2011-12-06 Packetr
CITY OF ALAMEDA CALIFORNIA
SPECIAL JOINT MEETING OF THE CITY COUNCI
ALAMEDA REUSE AND REDEVELOPMENT AUTHOITY (ARRA)_,
AND COMMUNITY IMPROVEMENT COMMISSION (CIC
TUESDAY DECEMBER 6, 2011 6:00 P.M.
Location,: Cit Council Chambers Conference Room, Cit Hall, corner of Santa Clara
Avenue and Oak Street
A.qenda.
1. Roll Call Cit Council, ARRA, CIC
2. Public Comment on A Items Onl
An wishin to address the Council/Board/Commission on a items
onl ma speak for a maximum of 3 minutes per item
3. Adjournment to Closed Session to consider:
City Councill. ARRA.... CIC
3-A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (54956-9)
Name of case,- SCC Alameda Point, LLC, et al v. Cit of Alameda et al, U.S,
District Court, case number CV 10-5178
Cit Council
3-13. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION
Si exposure to liti pursuant to subdivision (b) of Section 54956.9
Number of cases One
4. Announcement of Action Taken in Closed Session, if an
5. Ad Cit Council, ARRA, CIC
Marie L. Gilmore, Ma
Chair, ARRA and CIC
r
Irk
f r 2
CITY OF ALAMEDA •CALIFORNIA
IF YOU WISH TO ADDRESS THE COUNCIL
1. Please file a speaker's slip with the Assistant City Clerk and
upon recognition by the Mayor, approach the podium and state
your name; speakers are limited to three (3) minutes per item
2. Lengthy testimony should be submitted in writing and only a
summary of pertinent points presented verbally
3. Applause and demonstration are prohibited during Council
meetings
TUESDAY DECEMBER 6 2011 -7:00 P.M.
AGENDA REGULAR MEETING OF THE CITY COUNCIL
[Note: Regular Council Meeting convenes at 7:00 pm, City Hall, Council Chambers,
corner of Santa Clara Avenue and oak Street]
The Order of Business for City Council Meeting is as follows:
1. Roll Call
2. Agenda Changes
3. Proclamations, Special Orders of the Day and Announcements
4. Oral Communications, Non Agenda (Public Comment)
5. Consent Calendar
6. Regular Agenda Items
7. City Manager Communications
8. Oral Communications, Non Agenda (Public Comment)
9. Council Referrals
10. Council Communications (Communications from Council)
11. Adjournment
Public Participation
Anyone wishing to address the Council on agenda items or business introduced by
Councilmembers may speak for a maximum of 3 minutes per agenda item when the
subject is before Council. Please file a speaker's slip with the Assistant City Clerk if you
wish to address the City Council.
SPECIAL JOINT MEETING OF THE CITY COUNCIL, ALAMEDA REUSE 0.00 P.M.
AND REDEVELOPMENT AUTHORITY, AND COMMUNITY IMPROVEMENT
COMMISSION, COUNCIL CHAMBERS CONFERENCE ROOM
Separate Agenda (Closed Session)
PLEDGE OF ALLEGIANCE
1. ROLL CALL City council
2. AGENDA CHANGES
3. PROCLAMATIONS SPECIAL ORDERS OF THE DAY ANNOUNCEMENTS
3 -A. Update Regarding the Activities of the City's America's Cup Ad Hoc Committee.
(Economic Development)
4. ORAL COMMUNICATIONS NON AGENDA (Public Comment)
A limited number of speakers may address the council in regard to any matter
over which the Council has jurisdiction or of which it may take cognizance that is
not on the agenda; this section is limited to 15 minutes; additional public
comment will be addressed under Section 8
5. CONSENT CALENDAR
Consent calendar items are considered routine and will be enacted, approved or
adopted by one motion unless a request for removal for discussion or
explanation is received from the Council or a member of the public
5--A. Minutes of the Special and Regular city council Meetings held on November 1,
2011, and Special Joint city council and Alameda Reuse and Redevelopment
Authority Meeting held on November 2, 2011. (City Clerk)
5 -B. Bills for Ratification. (Finance)
5 -C. Recommendation to Accept the Work of Gallagher and Burk, Inc. for Otis Drive
Rehabilitation, No. P.W. 08- 10 -21. (Public Works)
5 -D. Recommendation: to Accept the Work of Gallagher and Burk, Inc. for the Repair
and Resurfacing of certain Streets, Phase 30, P.W. 10- 10 -26. (Public Works)
5 -E. Recommendation to Accept the Work of Gallagher and Burk, Inc. for the Parking
Rehabilitation of the Main Street and Harbor Bay Ferry Terminals, No. P.W. Q5-
11 -14. (PublicWorks)
5 -F. Recommendation to Accept the Work of Power Engineering for the Installation of
Mechanical Trash Racks at Stormwater Pump Stations, No. P.W. 08- 09 -23.
(Public Works)
5 -G. Adoption of Resolution of Intention to Approve an Amendment to the contract
Between the Board of Administration California Public Employees' Retirement
System and the City council of the city of Alameda to Include Provisions
Pursuant to Government Code 20616 "Cost sharing" for Local Police Members
and for Local Fire Members. (Human Resources)
6. REGULAR AGENDA ITEMS
6 -A. Recommendation to Authorize the City Manager to Execute a Lease Agreement
with the Friends of the Alameda Animal Shelter for the Operation of the Alameda
Animal Shelter. (City Manager /Police)
6 -B. Recommendation to Approve Removal of Six Myoporum Trees Along 1
Clubhouse Memorial Road and Replace with Yellow Trumpet Mine, New Zealand
Flax, and Santa Cruz Island Buckwheat, Appropriate $637,000 in Sewer
Enterprise Funds, and Award a Contract in the Amount of $1,262,800, Including
Contingencies, to Mountain Cascade, Inc. for the Upgrade of the City of Alameda
Sewer Pump Stations, Bay Farm Island Pump Station Rehabilitation, No. P.W.
12- 10 -35. (Public Works)
6 -C. Receive an Operational Update on the Fire Department's Senior Safety and
Commercial Inspection Programs. (Fire)
7. CITY MANAGER COMMUNICATIONS (Communications from City Manager)
8. ORAL COMMUNICATIONS, NON AGENDA (Public Comment)
Any person may address the Council in regard to any matter over which the
Council has jurisdiction or of which it may take cognizance that is not on the
agenda; speakers not called under Item 4 may address the Council at this time
0. COUNCIL REFERRALS
Matters placed on the agenda by a Councilrnember may be acted upon or
scheduled as a future agenda item
10. COUNCIL COMMUNICATIONS (Communications from Council)
Councilmernbers can address any matter, including reporting on any
Conferences or meetings attended
ADJOURNMENT City Council
Materials related to an item on the agenda are available for public inspection in the
City clerk's office, city bail, Room 380, during normal business hours
Sign language interpreters will be available on request. Please contact the city clerk
at 747 -4800 or TDD number 522 -7538 at least 72 hours prior to the Meeting to
request an interpreter
Equipment for the hearing impaired is available for public use. For assistance,
please contact the city clerk at 747 -4800 or TDD number 522 --7538 either prior to,
or at, the council Meeting
Accessible seating for persons with disabilities, including those using wheelchairs, is
available
a Minutes of the meeting available in enlarged print
0 Audio Tapes of the meeting are available upon request
Please contact the city clerk. at 747 -4800 or TDD number 522 -7538 at least 48
hours prior to the meeting to request agenda materials in an alternative format, or
any other reasonable accommodation that may be necessary to participate in and
enjoy the benefits of the meeting
CITY of ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: John A. Russo
City Manager
Date: December 6, 2 1
Re: Update Regarding the Activities of the City's America's cup Ad Hoc
Committee
At its June 2, 2011 meeting, the City Council formally supported a new committee of
Alameda's business and maritime experts to help. identify effective strategies ..to ensure
Alameda's participation in the 34 America's Cup (AC34). The AC34 includes .the following high
profile events:
The 2011 -2012 AC. World series starting in A,u gust 2D 12 in San. Francisco—This is
a new, annual regatta at various global venues. The AC World Series features 45 -foot
catamarans designed for both speed and tight, tactical. racing.
10 The Louis W ttpn Cup .July 4 to September 1, 2013—A field of international teams
will compete for the right to race against the oracle Team, the. Defender of the America's
Cup.
America's cup Finals September 7 to 22,.2013—A. first -to -win -five (best of nine)
series will match the ginner of.the Louis Vuitton Cup against the oracle Racing Team for
the trophy.
The city's America's cup Ad Hoc committee has been tasked with capitalizing on the maritime
tourism and industry surrounding the AC34. to attract customers to Alameda businesses, expand
Alameda's vibrant maritime community, and improve Ala neda's .infrastr.uc u.re and appeal as a
tourist destination. The. committee has held six meetings in the last four months and has formed
subcommittees on promotion, transportation, housing, racing syndicates, and events.
The city is working closely with Committee. members in the following areas:
ehsites. committee member Jack Boeger has. created. an independent website for
local Ac34 related nears, with an Alameda maritime business directory, interactive
maps, and other relevant information The City has
added an Ac34 page to its website with links to alamedawaterfront.com and regional
resources.
Cit Counc[
A Item #3-A
Honorable Mayor and
Members of the City Council
December 2011
Page 2 of 3
speakers Bureau. The Committee is creating a speakers bureau to make. presentations
with a City representative to local businesses and civic organisations. The. Committee
and the City are working together to prepare a script, PowerPoint presentation, and
handout materials and has begun to schedule speaking engagements.
Collateral materials. The City created an Alameda Point brochure advertising the large
warehouse and water spaces available to accommodate AC34- related uses, such as for
yacht owners, boat equipment storage, maintenance .and repair shop purposes (Exhibit
1). A Committee member circulated the brochure to major. contacts while. attending the
recent AC world series events in San Diego. The City will be working with the
Committee to develop an informational pamphlet to accompany Committee
presentations.
Meeting with major, local commercial property owners. The City has met with
Legacy Partners, Catellus, and other major property owners to identify potential
opportunities related to AC34.
Coordination with regional agencies and local governments. The Committee has
net with representatives from the City of San Francisco, America's Cup Event Authority,
Metropolitan Transportation Commission, and the U.S. Coast Guard. In addition, the City
is working with the cities of Oakland, Berkeley, and Emeryville and included them in the
November meeting.
Coordination with the America's Cup Event Authority (ACEA). The America's .cup
event organizers have created a business portal America's Cup Business Connect
that will serve as a focal point for announcing business and contracting opportunities.
The City has promoted the link (http to local businesses
so they may register for the online business. directory and find out about. AC. business
opportunities. As the AC34 events approach, the ACEA will be working with local
marinas to create a website directory, similar to hotels.com, of available slips for boating
tourists.
Communication with racing syndicates. The Committee and City are in contact with
racing syndicates to explore opportunities to locate their facilities, events, and team
operations in Alameda.
FINANCIAL IMPACT
There have been no direct costs for these efforts. staff time is funded by the Community
Development Department's existing personnel budget. PM Realty Croup, the leasing and
property management contractor for Alameda Point, produced the Alameda Point brochure at
no charge.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Economic Development Strategic, Plan (revised in 2008):
Strategy #1 Create Industrial and office Jobs, contains the initiative to "support the
development of maritime industries in Alameda."
Honorable Mayor and
Members of the city council
December 6, 2011
Page 3 of 3
Strategy 3 Business Travel Market and Limited Impact Tourist Attractions, contains the
initiative to "market Alameda as a visitor destination."
This report is for informational and discussion purposes only.
Respectfully submitted,
VIA
Lori Taylor
Community Development Director
By:
Eric Fonstein
Development Manager
Exhibit:
1. Alameda Point Brochure
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UNAPPROVED
MINUTES OF THE SPECIAL CITY COUNCIL MEE TING
TUESDAY- NOVEMBER 1 2011- -6 :30 P.M.
Mayor Gilmore convened the meeting at 6:30 p.m.
Roll Call Present: Councilmernbers Bonta, del -laan, Johnson, Tarn and Mayor
Gilmore 5.
Absent: None.
The meeting was adjourned to closed session to consider:
-516 Liability Claims (54956.95) Workers' Compensation Claim; Claimant:
Sean McMenamin; Agency Claimed Against: City of Alameda.
-517 Conference with Legal Counsel Existing Litigation (54956.9); Name of Case:
Donald Sipple, et al v. City of Alameda, et al Los Angeles County Superior Court Case
Number: BC4622704.
Following the closed session, the meeting was reconvened and Mayor Gilmore
announced that regarding Workers' Compensation Claim, Council provided direction
toward settlement of the claim; and regarding Existing Litigation, Council provided
direction.
Adjournment
Them being no further business, Mayor Gilmore adjourned the special meeting at 7 :25
p. M.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown Act.
Special Meeting
Alameda City Council
November 1, 2011
MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- NOVEMBER 2011- -7:00 P.M,
Mayor Gilmore convened the meeting at 7:31 p.m. Councilmember Tam led the Pledge
of Allegiance.
ROLL CALL Present: Councilmembers Bonta, deHaan, Johnson, Tara and
(Mayor Gilmore 5.
Absent: None.
AGENDA CHANGES
-518 Mayor Gilmore announced that the Resolution Proclaiming that Any open
Space Eventually created from the Alameda Belt Line Property be Named the "Jean
Sweeney open Space Preserve" [paragraph number 11-519 j would b.e addressed first
and the certificates of Appreciation [paragraph number 11-5201 would be addressed on
November 15, 2011.
REGULAR AGENDA ITEM[
11-519 Resolution No. 14631 "Proclaiming that Any open Space Eventually created
from the Alameda Belt Line Property be Named the "Jean Sweeney open Space
Preserve" and Naming November 1, 2011 as Jean Sweeney Day in the City of
Alameda." Adopted
Mayor Gilmore read the resolution.
Proponents Michael John Torrey, Alameda; former Councilmembe Lil Arnerich,
Alameda (submitted correspondence); Norma Arnerich, Alameda; James Leach, Global
Perspectives; Lorre Zuppan, Alameda Rotary; and Gretchen Lipow, Alameda (submitted
drawing).
Councilrrember Tara moved adoption of the resolution.
'Mice Mayor Bonta seconded the motion, which carried by unanimous voice vote 5.
Jinn Sweeney expressed his appreciation.
PROCLAMATIONS SPECIAL ORDERS OF THE DAY ANNOUNCEMENTS
-520 Presentation of, Certificates of Appreciation to the Mayor's Fourth of July
Parade committee Members. Continued to November 15, 2011.
-521 Proclamation Declaring November 5, 2011 as customer Appreciation Day in
Regular Meeting
Alameda City council
November 1, 2011
the Park street Business District.
Mayor Gilmore read and presented the proclamation to Vicky Lapp, Bead Inspirations,
and Kate Pryor, Tucker's Ice Cream.
(11 -522) Public Utilities Board (PUB) Update on Alameda Municipal Power (AMP)
Strategic Issues.
Greg Hamm, PLEB President, gave a brief presentation.
The City Manager stated that he is impressed with AMP's and the PUB's flexibility and
willingness to listen to public concerns.
Vice Mayor Bonta thanked the PUB for the outstanding work.
Mayor Gilmore stated that she has the utmost admiration for complexities involved in
running a utility; thanked the PUB for steering AMP in a direction that the City can be
proud of moving forward.
ORAL COMMUNICATIONS NON- AGENDA
(11 -523) Scott Mathieson, Alameda, discussed the School District budget and salaries.
Councilmember Johnson left the dais at 5 :99 p.m. and returned at 8:10 p.m.
-524 Mary Anderson, Alameda, discussed the proposed golf land swap.
(11 -525) Michael Harris, Alameda, discussed trees in the Park street Business District.
Mayor Gilmore noted a meeting would be held on November 9, 2011.
(11-526) Joseph Cloren, Alameda, read and submitted comments and used his time as
a moment of silence for Raymond Zack.
CONSENT CALENDAR
Mayor Gilmore announced that the minutes [paragraph no. 11 -5271 were removed from
the Consent Calendar for discussion.
Councilmember deHaan moved approval of the remainder of the Consent Calendar.
