,000 Traffic Signal Security/Interconnect Component Upgrades No No 0.0% 0.0% $100,000 $75,000 $0 $0 $0 $0 $75,000 Traffic Control - Restriping No No 0.0% 0.0% $400,000 $400,000 $100,000 $100,000 $100,000 $100,000 $800,000 Concrete Access Ramps - various vocations No No 0.0% 0.0% $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $550,000 Concrete Sidewalk, Install or Repair - various locations No No 0.0% 0.0% $371,650 $371,650 $371,650 $371,650 $371,650 $371,650 $1,858,250 Traffic Signal Pedestrian System Upgrades No No 0.0% 0.0% $40,000 $10,000 $10,000 $10,000 $10,000 $10,000 $50,000 Traffic Signal UPS Replacement No No 0.0% 0.0% $50,000 $11,250 $11,250 $11,250 $11,250 $11,250 $56,250 Traffic Signal Video Detection Upgrades No No 0.0% 0.0% $100,000 $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 Citywide Pavement Rehabilitation, Seals and Overlays, Various Streets No No 0.0% 0.0% $0 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000 Cost Allocation No No 0.0% 0.0% $0 $383,013 $383,013 $383,013 $383,013 $383,013 $1,915,065 Engineering Services No No 0.0% 0.0% $0 $228,546 $235,403 $242,465 $249,739 $257,231 $1,213,383 Streets - Engineering No No 0.0% 0.0% $0 $707,962 $729,200 $751,076 $773,609 $796,817 $3,758,664 Traffic Signal Maintenance No No 0.0% 0.0% $0 $299,105 $308,078 $317,320 $326,840 $336,645 $1,587,988 Traffic Control - Signing & Striping No No 0. 0% 0.0% $0 $1,474,445 $1,518,678 $1,564,239 $1,611,166 $1,659,501 $7,828,029 Traffic Signal Excavation Equipment No No 0.0% 0.0% $55,000 $13,750 $0 $0 $0 $0 $13,750 $8,836,721 $9,614,772 $8,010,013 $8,472,266 $8,928,107 $43,861,879 Total Programming is currently 95% Total Estimated Programming: $43,861,879 Jurisdiction:26-076
8/18/2026
Fredy A. Bonilla, City Engineer
760-955-5170
Measure I Local Pass-through Program
FIVE YEAR CAPITAL IMPROVEMENT PLAN
Fiscal Years 2026/2027 thru 2030/2031
[email protected]
Projects Total:
Victorville
Current
Estimate
Current
Estimate TotalCurrent
Estimate
Current
Estimate
Current
Estimate
(Must not exceed 150% of Carryover Balance +
Total Estimated Revenue)
Is Project in
City's
Non-motorized
Transportation
Plan?
(Yes/No)
Does Project
have an ATP
Component?
(Yes/No)
Is the Project on the City's
Nexus Study List?
(Public/DIF Share %)
Estimated Total
Project Cost
Exhibit B
Expenditure Strategy
CITY OF VICTORVILLE
MEASURE I CAPITAL IMPROVEMENT PLAN
EXPENDITURE STRATEGY
Fiscal Year 2026/2027 – Fiscal Year 2030/2031
The City of Victorville has a carryover balance of $8,971,615 .00, in the Measure I Local Street fund and anticipates approximately $7.1 million in new revenue for FY26/27. In this next fiscal year, the City is planning to use approximately $5 .1 million for street new construction, reconstruction, rehabilitation and preservation capital projects. $3.7 million will be used for operations and maintenance. The remaining balance will be accumulated for planned future capital projects.
The City of Victorville ’s Measure I Capital Improvement Expenditure Strategy balances expenditures between different categories of projects based on the City’s needs. The project categories include the following: new construction; reconstruction and rehabilitation; maintenance; preliminary engineering and environmental studies; right of way acquisition; and final design. Also included are categorical expenditures for maintenance of roads, traffic controls, traffic signals, traffic engineering and the purchase of vehicles or equipment for street related purposes.
New construction may incorporate a complete streets approach to include widening existing roads and bridges, construction of bikeways, curbs, sidewalks, curb ramps and new traffic signals as an integral part of the street system. Reconstruction and rehabilitation can include bridge improvements, removing and replacing pavement sections and non- ADA compliant curb ramps and drive approaches, asphalt -concrete overlays of one inch or more in thickness or various other methods, including re- striping for bike lanes. Preservation or maintenance of roads can include thin overlays two inches or less, mircrosurfacing, cape seals, chips seals, and slurry seals. Traffic control includes the maintenance and operation of signing and striping including sign and marking replacements and new signs and markings. Traffic signal maintenance includes operations and maintenance for traffic signals and various equipment replacements or upgrades. Traffic engineering encompasses all traffic engineering activities.
Attachment B
Engineering 5-Year
Road CIP Plan
Updated
CITY OF VICTORVILLE
Engineering Department
8/13/2026
5-Year Road CIP
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 200 Measure I SB1 County Other TOTAL PS&E $ - $ - $ - $ - $ 125,000.00 $ - $ 125,000.00 CON $ 232,000.00 $ 232,000.00 $ 232,000.00 $ - $ 570,264.0 0 $ - $ 1,266,264.00 TOTAL $ 232,000.00 $ 232,000.00 $ 232,000.00 $ - $ 695,264 .00 $ - $ 1,391,264.00 Project Location
In April of 2025, San Bernardino County’s Department of Public Works contacted and notified the City of Victorville Engineering Department of the County’s initiation of an investigation for the potential installation of a signalized intersection on Ridgecrest Road.
The investigation focused on the offset intersection of Ridgecrest Road with Vista Point Drive and Bluff Crest Street. Following the investigation, County traffic engineering staff informed City staff that the collected traffic data supported the installation of a traffic signal, based on the traffic signal warrant analysis. The County requested the City’s input and participation in the project, as the centerline of Ridgecrest Road at the offset intersection serves as the boundary between the two agencies, effectively splitting the project area in half.
This project has been budgeted. The preparation of the plans, specifications, and engineering for this project will begin later this year.
Following completion of the plans and specifications, the project will be advertised for construction.
Ridgecrest Road at Bluff Crest Street and Vista Point Drive Traffic Signal Project
City of Victorville Page 1
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 2,773,000.00 $ 3,500,000.00 $ - $ - $ 6,273,000.00 TOTAL $ - $ - $ 2,773,000.00 $ 3,500,000.00 $ - $ - $ 6,273,000.00 Project Location
Air Expressway is an east-west corridor that connects National Trails Highway to US-395. The project scope of work will cover a segment of the road from National Trails Highway to George Boulevard. This existing section of road was last improved by the City In 2005. Air Expressway Is designated as one of the City's truck routes, resulting in high volumes of truck traffic between the SCLA and the surrounding business and Interstate 15. This project will address the significant deterioration the road has experienced by providing a full restoration of this segment of road. Restoring the pavement will result In a smoother and safer driving surface for the approximately 21,000 vehicles that use this arterial road daily. Furthermore, this project has been deferred from previous budgets, highlighting the ur
gency of addressing the deteriorating condition.
This project has been budgeted. The preparation of the plans, specifications, and engineering for this project will begin later this year.
Following completion of the plans and specifications, the project will be advertised for construction.
Air Expressway, National Trails Highway to George
Boulevard, pavement rehabilitation
City of Victorville Page 2
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 202 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ 1,500,000.00 $ 250,000.00 $ 422,000.00 $ 500,000.00 $ - $ - $ 2,672,000.00 TOTAL $ 1,500,000.00 $ 250,000.00 $ 422,000.00 $ 500,000.00 $ - $ - $ 2,672,000.00 Project Location
This project will rehabilitate the two-lane segment between US-395 and Bellflower Street, which is classified as a super arterial.
Existing roadway records indicate portions of the corridor date back to 1994, while the age of other sections remains unknown due to the absence of historical plans. As a designated truck route carrying approximately 16,000 vehicles per day, the roadway is subjected to heavy traffic loading that has accelerated pavement deterioration. In addition, stormwater flows frequently overtop the roadway, creating safety concerns, limiting access, and increasing maintenance demands. The proposed project will provide full roadway reconstruction and install stormwater culvert crossings beneath the roadway to improve drainage, enhance safety, reduce maintenance requirements, and restore a smooth, reliable driving surface. Identified through the City’s pavement management program as a project with a high benefit-to-cost ratio, the roadway rehabilitation is included in the City’s five-year Measure I Capital Im
provement Program, reflecting its importance to the regional transportation network.
This project has been budgeted. The preparation of the plans, specifications, and engineering for this project are being developed in- house by Engineering Department staff. Following completion of the plans and specifications, the project will be advertised for construction.
Bear Valley Road, US 395 to Bellflower Road,
pavement rehabilitation
City of Victorville Page 3
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding5 Funding6 TOTAL CON $ - $ - $ 1,800,000.00 $ 1,000,000.00 $ - $ - $ 2,800,000.00 TOTAL $ - $ - $ 1,800,000.00 $ 1,000,000.00 $ - $ - $ 2,800,000.00 Project Location
Amargosa Road between Dos Palmas Road and Village Drive is a key east–west arterial corridor spanning approximately 3 miles that provides regional and local connectivity, including access to residential, commercial, and commuter routes parallel to I-15. The segment shows varying PCI conditions, reflecting overall pavement deterioration and inconsistent roadway performance.
Rehabilitation is needed to address failing pavement sections, imp rove safety and ride quality, extend service life, and reduce future maintenance costs. Timely improvements will preserve this critical corridor and maintain reliable regional mobility.
This project has not been budgeted and is planned to be in the FY 2027/28 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Amargosa Road, Dos Palmas Road to Village Drive,
pavement rehabilitation
City of Victorville Page 4
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 605,000.00 $ 750,000.00 $ - $ - $ 1,355,000.00 TOTAL $ - $ - $ 605,000.00 $ 750,000.00 $ - $ - $ 1,355,000.00 Project Location
El Evado Road between Palmdale Road and Begonia Road serves residential neighborhoods and provides important local connectivity within the City’s transportation network. T he roadway has a Pavement Condition Index (PCI) ranging from 25 to 32, indicating the pavement is in poor condition and experiencing significant deterioration.
Rehabilitation is needed to address pavement distress, improve roadway safety and ride quality, extend pavement life, and reduce long- term maintenance costs. Timely improvements will preserve this vital local roadway and maintain reliable access for residents, emergency services, and daily traffic.
This project has not been budgeted and is planned to be in the FY 2027/28 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
El Evado Road, Palmdale Road to Begonia Road,
pavement rehabilitation
City of Victorville Page 5
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 600,000.00 $ 750,000.00 $ - $ - $ 1,350,000.00 TOTAL $ - $ - $ 600,000.00 $ 750,000.00 $ - $ - $ 1,350,000.00 Project Location
Mariposa Road between Talpa Street and Kingswood Drive is an important arterial roadway that provides access to residential neighborhoods, businesses, and community destinations. The segment currently has a Pavement Condition Index (PCI) of 29, indicating the roadway is in poor condition and exhibiting significant pavement deterioration.
Rehabilitation is needed to address existing pavement distress, improve ride quality and safety, extend the roadway's service life, and reduce future maintenance costs. Preserving this segment will help maintain reliable access and support efficient traffic flow along a ke
y corridor within the City's transportation network.
This project has not been budgeted and is planned to be in the FY 2027/28 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Mariposa Road, Talpa Street to Kingswood Drive,
pavement rehabilitation
City of Victorville Page 6
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 1,507,500.00 $ 1,000,000.00 $ - $ - $ 2,507,500.00 TOTAL $ - $ - $ 1,507,500.00 $ 1,000,000.00 $ - $ - $ 2,507,500.00 Project Location
Air Expressway is an east-west corridor that connects National T rails Highway to US-395. The project scope of work will cover a segment of the road from National Trails Highway to George Boulevard. This existing section of road was last improved by the City In 2005. Air Expressway Is designated as one of the City's truck routes, resulting in high volumes of truck traffic between the SCLA and the surrounding business and Interstate 15. This project will address the significant deterioration the road has experienced by providing a full restoration of this segment of road. Restoring the pavement will result In a smoother and safer driving surface for the approximately 21,000 vehicles that use this arterial road daily. Furthermore, this project has been deferred from previous budgets, highlighting the ur
gency of addressing the deteriorating condition.
This project has not been budgeted and is planned to be in the FY 2027/28 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Air Expressway, George Boulevard to Phantom West,
pavement rehabilitation
City of Victorville Page 7
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 1,300,000.00 $ 1,750,000.00 $ - $ - $ 3,050,000.00 TOTAL $ - $ -
$ 1,300,000.00 $ 1,750,000.00 $ - $ -
$ 3,050,000.00
Project Location
Ridgecrest Road is classified as an arterial roadway on a north-south alignment and carries a high volume of automobile traffic, accommodating approximately 19,000 vehicles per day. The current conditions of the roadway pavement exhibit various forms of distress indicating that the asphalt and subgrade soils have reached the end of their design life. Furthermore, in the Pavement Management Report of 2024, the PCI survey found this road to range from 24 to 64, considered to be a poor pavement condition.
This project has not been budgeted and is planned to be in the FY 2028/29 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Ridgecrest Road, Pahute Road to Green Tree Boulevard,
pavement rehabilitation
City of Victorville Page 8
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 569,000.00 $ 1,250,000.00 $ - $ - $ 1,819,000.00 TOTAL $ - $ - $ 569,000.00 $ 1,250,000.00 $ - $ - $ 1,819,000.00 Project Location
La Paz Drive between the I-15 ramps and 7th Street is a critical arterial connector that provides access between Interstate 15, commercial developments, residential neighborhoods, and the Historic Route 66 corridor. The roadway accommodates substantial traffic volumes associated with freeway access, local circulation, commercial activity, freight movement, and emergency response services.
The segment currently has a Pavement Condition Index (PCI) of 32, which is classified as poor condition and indicates significant pavementdeterioration.Existingdistressincludesextensivecracking,rutting,raveling,andsurfacefailuresthatnegativelyimpactride quality and increase maintenance needs.
This project has not been budgeted and is planned to be in the FY 2028/29 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
La Paz Drive, I-15 Ramps to 7th Street,
pavement rehabilitation
City of Victorville Page 9
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 955,000.00 $ 500,000.00 $ - $ - $ 1,455,000.00 TOTAL $ - $ -
$ 955,000.00 $ 500,000.00 $ - $ -
$ 1,455,000.00
Project Location
7th Street between Mariposa Road and Lorene Drive is a major east-west arterial corridor that serves as a primary route for residents, businesses, and visitors traveling through the City of Victorville. The roadway provides access to commercial establishments, residential neighborhoods, schools, and community services, while also serving as an important connection to the Historic Route 66 corridor and surrounding transportation network.
The segment currently has a Pavement Condition Index (PCI) of 32, indicating the roadway is in poor condition and has experienced significant pavement deterioration. Existing pavement distress, including cracking, rutting, and surface degradation, has reduced ride quality and increased maintenance requirements. As pavement conditions continue to decline, the cost of preserving the roadway will increase substantially, potentially requiring more extensive and costly reconstruction in the future.
This project has not been budgeted and is planned to be in the FY 2028/29 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs. 7th Street, Mariposa Road to Lorene Drive,
pavement rehabilitation
City of Victorville Page 10
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 3,200,000.00 $ 3,500,000.00 $ - $ - $ 6,700,000.00 TOTAL $ - $ - $ 3,200,000.00 $ 3,500,000.00 $ - $ - $ 6,700,000.00 Project Location
Hesperia Road between Bear Valley Road and Seneca Road is a major north–south arterial that provides critical access to residential neighborhoods, commercial centers, schools, and regional destinations within the Victor Valley. The segment exhibits varying Pavement Condition Index (PCI) values, ranging from 30 to 72, indicating inconsistent pavement conditions and overall roadway deterioration.
Rehabilitationisneededtoaddresspavementdistress,improve safetyandridequality,enhancemobility,andextendtheservice lifeof this heavily traveled corridor. Timely improvements will reduce future maintenance costs and ensure continued reliable access for residents, businesses, and emergency services.
This project has not been budgeted and is planned to be in the FY 2029/30 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Hesperia Road, Bear Valley Road to Seneca Road,
pavement rehabilitation
City of Victorville Page 11
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 3,110,000.00 $ 2,750,000.00 $ - $ - $ 5,860,000.00 TOTAL $ - $ - $ 3,110,000.00 $ 2,750,000.00 $ - $ - $ 5,860,000.00 Project Location
Amargosa Road between Avenal Street and Bear Valley Road is a major arterial corridor providing critical north–south and east–west regional connectivity, serving residential neighborhoods, commercial areas, and commuter traffic. This segment has a Pavement Condition Index (PCI) as low as 21, indicating very poor pavement condition and advanced structural deterioration.
Rehabilitation is needed to address severe pavement distress, improve safety and ride quality, and prevent continued rapid degradation that would lead to more costly reconstruction. Timely improvements will extend pavement life, reduce maintenance demands
, and maintain reliable mobility along this important corridor.
This project has not been budgeted and is planned to be in the FY 2030/31 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Amargosa Road, Avenal Street to Bear Valley Road,
pavement rehabilitation
City of Victorville Page 12
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 457,000.00 $ 750,000.00 $ - $ - $ 1,207,000.00 TOTAL $ - $ -
$ 457,000.00 $ 750,000.00 $ - $ -
$ 1,207,000.00
Project Location
Cobalt Road between Dos Palmas Road and Palmdale Road serves as an important local connector supporting residential access and neighborhood circulation within the City’s roadway network. The segment has a Pavement Condition Index (PCI) of 29, indicating the roadway is in poor condition with significant pavement deterioration.
Rehabilitation is needed to address existing pavement distress, improve safety and ride quality, extend the service life of the roadway, and reduce future maintenance costs. These improvements will help maintain reliable local access for residents and emergency services.
This project has not been budgeted and is planned to be in the FY 2030/31 Budget. Preparation of plans, specifications, and engineering for the advertisement and construction of this project will take place when funding is approved to support these costs.
Cobalt Road, Dos Palmas Road to Palmdale Road,
pavement rehabilitation
City of Victorville Page 13
Background
Current Status
Estimated Costs
Phase Fund 100 Fund 221 Fund 352 Fund 357 Fund 410 Fund 425 TOTAL CON $ 250,000.00 $ 3,280,745.00 $ 2,000,000.00 $ 850,000.00 $ 342,000.00 $ 248,500.00 $ - TOTAL $ 250,000.00 $ 3,280,745.00 $ 2,000,000.00 $ 850,000.00 $ 342,000.00 $ 248,500.00 $ 6,971,245.00 Project Location
Mojave Drive Road Improvements Phase 1
This improvement project will reconstruct Mojave Drive from Amargosa Road to I-15 Right of Way. New improvements will be constructed between Condor Road and Amargosa Road involving roadway widening along the northerly side or west bound lanes to includeanewthirdlane.Thestreetimprovementswillalsoincludearaisedlandscapedmedian,newcurbandgutter,sidewalk,ADA- compliant curb ramps, driveway approaches, fire hydrants, crosswalks, streetlights, bike lane and signage. Sidewalk improvements willbelimitedtofontingindividualpropertieswherepublicright-of-wayisavailabletoconstructit.Theremainingsidewalkgapsmaybe addressed in the Mojave Drive Phase III project if public right-of-way is acquired. Underground improvements will include the construction of a new storm drain system from Don Roberto Drive to a point where it will connect to the channel under-crossing the road between Village Dr and I-15. Other underground improvements will include the construction of a 12 inch waterline and adjustments to the existing sewer system.
Advertisement preparations for construction of this project are underway. It is anticipated work will begin late summer or this fall and completed in the summer of 2027.
City of Victorville Page 14
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ 5,955,000.00 $ 3,600,000.00 $ - $ - $ 9,555,000.00 TOTAL $ - $ - $ 5,955,000.00 $ 3,600,000.00 $ - $ - $ 9,555,000.00 Project Location
Mojave Drive Road Improvements Phase 2
The Mojave Drive Improvements Project will rehabilitate Mojave Drive from US 395 to Amargosa Road. The project scope of work will include a mix of reconstruction, rehabilitation and preservation treatments along the existing roadway. Improvements with this phase may include road widening and construction of curb, gutter, and sidewalk at two locations where the road passes underneath LADWP power transmission lines crossing the road.
The Project is under development in house with Engineering department staff. The full project scope of work for pavement rehab work is still under evaluation and development. An encroachment permit application for the road widening and parkway improvements has been submitted to LADWP. No response to the application has been received to date. If LADWP does not respond in sufficient time to finalize the plans for this project, the road widening may be included with Phase III.
City of Victorville Page 15
Background
Current Status
Estimated Costs
Phase Fund 352 Fund 100 Measure I SB1 Funding 5 Funding 6 TOTAL CON $ - $ - $ - $ - $ - $ - $ - TOTAL $ - $ - $ - $ - $ - $ - $ - Project Location
Mojave Drive Road Improvements Phase 3
The Mojave Drive Road Improvements Phase 3 project will be for a section of the road from Seventh St to Amargosa Rd. The scope of work proposed may include the following infrastructure improvements. From Condor Road to I-15 on and off ramps, right-of-way (ROW) acquisition and roadway widening from four to six travel lanes, the replacment of curb, gutters and sidewalk, and the replacement of the traffic signal at Village Dr to accommodate the widening. From I-15 to Seventh Street, the project will reconstruct the roadway section, install a new traffic signal at 6th Street, and upgrade curb ramps, sidewalks, and driveways to meet ADA standards. From Amargosa Rd to Condor Rd, the scope fo work will include the ROW acquistion and construction of missing sidewalk se
gments that were not constructed in Phase I.
The Project was selected to receive a Surface Transportation Block Grant (STBG) from Southern California Association of Governments (SCAG). This grant includes federal funding. Engineering has applied for and recieved the finance letter from Caltrans for the grant funding. Additional funding is being secured from SBCTA for Measure I Major Local Highway Program funding to furhter support the project. A funding agreement with SBCTA will require City Council approval to move foward with the additional project funds. The acceptance of grant funding and a budget amendment will be proposed to the City Council soon. Following acceptance of the grant funding, approval of adding the project to the capital program and the funding agreement with SBCTA, Engineering anticipates releasing a Request for Proposals (RFP) by Fall 2026 to obtain the services of a consultant for the ROW acquisition, development of evironmental documents, and design of the project.
City of Victorville Page 16
Project Fund 352 Fund 357 Fund 200 Measure I SB1 County Fund 100 Fund 425 Fund 410 Ridgecrest Rd at Bluff Crest St/Vista Point Dr Traffic Signal $ 232,000.00 $ 232,000.00 $ 232,000.00 $ - $ 695,264.00 Air Expy, Natl Trails Hwy to George Blvd, pavement rehab $ - $ - $ 2,773,000.00 $ 3,500,000.00 $ - Bear Valley Rd, US395 to Bellflower Rd, pavement rehab
$ 1,500,000.00 $ 422,000.00 $ 500,000.00 $ - Amargosa Rd, Dos Palmas Rd to Village Dr, pavement rehab $ - $ - $ 1,800,000.00 $ 1,000,000.00 $ - El Evadao Rd, Palmdale Rd to Begonia Rd, pavement rehab $ - $ - $ 605,000.00 $ 750,000.00
$ -
Mariposa Rd, Talpa St to Kingswood Dr, pavement rehab $ - $ - $ 600,000.00 $ 750,000.00
$ -
Air Expy, George Blvd to Phantom West, pavement rehab $ - $ - $ 1,507,500.00 $ 1,000,000.00 $ -
Ridgecrest Rd, Pahute Rd to Green Tree Blvd, pavement rehab $ - $ - $ 1,300,000.00 $ 1,750,000.00 $ - La Paz Dr, I-15 Ramps to 7th St, pavement rehab $ - $ - $ 569,000.00 $ 1,250,000.00 $ -
7th St, Mariposa Rd to Lorene Dr, pavement rehab $ - $ - $ 955,000.00 $ 500,000.00 $ -
Hesperia Rd, Bear Valley Rd to Seneca Rd, pavement rehab $ - $ - $ 3,200,000.00 $ 3,500,000.00 $ - Amargosa Rd, Avenal St to Bear Valley Rd, pavement rehab $ - $ - $ 3,110,000.00 $ 2,750,000.00 $ - Cobalt Rd, Dos Palmas Rd to Palmdale Rd, pavement rehab $ - $ - $ 457,000.00 $ 750,000.00
$ -
Mojave Drive Road Improvement Phase 1, pavement rehab
$ 2,000,000.00 $ 850,000.00 $ - $ - $ 3,280,745.00 $ - $ 250,000.00 $ 248,500.00 $ 342,000.00
Mojave Drive Road Improvement Phase 2, pavement rehab $ - $ - $ 5,955,000.00 $ 3,600,000.00 $ -
Mojave Drive Road Improvement Phase 3, pavement rehab $ - $ - $ - $ - $ -
TOTAL $3,732,000 $850,000 $232,000 $23,485,500 $24,880,745 $695,264 $250,000 $248,500 $342,000 5-Year Road CIP - Cost & Revenue Requirements
City of Victorville Page 17
Item Number: 27
City Council / Board of Directors
Written Communications
Meeting of: August 18, 2026
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Approval of the purchase of a Ford F-750 Compacting Rear-Loader Trash Truck from Rush Truck Centers of California
Recommendation:
That the Honorable City Council:
(1) Approve the purchase of a Ford F-750 Compacting 14-Cubic Yard Rear-Loader Trash Truck for a total amount not to exceed $205,931.92 from Rush Truck Centers of California;
(2) Authorize the City Manager to execute any and all documents necessary for the purchase.
Fiscal Impact:
Acting in accordance with the staff recommendation will result in a fiscal impact of $205,931.92, which has been allocated in the Measure P, Illegal Dump Abatement account. Funds for this expense were appropriated in the Fiscal Year 2026/2027 budget.
The following table provides the account code for the funding:
Account Description Account Code Amount
Measure P – Illegal Dump Abatement 1054201-55040-70756 $205,931.92 The total cost of the vehicle is $205,931.92, which includes a unit cost of $188,989, license and registration fees of $287, a document fee of $80, a CA tire fee of $10.50, and sales tax of $16,565.42. Sales tax at a rate of 8.75 percent is applied to the unit cost, $250 of the license and registration fees, and the document fee, as detailed in Attachment A.
Strategic Plan Goal:
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The procurement of a new compacting rear-loader trash truck supports Strategic Plan Goal E: Invest in Infrastructure, which focuses on creating a healthy and livable community by maintaining the City’s assets through effective investment in equipment and innovation. The purchase of this unit will provide Environmental Programs staff with reliable equipment to support illegal dump removal, homeless encampment cleanups, and the ongoing maintenance of public spaces. This addition will expand fleet capacity, improve operational efficiency, reduce equipment downtime, and help ensure the City’s infrastructure remains safe, resilient, and well maintained for years to come.
Background:
The Public Works Department Environmental Programs Division is responsible for maintaining critical infrastructure throughout the City, including homeless camp abatements, illegal dumping, and other essential maintenance activities.
Staff currently operate two compacting trash trucks, a 2005 C7500 Chevy and a 2023 Ford F-750. Both vehicles are essential for addressing illegal dumping and homeless encampments citywide. However, the 2005 Chevy compacting trash truck (Unit #12932, Asset #10569) is nearly 20 years old and well past its useful life. It has become increasingly unreliable and has required frequent repairs in recent years.
From January 2023 through February 2024, a 14-month period, the 2005 truck was out of service for a total of 307 days. This amounted to more than ten months of lost operation time. The extended downtime significantly reduced the number of illegal dump cleanups and homeless encampment abatements staff were able to complete. In the past five years, Fleet has spent nearly 500 labor hours repairing this single vehicle, not including the time required to track down obsolete and hard-to-find parts.
During that same 14-month period, the truck was out of service due to issues such as a faulty fuel pump, tail lamp failures, and repeated hydraulic system repairs. Outsourcing replacement parts often resulted in long delays, and many components have become increasingly difficult or impossible to locate because of the truck’s age and limited parts availability.
In 2023, the engine was replaced due to performance and emission issues. Even after the engine replacement, the truck continued to experience mechanical issues. Over the past three years, it has required multiple major repairs, including work on the hydraulic system, exhaust system, and parking brake lever.
Relying on only one fully functional compacting trash truck has created a significant operational burden and a bottleneck in productivity. This is especially challenging when responding to urgent encampment cleanups within 500 feet of sensitive areas, as required by Victorville Municipal Code Section 13.27.040 Abatement Procedures. This limitation demonstrates the need for additional resources to ensure encampments and illegal dumping are addressed quickly and effectively.
Discussion:
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To ensure the Public Works Environmental Programs Division has the resources needed to meet ongoing service demands, staff identified the purchase of a new 14-cubic-yard 4 8
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rear loader compacting trash truck as essential for maintaining timely and effective responses to maintenance needs and for replacing the 2005 truck.
The proposed vehicle is a Ford F-750 with a 7.3L V8 gas engine and a 14-yard Pak-Mor body built for heavy-duty cleanup work. The cab and chassis are painted white and include autolock doors, power windows, Bluetooth, and easy-to-clean grey vinyl seating.
The truck has an R100 square-style body and comes with a winch system that includes at least 100 feet of cable to help load bulky debris. It is equipped with a Chelsea PTO and P50 hydraulic pump for reliable power, as well as a street access door for safer operation.
For visibility and safety, the truck includes full LED lighting, hopper lights, front and rear strobes, and a rear traffic advisor. A Safety Vision backup camera supports safer maneuvering. The truck also includes a toolbox, a holder for shovels and brooms, and an ANSI-approved riding step for safe crew transport in the field.
The purchase of this trash truck will directly support the Environmental Programs Division by improving its ability to respond to illegal dumping and encampment cleanups. Having reliable equipment will give staff the tools they need to keep streets and public areas free of trash, debris, and hazardous waste. The new truck will expand the division’s capacity and improve day-to-day efficiency. It will also ensure staff have dependable equipment to meet daily service needs, respond quickly to emergencies, and help maintain safe, resilient, and well-kept City infrastructure.
The proposed Ford F-750 gasoline-powered unit is a licensed vehicle that will be used in both on-road and off-road solid waste operations and is necessary to maintain safe, reliable, and efficient refuse collection services. While the California Air Resources Board (CARB) has adopted regulations requiring a phased transition to zero-emission medium- and heavy-duty vehicles and off-road equipment, internal combustion engine (ICE) vehicles and equipment, including gasoline- and diesel-powered vehicles and equipment, remain necessary because currently available zero-emission alternatives are not yet capable of meeting the City’s operational and public service requirements. Due to the unit’s required payload capacity, duty cycle, operating range, and combination of on-road and off-road operating conditions, the City has evaluated currently available zero- emission alternatives and determined that they are not capable of reliably performing the required functions without adversely affecting service levels, operational efficiency, or reliability.
To prepare for long-term regulatory compliance, the City retained Kittelson & Associates, Inc. to prepare a Zero-Emission Fleet Transition Assessment, which is currently in its final stages. The assessment evaluates available zero-emission technologies, identifies operational and infrastructure constraints, assesses charging infrastructure capacity and future infrastructure needs, analyzes implementation costs and funding opportunities, and establishes a phased strategy for transitioning the City’s fleet in accordance with CARB requirements.
Approval of this purchase addresses an immediate operational need while remaining consistent with the City’s long-term zero-emission fleet transition strategy. This 4 8
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acquisition will not adversely affect the City’s long-term compliance with CARB requirements and supports the continued delivery of essential public services during the transition to zero-emission technologies.
In accordance with Victorville Municipal Code (VMC) Section 2.28.100(a), purchases of supplies and equipment exceeding $50,000 shall be solicited through the formal bidding procedure. The Request for Bid (RFB) was advertised in the Daily Press on April 29, 2026, and in the San Bernardino Sun on May 6, 2026. The RFB was released on the OpenGov eProcurement Portal and posted to the City of Victorville website on April 29, 2026. Eighteen companies downloaded the RFB and there were over 200 project views on the portal.
The following companies submitted their bids:
Company Bid Amount
Rush Truck Centers of California $205,931.92
Puente Hills Ford $222,571.56
Hansel Ford $235,476.00
Public Works staff and the Fleet Maintenance Division have reviewed the specifications and quotes provided by all three bidders and determined that they meet or exceed operational needs. The delivery of the unit is anticipated within four to six months following approval and receipt of a Purchase Order.
Staff recommend that the City Council approve the purchase of a Ford F-750 Compacting 14-Cubic Yard Rear-Loader Trash Truck from Rush Truck Centers of California for a total amount not to exceed $205,931.92.
Staff is available for any questions the City Council may have.
Prepared By:
Sarah St. Louis, Management Specialist
Attachments: A. Rush Truck Centers of California Bid Proposal Attachment A
Rush Truck Centers of
California Bid Proposal
CITY OF VICTORVILLEJM26-097 FURNISH & DELIVER 2025 FORD F750 COMPACTING REAR-LOADER TRASH TRUCKBID PROPOSAL FORM The undersigned hereby agrees to furnish and deliver the item(s) listed below in accordance with the specifications (which have been carefully examined and are attached hereto) on file in the Finance Department. Vendor shall provide Product Specifications, Complete Detailed Drawing(S), and Other Descriptive Matter for each vehicle proposed.VEHICLE #1 (AIRPORT)Qty. Description of Items (s)Unit PriceTotal Price One (1) ___(As Specified) 2025- Ford F750 Compacting Rear Loader Trash Truck $$ One (1) ____ (Alternate) Description of Alternate:$$Availability Sub Total$ 8.75% Sales Tax $ Factory Order License & Reg.$ Document Fee $ CA Tire Fee$ TOTAL BID PRICE $ TOTAL BID IN WORDS:Warranty Period in months:FOB: Victorville, CA (Freight Prepaid): Number of days till delivery upon receipt of Purchase Order:
Rush Limited WarrantyNEW PRODUCTS – MANUFACTURER WARRANTIES ONLY. Any warranties on any new product(s) sold by Rush are limited only to any printed warranty provided by the applicable manufacturer of the product. EXCEPT FOR ANY SUCH WARRANTIES MADE BY MANUFACTURERS, THE PRODUCT(S) ARE SOLD WITHOUT ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, EACH OF WHICH IS EXPRESSLY DISCLAIMED. USED PRODUCTS – NO WARRANTIES. All used product(s) sold by Rush are sold on an “AS IS, WHERE IS” basis, without any warranties by Rush. EXCEPT FOR ANY MANUFACTURERS’ WARRANTIES THAT MAY STILL BE IN EFFECT, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY DISCLAIMED. LIMITED WARRANTY ON SERVICES. Rush warrants that all services performed by Rush for a customer, including repair, maintenance and installation services (“Services”), will be performed in a good and workmanlike manner (“Services Warranty”). The Services Warranty is valid for a period of ninety (90) days from the date the Service is completed. Customer’s sole and exclusive remedy, and Rush’s entire liability, under the Services Warranty is the repair of any nonconforming portion of the Services. RUSH PROVIDES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, CONCERNING ITS SERVICES. The Services Warranty is strictly limited to Services performed by Rush for customer. Rush does not warrant any services provided by any third-party. Any warranties are solely those that are provided by the third-party service provider.
SPECIFICATIONS2025 Ford F750 Compacting Rear Loader Trash TruckThis bid specification slates the requirements for a 2025 Ford F750 with a 14-yard rear loading Pak-Mor R100 Refuse Body. All specifications listed are minimum requirements and are written to allow all major truck/utility vehicle manufacturers the opportunity to bid. All bids received must be equal to the units being replaced to be considered viable candidates. Any deviation or change from specifications shall be clearly delineated by bidder. MINIMUM REQUIREMENTS BIDDERS RESPONSEUnless otherwise noted, all specifications are “minimums”.MEET EXCEPTIONS4x2 DRW, 7.3L V8 Gas Engine, With Torq Shift-HD 6 Speed AUTOMATIC TRANSMISSION and a 14 Yard Pak-Mor rear loading refuse body. Exterior color – White – purest available Power train & Handling 7.3L 2V DEVCT NA PFI V8 Gas engine Torq shift 6-Speed Automatic Transmission Brakes, Hydraulic w/Traction Control Drivetrain – 4x2Power Steering Oil Maintenance Minder Front Stabilizer bar Heavy Duty gas shocks Fuel Tank – 50 Gallons Alternator – 210 amp Chelsea PTO with P50 pump Wheels & Tires Front Wheels - 22.5” x 8.25” – Steel disc, 10-hole-hub piloted, 5 hand hold, powder-coated white
MEETMEETMEET
Rear Wheels – 22.5” x 8.25” – Steel disc, 10-hole-hub piloted, 5 hand hold, powder-coated white SafetyStability Control Airbags-Driver and Passenger Rear view CameraSafety belts-Belt-Minder front safety belt reminderAnti-Theft System Sos Post Crash Alert SystemHill Start Assist Comfort and Convenience Air Conditioning-Manual, Single Zone Handles-Grab Power Equipment Group- Power door-locks & windows Instrumentation- Multifunction switch message center Power steering Audio-AM/FM stereo, Bluetooth capable Rear View Camera Power points – Two (2) in instrument panel Mirrors – Dual Rectangular Velvac XL2020 Integral Spot Mirror, Sail Type, 96” Width, manual Fold, Solid Black Finish - Integrated clearance lamps/turn signals Seating and Interior Seats- 30/0/30 -Fixed Driver and Fixed Passenger Seats with Consolette Steering wheel-mounted controls Vinyl Black Flooring Upfitter Switches – mounted in the center Instrument panel 110V AC outlet Rear view camera display
MEETMEETMEETMEET
Exterior Glass- Solar tinted Tow hooks – (2) front Bumper- Front black painted full width Headlamps- AutoLamp (Auto on/off Headlamps) Door handles – black Exterior color-White (purest available)Mirrors-Manual Telescoping/Folding - 14-yard Pak-Mor R100 square body w/R100 Style cylinders. Winch system with minimum 100 ft. cable and guide winch cable. Chelsea Pto with P50 pump. Steet access door. All LED lights, must have Hooper lights. Back-up Alarm-active while in reverse Five shovel and broom holders mounted on curb side. ANZI approved riding steps ADDITIONAL OPTIONS Extra key (3 sets Minimum) Manual-Shop (CD-ROM/Memory stick) Extended Warranty 5Year/100,000MI Additional Equipment LED Work Lights 4 corner Strobes – Amber in Color Rear Traffic Advisor Ecco 3400 series 55 inch amber in c0loar-or similar MEET
48” Roof mounted Light bar Ecco 12+ Pro Vantage series PN: 12-52313-ES or SimilarTool Box – mounted on curb side under body
Item Number: 28
City Council / Board of Directors
Written Communications
Meeting of: August 18, 2026
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Purchase of Stationary Emergency Generator for the Amethyst Booster Pump Station Recommendation:
That the Honorable Board of Directors authorize the purchase of one (1) Caterpillar stationary emergency generator from Quinn Power Systems in the amount of $930,271.30, utilizing Sourcewell Cooperative Purchasing Contract provisions.
