Item 16 - Battalion Chief Office and Quarters — Yucaipa City Council, August 24, 2026

CITY OF

STAFF REPORT
DATE:

August 24, 2026
TO:

Honorable Mayor and City Council
FROM:

Dr. Sean M. Moore, City Manager

PREPARED
Grant Malinowski, Fire Chief
BY:

SUBJECT:

Battalion Chief Office and Quarters
RECOMMENDATION:

That the City Council:

Item No. 16.

Authorize the City Manager to execute a modular building lease agreement to serve as temporary quarters for the incoming Battalion Chief in the amount of $41,910 and;

2. Provide further direction to staff.

BACKGROUND/DISCUSSION:

As part of the City's ongoing commitment to public safety and the maintenance of optimal emergency response times, the City Council recently approved an expansion of Fire Department personnel. This expansion included the implementation of a paramedic squad, addition of a Battalion Chief and Fire Investigator positions to ensure adequate operational oversight and command structure in accordance with CAL FIRE staffing requirements.

With the approved squad scheduled to begin service on October 1, 2026, Fire Station 3 has reached maximum capacity. The station currently has no remaining office space or sleeping quarters to accommodate the newly added Battalion Chief or Fire Investigator. This space limitation presents an immediate operational challenge, as the Battalion Chief position requires 24- hour readiness and an established workspace with sleeping quarters beginning October 1. There is insufficient space at the smaller city owned facility on Yucaipa blvd. or the CAL FIRE owned station on Bryant.

To meet this deadline, the most efficient and cost-effective solution is to lease a commercial -grade modular building. The modular unit will provide the required office space and 24/7 sleeping quarters for the Battalion Chief, as well as workspace for the Fire Investigator, until a permanent station expansion can be evaluated, funded, and constructed. City and Fire Department staff are actively pursuing grant opportunities and additional funding sources to support a long-term build -out at Fire Station 3.

The initial cost for delivery and setup of a 12' x 32' modular building at Station 3 is $9,953.72, with an ongoing monthly rental fee of $1,497.44 under an 18-month lease totaling $26,953.92 and a return fee of $5002. Total amount of the contract not to exceed $41,909.64 utilizing Sourcewell Contract #25413 eliminates the need for a formal RFP for this rental.

FISCAL IMPACT:

The costs for the Paramedic Squad were included in the budget for FY 26/27. Total of $1.4 million was budgeted for the paramedic squad and equipment. Therefore, no additional budget amendments needed.

Attachments
Attachment 1 - City of Yucipa Fire Department MM Quote and Agreement - Lease-636726.pdf

City of Yucipa Fire Department ("Lessee")
Grant Malinowski
Phone: 909-677-9578
[email protected]
Office, 12x32 HCD (Item1606W) (1 Office
withHandicap Accessible Restroom.Size excludes
3' towbar.)
Steps, Adjustable
Security Door Bars
Security Screens
Filter Replacement Program
Damage Waiver
Floor Mats
RNT, Holding Tank (Waste) ((1) 250
Gallon Holding tank with service once per
week)
Office, 12x32 HCD (Item1606W) (1 Office
withHandicap Accessible Restroom.Size excludes
3' towbar.)
Delivery
Delivery Pilot
Delivery Permit
Block and Level Building
Foundation, Installation
Essential Material Handling Fee
Service, Trip Charge(Del/Blvl)
Service, Trip Charge(Del/Blvl)
Removal, Towbar/Hitch
Delivery Haulage Fuel
Skirting, Install
RNT, Install or Delivery
Modifications
Grant Malinowski Mobile Modular Management Corporation
34259 Wildwood Canyon Road a Division of McGrath RentCorp ("Lessor") Yucaipa, CA 92399 Questions?
Cell: 909-677-9578 Contact: Brandy Casas
[email protected] Direct Phone: 9512310327
[email protected]
1 $700.00
$700.00 Y
2 $45.00
$90.00 Y
2 $8.00
$16.00 Y
3 $8.00
$24.00 Y
1 $27.00
$27.00 Y
1 $75.00
$75.00 N
2 $8.00
$16.00 Y
1 $435.00
$435.00
Equipment and Accessories Monthly Subtotal
IN
$1, 383.00
1 $898.00
$898.00
N
1 $526.00
$526.00
N
1 $265.00
$265.00
N
1 $675.00
$675.00
N
12 $220.00
$2,640.00
Y
1 $75.00
$75.00
N
1 $350.00
$350.00
N
1 $1,250.00
$1,250.00
N
1 $195.00
$195.00
N
1 $21.00
$21.00
N
88 $25.00
$2,200.00
Y
1 $435.00
$435.00
N
$0.00
Charges Upon Delivery Subtotal: $9,530.00
Quote # Q-636726
8/18/2026 2:41:14 PM