Councilmember Tara seconded the motion, which carried by unanimous voice vote 5
with the exception of the introduction of the ordinance [paragraph no. 11-5341, which
Vice Mayor Bonta recused himself from voting on due to his children attending the
Regular Meeting
Alameda City Council 2
November 1, 2011
preschool. [Items so enacted or adopted are indicated by an asterisk preceding the
paragraph number.]
(1 1-527) Minutes of the Regular City Council Meeting held on October 4, 2011 and the
Special City Council Meetings held on October 1 1 20 11.
Carol Gottstein, Alameda, discussed the October 11 7 241 1 minutes.
The City Clerk stated the revised minutes provided reflect the changes Ms. Gottstein
requested; Rosemary McNally's comments have been made part of.the record and will
be part of tonight's record because comments have been resubmitted tonight.
Councilmember deHaan stated Ms. McNally's information should be included in the
report, if accurate and discarded otherwise; questioned whether Mr. GrijaIva,
FireChiefs.corn.LLC, could provide feedback.
Vice Mayor Bonta stated the report is the report; the integrity of the report should remain
the same; community views or perspectives that may shed additional light on the report
could be added as part of the record; the report should not be amended.
Councilmember deHaan stated information was provide_ d but not verified; that. he would
like to receive feedback regarding the report.
Councilmember Tam stated concerns and data presented by Ms. McNally would be
made part of the record twice; Ms. Gottstein's comments have been. reflected in the
record; Councilmember deHaan is asking for something that is beyond the scope of the
agenda item.
Councilmember deHaan stated the report has omissions or incorrect data and has been
accepted.
Councilmember Tara stated the minutes reflect that the report was accepted; inquired
whether the minutes are inaccurate, to which Councilmember deHaan responded in the
negative.
The City Manager stated the issue is not agendized for discussion at this stage;
reopening the content of the report is not appropriate; that .he listened ver losel to
y
Ms. McNally's questions; he thought many of the questions were rhetorical; he
specifically asked Mr. Grijalva what the impact might have been had Ms. McNally data
[on water temperature] been correct; he would retain Mr. Grijalva to do. additional work if
Council instructs him to readdress specific questions; he does not believe that is
necessary; however, it would be Council's decision; reopening the report would require
noticing.
Councilmember Tam moved approval of the minutes with Ms. Gottstein's revisions.
Regular Meeting
Alameda City Council 3
November 1, 2011
Councilmember Johnson seconded the motion, which carried by unanimous voice vote
—5.
*11-528 Ratified bills in the amount of $2,236,355.23.
(*11 -529 Recommendation to Accept the Annual Investment Report for Fiscal Year
2010 -2011. Accepted.
*11-530 Recommendation to Approve a one -Year Contract with ECS Imaging, Inc. in
the Amount Not to Exceed $32,859 for Laserfiche Services and Maintenance. Accepted.
*11-531 Resolution No. 14632 "Approving the Third Amended and Restated Northern
California Power Agency Metered Subsystem Aggregator Agreement." Adopted.
*11-532 Resolution No. 14633 "Authorizing the City Manager to Submit .an Application
to the Metropolitan Transportation Commission for the Allocation of $2.5 Million in
Funding from the 2012 Regional Transportation Improvement Program for the
Broadway /Jackson Project and to Execute All Necessary Documents." Adopted.
*11-533 Resolution No. 14634 "Approving Final Parcel Map No. 10006 (2601 -2901
Harbor Bay Parkway." Adopted.
*11-534) introduction of ordinance Authorizing the Execution of Lease of Real.Property
Located at 1525 Bay Street Between City, as Lessor, and Karen Zimmerman and
Kenneth Edgerly, as Lessee, for operation of ABC Preschool. Introduced.
Note: Vice Mayor Bonta recused himself from voting on the item.
REGULAR AGENDA ITEMS
11-535) Introduction of ordinance Amending the City of Alameda Municipal Code by
Repealing Section 24 -5 (Smoking Control) of Section XXIV (Public Health) and By
Adding Section 24 -11, (smoking Prohibitions in Places of Employment and Public
Unenclosed Places), and Section 24 -12 (Smoking Prohibitions in Multi -Use Housing).
Introduced.
The Senior Management Analyst gave a Power Point presentation.
Councilmember Johnson moved approval of limiting public speaker comments to two
minutes.
Councilmember Tana seconded the motion, which carried by unanimous voice vote 5.
Proponents Amanda Khoo, Youth Advisory Commission (YAC) (submitted comments);
Danielle McGuinness, YAC; Carrie Huang, YAC (submitted comments); Jeanette Mei,
Alameda; Array Raffle, Alameda (submitted comments); Michael .John Torrey, Alameda;
Regular Meeting
Alameda City Council 4
November 1, 2011
Beth loch, Alameda; Gayle Thomas, Alameda; Joyce carol, Alameda; Janice Louie,
Alameda county Public Health Department; Rosalyn Moya, Alameda; Nayeli Cerpas,
Alameda; Zalman Sher, Alameda (submitted photo).
Urged revision to prohibit smoking in condominiums: Judith Fruge, Alameda (submitted
comments); Michael Robles Wong, Alameda; Adrian Blakely, Alameda; Bruce Fiedler,
Dublin (submitted comments); and Serena Chen, American Lung Association.
Urged revision to exclude e -ci arettes: Andrew Webre, Berkeley (submitted comments);
Chris Gaskill, Alameda; and Geoffrey Braithwaite, Tasty vapor.
Urged revision to allow smoking at bar patios: Joe Churchward, Alameda; Dan Nichols,
Alameda; Samantha Beran, Alameda (submitted petition); Robb Ratto, Park. Street
Business Association (PSBR); Jon Spangler, Alameda; and Jake Thompson, Alameda.
Urged revision to allow smoking cannabis: Lauren Vasquez, Alameda.
Urged revision to allow smoking--in rental units. Ron Salsig, Alameda.
opponent Lola Brown, Alameda.
Councilmember Johnson stated that she strongly encourages including condominiums;
most condominiums are old and do n -ot have good ventilation systems; second units
and multi -unit structures should be included; questioned why the proposed ordinance
would not apply to beaches; stated some type of exception should be given for outdoor
seating in back areas of bars; requested further information on electronic cigarettes.
The Senior Management Analyst stated the Federal Drug Administration (FDA)
regulates electronic cigarettes like tobacco; people use electronic cigarettes to try to
stop smoking; various groups are recommending prohibition of electronic cigarettes.
Councilmember Johnson inquired whether people would not be able to use electronic
cigarettes in apartments, to which the Senior Management Analyst responded in the
affirmative.
Councilmember Johnson stated people should be able to use electronic cigarettes in
apartments if it helps them quit smoking.
The Senior Management Analyst stated that the FDA has determined that electronic
cigarettes should be -regulated like tobacco.
Mayor Gilmore inquired how electronic cigarettes would be regulated in apartments if no
one can smell or see anything.
The Senior Management Analyst responded electronic cigarettes have toxicity but are
considered lower risk than smoking.
Regular Meeting
Alameda City Council 5
November 1, 2011
Councilmember Johnson inquired whether there is any evidence that electronic
cigarettes permeate into other units.
The Assistant City Manager responded staff has relied on subject matter experts and
model ordinances through the Technical Assistance Legal Center which is funded by
the California Department of Health Services and other groups; staff is not as wedded to
the [electronic cigarette] provision as other provisions; removing electronic cig arettes
from the proposed ordinance would not receive a lot of argument.
The Acting City Attorney stated the issue is a policy call.
Councilmember Johnson suggested removing electronic cigarettes from the ordinance
until more information is received.
Vice Mayor Bonta stated that he is looking at the ordinance from a public health
prospective; more information is needed regarding impacts before a decision is ..made
on electronic cigarettes.
The Assistant City Manager stated staff would do more research on the matter.
In response to Councilmember Johnson's initial comments, the Senior Management
Analyst stated the second units were excluded to be consistent with Odividual propert
y
rights; the housing portion of the ordinance applies to rental complexes defined as multi-
unit residences where 51 or more of the units are owned by the same landlord
Coucilmember Johnson inquired whether other jurisdictions have applied similar bans,
to which the Senior Management Analyst responded some have.
Councilmember Johnson inquired whether there have been lawsuits or challenges, to
which the Senior Management Analyst responded in the negative.
Councilmember Johnson stated the same rules should apply if a second unit is rented
out.
The Assistant City Manager stated that nothing would preclude an owner of a single
family home with an in -law unit from making the in -law unit smoke free.
In response to Councilmember Johnson's Inquiry regarding addressing beaches in the
ordinance, the Senior Management Analyst stated that she did not do a lot of research
regarding beaches because the East Bay Regional Park District (EBRPD) regulates the
beaches.
Councilmember Johnson stated the City has agreements with EBR.PD; agreements
should be researched; the City owns the beaches.
Regular Meeting
Alameda City Council 6
November 1, 2011
The Assistant City Manager stated amendments could be brought back; Hirmosa Beach
just banned smoking.
Councilmember Johnson noted that she has never seen a police officer smoking on
duty [as referenced by a speaker].
Mayor Gilmore questioned whether EBRPD has a smoking policy.
The Senior Management Analyst stated that she would look Into the matter.
Councilmember deHaan stated there are beaches not under EBRPD
Mayor Gilmore stated Council is not trying to force people to quit smoking but is trying to
protect the public health and non smokers from second -hand smoke.
Councilmember deHaan stated drinking and smoking go together; that he is concerned
with prohibiting smoking in tavern outdoor patio areas; the housing portion needs .to be
more precise.
Mayor Gilmore inquired how many taverns are in town, to which Mr. Ratto responded
approximately 40 or 50.
The Senior Management Analyst stated Oakland does not have a prohibition for outdoor
patio areas; twelve neighboring cities have smoke free outdoor dining provisions; ten
neighboring cities have smoke free entryway provisions.
Mayor Gilmore stated a lot of back patio areas abut a street with just a fence separating
the smoking patio from the sidewalk; rear patios are often surrounded by residences
above the area; smoke drifts up and neighbors cannot open windows.
Councilmember Johnson stated the issue should be further explored; smokers would be
given the impression that they are not welcome in taverns; something needs .to be
crafted that would have the least impact on people who are not smoking,
Mayor Gilmore stated bars and taverns are unique; that she is doubtful that an
ordinance could be crafted that would fit all.
Brad wick, South Shore Shopping District General Manager, stated tavern owners
would take a direct hit; a lot of issues have been left on the table; suggested that the
matter be tabled for further discussion; stated the Shopping Center would incur
additional costs via signage and enforcement; the issue should be circulated within the
business community.
Councilmember deHaan stated employees smoke outside establishments; that he does
not like walking through smoke when patronizing the Shopping Center.
Regular Meeting
Alameda City Council 7
November 1, 2011
Mr. Wick stated that he has spoken to tenants regarding the matter; employees will not
walk Zoo yards to a common smoking area; that he cannot enforce something that he
does not have control over.
The Police Chief stated the ordinance would be complaint driven; that he has no desire
to be proactive in citing people; the ordinance would be self policing; the Police
Department would work with landlords, tenants, and business owners to help mediate
issues; the Police Department prioritizes calls on a one to four scale; smoking violations
would be a four.
Mayor Gilmore stated Police officers would not come into an establishment looking for
violations; complaints would come from residents, customers, and people affected by
sidewalk smoke or smoke coming over six -foot fence.
Vice Mayor Bonta inquired what the response would be if a Police officer is on patrol
and notices a smoking violation.
The Police Chief responded it would depend upon calls for service and how busy the
Police Department is; stated that he would expect a Police officer to request the
cigarette be put out.
Councilmember Johnson stated the Police Chief stated Police officers would try to
mediate complaints; the Police Department might receive numerous corn p lains for a
particular establishment; an ordinance should not be adopted that Council would not
want the Police Department to enforce.
The Police Chief stated a lot of discretion would be used; a Police officer would be
assigned to work with bar owners and residents; the Police Department would not
ignore a nuisance.
Councilmember Johnson stated the outdoor patio bar area needs further consideration.
Mayor Gilmore stated bar owners have been responsible and have worked well with the
Police Department; the ordinance could be changed if things do not work out.
Vice Mayor Bonta concurred with Councilmember Johnson regarding further
consideration for outdoor patio bar areas and electronic cigarettes; stated that he can
envision having certain specifications for outdoor patio bar areas so that public health
interests would be harmonized with business interests.
Mayor Gilmore stated each business is different; that she would be okay with having
some type of opt out permit system; businesses would need to meet certain criteria.
The Assistant City Manager stated staff could bring back San Francisco's hybrid
restriction for review.
Regular Meeting
Alameda City Council 8
November 1, 2011
Mayor Gilmore stated that she is not in favor of holding up the entire ordinance because
of one provision.
The Assistant City Manager suggested the [outdoor patio area] provision be brought
back later, to which Mayor Gilmore concurred.
Mayor Gilmore summarized that Council wants the tavern issue and electronic
cigarettes to carne back to Council and to have condominium restrictions added.
Councilmember Tara stated that she is troubled by comments regarding businesses not
being part of the process; she is supportive of including condominiums, reviewing
beaches, providing an opt out permit system to deal with tavern patios, and allowing
some flexibility for good business management through Police Department involvement.
Vice Mayor Bonta stated the ordinance should include existing condominiums; that he is
not in favor of the 10% opt out for apartments; the public nuisance component should
be included.
Mayor Gilmore stated Council could go forward with the ordinance tonight with changes
to electronic cigarettes, condominiums, beaches, and an opt out for bars and taverns;
the public nuisance issue and 10% opt out have not been discussed.
The Assistant City Manager inquired whether Council wants the non smoking provision
applied when condominiums turn over or straight across the board, to which Vice Mayor
Bonta and Councilmember Johnson responded across the board.
Councilmember Johnson stated that she is surprised that business associations are not
in attendance tonight; suggested seeking comments from the various business
associations.
The City Manager stated staff would contact business associations tomorrow and
remind there that there will be a second reading of the ordinance on November 15 h
The Assistant City Manager stated staff would not be able to address all issues
discussed because of the twelve -day noticing period; however, condominiums can be
included.
Mayor Gilmore inquired whether people are okay with putting in the public nuisance
definition, to which Councilmember Johnson stated that she has no objection.
The senior Management Analyst stated staff would need to review policy
considerations; including the public nuisance definition would be difficult.
Mayor Gilmore stated the public nuisance c definition could be brought back at a future
date.
Regular Meeting
Alameda City Council 9
November 1, 2011
In response to the Assistant City Manager's inquiry, council agreed to include public
events.
Councilrnember Tam stated that she is comfortable with the Police chief's statement
that the Police Department would do everything possible to mediate violations.
The Assistant City Manager noted the ordinance is silent on medical marijuana.
Vice Mayor Bonta inquired whether a decision has been made on a single family home
with an attached rental, to which Mayor Gilmore responded the issue should be left as
proposed by staff.
Vice Mayor Bonta stated single family homes with attached rentals share galls.
The City Manager stated a person can chose or not chose to rent; that he takes
responsibility for staff's viewpoint on ownership situations.
The senior Management Analyst stated much of the language pertaining to common
interest complexes has been drafted so that homeowner associations would have to
take a proactive approach for a 100% smoke free unit; typically, the Covenants,
Conditions, and Restrictions (CC&Rs) address the percentage for smoke free unfits.
The city Manager stated that he understands that council wants to cover all
condominiums and apartments; the issue at stake is what to do about the shared wall
owner- occupied duplex; inconsistencies would exist unless everything is banned from
smoking.
Mayor Gilmore stated the issue could go forward as written and could be tweaked down
the line.
Councilrrember Johnson stated that she is willing to go forward with the ordinance; the
distinction would be if a homeowner decides to have a second unit with a shared wall.
Mayor Gilmore stated a homeowner could make the choice to smoke or not and a
tenant could choose to rent or not.
The Assistant city Manager summarized direction as: take out provisions related to
outdoor patios and electronic cigarettes; add existing condominiums across the .board;
review beaches and bring the matter back; study the public nuisance .issue and p rovide
more information at a future time; reject the 10% opt out for apartments; keep in the
public events language; leave single family in -law units as is and address the matter in
the future if necessary.
Vice Mayor Bonta moved introduction of the ordinance with amendments.
Councilmember deHaan seconded the motion.
Regular Meeting
Alameda City Council 10
November 1, 2011
Under discussion, Vice Mayor Bonta inquired how the 10% exception works for hotels.