Fiscal Impact:
This project was originally appropriated in Fiscal Year 2024/2025 and funds remain available within the Fiscal Year 2026/2027 annual capital budget under the Water Fund (Fund 410) in account Water – Supply – Stationary Generator at Amethyst Booster Station (4100500-55040-74540) with an available balance of $952,500.
Acting in accordance with the staff recommendation will result in a fiscal impact of $930,271.30. This price includes freight, sales tax and factory start-up service. The Sourcewell discount will result in total savings of $201,644 between the equipment savings and service savings. The sales tax was not included in the quote but has been calculated at the 8.75% rate as the equipment will be delivered to the Amethyst Booster Station.
There are sufficient funds available to cover this purchase, and no additional appropriation is needed.
Strategic Plan Goal:
This purchase will align with Strategic Goal E – Invest in Infrastructure: Ensuring the community’s wellbeing and sustaining a healthy, livable community by investing in the necessary resources to maintain and improve the Victorville Water District’s (District) water infrastructure. Approval of this purchase strengthens the District’s ability to operate critical facilities during unplanned power outages or power grid issues, maintain 4 8
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continuous potable water service, and support fire suppression capabilities across multiple pressure zones.
Background:
The Victorville Water District relies on 34 active groundwater wells and four booster pump stations to provide potable water service to residents, schools, hospitals, businesses, and critical infrastructure. These facilities operate entirely on commercial electrical power supplied by Southern California Edison (Edison) and are vulnerable to outages caused by earthquakes, severe weather, Public Safety Power Shutoffs (PSPS) events, cyber-related grid failures, or other disruptions.
While the District maintains sufficient treated water storage for short-term interruptions, extended outages can halt groundwater production, reduce system pressures, limit water distribution, jeopardize potable water supply, and significantly impair fire flow capabilities.
Permanent stationary generators are already installed at a limited number of critical facilities; however, equipping every site with a permanent generator is not financially or operationally practical.
The Amethyst Booster Pump Station, containing Well 129, three booster pumps, blending infrastructure, and key distribution system valving, is one of the most operationally complex and strategically important sites in the District. Both the 2021 Water Master Plan and the 2026 Water Master Plan identify Amethyst as a priority location for permanent backup power due to its central role in pressure regulation, blending operations, and maintaining distribution reliability across multiple pressure zones.
Discussion:
Given Amethyst’s critical function in the overall water system, uninterrupted operation during prolonged electrical outages is essential. This facility’s ability to move water strategically between pressure zones, maintain system pressure, and support water quality management makes it uniquely sensitive to power disruptions. Portable generators, while valuable for short-term or rotational support, cannot provide the reliable, continuous, dedicated power needed to sustain Amethyst’s full operational capacity during extended emergency conditions.
A permanent stationary generator at Amethyst ensures dependable standby power without requiring equipment rotation, logistical deployment, or staff redeployment. This dedicated backup power solution supports sustained groundwater production, booster operation, blending processes and pressure management, ultimately protecting water service continuity and fire flow availability throughout the distribution system. District staff have been in communication with the Fleet Division and the Mojave Desert Air Quality Management District (MDAQMD) to ensure compliance with CARB and state requirements. MDAQMD recently advised that the guidelines for permanent generators would be changing and advised starting the procurement and permitting process would be beneficial.
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In review of procurement options, it was determined the best course of procurement was to utilize a Sourcewell Contract pursuant to VMC 2.28.120(a). Quinn Power Systems’ proposed Caterpillar Model C32 GC (D1250 GC), diesel generator meets District requirements for reliability, seismic certification, standby power capacity, and fleet/equipment standardization. Its configuration, including a UL-142 2,100-gallon sub-base fuel tank, passive DPF system, and a 1250 kW resistive load bank, supports long-term emergency operation and regulatory compliance. Quinn is the authorized regional Caterpillar distributor and provides factory-certified warranty support, parts availability, and technical service.
Purchasing through Sourcewell Contract No. 092222-CAT satisfies the District’s procurement requirements, as stipulated in VMC 2.28.120(a), ensures competitively solicited pricing, and yields substantial savings. The addition of permanent standby power at the Amethyst Booster Station is consistent with the District’s system resiliency goals, improves emergency preparedness, protects public health and safety, and ensures reliable water service during extended grid outages.
Staff are available for any questions you may have.
Prepared By:
Marc Betts, SCADA/Elec/OT Superintendent
Melissa Krejckant, Public Works & Water Administrative Manager Attachments: A. Sourcewell Contract Documentation
B. Generator Specification & Quote
Attachment A
Sourcewell Contract
Documentation
092222-CAT
Rev. 3/2022 1
Solicitation Number: RFP #092222 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Caterpillar Inc., 5212 N. OConnor Blvd., Suite 1100, Irving, TX 75039 (Supplier). Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Sourcewell issued a public solicitation for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services from which Supplier was awarded a contract. Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewells cooperative purchasing contracts (Participating Entities). 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires November 22, 2026, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier. C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. 092222-CAT
Rev. 3/2022 2
Suppliers Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. All Equipment and Products provided under this Contract must be new and the current model. Supplier may offer used, close-out or refurbished Equipment or Products if they are clearly indicated in Suppliers product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entitys site. This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship. In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Suppliers dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturers warranty that extends beyond the expiration of the Suppliers warranty will be passed on to the Participating Entity. C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Suppliers authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Suppliers responsibility to ensure Sourcewell receives the most current information. 3. PRICING All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Suppliers Proposal. When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entitys total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entitys requested delivery location. Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily 092222-CAT
Rev. 3/2022 3
apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity. Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition. Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products. B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax-exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax-exempt entity. C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. 4. PRODUCT AND PRICING CHANGE REQUESTS Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator. At a minimum, the request must: Identify the applicable Sourcewell contract number; Clearly specify the requested change; Provide sufficient detail to justify the requested change; 092222-CAT
Rev. 3/2022 4
Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference. 5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewells cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. Supplier may not enter into a contract with a U.S. Federal Government entity prior to obtaining necessary internal approvals and will not be obligated to provide Equipment, Products, or Services to any U.S. Federal Government entity under this Contract unless separately agreed in writing. Supplier may work with such parties and may agree to provide equipment or services under the Contract on a case-by-case basis. The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entitys authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entitys use of this Contract is at the Participating Entitys sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source. Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract. B. PUBLIC FACILITIES. Suppliers employees may be required to perform work at government-owned facilities, including schools. Suppliers employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws. 092222-CAT
Rev. 3/2022 5
6. PARTICIPATING ENTITY USE AND PURCHASING A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract. Suppliers acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity. B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract. C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e-commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events: 1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or 2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entitys requirements. 092222-CAT
Rev. 3/2022 6
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entitys order will be determined by the Participating Entity making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: Maintenance and management of this Contract; Timely response to all Sourcewell and Participating Entity inquiries; and Business reviews to Sourcewell and Participating Entities, if applicable. B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made). The Report must contain the following fields: Participating Entity Name (e.g., City of Staples Highway Department); Participating Entity Physical Street Address; Participating Entity City; Participating Entity State/Province; Participating Entity Zip/Postal Code; Participating Entity Contact Name; Participating Entity Contact Email Address; Participating Entity Contact Telephone Number; Sourcewell Assigned Entity/Participating Entity Number; Item Purchased Description; Item Purchased Price; Sourcewell Administrative Fee Applied; and Date Purchase was invoiced/sale was recognized as revenue by Supplier. 092222-CAT
Rev. 3/2022 7
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee. The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Suppliers name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above Attn: Accounts Receivable or remitted electronically to Sourcewells banking institution per Sourcewells Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter. Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contracts expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Suppliers Authorized Representative is the person named in the Suppliers Proposal. If Suppliers Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing. 10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract. B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited 092222-CAT
Rev. 3/2022 8
assignment will be invalid. Provided, however, that Caterpillar is permitted to subcontract certain of its rights and obligations to Caterpillar dealers for performance without Sourcewells prior written consent. C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties. D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties. E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern. F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent. 11. INDEMNITY AND HOLD HARMLESS Intentionally omitted. 12. GOVERNMENT DATA PRACTICES Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract. 13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY 1. Grant of License. During the term of this Contract: a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewells relationship with Supplier. 092222-CAT
Rev. 3/2022 9
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Suppliers trademarks in advertising and promotional materials for the purpose of marketing Suppliers relationship with Sourcewell. 2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively Permitted Sublicensees) in advertising and promotional materials for the purpose of marketing the Parties relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees. 3. Use; Quality Control. a. Neither party may alter the other partys trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos. b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other partys trademarks only in good faith and in a dignified manner consistent with such partys use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated. 4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other partys name or logo (excepting Sourcewells pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewells written directions. B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract. D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services. 092222-CAT
Rev. 3/2022 10
14. GOVERNING LAW, JURISDICTION, AND VENUE The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota. 15. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that partys reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 16. SEVERABILITY If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed. 17. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. 092222-CAT
Rev. 3/2022 11
The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may: Exercise any remedy provided by law or equity, or Terminate the Contract or any portion thereof, including any orders issued against the Contract. 18. INSURANCE A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an AM BEST rating of A- or better, with coverage and limits of insurance not less than the following: 1. Workers Compensation and Employers Liability. Workers Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (ISO) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms 092222-CAT
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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent. Minimum Limits: $1,000,000 each accident, combined single limit 4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employers Liability, Commercial General Liability, and Commercial Automobile. Minimum Limits: $2,000,000 5. Professional/Technical, Errors and Omissions, and/or Miscellaneous Professional Liability. During the term of this Contract, Supplier will maintain coverage for all claims the Supplier may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Suppliers professional services required under this Contract. Minimum Limits: $2,000,000 per claim or event $2,000,000 annual aggregate Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract. C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Suppliers commercial general liability insurance policy with respect to liability arising out of activities, operations, or work performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case-by-case basis. 092222-CAT
Rev. 3/2022 13
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention. 19. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Suppliers Participating Dealers must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Suppliers Participating Dealer conducts with Sourcewell and Participating Entities. 20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing. Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Intentionally omitted. 092222-CAT
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22. CANCELLATION Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Suppliers Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation. Sourcewell Caterpillar Inc. By: __________________________ By: __________________________ Jeremy Schwartz Jaime Mineart Title: Chief Procurement Officer Title: Vice President & General Manager Retail Electric Power Solutions Date: ________________________ Date: ________________________ Approved: By: __________________________ Chad Coauette Title: Executive Director/CEO Date: ________________________
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text. Documents Ensure your submission document(s) conforms to the following: 1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided. 2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell. 3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell. 4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Caterpillar Gen Disc List RFP August 2022.xlsx - Tuesday September 20, 2022 15:56:47 Financial Strength and Stability - Financial Strength and Stability.zip - Tuesday September 20, 2022 15:58:41 Marketing Plan/Samples - Marketing Plan.zip - Tuesday September 20, 2022 15:59:03 WM8E/M8E/S8E or Related Certificates (optional) Warranty Information - SELF5743-01_.pdf - Tuesday September 20, 2022 15:57:54 Standard Transaction Document Samples - Standard Transaction Document Samples.zip - Tuesday September 20, 2022 15:59:30 Upload Additional Document - Additionals.zip - Tuesday September 20, 2022 15:59:44 Bid Number: RFP 092222 Vendor Name: Caterpillar
Bid Number: RFP 092222 Vendor Name: Caterpillar
Contract Extension
Rev. 7/2022 1
CONTRACT EXTENSION Contract Number: Sourcewell and 202 12th Street NortheastP.O. Box 219Staples, MN 56479 (Sourcewell) (Vendor)have entered into Contract Number: 110719-for the procurement of: The Contract has an expiration date of Decemb r, but the parties may extend the Contract by mutual consent.Sourcewell and Vendor acknowledge that extending the Contract benefits the Vendor, Sourcewell and Members. Vendor and Sourcewell agree to extend the Contract listed above for an additional period, with a new Contract expiration date ofDece mber ,. All other terms and conditions of the Contractremain in full force and effect.
Sourcewell________________________________Authorized Signature________________________________Name________________________________Title________________________________Date ________________________________Authorized Signature________________________________Name________________________________Title________________________________Date
Sourcewell RFP
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 1 RFP #092222REQUEST FOR PROPOSALS for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Proposal Due Date: September 22, 2022, 4:30 p.m., Central Time Sourcewell, a State of Minnesota local government unit and service cooperative, is requesting proposals for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services to result in a contracting solution for use by its Participating Entities. Sourcewell Participating Entities include thousands of governmental, higher education, K-12 education, nonprofit, tribal government, and other public agencies located in the United States and Canada. A full copy of the Request for Proposals can be found on the Sourcewell Procurement Portal [https://proportal.sourcewell-mn.gov]. Only proposals submitted through the Sourcewell Procurement Portal will be considered. Proposals are due no later than September 22, 2022, at 4:30 p.m. Central Time, and late proposals will not be considered. SOLICITATION SCHEDULE Public Notice of RFP Published: August 4, 2022Pre-proposal Conference: August 30, 2022, 10:00 a.m., Central TimeQuestion Submission Deadline: September 14, 2022, 4:30 p.m., Central TimeProposal Due Date: September 22, 2022, 4:30 p.m., Central Time Late responses will not be considered.Opening: September 22, 2022, 6:30 p.m., Central TimeSee RFP Section V.G. “Opening” Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 2 I. ABOUT SOURCEWELLA. SOURCEWELLSourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its 50,000+ participating entities across the United States and Canada. Sourcewell’s solicitation process complies with State of Minnesota law and policies, conforms to Canadian trade agreements(including Canadian Free Trade Agreement, Ontario-Quebec Trade and Cooperation Agreement, and Canada-European Union Comprehensive Economic and Trade Agreement, as applicable), and results in cooperative purchasing solutions from which Sourcewell’s Participating Entities procure equipment, products, and services. Cooperative purchasing provides participating entities and suppliers increased administrative efficiencies and the power of combined purchasing volume that result in overall cost savings. At times, Sourcewell also partners with other purchasing cooperatives to combine the purchasing volume of their membership into a single solicitation and contract expanding the reach of contracted suppliers’ potential pool of end users. Sourcewell uses a website-based platform, the Sourcewell Procurement Portal, through which all proposals to this RFP must be submitted. B. USE OF RESULTING CONTRACTSIn the United States, Sourcewell’s contracts are available for use by: Federal and state government entities1; Cities, towns, and counties/parishes; Education service cooperatives; K-12 and higher education entities; Tribal government entities; Some nonprofit entities; and Other public entities. In Canada, Sourcewell’s contracts are available for use by: Provincial and territorial government departments, ministries, agencies, boards, councils, committees, commissions, and similar agencies; Indigenous self-governing bodies 1 Pursuant to HAR §3-128-2, the State of Hawaii, Department of Accounting and General Services, State Procurement Office, on behalf of the State of Hawaii and participating jurisdictions, has provided notice of its Intent to Participate in the solicitation as a participating entity.
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 3 Regional, local, district, and other forms of municipal government, municipal organizations, school boards, and publicly funded academic, health, and social service entities referred to as MASH sector (this should be construed to include but not be limited to the Cities of Calgary, Edmonton, Toronto, Ottawa, and Winnipeg), as well as any corporation or entity owned or controlled by one or more of the preceding entities;Crown corporations, government enterprises, and other entities that are owned or controlled by these entities through ownership interest;Members of the Canoe procurement group of Canada, and their partner associations: Canoe members are regional, local, district or other forms of municipal government, school boards, publicly-funded academic, health and social service entities in Alberta and across Canada, as well as any corporation or entity owned or controlled by one or more of the preceding entities – as well as partner associations, including Saskatchewan Association of Rural Municipalities, Association of Manitoba Municipalities, Local Authorities Services/Association of Municipalities Ontario, Nova Scotia Federation of Municipalities, Federation of Prince Edward Island Municipalities, Municipalities Newfoundland Labrador, Union of New Brunswick Municipalities, North West Territories Association of Communities, CivicInfo BC, and their members. For a listing of current United States and Canadian Participating Entities visit Sourcewell’s website (note: there is a tab for each country): https://www.sourcewell-mn.gov/sourcewell-for-vendors/agency-locator. Participating Entities typically access contracted equipment, products, or services through a purchase order issued directly to the contracted supplier. A Participating Entity may request additional terms or conditions related to a purchase. Use of Sourcewell contracts is voluntary and Participating Entities retain the right to obtain similar equipment, products, or services from other sources. To meet Participating Entities’ needs, Sourcewell broadly publishes public notice of all solicitation opportunities, including this RFP. In addition, where applicable, other purchasing cooperatives and procurement officials receive notice and are encouraged to re-post the solicitation opportunity. Proof of publication will be available at the conclusion of the solicitation process. II. SOLICITATION DETAILS A. SOLUTIONS-BASED SOLICITATIONThis RFP and contract award process is a solutions-based solicitation; meaning that Sourcewell is seeking equipment, products, or services that meet the general requirements of the scope of this RFP and that are commonly desired or are required by law or industry standards.
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 4 B. REQUESTED EQUIPMENT, PRODUCTS, OR SERVICESIt is expected that proposers will offer a wide array of equipment, products, or services at lower prices and with better value than what they would ordinarily offer to a single government entity, a school district, or a regional cooperative.1. Sourcewell is seeking proposals for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services, including, but not limited to:a. Stationary electrical generation systems, backup or standby generator sets, mobile and ground power units, and trailer mounted generators; b. Parts and accessories, including enclosures, fuel tanks, automatic transfer switches, paralleling equipment, switch gears, connection boxes, controls, alarm modules, batteries, block heaters, and networking tools; c. Related services, including design, customization, engineering, commissioning, installation, delivery, maintenance, repair, training and operation, service and maintenance agreements, decommissioning and repurposing, custom shop work, and rental services. 2. The primary focus of this solicitation is on electrical energy power generation equipment. Proposers may include related parts, accessories, or services, as described in 1. b. and 1. c. to the extent that these solutions are complementary to the power generation solutions being offered in 1. a. Proposers may include no more than a complementary or incidental offering from renewable energy sources such as wind, solar and microgrid solutions. This solicitation should NOT be construed to include “services-only” solutions. 3. This solicitation does not include those equipment, products, or services covered under categories included in contracts currently maintained by Sourcewell:a. Medium Duty and Compact Construction Equipment with Related Attachments, Accessories, and Supplies (RFP ##040319)b. Portable Construction Equipment with Related Accessories and Attachments (RFP#041719)c. Equipment Rental with Related Services (RFP#062320) d. Facility MRO (Maintenance, Repair & Operations), Industrial & Building Supplies with Related Equipment, Accessories, Supplies & Services (RFP #091422) Proposers may include related equipment, accessories, and services to the extent that these solutions are complementary to the equipment, products, or service(s) being proposed.
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 5 Generally, the solutions for Participating Entities are turn-key solutions, providing a combination of equipment, products and services, delivery, and installation to a properly operating status. However, equipment-only or products-only solutions may be appropriate for situations where Participating Entities possess the ability, either in-house or through local third-party contractors, to properly install and bring to operation the equipment or products being proposed. Sourcewell prefers suppliers that provide a sole source of responsibility for the equipment, products, and services provided under a resulting contract. If proposer is including the equipment, products, and services of its subsidiary entities, the proposer must also identify all included subsidiaries in its proposal. If proposer requires the use of distributors, dealers, resellers, or subcontractors to provide the equipment, products, or services, the proposal must address how the equipment, products or services will be provided to Participating Entities, and describe the network of distributors, dealers, resellers, and/or subcontractors that will be available to serve Participating Entities under a resulting contract. Sourcewell encourages suppliers to offer the broadest possible selection of equipment, products, and services being proposed over the largest possible geographic area and to the largest possible cross-section of Sourcewell current and future Participating Entities. C. REQUIREMENTSIt is expected that proposers have knowledge of all applicable industry standards, laws, and regulations and possess an ability to market and distribute the equipment, products, or services to Participating Entities. 1. Safety Requirements. All items proposed must comply with current applicable safety or regulatory standards or codes.2. Deviation from Industry Standard. Deviations from industry standards must be identified with an explanation of how the equipment, products, and services will provide equivalent function, coverage, performance, and/or related services. 3. Equipment and Products. Proposed equipment and products must be for new, current model; however, proposer may offer certain close-out equipment or products, and used or refurbished equipment, if it is specifically noted in the Pricing proposal. 4. Delivered and operational. Unless clearly noted in the proposal, equipment and products must be delivered to the Participating Entity as operational.5. Warranty. All equipment, products, supplies, and services must be covered by a warranty that is the industry standard or better. D. ANTICIPATED CONTRACT TERM Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 6 Sourcewell anticipates that the term of any resulting contract(s) will be four years, with an optional one-year extension that may be offered based on the best interests of Sourcewell and its Participating Entities. E. ESTIMATED CONTRACT VALUE AND USAGEBased on past volume of similar contracts, the estimated annual value of all transactions from contracts resulting from this RFP are anticipated to be USD $80 Million; therefore, proposers are expected to propose volume pricing. Sourcewell anticipates considerable activity under the contract(s) awarded from this RFP; however, sales and sales volume from any resulting contractare not guaranteed.F. MARKETING PLANProposer’s sales force will be the primary source of communication with Participating Entities. The proposer’s Marketing Plan should demonstrate proposer’s ability to deploy a sales force or dealer network to Participating Entities, as well as proposer’s sales and service capabilities. It is expected that proposer will promote and market any contract award. G. ADDITIONAL CONSIDERATIONS1. Contracts will be awarded to proposers able to best meet the need of Participating Entities. Proposers should submit their complete line of equipment, products, or services that are applicable to the scope of this RFP. 2. A proposer may submit only one proposal. If related, affiliated, or subsidiary entities elect to submit separate proposals, rather than a single parent-entity proposal, each such proposal must be prepared independently and without cooperation, collaboration, or collusion.3. If a proposer works with a consultant on its proposal, the consultant (an individual or company) may not assist any other entity with a proposal for this solicitation. 4. Proposers should include all relevant information in its proposal, since Sourcewell cannot consider information that is not included in the proposal. Sourcewell reserves the right to verify proposer’s information and may request clarification from a proposer, including samples of the proposed equipment or products. 5. Depending upon the responses received in a given category, Sourcewell may need to organize responses into subcategories in order to provide the broadest coverage of the requested equipment, products, or services to Participating Entities. Awards may be based on a subcategory.6. A proposer’s documented negative past performance with Sourcewell or its Participating Entities occurring under a previously awarded Sourcewell contract may be considered in the evaluation of a proposal. III. PRICING Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 7 A. REQUIREMENTSAll proposed pricing must be: 1. Either Line-Item Pricing or Percentage Discount from Catalog Pricing, or a combination of these:a.Line-item Pricing is pricing based on each individual product or services. Each line must indicate the proposer’s published “List Price,” as well as the “Contract Price.”b. Percentage Discount from Catalog or Category is based on a percentage discount from a catalog or list price, defined as a published Manufacturer’s Suggested Retail Price (MSRP) for the products or services. Individualized percentage discounts can be applied to any number of defined product groupings. Proposers will be responsible for providing and maintaining current published MSRP with Sourcewell, and this pricing must be included in its proposal and provided throughout the term of any contract resulting from this RFP. 2. The proposer’s not to exceed price. A not to exceed price is the highest price for which equipment, products, or services may be billed to a Participating Entity. However, it is permissible for suppliers to sell at a price that is lower than the contracted price. 3. Stated in U.S. and Canadian dollars (as applicable). 4. Clearly understandable, complete, and fully describe the total cost of acquisition (e.g., the cost of the proposed equipment, products, and services delivered and operational for its intended purpose in the Participating Entity’s location). Proposers should clearly identify any costs that are NOT included in the proposed product or service pricing. This may include items such as installation, set up, mandatory training, or initial inspection. Include identification of any parties that impose such costs and their relationship to the proposer. Additionally, proposers should clearly describe any unique distribution and/or delivery methods or options offered in the proposal. B. ADMINISTRATIVE FEESProposers awarded a contract are expected to pay to Sourcewell an administrative fee in exchange for Sourcewell facilitating the resulting contracts. The administrative fee is normally calculated as a percentage of the total sales to Participating Entities for all contracted equipment, products, or services made during a calendar quarter, and is typically one percent (1%) to two percent (2%). In some categories, a flat fee may be an acceptable alternative. IV. CONTRACT Proposers awarded a contract will be required to execute a contract with Sourcewell (see attached template). Only those modifications the proposer indicates in its proposal will be available for discussion. Much of the language in the Contract reflects Minnesota legal requirements and cannot be altered. Numerous and/or onerous exceptions that contradict Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 8 Minnesota law may result in the proposal being disqualified from further review and evaluation. To request a modification to the template Contract, a proposer must submit the Exceptions to Terms, Conditions, or Specifications table with its proposal. Only those exceptions noted at the time of the proposal submission will be considered. Exceptions must: 1. Clearly identify the affected article and section. 2. Clearly note the requested modification; and as applicable, provide requested alternative language.Unclear requests will be automatically denied. Only those exceptions that have been accepted by Sourcewell will be included in the contract document provided to the awarded supplier for signature. If a proposer receives a contract award resulting from this solicitation it will have up to 30 days to sign and return the contract. After that time, at Sourcewell’s sole discretion, the contract award may be revoked. V. RFP PROCESS A. PRE-PROPOSAL CONFERENCESourcewell will hold an optional, non-mandatory pre-proposal conference via webcast on the date and time noted in the Solicitation Schedule for this RFP and on the Sourcewell Procurement Portal. The purpose of this conference is to allow potential proposers to ask questions regarding this RFP and Sourcewell’s competitive contracting process. Information about the webcast will be sent to all entities that have registered for this solicitation opportunity through their Sourcewell Procurement Portal Vendor Account. Pre-proposal conference attendance is optional.B. QUESTIONS REGARDING THIS RFP AND ORAL COMMUNICATION All questions regarding this RFP must be submitted through the Sourcewell Procurement Portal. The deadline for submission of questions is found in the Solicitation Schedule and on the Sourcewell Procurement Portal. Answers to questions will be issued through an addendum to this RFP. Repetitive questions will be summarized into a single answer and identifying information will be removed from the submitted questions. All questions, whether specific to a proposer or generally related to the RFP, must be submitted using this process. Do not contact individual Sourcewell staff to ask questions or request information as this may disqualify the proposer from responding to this RFP. Sourcewell will not respond to questions submitted after the deadline.
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 9 C. ADDENDA Sourcewell may modify this RFP at any time prior to the proposal due date by issuing an addendum. Addenda issued by Sourcewell become a part of the RFP and will be delivered to potential proposers through the Sourcewell Procurement Portal. Sourcewell accepts no liability in connection with the delivery of any addenda.Before a proposal will be accepted through the Sourcewell Procurement Portal, all addenda, if any, must be acknowledged by the proposer by checking the box for each addendum. It is the responsibility of the proposer to check for any addenda that may have been issued up to the solicitation due date and time. If an addendum is issued after a proposer submitted its proposal, the Sourcewell Procurement Portal will WITHDRAW the submission and change the proposer’s proposal status to INCOMPLETE. The proposer can view this status change in the “MY BIDS” section of the Sourcewell Procurement Portal Vendor Account. The proposer is solely responsible to check the “MY BIDS” section of the Sourcewell Procurement Portal Vendor Account periodically after submitting its proposal (and up to the Proposal Due Date). If the proposer’s proposal status has changed to INCOMPLETE, the proposer is solely responsible to: i) make any required adjustments to its proposal; ii) acknowledge the addenda; and iii) ensure the re-submitted proposal is received through the Sourcewell Procurement Portal no later than the Proposal Due Date and time shown in the Solicitation Schedule above. D. PROPOSAL SUBMISSION Proposer’s complete proposal must be submitted through the Sourcewell Procurement Portal no later than the date and time specified in the Solicitation Schedule. Any other form of proposal submission, whether electronic, paper, or otherwise, will not be considered by Sourcewell. Late proposals will not be considered. It is the proposer’s sole responsibility to ensure that the proposal is received on time. It is recommended that proposers allow sufficient time to upload the proposal and to resolve any issues that may arise. The time and date that a proposal is received by Sourcewell is solelydetermined by the Sourcewell Procurement Portal web clock.In the event of problems with the Sourcewell Procurement Portal, follow the instructions for technical support posted in the portal. It may take up to 24 hours to respond to certain issues. Upon successful submission of a proposal, the Sourcewell Procurement Portal will automatically generate a confirmation email to the proposer. If the proposer does not receive a confirmation email, contact Sourcewell’s support provider at [email protected].
Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 10 To ensure receipt of the latest information and updates via email regarding this solicitation, or if the proposer has obtained this solicitation document from a third party, the onus is on the proposer to create a Sourcewell Procurement Portal Vendor Account and register for this solicitation opportunity. Within the Sourcewell Procurement Portal, all proposals must be digitally acknowledged by an authorized representative of the proposer attesting that the information contained in in the proposal is true and accurate. By submitting a proposal, proposer warrants that the information provided is true, correct, and reliable for purposes of evaluation for potential contract award. The submission of inaccurate, misleading, or false information is grounds for disqualification from a contract award and may subject the proposer to remedies available by law. E. GENERAL PROPOSAL REQUIREMENTSProposals must be: In substantial compliance with the requirements of this RFP or it will be considered nonresponsive and be rejected. Complete. A proposal will be rejected if it is conditional or incomplete. Submitted in English. Valid and irrevocable for 90 days following the Proposal Due Date. Any and all costs incurred in responding to this RFP will be borne by the proposer. F. PROPOSAL WITHDRAWALPrior to the proposal deadline, a proposer may withdraw its proposal. G. OPENINGThe Opening of proposals will be conducted electronically through the Sourcewell Procurement Portal. A list of all proposers will be made publicly available in the Sourcewell Procurement Portal after the Proposal Due Date, but no later than the Opening time listed in the Solicitation Schedule. To view the list of proposers, verify that the Sourcewell Procurement Portal opportunities list search is set to “All” or “Closed.” The solicitation status will automatically change to “Closed” after the Proposal Due Date and Time. VI. EVALUATION AND AWARD A. EVALUATION Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 11 It is the intent of Sourcewell to award one or more contracts to responsive and responsible proposers offering the best overall quality, selection of equipment, products, and services, and price that meet the commonly requested specifications of Sourcewell and its Participating Entities. The award(s) will be limited to the number of proposers that Sourcewell determines is necessary to meet the needs of its Participating Entities. Factors to be considered in determining the number of contracts to be awarded in any category may include the following: Total evaluation scores (giving consideration to natural breaks in the scoring of responsive proposals); The number and geographic location of highest-scoring proposers that offer: o A comprehensive selection of the requested equipment, products, or services; o A sales and service network ensuring availability and coverage for Participating Entities’ use; and o Other attributes of the proposer or contents of its proposal that assist Participating Entities in achieving environmental and social requirements, and goals. Information submitted as part of a proposal should be as specific as possible when responding to the RFP. Do not assume Sourcewell has any knowledge about a specific supplier or product. B. AWARD(S) Award(s) will be made to the highest-scoring proposer(s) whose proposal conforms to all conditions and requirements of the RFP, and consistent with the award criteria defined in this RFP.Sourcewell may request written clarification of a proposal at any time during the evaluation process. Proposal evaluation will be based on the following scoring criteria and the Sourcewell Evaluator Scoring Guide (a copy is available in the Sourcewell Procurement Portal): Conformance to RFP Requirements 50Financial Viability and Marketplace Success 75Ability to Sell and Deliver Service 100Marketing Plan 50Value Added Attributes 75Warranty 50Depth and Breadth of Offered Equipment, Products, or Services 200Pricing 400TOTAL POINTS 1000C. PROTESTS OF AWARDS Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 12 Any protest made under this RFP by a proposer must be in writing, addressed to Sourcewell’s Executive Director, and delivered to the Sourcewell office located at 202 12th Street NE, P.O. Box 219, Staples, MN 56479. All documents that comprise the complete protest package must be received, and time stamped at the Sourcewell office by 4:30 p.m., Central Time, no later than 10 calendar days following Sourcewell’s notice of contract award(s) or non-award. and must be time stamped by Sourcewell no later than 4:30 p.m., Central Time. A protest must allege a procedural, technical, or legal defect, with supporting documentation. A protest that merely requests a re-evaluation of a proposal’s content will not be entertained A protest must include the following items: The name, address, and telephone number of the protester; Identification of the solicitation by RFP number; A precise statement of the relevant facts; Identification of the alleged procedural, technical, or legal defect; Analysis of the basis for the protest; Any additional supporting documentation; The original signature of the protester or its representative; and Protest bond in the amount of $20,000 (except where prohibited by law or treaty). Protests that do not address these elements will not be reviewed. D. RIGHTS RESERVEDThis RFP does not commit Sourcewell to award any contract, and a proposal may be rejected if it is nonresponsive, conditional, incomplete, conflicting, or misleading. Proposals that contain false statements or do not support an attribute or condition stated by the proposer may be rejected.Sourcewell reserves the right to: Modify or cancel this RFP at any time; Reject any and all proposals received; Reject proposals that do not comply with the provisions of this RFP; Select, for contracts or for discussion, a proposal other than that with the lowest cost; Independently verify any information provided in a proposal; Disqualify any proposer that does not meet the requirements of this RFP, is debarred or suspended by the United States or Canada, State of Minnesota, Participating Entity’s state or province; has an officer, or other key personnel, who have been charged with aserious crime; or is bankrupt, insolvent, or where bankruptcy or insolvency are a reasonable prospect; Waive or modify any informalities, irregularities, or inconsistencies in the proposals received; Rev. 3/2022 Sourcewell RFP #092222 Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services Page 13 Clarify any part of a proposal and discuss any aspect of the proposal with any proposer; and negotiate with more than one proposer; Award a contract if only one responsive proposal is received if it is in the best interest of Participating Entities; andAward a contract to one or more proposers if it is in the best interest of Participating Entities. E. DISPOSITION OF PROPOSALS All materials submitted in response to this RFP will become property of Sourcewell and will become public record in accordance with Minnesota Statutes Section 13.591, after negotiations are complete. Sourcewell considers that negotiations are complete upon execution of a resulting contract. It is the proposer’s responsibility to clearly identify any data submitted that it considers to be protected. Proposer must also include a justification for the classification citing the applicable Minnesota law. Sourcewell may reject proposals that are marked confidential or nonpublic, either substantially or in their entirety. Sourcewell will not consider the prices submitted by the proposer to be confidential, proprietary, or trade secret materials. Financial information, including financial statements,provided by a proposer is not considered trade secret under the statutory definition. 8/10/2022Addendum No. 1Solicitation Number: RFP 092222Solicitation Name: Electrical Energy Power Generation Equipment with Related Parts,Supplies, and ServicesConsider the following Question and Answer to be part of the above-titled solicitationdocuments. The remainder of the documents remain unchanged.Question 1:In the RFP Questionnaire, Table 1, Question 2 – “Identify all subsidiary entities of theProposer whose equipment, products, or services are included in the Proposal.” Ifdistributors are involved in the process, is Sourcewell asking to list all distributors or isthis strictly at the OEM level?Answer 1:In the competitive process, Sourcewell will not advise a proposer on the content of theproposal. It is left to the discretion of each proposer to determine and identify those ofits subsidiary entities whose equipment, products, or services are included in theProposal (if any).End of AddendumAcknowledgement of this Addendum to RFP 092222 posted to the SourcewellProcurement Portal on 8/10/2022, is required at the time of proposal submittal.
8/30/2022Addendum No. 2Solicitation Number: RFP 092222Solicitation Name: Electrical Energy Power Generation Equipment with Related Parts,Supplies, and ServicesConsider the following Question and Answer to be part of the above-titled solicitationdocuments. The remainder of the documents remain unchanged.Question 1:Who is the incumbent for this contract? Can we review the previous winning bid?Answer 1:Each Sourcewell solicitation represents a separate and distinct opportunity. Forexamples of current Sourcewell-awarded contracts, navigate to the page on theSourcewell website at the following address:https://www.sourcewell-mn.gov/contract-searchand enter the relevant search term. A currently active contract offering similarsolutions is #120617.End of AddendumAcknowledgement of this Addendum to RFP 092222 posted to the SourcewellProcurement Portal on 8/30/2022, is required at the time of proposal submittal.
9/06/2022Addendum No. 3Solicitation Number: RFP 092222Solicitation Name: Electrical Energy Power Generation Equipment with Related Parts,Supplies, and ServicesConsider the following Questions and Answers to be part of the above-titled solicitationdocuments. The remainder of the documents remain unchanged.Question 1:Will a list of registered plan takers be provided to all plan takers at any point in this RFPprocess?Answer 1:A list of plan takers will not be provided as part of the solicitation process.Question 2:Can you clarify what is acceptable for financial stability besides releasing full financialdocuments.Answer 2:The Sourcewell RFP is an open and competitive solicitation process. Each proposer, in itsdiscretion, will determine the information necessary to best demonstrate its financialviability/success to Sourcewell. Examples of potential supporting material are identifiedin the text of the question on financial strength and stability in Table 2, “CompanyInformation and Financial Strength,” in Step 1 of the proposal preparation process.Proposals are evaluated based on the criteria stated in the RFP.End of AddendumAcknowledgement of this Addendum to RFP 092222 posted to the SourcewellProcurement Portal on 9/06/2022, is required at the time of proposal submittal.