Page 1 of 11 ends

Lease Quotation and Agreement
Mobile Modular Management Corporation Quote # Q-636726
11450 Mission Blvd. Date of Quote 08/18/2026
mobile Jurupa Valley, CA 91752 Quote Expiration Date: 09/10/2026 modular - 951-360-6600 Lease Term: 18Months
www.mqrc.com Lessee PO#:

Office, 12x32 HCD (Item1606W) (1 Office
withHandicap Accessible Restroom.Size excludes
3' towbar.)
Return
1 $898.00
$898.00 N
Return Permit
1 $265.00
$265.00 N
Prepare Equipment For Removal
1 $675.00
$675.00 N
Foundation, Removal
12 $135.00
$1,620.00 N
Cleaning Fee
1 $450.00
$450.00 N
Installation, Towbar/Hitch
1 $195.00
$195.00 N
Return Haulage Fuel
1 $21.00
$21.00 N
Skirting, Removal
88 $6.00
$528.00 N
RNT, Removal
1 $350.00
$350.00 N
Estimated Charges Upon Return Subtotal: $5,002.00
Subtotal of Monthly Rent $1,383.00
Personal Property Expense $0.00
Taxes on Monthly Charge $114.44
Total Charges per Month (including tax) $1,497.44
Charges Upon Delivery (including tax) $9,953.72
Estimated Charges Upon Return (including tax)* $5,002.00 Estimated Initial Invoice* $11,451.16
*Charges upon return will be charged at Lessor's then -current rates for lease terms greater than 12 months.

Flooring (VCT): This building ships standard with used VCT in good condition. VCT may have some discoloration or wear). New VCT is available for an additional charge.

Tie -downs: Quantity and price may vary based on seismic source factor and site conditions. Patch and repair of site after removal is not included and is the responsibility of the Customer. Alternative non -penetrating seismic system is available for an additional charge. Wet -stamped engineering available for an additional charge.

General: Customer's site must be dry, compacted, level and accessible by normal truck delivery. Pricing does not include any clearing or grading of sites, obstruction removal, site or final building clean up , any asphalt transitions, dolly, crane, forklift, electrical or plumbing connections, window coverings, furniture, casework, appliances, doorstops, phone or data lines, gutters, downspouts or tie-in, temporary power, temporary fencing, traffic control, flagmen, soil and/or pull test, custom engineering, fees associated with inspections, city or county submittals and/or use permits, security screens, door bars and any item not specifically listed as being included.

Yes - Prevailing Wage: Pricing includes prevailing wage and certified payroll for installation work performed on site.

Quote # Q-636726 Page 2 of 11
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Lease Quotation and Agreement
Mobile Modular Management Corporation Quote # Q-636726
11450 Mission Blvd. Date of Quote 08/18/2026
Mobile Jurupa Valley, CA 91752 Quote Expiration Date: 09/10/2026 modular - 951-360-6600 Lease Term: 18Months
www.mqrc.com Lessee PO#:
• Quote is valid for 30 days.
• Lessee's site must be dry, compacted, level and accessible by normal truck delivery. Costs to dolly, crane, forklift, etc. will be paid by Lessee. Unless noted, prices do not include permits, ramp removal, stairs, foundation systems, foundation system removal, temporary power, skirting, skirting removal, engineering, taxes or utility hookups. • Subject to equipment availability. Unless noted, equipment and related furnishings, finishes, accessories and appliances provided are previously leased and materials, dimensions, and specifications vary. Detailed specifications may be available upon request. • For lease transactions, Lessor reserves the right to substitute equal or better equipment prior to delivery without notice. • This transaction is subject to prior credit approval. Security deposit and payment in advance may be required. • Sales Tax will be calculated based on the tax rate at the time of invoicing. • Unless otherwise noted, prices do not include prevailing wages, Davis -Bacon wages, or other special or certified wages.

The Estimated Equipment Value is listed below. Lessee is solely responsible for complying with all insurance requirements set forth in the Lease Terms and Conditions attached hereto.

Office, 12x32 HCD (ltem1606W)
$21,450.00
Quote # Q-636726
8/18/2026 2:41:14 PM

Page 3 of 11 ends

This Lease Quotation and Agreement is entered into by and between Lessor and Lessee effective as of the date signed by Lessee. This Lease Quotation and Agreement includes the terms and conditions set forth in the following two documents (collectively, the "Agreement"), each of which is incorporated herein by this reference:

1. Lease Terms and Conditions attached hereto; and

2. Supplemental Lease Terms and Conditions located at ( https://www.mobilemodular.com/contractterms) , as the same may be updated from time to time in the sole and absolute discretion of Lessor.