The Senior Management Analyst responded smoking areas are placed at a certain
location; stated hotels could choose to be 100% smoke free.
In response to Vice Mayor Bonta's inquiry, the Senior Management Analyst stated
Belmont's ordinance has more to do with housing and outdoor air.
On the call for the question, the motion carried by unanimous voice vote 5.
11 -536 ordinance No. 3036 "Amending the Alameda Municipal code by Adding
Article Vlll (Sunshine ordinance) to chapter II (Administration) Establishing Local
Standards to Ensure Public Access to Public Meetings and Public Records." Finally
passed.
Proponents John Knox white, Alameda; and Jon Spangler, Alameda.
Mayor Gilmore stated having a redline document is very helpful.
The Acting City Attorney stated that she redlined the first reading of the ordinance
because she wanted the public to see what the Sunshine Task Force presented to the
Council versus ghat staff suggested as changes; changes from the first reading and
second reading could be redlined if Council wishes; typically, ordinances are short and
changes are not highlighted from the first and second reading.
In response to Mayor Gilmore's comments, the City Manager stated staff could provide
redline changes to existing ordinances or redline staff's changes in ghat is introduced to
Council.
Mayor Gilmore stated redlining would be good for long ordinances.
Vice Mayor Bonta stated redlining would be good if there are changes between the first
and second reading; inquired whether there could have been a redline version that
would have shown the changes.
The Acting City Attorney responded in the affirmative; highlighted the following changes.
Section 2 -91.5 matches the language of the ordinance with the new practice alread y in
place for twelve day noticing for City council meetings; Section 2-91.7 and 2 -91.1 o
provide harmony between the ordinance and Brown Act; Section 2 -91.7 change s the
closed session title of conference with Negotiator- collective Bargaining to conference
with Labor Negotiators; Section 2 -91.9 includes cost recovery for records duplication;
Section 2-91.13 addresses end time for meetings; Section 2 -92 includes electronic
formatting language; Section 2 -92.8 includes individual employees salaries as non-
exempt information; Section 2 -92.10 broadens ghat types of records must be
immediately disclosed; Section 2 -93.2 clalrifies that complaints would be resolved at the
Regular Meeting
Alameda City Council
November 1, 2011
Open Government Commission level and deletes references to appeals from the open
Government Commission; Section 2 -98.8 specifies that fines would go toward records
retention technology and/or Sunshine ordinance training and education.
Councilmember Tam moved final passage of the ordinance.
Councilmember Tam thanked everyone for all the hard work; stated underlying
everything is the duty to provide information to the public.
Vice Mayor Bonta seconded the motion, which carried by unanimous voice vote 5.
CITY MANAGER COMMUNICATIONS
(11 -537) The City Manager announced the website survey ends November 10, 2011;
urged everyone to email comments to him; a Park Street tree meeting would be held on
November 9 changes to future noticing and types of trees will be discussed; a g olf
website has been created and appraisals have been posted.
ORAL COMMUNICATIONS NON AGENDA
(11 -538) John Knox White, Alameda, suggested Council form a public input policy.
(11- 539) Robb Ratto, PSBR, stated that he and the tavern owners present would like to
participate in any follow up on the smoking regulations.
(11 -540) Jon Spangler, Alameda, discussed air filtration systems.
COUNCIL REFERRALS
None.
COUNCIL COMMUNICATIONS
(11 -541) Councilmember deHaan stated the City should address water temperature
distinction [in the Grijalva report]
Mayor Gilmore noted the Council cannot take action under Council Communications.
(11 -542) Councilmember deHaan stated the campaign reform ordinance should be
brought to Council
(11 -543) Councilmember Tam requested an off agenda report on existing outreach
policies to determine whether a Council Referral on the matter would be needed.
-544 Vice Mayor Bonta stated that he would host two Town Hall meetings regarding
the golf course and land swap on Thursday, November 15, and Monday, November 28.
Regular Meeting
Alameda City Council 12
November 1, 2011
ADJOURNMENT
There being no further business, Mayor OiImore adjourned the meeting at 11:12 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown Act.
Regular Meeting
Alameda City Council 13
November 1, 2011
i
MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND
ALAM E DA REUSE AND REDEVELOPMENT AUTHORITY (ARRA M EETING
WEDNESDAY NOVEMBER 2 201 1 6:00 P.M.
Mayor /Chair Gilmore convened the meeting at 6:00 p.m.
Roll Call Present: Councilmembers /Board Members Bonta, deHaan,
Johnson, Tam and Mayor /Chair Gilmore 5.
Absent: None.
The meeting was adjourned to Closed Session to consider:
(11- AR RA} Conference with Real Property Negotiator (54956.8); Property: Alameda
Point; Agency Negotiator: Jennifer Ott, Alameda Point Coo; Negotiating parties: ARRA
and University of California; Under Negotiations: Price and Terms of Payment.
(11 CCU, Conference with Legal Counsel Existing Litigation (54956.9); Name of case:
Gallant v, City of Alameda, Alameda County Superior Court; Case Number: RG
11590505.
(11- CC) Conference with Legal Counsel Existing Litigation (54956.9); Name of
case: Ka ler v. City of Alameda, Alameda County Superior Court; Case Number:
RG11570933.
Following the closed session, the meeting was reconvened and Mayor /Chair Gilmore
announced that regarding Propel the negotiator discussed issues of price and terms
of payment; regarding Gallant Council was briefed on the litigation; Council authorized
use of outside counsel above $35,000 to compensate counsel for responsive pleadings
discussed in closed session; and regarding Kapler, Council was provided an update on
the legal strategy in the lawsuit.
Adiournment
There being no further business, Mayor /Chair Gilmore adjourned the meeting at 7 :20
p. M.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown Act.
CITY of ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Fred Marsh
Controller
Date: November 23, 2011
Re: List of Warrants for Ratification
This is to certify that the claims listed on the attached check register and shown below have been approved
by the proper officials and, in my opinion, represent fair and just charges against the City in accordance with
their respective amounts as indicated thereon.
Check Numbers Amount
242507 243072 (Vendor Checks)
$1,609,206.55
V23317 V23479 (ACH Retiree Medical Benefit Reimbursements) $123,890,29
EFT1107 EFT1111 (Vendor Wire Transfers) $85,835.11
240833 242373 (Void Checks) ($259.00)
GRAND TOTAL
Respectfully submitted,
:24 dAaj—,"'
Controller
Council Warrants 12/06/11
$1,818,672.95
BILLS #5 -B
12/612011
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,O
CITY OF ALAM E DA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: John A. Russo
City Manager
Date: December 8, 2011
Re: Accept the Work of Gallagher and Burk, Inc. for Otis Drive Rehabilitation,
No. P.W. 08 -10 -21
On Marche 15, 2011, the city council adopted plans and specifications and authorized a
call for bids for Otis Drive rehabilitation, No. P.W. 08- 10 -21. On May .17, .201 '1, the City
Council awarded a contract in the amount of $1,373,000, including contingencies, to
Gallagher and Burk, Inc. for the project. The project repaired failed pavement areas
and added full width asphalt overlay to approximately one mile of. Otis Drive, from
Westl i n e Drive to Willow Street.
DISCUSSION
The project has been completed in accordance with the plans and specifications, and is
acceptable to the Public works Department. The final project cost, including extra work
orders, is $1,219,302.
FINANCIAL IMPACT
The funds for this project are budgeted in the Public Works Department's account for
Capital Improvement Program (91034) Otis Drive Rehabilitation project, with rnonies
from the Federal Surface Transportation Program funds (Fund 310), Proposition 42
(Fund 212 and the Citywide Development Fee (Fund 340). There is no impact to the
General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the. Municipal code. This project assisted in meeting the
goals of the city of Alameda's Local .Action Plan for climate Protection, by requiring
recycling of 80% of all construction waste.
City Council
Agenda horn -C
1 -1
Honorable Mayor and
Members of the city Council
ENVIRONMENTAL. REVIEW
December 0, 2011
Page 2 of 2
In accordance with the California Environmental Quality Act (CEQA), this project is
Categorically Exempt under CEQA Guidelines Section tin Existing g Facilities. In
accordance with the National Environmental Protection Act (NEPA), Caltrans has
determined that the project is categorically Excluded under 23 CFR 771.117(d), Activity
d(1) Highway Rehabilitation.
RECOMMENDATION
Accept the work of Gallagher and Burk, Inc. for Otis Drive rehabilitation, No. P.W. 08-
10 --21.
Respectfully submitted,
Matthew T. Nacleno
Public Works Director
Approved as to funds and account,
Fred Marsh
Controller
CITY OF ALAN E DA
Memorandum
To Honorable Mayor and
Members of the City Council
From: John A. Russo
City Manager
Date: December 6, 2011
Re: Accept the Work of Gallagher and Burk, Inc., for the Repair and
Resurfacing of Certain Streets, Phase 30 No. P.W. 10 -10 -20
BACKGROUND
On April 5, 2011, the City Council adopted plans and specifications, and autho.riz.ed .a
call for bids, for the repair and resurfacing of certain streets, phase 3.0, Igo. P.W. .1 0 -10-
20. On June 7, 2011, the City Council awarded a contract in the amount of $598,000,
including contingencies, to Gallagher and Burk, Inc. for the project. The project
reconstru cted selected pavement failure areas, crack sealed. two and one -half miles. of
streets, and resurfaced Parking Lot A on Park Avenue. Robert Davey Jr. Drive from
Island Drive to Packet Landing Road was cold planed and overlaid with hot mix asphalt.
The remaining six smiles of streets were slurry sealed.
DISCUSSION
The project has .been completed in accordance with the plans and specifications and is
acceptable to the Public works Department. The final project cost, including extra work
orders, is $522,821.
FINANCIAL IMPACT
The funds for this project are budgeted in the Public Works Department's account for
Capital Improvement Program (9820130) repair and resurfacing of certain streets,
Phase 30 project, with monies from the Citywide Development Fees (Fund. 34 the
Parking Meter Fund (for Parking Lot A) (Fund 224), and the Sewer Fund :(Fund 602).
There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code. This project assisted in
meeting the goals of the City of Alameda's Local Action Plan for Climate Protection, by
requiring recycling of 80% of all construction waste.
Cit Counc-
A Item #5"
Honorable Ma and
Members of the Cit Council
ENVIRONMENTAL REVIEW
December 6 2011
Pa 2 of 2
In accordance with the California Environmental Qualit Act (CEQA this project is
Cate Exempt under CEQA Guidelines Section 15301 (c), Existin Facilities.
1619921 1 i 111 g51111111111 1 1 Om
Accept the work of Galla and Burk, Inc., for the repair and resurfacin of certain
streets, Phase 30, No. P.W. 10-10-26.
Respectfull submitted,
Matthew T. Naclerioap
P u. V
Approved as to funds and account,
K7
Y zv�
Fred Marsh
Controller
CITY of A.L.AMEDA
Memorandum
To: honorable Mayor and
Members of the City Council
From: John A. Russo
City Manager
Date: December 0, 2011
Re: Accept the Work of Gallagher and Burk, Inc. for Parking Rehabilitation of
the Main Street and harbor Bav Ferry Terminals No. P.W. 05 -11 -14
BACKGROUND
On June 21, 2011, the City council adopted plans and specifications, and .authorized a
call for bids, for parking rehabilitation of the Main street and harbor Bay ferry. t�errninals,
No. P.W. 05- 11 -14. On July 19, 2011, the city Council awarded a..co.otract in .the
amount of $432,000, including contingencies, to Gallagher and. Burk, Inc., for the
project. The project repaired failed pavement areas; resurfaced the harbor Bay parking
lot with parking lot sea[ coat; and resurfaced the Main street parking lot .with hat mix
asphalt.
DISCUSSION
The project has been completed in accordance with the plans and specifications, and.is
acceptable to the Public Works Department. The final project cost, including extra work
orders, is $401,932.
FINANCIAL IMPACT
The funds for this project are budgeted in the Public Works Departrne.nt's account for
Capital Improvement Program (91030). Pursuant to section 11.7 of the Ferry service
Operations Transfer Agreement, the water Emergency Transportation Authority
(WETA) will reimburse the City the cast of approved capital projects with.i 30. calendar
days after the city presents a progress payment invoice. There is no impact to the
General Fund.
MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal code. This project assisted in meeting the
goals of the City of Alameda's Local Action Plan for Climate Protection, by requiring
recycling of 80% of all construction waste.
Cit Council
A genda
12-
Honorable Mayor and
Members of the city Council
ENVIRONMENTAL REVIEW
December 0, 2011
Page 2 of 2
In accordance with the California Environmental Quality Act (CEQA), this project is
Categorically Exempt under CEQA Guidelines Section 15301 (c), Existing Facilities.
RECOMMENDATION
Accept the work of Gallagher and Burk, Inc. for the parking rehabilitation of the plain
Street and harbor Bay ferry terminals, No. P.W. 05- 11 -14.
Respectfully submitted,
m
Matthew T. Naclerio,,.
Public Works Director
BY,
Laurie Kozisek
Associate civil Engineer
Approved as to funds and account,
t. e000�
Fred Marsh
Controller
cc: Watchdog Committee (Ferry)
CITY OF AL,AMEDA
Memorandum
To: Honorable [Mayor and
Members of the City council W
From: John A. Russo
City Manager
Date: December 0, 2011
Re. Accept the Work of -Power Engineering contractors for the Installation of
Mechanical Trash Racks at Stormwater Pump Stations, No. P.W. 08-09
23
On September 15, 2009, the city council adopted plans and specifications and
authorized a call for bids for the installation of mechanical trash racks at stormwater
pump stations, No. P..W. 08- 09 -23. On November 17, 2009, the city Council awarded a
contract in the amount of $549,450, including contingencies, to Power Engineering
Contractors for the project. The project modified the existing storm drain structures at
the Main Street pump station and the Webster Street .pump station, and installed trash
racks and conveyor mechanisms.
DISCUSSION
The project has been completed in accordance with the plans and specifications, and is
acceptable to the Public Works Department. The final project cost, including extra work
orders, is $540,834.18.
FINANCIAL I M PACT
The funds for this project are budgeted in the Public Works Department's account for
Capital Improvement Program (90933), mechanical trash racks at storrnwater pump
stations project, with monies allocated through a $750,000 grant from the State Water
Resources Control Board and the Urban Runoff Fund (Fund 351). There is no impact to
the General Fund.
(MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE
T his action does not affect the Alameda Municipal code.
Cit Counc.
A Item
12- 6
Honorable Ma and
Members of the Cit Council
ENVIRONMENTAL REVIEW
December 6, 201
Pa 2 of 2
In accordance with the California Environmental Qualit Act (CEQA the Main Street
project is. Cate Exempt under CEQA Guidelines Sections. 15301 (b), Existin
Facilities, and 15301(f), Addition of Safet or Health Protection Device in Conjunction
with Existin Structures, Facilities or Mechanical E The Webster Street
project is Cate Exempt under CEQA Guideline Section 15303(d), New
Construction or Conversion of Small Structures.
RECOMMENDATION
Accept the work of Power En Contractors, for the installation of mechanical
trash racks at stormwater pump stations, No. P.W. 08-09-23.
Respectfull submitted,
Matthew T. Naclerio
Public Works Director
By,
77�1
Phi p Lee
Assistant En
Approved as to funds and account,
Fred Marsh
Controller
CITY of ALAMEDA,
[Memorandum
To: Honorable Mayor and
[Members of the City Council
From: John A. Russo
City Manager
Date: December 6, 201
Re: Adopt a Resolution of Intention to Approve an Amendment to the .Contract
Between the Board of Administration of the California Public. Emp loy ees
Retirement System and the City Council .of the City of Alameda .to. Include
Provisions Pursuant to Government .Code 20516 "Cost Sharing" for Local
Police Members and for Local Fire Members
I:IA[SJ: 3 T 1 J L U
At the City Council meeting on July 19, 2011, the City Council adopted Resolutions No.
14610 and 14611 approving the revised Memorandum of Understanding 9
between the Alameda Police officers Association (APOA) the :C ity of Alameda, for
the period of January 3, 2010, through June 29, 2013 and the revised Memorandum of
Understanding between the.Alameda Police Managers Association (APMA) and .the. Cit
of Alameda, for the period of February 28, 2010 through June 29, 2013.