9/09/2022Addendum No. 4Solicitation Number: RFP 092222Solicitation Name: Electrical Energy Power Generation Equipment with Related Parts,Supplies, and ServicesConsider the following Question and Answer to be part of the above-titled solicitationdocuments. The remainder of the documents remain unchanged.Question 1:We provide solar electrical power generation equipment and services. Will you confirmwhether we may respond to this solicitation?Answer 1:Each Sourcewell RFP is an open and competitive solicitation process. In the competitiveprocess, Sourcewell will not pre-evaluate a proposer’s offerings.Each proposer, in its discretion, will propose the equipment, products, and services thatit deems to fall within Sourcewell’s requested equipment, products, and services asdescribed in the RFP. Only those products within the scope of the RFP will be included inany contract awarded by Sourcewell as a result of the solicitation. Each Proposal will beevaluated based on the criteria stated in the RFP.End of AddendumAcknowledgement of this Addendum to RFP 092222 posted to the SourcewellProcurement Portal on 9/09/2022, is required at the time of proposal submittal.
Sourcewell Proof of Publication
Order Number:Classification:Package:Order Cost:Job DetailsIPL0083829Legals & Public NoticesCOL - Legal Ads$137.40Account DetailsSOURCEWELL IPPO BOX 219STAPLES, MN [email protected] State (Columbia)All ZonesFrom:The Legals AdportalTo:Carol JacksonSubject:Thank you for placing your order with us IPL0083829Date:Monday, August 1, 2022 8:28:23 AMEXTERNALTHANK YOU for your ad submission!This is your confirmation that your order has been submitted. Below are the details of your transaction. Please save this confirmation for yourrecords. This transaction will show up on your credit card statement as McClatchy.Schedule for ad number IPL00838290Thu Aug 4, 2022
NoticeBasic InformationDetailsDatesContact InformationPre-Bidding EventsBid Submission Process Estimated Contract Value (CAD)$200,000,000.00 (Not shown to suppliers)Reference Number0000229581Issuing OrganizationSourcewellOwner OrganizationSolicitation TypeRFP - Request for Proposal (Formal)Solicitation Number092222TitleElectrical Energy Power Generation Equipment with Related Parts, Supplies,SvcsSource IDPP.CO.USA.868485.C88455LocationAll of Canada, All of CanadaPurchase TypeDuration:4 yearsDescriptionSourcewell, a State of Minnesota local government unit and servicecooperative, is requesting proposals for Electrical Energy Power GenerationEquipment with Related Parts, Supplies, and Services to result in acontracting solution for use by its Participating Entities. SourcewellParticipating Entities include thousands of governmental, higher education,K-12 education, nonprofit, tribal government, and other public agencieslocated in the United States and Canada. A full copy of the Request forProposals can be found on the Sourcewell Procurement Portal[https://proportal.sourcewell-mn.gov]. Only proposals submitted through theSourcewell Procurement Portal will be considered. Proposals are due nolater than September 22, 2022, at 4:30 p.m. Central Time, and lateproposals will not be considered.Publication2022/08/04 09:06:40 AM EDTQuestion Acceptance Deadline2022/09/14 05:30:00 PM EDTQuestions are submitted onlineNoBid IntentNot AvailableClosing Date2022/09/22 05:30:00 PM EDTPrebid Conference2022/08/30 11:00:00 AM EDTProcurement [email protected] TypePrebid ConferenceAttendanceRecommendedEvent date2022/08/30 11:00:00 AM EDTLocationOnline ConferenceEvent NoteLogin information will be emailed two business days prior to the event.Bid Submission TypeElectronic Bid SubmissionPricingIn attached documentPricingIn attached documentBid Documents ListItem Name Description MandatoryBid Documents Documents defining the proposal Yes 092222 - Electrical Energy Power Generation Equipment wi... 2022/08/04 09:06:48 AM EDT Page 1 of 2
CategoriesSelected CategoriesGSIN Category (1)CConstructionConstruction515Special trade construction workSpecial trade construction work5150BKPOWER GENERATIONPOWER GENERATIONMERX Category (1)GGoodsGoodsG10Electrical and ElectronicsElectrical and ElectronicsUNSPSC Category (1)26000000Power Generation and Distribution Machinery and Accessories26110000Batteries and generators and kinetic power transmission26111600Power generators 092222 - Electrical Energy Power Generation Equipment wi... 2022/08/04 09:06:48 AM EDT Page 2 of 2
Sourcewell Opening Record
Proposal Opening RecordDate of opening: September 22, 2022Sourcewell posted Request for Proposal #092222, for the procurement of Electrical Energy Power GenerationEquipment with Related Parts, Supplies, and Services, on the Sourcewell Procurement Portal[proportal.sourcewellmn.gov] on Thursday, August 4, 2022, and the solicitation remained in anopen statuswithin the portal until September 22, 2022, at 4:30 pm CT. The RFP required that all proposals be submittedthrough the Sourcewell Procurement Portal no later than 4:30 pm CT on September 22, 2022, the date and timespecified in the Solicitation Schedule.The undersigned certify that all responses received on Request for Proposal #092222 were submitted throughthe Sourcewell Procurement Portal, and that eachProposersresponse material was digitally sealed uponsubmission and remained inaccessible until the due date and time specified in the Solicitation Schedule.Responses were received from the following:Caterpillar, Inc.Submitted 9/22/22 at 11:48:50 AMCummins, Inc.Submitted 9/22/22 at 8:52:00 AMDD DANNAR, LLCSubmitted 9/20/22 at 12:20:58 PMFermata, LLCSubmitted 9/22/22 at 2:42:17 PMGenerac Power Systems, Inc.Submitted 9/22/22 at 10:19:18 AMKohler Power SystemsSubmitted 9/16/22 at 9:04:00 AMPowerSecure, Inc.Submitted 9/21/22 at 11:54:08 AMRollsRoyce Solutions America,Inc. (MTU Americas, Inc.)Submitted 9/22/22 at 3:27:52 PMTaylor Power Systems, Inc.Submitted 9/22/22 at 1:56:49 PMThe XGroup of Companies (Turbine X Energy, Inc.)Submitted 9/22/22 at 4:19:35 PMThe Proposals were opened electronically, and a list of all Proposers was made publicly available in theSourcewell Procurement Portal, on September 22, 2022, at 4:31:32 PM CT. All responsive proposals werethen submitted for review by the Sourcewell Evaluation Committee.__________________________________________ ______________________________Kim Austin, MBA, CPPB, Procurement Lead Analyst Carol Jackson, Procurement Analyst
Sourcewell Evaluation
Sourcewell Comments & Review
COMMENT AND REVIEW to the REQUEST FOR PROPOSAL (RFP) #092222 Entitled Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services The following advertisement was placed August 4, 2022 on the Sourcewell website www.sourcewell-mn.gov, Sourcewell Procurement Portal https://proportal.sourcewell-mn.gov, Biddingo, Merx, PublicPurchase.com, The New York State Contract Reporter www.nyscr.ny.gov, USA Today, South Carolinas The State, August 5, 2022 in Oregons Daily Journal of Commerce, and on August 4 and August 11, 2022 in The Oklahoman: Sourcewell, a State of Minnesota local government unit and service cooperative, is requesting proposals for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services to result in a contracting solution for use by its Participating Entities. Sourcewell Participating Entities include thousands of governmental, higher education, K-12 education, nonprofit, tribal government, and other public agencies located in the United States and Canada. A full copy of the Request for Proposals can be found on the Sourcewell Procurement Portal [https://proportal.sourcewell-mn.gov]. Only proposals submitted through the Sourcewell Procurement Portal will be considered. Proposals are due no later than September 22, 2022, at 4:30 p.m. Central Time, and late proposals will not be considered. The solicitation process was conducted through the Sourcewell Procurement Portal. The following parties expressed interest in the solicitation by registering for this opportunity within the portal: Air Unlimited, Inc. Merryman-Farr, LLC Alco Building Solutions Nebraska Generator Service, LLC All Phase Contracting, Inc. Pioneer Power Mobility Alliance North America, Inc. Power Conditioning Computer Services, Inc. Apeiron Energy, Inc. Power Technique North America, LLC Caterpillar Inc. PowerSecure, Inc. Construction Industry Center Prairie Fibre-Optic Group, Inc. Construction Reporter Prime Vendor, Inc. Cummins Inc. Pro-Tech Power Sales DD DANNAR, LLC PWXPress Duke Electric (1977), Ltd. Reelstrong, LLC Electric Power Systems International, Inc. Regina Construction Association Sourcewell Page 2 of 4
Facility Improvement Corp. Rolls-Royce Solutions America, Inc. (MTU Americas, Inc.) Fermata, LLC Siemens Industry, Inc. Finning International, Inc. supplyFORCE ForeFront Power, LLC Taylor Power Systems, Inc. Generac Power Systems Inc. The X-Group of Companies (Turbine X Energy, Inc.) Genie Retail Energy UNITED RENTALS (NORTH AMERICA), INC. GovZERO Valor Holdings, LLC IM Supply Company Veteran Electrical Supply In-Charge Energy, Inc. Volvo Construction Equipment North America Interstate Power Systems Warshauer Electric Supply Kohler Power Systems WESCO Lindsay Allison International Wesco Distribution Canada Mainspring Energy X Group of Companies Melanite Group, Ltd. All Proposals remained sealed within the Sourcewell Procurement Portal until the scheduled due date and time. Proposals were electronically opened, and the list of all Proposers was made publicly available on the Sourcewell Procurement Portal, on September 22, 2022, at 4:31:32 pm CT. Proposals were received from the following: Caterpillar Inc. Cummins Inc. DD DANNAR, LLC Fermata, LLC Generac Power Systems Inc. Kohler Power Systems MTU Americas, Inc., dba Rolls-Royce Solutions America, Inc. PowerSecure, Inc. Taylor Power Systems, Inc. The X-Group of Companies (Turbine X Energy, Inc.) Proposals were reviewed by the Proposal Evaluation Committee: Kim Austin, MBA, CPPB, Procurement Lead Analyst James Voelker, CPCM, CFCM, Procurement Lead Analyst Brandon Town, CPSM, CPSD, Procurement Analyst Craig West, Procurement Analyst The findings of the Proposal Evaluation Committee are summarized as follows: The Proposal Evaluation Committee applied the Sourcewell RFP evaluation criteria and determined that all proposal responses met the scope and mandatory submittal requirements and were evaluated. Caterpillar Inc. offers a full line of turn-key diesel and natural gas generator sets from 20 to 4000 kW, microgrid and battery energy solutions. Caterpillar has an expansive network of 800 dealers across the United States and Canada. They also provide Sourcewell participating entities with an extensive service network of over 20,000 Sourcewell Page 3 of 4
service technicians, 468 locations, over 8,000 service bays and 8,500 field service trucks. Caterpillars pricing reflects a range of significant discounts from list pricing. Cummins Inc. brings a complete line of diesel and natural gas/propane commercial generator products, transfer switches, and related services. Cummins will provide service to Sourcewell participating entities through their 230 branch locations throughout the United States and Canada. Cummins also has 3,400 certified technicians operating throughout North America. Cummins offers a discount from fair market value or typical sales price on equipment, products, and services. Generac Power Systems Inc. manufactures a comprehensive selection of light towers, stationary, portable, residential, and mobile generators. Their sales staff and distribution network provide coverage throughout the United States and Canada to serve Sourcewell participating entities. Generac offers multiple power source options to include LP vapor, LP liquid, natural gas, well gas, and diesel/Bi-Fuel in their generator solutions. They are offering competitive range of discounts off MSRP by product line. Kohler Power Systems is offering a full line of turnkey diesel and natural gas generators, Automatic Transfer Switches (ATS), switchgear, paralleling equipment, and microgrid solutions. With an extensive distribution network throughout the United States and Canada, Kohler is well prepared to serve Sourcewell participating entities. Kohler offers participating entities competitive discounts from configured list price. MTU Americas, Inc., dba Rolls-Royce Solutions America, Inc., has a long history of providing standby, emergency, continuous, prime, diesel, gas, and propane generators and power generation solutions. Their sales and service teams, along with their distributors, are ready to serve Sourcewell participating entities across the United States and Canada. Their standby generator set product line is designed, manufactured, and warrantied for an 85% load factor. They are offering Sourcewell participating entities solid pricing discounts. For these reasons, the Sourcewell Proposal Evaluation Committee recommends award of Sourcewell Contract #092222 to: Caterpillar Inc. #092222-CAT Cummins Inc. #092222-CMM Generac Power Systems Inc. #092222-GNR Kohler Power Systems #092222-KOH MTU Americas, Inc., dba Rolls-Royce Solutions America, Inc. #092222-RYC The preceding recommendations were approved on November 17, 2022. __________________________________________ Kim Austin, MBA, CPPB, Procurement Lead Analyst _______________________________________ James Voelker, CPCM, CFCM, Procurement Lead Analyst
Sourcewell Page 4 of 4
_______________________________________ Brandon Town, CPSM, CPSD, Procurement Analyst _______________________________________ Craig West, Procurement Analyst STATEMENT OF COMPLIANCE As Executive Director for Sourcewell, I have reviewed the recommendation of the Evaluation Committee and the accompanying support materials documenting the process followed for RFP #092222 for Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services. The committee accepted, deemed responsive, evaluated, and recommended proposals for award. Under authority granted in Sourcewells bylaws, the recommendations set forth above are approved. I hereby certify: 1. Sourcewell is a government agency, created and authorized by Minnesota law to provide cooperative procurement contracts. 2. The procurement process and resulting contracts have been awarded in compliance with the laws of the State of Minnesota (Minnesota Statutes Chapter 471 and Minnesota Statutes Section 123A.21), and in conformity to Sourcewells Procurement Policy. Dr. Chad Coauette Executive Director/CEO
Sourcewell Board Resolutions
SOURCEWELLSTATE OF MINNESOTA Member ____________ moved the adoption of the following Resolution:RESOLUTION TO APPROVE SOLICITATION AND/OR RE-SOLICITATION OF CATEGORIES7/19/2022Resolution No. 2022-20WHEREAS, Sourcewell desires to issue a solicitation, and is seeking permission from the Board to issue a solicitation,for the categories listed on Appendix A, which is attached and incorporated. WHEREAS, through the Sourcewell Procurement Policy, the Board designated the Chief Procurement Officer to administer Sourcewells cooperative purchasing and contracting program; andWHEREAS, the Chief Procurement Officer recommends approval of categories detailed above.NOW THEREFORE BE IT RESOLVEDthat the Board of Directors hereby approves the solicitation of categories.The motion for the adoption of the foregoing resolution was duly seconded by Member ______________ and the following voted in favor: (list names here)and the following voted against: (list names here or NONE)whereupon said resolution was declared duly passed and adopted.ATTEST:_________________________________Clerk to the Board of Directors
APPENDIX ASOURCEWELL PROCUREMENT DEPARTMENTBOARD ITEMSJuly 2022Requesting Board permission to ReSolicit the following categories:NEW CONTRACTSSupplier Name Contract NumberSolicitation TitleAdvanta Health Solutions, Inc. 051922ADV"Wellness Engagement Program Solutions and Related Services"HealthSource Solutions, LLC 051922HSS"Wellness Engagement Program Solutions and Related Services"Lifemark Occupational Health and Wellness 051922LFM"Wellness Engagement Program Solutions and Related Services"Propel, Inc. 051922PRL"Wellness Engagement Program Solutions and Related Services"Telligen, Inc. 051922TGN"Wellness Engagement Program Solutions and Related Services"Virgin Pulse, Inc. 051922VRG"Wellness Engagement Program Solutions and Related Services"WellSpark Health, Inc.051922WSH "Wellness Engagement Program Solutions and Related Services"CONTRACT EXTENSIONSSupplier Name Contract NumberSolicitation TitleNEW IDIQ CONTRACTSCompany Name Contract NumberStateRegionType of WorkMans Construction Company NMR1E060222MCO New MexicoRegion 1ElectricalRoss Wes Electrical Services NMR1E060222RWE New MexicoRegion 1ElectricalCore Construction Services of Texas NMR1GC060222CCTNew MexicoRegion 1General ConstructionConsolidated Builders of NM NMR1GC060222COB New MexicoRegion 1General ConstructionGM Builders, Inc. NMR1GC060222GMB New MexicoRegion 1General ConstructionHB Construction, Inc. NMR1GC060222HCO New MexicoRegion 1General ConstructionMans Construction Company NMR1GC060222MCO New MexicoRegion 1General ConstructionDallago Corporation NMR1HVAC060222DCO New MexicoRegion 1Mechanical/HVACDallago Corporation NMR1P060222DCO New MexicoRegion 1PlumbingNational Roofing Company, Inc. NMR1R040622NRCNew MexicoRegion 1RoofingDKG & Associates, Inc. NMR1R060222DKG New MexicoRegion 1RoofingGM Builders, Inc. NMR1R060222GMB New MexicoRegion 1RoofingMans Construction Company NMR2E060222MCO New MexicoRegion 2ElectricalRoss Wes Electrical Services NMR2E060222RWE New MexicoRegion 2ElectricalCore Construction Services of Texas NMR2GC060222CCTNew MexicoRegion 2General ConstructionConsolidated Builders of NM NMR2GC060222COB New MexicoRegion 2General ConstructionGM Builders, Inc. NMR2GC060222GMB New MexicoRegion 2General ConstructionHB Construction, Inc. NMR2GC060222HCO New MexicoRegion 2General ConstructionWWRC, Inc. NMR2GC060222WRI New MexicoRegion 2General ConstructionWWRC, Inc. NMR2HVAC060222WRI New MexicoRegion 2Mechanical/HVACWWRC, Inc. NMR2P060222WRI New MexicoRegion 2PlumbingDKG & Associates, Inc. NMR2R060222DKG New MexicoRegion 2RoofingGM Builders, Inc. NMR2R060222GMB New MexicoRegion 2RoofingNational Roofing Company, Inc. NMR2R060222NRCNew MexicoRegion 2RoofingWWRC, Inc. NMR2R060222WRI New MexicoRegion 2RoofingMans Construction Company NMR3E060222MCO New MexicoRegion 3ElectricalConsolidated Builders of NM NMR3GC060222COB New MexicoRegion 3General ConstructionJim Sena Construction Co., Inc. NMR3GC060222JSCNew MexicoRegion 3General ConstructionJunior Builders NMR3GC060222JUB New MexicoRegion 3General Construction Trailers with Related Equipment, Accessories, and ServicesConducted Energy WeaponsRequesting Board permission to Solicit the following categories:Electrical Energy Power Generation with Related ServicesBOARDITEMSJuly2022ElectricalEnergyPowerGenerationwithRelatedServices APPENDIX A ContinuedWWRC, Inc. NMR3HVAC060222WRI New MexicoRegion 3Mechanical/HVACJunior Builders NMR3P060222JUB New MexicoRegion 3PlumbingWWRC, Inc. NMR3P060222WRI New MexicoRegion 3PlumbingGM Builders, Inc. NMR3R060222GMB New MexicoRegion 3RoofingJim Sena Construction Co., Inc. NMR3R060222JSCNew MexicoRegion 3RoofingWWRC, Inc. NMR3R060222WRI New MexicoRegion 3RoofingMans Construction Company NMR4E060222MCO New MexicoRegion 4ElectricalConsolidated Builders of NM NMR4GC060222COB New MexicoRegion 4General ConstructionJim Sena Construction Co., Inc. NMR4GC060222JSCNew MexicoRegion 4General ConstructionJunior Builders NMR4GC060222JUB New MexicoRegion 4General ConstructionNational Construction, Inc. NMR4GC060222NCI New MexicoRegion 4General ConstructionWWRC, Inc. NMR4GC060222WRI New MexicoRegion 4General ConstructionWWRC, Inc. NMR4HVAC060222WRI New MexicoRegion 4Mechanical/HVACJunior Builders NMR4P060222JUB New MexicoRegion 4PlumbingMaster Plumbers, LLC NMR4P060222MAPNew MexicoRegion 4PlumbingWWRC, Inc. NMR4P060222WRI New MexicoRegion 4PlumbingDKG & Associates, Inc. NMR4R060222DKG New MexicoRegion 4RoofingGM Builders, Inc. NMR4R060222GMB New MexicoRegion 4RoofingJim Sena Construction Co., Inc. NMR4R060222JSCNew MexicoRegion 4RoofingMans Construction Company NMR4R060222MCO New MexicoRegion 4RoofingWWRC, Inc. NMR4R060222WRI New MexicoRegion 4RoofingMans Construction Company NMR5E060222MCO New MexicoRegion 5ElectircalRoss Wes Electrical Services NMR5E060222RWE New MexicoRegion 5ElectircalCore Construction Services of Texas NMR5GC060222CCTNew MexicoRegion 5General ConstructionConsolidated Builders of NM NMR5GC060222COB New MexicoRegion 5General ConstructionGM Builders, Inc. NMR5GC060222GMB New MexicoRegion 5General ConstructionHB Construction, Inc. NMR5GC060222HCO New MexicoRegion 5General ConstructionWhite Sands Construction, Inc. NMR5GC060222WSCNew MexicoRegion 5General ConstructionDKG & Associates, Inc. NMR5R060222DKG New MexicoRegion 5RoofingGM Builders, Inc. NMR5R060222GMB New MexicoRegion 5RoofingMans Construction Company NMR5R060222MCO New MexicoRegion 5RoofingNational Roofing Company, Inc. NMR5R060222NRCNew MexicoRegion 5RoofingSmith Roofing, Inc. NMR5R060222SMRNew MexicoRegion 5RoofingIDIQ Contract ExtensionsCompany Name Contract NumberPlace Services, Inc. KYEGC01062420PLSThe Lusk Group KYERW01062420LMCCalhoun Construction Services KYNCGC02062420CACThe Lusk Group KYWE02062420LMCTecta America Corp. KYWRW02062420TEAPlace Services, Inc. KYNCGC03062420PLSPlace Services, Inc. KYNCE01062420PLSThe Lusk Group KYNCRW01062420LMCThe Lusk Group KYNCE02062420LMCThe Lusk Group KYWRW01062420LMCTecta America Corp. KYNCRW02062420TEATecta America Corp. KYERW02062420TEATriton Services, Inc. KYNCHVAC01062420TRSThe Lusk Group KYWGC03062420LMCThe Lusk Group KYEHVAC01062420LMCThe Lusk Group KYEE02062420LMCThe Lusk Group KYNCGC05062420LMCThe Lusk Group KYEGC03062420LMCPlace Services, Inc. KYWE01062420PLSPlace Services, Inc. KYWGC01062420PLSPlace Services, Inc. KYEE01062420PLSTriton Services, Inc. KYNCGC01062420TRSThe Lusk Group KYWHVAC01062420LMCF.H. Paschen, S.N. Nielsen & Associates, LLC KYNCGC04062420FHPF.H. Paschen, S.N. Nielsen & Associates, LLC KYWGC02062420FHPF.H. Paschen, S.N. Nielsen & Associates, LLC KYEGC02062420FHPThe Lusk Group KYNCHVAC02062420LMC SOURCEWELLSTATE OF MINNESOTA Member ____________ moved the adoption of the following Resolution:RESOLUTION TO RATIFY COOPERATIVE CONTRACTING AWARDS12/20/2022Resolution No. 2022-34WHEREAS, the Sourcewell Board of Directors previously authorized the solicitations for the cooperative categories listed on Appendix A, which is attached and incorporated; and WHEREAS, Sourcewell issued the cooperative contracting solicitations for the authorized categories; andWHEREAS, through the Sourcewell Procurement Policy, the Board designated the Chief Procurement Officer to administer Sourcewells cooperative purchasing and contracting program and to award all competitively solicited contracts, without limitation; andWHEREAS, the Chief Procurement Officer made the awards listed based on the results of the competitive solicitation process; andWHEREAS, the Board acknowledges that the awards made by the Chief Procurement Officer are valid and binding; however, based upon some members legal requirements the Chief Procurement Official is required to seek subsequent Board ratification of all cooperative purchasing awards. NOW THEREFORE BE IT RESOLVEDby the Board of Directors ratifies the cooperative contracting awards made by the Chief Procurement Officer listed on Appendix A.The motion for the adoption of the foregoing resolution was duly seconded by Member______________and the following voted in favor: (list names here)and the following voted against: (list names here or NONE)whereupon said resolution was declared duly passed and adopted.ATTEST:_________________________________Clerk to the Board of Directors
APPENDIX ASOURCEWELL PROCUREMENT DEPARTMENTBOARD ITEMSDecemberr 2022NONERequesting Board permission to ReSolicit the following categories:NEW CONTRACTSSupplier Name Contract NumberSolicitation TitleAxon Enterprise, Inc.092722AXN"Conducted Energy Weapons"Phazzer, LLC092722PZR"Conducted Energy Weapons"Caterpillar, Inc. 092222CAT"Electrical Energy Power Generation Equipment with RelatedParts, Supplies and Services"Cummins, Inc.092222CMM"Electrical Energy Power Generation Equipment with RelatedParts, Supplies and Services"Generac Power Systems 092222GNR"Electrical Energy Power Generation Equipment with RelatedParts, Supplies and Services"Kohler Company 092222KOH"Electrical Energy Power Generation Equipment with RelatedParts, Supplies and Services"MTU Americas dba RollsRoyce Solutions America, Inc. 092222RYC"Electrical Energy Power Generation Equipment with RelatedParts, Supplies and Services"CONTRACT EXTENSIONSSupplier Name Contract NumberSolicitation TitleCompany Name Contract NumberStateRegionType of WorkErnst & Young Advisors 101718EYG"Wireless Technology Infrastructure Consultative Services"W.W. Grainger, Inc. 121218WWG"Facility MRO, Industrial & Building Supplies with RelatedEquipment, Accessories, Supplies & Services"CNH Industrial 032119CNH"Heavy Construction Equipment with Related Accessories,Attachments, and Supplies"Hyundai Construction Equipment 032119HCE"Heavy Construction Equipment with Related Accessories,Attachments, and Supplies"Komatsu America Corp. 032119KOM"Heavy Construction Equipment with Related Accessories,Attachments, and Supplies"Volvo, LLC 032119VCE"Heavy Construction Equipment with Related Accessories,Attachments, and Supplies"SHI International Corp. 081419SHI"Technology Catalog Solutions"CDW Government, LLC 081419CDW"Technology Catalog Solutions"GovConnection, Inc. 081419GVC"Technology Catalog Solutions"Colonial Life & Accident Insurance 100319CLA"Group Employee Benefits and Related Services"National Cooperative Leasing 011620NCL"TaxExempt Municipal Leasing with Related Services"Staples Contract & Commercial 012320SCC"Office Supply Catalog Solutions"NEW IDIQ CONTRACTSIDIQ Contract ExtensionsCompany Name Contract NumberLee Construction and Maintenance Company TXNTEC101619LCM Recycling and Repurposing EquipmentSalt, Brine, and AntiIcing or DeIcing Agents, and Brine Production and Storage SystemsEmployee Financial Wellness Programming and Related EmployerSponsored Financial SolutionsRequesting Board permission to Solicit the following categories:Scoreboards, Digital Displays, and Video Boards with Related ServicesBOARDITEMSDecemberr2022 "ElectricalEnergyPowerGenerationEquipmentwithRelatedCaterpillar,Inc.092222CATParts,SuppliesandServices""ElectricalEnergyPowerGenerationEquipmentwithRelatedCummins,Inc.092222CMMParts,SuppliesandServices""ElectricalEnergyPowerGenerationEquipmentwithRelatedGeneracPowerSystems 092222Systems 092222GNRParts,SuppliesandServices""ElectricalEnergyPowerGenerationEquipmentwithRelatedKohlerCompany 092222Company 092222KOHParts,SuppliesandServices""ElectricalEnergyPowerGenerationEquipmentwithRelatedMTUAmericasdbaRollsRoyceSolutionsAmerica,Inc. 092222Inc. 092222RYCParts,SuppliesandServices" APPENDIX A ContinuedG2 General Contractors TXNTAPC101619GGCG2 General Contractors TXNTP101619GGCG2 General Contractors TXNTW101619GGCCentennial Contractors Enterprises, Inc. TXNTGC101619CCEGomez Floor Covering, Inc. dba GFC Contracting TXNTF101619GFCDallas Harmony Construction, LLC TXNTAPC101619DHCCORE Construction Services of Texas, Inc. TXNTAPC101619CCTCORE Construction Services of Texas, Inc. TXNTP101619CCTLee Construction and Maintenance Company TXNTP101619LCMGomez Floor Covering, Inc. dba GFC Contracting TXNTP101619GFCLee Construction and Maintenance Company TXNTGC101619LCMWR Construction, Inc. TXPHGC101619WRCCORE Construction Services of Texas, Inc. TXPHGC101619CCTCORE Construction Services of Texas, Inc. TXPHAPC101619CCTCORE Construction Services of Texas, Inc. TXPHP101619CCTTriState General Contracting Group, Inc. TXPHGC101619JRTG2 General Contractors TXNTGC101619GGCG2 General Contractors TXNTRC101619GGCDallas Harmony Construction, LLC TXNTGC101619DHCDallas Harmony Construction, LLC TXNTP101619DHCDallas Harmony Construction, LLC TXNTF101619DHCFreedom Constructiona series of tFg Companies, LLC TXNTGC101619FRCTeinert Construction TXPHGC101619TCBSDB, Inc. TXPHGC101619SDBLee Construction and Maintenance Company TXNTF101619LCMTeinert Construction TXNTGC101619TCBCORE Construction Services of Texas, Inc. TXNTGC101619CCTHenthorn Commercial Construction, LLC TXNTGC101619HCLCORE Construction Services of Texas, Inc. TXPHF101619CCTF.H. Paschen, S.N. Nielsen & Associates, LLC TXNTGC101619FHPSDB, Inc. TXNTGC101619SDBCORE Construction Services of Texas, Inc. TXNTF101619CCTF.H. Paschen, S.N. Nielsen & Associates, LLC TXPHGC101619FHPNouveau Construction and Technology Services, LP TXNTGC101619NCTHenthorn Commercial Construction, LLC TXPHGC101619HCLJulius Kaaz Construction Company, Inc. MOKCP01111319JKCStraub Construction Company, Inc. KSEGC01111319STCBKM Construction, LLC MOKCGC02111319BKMStraub Construction Company, Inc. MOKCGC04111319STCRoofConnect Logistics, Inc. KSER02111319RCLRoofConnect Logistics, Inc. MOKCR02111319RCLJulius Kaaz Construction Company, Inc. MOKCGC01111319JKCMTS Contracting, Inc. MOKCGC03111319MTSBKM Construction, LLC KSWGC01111319BKMRoofConnect Logistics, Inc. KSWR02111319RCLPlatinum Roofing, Inc. KSER01111319PLRPlatinum Roofing, Inc. KSWR01111319PLRMTS Contracting, Inc. KSEGC03111319MTSPlatinum Roofing, Inc. MOKCR01111319PLRBKM Construction, LLC KSEGC02111319BKM Sourcewell – CAT Pricing
All Discounts listed are for "Standby Ratings only unless otherwise stated". Note: Due to global supply chain costs, all new generators are subject to a price increase of up to 30%List Price DiscountC2.2, 60 HZ, 40 - 60 kW Diesel (Reference the "PSNA-EPG-F_C2.2PGABR" Caterpillar Price List)D20 - 20 kW 23%D25 - 25 kW 23%D30 - 30 kW 23%C4.4, 60 HZ, 40 - 60 kW Diesel (Reference the "PSNA-EPG-F_C4.4LCABR" Caterpillar Price List)D40 - 40 kW 29%D50 - 50 kW 29%D60 - 60 kW 29%C4.4, 60 HZ, 80 - 100 kW Diesel (Reference the "PSNA-EPG-F_C4.4PGABR" Caterpillar Price List)D80 - 80 kW 29%D100 - 100 kW 29%C4.4 GC, 60 HZ, 200 - 300 kW Diesel (Reference the "C4.4 GCABR" Caterpillar Price List)D40 - 40 kW 28%D50 - 50 kW 28%D60 - 60 kW 28%D80 - 80 kW 28%D100 - 100 kW 28%C7.1, 60 HZ, 125 - 200 kW Diesel (Reference the "PSNA-EPG-F_C7.1PGABR" Caterpillar Price List)D125 - 125 kW 33%D150 - 150 kW 33%D175 - 175 kW 35%D200 - 200 kW 35%C7.1 GC, 60 HZ, 200 - 300 kW Diesel (Reference the "C7.1 GCABR" Caterpillar Price List)D125 - 125 kW 28%D150 - 150 kW 28%D175 - 175 kW 28%D200 - 200 kW 28%C9 GC, 60 HZ, 200 - 300 kW Diesel (Reference the "C9 GCABR" Caterpillar Price List)250 kW 28%300 kW 28%C9, 60 HZ, 200 - 300 kW Diesel (Reference the "C9 PGABR" Caterpillar Price List)250 kW 37%300 kW 37%C13, 60 HZ, 350 - 400 kW Diesel (Reference the "PSNA-EPG-F_C13PGAM" Caterpillar Price List)350 kW 37%400 kW 37%C13 GC, 60 HZ, 350 - 400 kW Diesel (Reference the "C13 GCABR" & "C13 GCAM" Caterpillar Price List)350 kW 28%400 kW 28%C15, 60 HZ, 450 - 500 kW Diesel (Reference the "PSNA-EPG-F_C15 PGAM & C15 PGABR" Caterpillar Price List)450 kW 37%500 kW 37%C15 GC, 60 HZ, 350 - 500 kW Diesel (Reference the "C15 GCABR" & "C15 GCAM" Caterpillar Price List)350 kW 28%400 kW 28%450 kW 28%500 kW 28%C18, 60 HZ, 550 - 750 kW Diesel (Reference the "PSNA-EPG-F_C18PGAM" Caterpillar Price List)550 kW 37%600 kW 37%650 kW 32%700 kW 32%750 kW 32%C18 GC, 60 HZ, 550 - 600 kW Diesel (Reference the "C18 GCAM" Caterpillar Price List)550 kW 28%600 kW 28%C18 GC, 60 HZ, 550 - 600 kW Diesel (Reference the "C18 GCABR" Caterpillar Price List)550 kW 28%600 kW 28%C18, 60 HZ, EPA Tier 4f, - 455 KW Diesel (Reference the "PSNA-EPG-F_C18PKAM" Caterpillar Price List)455 kW Prime Power 21%500 kW 21%C27, 60 HZ, 750 - 800 kW Diesel (Reference the "PSNA-EPG-F_C27PGBG" Caterpillar Price List)750 kW 32%800 kW 32%C32, 60 HZ, 1000 - 1500 kW Diesel (Reference the "PSNA-EPG-F_C32PGFG" Caterpillar Price List) Caterpillar Sourcewell Member DiscountsStationary Diesel #Caterpillar: Confidential Green
1000 kW 33%1100 kW 24%1250 kW 32%1500 kW 22%C27 GC, 60 HZ, 800 kW Diesel (Reference the "V12 GCAG" Caterpillar Price List)D800 kW 31%C32 GC, 60 HZ, 1000-1250 kW Diesel (Reference the "V12 GCAG" Caterpillar Price List)D1000 kW 31%D1250 kW 31%3512C, 60 HZ, 1500 - 1750 kW Diesel(EPA Tier 2 & CARB Emissions Certified (Nonroad); EPA Tier 2 Emissions Certified for Stationary Use)(Reference the "PSNA-EPG-F_3512 PGFL & 3512 PGJL" Caterpillar Price List)1500 kW 36%1750 kW 33%3516C/3516E, 60 HZ, 2000 - 3000 kW Diesel(EPA Tier 2 & CARB Emissions Certified (Nonroad); EPA Tier 2 Emissions Certified for Stationary Use) (Reference the "PSNA-EPG-F_3516 PGFL & 3516 PGJL" Caterpillar Price List)2000 kW 40%2250 kW 36%2500 kW 36%2750 kW 33%3000 kW 33%3516C-HD, 60 HZ, 2000 - 2500 kW Diesel (EPA Tier 4)(Reference the "PSNA-EPG-F_3516 PGFL & 3516 PGJL" Caterpillar Price List)2000 kW 20%2500 kW 20%C175-16, 60 HZ, 3000 kW Diesel (EPA Tier 2 for Mobile and Stationary Use)(Reference the "C175-PGAL & C175-PGBL" Caterpillar Price List)3000 kW 29%3100 kW 29%C175-16 T4F, 60 HZ, 3000 kW Diesel (EPA Tier 4)(Reference the "C175-PGAL & C175-PGBL" Caterpillar Price List)3000 kW 20%C175-20, 60 HZ, 4000 kW Diesel (EPA Tier 2 for Mobile and Stationary Use)(Reference the "C175-PGAL & C175-PGBL" Caterpillar Price List)3900 kW 24%4000 kW 24%G80, 20 - 80 kW Caterpillar Natural Gas (Reference the "PSNA-EPG-F_G80PGABR" Caterpillar Price List)DG20-25 kW 18%DG30-35 kW 18%DG40-45 kW 22%DG50-60 kW 22%DG70-80 kW 22%G200, 100 - 200 kW Caterpillar Natural Gas (Reference the "PSNA-EPG-F_G200PGABR" Caterpillar Price List)DG100 - 200 kW 24%CG18, 60 Hz, 350 - 500 kW Caterpillar Natural Gas (Reference the "PSNA-EPG-F-CG18 PGAM" Caterpillar Price List)DG350 kW 36%DG400 kW 36%DG450 kW 36%DG500 kW 36%G3412, 60 HZ, 375 - 500 kW Natural Gas (Reference the "PSNA-EPG-F_G3412NPG/NGG" Caterpillar Price List)375 kW 21%450 kW 21%500 kW 21%G3512 60 HZ, 750 - 1000 kW Natural Gas (Reference the "PSNA-EPG-F_G3512NPL" Caterpillar Price List)750 kW 21%1000 kW 21%1250 kW 21%G3516 60 HZ, 1500kW Natural Gas (Reference the "PSNA-EPG-F_G3516NQL" Caterpillar Price List)G3516 60 HZ, 1500kW Natural Gas (Reference the "PSNA-EPG-F_G3516NRL" Caterpillar Price List)1500kw 21%G3516 60 HZ, 1500kW Natural Gas (Reference the "PSNA-EPG-F_G3516NQL" Caterpillar Price List)1500kw 21%G3516A 60 HZ, Natural Gas (Reference the "PSNA-EPG-F_G3516ANQL" Caterpillar Price List)All 21%G3516H 60 HZ, 1966 kW Natural Gas (Reference the "PSNA-EPG-F_G3516HNPL" Caterpillar Price List)All 21%G3520H 60 HZ, 2.0 - 2.6 MW Natural Gas (Reference the "PSNA-EPG-F_G3520HNPL" Caterpillar Price List)2.0 - 2.6 MW 21%G3520 Fast Start 60 HZ, 2.0 - 2.6 MW Natural Gas (Reference the "PSNA-EPG-F_G3520NPL" Caterpillar Price List)#Caterpillar: Confidential Green
2.0 - 2.6 MW 21%G3520C 60 HZ, Natural Gas 2.0 - 2.6 MW (Reference the "PSNA-EPG-F_G3520CLGL/CLPL" Caterpillar Price List)2.0 - 2.6 MW 21%G3520H 60 HZ, Natural Gas 2.0 - 2.6 MW (Reference the "PSNA-EPG-F_G3520CNPL" Caterpillar Price List)2.0 - 2.6 MW 21%G3520 60 HZ, Natural Gas 2.0 - 3.0 MW (Reference the "PSNA-EPG-F_G3520NRL" Caterpillar Price List)2.0 - 3.0 MW 21%CG260-16 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.4000 kW 11%4050 kW 11%CG260-12 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.3000 kW 23%CG170B-20 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.2000 kW 7%2100 kW 7%2200 kW 7%2300 kW 7%CG170-20 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.2000 kW 10%2100 kW 10%2200 kW 10%2300 kW 10%CG170-16 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.1500 kW 13%1560 kW 13%CG170-12 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.1125 kW 11%1200 kW 11%CG132B-16 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.800 kW 9%CG132B-12 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.600 kW 11%CG132B-8 (custom)Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific generator sets. Each quote is custom for the specific application.400 kW 17%XQ35, 60 HZ, 35 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ35BM" Caterpillar Price List)27 kW Prime Power 21%30 kW 21%XQ60, 60 HZ, 59 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ60BM" Caterpillar Price List)48 kW Prime Power 21%XQ125, 60 HZ, 125 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ125BM" Caterpillar Price List)100 kW Prime Power 21%110 kW 21%XQ230, 60 HZ, 230 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ230BM" Caterpillar Price List)182 kW Prime Power 21%200 kW Prime Power 21%XQ330, 60 HZ, 330 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ425BM" Caterpillar Price List)264 kW Prime Power 21%288 kW Prime Power 21%XQ425, 60 HZ, 425 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))#Caterpillar: Confidential Green (Reference the "PSNA-EPG-F_XQ425BM" Caterpillar Price List)340 kW Prime Power 21%XQ570, 60 HZ, 570 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ570BG" Caterpillar Price List)455 kW Prime Power 21%XQ1140, 60 HZ, 1140 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ1140BG" Caterpillar Price List)910 kW Prime Power 21%XQ2280, 60 HZ, 2280 kVA Prime Diesel (EPA Tier 4 Final & CARB Emissions Certified (Non-road))(Reference the "PSNA-EPG-F_XQ1140BG" Caterpillar Price List)1825 kW Prime Power 21%Switchgear (customizable)Epic (Reference the "PSNA-EPG-F_CATEPICG" Price List)Epic - Master Control Panel 10%Epic - Generator Control Panel 10%Epic - Utility Control Panel 10%Supervisory Contol Panel (Reference the "PSNA-EPG-F_CATSCPN" Price List)EMCP 4.4 SCP 10%Hybrid Products (Reference the "PSNA-EPG-F_CATSCPN" Price List)All Hybrid Products 22%XES01AN 21%ATS (AUTOMATIC TRANSFER SWITCHES) (Reference the "ATS 2022" Price List)235 ATS's Available 20%Energy Stoarge SystemDue to the customization and plethora of options, it is not feasible to provide a paper price list for Cat switchgear. However, members will receive a 12% discount12% #Caterpillar: Confidential Green
Sourced Goods & Support Service ProvidedElectrical Energy Power Generation with Related Parts, Supplies, and Services.Extended Service Contracts5% off list price / typical sale price if no list price is availableMaintenance Agreements5% off list price / typical sale price if no list price is availableInstallation5% off list price / typical sale price if no list price is availableCustom Fuel Tank5% off list price / typical sale price if no list price is availableCustom ATS5% off list price / typical sale price if no list price is availableGeneral Contracting Labor5% off list price / typical sale price if no list price is availableDealer Labor5% off list price / typical sale price if no list price is availableAdditional/Custom Parts5% off list price / typical sale price if no list price is availableCaterpillar Sourced Goods & Support Services MultiplierSourcewell Member PricingCustom Shop Work5% off list price / typical sale price if no list price is availableCustom Enclosure5% off list price / typical sale price if no list price is availableDelivery/Freight5% off list price / typical sale price if no list price is availableTraining5% off list price / typical sale price if no list price is availableEngineering Services5% off list price / typical sale price if no list price is available #Caterpillar: Confidential Green
Rental Agreements Please reference the Cat Rental National Accounts contract #062320-CAT for all your rental needs.Electrical Energy Power Generation with Related Parts, Supplies, and Services.Caterpillar Rental Agreements Product & Services Multiplier #Caterpillar: Confidential Green
Caterpillar Used Equipment MultiplierRental Agreements Please reference the Cat Rental National Accounts contract #062320-CAT for all your rental needs. #Caterpillar: Confidential Green
Product Name and Product DescriptionPV Panel (Solar Panels)Time Shift - 60 Hz ES 1.5 MW-hr, 1x 20', Energy, 570 kVA, 1518 kWh, ~127 minTime Shift - 60 Hz ES 3.0 MW-hr, 2x 20', Energy, 1000 kVA, 3036 kWh, ~145 minTime Shift - 60 Hz ES 3.5 MW-hr, 2x 20', Energy, 1000 kVA, 3542 kWh, ~170 minTime Shift - 60 Hz ES 4.0 MW-hr, 2x 20', Energy, 1000 kVA, 4048 kWh, ~194 minTime Shift - 60 Hz ES 4.6 MW-hr, 3x 20', Energy, 1000 kVA, 4554 kWh, ~218 minTime Shift - 60 Hz ES 5.1 MW-hr, 3x 20', Energy, 1000 kVA, 5060 kWh, ~242 minTime Shift - 60 Hz ES 5.6 MW-hr, 3x 20', Energy, 1000 kVA, 5566 kWh, ~267 minTime Shift - 60 Hz ES 6.1 MW-hr, 3x 20', Energy, 1000 kVA, 6072 kWh, ~291 minTime Shift - 60 Hz ES 6.6 MW-hr, 3x 20', Energy, 1000 kVA, 6578 kWh, ~315 minTime Shift - 60 Hz ES 7.1 MW-hr, 4x 20', Energy, 1000 kVA, 7084 kWh, ~340 minTime Shift - 60 Hz ES 7.6 MW-hr, 4x 20', Energy, 1000 kVA, 7590 kWh, ~364 minTime Shift - 60 Hz ES 8.1 MW-hr, 4x 20', Energy, 1000 kVA, 8096 kWh, ~388 minTime Shift - 60 Hz ES 8.6 MW-hr, 4x 20', Energy, 1000 kVA, 8602 kWh, ~412 minTime Shift - 60 Hz ES 9.1 MW-hr, 4x 20', Energy, 1000 kVA, 9108 kWh, ~437 minGrid Stabilizer - 60 Hz PGS1260, 1x 20', Power, 1000 kVA, 672 kWh, ~32 minGrid Stabilizer - 60 Hz PGS840, 1x 20', Power, 840 kVA, 448 kWh, ~25 min#Caterpillar: Confidential Green Unit of IssueAncilliary Items (Sold Separately)Microgrid Solution Commercial List PricePower Analytics Cyber-Secure Network List Price Add (Optional)40 FT ISO Container List Price Add (Optional)Each N/A $ 1,309,989 N/AEach N/A2,263,804$ N/AEach N/A2,507,909$ N/AEach N/A2,750,774$ N/AEach N/A3,257,104$ N/AEach N/A3,461,724$ N/AEach N/A3,705,829$ N/AEach N/A3,948,694$ N/AEach N/A4,191,559$ N/AEach N/A4,708,735$ N/AEach N/A4,903,749$ N/AEach N/A5,145,374$ N/AEach N/A $ 5,389,479 N/AEach N/A5,632,344$ N/AEach N/A990,332$ N/AEach N/A853,487$ N/A Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific components at this time. For pricing and availability, Sourcewell members can contact their local Caterpillar Dealer. #Caterpillar: Confidential Green
Quantity of BDPsQuantity of 20 Foot ContainersGrand Total Commercial List Price with Sourcewell Discount Applied (Incl Optional Items)Sourcewell Member List Price Discount1 1 1,021,791$ 22.00%1 2 1,765,767$ 22.00%1 2 1,956,169$ 22.00%1 2 2,145,604$ 22.00%1 3 2,540,541$ 22.00%1 3 2,700,145$ 22.00%1 3 2,890,547$ 22.00%1 3 3,079,981$ 22.00%1 3 3,269,416$ 22.00%1 4 3,672,813$ 22.00%1 4 3,824,924$ 22.00%1 4 4,013,392$ 22.00%1 4 4,203,793$ 22.00%1 4 4,393,228$ 22.00%1 1 772,459$ 22.00%1 1 665,720$ 22.00% Due to the customization and plethora of options, it is not feasible to provide a paper price list for these specific components at this time. For pricing and availability, Sourcewell members can contact their local Caterpillar Dealer. #Caterpillar: Confidential Green
Attachment B
Generator Specification
& Quote
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 1 of 6
To: Contact: Mr. Marc Betts Terms: Net 30, see T&C’s
Company: City of Victorville F.O.B. Jobsite, unloading by others Address: Sales Rep.: John Castro
City, Zip: Contact #: Cell: (951) 374-0888
Phone: 760-559-8149 Email: [email protected] Email: [email protected] Project Name: Victorville Generator - Amethyst Booster Pump Station SOURCEWELL Quote Rev #5
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 2 of 6
# Description Unit Price Qty Extension
i
New Caterpillar Model C32 GC (D1250 GC), EPA Tier 2 Stationary Emergency certification, UL2200 listed, IBC Seismic Certified, Diesel Standby Generator Set, 1250KW / 1562.5 kVA, 480V, 3 Phase, 4W includes:
- Caterpillar Standard Sound Attenuated Enclosure (75 dBA @ 23ft 100% load) in CAT white. - Caterpillar Standard UL-142 (2100-gallon / 24-hour) sub-base fuel tank - One (1) year Quinn standard PM1 (CVA)
- Two (2) year standard warranty on the generator only
NOTE: As-is, possibly no modifications allowed.