3. Supplemental Terms for Starlink Services and Starlink Kit located at ( https://www.mobilemodular.com/contractterms) , as the same may be updated from time to time in the sole and absolute discretion of Lessor, provided that such terms shall only apply in the event the Agreement includes the provision of Starlink broadband internet services.

4. Supplemental Terms for Broadband Services (Non-Starlink) located at ( https://www.mobilemodular.com/contractterms) , as the same may be updated from time to time in the sole and absolute discretion of Lessor, provided that such terms shall only apply in the event the Agreement includes the provision of non-Starlink broadband internet services.

IN THE EVENT THE LESSOR AND LESSEE HAVE ENTERED INTO A MASTER LEASE AGREEMENT, THE TERMS OF

SUCH MASTER LEASE AGREEMENT ARE INCORPORATED HEREIN BY THIS REFERENCE, ARE DEEMED A PART OF THIS AGREEMENT, AND TAKE PRECEDENCE OVER ANY CONFLICTING TERMS IN THIS AGREEMENT.

By signing below, Lessee: (1) acknowledges and agrees that it has received, read and understands the terms of this Agreement and agrees to be bound by the terms of this Agreement, including prices and specifications, and (2) instructs Lessor to make appropriate arrangements for the preparation and delivery of the Equipment identified herein. This Agreement may be executed in one or more counterparts (including through the use of electronic signatures), each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Upon execution of this Agreement, Lessor shall generate a Lease Agreement Number, which shall be referenced on all Lessor invoices.

No document provided by Lessee, including, without limitation, Lessee's purchase orders, work orders, bills of lading, or forms for receipt or acknowledgment or authorization ("Lessee Forms"), nor the terms and conditions associated with such Lessee Forms, shall amend, modify, supplement, waive, or release any term or condition of this Agreement (or the Master Lease Agreement, as applicable) even if such Lessee Forms are signed by an agent or representative of Lessor. The terms and conditions of this Agreement (or the Master Lease Agreement, as applicable) shall prevail over any Lessee Forms, and any inconsistent or additional terms and conditions in Lessee Forms shall be deemed void ab initio and of no force or effect.

The individuals signing this Agreement affirm that they are duly authorized to execute this Agreement by and on behalf of the parties hereto.

LESSOR: LESSEE:

Mobile Modular Management Corporation City of Yucipa Fire Department a Division of McGrath RentCorp
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

Quote # Q-636726 Page 4 of 11
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Quote # Q-636726 Page 5 of 11
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Lease Quotation and Agreement
Mobile Modular Management Corporation Quote # Q-636726
4, 11450 Mission Blvd. Date of Quote 08/18/2026
Mobil Jurupa Valley, CA 91752 Quote Expiration Date: 09/10/2026 modular P 951-360-6600 Lease Term: 18Months
www.mgrc.com Lessee PO#:

LEASE TERMS AND CONDITIONS

1. LEASE. Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the Equipment (as defined below). The lease of any Equipment is governed by the terms of this Agreement. The Equipment is and shall remain the personal property of Lessor.

2. TERMS. All capitalized terms used and not otherwise defined herein, will have the meanings set forth in this Agreement. As used in this Agreement, the following definitions shall apply: "Accessories" shall mean any additions, attachments, or accessories to the modular buildings, or ancillary services, provided by Lessor to Lessee and identified in this Agreement; "Equipment" shall mean the modular buildings, Accessories, and/or Services identified in this Agreement, together with any replacements, repairs, additions, attachments or accessories hereafter rented to Lessee under this Agreement.

3. PAYMENTS AND PRICE ADJUSTMENTS. Lessee agrees to pay to Lessor each payment specified herein on a net invoice basis.

Payment terms are net due upon receipt unless otherwise agreed upon in writing. All payments due from Lessee pursuant to this Agreement shall be made by Lessee without any abatement or setoff of any kind whatsoever arising from any cause whatsoever. Prices will be increased by Lessor for unknown circumstances or conditions, including, but not limited to, driver waiting time, special transport permits, difficult site conditions and/or increases in fuel prices.