At the City Council. meeting on June 21, 2011, the .City Council ado p ted Resolution Igo.
14575 approving the. revised. Memorandum of Understanding between the lnternational
Association of Firefighters, Local 689 (IAFF) a n d the City .of Alameda, for tie eri of
p
January 3, 2010, through June 29, 2013, and at the City Council meeting on Se te
p mber
20, 2011, the City Council adopted Resolution No. .14618 apprping the revised
Memorandum of Understanding between the Alameda Fire Mann er'lerlt Association
g.
(AFMA) and the City of Alameda, for the period .of February 23, 2010 through June 29,
2013.
The Retirement Plan section for each of. these MOUs establishes that the City shall
contract with CalPERS for variable Rate Cost Sharing of up. to t,e p ermanent cost
share of 5.057% under Government Code Section .20516(a based on the City °s
contract with CalPERS for the 3% 50 and one -Year Final Corm ensation optional
p
benefits for local fire and local police employees. The. permanent cast share is the
increased cost for Cal.PERS contract amendments that provide o tion
p al benefits jo
employees. CalPERS, through an actuarial valu at io has determined the cost to the
City of providing the 3% 50 and .the one Year Final. Compensation o p tionaI benefits
to be 5.057% amortized over 30 years. Therefore, employees can sham anywhere
from zero percent to the permanentiy established rnaxirr�u.m of 5.057%. The .amount of
the cost sharing has been established at 2% for the duration of the four safety OUs
y
City Council
Agenda item -G
2�m1
Honorable Mayor and December 8, 2011
Members of the City Council Page 2 of 3
thus increasing the current 9% employee contribution to an 11 contribution. This 11
contribution shall be in accordance with section 4'14(h )(2) of the Internal Revenue Code
whereby employee contributions shall be tax deferred and not subject to taxation until
the time of constructive receipt.
On September 21, 2011 City staff submitted to CaIPERS a request for a contract
amendment for local police and local fire employees. On October 24, 2011, CalPERS
issued the amendment documents and instructions.
DISCUSSION
This CalPERS contract amendment was a key provision of the negotiated agreements
between the City and the four sworn safety assoc.iations.. since. the MOUs-establish
that the provision is only in place through June .20, 2013, prompt action is necessary in
order for the City to achieve optimum financial advantage.
CalPERS requires that clearly defined procedures be followed for contact
amendments. The following steps are being taken. in order to complete the contract
amendment process:
The City Council must adopt a Resolution of.lntention.
Government Code Section ..20474 requires a secret ballot election by the
employees affected whenever the contract. is amended. to. change the
employees' rate of contribution. This election must be held for .each contract
group following the adoption of the Resolution of Intention, and prior to the
adoption of the ordinance to amend. the. CalPE.RS contract. The election is
scheduled to be conducted .between December 0, and December 21, 2011.
The Ordinance, which will be an Urgency ordinance, and a Cit y Council vote on
adoption, must occur. at least 20 days after the adoption -of the Resolution of
Intention. This Urgency Ordinance will be presented to the Cit Y Council for
adoption on January 3, 2012.
The effective date of the contract amendment must be the first day of a payroll
period and may not be earlier than the day following adoption of the ordinance.
The effective date is scheduled January 15, 2012,
FINANCIAL IMPACT
There is an estimated cost savings to the General Fund over the remaining life of the
four safety contracts of $285,900 for APOA, $43,500 for APMA, $282,500 for IAFF, and
$20,300 for AFMA, totaling $838,200.
Honorable Mayor and
Members of the City Council
RECOMMENDATION
December 0, 2011
Page 3.of 3
Adopt a Resolution of Intention to approve an amendment to the contract .between the
Board of Administration of the California Public Employees' Retirement. Sy stern and the
City Council of the City of Alameda to include provisions pursuant to Government Code
20510 "Cost sharing" for local police members and for local fire members.
Respectfully submitted,
Karen Willis
Human Resources Director
Approved as to funds and account,
Fred Marsh
Controller
CITY OF ALAMEDA RESOLUTION NO.
RESOLUTION OF INTENTION TO APPROVE...AN AMENDMENT. TO
CONTRACT BETWEEN THE BOARD OF ..ADMINISTRATION,
CALIFORNIA PUBLI EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL, CITY OF ALAMEDA
WHEREAS, the Public Emplo Retirement. Law. permit the
participation of public a a nd their emplo in the Public Emplo
Retirement S b the execution of a contract, and. sets forth: the
procedure .b whic said public a ma elect to sub themselves
and their emplo to amendments to said Law and
WHEREAS, one of the steps in the procedures to amend this:contract
is the adoption b the g overnin g bod of the public a of a resoluit.ion
g ivin g notice of its intention .to approve .an amendment to.said.contract, which
resolution shall contain a sum of the chan proposed in said contract,
and
WHEREAS, the followin is a statement of the proposed chan
To provide Section 20516 (Empl Sh Cost of Add itio nal.
Benefits) applicable to Section 21362.2 (3% 50 Full. formula
effective
March 11 2001 and Section 20042 One-Year Final Com
..pen
effective. December. 31, 1990 for local police me and Sectio.n ..2 136 2.2
(3% 50. Full.form.ula) effective Ma 5, 20.02 and.Section 20042 (One-Year.
Final Compensation) effective. December 31, 1990 fo r local.fire members.
The maximum permanent emplo cost sharin contributions are not. to
exceed 5.057%
NOW, THEREFORE, BE IT RESOLVED .that. the.cit Counci.1 of.the
Cit of Alameda does hereb g ive notice of intention to. a pprove an
amendment to the contract between Cit of Alameda and the Board of
Administration of the .Public. Emplo Retirement S a cop of said
amendment bein attached h as an "Exhibit" and b this referenc e
made a part hereof.
Resolution #5-G CC
12-06-11
California
Public Emplo Retirement S
C i t C.Ou 1'.1
Cit of.:.Alam.eda
The Board of Administration, California. Public Emplo Retirement
S
hereinafter referred. to as Board, and the bod of the above
P ublic. a
hereinafter referred. to as Public A havin entered into..a contract effective
Januar 1, 1957, and witnessed December. 20, 1956, and as amended eff ective
Februar 1, 1961, April 1 1964, Ma 1,1965, October 1 19733 Januar 1
X83 ��l 1,
1990, December 31, 199.0, March 21, 199.1 Jul 4, 1991, September 3, 1992
.October
15, 1992, March 11, 2001, Ma 5, 2002. and. Au 10, �2003. which p r ovides for
participation of Public A in said S Board and .Pub.1i.c.Agenc he. reb a g ree
as follows:
A. Para 1 throu 14 are hereb stricken. from said contract as executed
effective Au 10, 2003, and hereb repla b the followin para phs
numbered 1 throu 15 inclusive:
1. All words and terms used. herein which are defined in the Public
Empl Retirement Law.shall.have the:meanin as defined Ah
erein
unless otherwise specificall provided. "Normal retirement
a
mean .a .55 for local miscellaneous. members and a 50 for local safet
members.
2. Public A shall par in the Public Emplo Retirement
S from and after Januar 1, 1957. makin its em
plo as
hereinafter provided, memb of. said S subject to all provis.ions.of
the Public Emplo Retirement Law except such as appl onl on
election o f a contractin a an are not provided for herein and to all
amendments to said La he.rea.fter enacted except those, which b
express provisions thereof, appl onl on the election of a contractin
agency.
3. Public Agency agrees to indemnify, defend and hold harmless th
California Public Employees' Retirement stern (CalP and it
y s
trustees, agents and employees, the CalPERS Board of Administration
and the California Public Employees'. Retirement Fund from an
y c laims,
demands, actions, losses, liabilities, damages, judgments, ex enses and
p
costs, including but not limited to interest, penalties and attorne s fees
that
may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits
provisions or formulas under this Contract .that are different than
the retirement benefits, provisions. or form..ulas rovide.d
p under
the Public Agency's prior non- CalPERS retirement ram. ro
p g
(b) Public Agency's election to amend this.. Contract to p rovide
retirement benefits, provisions or formulas.that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third art other than
..p Y
CalPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits rovi
provis or
formulas provided under this Contract and provided for under
the California Public .Employees' Retirement Lair.
(d) Public .Agency's election to file for bankruptc under-Chapter 9
y
(commencing with section 901 of Title 11 of the United States
Bankruptcy Code and /or Public Agenc 's election to rej ect this
y 1.
Contract with the Ca. PERS Board of Administration p ursuant to
section 365, of Title. 11, of the United States Bankruptcy Code
P y
or any similar provision of lair.
(e) Public .Agency's election to assign this Contract without the p rior
written consent of the CaIPERS' Board of Administration.
f} The termination of this Contract either voluntarily by re nest of
Public Agency or involuntarily pursuant to the Public Ern to ees'
Retirement Lair.
P y
(g) Changes sponsored by Public Agency in existin g retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute
or to
the California Constitution.
4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by lair or this agreement:
a. Local Eire Fighters (herein referred to as local safety
y
b. Local Police Officers (herein referred to as local safety
y
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. In addition to the classes of employees excluded from membership
P y
said Retirement Law, the following classes .of employees .shall .not become
members of said Retirement System:
a. ALL HOURLY RATED NONWC V L. SERVICE EMPLOYEES
HIRED ON OR AFTER MAY 1, 1965; AND
b. LOCAL HEALTH DEPARTMENT EMPLOYEES.
0. Assets heretofore accumulated with respect to. local miscellaneous
members under the local retirement system who waived. their.. rights under
that system have been transferred) to the Public Employees' Retirement
System and applied against the. liability for ft service incurred
p
thereunder. That portion of assets so transferred which represent the
accumulated contributions (plus interest thereof re wired of the
q
employees. under said local system have. been. credited to the individual
membership account of each such employee under the Public Ens to ees'
p y
Retirement System.
7. Assets heretofore accumulated with respect to. local safety members
under the local retirement system who waived their rights under that
system have been transferred to the Pu.blic Erplayees' Retirement
System and applied against the .liabilit y p for. riot service incurred
thereunder. That portion of assets. so transferred represent the
accumulated contributions (plus interest thereof) required of the
employees under said. local system have been credited to the individual
membership account of each such employee under the Public ern to ees'
Retirement System.
p y
8. This contract shall be a continuation of the contract of the Housing
Authority of the city of Alameda, hereinafter. referred to. as "Former
Agency The accumulated .contributions, assets. and liability or prior and
y p
current service under the Former Agency's contract shall be meted
g
pursuant to Section 20508 of the Government code. Such merg
occurred July .1, 200.0.
a. Section 21354 2% 55 Full formula) provided under this contract
shall apply to al past service for former employees of the Housin
g
Authority of the City of Alameda.
9. The percentage of final compensation. to be. provided for each year of
credited prior and curren service for local rr�iscellaneous members shall
be determined in accordance .with section 21354 of.said Retirem of Lair
subject to the reduction provided therein .for service on and after Janua
1, 1959, the effective date of Social Security coverage, and prior to
December 31, 1982, termination of social Security, for members whose
service has been included in Federal Social Securit (2% at a ye 55 Full g
and Modified).
10. The percenta of final compensation to be provided for ..each y ear. of
credited prior and current service as a local safet member be
determined in accordance with Section 21362.2 of said. Retirement Law
3% at a 50 Full
Public A elected and elects to be subject to the followin optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits
b. Sections 21624 and 21626 (Post Retirement Su rvivo r Allowance).
C. Section 20042 (one -'Year Final Compensation).
d. Section 20938 (Limit Prior Service to Members Emplo on
Contract Date) for local safet members only.
e. Section 20965 (Credit for Unused Sick Leave).
f. Section 21635 (Post-Retirement Survivor Allowance to Continue
After Remarria for local safet members onl
9. Section 21536 (Local S Service Credit Included in Basic
Death Benefit) for local safet members onl
h. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members onl
i. Section 20516 (Emplo Sharin cost Additional Be
Section 21362.2 (3% 50 Full formula) and .Section 20042
Year Final Compensation for loca.1 safet members. The maximum
permanent emplo cost sharin contributions are not to exceed
5.057%.
Retirement 12. Public A shall contribute to said S the contributions
determined b actuarial valuations of prior. and. future service liabilit with
respect to local, m iscellaneous. members and local safe members of said
Retirement S
13. Public A shall also contribute to said Retirement S w
as follos:
a. Contributions re per cover member on account of the .1 959
Survivor Benefits provi under Section 21.573 of said Retirement
Law. (Subject to annual chan In addition, all assets and
liabilities of.Public A g enc y and its .empl .shall be pooled in a
sin account, based on term insurance rates, for survivors of all
local miscellaneous members and local safet members.
b. A reasonable amount, as fixed. by the Board, parable in one
installment within 60. days of: date of contract to
cover the costs of
administering said System as it. affects the employ of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required bylaw.
q y
C. A reasonable arnount, as fixed by the Board, P a y able in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Aerc ;and costs of
y
the periodic investigation and valuat required by lair.
1 4. Contributions required of Public. Agency and its em to ees shall be
p y
subject to .adjustment by Board on account .of amendments to the Public
Employees' Retirement Law, and on account of the ex erience u nder der the
Retirement system as determined by the. periodic investigation and
valuation required by said Retirement Lary.
Contributions required of. Public .A enc and..its..err to ees
g P y shall be paid
by Public Agency to the Retirement. System within fifteen da s after the
y
end of the period to which said contributions refer or as may. be prescribed
by Board regulation. If more .or less than the correct amount of
contributions is paid for any period, proper. a1 djustment shall be.
made in
connection with subsequent. remittances. Adjustments on account of
errors in contributions required of any employ e ra be made b direr
y y t
payments between the employee and the.Board.
B. This amendment shall. be effective on the da y of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ALAMEDA
BY BY
DARRYL WATSON, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT ER# 354
PERS- CON 702A
I, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the day of December, 2011, by the following
vote to wit:
AYES
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the
seal of said City this day of December, 2011.
Lara Weisiger, City Clerk
City of Alameda
CITY o F ALAMECAA
Memorandum
To: Honorable Mayor and
Members of the city council
From: John A. Russo
City Manager
Date: December 0, 2011
Re: Authorize the city Manager to Execute a Lease Agreement with the
Friends of the Alameda Animal Shelter for the operation of the Alameda
Animal shelter
BACKGROUND
In June, the city council approved the FY11 -12 budget, which included steep spending
cuts in all departments in order to close the $7.5 million budget deficit. The Police
Department's $1.3 million budget reduction, or 5% of its total budget, included
outsourcing the Alameda Animal shelter to another. community. ..or non profit and
eliminating four Police officer positions (two in investigations and two in traffic). The
alternative to outsourcing the Animal shelter was the elimination of an additional five
Police officer positions, for a total of nine Police officers.
In June, the Friends of the Alameda Animal shelter (FAAS) and the Humane society of
Alameda (HSA) expressed a strong interest in taking over the shelter, rather than in
contracting with another community. On ,dune 21, the City Council. authorized .the city
Manager to execute a Memorandum of Understanding with FAAS and HSA in order to
allow the non profits time to develop a plan for operating the shelter, including
identifying sustainable funding sources.
DISCUSSION
City staff and members of FAAS and HSA have been meeting for several months to
negotiate the terms of a lease that will allow FAAS to operate the Shelter. (FAAS
amended its bylaws early in the process in order to allow it to perform this function.) At
the same time, FAAS has been raising funds to pay half of the anticipated $600,000
cost of operating the Shelter.
The City and FAAS have now reached agreement on a lease that contains the following
provisions:
The lease will commence on January 1, 2012, but FAAS will transition into its new
role during the month of December.
L C
Agenda Item #6
12-06-11
Honorable Mayor and December 6, 2011
Members of the City Council Page 2 of 3
The term of the lease is 15 years, with an option to extend for two periods of five
years each subject to mutual approval.
FAAS will pay the City $1 annually as rent.
The City will contribute $300,000 in the first year towards the Shelter's operation. In
subsequent years, the $300,000 contribution will grow by an escalator based on the
Bay Area Consumer Price Index.
The City will maintain responsibility for the building's roof, foundation,
heating/ventilation/air conditioning systems, and electrical systems.
FAAS will be responsible for general maintenance of the building as well as janitorial
services.