Galvanized access platforms with steps at one end of each side. (Not wrap around)
NOTE: Platform is highly recommended to meet the code-required height to reach the control panel/breaker handle on a unit with a base tank.
Passive DPF. Mounting Stand Included (Pre-Fitted. Shipped loose. Field-installed by others).
NOTE: A load bank rated at a minimum of 75% of the generator nameplate rating is strongly recommended for proper operation of a DPF or a T4 system. .
Floor-Standing (Stand-Alone) Resistive Load Bank Model 1250 kW at 480 Volts, 3-phase, 60 Hz, in NEMA 3R (shipped loose, install by others).
***NOTHING FOLLOWS***
Due to global market vulnerability and unknown tariffs, any material cost increases imposed on Quinn will be passed on to the buyer.
PRICING IS VALID FOR 30 days and equipment released by August 25, 2026
SALES TAX NOT INCLUDED. Buyer responsible for all taxes. Any offer to sell or any offer accepted shall be subject to the Terms and Conditions page.
Unless expressly stated on the face of this quotation, all prices, delivery schedules and product specifications are subject to change without notice.
Quotation is good for 30 days from quote date above, expires after that duration.
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 3 of 6
BILL OF MATERIALS (BOM)
Caterpillar automatic start control panel, GCCP1.2 generator mounted, digital readouts, onboard paralleling Panel illumination lights and auxiliary relay
Coolant level sensor
Engine run relay
Pre-alarm module, NFPA 99
Custom alarm module for pre-alarms and shut downs
Provision for customer BMS or monitoring system via Modbus/TCP IP (ethernet) and/or RS485, 2-wire IBC Seismic Certified
Local NFPA Annunciator (NFPA 99-110) communicates via RS-485 Data link, Remote Annunciator Panel & E-Stop (shipped loose. Installation by others) Generator mounted circuit breaker: 2000A 100% rated LSIP-G with ERMS breaker Electronic governor, Advanced Diesel Engine Management (ADEM) Caterpillar Integrated Voltage Regulator (IVR)
105 Deg C Rise Alternator with PMG Excitation
Initial fill of coolant, 50% solution
Alternator anti-condensation heater
Heavy Duty dual starter motors 24 volt
Batteries, lead-acid type, with battery rack and cables mounted Battery charger with alarms mounted within the generator enclosure Jacket water heater, 208v
Submittals and Shop drawings (electronic)
Operation and Maintenance Manuals (electronic)
Factory load test reports at 0.8 Power Factor.
Warranty – Caterpillar standard two-year warranty on the generator only
WARRANTY:
Generator – Two (2) year CAT standard warranty
DPF – One (1) year manufacturer standard warranty
Load Bank Two (2) year manufacturer standard warranty
NOTE: Warranty coverage details are available upon request.
SERVICES INCLUDED:
1. Delivery to the first destination in CA. Offloading and installation by the owner or their contractor.
2. One-time scheduled basic start-up/commissioning of your equipment by a factory-trained/Certified Technician. • Site access is limited to 1 level up or down
• Scheduled start-up/testing/commissioning and training are done on the same day during normal business hours of 7:00 am to 3:30 pm, Monday through Friday.
• Field-certified test reports (electronic)
• Demonstrate safety shutdowns during scheduled start-up • On-site training conducted during scheduled start-up
3. Resistive Load Bank Testing (2 hours, cable not included) during scheduled start-up.
Not included
Sales tax, Tariffs
Air or building permits
Offloading of equipment
Installation or anchoring or rigging
Diesel fuel (and UREA if applicable), initial or for testing Emission Source Testing (if applicable), equipment such as scissor lift and rental power for source testing engineers
Lead Times:
Submittals: Estimated (12 weeks) on receipt and approval of purchase order. (1 electronic copy) Equipment Delivery: Generator for option 1 (Estimated 45 Weeks per CAT availability letter dtd 6/22/26. Plus Estimated 10 weeks for Pre-fitting of DPF); DPF (Estimated 23 weeks)
Load Bank (Estimated 30 weeks)
for factory build time after submittal approval and written release of equipment.
Modifications: Estimated (Additional time TBD), additional time will vary depending on 3rd party or Quinn shop schedule and scope of work.
Not included: Unforeseen factory delays, transit time from factory or vendor, and/or delays due to project site readiness. ** Equipment prices and lead times are subject to change without notice.**
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 4 of 6
NOTES, EXCEPTIONS, CLARIFICATION
The equipment offered in this proposal is CAT standard product as listed above. Equipment is as stated above, call for any revisions to equipment quoted.
Quote is based on verbal only. No generator specs/drawings were provided.
We take exception to the following:
1) NETA Testing.
2) Factory witness test.
3) Emission Source testing (if applicable) scissor lift and rental power for source testing engineers are not included. 4) Crane rental at the job site and Quinn facility for unloading/assembly. Emission Source Testing is required by SCAQMD for all Tier 4 Final Compliant Packages. However, SCAQMD has not officially published the testing protocol. This is just an ESTIMATE. We can provide an accurate quote once SCAQMD publishes the required protocol for emission testing. Please add $50,000.00
Quotation does not include Sales Tax, any Air District or Building Permits, Off-loading or Crane Services, Installation or Anchoring, Initial Fuel fill or Test fuel, Major Testing unless otherwise specified in the Bill of Materials.
Depending on final height of installed generator set, a personal platform may be required to access the control panel and maintenance doors. Platform not included in this proposal, if required please call for quotation.
Start Up and Commissioning Services are provided for CAT factory/QPS supplied equipment only. Scope of work for Start Up Services available upon request. Out of Scope services to be billed on Time & Material basis in the field at purchaser's expense. QPS standard labor rates apply. Technician services are provided during normal business hours Monday through Friday.
EMISSIONS NOTE
"California Air Resources Board (CARB) has approved alignment with the federal New Source Performance Standards (NSPS). Such alignment allows for emergency standby engines to be exempt from Tier 4 emissions standards; however, local air districts can require more stringent emissions control. The prospective buyer of the equipment quoted above is hereby notified the NSPS exemption does not apply to non-emergency standby engines (e.g. prime power applications such as peak shaving, parallel operation with the grid, or storm avoidance), or portable engines, even if used for emergency standby. Consult the local air district for permitting requirements and required emissions controls. Presently, South Coast Air Quality Management District (SCAQMD) Rule 1470 requires the use of a particulate filter if an engine is located within 100 meters of a school, and may require either a diesel particulate filter or an oxidation catalyst, depending upon engine size, if the installation is within 50 meters of a sensitive receptor. Particulate filters may also be required for Title V and major polluting facilities. For emissions requirements specific to the project for which this engine is being quoted, please contact SCAQMD at 909-396-2000. Unless otherwise listed above a DPF is not included in this proposal, please call for quotation if a DPF is required for this project.”
Caterpillar engines require a minimum of 30% load to prevent engine damage due to wet-stacking. Depending upon the permit and site specific conditions, SCAQMD emergency engine permits will only allow between 20 and 50 hours of runtime per year for non-emergency applications such as testing and exercising. Passive Diesel Particulate Filter systems depend on generator loading of a minimum of 50-60% to achieve minimum exhaust temperature threshold to keep soot regeneration and the filter backpressure within acceptable levels. If the engine will be operated consistently at low loads/low exhaust temperatures, the customer should make provisions to add load via facility operations or a load bank. Active Diesel Particulate Filter systems require no external load in order to regenerate. If listed above, Passive DPF option pricing, does not include a load bank or a load bank circuit breaker. If a load bank is needed for this project, please call for quotation.
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 5 of 6
TERMS AND CONDITIONS
1. Acceptance of Order.
This Quotation is for Buyer's information only and is not a valid offer to sell unless signed by an authorized representative of Seller in the place provided on the face of this Quotation. Prices, terms and conditions in an order from Buyer, which are inconsistent with the prices, terms and conditions of this Quotation, will be rejected by Seller, and are of no force and effect unless accepted in writing by Seller. Prices, delivery schedules and the scope of work on this Quotation are subject to change at Seller’s discretion.
2. Liability.
Seller's liability on any claim of any kind, including claims for negligence, or for any loss or damage arising out of or connected with the manufacture, sale, delivery, installation, resale or use of any products covered by or furnished under any order connected with this Quotation shall be limited to those claims arising solely from the acts of Seller and Seller shall in no way be liable for any special, indirect, incidental or consequential damages. The term “consequential damages” shall include, but not be limited to, loss of anticipated profits, business interruption, loss of use, revenue, reputation and data, costs incurred, including without limitation, for capital, fuel, power and loss or damage to property or equipment. Buyer expressly acknowledges and agrees that Seller has set its prices in reliance upon the limitations of liability and other terms and conditions specified herein, which allocate the risk between Seller and Buyer and form a basis of this bargain between the parties. Any claims ag ainst Seller for shortages in shipments shall be made in writing to Seller within fifteen (15) days of receipt of shipment by Buyer. Unless otherwise provided for in writing, Seller's responsibility for shipment ceases upon delivery to carrier, and any claims for shortage, delays or damage occurring thereafter shall be made direct to carrier by Buyer. Seller shall not be liable for any delays in delivery attributable to strikes, labor disputes, lockouts, accidents, fires, delays in manufacture or in transportation, delays in delivery of component materials, floods, severe weather, or Acts of God, embargoes, governmental actions, or any other cause beyond the reasonable control of Seller. Seller shall not indemnify nor be liable to Buyer, Buyer’s assigns, successors, purchasers, lessees or licensees, or to any person or entity for any claims, losses, expenses or judgments arising out of or resulting in any way from the product or integration of compatibility of the product with any other components, processes, facilities or equipment that does not comply with the equipment manufacturer(s)’s recommendations.
3. Shipments.
Unless otherwise specified, all risk of loss from the goods shall shift to Buyer at such time as the goods are delivered to a carrier for shipment to Buyer. Unless otherwise specified, shipment dates are approximate and all quoted prices exclude shipping costs. Shipment of goods under any order accepted by Seller shall be subject to the approval by Seller of Buyer’s financial condition at the time of shipment. Whether or not terms of payment are specified elsewhere, Seller may, at its option, condition shipments under any order accepted by Seller upon receipt of satisfactory security or of cash prior to shipment. If, at Buyer’s request, shipment of goods under any order accepted by Seller is delayed more than thirty (30) days after the shipment date specified in the order, or the date the goods are ready for shipment, whichever is later, Seller will require immediate payment in full and/or assess additional charges for the expenses incident to such delay.
4. Termination.
In the absence of a written agreement between Buyer and Seller expressing different terms and conditions as to termination, any order accepted by Seller may be terminated prior to completion by Buyer only upon written notice to Seller and payment of Seller’s termination charges. If notice of termination is received by Seller after Seller has committed to buy the principal components for any order, termination charges shall include all direct and indirect costs incurred by Seller and the total profit anticipated by Seller. Additionally, Buyer’s instruction to Seller to stop work for thirty (30) days during the time specified for performance in any order may be construed by Seller as the equivalent of written notice of termination from Buyer and previous stipulations will be in effect.
5. Taxes.
Unless expressly stated, Seller's prices do not include sales, use, excise or similar taxes, which Seller may be required to pay in filling Buyer's order. The amount of any applicable tax shall be paid by Buyer as an additional charge unless specifically included in any order accepted by Seller, or in lieu thereof, Buyer shall provide Seller with a tax exemption certificate acceptable to the taxing authorities.
6. Patents.
Seller shall, at its own expense, defend and save Buyer harmless from the expenses and consequences of any suit or procedure brought against Buyer, based on a claim that the use or sale of goods specified in any order accepted by Seller constitutes an infringement of any United States letters of patent in existence on the date of any such order; provided Buyer promptly notifies Seller in writing of such claim and gives the necessary authorization, information and assistance for the defense of such a claim.
7. Changes.
Seller, and Seller's suppliers, may, at any time, without notice to Buyer, make changes (whether in design, materials, the addition of improvements, or otherwise) in any goods specified in any order accepted by Seller without incurring any obligation of any kind as a result thereof, but only to the extent that such change does not cause the goods specified to fail to meet Buyer's requirements. Buyer may, in its order, provide for changes in its requirements with provision for a corresponding equitable change in the price, if any; but in no instance shall Buyer make changes, which are substantially different from the scope of the original order accepted by Seller.
8. Export Sales.
In the event the goods and services specified in any order accepted by Seller are for export, the Buyer shall be responsible for securing export, import and other licenses or authorizations as may be required. The conditions specified in this Section apply to all export transactions. This transaction is only for the sale of the equipment requested and detailed in this Quotation. Not included is any startup assistance, field-testing, training or any other services that might be required on site. Also not included is any installation, installation audits, sea trials (if applicable), or installation materials. To ensure proper application, installation, and warranty integrity, Buyer is encouraged to contact the applicable Caterpillar Dealer for these services. The costs of these services are not included in the sale price nor will Seller be responsible for any such related costs.
9. Permits for Equipment Design, Installation and Operation.
As a supplier of equipment, disclaims responsibility for any and all permits or licenses necessary to design, install and operate the equipment due to zoning, air quality, environmental, safety, building or construction codes or use permits pertaining to Buyer’s particular application of such equipment or any similar type of permit. Special attention should be given to the requirements of local air district rules and California Air Resources Board (CARB) regulations pertaining to permit requirements. Seller is quoting on equipment based on the specifications set forth in this Quotation. If additional equipment or engine modifications are required beyond the specifications, such as additional equipment required for compliance by a local air district or CARB, those items are not included and are the responsibility of Buyer. For example, South Coast AQMD (SCAQMD) Rule 1470 may require controls and limits on particulate matter, especially when the engine installation is within 100-meters from a school, or within 50 meters of a sensitive receptor (defined in Rule 1470). Ultra low sulfur fuel is required for particulate filters. CARB Diesel Fuel, or other CARB-approved alternative fuel, is also required for compression ignition (CI) engines operated in California. When indicated in the bill of materials, the proposed equipment may be SCAQMD pre-approved as Certified Equipment. This certification does not eliminate the permit process or responsibility of others to obtain a permit.
Procurement of certified equipment assures permitability, reduces the permit processing fees and reduces the time necessary to obtain the permit through SCAQMD.
10. Start-up, Commissioning and Operating Requirements.
Equipment provided in this Quotation may require start-up and commissioning, including inspection(s), to ensure the equipment is installed in accordance with manufacturer(s)’s recommendations and specifications.
If Seller has commissioned the equipment, Buyer agrees not to modify the design or components of the installation such that the modifications would violate any legal requirements of the installation, or would cause the installation to deviate from manufacturer(s)’s recommendations and specifications. Buyer acknowledges and agrees that, with respect to products sold to Buyer in connection with this Quotation, Buyer shall have the sole responsibility to ensure the products are properly installed, operated and maintained in accordance with the manufacturer(s)’s recommendations and specifications, and to determine and comply with all applicable Federal, state, local and regulated use restrictions and requirements, including, without limitation, the continuing responsibility to ensure that the use of product is in full compliance with all applicable environmental laws and regulations. Failure to install, operate and maintain the products in accordance with the manufacturer(s)’s recommendations and specifications will invalidate any applicable manufacturer’s warranty.
11. Additional material.
Only those items listed in this Quotation are included with any order. For example, unless specifically identified in this Quotation, the following items are not included with any purchased equipment: any exhaust or fuel piping, main fuel tank, fuel, duct work, special tools, insulation, wiring, cable, bus duct, concrete, anchor bolts, rigging or any material or labor incidental to the installation itself. Buyer specifically assumes responsibility for the provision of any such items if not specifically identified in the Quotation.
12. Hours of services.
When included, delivery, startup assistance, field testing, training or any other services required on site will be provided during the normal weekday working hours of 7:00 am to 4:30 pm. Delivery or services occurring at any other time, weekends or holidays is subject to premium charges.
13. Warranty.
The equipment manufacturer's warranty is the only warranty provided in connection with the equipment described in this Quotation. Buyer is responsible for operating and maintaining the equipment as specified by the manufacturer. The manufacturer’s warranties are exclusive and in lieu of all other warranties either oral or written, express or implied, including but not limited to any warranty of merchantability or fitness for a particular purpose. Seller is not a manufacturer and makes no warranty and shall not, under any circumstances, be liable for any indirect or special, incidental or consequential damages including but not limited to loss of production, loss of profit, loss of use or business interruption, or any other economic loss, whether arising from contract, tort, strict liability or any other theory of law. Buyer, Buyer’s assigns, successors, purchasers or any other person designated to operate the equipment as the end user, is responsible for operating the equipment in accordance with manufacturer(s)’s recommendations and specifications. Failure to perform all scheduled maintenance may result in damage to the equipment, and may be grounds to deny warranty coverage.
14. Terms.
Terms of payment are due upon receipt of invoice with no deductions of any kind for retentions, setoffs, discounts or other similar items. A finance charge of 1.5% per month (not to exceed the maximum allowed by law) will be charged on all past due invoices. When necessary Seller will file a California “Preliminary 20-day notice” pursuant to Section 3097 of the California Civil Code.
QUOTATION NO. 240129 Rev 5
3500 Shepherd Street, City of Industry, California 90601 (562) 463-6000 Fax: (562) 463-7156 Date: July 17, 2026 Page: 6 of 6
15. Cost additives.
A: Unit Cost.Quotation prices are valid for 30 days only and are based on current market prices as of date of quotation. The Seller reserves the right to adjust the final invoice with a price escalation up to 6% due to 1) purchase orders being received after expiration of quotation, 2) fluctuations in raw materials market prices at time of order, 3) labor rate increases at time of scheduled field services, 4) delays in submittal approvals and/or release of equipment or 5) additional items or services provided that were not included as part of the original quotation. Since final invoicing can and may take place up to a year or more from original quotation date.
B: Delays.If delivery is delayed by customer Buyer beyond original shipment date, purchase price is due 30 days after original shipment date and a storage and handling charge will be applied and is due each month until delivery. Finance charge of 1.5% per month (not to exceed the maximum allowed by law) is applicable on any amounts arising hereunder or in connection herewith that are not paid when due.
C: Start up.
If construction of the facility or other delays are experienced or expected, which prohibit the initial startup of the equipment beyond one year from delivery additional costs may be imposed including, but not be limited to, long term storage preparation, inspection charges, parts, service, etc.
16. Lead Times.
Lead times are based on manufactures estimated timetables. Project completion time may vary due to delays in receipt of purchase orders, submittal approval, release of equipment, manufactures unforeseen delays in production or holiday schedules. Project completion time frame cannot be guaranteed. Back orders will be processed as soon as available. Part number changes may be made to provide latest improved interchangeable items of equipment.
17. Governing Law and Venue.
The rights and obligations of the parties with respect to the transactions contemplated by this Quotation shall be governed in all respects by the laws of the State of California. The parties hereto irrevocably agree that the exclusive venue for any litigation arising in connection with the transactions specified in this Quotation shall be in the courts located in the County of Los Angeles, California.
18. Attorneys’ Fees and Costs.
In the event of any legal action, controversy, claim, or dispute between the parties involving the transactions contemplated by this Quotation, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorneys’ fees, and costs.
19. Additional Conditions.
Buyer shall furnish to Seller, at no cost, suitable working space, storage space, adequate heat, telephone, light, ventilation, regulated electric power and outlets for testing purposes (if applicable). The facilities shall be within a reasonable distance from where any applicable services are to be provided. Seller and its representatives shall have full and free access to the equipment in order to provide any applicable services.
Buyer shall provide the means to shut-off and secure electric power to the equipment and provide safe working conditions. Buyer shall not require Seller or its employees, as a condition to site access or otherwise, to further agree or enter into any agreement, which waives, releases, indemnifies or otherwise limits or expands any rights or obligation whatsoever. Any such agreements shall be null and void. Seller is under no obligation to remove or dispose of parts or equipment unless specifically agreed upon in Seller’s scope of work. Seller-removed parts become the property of Seller. Seller must not perform any electrical power switching unless specifically requested by Buyer, under the supervision of Buyer, and subject to procedures jointly agreed to in advance. Notwithstanding Buyer’s request, Seller may refuse to perform power switching, if in the opinion of Seller, such action would be unsafe. IN THE EVENT THAT SELLER PERFORMS POWER SWITCHING, TO THE FULLEST EXTENT PERMITTED BY LAW, BUYER SHALL INDEMNIFY, DEFEND, AND HOLD SELLER HARMLESS FROM ANY AND ALL LIABILITY, ACTIONS, SUITS, CLAIMS, DEMANDS, DAMAGES, COSTS, AND EXPENSES (“LOSSES”) ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR RESULTING FROM SELLER’S PERFORMANCE OF POWER SWITCHING, REGARDLESS OF WHETHER THE LOSSES RESULT FROM SELLER’S NEGLIGENCE (WHETHER ACTION OR PASSIVE, AND WHETHER SOLE, JOINT, OR CONCURRENT), AND EVEN THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING DEFECT, STRICT LIABILITY, OR OTHER LEGAL FAULT OF SELLER. THIS INDEMNITY SHALL APPLY TO ANY ACTS OR OMISSIONS OR NEGLIGENT CONDUCT, WHETHER ACTIVE OR PASSIVE, ON THE PART OF EITHER SELLER OR BUYER. If OSHA or any other federal, state or local government, trade association, or contractual regulations or standards require a “safety person” to be on site during the performance of services, or in the event of a trade union jurisdictional dispute where trade union represented personnel are required to assist or stand by during the performance of services by Seller, Buyer shall be responsible for providing for and paying for any charge or wages for such person(s), as applicable. Buyer shall immediately inform Seller, in writing, at the time of order placement and thereafter, of any unsafe or hazardous substance or condition at the site, including, but not limited to, the presence of asbestos or asbestos-containing materials, and shall provide Seller with any applicable Material Data Safety Sheets regarding the same. Any losses, costs, damages, claims and expenses incurred by Seller as a result of Buyer’s failure to advise Seller shall be borne by Buyer. Seller, in its sole discretion and without cost or penalty, reserves the right to cancel its performance under this Agreement or any order immediately upon written notice to Buyer following Seller's discovery of unsafe or hazardous site substance or condition or any other circumstance altering Seller performance of Services. Buyer shall appoint a representative familiar with the site and the nature of the Services to be performed by Seller to be accessible at all times that Seller personnel are at the site. Seller shall not be liable for any expenses incurred by Buyer in removing, replacing or refurbishing any Buyer equipment or any part of Buyer’s building structure that restricts Seller's access. Buyer's personnel shall cooperate with and provide all necessary assistance to Seller. Seller shall not be liable or responsible for any work performed by Buyer.
ACCEPTED BY:
By: ________________________________
Company: __________________________
Date: ____________________
P.O. #: ____________________________
Item Number: 29
City Council / Board of Directors
Written Communications
Meeting of: August 18, 2026
Submitted By:
James Murawski, Airport Director
Subject:
Standard Sublease Agreement for Buildings 787 and 788 by and between the Southern California Logistics Airport Authority and Exquadrum, LLC Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve entering into a Standard Sublease Agreement for Buildings 787 and 788 (“Agreement”), by and between the SCLAA and Exquadrum, LLC; and (2) Authorize the Executive Director to execute said Agreement; and (3) Adopt Resolution No. SCLAA 26-005 amending the 2026-2027 budget increasing revenue in Airport account 4501172A-45200 by $61,938.48 and Airport account 4500125-45220 by $40,045.56.
Fiscal Impact:
Approval of the Agreement presented herein will generate approximately $1,896,792.38 in gross revenue over the initial term of the Agreement from July 1, 2026, through June 30, 2041. A maximum rent credit of $100,000 is contained in the Agreement for specific tenant improvements, which if fully realized will reduce the net revenue generated by this Agreement to approximately $1,796,792.38. The first four fiscal years summarized in the table below.
Fiscal
Year
FY 2026 - 2027
July - June
FY 2027 - 2028
July – June
FY 2028 - 2029
July – June
FY 2029 - 2030
July – June
Gross
Revenue $101,984.04 $105,043.56 $108,194.87 $111,440.71 Rent
Credit $0 $0 ($80,000) ($20,000)
4 8
5 7
Net
Revenue $101,984.04 $105,043.56 $28,194.87 $91,440.71
The revenue associated with this Agreement increases the budgeted revenue established in Airport account 4501172A-45200 by $61,938.48 and 4500125-45220 by $40,045.56 for fiscal year 2026-2027 and thereby requires an additional revenue appropriation as displayed in the following table.
Current Budget Fiscal Year 2026-2027
Building 787 & 788 Revenue 4501172A-45200 $0
Ground Sublease Revenue 4500125-45220 $393,338
Proposed Budget Fiscal Year 2026-2027
Building 787 & 788 Revenue 4501172A-45200 $61,938.48
Ground Sublease Revenue 4500125-45220 $433,383.56
Resolution No. SCLAA 26-005
Building 787 & 788 Revenue 4501172A-45200 $61,938.48
Ground Sublease Revenue 4500125-45220 $40,045.56
Future appropriations for the subject Agreement will be considered at the time the annual budget is approved.
This Agreement contains provisions for tenant improvements and rent credits. The agreed upon tenant improvements include the repair and replacement of multiple roll-up doors, painting, repairing walls and flooring, roof repairs, site grading, fencing and gate installation, and other general repairs as approved. Given that the buildings were constructed circa 1957 and that there has been no significant use of the facilities since the early 1990’s, these repairs are essential and will extend the life of the building and add long term value.
Rent credits are issued in accordance with the terms of the Agreement following substantial completion of the Tenant Improvements, after a thorough review of all cost documentation, including proof of payment, and documented pre and post tenant improvement inspections by SCLAA staff. In the case of this Agreement, the tenant has until June 30, 2028, to substantially complete the contemplated improvements.
The rent credits for the anticipated tenant improvements are scheduled to begin in September of 2028, and will be budgeted for in the appropriate fiscal years. The maximum amount of rent credits allowed in this Agreement is fixed at a not-to-exceed amount of $100,000, which shall be applied over 13 consecutive months in an amount not to exceed $8,000 per month. Actual rent credits could be substantially lower, depending on what work is completed.
4 8
5 7
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:
Exquadrum Inc. (“Exquadrum”), founded in 2002 by Eric Schmidt and Kevin E. Mahaffy, is a rocket and space flight research and development engineering company that has been a tenant at the Southern California Logistics Airport (“SCLA”) since 2011.
Exquadrum Inc. leases 8.8 acres of land located on the north end of the SCLA, commonly referred to as the FORGE testing site (“FORGE”). Exquadrum Inc. has worked on several rocket motors that have been tested at the FORGE site, including the Tactical Air-to-Air Solid Rocket Motor, the Hypersonic Rocket, which was successfully tested in late 2024, and GRIFFIN-1 which was successfully tested in December of 2025.
Mach Industries Inc. (“Mach”), founded in February 2024, is a U.S.-based defense technology company, with a valuation of approximately $480 million as of June 2025.