4. LEASE TERM; EARLY TERMINATION. The Lease Term and Monthly Rent, each of which are specified in this Agreement, shall commence on the date the Equipment is delivered to the Site (the "Start Rent Date"), unless a different date is mutually agreed upon in writing, and shall continue thereafter for the number of months specified in this Agreement as the Lease Term. Lessee agrees to pay the Total Charges per Month specified in this Agreement (as may be adjusted pursuant to Section 5 below) for each month during the Lease Term and any extensions thereof. A month is defined as thirty (30) calendar days; rent will be billed monthly unless otherwise specified in this Agreement (but rent shall be due and owing even in the absence of actual receipt by Lessee of an invoice or bill). In the event that Lessee terminates this Agreement prior to the expiration of the Lease Term, Lessor shall be entitled to charge an early termination fee, even if such termination occurs prior to delivery of the Equipment. Such fee shall be determined by Lessor, in its sole discretion, following the receipt of the termination request.

Such early termination fee may include, but shall not be limited to, charges related to the preparation of the Equipment for delivery and/or the rental value of this Agreement. In no event shall any such early termination fee exceed the total value of this Agreement. Lessor shall not be liable to Lessee for any failure or delay in obtaining, delivering or setting up the Equipment. If Lessee delays delivery of the Equipment for any reason for thirty (30) days or longer from the original delivery date mutually agreed upon between both parties, Lessor may, in Lessor's sole discretion, charge Lessee a monthly storage fee equal to the Monthly Rent starting on the original delivery date, and/orterminate this Agreement, subject to the early termination provisions set forth above.

5. EXTENSION OF LEASE TERM. Upon expiration of the initial Lease Term set forth in this Agreement, the lease of the Equipment shall automatically be extended on a month -to -month basis until the Equipment is returned to Lessor. This Agreement does not expire and the terms and conditions hereof shall remain in full force and effect for any extension of the Lease Term, unless otherwise agreed upon by Lessor and Lessee in writing. Lessor may periodically revise the Total Charges per Month from those reflected in this Agreement if the lease of the Equipment is extended beyond the initial Lease Term. If the lease of the Equipment is extended beyond the initial Lease Term, Lessor may revise the charges for the Charges Upon Return from those specified in this Agreement to reflect Lessor's then -current market rates for such services.

6. PREPARATION FOR REMOVAL OF THE EQUIPMENT. Prior to the scheduled removal of the Equipment, Lessee shall, at a minimum:
(a) provide clear access to the Equipment for Lessor to dismantle and remove the Equipment from the Site by industry -standard trucking methods; (b) disconnect all utilities; (c) remove all personal property of Lessee's from the Equipment; and (d) in the case of Equipment that includes plumbing, flush the plumbing lines clean and ensure that no foreign matter remains in any fixtures. Plumbing must be properly disconnected by Lessee at its sole cost and expense. Lessee will be responsible for costs of repair required by improper plumbing disconnection to the extent that the Equipment is damaged. Any components, parts or accessories supplied by Lessor must be returned with the Equipment. In the event that Lessee fails to meet the requirements herein, additional charges may be incurred by Lessee for additional labor, waiting time, or dry -runs in the event that Lessor is unable to return the Equipment as scheduled.

7. RETURN OF EQUIPMENT. Lessee must provide a minimum of thirty (30) days prior, written notice to Lessor when requesting to return the Equipment. Lessee is responsible for complying with the requirements set forth in the "Preparation for Removal of the Equipment" section of these Lease Terms and Conditions. Unless otherwise agreed upon by Lessor in writing, Lessee shall continue to be responsible for payment of the Total Charges per Month set forth in this Agreement (as may be adjusted pursuant to Section 5 hereto) until return of the Equipment to Lessor is completed. The Total Charges per Month will be prorated in one-half (1/2) month increments only. If the Equipment is returned within the first fifteen (15) days of the billing period, Lessee shall be responsible for paying half of the Total Charges per Month; if Equipment is returned between the sixteenth (16th) and thirtieth (30th) days of the billing period, Lessee shall be responsible for paying the entire amount of the Total Charges per Month. The charges reflected in this Agreement for Charges Upon Return will be adjusted for any Lease Term longer than twelve (12) months or if the Lease is extended beyond the initial Lease Term, pursuant to Section 5.

8. WARRANTIES; DISCLAIMER. Lessor warrants to Lessee that the Equipment, when delivered and set up and under normal use and regular service and maintenance by Lessee, shall be free from major defects in materials and workmanship that prevent any normal use and operation. Accessories supplied by Lessor pursuant to this Agreement but not owned by Lessor shall not be subject to the foregoing warranty, but shall carry the applicable warranty of the Accessory owner, which Lessor hereby assigns to Lessee to the extent transferable.