FAAS will provide all of the general Shelter services such as licensing of companion
animals (for which it will be entitled to keep the licensing revenues), holding of strays
and owner- surrendered animals, and the provision of after -hours drop boxes.
The City will continue to employ two part -time employees, at an estimated cost of
$60,000 per year. These part time employees will be responsible for responding to
stray animal calls, transporting animals to the facility, and field enforcement of animal
control laws.
The formation of this public private partnership is a win -win for the City and for the
community. It ensures that Alameda retains a well -run, well maintained animal shelter,
and that lost pets are not transported off island to another community. In addition, this
partnership provides a blueprint for the future as the City continues to balance the need
for city services against declining revenues and increasing costs.
FINANCIAL IMPACT
The Poi Department has sufficient funds in its Animal Shelter budget (001 3130) to
pay the remaining $160,000 needed this fiscal year as well as the approximately
$30,000 required for the two part -time employees. Funding for future years will be
included in the department's Animal shelter budget. In addition, the Animal Shelter
budget will lose a projected $110,,000 in revenues each fiscal year as a result of turning
over licensing operations to FAAS.
Authorize the City Manager to execute a lease agreement with the Friends of the
Alameda Animal Shelter for the operation of the Alameda Animal Shelter.
Honorable Mayor and
Members of the city council
By:
Paul Rolleri
Captain
Approved as to funds and account,
Fred harsh
Controller
December 6, 2011
Page 3 of 3
Lisa Goldman
Assistant City Manager
Exhibit:
1. Lease Agreement (Alameda Animal Shelter)
HIM a "Na
MI-I.W540 W. W0.
40. V
CITY OF ALAMEDA,
a municipal corporation or and existin
under the laws of the State of California
as
LANDLORD
and
FRIENDS OF THE ALA ED ANIMAL SHELTER,
a California nonprofit public benefit corporation
as
cit CoUnC11
ExWlbit A to
A lt'ern #6-A
'CIAL\49636\853874.7 27,�,O
LEASE AGREEMENT
(Alameda Animal Shelter)
THIS LEASE AGREEMENT (Alameda Animal Shelter) ("Lease dated as
2011, is made by and between the CITY OF ALA EDA, a municipal
corporation organized and existing under the laws of the State of California "Landlord' and
FRIENDS of THE ALAMEDA ANIMAL SHELTER, a California nonprofit public benefit
corporation "Tenant
This Lease is entered upon the basis of the following facts, understandings and intentions
of the Landlord and Tenant:
A. Landlord owns certain real property located in Alameda, California, commonly
known as 1590 Portman. Way (or the Alameda Animal Shelter), together with the improvements
thereon (the "Property").
B. Landlord and. Tenant have agreed to male and enter into this Lease, whereby
Tenant will lease from Landlord the Premises on the terms and conditions set forth herein.
A g r eement
NOW, THEREFORE,, in consideration of the terms, covenants and conditions hereinafter
set forth, Landlord and Tenant hereby agree as follows:
t ES Landlord does hereby lease, rent, and demise to Tenant and Tenant does
hereby hire and rent from Landlord, the following premises comprised of the following as shown
on Exhibit A attached hereto [collectively, the "Premises.
1. 1. B uilding. The building located on the property, together with the im provements
and fixtures situated. therein (collectively, the uild g" subject to the provision of adequate
office space for two (2) part -tire Animal Control officers. For purposes herein "animal
Control means animal control operations administered by Landlord.
1.2. Equipment Certain. moveable anal imm oveable equipment and related personal
property (collectively, "Equipment"), as more particularly described on Exhibit A--1 attached
hereto and made a part hereof.. During the Wean. (as defined below) of this Lease, Tenant shall
be entitled to the exclusive use of such Equipment, subject to the terms and conditions set forth
in this Lease.
1.3. L.and The outdoor exercise yard on the south side of the building and an exterior
patio (collectively, the "Land
.4. park Areas. ine parking area "Parking Area subject to one (1) reserved
space for police vehicles in front of the Building.
CIAL1496361853874.7 4-
2. TE
2. t Terre The term of the Lease shall be for fifteen (15) years commencing on the
Lease Commencement Date (as defined. below) and, unless sooner terminated pursuant to this
Lease, terminating on December 31, 2026 (the "Initial Term (subject to extension in
accordance with this Section 2.1). The Initial Terre, and any "Extension Terre" (as defined
below) or Extension Terms as to which Tenant has exercised its option in accordance with
Section 2.1 .1 are referred to in this Lease as the "Term". The tern "Lease Year" as used
herein shall mean any three hundred sixty -five (365) consecutive day period beginning rs the
g g o
Lease Commencement Date or any anniversary thereafter.
2.1.1. Upon condition that (i) no Event of Default is continuing and this Lease at
the time of exercise or at the commencement of the applicable extension term, and (ii subject ect to
Landlord's prior vnitten approval for each extension, then Tenant shall have the. right to. extend
the Terre for two (2) periods of five (5) years each (each an "Extension Term following the
expiration of the Initial Tenn or the expiration of the Term as extended by the first Extension
Terra, as applicable, by giving; written notice ("Extension Notice to Landlord at least one (1)
year prior to the expiration of the immediately preceding Tenn.
2.1.2. Base Rent for each Extension Term shall be the same amount and payable
in the same manner as provided in Section 3.1 below.
2.2. Lease Commencement Date
2.2.1. The Lease Commencement Date shall be January 1, 2012 (`Lease
Commencement nent Date
2.2.2. For the purpose of this Lease, "Force Majeure Events" shall mean..
(i) any delays beyond the reasonable control of Landlord, such as acts of Clod, f re, earthquake,
acts of a public enemy, riot, insurrection, unavailability of materials, goven nl.ental restrictions
on the sale of materials or supplies or on the transportation of such materials. or. supplies, strike
directly affecting construction or transportation of materials or supplies, shortages of materials or
labor resulting from government controls, weather conditions, unavailability. of possession of the
Premises due to governmental action or inaction, or any other cause or events beyond the.
reasonable control of Landlord. The parties agree that if Landlord is unable to deliver possession
of the Premises by the anticipated Lease Commencement Bate, plus any extension thereto due to
a Force Maj cure Event(s), this Lease shall not be void or voidable, nor shall. Landlord be liable to
Tenant for any loss or damage resulting; therefrom., and the. expiration date. of the Term of this
Lease shall be extended for such delay; but in such event, Tenant shall not be liable for any Dent
until the Lease Commencement Date; provided, however if. such delays were caused or
attributable to Tenant, Rent shall commence as of the scheduled Lease Commencement Date.
2.2.3. Prior to the Lease Commencement Date, Landlord and Tenant shall
conduct a wall- through inspection of the Premises and acknowledge the results of such
inspection by signing a physical condition report "Condition Report"), in a form prepared by
Landlord, setting forth the agreed physical appearance and. condition of the Premises as of such
time. To the extent that the Condition Report approved by. Landlord and Tenant requires
Landlord to repair, replace or perform any maintenance obligations (provided that such report
cIAL\49636 \853874.7 ..2..
shall not create any obligations of Landlord except as expressly set forth in this Lease), Landlord
shall complete such tasks within thirty (30) days thereafter; provided, however, to the extent such
natters cannot be completed within such period, Landlord shall use its due diligence to complete
such matters on an expeditious basis thereafter, subject to delays caused by Force Maj eure
Events.
3. Base Rent Tenant shall pay to Landlord as "Base Rent" one Dollar ($1.00) per
year. Each annual payment of Base bent shall be paid in advance promptly on the first day of
every Lease Year of the Term beginning on the Lease Commencement Date. Tenant shall not
have the right to pay Base bent for more than a single Lease Year at a time and may not pay the
entire Initial Term (or for multiple Lease Years) on a lump sung basis. The Base Rent shall be
paid without prior notice or demand, and without any setoff, counterclaim or deduction
whatsoever. The Base Rent shall be paid at Malice Department offices, or such other place as
Landlord shall direct.
3.2 "Rent" Defined. As used in this Lease, the term "Rent" shall include Base Rent
and/or any and all other charges and other amounts whatsoever payable by Tenant pursuant to
this Lease.
3.3 Security Deposit The security deposit has been waived.
3.4 Default Rate If any portion of Rent shall be due and unpaid for more than
five {5} days, it shall thereafter bear interest at the per annum rate equal to two percent .[2 per
annumn greater than the prime rate of interest announced from time to time by the wall Street
Journal, as the sane may change from time to time (the "Default Rate from. the due date until
the date of payment thereof by Tenant.
3.5 Late Chi If any payment of Rent or any part thereof to be made by Tenant to
Landlord pursuant to the terms of this Lease shall become overdue for a period in excess of
five (S) days after written notice from Landlord that the same is past due, a late..charge of five
cents for each dollar overdue shall be paid by Tenant for the purpose of defraying the expense
incident to handling such delinquent payment, together with interest from the date such payment
or part thereof was due, at the Default Rate. Nothing herein or in the imposition or acceptance of
a late charge by Landlord shall be construed as a waiver of any rights of Landlord arising out of
any default of Tenant; the right to collect any late charge or interest is separate and apart from
any rights or remedies of Landlord relating to any default by Tenant.
3.6 Survival The obligation of Tenant with respect to the payment of Dent shall
survive the termination of this Lease.
3.7 Net Lease Tenant hereby acknowledges and agrees that this Lease is intended to
be a triple net lease to Landlord, as such term is commonly used for the leasing of
industrial /commercial properties, except as expressly herein set out, such that Landlord is not
responsible for any costs, charges, expenses and outlays of any nature whatsoever arising from or
relating to the Premises, or the use and occupancy thereof, or the contents thereof or the business
carried on therein, and that Tenant shall pay all charges, impositions, costs and expenses of every
CIAL \49635 \853874.'7 -3-
nature and kind relating to the Premises except as expressly otherwise agreed herein. Except as
otherwise expressly set forth in this Lease with respect to the building Structural and MEP
Systems (as defined below), all costs of maintenance and repair of the Premises, all costs of
insuring the Premises, and all taxes allocated to the Premises shall be paid by Tenant.
A. U OF PR
4.1 Permitted Ilse.
4. 1.1 Provision of Services The sole purpose for which the Premises may be
used "Permitted Use by Tenant or authorized contractors, subcontractors or licensees of
Tenant, is for the operation of the Alameda .Animal Shelter and the provision of Services as
defined below) or .Additional Services (as defined below) during the Terre of this Lease.
4.1.2 Tenant shall provide the following services (collectively, "Services at
the Premises during the Tern:
{i) Abandoned or Stray Animals.
(A) Tenant shall accept all Companion Animals (asdefined
below) that come into custody of Animal Control. "Companion Animals' means domestic
animals typically maintained by the Alameda residents as pets, including, without limitation
dogs, cats, certain rodents and birds, and certain non- poisonous reptiles, but excluding insects,
arachnids, crustaceans, and fish. Tenant may also accept other animals from Animal Control in
Tenant's discretion. Landlord and Tenant shall coordinate to adopt standard operating
procedures for the transfer of animals from Animal Control to Tenant.
(n) Companion Animals shall be held for the tine required by
applicable Law (e.g., the Hayden. Law) (the "Holding Period and Tenant shall take
reasonable efforts to locate such animal's owner(s). After the expiration of tie Holdin g Period,
Tenant shall make reasonable efforts to have new owncr(s) adopt such anneals, and may contact
any qualified Rescue Group (as defined below) for the transfer of such animals to such Rescue
Group. For purposes herein "Rescue Group" shall mean a nonprofit, 501(c)(3.) organization
chose mission includes finding permanent homes for animals in accordance with applicable
Law, and if applicable, written guidelines established by Landlord and/or Tenant.
(C) Tenant shall use best efforts to avoid killing any animals in
its custody. Killing shall be acceptable only when considered on a case -by -case basis and.
approved in writing with respect to the applicable animal by Tenant's senior employee employed
at the .Premises. Such decision. shall be made taping into account the principles of mercy to the
animal, or danger to the community, including other animals on the Premises or in the
community.
(ii) Owner Surrendered Animals Tenant shall accept all owner
surrendered Companion Animals from residents of the City of Ala 3eda, California (the "Service
vice
Area Tenant may, but shall not be required to accept other owner- surrendered animals,
including, but not limited to wild animals, food animals and other livestock, and any other non-
CIAL\49636 \853874.7 --4--
Companion Animal that may, in Tenant's reasonable judgment pose a risk to Tenant's personnel,
or to other animals on the Premises or in the community.
(iii) Dead Animals Tenant shall accept custody of dead animals from
Animal Control or from the community. Landlord and Tenant shall coordinate to adopt standard
operating procedures for the transfer of dead animals from Animal Control to Tenant.
(iv) Animal Licensin Tenant shall perform licensing services for all
Companion Animals presented to it, and to require that any stray Companion Animal redeemed
by its owner or released to a new owner be licensed. Tenant shall charge the City of Alameda's
amounts provided in the current master fee schedule for such licensing; as such master fee
schedule may be changed from time to time.
(v) Service Area The Premises shall be operated to meet the animal
services needs of the Service Area. Tenant may elect to provide its services outside the Service
Area, so long as the provision of such services does not interfere with Tenant's provision of
services to the Service Area.
(vi) out of Service Area Surrenders Tenant shall not be required, but
may elect (subject to Section 4.11 (v) above), to accept animals outside the Service area.
(vii) der Hours Drop-Off .Boxes. Tenant shall .maintain after -hours
drop -off boxes and .shall tale custody of animals dropped off in such boxes.
(viii) Pound Seizures Landlord and Tenant shall not permit the release
of an animal to an agency for research or vivisection purposes.
4.1.3 other Communily Services. Tenant shall be permitted to use the Premises
to provide other community services closer related to the Services, such as providing et
p gp
training, bereavement classes and other education, holding meetings related to animal welfare
and conducting tours of the Premises, provided the provision of such other community services
does not interfere with the provision of Services by the Tenant.
4.1.4 Conn ensation for Services. Landlord shall pay to Tenant on an annual
basis Three Hundred. Thousand Dollars ($300,000) (the "Annual Compensation") for the
Tenant's provision of the Services during the Term of this Lease. Landlord shall also p a Y the
cost of two part -tune employees performing am*mal control services who shall be employed
by Landlord and based on the Premises. Tenant's right to receive the Annual Compensation and
Landlord's obligation to pay the cost of the two (2) part time employees shall terminate upon the
termination of this Lease.
(1) Commencing on the Lease Commencement Date and terminating
as of the expiration or earlier termination of the Term., the Annual Compensation shall be P aid in.
monthly installments of Twenty-Five Thousand Dollars ($25,000), on or about the first day of
each month, provided there are no uncured Events of Default (as defined below) with respect to
Tenant.
CLAL149636\853874.7 -5-
(ii) Commencing on January 1, 2014, the Annual Compensation shall
be adjusted annually by the Bay Area Consumer Price Index (as defined below). For example, if
the change in the Bay Area Consumer price Index between the Lease Commencement Date
(January 1, 2012) and January 1, 2014 is 6.3%, then the Annual Compensation paid. to Tenant in
2014 would equal Three Hundred Eighteen Thousand Nine Hundred Dollars ($318,900), which
would be calculated as follows:
$300,000 x 1.063 $318
As used in this Lease, the term "Bay Area Consumer Price Index" shall mean the Consumer
Price Index published by the United States Department of Labor, Bureau of Labor Statistics (the
"Bureau") All Items for All Urban Consumers in the San Francisco Oakland -San Jose
Metropolitan Area, (1982-84=100). Should the Bureau discontinue the publication of the Bay
Area Consumer Price Index, publish the same less frequently or alter the same in some other
manner, the most nearly comparable index or procedure as determined. by Landlord shall be
substitute therefor.
4.1.5 Cons ensation for Additional Services.
(i) Landlord may request Tenant to perform services in addition to the
Services described in Section 4.1.1 above, provided that (A) the cost of and compensation for
such additional services "Additional Services shall be mutually agreed upon by Landlord and
Tenant in writing, and (B) Landlord must authorize all such Additional Services and
compensation to Tenant therefor in writing ("Authorized Additional Compensation prior to
Tenant performing any such Additional Services.
