REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
March 29, 2022
FROM
JAMES E. JENKINS, Director, Department of Airports
SUBJECT
Title
Amendment to Loan Agreement with the United States of America for Static Display of United States Airforce F-86 Fighter Jet at Apple Valley Airport
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the County Service Area 60 - Apple Valley Airport, approve Amendment No. 16 to Loan Agreement No. 06-1073 and Inventory Report with the United States of America for the loan of a United States Air Force F-86 Fighter Jet for static display at Apple Valley Airport at no cost, extending the term of the agreement for the period from April 1, 2022 through March 31, 2024.
(Presenter: James E. Jenkins, Director, 387-8810)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not require Discretionary General Funding (Net County Cost). There is no cost for the loan agreement (Agreement) with the United States of America (US) for the loan of the United States Air Force F-86 Fighter Jet (Aircraft) for static display at Apple Valley Airport other than routine cleaning and maintenance costs, which is estimated to be up to $500 per year, and minimal insurance costs. Sufficient funding and appropriation for this cost are included in the County Service Area 60 - Apple Valley Airport (CSA 60) 2021-22 budget and will be included in future recommended budgets as necessary. In the event the Agreement is not further extended, CSA 60 shall return the Aircraft at a location determined by the US at no cost to the US.
BACKGROUND INFORMATION
Approval of this item will extend the no-cost Agreement for the loan of the Aircraft for continued static display at Apple Valley Airport for two years from April 1, 2022 through March 31, 2024, and an Inventory Report that acknowledges possession of the Aircraft and its value.
The aircraft may only be used for static display purposes, may not be modified without US consent, and must be insured for its full replacement value of $10,000. The aircraft display will continue to be maintained as required by the Agreement by the Department of Airports’ (Department) staff with the participation of volunteer organizations, most notably the Apple Valley Chapter of the Experimental Aircraft Association.
On August 23,1995 the Town of Apple Valley (Town) entered into an agreement with the US, acting by and through the National Museum of the United States Air Force (NMUSAF), whereby the US loaned the Aircraft to the Town. Pursuant to the agreement, the Aircraft was relocated from Southern California Logistics Airport and mounted in a permanent display at Apple Valley Airport. In early 2006, the Town notified the NMUSAF of its desire to relinquish responsibility for the Aircraft. Concurrently, the Department expressed interest in taking over those responsibilities.
On October 31, 2006 (Item No. 8), the Board approved the Agreement for the loan of the Aircraft for the period commencing July 1, 2006 and ending March 31, 2007, and authorized the Chairman of the Board to execute annual renewals of the Agreement. For the period of April 1, 2007 through March 31, 2016, the Department presented each annual renewal to the Chairman for execution, as authorized by the Board. On March 1, 2016 (Item No. 79), the Board approved an annual renewal of the Agreement for the period of April 1, 2016 through March 31, 2017, and extended the authority of the Chairman of the Board to execute annual renewals of the Agreement for up to four successive one-year periods for a cumulative term not to exceed March 31, 2021. On March 23, 2021 (Item No. 66), the Board approved an annual renewal for the period of April 1, 2021 through March 31, 2022, and extended the authority of the Chairman of the Board to execute annual renewals of the Agreement for up to four successive one-year periods for a cumulative term not to exceed March 31, 2026. However, for the current renewal, commencing April 1, 2022, NMUSAF has changed the renewal period from one year to two years, which requires the Department to return to the Board for approval of the Agreement.
The Agreement includes the following terms that differ from CSA 60’s standard terms:
• The County standard contract term requires that the contractor agree to indemnify CSA 60 in accordance with County Policy 11-07.
• Rather than the US indemnifying CSA 60, the Agreement requires CSA 60 to indemnify, defend, and hold the US harmless for claims arising out of personal injuries, death, or property damage caused by the possession and/or use of the Aircraft.
• Potential Impact: By agreeing to indemnify the US, the CSA could be contractually waiving the protection of sovereign immunity. Claims that may otherwise be barred against the CSA time-limited, or expense-limited could be brought against the US without such limitations and the CSA would be responsible to defend and reimburse the US for costs, expenses, and damages, which could exceed the total contract amount.
The Department recommends approval of the Agreement with US, including the non-standard terms, given the public benefit of the ongoing display of the F-86 “Beauteous Butch” and its historical relationship to Apple Valley Airport.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, 387-5455) on March 4, 2022; Risk Management (Victor Tordesillas, Director, 386-8621) on March 8, 2022; Finance (Elias Duenas, Administrative Analyst, 387-4052) on March 4, 2022; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on March 4, 2022.