Mach specializes in next generation unmanned aerial vehicles (“UAVs”) and hydrogen powered defense technologies. Mach utilizes a vertically integrated manufacturing strategy, allowing the company to maintain control over multiple stages of its supply chain rather than relying on outsourced components. As such, they are seeking to expand their manufacturing capabilities to support the production needs of its defense projects. Mach recently acquired Exquadrum Inc., and under the umbrella of Mach, will become Exquadrum, LLC, maintaining the current corporate officers of Exquadrum Inc.
Buildings 787 and 788 at the SCLA were built in 1957 for missile storage and light manufacturing. The buildings are comprised of thick poured in place concrete walls and heavy steel doors and were built to securely store military ordnance and contain and reduce the impact of a potential explosion. Both buildings have been predominantly vacant since the early 1990’s, with some occasional use by Airport and City departments for secure storage of bulky materials.
Discussion:
Exquadrum, LLC, requests to enter into a fifteen-year sublease agreement (“Agreement”) for Buildings 787 and 788. The Agreement also contemplates three additional, five-year option terms. Buildings 787 and 788 will be for the use of storage, handling, assembly, mixing and controlled processing of rocket motors and related components. The Subleased Premises consist of Building 787 and 788, which are both comprised of approximately 5,491 square feet for a total of 10,982 square feet of storage space and Additional Yard Space comprised of approximately 60,675 square feet. Exquadrum, LLC, has agreed to pay $8,498.67 per month with an annual 3% inflator. This amounts to approximately $0.47 per square foot for Buildings 787 and 788 and approximately $.05 per square foot for the Additional Yard Space which is comparable to similar SCLA buildings and Yard Space.
4 8
5 7
The annual revenue generated during the first seven years of the Agreement is within the annual authority of the Executive Director. However, because an annual rental inflator of 3% is included in the Agreement, the annual revenue generated in years eight through fifteen exceeds the Executive Director’s annual authority. Therefore, the Agreement is being presented to the SCLAA Board of Directors.
Because the Standard Sublease Agreement will maintain local employment, Exquadrum, LLC, currently has 85 employees, and produces a steady revenue stream, staff recommends that the Southern California Logistics Airport Authority Board of Directors:
(1) approve the Standard Sublease Agreement with Exquadrum, LLC, for Buildings 787 and 788 and (2) authorize the Executive Director to execute said Agreement and (3) adopt Resolution No. SCLAA 26-005 increasing revenues in account 4501172A-45200 by $61,938.48 and 4500125-45220 by $40,045.56. Such approval is being requested, subject to any minor, non-substantive modifications to the Sublease Agreement as approved by the Southern California Logistics Airport Authority Legal Counsel and the Southern California Logistics Airport Authority Executive Director.
Staff remains available for any questions or comments you may have.
Prepared By:
Jacob Kern, Airport Leasing Technician
Attachments: A. General Site Map
B. Standard Sublease Agreement for Buildings 787 and 788 C. Resolution No. SCLAA 26-005
ATTACHMENT A
General Site Map
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Attachment$
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- +
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- +
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Additional Yard
Space
+/- 60,675 Sq. Ft.
Vehicle Parking
Vehicle Parking
Vehicle Parking
Vehicle Parking
Bldg 788
+/- 5
,491 Sq. Ft.
Bldg 787
+/- 5,491 Sq. Ft.
Gate Entrance
ATTACHMENT B
Standard Sublease
Agreement for Buildings
787 and 788
24.07.30 SCLAA Standard Sublease Page 1 Exqudrum, LLC Bldgs 787 and 788
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
STANDARD SUBLEASE AGREEMENT
BUILDINGS 787 AND 788
This Sublease Agreement (the “Sublease”) is made this _____ day of ____________, 2026, by and between the SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”), a California joint powers authority, (hereinafter referred to as “Sublessor”) and EXQUADRUM, LLC, a Delaware limited liability company (hereinafter referred to as “Sublessee”). Sublessor and Sublessee are sometimes referred to hereinaft er individually as a “Party” and collectively as the “Parties.”
RECITALS
These Recitals are included to assist in interpreting this Sublease and to understand the basis upon which certain terms and conditions have been included. It is not intended, nor should it be construed, to supersede or amend the specific terms and conditions of this Sublease.
A. The United States Air Force (“Air Force”) and the Victor Valley Economic Development Authority (“the Authority”) have previously entered into certain Department of the Air Force Lease pertaining to portions of the former George Air Force Base, which is now known as the Southern California Logistics Airport (“SCLA”) (hereinafter the “Air Force Lease”).
B. The Authority has delegated its decision-making authority with respect to the SCLA to the Sublessor, who now has the authority to enter into transactions on behalf of the Authority.
C. The Air Force (“Grantor”) and the SCLAA (“Grantee”) have entered into certain Air Force Quitclaim Deed(s) (“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. Sublessee seeks to sublease from the Sublessor a portion of the property subject to the Air Force Lease (hereinafter the “Subleased Premises”).
TERMS AND CONDITIONS
1. Subleased Premises. Subject to the terms and conditions herein contained, Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor certain property, which is part of the SCLA, described as follows (the “Subleased Premises”):
a. A portion of that certain real property designated as Building 787, comprised of approximately Five Thousand Four Hundred Ninety-One (5,491) square "!
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24.07.30 SCLAA Standard Sublease Page 2 Exqudrum, LLC Bldgs 787 and 788 feet of storage space and Thirty-One Thousand Five Hundred (31,500) square feet of Yard Space, together with the improvements thereon, located at the SCLA at 13745 Missile Road, Victorville CA 92394, as depicted on Exhibit A , attached hereto and incorporated herein by this reference; and
b. A portion of that certain real property designated as Building 788, comprised of approximately Five Thousand Four Hundred Ninety-One (5,491) square feet of storage space and Thirty-One Thousand Five Hundred (31,500) square feet of Yard Space, together with the improvements thereon, located at the SCLA at 13745 Missile Road, Victorville CA 92394, as depicted on Exhibit A , attached hereto and incorporated herein by this reference; and
c. That certain Additional Yard Space adjacent to the aforementioned buildings, consisting of approximately Sixty Thousand Six Hundred Seventy-Five (60,675) square feet as depicted on Exhibit A; and
d. all appurtenances, rights, privileges and easements in any way applicable thereto.
2. Term. The initial term of this Sublease shall be for a period of Fifteen (15) years, (the “Initial Term”) commencing on July 1, 2026, (the “Sublease Commencement Date”) and expiring on June 30, 2041 (the “Sublease Expiration Date”) unless sooner terminated or extended as hereinafter provided. To the extent any of the leases or subleases referenced in Recital A hereof are terminated, and such lease or sublease governs this Sublease, then this Sublease shall also terminate, as of the date of termination of the applicable governing lease or sublease.
3. Option to Extend Term. Upon expiration of the Initial Term, Sublessee shall have the option to renew this Sublease for three (3) additional five (5) year terms (the “Option Terms”), provided that: (i) Sublessee is in good standing and otherwise in full compliance with all of the terms and conditions of this Sublease; (ii) Sublessee provides Sublessor written notice of its desire to renew no later than one hundred eighty (180) days prior to the expiration of the Term; and (iii) Sublessor confirms in writing Sublessee’s Option Term. Only one (1) Option Term may be exercised at a time by Sublessee, and upon confirmation of such exercise by Sublessor, all references to the Expiration Date shall mean June 30, 2046, June 30, 2051, and June 30, 2056, respectively. All further references to the Term of this Sublease shall mean and include the Initial Term and any confirmed Option Term.
4. Termination. This Sublease shall only terminate prior to the Expiration Date for such reasons as are specifically set forth in the provisions of this Sublease.
5. Right to Terminate for Development. INTENTIONALLY OMITTED.
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24.07.30 SCLAA Standard Sublease Page 3 Exqudrum, LLC Bldgs 787 and 788
6. Rent.
a. Monthly Base Rent. During the first year of the Initial Term, Sublessee shall pay to Sublessor as rent for the Subleased Premises the amount of Eight Thousand Four Hundred Ninety-Eight Dollars and Sixty-Seven Cents ($8,498.67) per month (the “Monthly Base Rent”). Commencing on July 1, 2027, the Monthly Base Rent shall be increased by three percent (3%), and on each annual anniversary of the Sublease Commencement Date thereafter during the Term (or during any Option Term exercised in accordance with the provisions of Section 3 hereof), the then-current Monthly Base Rent shall be increased by an additional three percent (3%). All further references to the Monthly Base Rent shall mean and include any such increased amount as calculated under the provisions of this paragraph. The Monthly Base Rent represents the summation of Building 787 rent in the amount of Two Thousand Five Hundred Eighty Dollars and Seventy-Seven Cents ($2,580.77), Building 788 rent in the amount of Two Thousand Five Hundred Eighty Dollars and Seventy-Seven Cents ($2,580.77), and Additional Yard Space rent in the amount of Three Thousand Three Hundred Thirty-Seven Dollars and Thirteen Cents (3,337.13).
b. Tenant Improvements. Within twenty-four (24) months of the Sublease Commencement Date, for a final completion date of no later than June 30, 2028, Sublessee shall undertake and substantially complete, at its sole expense, certain tenant improvements to the Subleased Premises (the “Tenant Improvements”) as further described on Exhibit B attached hereto and incorporated herein by this reference. Sublessee shall construct the Tenant Improvements in accordance with Section 14, 17 and 22 of this Sublease, using its own staff and/or properly licensed and insured contractors and in full compliance with any applicable prevailing wage or public bidding requirements.
c. Rent Credits. As consideration for substantially completing the Tenant Improvements within the time period set forth above, and subject to the provisions of subsections i and ii hereof, Sublessor shall, commencing on September 1, 2028, and continuing for approximately Thirteen (13) consecutive months of the Initial Term of this Sublease, provide Sublessee with a monthly rental credit in an amount equal to fifty percent (50%) of the anticipated cost of Two Hundred Thousand Dollars ($200,000) for the tenant improvements to Buildings 787 and 788. The rental credit shall be based upon actual costs incurred by Sublessee to construct the Tenant Improvements, as verified and approved by Sublessor pursuant to subsection (i) below.
The rental credit shall not exceed a total of One Hundred Thousand Dollars ($100,000) and shall be applied on a monthly basis toward the Sublessee’s Monthly Base Rent in an amount not to exceed Eight Thousand Dollars ($8,000) monthly.
i. Following the substantial completion of the Tenant
Improvements, Sublessee shall provide to Sublessor all invoices with proof of payment, Tenant Improvement Certifications, as further described on Exhibit B and other evidence of actual cost incurred together with a cost summary cover page (the “Close-
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24.07.30 SCLAA Standard Sublease Page 4 Exqudrum, LLC Bldgs 787 and 788 Out Statement”). Upon receipt of the Close-Out Statement, Sublessor shall verify same and calculate the actual total amount of the rent credits due to Sublessee.
ii. Should Sublessee not substantially complete the Tenant Improvements within twenty-four (24) months following the Sublease Commencement Date for a final completion date of June 30, 2028, and provide a Close-Out Statement to Sublessor documenting the actual costs incurred, Sublessee shall not be eligible for rent credits described in Section 6.c.
d. Payment. Monthly Base Rent shall be payable in advance prior to the first (1st) day of each calendar month and without demand to:
Southern California Logistics Airport Authority
Attention: Airport Director
18374 Phantom West
Victorville, California 92394
or at such other place as Sublessor may designate in writing from time to time.
Sublessee shall also pay to Sublessor within thirty (30) days of presentation of an invoice, such other charges as it may incur for use of facilities and services at the SCLA which shall be charged in accordance with the SCLA Rules and Regulations as set forth on Exhibit C, attached hereto and incorporated herein by this reference, as such may be amended from time to time by Sublessor.
7. Security Deposit. Sublessee shall deposit with the Sublessor upon execution hereof the sum of Eight Thousand Four Hundred Ninety-Eight Dollars and Sixty-Seven Cents ($8,498.67), as security for Sublessee’s faithful performance of Sublessee’s obligations hereunder (the “Security Deposit”). If Sublessee fails to pay rent or other charges due hereunder, fails to pay any utility or service provider, or otherwise defaults with respect to any provision of this Sublease, the Sublessor may use, apply or retain all or any portion of said deposit for payment of any rent or other charges in default or for the payment of any other sum to which the Sublessor may become obligated by reason of Sublessee’s default, or to compensate the Sublessor for any loss or damage which the Sublessor may suffer thereby. At all times during the Term hereof, Sublessee must maintain at a minimum the amount of Security Deposit specified in this Section.
8. Brokerage Commission. Sublessor and Sublessee represent and affirm to each other that they have not had any dealings with any real estate brokers, finders or agents and no commissions or fees are payable by either Party in connection with this Sublease.
9. Late Charge. Sublessee hereby acknowledges that late payment by Sublessee to Sublessor of any installment of rent, or any other sums due hereunder will cause Sublessor to incur costs not contemplated by the Sublease, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any installment of rent, or "!
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24.07.30 SCLAA Standard Sublease Page 5 Exqudrum, LLC Bldgs 787 and 788 any other sum due from Sublessee is not received by the Sublessor within ten (10) days after such amount is due, whether or not any notice of default or other notice has been given, Sublessee shall pay to the Sublessor a charge equal to six percent (6%) of the amount past due (the “Late Charge”), in addition to the payment of the past due amount itself. The Parties hereby agree that such Late Charge represents a fair and reasonable estimate of the costs the Sublessor will incur by reason of late payment by Sublessee, and no more than one (1) Late Charge shall be assessed per month. Notwithstanding the foregoing, in the event the Sublessee elects to make annual payments in advance, then no Late Charge shall apply.
10. Limited Right to Possession of the Subleased Premises. Sublessor shall deliver possession of the Subleased Premises to Sublessee on or before the Sublease Commencement Date, free and clear of all tenants, occupants, and right of any third parties except as hereafter provided in this Section 10. Sublessee agrees that the terms of its possession shall be subject to any outstanding easements and rights-of-way not within the control of the Sublessor and further to the right of entry by the United States Air Force as provided under the Air Force Leases. The Sublessor shall use best efforts to ensure the quiet use and enjoyment of the Subleased Premises by Sublessee.
However, unreasonable interference by Sublessor or the Air Force with Sublessee’s quiet enjoyment of the Subleased Premises that results in material and demonstrable financial detriment to Sublessee and Sublessee being unable to continue its business functions in a commercially reasonable manner, shall be grounds for termination of the Sublease by Sublessee.
11. Holding Over. In the event Sublessee, with the Sublessor’s prior written consent, holds over and continues in possession of the Subleased Premises, or any part thereof, after the Expiration Date, such occupancy shall be considered a month-to- month tenancy subject to all the terms and conditions of this Sublease in effect on the day immediately preceding the Expiration Date , except that the Monthly Base Rent for any such holdover period shall be increased to one hundred fifty percent (150%) of the then current Monthly Base Rent. If Sublessee, without the Sublessor’s prior written consent, holds over or continues in possession of the Subleased Premises, or any part thereof, after the Sublease Expiration Date of this Sublease, such occupancy shall be deemed a tenancy at sufferance, permitting the Sublessor to immediately commence eviction proceedings without notice to Sublessee.
12. Right to Relocate. INTENTIONALLY OMITTED.
13. Maintenance. Except for excessive repair and maintenance necessitated solely by Sublessor’s activities, Sublessee shall at all times during the Term hereof and until surrender and Expiration, keep and maintain the Subleased Premises in good and substantial order and repair, and shall undertake all necessary repair and maintenance of the Subleased Premises. Sublessee shall be responsible for all operating expenses associated with maintaining the Subleased Premises including, but not limited to:
cleaning; light bulb replacement; procurement of supplies and materials; preventative maintenance; repair; signs; sidewalks; all monthly, quarterly, and annual "!
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24.07.30 SCLAA Standard Sublease Page 6 Exqudrum, LLC Bldgs 787 and 788 inspection/servicing and repair of the Su bleased Premises mechanical, electrical, lighting, and life safety systems; repairs to trade fixtures and/or equipment, doors, ceilings, roofing, floors; exterior painting, resurfacing paved exterior areas and the like; landscaping, associated fees, etc. Sublesse e agrees at Sublessee’s sole cost and expense to procure, maintain throughout the Term, and supply copies to Sublessor.
Sublessee also agrees throughout the Term to supply copies of -all life safety related certifications and/or inspection records to the Sublessor in a timely manner.
14. Use and Condition of Subleased Premises. The Subleased Premises are to be used by Sublessee for those purposes more particularly provided for on Exhibit D, attached hereto and incorporated herein by this reference, and for no other purpose unless expressly agreed to by the Sublessor in writing. Sublessee agrees to use the Subleased Premises in such a manner as to not interfere with the Sublessor’s rights in the Subleased Premises or the surrounding areas, to comply with all airport rules and regulations, all applicable governmental laws, ordinances, and regulations in connection with its use of the Subleased Premises, to keep the Subleased Premises in a clean and sanitary condition, and to use all reasonable precaution to prevent damage, or injury to the Subleased Premises.
a. Permits. Sublessee, at its sole cost and expense, shall apply for and obtain any and all permits and/or certifications required by any federal, state or local governmental entity, including but not limited to the Mojave Desert Air Quality Board, required to conduct the use permitted in this Sublease. Such permits shall include, but not be limited to, any which may be required for the air handling and ventilation requirements for the Subleased Premises. Furthermore, Sublessee shall coordinate and cooperate with the Mojave Desert Air Quality Board as may be required from time to time. Any and all such permits and/or certifications shall be obtained in such a manner so as to run in favor of the Subleased Premises and/or the Sublessor, and such permits or certifications shall remain with the Subleased Premises upon the expiration or termination of the Sublease.
b. No Warranties. Except as provided herein, Sublessee agrees that no promises, covenants, representations, statements or warranties have been made on behalf of the Sublessor to Sublessee respecting the condition of the Subleased Premises, or the manner of operating the Subleased Premises or the maintaining of any repairs to the Subleased Premises.
c. Acceptance of Subleased Premises. Sublessee acknowledges that it has satisfied itself by its own independent investigation that the Subleased Premises are suitable for their intended use, and that neither the Sublessor nor the Sublessor’s agent or agents have made any representation or warranty as to the present or future suitability of the Subleased Premises for the conduct of Sublessee’s business.
Sublessee’s taking possession or use of the Subleased Premises for any purpose shall constitute Sublessee’s acceptance of the S ubleased Premises “as-is” in its existing condition.
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24.07.30 SCLAA Standard Sublease Page 7 Exqudrum, LLC Bldgs 787 and 788 d. Notice of Presence of Asbestos and Lead-Based Paint. Sublessee, its successors and assigns are warned that the Subleased Premises may contain asbestos materials and lead-based paint materials. No warranties, either expressed or implied, are given with regard to the quantity, location or condition of the asbestos containing materials or the lead-based paint materials. Sublessee, its successors and assigns, shall be deemed to have relied solely on their own judgment in assessing the overall condition of all or any portion of the Subleased Premises, including any asbestos hazards or lead-based paint hazards or concerns. Sublessee acknowledges that Sublessee was given every opportunity to inspect the Subleased Premises to assess the risk, if any, from asbestos containing material or lead-based paint materials.
e. No Liability Assumed by Sublessor. The Sublessor assumes no liability for damages for personal injury, illness, disability or death to Sublessee or to Sublessee’s successors, assigns, employees, invitees, or any other persons subject to Sublessee’s control or direction, or to any person, including members of the general public arising from or incident to the purchase, transportation, removal, handling, use, disposition or any activity causing or leading to contact of any kind whatsoever with asbestos or lead-based paint on the Subleased Premises which is the subject of this Sublease, whether Sublessee, its successors or assigns has or have properly warned or failed to properly warn the individuals injured. Sublessee, its successors and assigns, further agree that in its use and occupancy of the Subleased Premises, it will comply with all federal, state and local laws relating to asbestos and lead-based paint.
f. Personal Property. Sublessee sh all, at the Sublease Expiration Date or such other termination of this Sublease, by lapse of time or otherwise, remove all of Sublessee’s personal property, repair any damage to the Subleased Premises resulting therefrom, and surrender the Subleased Premises to the Sublessor in as good a condition as when Sublessee took possession, normal wear and tear excepted.
15. Waste or Nuisance. Sublessee shall not commit or permit the commission by others of any waste on the Subleased Premises. Sublessee shall not maintain, commit, or permit the maintenance or commission of any nuisance on the Subleased Premises nor shall Sublessee use or permit the use of the Subleased Premises for any unlawful purpose.
16. Taxes. Sublessee shall pay when due and prior to delinquency all taxes, assessments, and other charges including possessory interest taxes levied or imposed by any governmental entity on the possessory interest of Sublessee in the Subleased Premises and the personal property, trade fixtures, appliances, and leased equipment placed by Sublessee in, on, or about the Subleased Premises during the Term of this Sublease. Sublessee recognizes that the inte rests of Sublessee in this Sublease shall be subject to the imposition of a possessory interest tax by the San Bernardino County Assessor, and Sublessee agrees to pay such tax amount as may be so levied with respect to the possessory interest of Sublessee in the Subleased Premises under this Sublease. Sublessee further acknowledges that pursuant to California Health and Safety Code Section 33673, the property shall be assessed in the same manner as "!
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24.07.30 SCLAA Standard Sublease Page 8 Exqudrum, LLC Bldgs 787 and 788 privately owned property and Sublessee shall pay taxes upon the assessed value of the entire property and not merely the assessed value of its leasehold interest.
17. Compliance with Air Force Lease.
a. Sublessee acknowledges that a copy of the applicable Air Force Lease has been provided by Sublessor and is attached hereto as Exhibit E.
b. Sublessee expressly acknowledges that the Sublessor has assumed certain duties and obligations to the Air Force under the Air Force Lease affecting the use and occupancy of the Subleased Premises. Sublessee further agrees that as of the Sublease Commencement Date, it shall observe and perform the duties and obligations of the Sublessor relating to the Subleased Premises in favor of the Air Force which arise under the Air Force Lease. These duties and obligations as assumed by Sublessee include but are not limited to the following which are presented below for purposes of reference and convenience:
i. Air Force Lease Condition 10 (Environmental Protection); and
ii. Air Force Lease Condition 17 (Development and Alterations); and
iii. Air Force Lease Condition 26 (Restrictions on Use of Leased Premises)
c. Any use, occupancy or activity of Sublessee on the Subleased Premises which may result in either the receipt by the Sublessor of a notice of default from the Air Force under the Air Force Leases or a notice of default or a notice of violation from either the Air Force or the Federal Aviation Administration (“FAA”), shall be deemed to be a default of Sublessee under this Sublease. The response of the Sublessor following receipt of any such notice of default or breach from either the Air Force under the Air Force Leases or from the Air Force and/or the FAA, shall not waive, stay or otherwise mitigate or remedy the default of Sublessee to the Sublessor under this Sublease. Sublessee shall have no right under this Sublease to participate in any proceeding between the Air Force, the FAA and the Sublessor for the resolution of an alleged default, breach or other dispute of the parties arising under the Air Force Lease except to the extent the Sublessee is alleged to have directly caused such breach or default.
d. Sublessee acknowledges that the Subleased Premises are subject to certain Declaration of Covenants, Conditi ons and Restrictions contained in the Air Force Lease (the “CC&Rs”). There shall also be included in any assessments the amount of assessments levied pursuant to the CC&Rs and applicable to the Subleased Premises, determined by the ratio that the rentable area of building on the Subleased Premises bears to the total net rentable area of building or buildings which include the Subleased Premises and for which a separate assessment is made pursuant to the CC&Rs.
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24.07.30 SCLAA Standard Sublease Page 9 Exqudrum, LLC Bldgs 787 and 788 e. Sublessee further expressly acknowledges that it is subject to and shall comply with all provisions and conditions of the applicable Air Force Lease attached as Exhibit E.
18. Insurance. Sublessee shall procure and maintain for the duration of the Sublease insurance against claims for injuries to persons or damages to property which may arise from or in connection with Sublessee’s operation and use of the Subleased Premises. The cost of such insurance shall be borne by the Sublessee. Coverage shall be at least as broad as:
a. Commercial General Liability Insurance. (“CGL”): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products completed operations, property damage, bodily injury and personal and advertising injury with limits no less than )LYH Million Dollars ($ ,000,000) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence. b. Property Insurance. Sublessee acknowledges that the insurance to be maintained by the Sublessor on the Subleased Premises will not insure against any of the Sublessee’s property or improvements made by the Sublessee. Accordingly, Sublessee shall maintain in full force and effect insurance against all risks of loss to any improvements or betterments, at full replacement cost with no coinsurance penalty provision.
c. Commercial Vehicle Liability Insurance. ISO Form Number CA 00 01 covering any auto (Code 1), or if Sublessee has no owned autos, hired (Code 8) and non-owned (Code 9), with limit no less than One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
d. Workers’ Compensation Insurance. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Sublessee has no employees, it may certify or warrant to the Sublessor that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code and the requirement for Workers’ Compensation coverage may be waived by the Risk Manager.
e. Sublessee may use Umbrella or Excess Policies to provide the liability limits as required in this Sublease. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, Self-Insured Retentions, indemnity and defense requirements. The Umbrella and Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the "!
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24.07.30 SCLAA Standard Sublease Page 10 Exqudrum, LLC Bldgs 787 and 788 underlying CGL insurance. No insurance maintained by the Additional Insureds, whether primary or excess, and which also apply to loss covered hereunder, shall be called upon to contribute to a loss until Sublessee’s primary and excess policies are exhausted.
f. If the Sublessee maintains broader coverage and/or higher limits than the minimum limits shown above, the Sublessor requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Sublessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Sublessor.
g. The insurance policies are to contain, or be endorsed to contain the following provisions:
i. Additional Named Insureds. Notwithstanding any
inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by the commercial general liability policy described in subsection (a) above shall bear an endorsement whereby it is provided that, the Southern California Logistics Airport Authority (“Sublessor”), the City of Victorville, the City Attorney, the Vict or Valley Economic Development Authority, the United States Air Force, and their respecti ve officers, officials, employees, servants, volunteers, agents, and independent contractors are named as Additional Insureds.
General Liability coverage can be provided in the form of an endorsement to the Sublessee’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 2038; and CG 20 37 if a later edition is used).
ii. Waiver of Subrogation Rights.
S u b lessee hereby grants to
the Southern California Logistics Airport Aut hority (“Sublessor”), the City of Victorville, the City Attorney, the Victor Valley Economic Development Authority, the United States Air Force, and their respective officers, of ficials, employees, servants, volunteers, agents, and independent contractors a waiver of any right to subrogation which any insurer of said Sublessee may acquire against the Southern California Logistics Airport Authority, the City of Victorville, the Cit y Attorney, the Victor Valley Economic Development Authority, and the United States Air Force. Sublessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Sublessor has received a waiver of subrogation endorsement from the insurer.
iii. Primary and Noncontributory. For any claims related to this Sublease, except for Workers’ Compensation claims, the Sublessee’s coverage shall be primary and noncontributory and at least as broad as ISO CG 20 01 04 13 with respects to the Southern California Logistics Airport Authority (“Sublessor”), the Victor Valley Economic Development Authority, the City of Victorville, the City Attorney and the United States Air Force and their officers, of ficials, employees, volunteers, contractors and subcontractors. Any insurance or self-insurance maintained by the Southern "!
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24.07.30 SCLAA Standard Sublease Page 11 Exqudrum, LLC Bldgs 787 and 788 California Logistics Airport Authority (“Sublessor”), the Victor Valley Economic Development Authority, the City of Victorville, the City Attorney and the United States Air Force and their officers , officials, employees, volunteers, contractors and subcontractors shall be in excess of the Sublessee’s insurance and shall not contribute with it.
19. Proof of Insurance Coverage.
a. Sublessee shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Sublease and furnish to Sublessor certificates of said insurance on or before the Sublease Commencement Date.
b. Each insurance policy required in the Sublease shall provide that coverage should not be canceled, except with written notice to the Sublessor.
c. Sublessee shall furnish the Sublessor with original certificates of insurance and amendatory endorsements, or copies of applicable policy language effecting coverage required by this Sublease and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates, endorsements and copies or Declarations and Endorsements are to be received and approved before the Commencement Date.
However, failure to obtain the required documents prior to the Commencement Date shall not waive the Sublessee’s obligation to provide them.
d. Self-insured. If Sublessee is self-insured, it shall provide certificates or evidence to Sublessor indicating that its insurance meets the levels and requirements as set forth herein above.
20. Personal Property at Risk of Sublessee. All personal property which Sublessee maintains at the Subleased Premises shall be at the risk of Sublessee only.
Except for the grossly negligent, reckless, or unlawful intentional acts of the Sublessor, its agents, employees, guests, or invitees, the Sublessor shall not be liable for any damage to any property of Sublessee or for any damage to Sublessee’s property in moving the same to or from the Subleased Premises.
21. Utilities and Other Services.
a. Payment for Utility Charges. Sublessee shall contract with and pay the applicable provider, whether the provider is the Sublessor or other party, all charges for water, gas, electricity, waste disposal, sewer or other utilities used or supplied upon or in connection with its use of the Subleased Premises and shall indemnify, defend and hold harmless the Sublessor against any liability on account thereof. Sublessee shall obtain separate metering devices for utility services, as applicable. Sublessee agrees to promptly reimburse the Sublessor upon receipt of invoice, its proportionate share of the actual cost of utility services from any common utility service, which may have been "!
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24.07.30 SCLAA Standard Sublease Page 12 Exqudrum, LLC Bldgs 787 and 788 paid by Sublessor. In addition to the amount of the utility bill that the Sublessor may have paid, Sublessee shall pay to Sublessor a three percent (3%) administrative fee for any pass-through billing processed. In no event shall the Sublessor be liable for any interruption or failure in the supply of any such utilities to the Subleased Premises.
b. Consent to Energy Use Data Disclosure. By executing this Sublease, Sublessee hereby consents to disclosure of its energy usage data as required for Sublessor to comply with the California Public Resources Code section 25402.10 and the implementing regulations of the California Energy Commission (20 Cal. Code Regs. Sections 1680 through 1685). Strictly for the purposes of ensuring such compliance, including any required public disclosure of aggregated energy use, Sublessee agrees to provide such energy usage data directly to Sublessor and/or authorizes Sublessor to obtain the required energy usage data directly from Sublessee’s utility providers upon request without the need to execute any further authorizations or consent forms. Sublesse e’s consent and authorization is deemed given upon the execution of this Sublease and shall continue to be in effect throughout the Term or any extension thereof.
22. Alterations, Improvements and Additions.
a. Sublessee shall not make any alterations, improvements or additions to the Subleased Premises (collectively hereinafter the “Improvements”) without the prior written consent of the Sublessor. The Sublessor shall own all alterations, improvements, and additions that are affixed to the Subleased Premises without compensation to Sublessee, subject to subsection (b) below. Any personal property belonging to Sublessee may be removed by Sublessee at any time prior to the expiration of the Term of this Sublease, or extension thereof.
b. Once completed, Improvements authorized in writing by Sublessor and/or any specific Tenant Improvements as may be provided for elsewhere in this Sublease, shall not be removed by Sublessee, unless so required by the Sublessor in its sole discretion. At the end of the Term of this Sublease (or upon any earlier termination as may be provided for herein) Sublessor shall have the option to either require Sublessee to remove the Improvements or Tenant Improvements or elect to have such Improvements or Tenant Improvements become the property of Sublessor.
In the case of removal of equipment or fixtures, Sublessee shall restore the area of the Subleased Premises from which such removals are made to its original condition.
Sublessee shall require the issuance of a Faithful Performance Bond and a Payment Bond for any work performed on the Subleased Premises as set forth below:
BOND REQUIREMENTS - A Faithful Performance Bond benefitting the Sublessor in the amount of one hundred twenty-five percent (125%) of the bid amount and a Payment Bond in the amount of one hundred twenty-five percent (125%) of the bid amount. Bonds must be issued by an admitted surety insurer in the State of California. When a contract for constructing Sublessor-authorized Improvements or Tenant Improvements is signed, the successful bidder shall "!
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24.07.30 SCLAA Standard Sublease Page 13 Exqudrum, LLC Bldgs 787 and 788 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 Subles sor, at its sole discretion, shall determine and may from time to time change the routes of surface ingress and egress to and from the Subleased Premises, but agrees to locate such routes as conveniently as may be done for Sublessee, having in mind the reasonable requirements of the Sublessor with respect to the operation of the SCLA. Notwithstanding the above, if the rerouting of such ingress and egress routes si gnificantly disrupts the normal operations of Sublessee such that it results in material financial detriment to Sublessee, then Sublessee shall have the right to terminate this Sublease.
24. Signs. Sublessee shall not post, install, erect or operate any sign, placard, poster or other device on any part of the Subleased Premises without the prior written permission of the Sublessor. Such si gns as may from time to time be permitted by the Sublessor shall be made, posted, maintained and removed, and repair any damage caused by removal, at Sublessee’s own cost and expense. Sublessor shall have the right to remove unauthorized signs at Sublessee’s expense. Sublessee shall be responsible for all costs associated with the purchase and installation of the required Building Standard Suite Signage in accordance with local codes.
25. Liens. Sublessee shall not suffer or permit any liens to stand against the Subleased Premises, or any part thereof, by reason of any work, labor, services or materials done for, or supplied to Sublessee or anyone holding the Subleased Premises or any part thereof through or under Sublessee. If any such lien shall at any time be filed against the Subleased Premises, Sublessee shall cause such lien to either be discharged of record sixty (60) days after the date that Sublessee receives notice of the filing. Notwithstanding the above, in any bona fide dispute between Sublessee and any third party concerning work done by the third party on or for the Subleased Premises, and as a result of the dispute the third party files a lien against the Subleased Premises, then, in lieu of obtaining the discharge of the lien within the sixty (60) day period, Sublessee, at its option, may either file suit against the third party, a part of the suit being to judicially negate or remove the lien or Sublessee may file an appropriate bond or other device allowed by law to remove the lien.
26. Inspection by the Sublessor. Sublessee shall permit the Sublessor, or its agents, representatives, or employees to enter the Subleased Premises at mutually agreeable, reasonable times for the purpose of inspecting the Subleased Premises to determine whether Sublessee is complying with the terms of this Sublease, for the purpose of doing other lawful acts that may be necessary to protect the Sublessor’s interest in the Subleased Premises, or for the purpose of performing the Sublessor’s duties under this Sublease. Except in the event of an emergency, the Sublessor shall contact Sublessee, no less than seventy-two (72) hours prior to the time that Sublessor desires to enter the Subleased Premises to arrange a mutually agreeable time for the inspection. In addition, except in the event of an emergency, Sublessor shall not enter the Subleased Premises unless accompanied by a representative of Sublessee. "!
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24.07.30 SCLAA Standard Sublease Page 14 Exqudrum, LLC Bldgs 787 and 788
27. Damage or Destruction of Subleased Premises. Unless occasioned by the negligence or intentionally unlawful act of Sublessee, if, during the Term of this Sublease or any renewal thereof, any portion of the Subleased Premises shall be damaged by fire or other catastrophic event, so as to render such portion of the Subleased Premises untenable, the obligations under this Sublease shall be immediately suspended while such portion of the Subleased Premises remains untenantable. In the event of such damage, the Sublessee shall give Sublessor notice of such untenantable conditions and the Subl essor shall elect in its sole discretion, whether to repair the Subleased Premises or to cancel this Sublease with respect thereto. It shall notify Sublessee in writing of its election within thirty (30) days after such damage. In the event Sublessor elec ts to repair the Subleased Premises, the work or repair shall begin promptly and shall be carried on without unnecessary delay.
In the event the Sublessor elects not to repair the Subleased Premises or portion thereof, the Sublease shall be deemed canceled as of the date of damage with respect to the applicable portion. Such damage shall not extend the sublease Term. In the event that insurance proceeds are received by Sublessee under the Property Insurance policy required to be carried by Sublessee, and the Sublease is terminated under this Section, the Sublessor shall be entitled to the portion of such proceeds attributable to the fixtures, improvements, and other property which would remain with the Subleased Premises, and Sublessee shall be entitled to the portion of such proceeds attributed to the fixtures and property on the Subleased Premises which would be removed by Sublessee. Notwithstanding anything in this paragraph to the contrary, if the Subleased Premises are rendered inadequate for Sublessee to conduct its normal operations in or upon the Subleased Premises (or such portion of the Subleased Premises which is still tenantable), and it is reasonably anticipated that the damages shall not be repaired or otherwise resolved, within sixty (60) days of the date the damage occurred, then Sublessee, at its sole and exclusive option, may immediately terminate this Sublease.
Additionally, irrespective of whether Sublessee remains in possession and occupancy of the Subleased Premises or elects to terminate this Sublease, rent payable under this Sublease shall abate during the period that the Subleased Premises are not totally useable by Sublessee. The abatement shall be pro rata in proportion to the ratio that the amount of space which Sublessee is actually able to occupy and from which it is able to conduct operations bears to the total Subleased Premises. Sublessee shall continue to make all other payments during this period, including taxes.
28. Assignment and Subletting.
a. Sublessee shall not cause, or permit, by operation of law or otherwise, any assignment, encumbrance or transfer of this Sublease or any estate or interest therein without the prior written consent of the Sublessor.
b. Sublessee shall not sublet the Subleased Premises or any part thereof without the prior written consent of the Sublessor. Any consent to a sublease or assignment shall be conditioned upon the proposed subtenant or assignee demonstrating to Sublessor its ability to perform and complete the obligations of Sublessee under this Sublease, a determined by objective standards of financial "!