Lessor's liability under this warranty shall be limited to the replacement or repair of the defective Equipment (during Lessor's normal working hours), at Lessor's option; provided, however, that Lessee shall provide written notice of any failure or defect to Lessor within four (4) days after discovery, and within the applicable warranty period, and failure to provide such notice in a timely manner may result in a limitation of this warranty at Lessor's sole option. If Lessee does not grant clear, unobstructed access for any such repairs between 8:00 a.m. and 5:00 p.m., Monday through Friday, Lessee shall bear the cost of repair rates for labor at the applicable overtime rates. This warranty does not Quote # Q-636726 Page 6 of 11
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LESSOR'S SOLE AND EXCLUSIVE WARRANTIES WITH RESPECT TO THE EQUIPMENT AND SERVICES, AND ARE IN LIEU

OF AND EXCLUDE ALL OTHER WARRANTIES, GUARANTEES, PROMISES, AFFIRMATION OR REPRESENTATIONS OF

ANY KIND, EXPRESSED OR IMPLIED, WHICH MAY BE DEEMED APPLICABLE TO THE EQUIPMENT OR SERVICES,

INCLUDING WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY OR ITS FITNESS

FOR ANY PARTICULAR PURPOSE, ANY WARRANTY AGAINST INFRINGEMENT OR AS TO TITLE, WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OR TRADE OR ANY OTHER MATTER. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, ALL EQUIPMENT AND SERVICES ARE BEING PROVIDED "AS IS", "WHERE IS, WITH ALL FAULTS". LESSOR

SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST OR PRESENT, THERETO. LESSEE HAS SELECTED ALL EQUIPMENT FOR LESSEE'S INTENDED USE.

9. TAXES. Lessee agrees to be responsible for all charges, fees and taxes (local, state and federal) levied or assessed upon Lessee or Lessor relating to the ownership, leasing, rental, sale, possession, use or operation of the Equipment (including, without limitation, sales, use and personal property taxes); provided, however, that the foregoing obligation shall not apply to any local, state or federal income tax assessed against the Lessor as a result of this Agreement which shall continue to be the obligation of Lessor. Lessee shall pay all such taxes for which it is responsible to the appropriate taxing authorities or, if directed or invoiced by Lessor, pay such amounts to Lessor for remittance by Lessor to the appropriate taxing authorities.

10. LOSS OR DAMAGE. Upon delivery and until the Equipment is removed from the Site by Lessor or its authorized agent, Lessee assumes all risk of loss or damage to the Equipment. Should any Equipment damaged be capable of repair, the Equipment shall be repaired and restored to its condition existing prior to such damage, at Lessee's sole cost and expense. In the event any of the Equipment is damaged beyond repair or is lost, stolen or wholly destroyed, this Agreement shall cease and terminate as to such Equipment as of the date of the event, accident or occurrence causing such loss or destruction, and Lessee shall pay Lessor within forty-five (45) days thereafter, an amount equal to the full replacement value of the Equipment, which payment obligation shall survive the termination of this Agreement.

11. INSURANCE. Lessee shall procure and maintain, at its sole expense (including all premiums, deductibles and self -insured retentions), (i) property insurance covering the loss, theft, destruction, or damage to the Equipment in an amount not less than the full replacement value thereof (and with a deductible no higher than $25,000), naming Lessor as loss payee of the proceeds, and (ii) commercial general liability insurance (minimum of $1,000,000 per occurrence and $2,000,000 in the aggregate) (and with a deductible no higher than $25,000), naming Lessor and its designees as additional named insureds. Lessee's insurance shall be primary and non-contributory to any insurance maintained by Lessor or any other additional insureds or additional named insureds. The liability insurance policy shall contain coverage for all contractual indemnity obligations of Lessee set forth in this Agreement, cross -liability and waiver of subrogation provisions in favor of Lessor and any other additional insureds. All evidence of all required insurance shall be in a form reasonably acceptable to Lessor and with a company having an A.M. Best rating of A- (VII) or better, and shall not be subject to cancellation without thirty (30) days' prior written notice to Lessor. Lessee shall provide to Lessor insurance certificates and endorsements (including without limitation, additional insured and loss payee endorsements) evidencing compliance with the insurance requirements of this Agreement (including without limitation, the deductible amounts and waiver of subrogation) prior to delivery of the Equipment and shall maintain all required insurance coverage until the Equipment is returned to Lessee. Lessor will not and does not provide insurance for any of Lessee's personal property that may be in or on any Equipment.