(ii) If as part of Additional Services, Landlord requests that any
animals be held and cared -for at the Premises for any period of tune, as for evidence, quarantine
or any other non routine purpose, then. Tenant shall not have the right to charge any fees for
boarding such animals up to sixty (60) days. However, Landlord shall pay Tenant, as .Authorized
Additional Compensation, the actual cost of any further services (e.g., veterinary costs) required
to maintain such animals in good health and a disposition fee in case of such animal's death
provided that such costs and payment are approved by Landlord in accordance with the
procedure set forth in Section 4.1.3(i) above for Authorized Additional Compensation.
4.1.6 Fees During the Tern, Tenant shall collect fees from the public for
Services based upon Tenant's adopted schedule of fees, and shall devote such fees entirely and
exclusively to the performance of the Services and operations of the Premises.
4.2 No other Uses The Premises shall not be used for any other purposes other than
the Permitted Use without the prior Witten approval of Landlord.
4.3 No Commitment for Future Conveyance. Tenant understands and acknowledges
that this Lease is not and does not constitute a commitment by Landlord to create any priority
with regard to the ultimate disposal of the Premises, in whole or in part, to Tenant.
4.4 Cony liance with Law. Tenant shall comply with all laws, ordinances, rules,
regulations and codes, which includes, but is not limited to, the Americans With Disabilities Act
C AL496361853874.7 -6-
("ADA") and hazardous materials lame=s and laws pertaining to narcotics and other medical
substances, of all municipal, county, state and federal. authorities (collectively, "Law")
pertaining to Tenant's use and occupation of the Premises and performance of Services and
Additional Services. Notwithstanding anything to the contrary in the foregoing, Landlord shall
be responsible for ADS. compliance with respect to matters existing 'within the Premises as of the
date of this Lease. Tenant shall not commit, or suffer to be committed, and waste upon the
Premises or any public or private nuisance, or other act or thing which disturbs the quiet
enjoyment of any other tenant in the buil dings, nor shall Tenant store any :materials on the
Premises which are visible from areas adjacent to the Premises, unless otherwise specifically set
forth in this Lease. Tenant shall also specifically not permit any objectionable odor to escape or
be emitted from the Premises and shall insure sanitation and freedom from odor, smell and
infestation from rodents or insects. Tenant, at its expense, shall provide (and enclose if required
by Law, codes or Landlord) a dumpster or durnpsters for Tenant's trash in a location and manner
approved by Landlord, and shall cause its trash to be removed at intervals reasonabl satisfactory
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to Landlord. In connection therewith, Tenant shall beep the dumpster(s) clean and insect, rodent
and odor free.
4.5 Use Permit and Licenses Tenant and any of its subtenants shall obtain a City of
Alameda Use Permit, if applicable, and other applicable City permits and approvals for any
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intended use of the Premises (collectively, "Use Permit"). Tenant shall procure and maintain all
other permits, certificates, and licenses required for Tenant to perform the Services and if
applicable, .additional Services, and to operate the Premises in accordance with all applicable
Law.
4.6 other Revenues Landlord shall receive any and all revenues from penalties
imposed for violations of leash laws, and any and all other Law applicable to animal control.
Tenant shall have no obligation to collect, nor have the right to receive, any such revenues.
4.7 Standard of Care Tenant shall exercise the degree of care, shill and diligence
ordinarily provided by professional animal services organizations comparable to other
organizations operating and maintaining animal shelters and providing services similar to the
Services.
5. ASSIGNMENT AND SU
5.1 Tenant shall not, without Landlord's prior written consent at Landlord's sole
discretion, (i) assign, convey, mortgage, pledge, encumber or otherwise transfer (whether
voluntarily or otherwise) this Lease or any interest under it; (ii) allow any transfer of or any lien
upon Tenants interest by operation of law; (iii) sublet the Premises or any part thereof; or (iv)
permit the use or occupancy of the Premises or any part thereof by anyone other than Tenant and
its employees.
5.2 Tenant's request for consent to any sublet or assignment shall be in writing and
shah. contain the name, address, and description of the business of the ro osed assignee p P or
subtenant y its most recent financial statement and other evidence of financial responsibility, its
intended use of the Premises, and the terms and conditions of the proposed assignment or
subletting. within thirty (30) days from receipt of such request, Landlord shall either. (I) grant
CLAL149636\853874.7 -7-
or refuse consent; or (2) elect to require Tenant to: (a) as to a proposed sublease, execute an
assignment of Tenant's interest under this Lease to Landlord, upon terns and conditions
reasonably required by Landlord, together with an assignment of Tenant's interest as landlord in
any such proposed Lease, or (b) as to a proposed assignment, terminate this Lease and the term
hereof effective as of the last day of the third (3rd) month following the month in which the
request was received.
5.3 For purposes of this section, any transfer or change in control of Tenant by
operation of law or otherwise shall be deemed an assignment hereunder, including, without
limitation, any merger, consolidation, dissolution or any change in more than fifty percent (50
of the interests of Tenant, whether in a single transaction or a series of related transactions.
5.4 If, with the consent of Landlord, this Lease is assigned or if the Premises or any
part thereof is sublet or occupied by anybody other than Tenant, .Landlord may, after default by
Tenant, collect rent from the assignee, subtenant, or occupant, and apply the net amount
collected to the Rent herein reserved. If Landlord consents to any such subletting or assignment.,
it shall nevertheless be a condition to the effectiveness thereof that a fully executed Copy of the
Lease or assignment be furnished to Landlord and that any assignee assumes in writin g all
obligations of Tenant hereunder. No consent to any assignment, subletting or occupancy shall be
deemed a waiver of any of Tenant's covenants contained in this Lease nor the acceptance of the
assignee, subtenant or occupant as Tenant, nor a release of Tenant from further performance of
any covenants and obligations under this Lease.
5.5 Any consent given by Landlord to an assignment or subletting of this Lease shall
not constitute a waiver of the .necessity of such consent to any subsequent assignment or
subletting.
6. CONDITION of PREMISE The Premises are delivered to Tenant by Landlord "as
is, where is," and, as such, Landlord makes no warranty as to such facilities and property either
as to their usability generally or as to their fitness for any particular purpose. Upon the
expiration or earlier termination of this Lease, Tenant shall turn over to Landlord the Premises in
the same condition in which they were received, reasonable gear and tear excepted. Tenant's
taking possession of the Premises shall be conclusive evidence that the Premises were in
satisfactory condition when Tenant took possession. No promises of Landlord to alter, remodel,
repair or improve the Premises and no representation respecting the condition of the Premises
have been made by Landlord to Tenant, except as expressly provided in this Lease.
7.1. Tenant shall not make any alterations, improvements, or additions to the exterior
or interior of the Premises (collectively the "Alt erations"), without Landlord's prior written
consent in each and every instance; which consent may be conditioned upon: criteria and /nor
requirements deemed necessary by Landlord. Any Alterations which add to, remove, or
otherwise alter, the structural components of the Building, including the roof, any support
structures, foundations, the exterior of the Building, and the fire retardant and other life safety
systems of the Building, shall require Landlord's prior written consent, which may be withheld
in Landlord's sole discretion. In the event Tenant desires to perform any Alterations, Tenant
CIAL\49636 \853874.7 -8-
shall first submit to Landlord a written description of the proposed Alterations, and, if Landlord
requires, plans and specifications relating thereto, and obtain. Landlord's written approval prior to
pp p
commencing it. Approval of Alterations may be conditioned upon providing Landlord with a
performance and payment bond satisfactory to Landlord in all respects in addition to other
requirements deemed reasonably necessary to protect the interests of Landlord. Alterations as
used herein shall not include min or changes made by Tenant to improve the. appearance or utility
y
of the Premises, such as rearrangement of furniture, redecoration and painting, changes in cat
room layout, or removal of shelving, prodded such minor changes do not affect in any way the
Building Structural and MEP Systems (as defined. below).
7.1 Prior to undertaking any Alterations, to the extent required by applicable Laws,
Tenant shall submit an application to the applicable governmental authorities for review and
obtaining approval of such plans and proposals for such Alterations to the Premises. In addition.,
Tenant shall also submit to Landlord a narrative description of all proposed Alterations on the
Premises, with the projected schedule and costs thereof, and an analysis as to how and wh y such
Alterations will or will not be visible from the exterior of the Building, or be substantially likely
to adversely affect the human health, or the environment, or adversely impact the structure of the
Building. All Alterations shall be done at the expense of Tenant without any cdsts .or obligation
to Landlord. No Alterations shall be undertaken by Tenant on the Premises, unless such
Alterations has been approved by all applicable governmental authorities and all requisite
permits have been obtained.
7.3. In the event Tenant intends to perform work requiring excavation below the
surface of the Premises (whether inside or outside of the Building) or construction of a
permanent structure on the Premises, Tenant must determine actual location of utilities using
standard methods (i.e., potholing, metal fish line, etc.) and submit this information with an
application to excavate or application to build a permanent structure to Landlord for approval
(which shall also include the approval of applicable governmental authorities). The application
should include a site plan showing the location of utilities and that construction will not take
place above the utility line or within the utility easement, specifically showing that no P ermanent
structures will be constructed in these areas. Tenant shall be responsible for complying with the
provisions of the City of Alameda's Marsh Crust ordinance, and if required., shall obtain a
.Marsh 'gust Permit.
7.4. At the termination of this Lease, all improvements, whether temporary or
permanent in character, made by Landlord or Tenant in or upon the Premises shall become
Landlord's property upon conveyance of the Land and Premises to Landlord and shall remain
upon the Premises at the termination of this Lease without compensation to Tenant (excep tin g
only Tenant's movable office furniture, trade fixtures, and manufacturing, office and
professional equipment, and any work approved by Landlord as to which, at the time of such
approval, Landlord provided, in writing, that such work had to be removed at the termination of
the Lease).
7.5. Before Tenant undertakes any Alterations which will disturb any mown friable or
non friable asbestos in the Premises, if any, the Tenant, as part of its improvement plan
submittal, shall set forth a plan providing how Tenant will handle any such asbestos, which plan
CIAL1496361853874.7 -9-
must be reviewed and approved by Landlord, before any such work which will disturb such
asbestos in the Premises can commence.
7.6. Landlord at its option. and without any form of representation or warranty, shall
have the right to modify, repair, refurbish and/or repaint the exterior of the Premises (and the.
Building containing the Premises) as determined in Landlord's sole discretion. Such right shall
g
not cause any form of eviction, constructive or otherwise, and Tenant shall not be ent to any
abatement of amounts owning under this Lease; provided, however, Landlord shall use its good
faith efforts to minimize d isruption to Tenant's building operations.
8. AC By LAN DLORD. In addition to access provided by this Lease, Landlord
shall be allowed access to the Premises at all reasonable times throughout the term of this Lease,
for any reasonable purposes upon prior written notice to Tenant. Landlord will normal/ give
normally
a minimum 24 -hour prior notice of an intention to enter the Premises, unless the entry is
rewired on an emergency basis for safety, environmental, operations or security purposes.
Tenant shall ensure that a telephone roster is maintained at all times for on -call p ersons
representing Tenant who will be available on short notice, 24 hours a day, 3 65 days per year, and
possess and have authority to use all keys necessary to gain access to the Premises, to facilitate
entry in time of emergency. Tenant shall ensure that Landlord has a current roster of such on-
call personnel and their phone numbers. Tenant shall have no claim against Landlord for
exercise of their rights of access hereunder. Portions of the utilities systems serving the Premises
may be located within the Premises. Tenant agrees to allow Landlord and its utility suppliers
reasonable access to the Premises for operation., maintenance, repair and replacement of these
tilities systems as may be requ In executing operation, maintenance, r epair air or
of these systems, Landlord agrees to take all reasonable steps to limit interference with the use of
the Premises by Tenant.
9. UTILITIES
9.1. Utilities will not be furnished to Tenant by .Landlord. The obtaining of such
utility services is solely the responsibility of Tenant. Any separate metering of utilities required
by any utility provider shall be the responsibility of Tenant. Tenant shall pay all service char es
and all initial utility deposits and fees, for water, electricity, sewage, janitorial, trash removal,
gas, telephone, pest control and any other utility services furnished to the Premises and the
improvements on the Premises during the entire terra of this Lease ("Ut"Iffies"). Tenant shall
pay for all Utilities in addition to Base Rent. If any such Utilities are not separately metered or
billed to Tenant for the Premises but rather are billed to and paid by Landlord, Tenant shall pay
to Landlord, as Additional bent, its pro rata share of the cost of such services, as real onabl
determined by Landlord. If any Utilities are not separately metered, Landlord shall. have the
right to determine Tenant's consumption by either submetering, surve y or other methods
designed to measure consumption with reasonable accuracy. Landlord shall not be liable for any
reason or any joss or d amage re sulting -ftbrn aan iriterr�u ption of any of these s ery ices. Landlord
may designate the provider of Utilities and in such event Tenant shall use such designated
provider; provided that Tenant shall have no claim against Landlord, of any type, for any failure
of such p to provide such service, and Tenant's remedy, i f any, shall be limited to such
provider.
CIAL149636\853874.7 _10-
1.0. MAINTENANCE SERVICES.
10.1. Repairs By Landlord. Landlord shall maintain only the foundation, structural
system- including exterior walls (exclusive of all glass and exclusive of all exterior doors), roof,
and electrical, plumbing, and heating /venti ation/air- cond.itior*ng systems of the Premises
(collectively, the "Building Structural and NMP Systems in good repair, except repairs
rendered necessary by the negligence or intentional acts of Tenant, its employees, invitees or
representatives, which shall be repaired by Tenant. Tenant shall promptly. report, in writing, to
Landlord any defective condition known to Tenant to be defective which Landlord is required to
repair and failure to so report such condition shall make Tenant responsible to Landlord for an
liability incurred by Landlord by reason of such condition. Landlord shall be required to
commence such repairs within a reasonable period of time from receipt of Tenant's notice.
10.2. Repairs By ,`tenant Tenant accepts the Premises in its present s -Is,
Is" condition, and specifically acknowledges that the Premises is suited for the uses intended by
Tenant. Landlord shall not be liable for any latent or patent defects in the Premises. Except as
expressly set forth in this Lease, Tenant acknowledges that Landlord has made no representation
or warranty concerning the condition and state of repair of the Premises to the extent not
constructed by Landlord. Tenant shall, at its own cost and expense, kee p and maintain the
Premises in good order and repair, promptly making all necessary repairs and rcplacernents,
including, but not limited to, all equipment and facilities and components thereof within the
Premises, fixtures, walls (interior), finish work, ceilings, floors, lightin g fixtures, bulbs and
ballasts, utility connections and facilities within the Premises, windows, glass, doors, and plate
glass, truck doors, dock levelers, bumpers, seals and enclosures, termite and p est extermination
and damage to common areas caused by Tenant, excluding only those repairs expressly. required
to be made by Landlord hereunder. Any and all construction, r. n.aintenan.ce. and-1or repairs to be
done by Tenant, its agents, employees, contractors and/or subcontractors. pursuant to .this Section
which would be deemed Alterations, as reasonably determined b Landlord shall comply with
y py
the requirements of this Lease. Tenant, in keeping the Premises in good order, condition and
repair, shall exercise and perform good maintenance practices. Tenant shall. maintain. and shall
provide Landlord with proof thereof, an annual service maintenance contract which shall be
upon a form acceptable to Landlord and with a service provider designated by Landlord whic
may be an affiliate thereof)) and any and all required permits for the dire sprinkler system (if
applicable), and any other such building systems and life- safety systems, in a form. and .with a
contractor reasonably satisfactory to Landlord. Tenant shall maintain the rounds surrounding
g
the premises, including the mowing of grass, care of shrubs and general landscaping. Tenant's
obligations shall include restorations, replacements or renewals when necessary to keep the
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Premises and all improvements thereon or a part thereof in good order, condition and state of
repair.
10.3. 'fhe Equipment shall not be removed by Tenant, or any of its employees or
agents, from the Premises, without the prior written consent of Landlord. Tenant shall be
responsible for preparing and .maintaining an accurate and. current inventory of all such
Equipment. If Tenant desires to cease use of any Equipment during the Tenn of this Lease and
cause it to be removed from the Premises, Tenant shall so advise Landlord in writing and shall
obtain written approval for moving or disposing of such Equipment from- Landlord.
cA.; \49636 \853874.7 _11-
10.4. At the termination of this Lease, the Equipment shall be returned to Landlord in
as good condition as when Tenant tools possession, ordinary wear and tear excepted; provided,
however, that it is understood that Tenant shall not have any obligation to maintain or repair any
personal property which has become functionally obsolete, or if such personal property is not
reasonably capable of being repaired because of an inability to reasonably obtain parts, or the
cost of such repair or maintenance is unreasonable.