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24.07.30 SCLAA Standard Sublease Page 15 Exqudrum, LLC Bldgs 787 and 788 capability, creditworthiness and experience required for such performance. In addition, if Sublessee’s proposed sublease or assignment arrangement will result in any increased rents or profits accruing to Sublease in excess of the Monthly Base Rent due to Sublessor under this Sublease, such consent shall further be conditioned upon Sublessor receiving fifty percent (50%) of the excess amount thereof. An assignment or subletting shall not relieve Sublessee of any of its obligations or liabilities under this Sublease: both Sublessee and any subsequent assignees will be deemed to be bound hereunder. The Sublessor’s consent to any such assignment, transfer or subletting shall not constitute consent to any further assignment, transfer or subletting.
c. The provisions of this Section 28 are not intended, nor should they be construed, to prevent Sublessee from allowing such independent contractors onto the Subleased Premises who are involved in Sublessee’s normal operations on the Subleased Premises (such as repair and maintenance personnel, janitorial personnel and similar personnel). Additionally, nothing in this Section 28 should be construed to prevent subcontractors of Sublessee from conducting their work on the Subleased Premises in conjunction with the normal operations conducted by Sublessee. To the extent that Sublessor must grant its consent for Sublessee’s subcontractors to enter onto the Subleased Premises for the above-described purposes, consent is hereby deemed to be granted.
29. Indemnification. To the fullest extent permitted by law, Sublessee hereby agrees to defend, indemnify and hold harmless Sublessor, the City of Victorville, the Victor Valley Economic Development Authority, the United States Air Force and each of their respective officers , officials, employees, dire ctors, agents, volunteers, independent contractors and assigns (collectively hereinafter the “Sublessor Indemnified Parties”), from and against any and all claims, actions, suits, proceedings, demands, losses, judgments and costs and expenses, including attorneys’ fees, arising from any legal action or proceeding initiated by any individual or entity arising out of, or resulting from the performance of this Sublease, except for any such claim arising out of the sole negligence or willful misconduct of the Sublessor Indemnified Parties.
30. The Sublessor’s Environmental Representations.
a. Except as otherwise provided in Section 14 hereof, Sublessee shall not be held responsible or deemed liable by the Sublessor for any hazardous environmental condition on the Subleased Premises, which existed prior to Sublessee’s occupancy of the Subleased Premises.
b. Except as provided in Section 14 hereof, the Sublessor represents that to the best of its actual knowledge, the Subleased Premises are free from any violations of law or regulations pertaining to occupational hazards and environmental conditions or Hazardous Materials as defined in Section 31 of this Sublease. In the event that any hazardous environmental conditions exist on the Subleased Premises as of the Sublease Commencement Date which result in a loss to Sublessee and which were caused by Sublessor, the Air Force or pa rties or entities within the control of, or "!
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24.07.30 SCLAA Standard Sublease Page 16 Exqudrum, LLC Bldgs 787 and 788 under contract with Sublessor, then the Sublessor shall indemnify, defend and hold Sublessee harmless from any costs, expenses, attorney fees or liabilities relating to any claims of such violations or conditions ex isting prior to Sublessee’s occupancy of the Subleased Premises. Sublessor shall indemnify Sublessee from hazardous environmental conditions or violations caused directly by the Sublessor, its employees, agents or licensees during or subsequent to the Term of this Sublease.
c. Sublessee shall be solely responsible for obtaining at its cost and expense; any environmental permits required for its operation under this Sublease independent of any existing permits.
31. Compliance with Environmental Laws.
a. The words and phrases set forth below shall have the following definitions:
i. “Hazardous Materials” means and includes any material that because of its quality, concentration or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment. Hazardous Materials include hazardous wastes, toxic substances, petrol eum products and motor fuels and similar substances and materials, including all 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, Sublessee shall not cause or permit any Hazardous Materials to be used, generated, manufactured, produced, stored, brought upon, or released, on, under or about the Subleased Premises, or transported to and from the Subleased Premises, by Sublessee, its agents, employees, contractors, or invitees in violation of any Environmental Laws. Sublessee shall indemnify, defend and hold harmless the Sublessor from any damage, cost, expense, liability, fine, or penalty resulting from any unauthorized discharge, emission, spill, storage, release, disposal or use of any Haza rdous Materials by Sublessee, its officers, agents, employees, contractors or invitees or any of them. This obligation of Sublessee shall survive the Expiration Date or earlier termination of this Sublease and shall apply whenever the Sublessor incurs cost or liability arising from any use or activity of Sublessee relating to Hazardous Materials during the Term hereof.
c. Without limiting the foregoing, if the presence of any Hazardous Materials on, under or about the Subleased Premises caused by Sublessee, its agents, employees, contractors, or invitees results in an unpermitted, unscheduled or unauthorized release or contamination of the Subleased Premises by such Hazardous "!
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24.07.30 SCLAA Standard Sublease Page 17 Exqudrum, LLC Bldgs 787 and 788 Materials at any time during the Term or any extension thereof, then Sublessee shall at its sole cost and expense promptly take all actions necessary to return the Subleased Premises to the condition existing prior to the unpermitted, unscheduled or unauthorized release of any such Hazardous Materials on the Subleased Premises.
d. Sublessee shall immediately notify the Sublessor of the occurrence of any of the following events: (i) receipt by Sublessee of any correspondence or communication from any governmental entity regarding the application of Environmental Laws to the Subleased Premises or the investigation or enforcement by such governmental entity of any such Environmental Laws in connection with Sublessee’s occupancy or use of the Subleased Premises, and (ii) unpermitted, unscheduled or unauthorized release of any Hazardous Materials on the Subleased Premises which may occur at any time during the Term (or any extension thereof) of the Sublease.
e. To the extent Sublessee may conduct any use or activity on the Subleased Premises which includes the use, handling, transport, or disposal of any Hazardous Materials in quantities which exceed the threshold amounts authorized under California Health and Safety Code Section 25507, Sublessee shall, at its sole cost and expense, prepare and submit to the City of Victorville (or designated local Certified Unified Program Agency “CUPA”) for approval, renewal or amendment, as applicable, a Business Plan for the Subleased Premises, as the term “Business Plan” is described under California Health and Safety Code Section 25505.
f. Notwithstanding any of the foregoing, in the event Sublessee, its agents, employees, contractors, or invitees, fails to use and maintain the Subleased Premises in accordance with the provisions of this Section 31, Sublessor and/or the City of Victorville (the “City”) shall have the right, but not the obligation, to enter the Subleased Premises and undertake remedial action as necessary in order to ensure that the Subleased Premises are in compliance with all Environmental Laws. In such event, Sublessee shall reimburse Sublessor and/or the City for all reasonable sums incurred by it for such remediation activities for which Sublessee is responsible pursuant to Sections 30 and 31. In such event Sublessor may, in its sole discretion, and not limiting its ability to recover through any other means provided in law or equity, determine to deduct all or a part of such sums due under this section from the Security Deposit.
32. Surrender of Subleased Premises. On the Expiration Date, Sublessee shall surrender and deliver possession of the Subleased Premises to the Sublessor clean and free of debris and in as good condition as it was on the Sublease Commencement Date, reasonable wear and tear excepted.
33. Compliance with Laws. Sublessee shall comply with all applicable Federal, State, and local laws, regulations and standards that are or may become applicable to Sublessee’s activities on the Subleased Premises (hereafter collectively “Laws”, including without limitation the SCLA and FAA Rules and Regulations).
Additionally, Sublessee shall comply with al l “Quantity/Distance” requirements as set "!
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24.07.30 SCLAA Standard Sublease Page 18 Exqudrum, LLC Bldgs 787 and 788 forth by the Bureau of Alcohol Tobacco and Firearms, and other regulatory entities, as appropriate. Sublessee agrees to abide by and conform to the SCLA Rules and Regulations, attached hereto as Exhibit C, and incorporated herein by this reference as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. The Sublessor shall have the right, from time to time, to modify, amend and enforce said rules and regulations. In addition, Sublessee agrees to abide by the Selected FAA Rules and Regulations, attached hereto as Exhibit F and incorporated herein by this reference, as such may be amended from time to time, and to cause its officers, agents, employees, suppliers, shippers, customers, and invitees to so abide and conform. Sublessor shall not be responsible to Sublessee for the noncompliance with said rules by other tenants, their officers, agents, employees, and invitees. The judgment of any court of competent jurisdiction, or the admission of Sublessee in a proceeding brought against Sublessee by any government entity, that Sublessee has violated any such Laws (except where such admission may be the basis for settlement) shall be conclusive as between the Sublessor and Sublessee and shall constitute grounds for declaration of default, breach, forfeiture, and termination of this Sublease by the Sublessor.
34. Defaults.
a. In the event Sublessee should default in the performance of any covenant or condition of this Sublease (excluding the payment of any monthly rent or other amounts due hereunder) and such default is not cured or removed within thirty (30) days after service of written notice upon Sublessee of such default in the performance of any covenants and conditions; then in such event, the Sublessor shall have the right and option to terminate this Sublease, to re-enter the Subleased Premises, to evict Sublessee and to remove Sublessee’s possessions, all without being deemed guilty of any trespass, and without prejudice to any claim for arrears of rent or breach of covenant. Notwithstanding the foregoing, if Sublessee, prior to the expiration of such thirty (30) day period for default diligently commences to cure such default but is unable to do so within the thirty (30) day period, then such period shall be extended for an additional thirty (30) days provided Sublessee continues to make a diligent effort to cure the default.
The occurrence of any of the following events shall also be a Default under this Sublease; (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 Sublessee, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Sublessee’s assets located at the Subleased Premises or of Sublessee’s interest in this Sublease, wher e possession is not restored to Sublessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all Sublessee’s assets located at the Subleased Premises or of Sublessee’s interest in this Sublease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this paragraph is "!
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24.07.30 SCLAA Standard Sublease Page 19 Exqudrum, LLC Bldgs 787 and 788 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 required to be paid to Sublessor by Sublessee when due shall also be deemed a default which Sublessee shall cure such default within ten (10) days after service of written notice.
c. Any statutory notice required as part of any eviction action or similar type of proceeding may be included with any notice of default given pursuant to this Section and the Sublessor need not declare a default and have such default remain uncured prior to delivery of such statutory notice.
35. Remedies of the Sublessor. In the event of any breach of the Sublease by Sublessee and the cure periods described in Section 34 hereof have expired, the Sublessor may at any time thereafter, with or without notice or demand and without limiting the Sublessor in the exercise of any other right or remedy which the Sublessor may have by reason of such breach, do any of the following:
a. terminate Sublessee’s right to possession of the Subleased Premises by any lawful means, in which case this Sublease shall terminate, and Sublessee shall surrender possession of the Subleased Premises to the Sublessor.
This may involve the Sublessor filing an unlawful detainer action and receiving a court order for Sublessee to vacate the premises. In any such event, the Sublessor shall be entitled to recover from Sublessee all damages incurred by the Sublessor by reason of Sublessee’s default, including, but not limited to the cost of repairing or restoring damages to the Subleased Premises caused by Sublessee, the cost or removal of Sublessee’s improvements, fixtures and other contents of the Subleased Premises, costs associated with past or future brokerage commissions and marketing expenses and the other costs payable by the Sublessor in connection with the recovery of possession of the Subleased Premises, including but not limited to reasonable attorneys’ fees and court costs, as well as: (a) the worth at the time of award by the court having jurisdiction thereof of the unpaid rent which had been earned at the time of termination; and (b) the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the Term after the time of such award may exceed the amount of such rental loss for the same period that Sublessee proves could be reasonably avoided; or
b. pursue any other remedy now or hereafter available to the Sublessor under the laws or judicial decisions of the State of California.
36. Default of Sublessor. In the event Sublessor should default in the performance of any covenant or condition of this Sublease and such default is not cured or removed within thirty (30) days after service of written notice of default upon Sublessor, then, Sublessee shall have the right and option to terminate this Sublease.
If Sublessor, prior to the expiration of such thirty (30) day period for a default, diligently commences to cure such default, but is unable to do so within the thirty (30) day period, "!
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24.07.30 SCLAA Standard Sublease Page 20 Exqudrum, LLC Bldgs 787 and 788 then such period shall be extended for an additional thirty (30) days provided Sublessor continues to make a diligent effort to cure the default. In the event of an uncured default Sublessee shall have all remedies available at law or in equity for any default or breach of this Sublease by the Sublessor.
37. Force Majeure-Unavoidable Delays. If the performance of any act required by this Sublease to be performed by either Party is prevented or delayed by reason of an act of God; strike; lockout; labo r disputes; inability to secure materials; unreasonably restrictive governmental laws or regulations; or any other cause except financial inability that is not the fault of the Party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment of rent by Sublessee as required by this Sublease or the performance of any act rendered difficult solely because of the financial condition of the Party required to perform the act.
38. Notices. Any and all notices or demands required or permitted to be given hereunder must be personally delivered or be mailed by registered or certified mail, return receipt requested, or sent by a nationally recognized overnight courier, addressed as follows:
To the Sublessor: Southern California Logistics Airport Authority 18374 Phantom West
Victorville, CA 92394
Attn: Airport Director
With copies to: Green de Bortnowsky, LLP
30077 Agoura Court, Suite 210
Agoura Hills, CA 91301
Attn: Andre de Bortnowsky, Esq.
To the Sublessee: Exquadrum, LLC
13313 Sabre Boulevard, Suite 1
Victorville, CA 92394
Attn: Eric Schmidt
or at such other address or addresses that either Party may hereafter designate in writing to the other. Any notice or demand which is mailed by registered or certified mail as provided above shall be deemed to be effective and given for all purposes three (3) business days following the time of deposit thereof in the United States mail.
39. Miscellaneous.
a. One or more waivers of any provision of this Sublease by the Sublessor shall not be construed as a waiver of a subsequent breach of the same provision and the Sublessor’s consent or approval shall not be deemed to waive or "!
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24.07.30 SCLAA Standard Sublease Page 21 Exqudrum, LLC Bldgs 787 and 788 render unnecessary the Sublessor’s consent or approval to or of any subsequent or similar act by Sublessee.
b. If either Party to this Sublease shall bring any action for any relief against the other, declaratory or otherwise, to enforce the terms hereof or to declare rights here under (collectively, an Action), the losing Party shall pay to the prevailing Party attorneys’ fees and costs incurred in bringing and prosecuting such Action and/or enforcing any judgment, order, ruling, or award (collectively, a Decision) granted therein, all of which shall be deemed to have accrued on the commencement of such Action and shall be paid whether such Action is prosec uted 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 includ e, 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 Sublessor has agreed to arbitrate any dispute which may arise hereunder.
c. This Sublease can be modified, supplemented, amended, or rescinded only by a writing expressly referring to this Sublease and signed by authorized representatives of the Parties.
d. If any provision of this Sublease or any application thereof shall be invalid or unenforceable, the remainder of this Sublease and any other application of such provision shall not be affected thereby. Unless otherwise expressly provided herein, any approval or consent of Sublessor required hereunder shall not be unreasonably withheld or delayed. This Sublease shall be binding upon and inure to the benefit of and be enforceable by the respective successors of the Parties hereto. The Section headings in this Sublease are for purposes of reference only and shall not limit or define the meaning hereof.
e. This Sublease contains the entire understanding and agreement of the Parties, supersedes all prior understandings and agreements, and cannot be changed orally. This Sublease shall be construed in accordance with the laws of the State of California. Time is of the essence.
f. Any conflict between the printed provisions, exhibits, or addenda of this Sublease and the typewritten or handwritten provisions, if any, shall be controlled by the typewritten or handwritten provisions provided such typewritten or handwritten provisions are initialed by both Parties.
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24.07.30 SCLAA Standard Sublease Page 22 Exqudrum, LLC Bldgs 787 and 788 g. This Sublease shall be of no force or effect unless executed by both Parties. Each person executing this Sublease for the respective Parties expressly represents and warrants that he or she has the authority to enter into leases on behalf of and bind the entity on whose behalf this Sublease is executed.
h. This Sublease may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of the same instrument.
[END OF THIS PAGE – SIGNATURES FOLLOW]
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24.07.30 SCLAA Standard Sublease Page 23 Exqudrum, LLC Bldgs 787 and 788 IN WITNESS WHEREOF, the Parties have executed this Sublease as of the day and year first written above.
SUBLESSEE:
EXQUADRUM, LLC
_____________________
Date
__________________________
Brendan Cooney
6HFUHWDU\
SUBLESSOR:
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY (“SCLAA”) __________________________ _____________________
Keith C. Metzler Date
Executive Director
ATTEST:
__________________________ _____________________
Jennifer Thompson Date
SCLAA Secretary
APPROVED AS TO STANDARD FORM:
__________________________ _________________
Andre de Bortnowsky Date
SCLAA Legal Counsel
RISK MANAGER
__________________________ _____________________
Sandra Bostick Date
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24.07.30 SCLAA Standard Sublease Page 24 Exqudrum, LLC Bldgs 787 and 788
EXHIBIT A
DESCRIPTION OF SUBLEASED PREMISES
Building 787 consisting of approximately Five Thousand Four Hundred Ninety-One (5,491) square feet of storage space and Yard Space consisting of approximately Thirty-One Thousand Five Hundred (31,500) square feet, located on the SCLA at 13745 Missile Road, Victorville, CA 92394, as depicted on Exhibit A-1. Vehicle parking space is located immediately north and south of Building 787 as depicted on Exhibit A-1; and Building 788 consisting of approximately Five Thousand Four Hundred Ninety-One (5,491) square feet of storage space and Yard Space consisting of approximately Thirty-One Thousand Five Hundred (31,500) square feet, located on the SCLA at 13745 Missile Road, Victorville, CA 92394, as depicted on Exhibit A-1. Vehicle parking space is located immediately north and south of Building 788 as depicted on Exhibit A-1; and Additional Yard Space consisting of ap proximately Sixty Thousand Six Hundred Seventy-Five (60,675) square feet as depicted on Exhibit A-1.
This Property combined in total, with the improvements thereon, represent the Subleased Premises.
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䣒䣧䣴䣫䣯䣧䣶䣧䣴䣴䢢䣔䣦
([KLELW$
䢭䢱䢯䢯䢢䢵䢵䢷䢩
- +
ͪ̒7ɰɮ̈ɲɭɭ,6/6
- +
ͪ̒7ɰɮ̈ɲɭɭ,6/6
Gate Entrance
Bldg 787
+/- 5,491 Sq. Ft.
Bldg 788
+/- 5
,491 Sq. Ft.
Vehicle Parking
Vehicle Parking
Vehicle Parking
Vehicle Parking
Vehicle
Parking
Vehicle
Parking
Vehicle
Parking
Vh il
Pk i
Vehicle
Parking
Additional Yard
Space
+/- 60,675 Sq. Ft.
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24.07.30 SCLAA Standard Sublease Page 25 Exqudrum, LLC Bldgs 787 and 788
EXHIBIT B
TENANT IMPROVEMENTS
Subject to the terms and conditions of the Sublease, Sublessor and Sublessee hereby affirm and acknowledge that the following items of work shall represent the Tenant Improvements contemplated for Building 787 and 788 within this Sublease. The Tenant Improvements must be approved in writing by Sublessor prior to any work being performed.
Location Description Notes
Throughout Bldg
787 & 788
Fix & replace roll-up doors. As needed,
where needed.
Throughout Bldg
787 & 788
Painting. As needed,
where needed.
Throughout Bldg
787 & 788
Patch or repair walls & flooring As needed,
where needed.
Throughout Bldg
787 & 788
Secure roll-up doors Throughout.
Throughout Bldg
787 & 788
Roof Maintenance As needed,
where needed
Throughout Bldg
787 & 788
Miscellaneous minor improvements As needed,
where needed
Yard Space Grading As needed,
where needed
Yard Space Install fencin g & Gate Throu ghout.
Other improvements as approved.
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24.07.30 SCLAA Standard Sublease Page 26 Exqudrum, LLC Bldgs 787 and 788
EXHIBIT C
SCLA RULES AND REGULATIONS
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Southern California
Logistics Airport
Rules and Regulations
Amended
April 17, 2007
Exhibit C
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.1 of 38
RULES AND REGULATIONS FOR THE USERS OF SOUTHERN CALIFORNIA LOGISTICS AIRPORT; ESTABLISHING FEES FOR THE VARIOUS USES; DEFINING TERMS; PROHIBITING OR LIMITING CERTAIN ACTIVITIES; FIXING PENALTIES FOR VIOLATIONS; AND PROVIDING FOR AMENDMENTS TO
THESE RULES AND REGULATIONS AS MAY BE NEEDED FROM TIME TO TIME SECTION 1. SHORT TITLE:
1.1 These Rules and Regulations shall be referred to as the Southern California Logistics Airport (SCLA) Rules and Regulations. It may be amended by a majority vote by the Board of the Southern California Logistics Airport Authority (SCLAA).
SECTION 2. APPLICABILITY:
2.1 These Rules and Regulations apply equally to every Airport User. The Airport Operating Manual or Specifications, as applicable, adopted in accordance with FAR Part 139, and the Airport Policies and Procedures Manual are hereby made by reference a part of these Rules and Regulations.
SECTION 3. RESPONSIBILITIES
:
3.1 Management: It shall be the responsibility of the Airport Director to fairly and impartially administer these Rules and Regulations.
3.2 Users: It shall be the responsibility of every Airport User, pilot or other, to become familiar with the SCLA Rules and Regulations and to obey those Rules and Regulations. Current copies of these Rules and Regulations will be maintained reflecting any amendments and will be posted at the SCLA Administrative Office and at Million Air. Additional copies will be provided by the SCLA Airport Director through the SCLA Administrative Office to any Airport User who requests such copy.
SECTION 4. DEFINITIONS:
For the purposes of these Rules and Regulations, the following definitions and meanings shall apply unless otherwise specified:
4.1 “Air Operations Area” or “AOA” means the area upon which aircraft are able to operate and includes the runways, taxiways, taxi lanes, apron area, and the vehicle and personnel gates that lead to these areas.
4.2 “Air Carrier” means any person who undertakes directly, by lease, or other arrangement, to engage in air transportation of persons or things. An “Air Carrier” operates in various categories, under authority or certification by the FAA and holds a current FAA certificate to transport air passengers or property for hire.
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.2 of 38
4.3 “Aircraft” means a device that is used, or is intended to be used, for flight in the air. “Aircraft” includes airplanes, helicopters and gliders, and lighter than air devices such as blimps or balloons, but does not include hang gliders.
4.4 “Aircraft Owner” shall mean a Person who holds title to an Aircraft.
4.5 “Aircraft Operator” shall mean the Person who is operating or controlling an Aircraft while said Aircraft is on Airport property.
4.6 “Aircraft Storage” shall have the same meaning as “Stored Aircraft”.
4.7 “Airport” means the SCLA, its buildings and facilities, all lands owned and or controlled by the SCLAA contiguous to the airport, including airspace above such land and the designated approaches thereto.
4.8 “Airport Director” means that person so appointed by the SCLAA or his designated representative.
4.9 “Airport Master Security Program” or “Airport Security Program” means the Security Program, which is the responsibility of an Airport Operator pursuant to TSA 1542.
4.10 “Airport Operations and Security Department” or means the Airport Operations and Security Department of the Southern California Logistics Airport.
4.11 “Airport Security Areas” or “Secure Areas” means Air Operations Areas, roadways, and common Air Carrier areas within terminal 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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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.3 of 38
4.14 “Airport Tenant Security Program” shall have the same meaning as set forth in TSA1542.113, entitled “Airport Tenant Security Programs.”
4.15 “Airport User” means any Person who uses the Southern California Logistics Airport, including but not limited to, Airport Tenants and subtenants, Fixed Base Operators, Air Carriers, Aircraft Owners, Aircraft Operators, Commercial Operators, passengers, and their employees, agents, representatives, agents, successors and assigns.
4.16 “Authorized Person” means an individual authorized with a Personnel Identification Badge issued by the Airport Security Coordinator, or his designated representative, to have unescorted access authority to Airport Security Areas.
4.17 “Air Traffic” means Aircraft operating in the air or on an Airport surface, exclusive of loading ramps or parking areas.
4.18 “Air Traffic Clearance” means an authorization issued by Air Traffic Control personnel for an Aircraft to proceed under specified traffic conditions within controlled airspace.
4.19 “Air Traffic Control” or “ATC” shall mean the Air Traffic Control of the Southern California Logistics Airport.
4.20 “Airworthy Condition” means a condition wherein an Aircraft can take flight under its own power. See definition of “Non-Airworthy Aircraft” below.
4.21 “Autorotation” means a rotorcraft flights condition in which the lifting rotor is driven entirely by action of the air when the rotorcraft (helicopter) is in motion.
4.22 “Balloon” means a lighter-than air aircraft, which is not engine-driven.
4.23 “Based Aircraft,” means Aircraft that are parked on the Airport for thirty (30) days or longer and are not part of an aircraft storage program.
4.24 “Ceiling” means the height above the earth's surface of the lowest layer of clouds or obscuring phenomena, that is reported as “broken,” “overcast,” or “obscuration,” and is not classified “thin” or “partial”.
4.25 “City” means the City of Victorville.
4.26 “Commercial Operator” means any Person who, for compensation or hire, engages in the carriage of persons, property, or mail in air commerce, or engages in other aerial activity such as flight instruction, aerial photography, fire fighting, agricultural aviation activities, or traffic surveillance. "!
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.4 of 38
4.27 “Criminal History Records Check (CHRC)” means a fi ngerprint-based criminal history records check as described in 49 CFR § 1542.
4.28 “Commercial Use” means use of SCLA for revenue-producing commercial activities.
4.29 “Dismantled Aircraft” means an Aircraft which has been disassembled to a point where it is not reasonable to assume that said Aircraft can be reassembled and placed in an Airworthy Condition.
4.30 “Driving Permit” means a permit issued by the Airport Director or his designee in order for an Individual to operate a Vehicle on the Airport.
4.31 “Escort” means an Authorized Person or Authorized Persons accompanying, monitoring, directing and controlling the actions of an Individual or Individuals who are not displaying Personnel Identification Badges, and/or who are not otherwise Authorized Persons, within Airport Security Areas. The Authorized Person(s) performing an Escort must be displaying valid Personnel Identification Badges, must be accompanying the Individual or Individuals for performance of direct job duties and must ensure that those Individuals who are being escorted remain within sight and sound at all times.
4.32 “Executive Director” means the Executive Director of the Southern California Logistics Airport Authority.
4.33 “FAA” means the Federal Aviation Administration of the United States Government or any federal agencies succeeding to its jurisdiction.
4.34 “Fixed Base Operator” means any Person who rents, leases, or owns facilities located on SCLA, who by virtue of his specific type of aviation or aviation related activity, requires the occupancy of a site with contiguous aircraft apron and direct access to the Aircraft Operation Area, and who engages in a business activity providing aviation sales or service, including but not limited to any of the following:
1. Selling and/or servicing new and used Aircraft and
component parts;
2. Aircraft maintenance and repairs;
3. Sales and/or repair of avionics;
4. Aviation training (including ground or flight instruction);
5. Aerial photography;
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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 a vehicle service road (“VSR”).
4.50 “Runway” means an improved surfaced area reserved exclusively for the landing and taking off of Aircraft.
4.51 “Scheduled Air Carrier” means any Person providing scheduled passenger or cargo service from the Airport in accordance with a published schedule and having at least one scheduled departure per day, or no less than five scheduled departures per week, and operating under authority of the Federal Aviation Administration and the Airport.
4.52 “Security Perimeter” means the portion of the Airport that is enclosed by fencing, walls or other barriers, and to which access is controlled through designated entry points.
4.53 “SCLA” means Southern California Logistics Airport.
4.54 “SCLAA” means Southern California Logistics Airport Authority. "!
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4.55 “Security Devices” means equipment installed or placed by or under the direction of the Southern California Logistics Airport Authority, or designated representative, to monitor or control 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 ar e 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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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.9 of 38
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 access device issued to him; or
2. Have possession of, or use for any purpose, a key, code or access device that was issued to him by a Person not
having authority to do so.
SECTION 17. ANIMALS:
17.1 No Person shall willfully and knowingly allow or permit any animal owned, possessed, or harbored by him to enter the Airport unless the animal is leashed or restricted in such manner as to be under control, or is in a shipping container, or is otherwise under physical restraint, nor shall any Person allow or permit such animal except “special assistance animals” (i.e. guide dog) to enter any Airport building without the approval of the Airport Director.
SECTION 18. ACCESS TO RUNWAYS AND TAXIWAYS:
18.1 No Person shall enter upon any Runway or Taxiway, or the movement area as defined by FAA, without the express consent of the Air Traffic Control Tower representative.
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SECTION 19. STARTING ENGINES:
19.1 No Person shall start any Aircraft engine at SCLA:
1. Unless a competent operator is at the controls;
2. Unless the Aircraft is equipped with adequate brakes fully applied or the wheels are securely blocked with blocks or chocks that can be removed safely (Skid equipped helicopters do not have brakes or chocks);
3. When the Aircraft is in such a position that the propeller slipstream or jet blast can cause damage to, or interfere with the operation of, other Aircraft, Vehicles, mobile equipment, hangars, shops, other buildings, or can cause injury to passengers, spectators, or other personnel; and
4. When the Aircraft is within 50 feet of any building without prior written consent.
SECTION 20. ENGINE RUN-UPS
:
20.1 No Person shall conduct an aircraft engine run-up beyond idle anywhere on the Airport other than in areas designated by the Airport Director (with the exception of helicopters, which routinely operate with engines beyond idle as part of normal operations).
20.2 Persons who want to conduct an engine run-up beyond idle shall first call ATC on the ground control frequency, 124.45 MHz, and request clearance to one of the two engine run-up areas. ATC will advise the Airport User, given the current wind direction, to proceed to one of two designated engine run-up areas.
20.3 ATC will make the final determination of which engine run-up area should be used.
20.4 The Person requesting the engine run-up beyond idle will conduct the engine run-up in the area designated by ATC and he shall exercise the necessary caution to ensure no damage is created by the engine run-up.
SECTION 21. TAXIING:
21.1 Only those personnel that have training and are qualified to taxi a particular type of Aircraft are permitted to taxi Aircraft at SCLA.
21.2 No Person shall taxi any Aircraft into, out of, or within any hangar or other building on or adjacent to the Airport.
21.3 No Person shall taxi any Aircraft 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 as such. Firearms on Airport property are pre-coordinated with ASCs when possible.
SECTION 24. TRAFFIC PATTERN:
24.1 Every Aircraft before landing and after takeoff shall be flown as directed by ATC.
SECTION 25. TAKE-OFFS AND LANDINGS:
25.1 No aeronautical activity shall be conducted at SCLA except in conformance with current Federal Aviation Regulations, State of California law and regulations, and these Rules and Regulations.
25.2 All initial takeoffs shall commence at the end of the Runway unless cleared by the ATC Tower.
25.3 Due to the complex mix of Aircraft that utilize SCLA, there is need to limit those type of aircraft and aerial activities that represent a potential hazard to normal flight operations. The following aircraft and aerial activities are restricted from operating at SCLA except in emergency situations or with prior approval of the Airport Director:
1. Hot Air Balloons;
2. Hang Gliders;
3. Parachutists;
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4. Radio Controlled Aircraft;
5. Ultra Light Aircraft;
6. Gliders; and
7. Motorized Lighter than Air Aircraft.
SECTION 26. AIRCRAFT FUELING AND DEFUELING:
26.1 In accordance with the regulations from the National Fire Protection Association (NFPA), Uniform Fire Code (UFC), and the Department of Transportation (DOT) the following rules and regulations must be observed while fueling aircraft:
26.2 All fuel servicing must be done outside of any building or hangar. (NFPA 407 3-10).
26.3 Aircraft shall be located a minimum of fifty (50) feet away from any building openings, doors, windows, etc.
26.4 During fuel handling, no passenger shall be permitted in or on the Aircraft unless a cabin attendant is stationed at or near the cabin door.
26.5 Fueling shall not be done while an on-board engine is operating (“hot fueling”) without the permission of the Airport Director and then, it shall only be permitted when representatives of the Fire Department are standing by.
Exception is allowed for A.P.U. operation on large aircraft. (NFPA 407 3-5.1)
26.6 Equipment other than Aircraft service equipment shall not be permitted within fifty (50) feet of an Aircraft during fueling or defueling. (NFPA 407 3-
5.1)
26.7 No open flames, smoking, battery chargers, or any material or device which is likely to cause a spark shall be in use within fifty (50) feet of an Aircraft or fueling truck during fueling or defueling operation. (NFPA 407 3-7, 3-8).
Exception is allowed for Ground Power Units.
26.8 All hoses, funnels and appurtenances used in fueling or defueling activities shall be equipped properly with grounding and bonding devices to prevent possible static ignition of volatile liquids or vapors. Such grounding and bonding devices shall be used during all fueling and defueling activities.
26.9 Refueling vehicles, fuel hoses and defueling equipment shall be maintained in a safe, sound, operational and non-leaking condition. "!
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26.10 Gravity (hand) fueling may not be accomplished with any container having a capacity greater than five (5) US gallons. (NFPA 407 3-2.3)
26.11 All portable fuel containers must be approved and marked so as to identify the product contained therein. (UFC)
26.12 Any fuel transported by privately owned vehicles, not specifically designed for the transport of flammable liquids and appropriately placarded, are limited to a maximum of 20 U.S. gallons in an approved and marked container. (DOT and UFC)
26.13 Portable fuel containers shall be kept in approved locations, at least fifty (50) feet from any building, and secured in a cabinet or locker marked “Flammable.” (UFC)
26.14 Every Person engaged in aircraft fuel handling shall exercise due care to prevent the overflow of tanks and spilling of fuel. Fuel spills are a fuel operator’s responsibility.
26.15 Where there has been a fuel spill or leak, no Person shall start the engine of any Aircraft in close proximity until the spill or leak has been cleaned up. In event such spills or leaks are over 10 ft. in any direction, or over 50 sq. ft. in area, or continues to flow, or are otherwise a hazard to persons or properties, the SCLA Fire Department & Haz-Mat shall be notified.
26.16 In addition, all fuel storage on the Airport shall be regulated by NFPA 407, the UFC, and be approved by the City of Victorville Fire Chief or his designee.
SECTION 27. VEHICLE OPERATIONS:
27.1 No Person shall travel on any portion of the Airport except upon the roads, walks, or places provided for the particular class of traffic, nor occupy the roads or walks in such manner as to hinder or obstruct their proper use.
27.2 Unless escorted by an Authorized Person who is authorized to drive on the AOA, no Person shall operate a Vehicle on the Airport 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 fi fty (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 I dentification Badge and Identification Badges with Driving Permit, upon completion of a SIDA Class and AOA Drivers Training and satisfactory score upon completion of a written test. Driving permits will be determined and issued in accordance with the applicant’s job related duties on the airport.
30.8 The Airport Security Coordinator will confirm or deny an applicant’s request for a badge based on verification of the CHRC and the
employment/education or unemployment history verification check, with five years verified by the employer, and the need of the applicant to access the AOA. If a Personnel Identification Badge is warranted, the Airport Security Coordinator, or his designated representative, will issue the Badge.
30.9 All Personnel Identification Badges issued by the Airport Operations and Security Department are the property of Southern California Logistics Airport Authority and MUST be returned upon expiration, separation of employment (for any reason), when the job function no longer requires Personnel Identification Badge, and upon demand of staff from the Southern California Logistics Airport. Any misuse or willful failure to return a Personnel Identification Badge is punishable by fine as dictated in the Airport Rules and Regulations. Personnel Identification Badges are non- transferable and must be used only by the Individual to whom they are issued.
30.10 No Individual shall enter the AOA of the Airport without a Personnel Identification Badge unless the Individual is accompanied by an Authorized Person with a Personnel Identification Badge who shall be fully responsible for the unbadged person being escorted. Fire department personnel responding to an emergency wearing uniforms or other identifying clothing, shall not be required to wear an identification badge.
30.11 No Authorized Person shall Escort any Individual who is not in the performance of job-related duties and who requests access to the Airport as a visitor without the consent and approval of the Airport Director. Person(s) denied access to the Airport by Airport security officers, must abide by the decision of the security officers under the direction of this rule. Visitor Escort must be conducted during normal business hours of the Airport "!
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.21 of 38
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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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.22 of 38
Department. All Vehicles that operate on the AOA will be issued a Radio Call Sign that must be utilized while on the AOA. Airport Standard Operating Procedure No. 200-01 describes the Radio Call Sign Procedure.
30.19 Perimeter Security
. The Airport is surrounded by an eight-foot (8’) high chain link fence. Barbed wire is placed atop this fence. There are numerous locked gates that access the Airport perimeter. Airport Tenants that are situated on the immediate perimeter of the AOA must employ secured personnel doors.
30.20 All Persons that operate on the Airport are charged with the responsibility of maintaining the security of the Airport. To this end, Persons who observe breeches in security are to call said incidents to the attention of the Airport Operations and Security Department.
30.21 A Person’s responsibility under Section 30.20 includes breeches to the procedural elements of the Airport Security Program, as well as the physical elements of the Airport Security Program (perimeter fence, vehicle gates, etc.).
30.22 The issuance under this Section of either (i) a Personnel Identification Badge, or (ii) a Personnel Identification Badge with Driving Permit to drive on the AOA, shall be conditioned upon the express consent of the Individual to whom the badge is issued, to a drug and alcohol screening in the event that such Individual is involved in an accident while on Airport property.
30.23 In the event that an Individual to whom a Personnel Identification Badge or Personnel Identification Badge with Driving Permit has been issued (a) tests positive for the use of a controlled substance not prescribed by a physician or has a blood alcohol content equal to or in excess of .08, or (b) refuses to consent to a drug and alcohol screening, then such Individual’s Personnel Identification Badge and/or Driving Permit shall be revoked by the Airport Director.
30.24 A Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will remain revoked until the Individual’s employer petitions the Airport Director in writing, to have said Individual’s Personnel Identification Badge and/or Driving Permit reinstated.
30.25 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations remains the prerogative of the Airport Director; however, reinstatement will not be unreasonably withheld.
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30.26 Reinstatement of a Personnel Identification Badge and/or Driving Permit which has been revoked under Section 30.23 of these Rules and Regulations will depend on, as a minimum, the employer’s verification of a negative drug test as part of a return to duty test. Any Individual who has verified positive drug test results on two drug tests will not be permitted to thereafter work or drive on the AOA, regardless of whether such Individual is accompanied by an Individual properly in possession of a Personnel Identification Badge and/or Permit.