12. INDEMNIFICATION AND LIMITATION OF LIABILITY.
(a) LESSEE ON BEHALF OF ITSELF, ITS SUCCESSORS, ASSIGNS, PARENTS, SUBSIDIARIES, VENDORS, SUBCONTRACTORS,

AND AFFILIATES, AND THEIR RESPECTIVE REPRESENTATIVES, DIRECTORS, OFFICERS, MANAGERS, VENDORS, MEMBERS, SHAREHOLDERS, PARTNERS, CONTRACTORS, EMPLOYEES, AGENTS, AND ASSIGNS (EACH, A "LESSEE PARTY," AND COLLECTIVELY, THE "LESSEE PARTIES") SHALL INDEMNIFY, DEFEND, RELEASE, AND HOLD HARMLESS

LESSOR, ITS SUCCESSORS, ASSIGNS, PARENTS, SUBSIDIARIES, VENDORS, CONTRACTORS, AND AFFILIATES, AND

THEIR RESPECTIVE REPRESENTATIVES, DIRECTORS, OFFICERS, MANAGERS, VENDORS, MEMBERS, SHAREHOLDERS, PARTNERS, CONTRACTORS, EMPLOYEES, AGENTS, AND ASSIGNS (EACH A "LESSOR INDEMNIFIED PARTY," AND COLLECTIVELY, THE "LESSOR INDEMNIFIED PARTIES") FROM AND AGAINST ANY AND ALL LOSSES, FEES, COSTS,

EXPENSES, CLAIMS, LIABILITIES, DAMAGES, PENALTIES, FINES, FORFEITURES, AND SUITS (INCLUDING COSTS OF

DEFENSE, SETTLEMENT AND REASONABLE ATTORNEYS' FEES, ENVIRONMENTAL CONSULTANTS AND EXPERT WITNESS FEES AT TRIAL AND ON APPEAL) (COLLECTIVELY, "LOSSES") RELATING TO, ARISING OUT OF OR IN CONNECTION WITH: (1) ANY BREACH OR NON -FULFILLMENT OF ANY COVENANT, AGREEMENT, OR OBLIGATION TO BE

PERFORMED BY LESSEE PURSUANT TO THIS AGREEMENT, OR ANY INACCURACY IN OR BREACH OF ANY OF THE REPRESENTATIONS OF LESSEE SET FORTH IN THIS AGREEMENT; (2) THE OCCURRENCE OF ANY EVENT SET FORTH IN SECTION 13; (3) THE SELECTION, USE, POSSESSION, DELIVERY, RENTING, LEASING, SUBLEASING, OPERATION,

TRANSPORT, MAINTENANCE, CONDITION, REPAIR, REPLACEMENT, REPOSSESSION, RETURN OR STORAGE OF ANY EQUIPMENT OR ANY SERVICES; (4) ANY FAILURE BY ANY LESSEE PARTY TO COMPLY WITH ANY APPLICABLE LAW IN CONNECTION WITH ANY EQUIPMENT OR THE SERVICES OR THIS AGREEMENT; (5) ANY DEATH OR BODILY INJURY TO

ANY PERSON OR DESTRUCTION OR DAMAGE TO ANY PROPERTY TO WHICH THE ACTS OR OMISSIONS OF A LESSEE PARTY CONTRIBUTED; OR (6) ANY NEGLIGENT OR INTENTIONAL ACT OR OMISSION OF ANY LESSEE PARTY FOR ANY ACTION RELATED TO OR ANY USE OF ANY EQUIPMENT. THIS INDEMNITY SHALL APPLY EVEN IF SAID LOSSES ARE

OCCASIONED, BROUGHT ABOUT OR CAUSED BY THE CONCURRENT NEGLIGENCE OF ANY LESSOR INDEMNIFIED PARTY,

UNLESS A COURT OF COMPETENT JURISDICTION SHOULD DETERMINE THAT THE LOSSES WERE PROXIMATELY CAUSED BY THE SOLE NEGLIGENCE OR WILLFUL ACTS OR OMISSIONS OF A LESSOR INDEMNIFIED PARTY. IF THE FOREGOING

OBLIGATIONS ARE NOT ENFORCEABLE AGAINST LESSEE UNDER APPLICABLE LAW, LESSEE AGREES TO INDEMNIFY, Quote # Q-636726 Page 7 of 11
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DEFEND, RELEASE AND HOLD HARMLESS LESSOR INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LOSSES

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, TO THE EXTENT OF THE ACTS OR OMISSIONS OF THE LESSEE PARTIES' NEGLIGENT OR WORSE CONDUCT. THIS INDEMNIFICATION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. (b) TO THE FULLEST EXTENT NOT PROHIBITED BY LAW, LESSOR'S LIABILITY, IF ANY, SHALL BE LIMITED TO THE VALUE OF