1.0.5. Debris and unused materials shall be promptly removed from the Premises, and
the area of work shall be kept reasonably clean and free of unused materials at all tunes. At
completion of the Lease, the area of work and the Premises shall be left without containers,
Tenant's equipment, and other undesirable materials, and in an reasonably acceptable clean
condition.
10 Tenant shall provide for all se curity and safety within the Premises. Any c rime s
or other offenses, involving damage to or theft of Landlord's property shall be reported to
Landlord as property owner and lessor.
10 The Tenant shall be responsible, at its cost and expense, for obtai and
providing any and all other services which may be required in connection with Tenant's use or
occupancy of the Premises.
INDEMNIFICATI
1 1 1 Ir denun%fi By Tenant of Landlord. Tenant shall indemnify, defend. and save
Landlord, its C i ty Council, boards, co mmis sions, officials, employees and volunteers
"Indemnities harmless and shall pay all costs, expenses and reasonable attorneys' fees for all
trial and appellate levels and post judgment proceedings in connection with any fines, suits,
actions, damages, liability, causes of action of every nature whatsoever arising or ow�i.n out of,
g
or in any manner connecte with, the occupation or use of the Premises, and/or provision of
Services or any other services by Tenant and Tenant's employees, agents, servants, guests,
invitees, contractors or sublessees. These include, but are not limited to, any fines, claims,
demands and causes of action of every nature whatsoever which may be made upon, sustained,
or incurred by Landlord by reason of any breach, viol ation, omission or non-performance of any
ten rn, covenant or condition hereof on the part of Tenant or Tenant's employees, agents, servants,
guests, invitees and sublessees. However, this indemnity shall not extend to damages due to the
sole fault or negligence of Landlord or their contractors. This covenant shall survive the
ten of this Lease.
1 1.2. iTai ver Landlord shall not be liable to Tenant and Tenant hereby waives all
claims against Landlord or its affiliates for any injury or damage to any person or property
occurring or incurred in connection with or in any way relating to the Premises, the Building or
the Property from any cause. without limiting the foregoing, neither Landlord nor any of its
affiliates shall be liable for and there shall be no abatement of rent for (i) any damage to Tenant's
property stored with or entrusted to affiliates of Landlord, (ii) loss of or damage to any property
by theft or any other wrongful or illegal act, or (iii) any injury or damage to persons or property
resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may
leak from any part of the Premises or the Property or from the pipes, appliances, appurtenances
CIAL149636t853874.7 -12-
or plumbing works therein or from the roof, street or subsurface or from any other place or
resulting from dampness or any other cause whatsoever or from the acts or omissions of other
tenants, occupants or other visitors to the Premises or the Property or from any other cause
whatsoever, (iv) any diminution or shutting off of light, air or view by any structure which may
be erected on lands adjacent to the Premises, or (v) any latent or other defect in the Premises or
the Property. Tenant agrees that in no case shall Landlord ever be responsible or liable on any
theory for any injury to Tenant's business, loss of profits, loss of income or any other form of
consequential damage. Tenant shall give prompt notice to Landlord in the event of (a) the
occurrence of a fire or accident in the premises or in the Property, or (b) the discovery of any
defect therein or in the fixtures or equipment thereof.
12. INSURANCE.
12. 1. Tenant's Insurance
12.1 .l Tenant shall procure and maintain for the duration of the Lease, insurance
against claims for injuries to persons or damages to property which may arise from or in
connection with the Tenant's operation and use of the leased premises. The cost of such
insurance shall be borne by the Tenant.
12.1.2. Tenant shall maintain the following types of insurance with limits no less
than the following as set forth below.
(i) Commercial General Liability Coverage:
$3,000,000 per occurrence for bodily injury, personal injury and
property damage. The policy shall be endorsed to provide Fire
Legal Liability or Damage to Dented Premises coverage, as well as
for Products and Completed operations;
(ii) Automobile Liability Coverage:
Coverage for owned, hired, leased and rented vehicles, with limits
of not less than $1,000,000.00 for combined bodily injury and
property damage, on a per occurrence basis;
(iii) Property Insurance Coverage:
Coverage against all risks of loss (excluding flood and earthquake).
$1,000,000 in Property Insurance Coverage with no coinsurance
penalties shall apply and coverage shall extend to include any
tenant improvements or betterments. Landlord shall be listed on
all settlement checks as the Loss Payee,
(iv) Workers' Compensation Coverage:
CIAL \496361853874.7 -13-
Statutory coverage as required by the State of California, with
Employer Liability coverage with limits of not less than
$1,000,000.
12.1.3. On or before the Lease Commencement Date, Tenant shall furnish
Landlord with certificates shoving the type, amount, class of operations covered, effective dates
and dates of expiration of insurance coverage in compliance with Section 12.1.2. Such
certificates, which shall not limit Tenant's indemnifications provided in this Lease, shall also
contain substantially the following statement: "Should any of the above insurance covered by
this certificate be canceled or coverage reduced before the expiration date thereof, the insurer
affording coverage shall provide thirty (30) days' advance written notice to the Cit y of Alameda
by certified mail, Attention: Risk Manager." Tenant shall maintain in force at all times during
the performance of this Lease all appropriate coverage of insurance required by this Lease with
an insurance company that is acceptable to Landlord and licensed to do insurance business in the
State of California. Endorsements naming the additional insureds required by Section 12.3 shall
be submitted with. the insurance certificates.
12.2. Subrogation Waiver. Tenant agrees that in the event of loss due to any of the
perils for which it has agreed to provide comprehensive general and automotive liability
insurance, Tenant shall look solely to its insurance for recovery. Tenant hereby grants to
Landlord, on behalf of any insurer providing insurance to either Tenant or Landlord.with respect
to the services of Tenant herein, a waiver of any right to subrogation which any such insurer of
said Tenant may acquire against Landlord by virtue of the payment of any loss under such
p
insurance. Tenant's insurance carriers shall provide endorsements to the insurance olicies
accordingly.
12.3. .additional Insured The City of Alameda, its City Council, boards, commissions,
officers, employees, agents and volunteers, and any other party designated by Landlord as
determined in Land lord's sole discretion), and at Landlord's request any mortgagee of Landlord,
shall be named as an additional insured under all insurance coverage's, except on .workers'
compensation and professional liability insurance policies. The naming of an additional insured
shall not affect any recovery to which such additional insured would be entitled under this olic
p y
if not named as such additional insured. An additional insured named herein snail not be held
liable for any premium, deductible portion of any loss, or expense of any nature on this olic
p y or
any extension thereof. Any other insurance held by an additional insured shall not be required to
contribute anything toward any loss or expense covered by the insurance provided by this policy.
12.4. Notice of Cancellation Tenant's insurance polices shall be endorsed to require
the insurer to provide Landlord with at least thirty (30) days' written Notice of Cancellation.
12.5. Sufficiency of Insurance The insurance limits required by the Landlord are not
represented as being sufficient to protect Tenant. Tenant is advised to consult Tenant's
insurance broker to determine adequate coverage for Tenant. Tenant's insurance policies shall
be endorsed stipulating that Tenant's insurance is primary, and that the Landlord's self-insurance
program and excess insurance policies shall not be called upon to contribute to a loss that should
otherwise be paid by the Tenant's insurer.
12.6. Insurer Acceptability Tenant's insurers must be domiciled in the United States of
America. They must meet a minimum A. I. Best Co. rating of ANII and a Standard and
0149636\853874.7 -14-
boors Rating (if rated) of at least BBB. In the event that a proposed insurance company is not
rated. by A.M. Best Co. or Standard and Poors, said insurance carrier must be domiciled in the
State of California and approved by the Landlord's Risk Manager.
2.7. F to Secure If Tenant at any time during the Tern hereof should fall to.
secure or maintain the foregoing insurance, .Landlord shall be permitted to obtain such insurance
in the Tenant's name or as an agent of the Tenant and shall. be compensated by the Tenant for the
costs of the insurance premiums at the maximum rate permitted by law and computed from the
date Witten notice is received that the premiums have not been paid.
1 3. I DESTRUCTION OF BUILDMGS
17.1 Partial Destruction In the event of a partial destruction of the Building during the
Tern of this Lease from any cause, Landlord may elect to (in its sole di scretion) repair the same,
prodded such repair can reasonably be made within one hundred eighty (18 d from th e
happening of such destruction under applicable Laws and regulations. luring such period,
Tenant shall be entitled to a proportionate reduction of Rent to the extent such repairs
unreasonably interfere with the business carried on by Tenant in the Pren ises. If Tenant .fails to
remove its goods, wares or equipment within a reasonable time and as a result the repair or
restoration is delayed, or if such damage or destruction is caused primarily by the neglig or
willful act of Tenant, or its employees, invitees or agents, there shall be no reduction dent
ding such delay. In the event that (i) Landlord elects not to make such re air, or (11such P
repair cannot reasonably be made within one hundred eighty (180 days from the .happening of
such destruction under applicable laws and regulations, Landlord shall have the right to terminate
this Lease by notifying Tenant in writing.
17.2 Total Destruction A total destruction of the Building shall terminate this Lease.
A total destruction of such Building means the cost of repairing such Building exceeds seventy-
five percent (75%) of the replacement cost of such Building.
14. LABOR PROVISIONS.
4. t ual orturri .During the Terra of this Lease, and with respect only to
employment or employees at the Premises, Tenant agrees as follows:
14.1.1. Tenant will not discriminate against any employee of Tenant or applicant
for employment because of race, color, religion, sew, or national origin. The employees of
Tenant shall be treated during employment, without regard to their race, color, religion, seq.,
sexual orientation, or national origin. Such action shall include, but not be limited to, the
following: employment, upgrading, demotion, or transfer, recruitment or recruitment
advertising, layoff or termination, rate of pay or other forms of compensation, selection for
training, including apprenticeship. Tenant agrees to post inconspicuous places, notices to be
provided by the applicable government agencies, setting forth the provisions of this
nondiscrimination provision.
14.1.2. Tenant will, in all solicitations or advertisements for employees placed by
or on behalf of Tenant, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex., sexual orientation, or national origin.
CIAL149635t853874.7 -15-
14.2. Convict Labor In connection with the performance of work required by this
Lease, Tenant agrees not to employ any person undergoing a sentence of inprisonrnent at hard
labor.
15. SUBMISSION OF NOTICES. All notices, demands, requests, consents, or approvals
which may or are required to be given by either party to the other shall be in writing and shall be
deemed given when sent by United States Certified or Registered Mail, postage prepaid, or b
reputable overnight delivery service or personal delivery as follows:
15.1. if for Tenant, addressed to Tenant at:
Friends of the Alameda Animal Shelter
1590 Fortrnann Way
Alameda, CA 94501
Attention: Executive Director
Telephone: (800) 871 -9012 ext. 372172 (for overnight delivery
15.2. If for Landlord, addressed to Landlord at:
City of Alameda
2263 Santa Clara Avenue, Ro0m 320
Alameda, CA 94501
Attention: City Manager
Telephone: (510) 747 -4700 (for overnight delivery)
With a copy to:
City of Alameda
2263 Santa Clara Avenue, Room 320
Alameda, CA 94501
Attention: City Attorney
Telephone: (510) 747 -4750 (forovernight delivery)
15.3. Notwithstanding the addresses provided in subsections 15.1 and 15.2 of this
section, any party may from time to time designate an alternate and/or additional address by
notice given pursuant to this Section 15.
16. AUDIT This Lease shall be subject to audit by Landlord. The Tenant shall make
available to Landlord for use in connection with such audits. all records, which it maintains with
respect to this Lease and copies of all reports required to be filed hereunder. The Tenant will
make these materials available for a period of three (3) years after termination or expiration of
this Lease.
17. AG ENT This Lease shall not be.. modified unless in writing and signed by both
Landlord and Tenant. No oral statements or representation made by, for, or on behalf of either
party shall be a part of this Lease. Should a conflict arise between the provisions of this Lease
CIALt49636 \853874.7 -16-
and any exhibit hereto, or any other agreement between Landlord and Tenant, the provisions of
this Lease shall take precedence.
8. FAI LURE To INSIST ON COMPLIANCE. The failure of Landlord .to insist, in any
one or more instances, upon performance of any of the terms, covenants, or cond of this
Lease shall not be construed as a waiver or relingUishment of Landlord's .right to the future
performance of any such terms, covenants, or conditions and Tenant's rig to the future
performance of any such terms, covenants, or conditions and Tenant's obligations. in respect of
such future performance shall continue in full force and effect.
9. 1 BROKERAGE. Tenant represents and warrants that it has not had any dealings with
any realtors, brokers, or agents in connection with the negotiation of this. Lease. Tenant shall
defend, hold harmless and indemnify the other party from and against are .claims with res ect to
p
the negotiation and procurement of this Lease by an y rea /tor, broker or agent.
20. LIENS. The Tenant shall promptly discharge or cause to be discharged .any valid lien,
right in clam, or demand of any kind on the Premises, except one in favor. of Landlord which at
any time may arise or exist with respect to the Premises or materials or equipmer t furnished
therefor, or any part thereof, and if the sane shall not be promptly dischargedby Tenant or
should Tenant be declared bankrupt or make an assignment on behalf of creditors, or should the
leasehold estate be taken by execution, Landlord reserves the rig to take .immediate possession
g p
without any l to Tenant or any subtenant thereof If Tenant breaches the fdregoing,
Tenant and any subtenant thereof shall be responsible for any costs incurred by Landlord in
securing clear title to its property.
21. T AXES. Tenant shall pay all Taxes (as hereinafter defined) levied. or unposed against
the Premises during the Tenn. Taxes shall mean all taxes, assessments and governmental
charges, whether federal, state, county or municipal, and whethe general or ecial ordinar �r
p y
extraordinary, foreseen or unforeseen, unposed upon the Rent. the Premises, the any
possessory interest therein, or their operation., wheth or not directly paid y aid b Landlord. Taxes
shall. not include 'income taxes, excess profit taxes, franchise. taxes, or other taxes impose or
measured on or by the income of Landlord from the operation of the .Premises; rovided
g
however, that if, due to a future change in the method of taxation or assessment, any income
profit, franchise or other tax, however designated, shall be unposed in substitution; in whole or in
part, for (or in lieu of) any tax, assessment or charge whic would o therwise �e included within
the definition of Taxes, such other tax shall be deemed to be included within Taffies as defined
herein to the extent of such substitution. There shall be added to Taxes the ex e ses o are
contests (administrative or otherwise) of Taxes incurred during the taxing year, but only to the
extent such contests result .in a reduction of Taxes for such Vicar or ar otl er car Burin the
y g
Term. Tenant shall pay to the appropriate governm authority any. use, possessory.interest
and/or occupancy tax applicable. to. the Premises. In the .event th Landlord is required by lam to
collect such tax, Tenant shall pay such use and occupancy tax to Landlord as Additional Rent
within ten (10) days of demand and Landlord shall remit .any mounts so p aid to Landlord to the
appropriate governmental authority.
21 The interest created by this Lease may at some time be s ubject to property
taxation under the laws of the State of California. If property taxes are imposed, the art in
p party
CIAL\ 49636\853874.7
whom the possessory interest is vested may be subject to the payment of the taxes levied on such
interest. This nonce is included in this Lease pursuant to the requirements of section 107.6(a) of
the Revenue and Taxation Code of the State of California.
21.2. Tenant shah pay the Taxes directly unposed upon it in accordance with the
instructions of the taxing entity. Tenant shall pay the Taxes originally unposed upon Landlord,
upon Landlord's election, either (i) annually within thirty (30) days after the date Landlord
provides Tenant with a statement setting forth in reasonable detail such 'Faxes (which statement
shall not be prodded to Tenant more than sixty days before such Taxes are due), or
(ii) monthly in advance based on estimates provided by Landlord based upon the previous years
tax bill.