SECTION 31. AIRPORT SECURITY AREAS:
31.1 Unauthorized Entry and Exit : No Person shall seek entry to or exit from Airport Security Areas except through designated entrances and exits. No Individual shall seek entry to or exit from Airport Security Areas over, under or through fencing, walls, window, air or other vents.
31.2 Only Authorized Persons, or those Individuals under Escort, shall have access by any means to Airport Security Areas.
31.3 A Person performing an Escort must, at all times, be in a position to actively monitor, direct and control the movements and actions of the accompanied Individual(s).
31.4 No Individual shall enter/exit or allow another Individual to enter/exit into Airport Security Areas except by using his Personnel Identification Badge.
No Individual shall follow another Individual into an Airport Security Area without first using his or her Personnel Identification Badge through any electronic access installed at the entry/exit point. This provision does not apply to an Individual under Escort
31.5 No Individual shall drive a Vehicle into Airport Security Areas unless the Individual has used his or her Personnel Identification Badge to open any electronic access installed at the entry point. No Individual shall allow other Vehicles to follow or tailgate in Airport Security Areas. This provision does not apply to Vehicles under Escort.
31.6 No Person shall tamper with or in any way hamper the effective operation of Security Devices.
31.7 Security of Access Points
: No Person shall leave open, propped or
unsecured any door, gate or access point leading to or allowing access to Airport Security areas. No Person shall hold, prop or cause a door, gate or access point to be open beyond the period of time allowed by a Security Device unless an Authorized Person attends the door. When an Authorized Person is attending a security door, he or she must be physically present at the door and must use his or her Personnel Identification Badge to activate additional time for the door to be open.
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SECTION 32. 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 be revoked for any of the following reasons:
1. Any act that seriously endangers property or Persons or indicates willful or reckless disregard for, and which has an immediate impact on the health, safety or welfare of the public or poses a serious threat to the security of the Airport.
2. A violation warranting Suspension where the Individual has had a previous suspension for the same or similar offense.
36.2 The Airport Director or Airport Security Coordinator shall issue a written notice of Revocation, which shall state the nature and date of violation, the date and Revocation shall begin, and the Individual’s right to a hearing pursuant to the provisions of Section 43 of these Rules and Regulations.
SECTION 37. LIABILITY INSURANCE:
37.1 Every Airport User shall carry insurance as required by their lease, sublease or permit to operate on Southern California Logistics Airport and as required "!
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.27 of 38
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 prov ides 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 DATE
44.1 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 each aircraft landing conducted by an airline or other commercial Air Carrier, operating under FAR Part 121 (airline), Part 129 (international airline), Part 135 (air taxi), or other similar regulation, regardless of the purpose of the landing.
A.5 Signatory Landing Fees: Signatory landing fees are assessed to an airline, or other large (over 75,000 lbs MGLW) commercial aircraft operator having a Signatory Operating Agreement with SCLA. To be eligible for Signatory Operating Agreement status, the operator must have one or more of the following:
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i. A lease with the Airport Authority of a ground site having at least 10,000 square feet or more that is used to accommodate the organization’s primary base of
business on Airport property.
ii. A lease with the Airport Authority, or an approved sublease, of a building, or part of a building totaling at least 4,000 square feet that is used as the
organization’s primary base of operations on the
Airport.
iii. Commercial Airlines operating under the military
Civilian Reserve Air Force (CRAF) program.
A.6 Non-Signatory Landing Fees: Non-signatory Landing Fees are assessed at a rate of 125% of the Signatory Landing Fee rate for large commercial operators (over 75,000 lbs MGLW) using the Airport who do not have Signatory Operating Agreement status with the Airport Authority, or have an agreement, but do not meet any of the Signatory eligibility criteria specified in paragraph 2 above. The Non-Signatory Landing Fee is intended to compensate the Airport Authority for the operator’s use of the Airport’s runway and taxiway areas as well as compensation for the privilege of being able to access the airport to conduct business.
A.7 Private Aircraft: The Airport Authority assesses a landing fee on each aircraft landing conducted by large private operators (over 75,000 lbs MGLW) operating under FAR Part 91, or other similar regulation, regardless of the purpose of the landing. Landing fees for private aircraft that are operated under FAR Part 91 and are based at the airport under conditions set forth in a long term agreement with the Authority will be charged landing fees as required by that agreement.
Aircraft Parking Fees:
A8. Signatory Aircraft Parking Fees: 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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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.34 of 38
A10. Private Aircraft: All private aircraft (both heavy and light) are required to pay aircraft parking fees. Aircraft that are based at the airport under conditions set forth in a long term agreement with the Authority will be charged parking fees as required by that agreement.
A.11 Aircraft Storage Fees: Aircraft storage fees are charged to aircraft that are stored on areas other than the main parking apron. Fees are payable under one of three different categories: under 50,000 lbs MGTW, narrow body aircraft, and wide body aircraft. Remote aircraft storage is occasioned by the many acres of closed runways and taxiways that make a suitable “hard stand” for aircraft parking. The availability of these areas is directly related to the longevity of these surfaces. As these surfaces fail to be usable for aircraft parking, they will be removed from the inventory of remote parking.
The Airport Authority makes no representation that it will maintain these surfaces and those businesses that store aircraft thereon do so at their own risk.
A.12 Fuel Flowage Fees: A substantial percentage of the fuel dispensed at SCLA is “pre-purchased” by large aircraft operators that enjoy discounts based on the large volumes of fuel these carriers purchase nationally. This pre- purchased fuel is stored in SCLA’s fuel farm to which SCLA assesses a storage fee . SCLA also assesses a flowage fee on each gallon of fuel delivered from the fuel farm to the aircraft.
A.13 Fuel flowage and fuel storage fees reflect the intent of the Airport Authority to generate reasonable revenues for the use of the airport’s fuel storage facility, while at the same time, encouraging aircraft operators to use SCLA as a base of operations.
A.14 All fuel sold at SCLA is subject to the described fuel flowage fees with following exceptions:
1. Non-Signatory Air Cargo Operators: Commercial Air Cargo Operators that are considered Non-Signatory as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft, shall pay flowage fees and storage fees.
2. Signatory Cargo Operators: Commercial Air Cargo Operators that meet the requirements of Signatory status as defined in Section A.1 above and pre-purchase fuel that is stored in the Airport’s fuel farm for use in their aircraft shall pay the appropriate storage fee.
3. Non-Commercial Signatory: Based operators (signatory) that are non-commercial (Part 91) will pay the appropriate storage fee and a modified flowage fee as provided in the operators lease agreement. "!
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.35 of 38
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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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.36 of 38
Notes:
Parking charges for Signatory Airlines do not apply for the first 24 hours, weekends, or holidays. Transient aircraft tie down fees apply to aircraft remaining overnight. Transient aircraft remaining parked longer than overnight Military aircraft are exempt from paying landing, parking and storage fees.
Definitions
:
Signatory –
Having a lease or sublease of a ground site or building space on the Airport in accordance with the Airport Authority’s Rates and Charges Policy; or, an airline having a contractual airline operating arrangement with an organization that has such a lease on airport property.
Non-signatory
–
Those operators who do not have an On-Airport Lease Agreement with the Airport Authority in accordance with the Rates & Charges Policy.
MGLW
– Maximum (certificated) Gross Landing Weight
MGTW – Maximum (certificated) Gross Takeoff Weight
Narrow body aircraft - i.e. B-727; B-737; DC-9; MD-80
Wide body aircraft - i.e. B747; B-777; DC-10; MD-11
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SOUTHERN CALIFORNIA LOGISTICS AIRPORT RULES AND REGULATIONS Pg.37 of 38
Attachment B
SCLA
SCHEDULE OF FINES
B.1 In most situations, a sanction or fine will be levied upon the employer of the Individual involved in the infraction. All sanctions or fines assessed will be added to the employer’s basic monthly rent and subjected to late fees and default provisions as set forth in an Airport Tenant’s land or facility sublease.
Fines assessed to Airport Users who do not have a land or facility Sublease at SCLA, shall be paid before the Airport 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, appropriate markings or two-way radio communication with ATCT. $100.00 Runway incursion. $500.00
Taxiway incursion. $300.00
For negligence resulting in, and failure to correct, FOD $100.00 B.4 For breeches in security such as:
1. Leaving a perimeter gate unattended. $100.00
2. Failure to accompany non-badged person on the AOA. $100.00
3. Sharing a security code or vehicle gate card. $300.00
4. Bypassing Security. $300.00
5. Sharing a Personnel Identification Badge. $300.00
6. Losing a Personnel Identification Badge. $100.00
B.5 For miscellaneous infractions of the Rules and Regulations such as:
1. Smoking in a non-approved area. $100.00
2. Parking or storing aircraft in non-approved areas. $100.00
3. Performing aircraft maintenance in unauthorized areas. $100.00
4. Knowingly allow an unsafe condition to exist. $300.00
5. Bringing an unauthorized vehicle on the airport. $100.00 B.6 A Federal Aviation Administration (FAA) or Transportation Security Administration (TSA) fine levied at the SCLA may be directly forwarded to a tenant if such tenant action is cause for the FAA/TSA penalty "!
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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. "!
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24.07.30 SCLAA Standard Sublease Page 27 Exqudrum, LLC Bldgs 787 and 788
EXHIBIT D
USE AND CONDITION OF SUBLEASED PREMISES
The use of the Subleased Premises shall be used for the storage, handling, manufacturing, assembly, mixing and controlled processing of small munitions, solid rocket motors, initiators, pyros and other defense, space industry and related components. All storage activities shall be conducted in strict compliance with all applicable regulations. Sublessee shall ensure that all munitions are properly secured.
The condition of the Subleased Premises shall be established resulting from a walk- through inspection attended by both Sublessor and Sublessee prior to the date Sublessee takes possession. The findings of this walk-through inspection shall be memorialized at the time of the walk-through via the SCLA Property Lease Checklist.
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24.07.30 SCLAA Standard Sublease Page 28 Exqudrum, LLC Bldgs 787 and 788
EXHIBIT E
AIR FORCE LEASE
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GEO-19-0001 PBT
DEPARTMENT OF THE AIR FORCE
LEASE FOR AIRFIELD PROPERTY
ON THE FORMER GEORGE AIR FORCE BASE, CALIFORNIA
TABLE OF CONTENTS
CONDITION 1 Term 4
CONDITION 2 Easements and Rights-of-Way 5
CONDITION 3 Condition of Lease Premises 6
CONDITION 4 Rental 7
CONDITION 5 Other Agreements 8
CONDITION 6 Use of Leased Premises 9
CONDITION 7 Default And Termination 10
CONDITION 8 Taxes 11
CONDITION 9 Surrender of Leased Premises 11
CONDITION 10 Environmental Protection 12
CONDITION 11 Maintenance of Leased Premises 21
CONDITION 12 Damage to Non-Leased Government Property 22 CONDITION 13 Access and Inspection 22
CONDITION 14 General Indemnification by Lessee 23
CONDITION 15 Risk of Loss and Insurance 24
CONDITION 16 Compliance with Applicable Laws 28
CONDITION 17 Development and Alternations 29
CONDITION 18 Utilities 32
CONDITION 19 Disputes 33
CONDITION 20 Notices 34
CONDITION 21 Assignments, Subleases and Licenses 35
CONDITION 22 Liens and Mortgages 37
CONDITION 23 Federal Aviation Administration Requirements 44 CONDITION 24 Special Provisions 54
CONDITION 25 General Provisions 54
CONDITION 26 Restrictions on Use of Leased Premises 58
CONDITION 27 Government Representatives and Their Successors 62 CONDITION 28 Amendments 63
CONDITION 29 Exhibits 63
CONDITION 30 Reporting To Congress 64
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GEO-19-0001 PBT
Former George AFB Page 1 of 65 Lease for Airfield Property
DEPARTMENT OF THE AIR FORCE
LEASE FOR AIRFIELD PROPERTY
ON THE FORMER GEORGE AIR FORCE BASE, CALIFORNIA
THIS LEASE ("Lease") is made between the Secretary of the Air Force, on behalf of the United States of America ("Government" or "Air Force"), and the Southern California Logistics Airport Authority (“SCLAA” or "Lessee"), a joint powers authority established under California Government Code § 6500 et seq., with a place of business at 18374 Phantom West, Victorville , California, 92394. The Government and the Lessee may be referred to jointly as the "Parties," and each separately may be referred to as a "Party."
RECITALS
A. Originally, the Victor Valley Economic Development Authority (“VVEDA”) desired to establish a public airport facility on a portion of land and facilities located at the former George Air Force Base (the "Base"), California, and applied to the Air Force for a public benefit conveyance (“PBC”) of such lands with improvements thereon, together with certain personal property, under Section 13(g) of the Surplus Property Act of 1944 ("SPA") as amended (50 U.S.C. app. § 1622(g)).
B. The Administrator of the Federal Aviation Administration ("FAA") determined, in accordance with Section 13(g)(l) of the SPA (50 U.S.C. app. § 1622(g)(1)), that the property identified in the VVEDA application for an Airport PBC ( the "Application") was essential, suitable, or desirable for a public airport, and reviewed and supported the VVEDA Application.
C. The Air Force determined that the property identified in the VVEDA Application was excess. The Air Force screened the property with federal agencies and eligible public bodies and declared the real property with improvements surplus to the federal Government. Pursuant to its authority under the Defense Authorization Amendments and Base Closure and "!
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GEO-19-0001 PBT
Former George AFB Page 2 of 65 Lease for Airfield Property Realignment Act, P.L. 100-526 ("BCRA"), the Air Force decided to dispose of a portion of the real property and certain personal property located at the former Base to VVEDA for a public airport, and accepted VVEDA’s Application.
D. Upon its compliance with the requirements of Section 120(h)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") of 1980, as amended (42 U.S.C. § 9620 et seq.), the Government intends to make final disposition of any remaining parcels identified in the Air Force approved Airport PBC Application, dated 29 April 1994, subject to certain reservations, restrictions, conditions and exceptions, by one or more quitclaim deed(s) to SCLAA for the purpose of developing a public airport facility. And SCLAA has agreed to accept such conveyance or conveyances in a timely manner.
E. Pending such final conveyance by deed or deeds of the real property identified in the VVEDA Application, VVEDA desired to enter into an agreement for immediate possession of such property to use, operate and maintain it, subject to and in accordance with all of the terms and conditions set out in its Application and the “Original Lease” (hereinafter defined).
F. The Secretary of the Air Force determined, in accordance with the military’s leasing authority contained in 10 U.S.C. § 2667, that immediate possession of the real property to be leased would facilitate state and local economic readjustment efforts and leasing such real property pending its final disposition would be advantageous to the Government and in the public interest.
G. The Secretary of the Air Force entered into the Original Lease, dated 29 April 1994, under the authority contained in 10 U.S.C. § 2667, and the general authority contained in 50 U.S.C. app. § 1622(g), to transfer a portion of the lands located at the former Base to establish a public airport.
H. VVEDA entered into the Original Lease under the authority of California Government Code § 6500 et seq., the provisions contained in the joint exercise of powers agreement creating VVEDA and Government Code § 25351.
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GEO-19-0001 PBT
Former George AFB Page 3 of 65 Lease for Airfield Property
I. Prior to the implementation of the Original Lease, VVEDA completed an environmental impact analysis in accordance with the California Environmental Quality Act ("CEQA"). VVEDA diligently completed all steps necessary to comply with CEQA. VVEDA issued the final Environmental Impact Report (EIR) in August of 1994, in satisfaction of CEQA compliance that was a prerequisite to implementation of the Original Lease.
J. In October of 1999, the VVEDA delegated certain authority to a new “public agency” that was duly formed under state law for the specific purpose of planning the closure and redevelopment of the former George AFB; this public agency was designated as the Southern California Logistics Airport Authority (“SCLAA”).
K. SCLAA possesses the necessary authority and is empowered to serve as the redeveloper of the former Base, thereafter SCLAA replaced VVEDA (the original Lessee) as a Party to the Original Lease; for all rights, obligations, any other mutual commitments, or any matters associated with the Original Lease. In all documentation associated with the redevelopment of the former Base, SCLAA was substituted for VVEDA.
L. The Original Lease was signed and made effective on 29 April 1994. The Original Lease was for a term of twenty-five (25) years, but granted the Lessee the right to renew for an additional 25 years if necessary. The Original Lease expires on 29 April 2019. Because parcels comprising the Leased Premises in the Original Lease have not been conveyed by deed, the Air Force needs to satisfy SCLAA’s request to renew this Lease.
M. To renew and extend the Original Lease by amendment was not practical since the Original Lease required updating and several important modifications. This new Lease retains the general structure of, and most of the provisions in, the Original Lease, but incorporates necessary updates and improves the environmental use restrictions to ensure that (1) human health and the environment is protected, and (2) redevelopment efforts do not interfere with any on-going cleanup actions and associated activities.
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GEO-19-0001 PBT
Former George AFB Page 4 of 65 Lease for Airfield Property
LEASED PREMISES
NOW, THEREFORE, the Secretary of the Air Force, by virtue of the authority conferred by law, for the consideration set out below, hereby leases to SCLAA the parcels and property consisting of certain lands with improvements thereon, together with certain personal property, located at the former Base, and more particularly depicted on Exhibit A-1 and described in Exhibit B-1 hereto (collectively, the "Airport" or "Leased Premises") for use as a public airport pending its final disposition pursuant to the BCRA.
Certain Government-owned personal property was included and listed with associated buildings/improvements in the Original Lease and identified in Exhibit A. Such personal property has now been consumed or is beyond its useful life and need not be accounted for by the Lessee. Those portions of Exhibit A and Exhibit C in the Original Lease related to personal property are no longer relevant in this new Lease.
THIS LEASE is granted subject to the following terms, conditions, and use restrictions:
CONDITION 1
TERM
1.1. This Lease shall be for a term of years, beginning upon 30 April 2019, (the "Term Beginning Date") and ending upon the conveyance and delivery of the deed (or deeds) for the Leased Premises to SCLAA or at midnight (12:00 p.m.) on the day which is five (5) years from the Term Beginning Date (the “Term”), whichever first occurs, unless sooner terminated in accordance with the provisions of this Lease. SCLAA shall have four (4) rights and options to renew and extend the term of this Lease. Each such right and option (each, a “Renewal Option”) applies to one (1) additional period of five (5) years (each, a “Renewal Term”). Each Renewal Term shall be on the same terms and conditions set forth in this Lease for the initial five (5) year Term, unless amended by mutual agreement in writing. The SCLAA shall be entitled to exercise "!
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GEO-19-0001 PBT
Former George AFB Page 5 of 65 Lease for Airfield Property each Renewal Option by written notice to the Government no later than three (3) months prior to the expiration of the initial Term or the then current Renewal Term, as the case may be. If the SCLAA’s notice is timely given, the term of this Lease shall be deemed to be extended for all purposes, as well as subject to all terms, conditions, and use restrictions stated in this Lease.
1.2. If portions of the Leased Premises have been conveyed by deed during the initial Term or the then current Renewal Term, as the case may be, then the Lease for the next Renewal Term shall be for those portions of the Leased Premises for which a deed has not been executed.
New Exhibits A-# and B-# shall be prepared at the time of renewal and will replace the then current Exhibits A-# and B-# for any such Renewal Term.
CONDITION 2
EASEMENTS AND RIGHTS-OF-WAY
2.1. This Lease is subject to all outstanding easements and rights-of-way for any purpose with respect to the Leased Premises (See Exhibit A-1). The holders of such easements and rights-of-way (collectively, the "Outgrants") shall have reasonable rights of ingress and egress over the Leased Premises, consistent with Lessee's right to quiet enjoyment of them under this Lease, in order to carry out the purpose of these Outgrants. These rights may also be exercised by workers engaged in the construction, installation, maintenance, operation, repair or replacement of facilities located on the Outgrants and by any federal, state or local official engaged in the official inspection thereof.
2.2. The Government and any successor or successors in interest in or to any property owned or controlled by the Government and not included in the Leased Premises shall have the right of access to and from such property or any portion thereof via the nearest public road or public way along the Leased Premises’ roadways open to public use, in common with other users of the Leased Premises and all necessary and convenient rights of access to such roadways from contiguous parcels upon such reasonable terms and conditions as the Lessee may impose.
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GEO-19-0001 PBT
Former George AFB Page 6 of 65 Lease for Airfield Property
CONDITION 3
CONDITION OF LEASED PREMISES
3.1. The Lessee has inspected, knows and accepts the condition and state of repair of the Leased Premises. It is understood and agreed that they are leased in an "as is, where is" condition without any representation or warranty by the Government concerning their condition and without obligation on the part of the Government to make any alterations, repairs or additions. The Government shall not be liable for any latent or patent defects in the Leased Premises. The Lessee acknowledges that the Government has made no representation or warranty concerning the condition and state of repair of the Leased Premises nor any agreement or promise to alter, improve, adapt, or repair them, which has not been fully set forth in this Lease.
3.2. Prior to the original Term Beginning Date of 29 April 1994, the following reports were prepared by the Government and attached as exhibits to the Original Lease. These reports are expressly incorporated by reference and made a part of this Lease:
a. The original Physical Condition Report ("PCR") for the Leased Premises signed by representatives of the Government and the Lessee was Exhibit C in the Original Lease. The written report documents the condition of the Leased Premises with respect to physical appearance and condition on the Term Beginning Date of the Original Lease, as determined from the joint inspection of the Leased Premises by the Parties.
b. The original Environmental Condition Report ("ECR") signed by representatives of the Government and the Lessee was Exhibit D in the Original Lease. The report sets forth the agreed condition of the Leased Premises with respect to environmental matters on the Term Beginning Date of the Original Lease, as determined from the joint environmental inspection. The Government will provide updated information concerning the environmental condition of the Leased Premises as it becomes available. Recent documents "!
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GEO-19-0001 PBT
Former George AFB Page 7 of 65 Lease for Airfield Property related to the Government’s environmental restoration program pursuant to CERCLA for the Leased Premises are also available from the Administrative Record (“AR”) document repository that is located at the following website address—
https://afcec.publicadmin-records.us.af.mil/search.aspx
CONDITION 4
RENTAL
4.1. The Lessee shall pay to the Government nominal cash rent in the amount of TEN DOLLARS ($10.00), the receipt of which is hereby acknowledged, for the Term and any Renewal Terms as an upfront, one-time payment of consideration for this Lease.
4.2. The Lessee shall pay to the Government on demand any sum that may have to be expended after the expiration or early termination of this Lease in restoring the Leased Premises to the condition required by Condition 9. Compensation in such case shall be made payable to the Treasurer of the United States and forwarded by the Lessee directly to:
AFCEC/CIB
2261 Hughes Ave, Suite 155
JBSA Lackland, TX 78236-9853
A copy of the payment instrument or letter of transmittal for the payment instrument will be provided to the Air Force BRAC Environmental Coordinator ("BEC").
4.3. The Lessee also shall provide protection and maintenance and assume sole operating responsibility for the Leased Premises in accordance with the provisions of this Lease, subject to Condition 4.4 below.
4.4. The Parties specifically understand and agree that:
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GEO-19-0001 PBT
Former George AFB Page 8 of 65 Lease for Airfield Property a. Except as otherwise provided in this Lease, the Government will not provide any services, functions, protection or maintenance to any portions of or any buildings, facilities or other improvements on the Leased Premises that are occupied or used by SCLAA or its sublessees, licensees or assignees under or pursuant to this Lease or any prior lease entered into between the Parties.
b. The Air Force no longer has use of the fire station in Building 724. The Lessee, at its sole expense, shall take responsibility for all firefighting, crash, and rescue services for the Leased Premises, including fire prevention and response, associated with Lessee’s airfield operations, as well as responsibility for structural fires on the Leased Premises. The Lessee will be responsible for and pay the fire station building maintenance and utility expenses. The Lessee will be solely responsible for and pay all of Lessee's operational and equipment maintenance costs.
CONDITION 5
OTHER AGREEMENTS
5.1. The Lessee submitted to the Government an Airport PBC Application on 3 July 1991. The FAA has reviewed and supported the Application and the Air Force executed acceptance of the Application (the "Acceptance") on 29 April 1994.
a. In the event of any inconsistency between the provisions of the Application or Acceptance and any provisions of this Lease, the provisions of the Application or Acceptance will control.
b. The Lessee must provide appropriate and adequate workspace in its facilities on the Leased Premises for the Air Force and its contractors at no cost or expense to the Air Force. Use of such space will be governed by a License Agreement or equivalent. From time to time, the Lessee may propose to relocate this workspace, even to its facilities outside of the Leased Premises; however, the Air Force must approve any proposed relocation in advance. "!
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GEO-19-0001 PBT
Former George AFB Page 9 of 65 Lease for Airfield Property CONDITION 6
USE OF LEASED PREMISES
6.1. The Leased Premises shall be used only for public airport purposes, for the use and benefit of the public, subject to and in accordance with all of the terms and conditions set out in the Application and Acceptance identified in Condition 5 above of this Lease. The term "airport purposes" as used in this Condition 6.1 shall have the same meaning as that ascribed to such term under 14 C.F.R. § 154.l (d) and shall include the use of property to produce sources of revenue from non-aviation business at the Airport and all uses in connection with airport purposes contemplated within the scope of the Final Environmental Impact Statement, Disposal and Reuse of George AFB, California (March 1992) ("FEIS"), the Record of Decision dated January 14, 1993, and Supplemental Record of Decision dated September 1993 (including attachments thereto) ("ROD").
6.2 The Lessee acknowledges that it has read the FEIS and the ROD and understands that the operations described in the FEIS and ROD are the only ones that have been assessed in compliance with the National Environmental Policy Act of 1969 ("NEPA'') and, subject to the provisions of Condition 6.1, are the only ones that constitute permitted uses under this Lease.
The Lessee agrees that, during the term of this Lease, any operation, type and quantity of chemicals used or emissions caused by employees, vehicle trips, aircraft activity, or any other parameters contained in the FEIS or ROD, which might have environmental impact or are regulated by federal or state environmental laws, shall not be exceeded without the prior written consent of the Government and such other approvals as required by law. The FEIS and ROD are on file at the Base. The Air Force On-Site Manager (“SM”) will make copies available on request.
6.3. The Lessee acknowledges that environmental conditions on portions of the Leased Premises require that certain restrictions be imposed on the use of such portions and agrees that the use of the Leased Premises is subject to the restrictions contained in Conditions 10, 17, and 26 below.
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GEO-19-0001 PBT
Former George AFB Page 10 of 65 Lease for Airfield Property ' .. ...
CONDITION 7
DEFAULT AND TERMINATION
7.1. With the exception of the provisions in Condition 23.2.n, the Lessee shall be in default if there is a failure by the Lessee to comply with any provision of this Lease, as to all or any portion of the Leased Premises, where such failure to comply continues for thirty (30) days after delivery of written notice thereof by the Government to the Lessee specifying with sufficient detail those facts and circumstances giving rise to the assertion by the Government that a default and breach of this Lease has occurred. However, if the time required to return to compliance exceeds the thirty (30) day period, the Lessee shall not be deemed to be in default if the Lessee, within such thirty (30) day period, shall commence the actions necessary to bring it into compliance with this Lease by the submittal of a compliance schedule reasonably acceptable to the Government and by diligently pursuing such actions to completion in accordance with such compliance schedule.
7.2. This Lease may be terminated, as to all or any portion of the Leased Premises, by the Director of the Installations Directorate, Air Force Civil Engineer Center (the “Director”) at any time, after the expiration of the cure period provided for in Condition 7.1, upon written notice of termination delivered by the Government to the Lessee in the event any such default and breach of this Lease by the Lessee has not been cured within the applicable period of time or cure has not commenced as set forth above. Such written notice of termination shall be effective as of a day to be specified therein which shall be at least thirty (30) days after receipt by the Lessee if all breaches have not been cured to the satisfaction of the Government prior to the effective date of such termination.
7.3. No default or breach shall be deemed to have occurred for any period of time during which the Parties are attempting to resolve a dispute, pursuant to the procedures provided for in Condition 19, in relation to the actions or inactions that are the subject of the alleged default or breach. If pursuant to dispute resolution, the default or breach is determined to have occurred, the Lessee's period for cure shall not begin until the day after the final decision on the "!
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GEO-19-0001 PBT
Former George AFB Page 11 of 65 Lease for Airfield Property dispute is issued.
CONDITION 8
TAXES
8.1. The Lessee shall pay to the proper authority, when and as the same become due and payable, all taxes, assessments, and similar charges which, at any time during the term of this Lease may be imposed upon the Lessee and any sublessee with respect to all or any portion of the Leased Premises. Title 10 U.S.C. § 2667(e) contains the consent of Congress to the taxation of the Lessee's and sublessee's interest in the Leased Premises, whether or not the Leased Premises are in an area of exclusive federal jurisdiction. Should Congress consent to taxation of the Government's interest in the property, this Lease will be renegotiated to place responsibility on the Lessee for the payment of such taxes.
8.2. The Lessee, or if applicable, any sublessee, shall have the right at any time delinquency occurs to contest or object to the amount or validity of any such tax, assessment and similar charges by appropriate legal proceedings. This right shall not be deemed or construed in any way as relieving, modifying or extending Lessee's or any sublessee's agreement to pay any such tax, assessment and similar charges unless Lessee or any sublessee shall have obtained a stay of such proceedings. The Government shall not be required to join in or assist the Lessee or any sublessee in any such proceedings.
CONDITION 9
SURRENDER OF LEASED PREMISES
9.1. The Lessee shall vacate and surrender the Leased Premises to the Government upon termination of this Lease pursuant to Condition 7 above. In the event the Lessee is obligated to vacate and surrender the Leased Premises in accordance with the preceding sentence, the Lessee shall, if required by the Government, vacate the Leased Premises, remove "!
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GEO-19-0001 PBT
Former George AFB Page 12 of 65 Lease for Airfield Property its property from the Leased Premises and restore the land, improvements, facilities, and equipment included herein, to as good condition on such date of termination as when received ordinary wear and tear excepted, subject to Conditions 15 and 17. If the Lessee shall fail or neglect to remove its property and to restore the land, improvements, facilities and equipment included herein, then, at the option of the Government, said property shall either become the property of the Government without compensation therefor, or the Government may cause it to be removed and the Leased Premises to be restored, subject to the exceptions set forth above, at the expense of the Lessee, and no claim for damages against the Government or its officers, employees, or agents shall be created by or made on account of such removal and restoration.
CONDITION 10
ENVIRONMENTAL PROTECTION
10.1. The Lessee and any sublessee or licensee shall at all times promptly observe and comply, at its sole cost and expense, with all applicable federal, state, interstate, and local environmental laws and regulations, and all other federal, state, interstate, and local laws, regulations, and standards that may become applicable to Lessee's activities on the Leased Premises.
10.2. The Lessee and any sublessee or licensee shall be solely responsible for obtaining at its cost and expense any environmental permits required for its operations under this Lease, independent of any existing Base permits.
10.3. The Lessee and any sublessee or licensee shall, to the extent permitted under state law, save, indemnify and hold harmless the Government from any damage, costs, expenses, liabilities, fines, or penalties resulting from discharges, emissions, spills, storage, disposal, or any other acts or omissions by the Lessee, its officers, agents, employees, contractors or sublessees, or the invitees of any of them, giving rise to Government liability, civil or criminal, or responsibility under federal, state, interstate, or local environmental law. This Condition 10.3 shall survive the expiration or termination of this Lease, and the Lessee's and any sublessee's or "!
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Former George AFB Page 13 of 65 Lease for Airfield Property licensee's obligations hereunder shall apply whenever the Government incurs costs or liabilities for the Lessee's or any sublessee's or licensee's actions giving rise to liability under this Condition 10.3.
a. To implement this condition, the Lessee shall notify the SM of (a) any discharges, emissions, spills, disposals (each, a “Release”) of hazardous substances/wastes or fuels/petroleum products occurring on the Leased Premises that (b) require a response or corrective action, as soon after the occurrence as possible once the Lessee becomes aware of such a Release.
b. The Lessee will promptly furnish (a) copies of any documentation, (b) associated records, and/or (c) other information about the Release as the SM may require.
Copies of any required reports concerning the Release and the response or corrective action that are forwarded to federal, state, or local authorities shall be provided to the SM at the same time they are provided to the regulatory authorities.
10.4. The Governments rights under this Lease specifically include the right for Government officials to inspect upon reasonable notice the Leased Premises for compliance with environmental, safety, and occupational health laws and regulations, whether or not the Government is responsible for enforcing them. Such inspections are without prejudice to the right of duly constituted enforcement officials to make such inspections. The Government normally will give the Lessee or sublessee twenty-four (24) hours prior notice of its intention to enter the Leased Premises unless it determines the entry is required for safety, environmental, operations, or security purposes. The Lessee shall have no claim on account of any entries against the United States or any officer, agent, employee, or contractor thereof.
10.5. Except as provided in Condition 10.6 below, the Government is not responsible for any removal or containment of asbestos. If the Lessee and any sublessee or licensee intends to make any improvements or repairs that require the removal of asbestos, an appropriate asbestos disposal plan must be incorporated in the plans and specifications and submitted to the SM. The asbestos disposal plan will identify the proposed disposal site for the asbestos, or in the event the site has not been identified, will provide for disposal at a licensed facility authorized to "!
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Former George AFB Page 14 of 65 Lease for Airfield Property receive it.
10.6. The Government was responsible for the removal or containment of damaged or deteriorated asbestos or asbestos containing material (collectively, "ACM") existing in the Leased Premises prior to the Term Beginning Date of the Original Lease (i.e., 29 April 1994) as identified in the ECR attached as Exhibit D to the Original Lease. The Government abated all such existing damaged or deteriorated ACM, known at the time, as provided in this Condition
10.6 and Condition 10.7 below. The foregoing Government obligation did not apply to ACM that was not damaged or deteriorated to the extent that it creates a potential source of airborne fibers at the time the Lessee took possession of the Leased Premises or that became damaged or deteriorated by the Lessee's or sublessee's activities. During the period of this Lease, ACM that becomes damaged or deteriorated through the passage of time, or as a consequence of the Lessee's or any sublessee's activities under this Lease, including but not limited to any emergency, will be abated by the Lessee at its sole cost and expense. Notwithstanding Condition
10.5 above, in an emergency, the Lessee will notify the Government as soon as practicable of its emergency ACM responses. The Lessee shall be responsible for monitoring the condition of existing ACM on the Leased Premises for deterioration or damage and accomplishing repairs pursuant to the applicable Conditions in this Lease.
10.7. Notwithstanding any other provision of this Lease, the Lessee and its sublessees and licensees do not assume any liability or responsibility for environmental impacts and damage caused by the acts or omissions of the Government, including any agency or agent thereof, of toxic substances, or hazardous waste, hazardous substances, or hazardous materials, or oil, or petroleum products, as such terms are defined by applicable law, on any portion of the Base, prior to 29 April 1994. The Lessee and its sublessees and licensees have no obligation under this Lease to undertake the defense of any claim or action, whether in existence now or brought in the future, solely arising out of the use of or release from, any portion of the Base, including any portion of or any building, facility or other improvement on the Leased Premises, of any toxic substances, or hazardous wastes, hazardous substances, or hazardous materials prior to earlier of the first day of Lessee's occupancy or use of each such portion of such building, facility or other improvement on the Leased Premises under any instrument entered into between the Parties or "!
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Former George AFB Page 15 of 65 Lease for Airfield Property 29 April 1994. Appendix C, Tables C-1 and C-2 of the Basewide Environmental Baseline Survey ("EBS"), dated December 1993, which was attached to Exhibit F in the Original Lease and is being provided electronically with this Lease, identifies the locations where hazardous substances were stored, released, or disposed of. "Occupancy" or "use" shall mean any activity or presence (including preparation and construction) in or upon such portion of, or such building, facility or other improvement on the Leased Premises. This Condition 10.7 shall survive the expiration or termination of this Lease and does not relieve the Lessee and its sublessees and licensees of any obligation or liability they might have or acquire with regard to third parties or regulatory authorities by operation of law.
10.8. The Government acknowledges that George AFB has been identified as a National Priorities List site under the CERCLA. The Lessee acknowledges that the Government has provided it with a copy of the George AFB Federal Facility Agreement (“FFA”) entered into by Region 9 of the United States Environmental Protection Agency ("EPA"), the State of California, and the Air Force on October 11, 1990, and will provide the Lessee with a copy of any amendments thereto. The Lessee agrees that should any conflict arise between the terms of FFA, as it presently exists or may be amended and the provisions of this Lease, the terms of the FFA will take precedence (see Condition 3.3). The Lessee further agrees that notwithstanding any other provision of this Lease, the Government assumes no liability to the Lessee or its sublessees or licensees should implementation of the FFA interfere with the Lessee's or any sublessee's or licensee's use of the Leased Premises. The Government agrees to minimize, to the extent possible, any disruption to the Lessee or its sublessees or licensees use of the Leased Premises and where practicable, will consult with the Lessee as to activities that may affect Lessee's operation. The Lessee however, shall have no claim on account of any such interference against the United States or any officer, agent, employee or contractor thereof.
10.9. The Air Force, the EPA and representatives from relevant California environmental regulatory agencies ("State Regulators") and their officers, agents, employees, contractors, and subcontractors have the right, upon reasonable notice to the Lessee and any sublessee or licensee, to enter upon the Leased Premises for the purposes enumerated in this subparagraph and for such other purposes consistent with any provision of the FFA:
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Former George AFB Page 16 of 65 Lease for Airfield Property
a. To conduct investigations and surveys, including, where necessary, drilling, testpitting, testing soil borings and other activities related to the former George AFB Installation Restoration Program ("George AFB IRP") or the FFA;
b. To inspect field activities of the Air Force and its contractors and subcontractors in implementing the former George AFB IRP or the FFA;
c. To conduct any test or survey required by the EPA or State Regulators relating to the implementation of the FFA or environmental conditions at the Leased Premises or to verify any data submitted to the EPA or State Regulators by the Air Force relating to such conditions;
d. To construct, operate, maintain or undertake any other response or remedial action as required or necessary under the former George AFB IRP or the FFA, including, but not limited to monitoring wells, pumping wells and treatment facilities.