RENTAL FEES AND ALL OTHER AMOUNTS PAID BY LESSEE AND RECEIVED BY LESSOR UNDER THIS AGREEMENT FOR

THE EQUIPMENT AND/OR SERVICES, AND LESSOR SHALL HAVE NO LIABILITY TO LESSEE OR ANY THIRD -PARTY FOR

ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

13. EVENTS OF DEFAULT; REMEDIES. Each of the following shall constitute an "Event of Default": (1) failure by Lessee to make any payment within ten (10) days after its due date; (2) failure by Lessee to perform any other obligation under this Agreement, and the continuance of such default for ten (10) days after written notice thereof by Lessor to Lessee; (3) any material misrepresentation or false statement of fact by Lessee; (4) the loss, theft, damage, destruction or the attempted sale or encumbrance by Lessee of any of the Equipment; or (5) Lessee's dissolution, termination of existence, discontinuance of business, insolvency, or the commencement of any bankruptcy proceedings by or against, Lessee. Lessee acknowledges that any Event of Default will substantially impair the lease value of the Equipment hereof. Upon the occurrence of any Event of Default, Lessor may, without notice, exercise one or more of the following remedies: (1) declare all unpaid payments under this Agreement to be immediately due and payable; (2) terminate this Agreement as to any or all items of the Equipment; (3) take possession of the Equipment wherever found, and for this purpose enter upon any premises of Lessee and remove the Equipment, without any liability to Lessee; (4) direct Lessee at its expense to promptly prepare the Equipment for pickup by Lessor; (5) proceed by appropriate action either in law or in equity to enforce performance by Lessee of the terms of this Agreement or to recover damages for the breach hereof, including attorneys' fees and any other expenses paid or incurred by Lessor in connection with the repossession of the Equipment; (6) apply the security deposit specified in this Agreement ("Security Deposit") to payment of Lessor's costs, expenses and attorney fees in enforcing the terms of this Agreement and to indemnify Lessor against any damages sustained by Lessor; and/or (7) recover the replacement cost of any Equipment which Lessor is unable to repossess.. Lessor's waiver of any Event of Default shall not constitute a waiver of any other Event of Default or of any term or condition of this Agreement. No right or remedy referred to herein is intended to be exclusive and each may be exercised concurrently or separately and from time to time. In the event of repossession, Lessee waives any bond posting requirement.

Lease Terms and Conditions, Rev. 07/09/2026
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DAMAGE AND DESTRUCTION WAIVER
This Damage and Destruction Waiver is an agreement between City of Yucipa Fire Department ("Lessee') and Mobile Modular Management Corporation, a division of McGrath RentCorp ("Lessor"), dated as of 08/18/2026 (the "Waiver"). This Waiver is hereby incorporated into and made a part of Lease Quotation and Agreement number Q-636726 (the "Lease Agreement').

Lessee and Lessor agree as follows:

Section 1. Defined Terms.

All terms that are capitalized in this Waiver shall have the meanings ascribed to such terms in the Lease Agreement unless otherwise defined in this Waiver.

Section 2. Modification to Lease Terms and Conditions (Attachment A).

This Waiver relates to and modifies certain provisions of the Lease Terms and Conditions (the "Lease Agreement') under which Lessee is leasing certain modular building(s) from Lessor (the "Equipment').

Section 3. Waiver.

For and in consideration of the payment of a fee described in Section 4 (the "Waiver Fee'), and subject to payment of any applicable deductible as required in Section 5, and the limitations on coverage in Section 6, (i) Lessee is relieved of any obligation or liability for any loss or damage to the Equipment as required by Section 7 of the Lease Agreement, in the event of loss or damage to the Equipment by any of the causes in Section 3(b) and (ii) Lessee is relieved from the duty to maintain certain insurance insuri ng for loss, damage or destruction of the Equipment ('Property Insurance") as required by Section 8 of the Lease Agreement.

Subject to the provisions of Section 3(a), this Waiver relieves Lessee of any obligation or liability for loss or damage to the Equipment in the event the Equipment is damaged by any of the following causes:
• Fire and smoke damage
• Lightning
• Windstorm/Tornado
• Flood
• Hail
• Earthquake
• Explosions
• Collision with a vehicle
Section 4. Waiver Fee.
(b) The Waiver Fee specified in the Lease Agreement shall be payable monthly during each month of the Lease Term and any extensions thereof.
(C) This Waiver is effective upon payment of the Waiver Fee. (d) The failure to make payment of the Waiver Fee each month shall cause this Waiver to be terminated immediately as of the date that such Waiver Fee was payable without further action or notice by Lessor ("Waiver Termination"). (e) In the event of a Waiver Termination, the obligations of the Lessee pursuant to Sections 10 and 11 of the Lease Agreement shall be immediately reinstated and applicable. Within five (5) days of such reinstatement of Section 11, Lessee shall provide proof of Property Insurance in which Lessee is named as an additional insured.