10.10. The Lessee agrees to comply with the provisions of any health or safety plan in effect under the IRP or the FFA during the course of any of the above-described response or remedial actions. Any inspection, survey, investigation, or other response or remedial action will, to the extent practicable, be coordinated with representatives designated by the Lessee and any sublessee or licensee. The Lessee and any sublessees or licensees shall have no claim as a result of such entries against the United States or any officer, agent, employee, contractor, or subcontractor thereof.
10.11. The Lessee further agrees that in the event of any assignment, sublease or license of all or any portion of the Leased Premises, pursuant to Condition 21 of this Lease, it shall provide to the SM and BEC a copy of the agreement of assignment, sublease or license of the Leased Premises (as the case may be) within fourteen (14) days after the effective date of such transaction. The Lessee may delete the financial terms and any other proprietary information from the copy of any agreement of assignment, sublease or license furnished pursuant to this "!
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Former George AFB Page 17 of 65 Lease for Airfield Property Condition.
10.12. The Lessee shall strictly comply with the hazardous waste permit requirements under the Resource Conservation and Recovery Act ("RCRA"), and any applicable California equivalent. The Lessee must provide at its own expense such hazardous waste facilities, complying with all laws and regulations, as it may need for storage. Government hazardous waste storage facilities, whether formerly or presently in use, will not be available to the Lessee.
10.13. Government accumulation points for hazardous and other wastes will not be available to the Lessee. Neither will the Lessee or sublessee permit its hazardous wastes to be commingled with hazardous waste of the Air Force.
10.14. The Lessee shall have a completed and approved plan for responding to hazardous waste, fuel, and other chemical spills prior to commencement of operations on the Leased Premises. Such plan shall comply with all applicable requirements, will be representative of the activities to be conducted by the Lessee on the Leased Premises and shall be updated from time to time as operations increase or are altered or as may be required to comply with changes in site conditions or applicable requirements and shall be approved by all agencies having regulatory jurisdiction over such plan. Such plan shall be independent of any similar plan of the Air Force as may then be in effect for the Base. The Lessee shall not rely on use of Air Force personnel or equipment in the execution of its plan. The Lessee shall file a copy of the approved plan and approved amendments thereto with the SM within fifteen (15) days of approval.
Notwithstanding the foregoing, should the Government provide any personnel or equipment, whether for initial fire response and/or spill containment, on request of the Lessee, or because the Lessee was not, in the opinion of the SM, adequately addressing the emergency situation, the Lessee agrees to reimburse the Government for its costs in accordance with all applicable laws and regulations.
10.15. The Lessee further agrees that it shall provide, or shall require its sublessee or licensee to provide, the Air Force, the EPA and State Regulators with prior written notice accompanied by a detailed written description of all proposals for any alterations (as defined in "!
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Former George AFB Page 18 of 65 Lease for Airfield Property Condition 17.1) which may impede or impair any activities under the FFA or are to be undertaken in certain areas of the Airport identified as "Areas of Special Notice" in Exhibit G-2 hereto. These Areas of Special Notice consist of IRP sites. The notice and accompanying written description of proposals shall be provided to the Air Force, EPA and State Regulators sixty (60) days in advance of the commencement of any such alterations. In addition, alterations shall not commence until Lessee has complied with the provisions of Condition 17.3. The detailed written description of said proposals shall include a description of the effect such planned work may have with respect to site soil and groundwater conditions and the cleanup efforts contemplated under the FFA. Notwithstanding the preceding three sentences, the Lessee or its sublessees or licensees shall be under no obligation to provide advance written notice of any alterations that will be undertaken (i) totally within any structure located on the Leased Premises, or (ii) in portions of the Leased Premises that are in areas outside the Areas of Special Notice, provided that such work will not impede or impair any activities under the FFA.
However, any work below the floor of any such structure within Areas of Special Notice that will involve excavation in and/or disturbance of concrete flooring, soil and/or groundwater or will impede or impair any activities under the FFA will be subject to the sixty (60) day notice requirement imposed by this Condition.
10.16. Notwithstanding any other provision of this Lease, the Lessee agrees it shall coordinate all alterations and any other work, if required pursuant to the notice requirement imposed by Condition 10.15, with the Air Force, the EPA and State Regulators, in accordance with the FFA. All alterations and other work shall be performed in a manner that does not impede or impair any activities under the FFA or exacerbate then existing conditions.
10.17. The Lessee agrees that the Government assumes no liability to the Lessee or its sublessees should hazardous waste cleanup requirements, whether imposed by law, regulatory agencies, the Air Force or the Department of Defense, interfere with the Lessee's use of the Leased Premises. The Lessee shall have no claim on account of any such interference against the Government or any officer, agent, employee or contractor thereof.
10.18. The Lessee and any sublessees must comply with all federal, state, and local laws, "!
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Former George AFB Page 19 of 65 Lease for Airfield Property regulations, and other requirements relating to occupational safety and health, the handling and storage of hazardous materials, and the proper generation, handling, accumulation, treatment, storage, disposal, and transportation of hazardous wastes. The Lessee or its sublessees will not accomplish any treatment, storage, or disposal of hazardous waste unless the Lessee is in possession of a valid permit issued to it under RCRA, as amended. The Lessee shall not treat, store, or dispose of any hazardous waste under, pursuant to, or in reliance upon any permit issued to the Air Force. The Lessee shall be liable for any violations of these requirements by its sublessees. The Lessee shall be liable for the cost of proper disposal of any hazardous waste generated by its sublessees in the event of failure by the sublessees to properly dispose of such wastes. Neither the Lessee nor any of its sublessees shall use or make use of any Air Force hazardous waste treatment or storage facilities, accumulation points, or other facilities relating to the proper generation, handling, disposal, and transportation of hazardous wastes.
10.19. The Lessee and any sublessees must maintain and make available to the Air Force all records, inspection logs, and manifests that track the generation, handling, storage, treatment and disposal of hazardous waste, as well as all other records required by applicable laws and requirements. The Air Force reserves the right to inspect the facility, Lessee, and sublessee records for compliance with federal, state, interstate, and local laws, regulations, and other requirements relating to the generation, handling, storage, treatment and disposal of hazardous waste, as well as to the discharge or release of hazardous substances. Violations will be reported by the Air Force to appropriate regulatory agencies, as required by applicable law. The Lessee and its sublessees will be liable for the payment of any fines and penalties that may accrue as a result of the actions of Lessee or its sublessees.
10.20. The Lessee shall comply with all requirements of the Federal Water Pollution Control Act, the National Pollutant Discharge Elimination System ("NPDES"), and any applicable State or local requirements. If the Lessee discharges waste water to a publicly owned treatment works, the Lessee or its sublessees must submit an application for its discharge (pretreatment permit application) to the City of Victorville, prior to commencing such discharges. The Lessee or sublessees will be responsible for meeting all applicable waste water discharge permit standards. The Lessee will not discharge waste water under the authority of "!
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Former George AFB Page 20 of 65 Lease for Airfield Property any NPDES Permit, Pretreatment Permit or any other such Permit issued to the Base. The Lessee or its sublessees shall make no use of any septic tank installed on Base; further, the Lessee or its sublessees shall not install any septic tank without the express written permission of the Air Force.
10.21. Former George AFB air emissions offsets will not be made available to the Lessee. The Lessee shall be responsible for obtaining all permits and any air pollution credits that may be required to offset emissions resulting from its activities under this Lease.
10.22. The Lessee shall not conduct or permit its sublessees to conduct any subsurface excavation, digging, drilling or other disturbance of the surface without the prior written approval of the Government. Compliance with, and clearance through, the “Encroachment Permitting System” is required prior to any excavation or soil disturbing operations, activities, or projects on the Leased Premises, except for the limited purpose of maintaining existing landscaping. This Encroachment Permitting System provides the process to obtain Air Force approval for Alterations that involve excavation or disturbance of the surface, and therefore supplements Condition 17.3.
10.23. The Lessee must notify the SM of Lessee's intent to possess, store, or use any licensed or licensable source or by-product materials, as those terms are defined under the Atomic Energy Act and its implementing regulations; of Lessee's intent to possess, use, or store radium; and of Lessee's intent to possess or use any equipment producing ionizing radiation and subject to specific licensing requirements or other individual regulation, at least sixty (60) days prior to the entry of such materials or equipment upon the Base. Upon notification, the SM may impose such requirements, including prohibition of possession, use, or storage, as deemed necessary to adequately protect health and the human environment. Thereafter, the Lessee must notify the SM of the presence of all licensed or licensable source or by-product materials, of the presence of all radium, and of the presence of all equipment producing ionizing radiation and subject to specific licensing requirements or other individual regulation: provided, however, that the Lessee need not make either of the above notifications to the SM with respect to source and by-product material which is exempt from regulation under the Atomic Energy Act. Lessee shall "!
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Former George AFB Page 21 of 65 Lease for Airfield Property not, under any circumstances, use, own, possess or allow the presence of special nuclear material on the Leased Premises.
10.24. The Lessee acknowledges that lead-based paint may be present in and on facilities and equipment within the leased area. The Air Force may conduct surveys to determine the existence and extent of any possible lead-based paint. The Lessee will be notified if the Air Force determines there is lead-based paint in or on the leased facilities or equipment. Prior to beginning any alteration or modification, the Lessee or any sublessee must test any paint that would be disturbed unless a conclusive determination has been made that lead-based paint is not present. If the paint is lead-based, the Lessee or any sublessee is required to handle it in accordance with all applicable federal, state, and local laws and regulations at its own expense.
The Lessee is required to ensure that any lead-based paint is maintained in good condition.
10.25 Notwithstanding any provisions in this Condition or Conditions 17 or 26 of this Lease, the Air Force’s obligations are limited to response or corrective actions found to be necessary to protect human health and the environment from toxic substances, hazardous materials/wastes, hazardous substances, pollutants or contaminants, oil or petroleum products, existing on, beneath or in the vicinity of Leased Premises on 29 April 1994. The obligation of the Air Force does not extend to actions required as a result of an act or omission of the Lessee (its sublessees or licensees), which act or omission (i) introduces new or additional contamination, (ii) constitutes a breach of any restriction on the use of land set forth in Condition 26 of this Lease, or (iii) increases the cost of the required action by its failure to provide timely notice of encountering contamination or by its improper management of any contamination or contaminated soil or water existing on, beneath or in the vicinity of the Leased Premises on 29 April 1994.
CONDITION 11
MAINTENANCE OF LEASED PREMISES
11.1. The Lessee, at no expense to the Government, shall at all times protect, preserve, and maintain (or require its sublessees and licensees to maintain) the Leased Premises (or "!
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Former George AFB Page 22 of 65 Lease for Airfield Property applicable subleased or licensed premises), including any improvements located thereon, in good order and condition, and exercise due diligence in protecting the Leased Premises against damage, destruction or waste by fire and other causes, subject to the applicable provisions of Conditions 4, 10, 15 and 17. At a minimum, the Lessee agrees to maintain or to require its sublessees and licensees to maintain the Leased Premises to the extent required by the FAA conditions of transfer identified in Condition 23 below and the Application identified in Condition 5.1 above. The Lessee shall comply (and shall require its sublessees and licensees to comply) with the provisions of Condition 17 of this Lease in conducting any maintenance activities required to be performed hereunder.
11.2. The Lessee will be responsible at its sole cost and expense for any improvements, renovations, maintenance, and repair of all facilities, as well as parking areas included in the Leased Premises. The Lessee also will provide at its sole cost and expense any physical security it deems necessary for the Leased Premises to include privately-owned vehicles of its employees, contractor and subcontractors in the parking areas.
CONDITION 12
DAMAGE TO NON-LEASED GOVERNMENT PROPERTY
12.1. Any real or personal property of the Government, not leased under this Lease, damaged or destroyed by the Lessee incident to the Lessee's use and occupation of the Leased Premises shall be promptly repaired or replaced by the Lessee to the satisfaction of the SM. In lieu of such repair or replacement the Lessee shall, if so required by the SM, pay to the Government money in an amount sufficient to compensate for the loss sustained by the Government by reason of damage or destruction of Government property.
CONDITION 13
ACCESS AND INSPECTION
13.1. Any agency of the Government, its officers, agents, employees, and contractors, "!
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Former George AFB Page 23 of 65 Lease for Airfield Property may enter upon the Leased Premises, at all reasonable times for any official purposes not inconsistent with Lessee's quiet use and enjoyment and control of airport operations under this Lease, including but not limited to the purpose of inspection. The Government normally will give the Lessee or sublessee or licensee twenty-four (24) hours prior notice of its intention to enter the Leased Premises unless it determines the entry is required for safety, environmental, operations, or security purposes. The Lessee shall have no claim on account of any entries against the United States or any officer, agent, employee, or contractor thereof.
13.2. The Air Force will normally conduct an annual inspection of the Leased Premises.
Consistent with Condition 13.1, the Air Force shall give the Lessee, sublessee, or licensee at least twenty-four (24) hours prior notice of such inspection.
13.3. The Lessee will make available, upon request, all applicable permits, licenses, etc., required by federal, state, or local laws, regulations, or ordinances, for the operation of the Airport and ancillary airport facilities.
CONDITION 14
GENERAL INDEMNIFICATION BY LESSEE
14.1. The United States shall not be responsible for damages to property or injuries or death to persons which may arise from or be attributable or incident to the condition or state or repair of the Leased Premises, or the use and occupation thereof, or for damages to the property of the Lessee, or for damages to the property or injuries or death to the person of the Lessee's officers, agents, servants or employees, or others who may be on the Leased Premises at their invitation or the invitation of any one of them.
14.2. The Lessee agrees to assume all risks of loss or damage to property and injury or death to persons by reason of or incident to the possession and/or use of the Leased Premises, or the activities conducted by the Lessee under this Lease. The Lessee expressly waives all claims against the United States for any such loss, damage, personal injury or death caused by or "!
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Former George AFB Page 24 of 65 Lease for Airfield Property occurring as a consequence of such possession and/or use of the Leased Premises or the conduct of activities or the performance of responsibilities under this Lease. The Lessee further agrees, to the extent permitted under State law, to indemnify, save, hold harmless, and defend the United States, its officers, agents and employees, from and against all suits, claims, demands or actions, liabilities, judgments, costs and attorneys' fees arising out of, or in any manner predicated upon personal injury, death or property damage resulting from, related to, caused by or arising out of the possession and/or use of the Leased Premises or any activities conducted or services furnished in connection with or pursuant to this Lease. The agreements contained in the preceding sentence do not extend to claims for damages caused solely by the gross negligence or willful misconduct of officers, agents or employees of the United States without contributory fault on the part of any person, firm or corporation. The United States will give the Lessee notice of any claim against it covered by this indemnity as soon after learning of it as practicable.
14.3. The Lessee will provide at its sole expense any physical security it deems necessary for the privately owned vehicles of its own employees, contractors and subcontractors and their invitees. The Lessee agrees that the United States will not be responsible for loss or damage to the parked vehicles of its employees, contractors and subcontractors and their invitees, and, to the extent permitted under state law, it will defend, indemnify, and hold the United States harmless from any claims for such loss or damage.
CONDITION 15
RISK OF LOSS AND INSURANCE
15.1. The Lessee shall in any event and without prejudice to any other rights of the Government bear all risk of loss or damage or destruction to the Leased Premises, including any building(s), improvements, fixtures or other property thereon arising from any causes whatsoever.
15.2. The Lessee shall have the option to self-insure, in whole or in part, the risk of loss borne by Lessee under Condition 15.1 above. In addition, during the entire period this Lease "!
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Former George AFB Page 25 of 65 Lease for Airfield Property shall be in effect, the Lessee shall require, subject to availability on reasonable terms and conditions, sublessees and licensees of substantial portions of this Leased Premises to carry and maintain at their expense the following:
a. Property insurance coverage against loss or damage by fire and lightning and against loss or damage or other risks embraced by coverage of the type now known as the broad form of extended coverage (including but not limited to riot and civil commotion, vandalism, and malicious mischief and earthquake) in an amount not less than 100 percent of the full replacement cost of the buildings, building improvements, improvements to the land, and personal property on the Leased Premises, but not to exceed the fair market value of the property. The policies of insurance carried in accordance with this Condition shall contain a "Replacement Cost Endorsement." Such full replacement cost shall be determined from time to time, upon the written request of the Government or the Lessee, but not more frequently than once in any twenty-four (24) consecutive calendar month period (except in the event of substantial changes or alterations to the Leased Premises undertaken by the Lessee or any sublessee or licensee as permitted under the provisions of the Lease).
b. Comprehensive general liability insurance, including but not limited to general operation and airport liability insurance endorsed for hangar-keeping and products and completed operations and, where applicable, hangar-keeping liability insurance, on an "occurrence basis" against claims for "personal injury," including without limitation, bodily injury, death or property damage, occurring upon, in or about the subleased premises including any buildings thereon and the ramp area and adjoining sidewalks, streets, and passageways, such insurance to afford immediate minimum protection at the time of the Term Beginning Date, and at all times during the term of this Lease, to commercially reasonable limits (and deductibles) with respect to damage to property and with respect to personal injury or death to any one or more persons. Such insurance shall also include coverage against liability for bodily injury or property damage arising out of the acts or omissions by or on behalf of the sublessee or any other person or organization, or involving any owned, non-owned, leased or hired automotive equipment in connection with the sublessee's activities.
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Former George AFB Page 26 of 65 Lease for Airfield Property c. If and to the extent required by law, workers' compensation and employer's liability or similar insurance in form and amounts required by law.
15.3. During the entire period this Lease shall be in effect, the Lessee, or any sublessee or licensee shall carry and maintain the insurance required below at its expense, or require any contractor performing work on the Leased Premises to carry and maintain insurance at no expense to the Government:
a. The comprehensive general liability and property damage insurance provided for in subparagraph 15.2.a above shall be maintained for the limits specified thereunder and shall provide coverage for the mutual benefit of the Government and the Lessee as additional insureds in connection with any construction or work permitted pursuant to this Lease;
b. Fire and any other applicable insurance provided for in this Condition 15 which, if not covered under the provisions of existing policies, shall be covered by special endorsement thereto in respect to any alterations, including all materials and equipment therefore incorporated in, on or about the Leased Premises; and
c. Workers' compensation or similar insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against the United States, the Lessee or the Leased Premises in form and amounts required by law.
15.4. All policies of insurance which this Lease requires the Lessee or any sublessee or licensee to carry and maintain or cause to be carried or maintained pursuant to this Condition 15 shall be effected under valid and enforceable policies, in such forms and amounts as may, from time to time, be required under this Lease, issued by insurers of recognized responsibility. All such policies of insurance shall be for the mutual benefit of the Government and the Lessee and, if applicable, any sublessee or licensee as additional insured as well as any mortgagee to the extent allowed under this Lease. Each such policy shall provide that: (i) any losses shall be payable notwithstanding any act or failure to act or negligence of the Lessee or the Government "!
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Former George AFB Page 27 of 65 Lease for Airfield Property or any other person: (ii) no cancellation, reduction in amount, or material change in coverage thereof shall be effective until at least sixty (60) days after receipt by the Government of written notice thereof; (iii) the insurer shall have no right of subrogation against the Government and be reasonably satisfactory to the Government in all other respects. In no circumstances will the Lessee be entitled to assign to any third party rights-of-action that the Lessee may have against the Government. Notwithstanding the foregoing, any cancellation of insurance coverage based on nonpayment of the premium shall be effective upon ten (10) days written notice to the Government. The Lessee understands and agrees that cancellation of any insurance coverage required to be carried and maintained by the Lessee or any sublessee under this Condition 15 will constitute a failure to comply with the terms of the Lease, and the Government shall have the right to terminate this Lease for all or any applicable portion of the Leased Premises, pursuant to Condition 7, upon receipt of any such cancellation notice, but only if the Lessee fails to cure such noncompliance to the extent allowed under Condition 7.
15.5. The Lessee shall deliver or cause to be delivered upon execution of this Lease (and thereafter not less than fifteen (15) days prior to the expiration date of each policy furnished pursuant to this Condition 15) to the Government a certificate of insurance evidencing the insurance required by this Lease.
15.6. In the event that any item or part of the Leased Premises (other than alterations or other improvements made or authorized by the Lessee subsequent to the Term Beginning Date) shall be damaged or destroyed, the risk of which is assumed by the Lessee under Condition 15.1 above, the Lessee shall promptly give notice thereof to the Government. The Lessee shall have the election either to repair and restore the damaged or destroyed property or to continue to occupy or use the same without any obligation to repair or replace such damage other than repairs that may be required for safety reasons.
a. In the event the Lessee elects not to repair and restore the damaged or destroyed property, all applicable insurance proceeds relative to the damaged or destroyed property shall be applied first to removing any debris from and restoring the damaged area to a reasonably clean condition, and any remaining balance shall be retained by the Lessee for use at the airport for airport purposes. Notwithstanding the immediately preceding sentence, in the "!
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Former George AFB Page 28 of 65 Lease for Airfield Property event applicable terms of a leasehold mortgage on the Leased Premises, or any portion of the Leased Premises (as that term is defined in Condition 21) require the balance of such insurance proceeds to be paid first to a leasehold mortgagee(s) (as that term is defined in Condition 22), all such insurance proceeds shall be so paid and any remaining balance shall than be allocated as set forth in said sentence.
b. In the event the Lessee shall elect to repair and restore the damaged or destroyed property, it shall provide written notice of such election to the Government within ninety-five (95) days after the occurrence of such damage or destruction and thereafter shall promptly repair and restore the damaged or destroyed property to its condition immediately prior to the occurrence.
c. All repair and restoration work under this Condition 15.6 shall comply with the provisions of Conditions 10, 17, and 26 applicable to alterations and any other work subject to the notice requirements imposed by Condition 10.15.
15.7. Notwithstanding any other provision of this Lease, the Lessee may allow federal, state and local governmental sublessees to self-insure, in whole or in part, any of the risks within the scope of this Condition 15.
CONDITION 16
COMPLIANCE WITH APPLICABLE LAWS
16.1. The Lessee will at all times during the existence of this Lease promptly observe and comply, at its sole cost and expense, with the provisions of all applicable federal, state, interstate, and local laws, regulations, and standards, and in particular those provisions concerning the protection of the environment and pollution control and abatement.
16.2. The Lessee shall comply with all applicable federal, state and local laws, ordinances, and regulations with regard to construction, sanitation, licenses or permits to do business, and all other matters. The Lessee shall be responsible for determining whether it is "!
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GEO-19-0001 PBT
Former George AFB Page 29 of 65 Lease for Airfield Property subject to local building codes or building permit requirements, and for compliance with them to the extent they are applicable.
16.3. The Lessee shall comply with all applicable federal, state, and local occupational safety and health regulations.
16.4. The Lessee shall obtain and comply with all applicable permits, licenses, etc., required by federal, state, or local laws, regulations, or ordinances, for the operation of the Airport and ancillary airport facilities.
16.5. Nothing in this Lease shall be construed to constitute a waiver of federal supremacy or federal sovereign immunity.
16.6. Responsibility for compliance as specified in this Condition 16 rests exclusively with the Lessee, or with respect to any subleased premises with the appropriate sublessee. The Air Force assumes no enforcement or supervisory responsibility except with respect to matters committed to its jurisdiction and authority. The Lessee or appropriate sublessee shall be liable for all costs associated with compliance, defense of enforcement actions or suits, payment of fines, penalties, or other sanctions and remedial costs related to Lessee's or any sublessee's or licensee's use of the Leased Premises.
16.7. The Lessee or its sublessees or licensees shall have the right to contest by appropriate proceedings diligently conducted in good faith, without cost or expense to the Government, the validity or application of any law, ordinance, order, rule, regulation or requirement of the nature referred to in this Condition 16. The Air Force shall not be required to join in or assist the Lessee or its sublessees or licensees in any such proceedings.
CONDITION 17
DEVELOPMENT AND ALTERATIONS
17.1. The Lessee shall have the right to develop (or allow the development of) "!
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GEO-19-0001 PBT
Former George AFB Page 30 of 65 Lease for Airfield Property undeveloped or underdeveloped areas of the Leased Premises; to otherwise alter (or allow the alteration of) all or any portion of the Leased Premises; and to place, construct or demolish (or allow to be placed, constructed or demolished) any improvements, structures, alterations or additions or other changes in, to or upon the Leased Premises, subject to Conditions 10, 17.2 to
17.8, inclusive, and 26. All of the activities in the preceding sentence shall be referred to cumulatively as "Alterations."
17.2. The Lessee shall make (or shall require its sublessees and licensees to make) all Alterations in compliance with all applicable governmental laws, regulations, codes, standards or other requirements and the provisions of Condition 10 of this Lease. This obligation shall include compliance with all applicable provisions of the FFA.
17.3. The Lessee shall not construct or make, or permit its sublessees or licensees to construct or make, any Alterations which may impede or impair any activities under the FFA or are to be undertaken in Areas of Special Notice (as defined in Condition 10.15) without the prior written consent of the Air Force. Requests for such consent require review by the Chief of the BRAC Program Management Division and will be forwarded promptly by the SM through channels with the pertinent supporting documentation and comments. Such consent may include a requirement for written approval by the Remedial Project Managers appointed under the FFA and will provide that such approved alterations shall become Government property when annexed to the Leased Premises, except as provided in Condition 17.4. Detailed written descriptions shall be submitted in accordance with the provisions of Condition 10.15. Within thirty (30) days of receipt of the detailed written description, the Government may request the Lessee to provide more detailed information as necessary to complete its review. The Air Force review process for any proposed Alterations shall be completed within sixty (60) days of the receipt of the documents required to complete its review. In the event that problems are detected during review, immediate notice shall be provided by telephone to the Lessee.
17.4. The Lessee shall not make, permit, or suffer any Alterations to the Airport which constitute any major structural change or changes unless such change or changes are consistent with the former George AFB IRP, the FFA, the provisions of Condition 23.2.1, approved Airport "!
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GEO-19-0001 PBT
Former George AFB Page 31 of 65 Lease for Airfield Property Layout Plan, and the ROD. Any other additions, alterations or improvements constituting a major structural change or changes shall require the prior written consent of the Administrator of the FAA or his or her successor in function. Title to alterations shall vest in the United States unless the consent of the Administrator of the FAA or his or her successor in function provides specifically that title thereto shall vest in the Lessee (or sublessee or licensee as applicable), and shall be subject to the provisions of Condition 9 and all other terms and conditions of this Lease.
The Lessee agrees to the extent permitted by law to indemnify and save harmless the United States from mechanics' and materialmen's liens arising from any Alterations effected by the Lessee.
17.5. Any contractor or subcontractor of the Lessee or of any sublessee or licensee shall maintain or cause to be maintained the insurance required pursuant to Condition 15.3.
17.6. All Alterations, other construction and construction-related work, excavation and demolition performed by the Lessee (or permitted to be performed by any sublessee or licensee) shall be without cost to the Government.
17.7. All Alterations, other construction and construction-related work, excavation, demolition and restoration performed by the Lessee (or permitted to be performed by a sublessee or licensee) shall be consistent with the applicable requirements of Conditions 10, 16, 17 and 26 and shall comply with all applicable provisions of the FFA. For purposes of this Condition, the term "construction and construction-related work" shall include without limitation repairs, maintenance, alterations and additions.
17.8. The Lessee shall maintain MYLAR as-built drawings (or their equivalent) when Alterations authorized here under are completed.
17.9. In matters of ingress and egress, contractor haul routes, construction activity and disposition of excavated material, in connection with the privileges herein granted, shall be coordinated with the Air Force.
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GEO-19-0001 PBT
Former George AFB Page 32 of 65 Lease for Airfield Property CONDITION 18
UTILITIES
18.1. The Lessee will be responsible for, and will require its sublessees and licensees to be responsible for, all utilities, janitorial services, building maintenance and grounds maintenance for the Leased Premises (or subleased or licensed premises) without cost to the Government. The Lessee will (or will cause its sublessees or licensees to) purchase, install, and maintain meters without cost or expense to the Government within thirty (30) days of occupancy.
The Lessee will pay the charges for any utilities and services furnished by the Government that the Lessee may require in connection with its use of the Leased Premises. It is expressly understood and agreed that the Government in no way warrants the continued availability, maintenance or adequacy of any utilities or services furnished by it to the Lessee. The Government shall not under any circumstances provide telephone service to the Lessee, and it is the Lessee's sole responsibility to obtain such services on its own behalf and at its own expense.
a. Procurement of Government Utilities: [Omitted]
b. Procurement of Commercial Utilities: The Government no longer has the capability to deliver any utility services to the former Base. The Lessee must procure all necessary utilities direct from a commercial provider. The charges and method of payment for each utility or service so procured will be determined in accordance with applicable laws and regulations, on such basis as the appropriate supplier of the utility or service may establish.
18.2. Nothing herein shall require the Lessee or utility suppliers to continue to utilize any existing utility systems, provided that the Lessee makes adequate provision, or requires the applicable utility supplier to make adequate provision, for a transition to an alternate system or systems that prevents to the extent practicable any disruption to utility services to the Air Force or its successors. Any planned disruption must be coordinated with the Air Force. [See Also, Footnote 1 to Condition 26.2.a as applicable to site SS083]
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GEO-19-0001 PBT
Former George AFB Page 33 of 65 Lease for Airfield Property CONDITION 19
DISPUTES
19.1. Parties to Meet and Negotiate. If a dispute should arise, the Parties agree to first attempt to resolve the dispute using unassisted negotiation techniques (i.e., without the assistance of a neutral third party). Either Party may request in writing that unassisted negotiations commence. As part of the unassisted negotiation, the Parties shall consider employing joint fact- finding, if material factual disputes are involved, and shall use other early resolution techniques appropriate to the circumstances. If the dispute involves material issues of fact, the Parties may employ a neutral third party to provide a confidential evaluation of the issues of fact.
19.2. Except as otherwise provided in this Lease, any dispute concerning a question of fact, submitted by the Lessee to the BEC's attention, in writing, arising under this Lease which is not disposed of by mutual agreement shall be decided by the Chief of the BRAC Program Management Division (the “Division Chief”). The Division Chief shall reduce the decision to writing and mail or otherwise furnish a copy to the Lessee. The decision of the Division Chief shall be final and conclusive unless, within thirty (30) days from the date of receipt of such copy, the Lessee mails or otherwise furnishes to the Division Chief a written appeal addressed to the Director. The decision of the Director or his or her duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this Condition, the Lessee should be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Lessee shall proceed diligently with the performance of the Lease in accordance with the decision of Division Chief. This Condition does not preclude consideration of questions of law in connection with decisions provided for in this Condition 19.2. Nothing in this Condition, however, shall be construed as making final the decision of any administrative official, representative, or board on a question of law.
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GEO-19-0001 PBT
Former George AFB Page 36 of 65 Lease for Airfield Property of any portion of the Leased Premises (collectively, "Use Authorization"), subject to the provisions of subparagraphs (a), (b), (c), and (d) below in this Condition 21.2. Subject to the foregoing and prior written approval of the FAA, nothing contained in this Condition 21.2 shall prevent or limit the Lessee from subleasing all or any portion of the Leased Premises to the State of California, any unit or local government, political subdivision or other agency or instrumentality or local government, including but not limited to, a joint powers financing authority, nonprofit development corporation, or other nonprofit corporation or entity, for the purpose of structuring any public or private financing or any municipal financing arrangement.
a. The use of the Leased Premises associated with any Use Authorization must be allowable under Condition 6.
b. Any Use Authorization granted by the Lessee shall comply (or in the case of a transaction by a sublessee, licensee or other authorized user [collectively, an "Authorized User"], shall be required to comply) with the provisions of Condition 10, including the notice requirements of Section 21 of the FFA, and shall be consistent with all other terms and conditions of this Lease and the Application and Acceptance identified in Condition 5.1 above, except that the Lessee may rent or impose other types of charges for the subleased, licensed or other authorized use area (collectively, ''Authorized Use Area") at rates or levels that are deemed appropriate by the Lessee and consistent with FAA standards and requirements.
c. The instrument used by the Lessee to grant any Use Authorization must include all relevant covenants, conditions, restrictions, and reservations contained in Conditions
23.2a to 23.2.o, inclusive.
d. In the event of any conflict between the provisions of the Use Authorization and the provisions of this Lease, the provisions of this Lease will control. In the event of any conflict between the provisions of the Use Authorization and the provisions of the Application and Acceptance, the Application and Acceptance will control. Copies of this Lease and the Application and Acceptance must be attached to the Use Authorization instrument.
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GEO-19-0001 PBT
Former George AFB Page 37 of 65 Lease for Airfield Property
21.3. Unless otherwise expressly agreed to by the Government in writing, no Use Authorization shall relieve the Lessee of any of its obligations under this Lease.
CONDITION 22
LIENS AND MORTGAGES
22.1. Except as provided in this Condition 22, the Lessee shall not: (i) engage in any financing or other transaction creating any mortgage upon the Leased Premises; (ii) place or suffer to be placed upon the Leased Premises any lien or other encumbrance; or (iii) suffer any levy or attachment to be made on the Lessee's interest in the Leased Premises, other than such levy or attachment as may result from a foreclosure of a mortgage on any portion of the Leased Premises. Any such mortgage, encumbrance, or lien shall be deemed to be a violation of this covenant and constitute a failure to amply with the terms of the Lease on the date of its execution or filing of record regardless of whether or when it is foreclosed or otherwise enforced.
22.2. During the term of this Lease, the Lessee may encumber its interest in the Leased Premises or any portion thereof, by way of one or more loans secured by a mortgage to provide financing for the cost of capital improvements or other development of the Leased Premises, subject to the prior written approval of the FAA and Condition 22.3 below. The proposed holder of any mortgage must be approved by the Government prior to the execution of such loan (each, an “Approved Mortgagee”). An “Approved Mortgagee Affiliate” means any corporation, limited liability company, or other entity that controls, is owned or controlled by, or is under common ownership and control with, any Approved Mortgagee. Any loan with respect to the Leased Premises, or any portion thereof, may be further secured by a conditional assignment of this Lease by the Lessee to the mortgagee. The Government agrees to execute an Estoppel Certificate and any other similar documentation as may reasonably be required by the mortgagee so as to give its consent to the conditional assignment of this Lease and to certify as to the status of this Lease and to the performance of the Lessee hereunder as of the date of such certification.
22.3. No mortgage shall extend to or affect the fee, the reversionary interest or the "!
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GEO-19-0001 PBT
Former George AFB Page 38 of 65 Lease for Airfield Property estate of the Government in the Leased Premises. No mortgage shall be binding upon the Government in the enforcement of its rights and remedies under this Lease and by law provided, unless, and until a copy thereof shall have been delivered to the Government and such mortgagee is an Approved Mortgagee in accordance with the provisions of this Condition 22.
22.4. Promptly after assigning or encumbering the Leased Premises, or any portion thereof, the Lessee shall furnish the Government a written notice setting forth the name and address of such Approved Mortgagee. Further, the Lessee shall notify the Government promptly of any lien or encumbrance that has been created or attached to the Leased Premises or the Lessee's interest in the Leased Premises whether by act of the Lessee or otherwise, of which the Lessee has notice.
22.5. If an Approved Mortgagee, an Approved Mortgagee Affiliate or purchaser at foreclosure of the mortgage shall acquire the Lessee's interest in the Leased Premises, or any portion thereof, by virtue of the default of the Lessee under the mortgage or otherwise, this Lease shall continue in full force and effect so long as the Approved Mortgagee, Approved Mortgagee Affiliate or purchaser at foreclosure is not in default hereunder. The Approved Mortgagee, Approved Mortgagee Affiliate or purchaser at foreclosure may not appoint an agent or nominee to operate and manage any portion of the Leased Premises on its behalf without first obtaining the prior written approval of the FAA. Such approval may include, but is not limited to, a determination by the FAA that the proposed agent or nominee has demonstrated experience or expertise in the development, management, and operation of facilities similar to the Leased Premises. For the period of time during which the Approved Mortgagee, Approved Mortgagee Affiliate or any purchaser at foreclosure of a mortgage holds the Lessee's interest in the Leased Premises, the Approved Mortgagee, Approved Mortgagee Affiliate or such purchaser shall become liable and fully bound by the provisions of this Lease.
22.6. With respect to the Approved Mortgagees of the Leased Premises, the Government agrees that the following shall apply:
a. If requested by a mortgagee which shall have duly registered in writing "!
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GEO-19-0001 PBT
Former George AFB Page 39 of 65 Lease for Airfield Property with the Government its name and address, any notice from the Government to the Lessee shall be simultaneously delivered to such mortgagee at its registered address, and in the event of any such registration, no notice of default or termination of this Lease given by the Government to the Lessee shall be deemed legally effective until and unless like notice shall have been given by the Government to the Approved Mortgagee(s).
b. Such Approved Mortgagee(s) entitled to such notice shall have any and all rights of the Lessee with respect to the curing of my default here under by the Lessee.
c. The Government will not enter into any material modification of this Lease without the prior written consent thereto of each Approved Mortgagee who shall become entitled to notice as provided in Condition 22.4 above. The foregoing shall not apply or be construed to apply to any right the Government may have to terminate this Lease pursuant to its terms. It is also agreed that the Lessee shall provide any such Approved Mortgagee with notice of any proposed modification.
d. If the Government shall elect to terminate this Lease by reason of any default by the Lessee, the Approved Mortgagee(s) that shall have become entitled to notice as provided in this Condition 22.6 shall not only have any and all rights of the Lessee with respect to curing of any default, but also shall have the right to postpone and extend the specified date for the termination of this Lease ("Right to Postpone") in any notice of termination by the Government to the Lessee ("Termination Notice"), subject to the following conditions:
(1) Such Approved Mortgagee shall (i) give the Government written notice of the exercise of the Right to Postpone prior to the date of termination specified by the Government in the Termination notice, and (ii) simultaneously pay to the Government all amounts required to cure all defaults then existing (as of date of the exercise of Right to Postpone) which may be cured by the payment of a sum of money.
(2) Such Approved Mortgagee shall (i) pay any sums and charges which may be due and owing by the Lessee, and (ii) promptly undertake to cure, diligently "!
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