Section 5. Deductible.

Lessee shall pay a deductible on any damage to the Equipment per occurrence ("Deductible"). The applicable deductible amount shall be as set forth in the table below, based on the Estimated Insurance Value of the Equipment specified in the Lease Agreement. Provided that the cause of the damage to the Equipment results from a cause listed in Section 3(b) of the Waiver, Lessee shall not be liable for damage to the Equipment beyond the Deductible.

Estimated Insurance Value
Deductible
Less than $50,000.00
$2,500.00
Between $50,001.00 and $100,000.00
$5,000.00
Between $100,001.00 and $250,000.00
$10,000.00
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Above $250,000.00 1 $50,000.00
Section 6. Limitations on Waiver.

Notwithstanding the waiver for losses and damages enumerated in Section 3 of this Waiver, Lessee shall be liable for loss or damage to the Equipment as follows:
(f) damage caused by the gross negligence or intentional acts of Lessee or its agents and employees; (g) damage to Equipment that is caused by a named storm, including but not limited to hurricanes, whether such damage is the result of wind, flooding, or otherwise;
(h) damage to Equipment caused by a windstorm, not including a tornado, resulting from Lessee failing to secure or tie down the Equipment as recommended by Lessor;
(i) damage to contents of the Equipment or any real or personal property attached to or adjacent to the Equipment; Q) theft or disappearance of the Equipment;
(k) damages to the Equipment from Lessee's failure to limit or mitigate the continuation of damage to the Equipment; (1) liability for death or injury to any person;
(m) damages for Lessee's unauthorized improvements or modifications or additions to the Equipment; (n) damages from graffiti, or other paint contamination or paint damage by any means; (0) damage to the Equipment caused by any condition or event not enumerated in Section 3(b) of this Waiver Section 7. Liability Insurance.

This Waiver does not affect the obligation of Lessee to maintain General Liability insurance as specified in Section 8 of the Lease Agreement for any liability arising out of or relating to Lessee's Lease of the Equipment.

Section 8. Nature of Waiver.

This Waiver is not insurance. It is a contractual agreement that relieves Lessee from certain duties and liabilities upon the payment of the Waiver Fee. The Waiver does not extend to or relate to any damage or loss of property in, on or about the Equipment. The Waiver does not extend to any loss or damage to the Equipment caused by the intentional acts of Lessee. Lessee shall be responsible for and will pay to Lessor amounts equal to the loss or damage caused to or sustained by the Equipment as a result of the intentional acts of Lessee. The Waiver does not relieve or affect any liability that Lessee may have as a result of the use of the Equipment.

Section 9. Other Terms and Conditions of the Lease Agreement.

Except for the waiver of the provisions of Section 7 and Section 8 of the Lease Agreement, all other terms and conditions of the Lease Agreement remain in full force and effect and shall not be modified by this Waiver.

Section 10. Notice of Loss. Damaoe or Destruction of Eauipment.

Lessee will promptly advise Lessor in writing of any loss, damage, or destruction of the Equipment. Such notice of loss must be made within one (1) business day of the day on which Lessee knows of or has reason to believe that the Equipment is the subject of any loss, damage or destruction.

Section 11. Termination of the Waiver.

Lessee and Lessor may each terminate this Waiver upon thirty (30) days prior written notice. The Waiver may also be terminated by Lessor upon the default of Lessee to pay the required Waiver Payment as provided by Section 2(b) and 2(c) of this Waiver.

Section 12. Counterparts.

This Waiver may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or with any electronic signature complying with the U.S. federal ESIGN Act of 2000, (e.g. execution of this Waiver may be through an a -sign service www.docusicin.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

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This Waiver is executed as of the day and year first above written.

LESSOR:

Mobile Modular Management Corporation
a Division of McGrath RentCorp
Signature:

Name:

Title:

Date:

LESSEE:

City of Yucipa Fire Department
Signature:

Name:

Title:

Date:

Quote # Q-636726 Page 11 of 11
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Yucaipa City CouncilAugust 24, 2026

Yucaipa City Council
August 24, 2026