21.3. All Taxes originally imposed upon Landlord and payable by Tenant with respect
to the .Premises shall be prorated on a per diem basis for any partial tax year included in the
Term. Tenant's obligation to pay Taxes during the last year of the Term shall survive the
termination of this Lease.
22. SURRENDER Upon the expiration of this Lease or its prior termination by Tenant,
Tenant shall quietly and peacefully remove itself and its property from the Premises and
surrender the possession thereof to Landlord. The Landlord may, in its discretion, declare any
property which has not been removed from the Premises upon termination provided for above, as
abandoned property upon an additional thirty (3Q) calendar days' notice.
23.1. Upon Tenant paying the Dent reserved hereunder and observing and performing
all of the covenants, conditions and provisions on. Tenant's part to be observed and performed
hereunder, Tenant shall have quiet possession. of the Premises for the entire Term hereof, subject
to all the provisions of this Lease.
23.2. Except as provided in Section 24.4 below, in the event of a sale of Landlord's
interest in the Premises, or assignment of this Lease by Landlord, Landlord shall be released
from any liability thereafter accruing under this Lease, except that Landlord shall obligated to
pay to Tenant Annual Compensation pursuant to Section 4. 1.1 for the Tern. and Tenant shall
promptly notify Landlord if the Lease is terminated for any reason, including the expiration of
the Term. Tenant shall, on request of any person or party succeeding to the interest of Landlord,
attorn to such successor in interest and recognize such successor in interest as Landlord under
this Lease.
24. LERTAIN RIGHTS RESERVED TO LANDLORD. Landlord reserves the following
rights:
24. 1. To hold copies of all. keys and passk.eys to the Premises, other than to vaults,
safes, or restricted areas within. the Premises.
24.2. on reasonable prior written notice to Tenant, no less than 48 -hours in advance, to
show the Premises to prospective tenants during the last nine (9) months of the Term., and to any
CIAL496361853874.7 _18-
prospective purchaser, mortgagee, or assignee of any mortgage or ground lease on the Premises
and to others having a legitimate interest in the premises at any time during the Terra.
24.3. At any time in the event of an emergency, and otherwise at reasonable tunes. to
take any and all measures, including making any inspections, repairs, alterations, .a.dditions and
improvements to the premises, as may be necessary or desirable for the safety3 protection, o
preservation of the Premises'. or Landlord's interests, or as may be necessary or desirable in the
operation or improvement of the premises, or in order to comply with all a s; girders, and
requirements of governmental or other authorities, using reasonable efforts not to interfere with
the use and occupancy of the Premises by Tenant. Landlord shall not be in default hereunder nor
have any liability to Tenant, nor shall Tenant have any right to terminate this Lease or cl m an
offset against or reduction in Rent payable hereunder, due to any damage, ann.oyance or
inconvenience resulting from any such inspections, repairs, alterations, additions or
improvements, or the failure of Landlord to make any such inspections, repairs, alterations
additions or improvements, provided however that Landlord shall be liable for lts gross
negligence or willful misconduct. Tenant shall reasonably cooperate with landlord or
Landlord's agents or contractors in carrying out any such inspections, rep airs, alterations
p p
additions or improvements.
24.4. Landlord shall have a continuing right to retake possession of the. premises for
any proper municipal purpose, provided that Landlord gives Tenant one (1) ear's p rior written
notice of such intent (the "Notice of Intent to Retake"), during which. period .Landlord sha ll
build or adapt and equip, or cause to be built or adapted and equipped, an aninnai shelter facil
y
substantially similar to the premises at a reasonably comparable location (the Ahern t e
Facility"). The Alternative Facility shall be, at a minimum, of compara size. and .have
comparable animal housing capacity as the .premises existing at the date o the. Notice of Intent to
Retake. Upon the date which is the later of one (1) year from the date of the Notice of Intent to
Retake, or completion of the .Alternative Facility as evidenced b a certificate of occu ane
y .p y
issued or s gnoff of completion of the work of adaptation., as applicable, Landlord and Tenant
shall amend this Lease to revise the description of the premises, includin g Exhibit A. attached to
the Lease, to reflect the .Alternative Facility, and Tenant shall move its operation to the
Alternative Facility and shall vacate the premises.
25. C OVENANTS of TENANT
25.1 Use of the p Tenant shall not make or permit to be .made .any use of the
Premises or any part thereof (i) which would directly or indirectly violate any federal, state or
local later, ordinance, rule or governmental. regulation; (ii) w hich would invalidate or
unreasonably increase the premium cost of any policy of insurance carried on the premises or
covering its operation (unless such increase is paid for by Tenant); or iii ��ich wi suffer or
permit the Premises or any part thereof to be used in any manner or permit anything to be
brought into or kept therein which, in the reasonable judgment of Landlord; shall unreasonably
impair or interfere with any of the services required to be performed by Landlord, if any, for. the
Premises.
25.2. Locks Tenant shall not change any existing locks, or attach any additional logs
or similar devices to any door or window, change any logs, without providing to Landlord one
C A \49636 \8-;3s74.7 19-
set of keys therefor. All keys must be returned to Landlord at the expiration or termination of
this Lease.
25.3. Overloading. Tenant shall not overload any floor.
25.4. Machi Tenant shall not install or operate any machinery, refrigerating or
heating device or air conditioning apparatus in or about the Premises which would impose
unreasonable substantial additional loads on the facilities of the Building.
25.5. No Obstruction The exits, entrances, elevators and stairways of the Buildings
shall not be obstructed by Tenant or used for any purpose other than for ingress to and egress
from the Premises. Tenant and its employees or invitees shall not go upon the roof of the
Building without Landlord's prior consent.
25.6. A licable Rules and Regulations. Tenant shall comply with all Federal, State
and local Laws, regulations and standards that are applicable or may become applicable to
Tenant's activities on the .Premises, including those rules and regulations promulgated by
Landlord pursuant to Section 33 of this Lease. These include, but are not limited to, laws and
regulations on the environment, construction of facilities, health, safety, food service, water
supply, sanitation, use of pesticides, and licenses or permits to do business. Tenant is
responsible for obtaining and paying for permits required for its operations under the Lease.
25.7. Outside Stora e. Outside storage in excess of such storage existing on the
Premises as of the Lease Commencement Date shall not permitted without the express p rior
written authorization by Landlord. Any additional outside storage authorized by Landlord shall
be properly screened.
25.8. Independent Contractor. Tenant covenants that it is an independent contractor.
Nothing contained in this Lease shall be construed as .making .Landlord and Tenant joint
venturers or partners.
26. DEFAULT It shall constitute an event of default "Event of Default') under this Lease
if any of the events describes in the following subsections occurs.
26.1. Tenant fails to pay when due Base Rent, Additional dent, or other amounts due
hereunder and such failure continues for a period of five (5) days after the due date.
26.2. Tenant assigns or sublets, or purports to assign or sublet the Premises or any past
thereof other than in the manner and upon the conditions set forth herein.
26.3. Tenant falls to perform or observe any of its other obligations, covenants, or
agreements hereunder within ten (10) working days after written notice of any such failure has
been given by or on behalf of Landlord, or, if more than ten (10) working days is required to cure
such failure, within said ten (10) warping days, Tenant shall advise Landlord in writing of
Tenant's intended course of action to cure and the estimated date as to when said action will be
completed, and if Tenant fails to commence such cure as promptly as practical as stated in its
notice to Landlord and thereafter diligently to pursue such cure and thereafter fails to diligently
pursue such a cure and complete such cure within a reasonable time thereafter.
CIAL43636\853874.7 -20--
26.4. Tenant liquidates its business, becomes insolvent, makes an assignment for the
benefit of creditors, files or has filed against it a petition of bankruptcy, bill in equity, or other
proceedings for the appointment of a receiver or other custodian for its property, or if
proceedings for reorganization or composition with creditors under any law are instituted by or
against Tenant or if any levy or sale or execution of any bind is made upon or of any property of
Tenant in the Premises.
26.5. Tenant abandons or vacates the Premises or Tenant removes or attempts to
remove or manifests an intention to remove Tenant's goods or property from or out of the
Premises otherwise than in the ordinary and usual course of business.
26.6. Tenant fails to vacate the Premises at the end of the Term of this Lease unless this
Lease is otherwise renewed or extended.
27. LANDLORD'S REMEDIES
27. 1. If an Event of Default hereunder shall have occurred, Landlord may, at its option,
exercise any one or more of the following remedies:
27.1.1. Terminate Tenant's right to possession of the Premises by written notice
by any lawful means, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Premises to Landlord. In such event, Landlord shall be entitled to
recover from Tenant:
(t) the worth at the time of the award of any unpaid rent which had
been earned at the time of such termination; plus
(2) the worth at the time of the award of the amount by which the
unpaid rent which would have been earned after termination until the time of award exceeds the
amount of such rental loss which Tenant proves could have been reasonably avoided; plus
(3) the worth at the time of the award of the amount by which the
unpaid rent for the balance of the term after the time of award exceeds the amount of such rental
loss which Tenant proves could be reasonably avoided; plus
(4) any other arnount necessary to compensate Landlord for all. the
detriment proximately caused by Tenant's failure to perform its obligations under this Lease or
which in .the ordinary course of things would be likely to result therefrom (including,, without
limitation, the cost of recovering possession of the Premises, expenses of reletting including
necessary renovation and alteration of the Premises, reasonable attorneys' fees, and real estate
commissions actually paid and that portion of the leasing conunission paid by Landlord and
applicable to the unexpired portion of this Lease); plus
(5) such other amounts in addition to or in lieu of the foregoing as may
be permitted from time to time by applicable California law.
As used in Subsections (1) and (2) above, the "worth at the time of the award" shall be
computed by allowing interest at the lesser of ten. percent (10 per annum, or the maximum rate
CIAL \49636 \853874.7 21-
permitted by law per annum. As used in Subsection (3) above. the 'worth at the time o
award" shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%).
27.1.2. Continue this Lease in full force and effect, and the Lease will continue in
effect, as long as Landlord does not terminate Tenant's right to possession, and .Landl shall
have the right to collect Rent when due. During the period Tenant is in default, Landlord ma
enter the Premises and relet there, or any part of them, to third parties for Tenant's account.
Tenant shall be liable immediately to Landlord for all costs Landlord reasonably incurs in
relettin.g the premises, including, without limitation, brokers' commissions, expenses of
remodeling the Premises required by the relettin.g, and like costs. Reletting can be for a
period
shorter or longer than the remaining term of this Lease. 'Tenant shall pay to Landlord the bent
due under this Lease on the dates the Rent is due, less the rent Landlord receives from any
reletting. In no event shall Te nant be entitled to any excess rent received by Landlord. No act
by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant
in writing that Landlord elects to terminate this tease. After Tenant's default and foras lon g as
Landlord does not terminate Tenant's right to possession of the Premises'. if Tenant obtains
Landlord's consent, Tenant shall have the right to assign or sublet its interest in this Lease but
Tenant shall not be released from liability.
27.1.3. Cause a receiver to be appointed to collect Rent. Neither the filing of a
petition for the appointment of a receiver nor the appointment itself shall constitute an election
by Landlord to terminate the Lease.
27.1.4. Cure the default at 'Tenant's cost. If Landlord at any time, by reason of
Tenant's default, reasonably pays any sum or does any act that requires the a ent of an sure
p� y a
the sum paid. by Landlord shall be due immediately front. Tenant to Landlord at the time the sura
is paid, and if paid at a later date shall bear interest at the. lesser of ten. percent (10.00%) er
p.
annum, or the rnaxirnu��n rate an individual is permitted by law to charge 1` 6 thoe date the sum is
paid by Landlord until. Landlord is reimbursed by Tenant. The sum., together with interest on it
shall be additional Rent.
27.2. The foregoing remedies are not exclusive; they are cumulative, irk addition to any
remedies now or later allowed by law, to any equitable remedies Landlord may have, and to any
remedies Landlord may have under bankruptcy laws or laws affecting creditors rights generally.
The waiver by Landlord of any breach of any term, covenant or condition of this Lease shall not
be deemed a waiver of such term, covenant or condition or of any subsequent bre ach of tae .same
or any other term, covenant or condition. Acceptance of Rent by Landlord. subsequent to an
breach hereof shall not be deemed a waiver of any preceding breach other than. a failure.. to pay
the particular Rent so accepted, regardless of Landlord's knowledge of any breach at the time of
such acceptance of rent. Landlord. shall not be. decreed to have waived any terra, covenant or
condition unless Landlord gives Tenant written notice of such waiver.
27.3. No early ex piration or termination of this Lease (except as expressly provided
herein) and no repossession of the Premises or any part thereof shall relieve Tenant of its
liabilities and obligations to pay Rent hereunder, all of which shall survive such expiration,
CIAL1496361853874.7 -22-
termination or repossession, and Landlord may, at its option, sue for and collect all Rent and
other charges due hereunder at any time as when such charges accrue.
27.4. in the event that Landlord commences suit for the repossession of the Premises,
for the recovery of Rent or any other amount due under the provisions of this Lease, or because
of the breach of any other covenant herein contained on the part of Tenant to be kept or
performed, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred
in connection therewith, including reasonable attorneys' fees. In the event that Tenant
commences suit because of the breach of any covenant herein co ntained on the part of Landlord
to be Dept or performed, and a breach shall be established, Landlord shall pay to Tenant all
expenses incurred in connection therewith, including reasonable attorneys' fees.
28 S if any of the provisions of this Lease or the application thereof to
any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such provision or provisions to persons or circumstances other
than those as to whom or which it is held invalid or unenforceable, shall not be affected ther
y
and every provision of this Lease shall be valid and enforceable to the fullest extent permitted b
Law.
29. HOLDING OVE R. Should Tenant hold over and remain in possession of the Premises
after the expiration of this Lease, without the written consent of Landlord, such possession shall
be as a month to month tenant. Unless Landlord agrees otherwise in writing, Base Dent during
the holdover period shall be payable in an amount equal to one hundred fifty percent (150 of
the Base Rent plaid for the last month of the term hereof until Tenant vacates the Premises. All
other terms and conditions of this Lease shall continue in full force and effect dun' n g such
holdover tenancy, which holdover tenancy shall be terminable by either party delivering at least
one (l) month's written notice, before the end of any monthly period. Such holdover tenanc
shall terminate effective as of the last day of the month following the month in which the
termination notice is given.
i is a; MM
30.1 sto el Certificate. Tenant shall, at any time and from time. to tune, upon not
less than ten (1. o) days' prior request by Landlord, execute, acknowledge and .deliver to Landlord
or to such other persons who may be designated in such request, a statement in writing certifying
that this Lease is unmodified and in full force and effect (or if there have been modifications, that
the same is in full force and effect as modified and stating the modifications) .and, if so; the dates
to which the rent and any other charges have been paid in advance, and such other items
requested by Landlord, including without limitation, the lease commencement date and
expiration date, rent amounts, and that no offsets or counterclaims are p resent. It is intended that
any such statement delivered pursuant to this Section may be relied upon by any prospective
purchaser or encumbrancer (including assignee) of the Premises.
30.2. Financial Statements Upon the request of Landlord, Tenant shall deliver to
Landlord such financial information regarding Tenant, as may reasonably be required to
establish Tenants creditworthiness, including without limitation, audited financial reports. All
financial information provided. by Tenant to Landlord shall be held in confidence and may not be
GL.149636 \853874,7 23_
used or disclosed by the recipient except for the purpose of determining Tenants'
creditworthiness in connection with Tenants' obligations under this Lease.
3 0.3 Records and Public Comments Tenant shall maintain, and male available for
viewing by members of the public upon request, its current annual operating budget, and most
st
recent minutes of Board of Directors meetings for the 12 -month period preceding any such
request, provided, however, Tenant may redact certain sensitive data, such as confidential
personnel discussions, from such minutes. Tenant shall also accept written comments from the
public regarding its activities and services, which shall be circulated to members of its Board of
Directors.
31. SHORT FORM OF LEASE. Tenant agrees to execute, deliver and acknowledge, at the
request of Landlord, a short fond. of this Lease satisfactory to counsel for Landlord, and
Landlord may in its sole discretion record this Lease or such short form in the County where the
Premises are located. Tenant shall not record this Lease, or a short form of this Lease, without
Landlord's prior written consent.
32. SIGNS. Tenant shall not place any sign upon the Premises without Landlord's prior
written. consent (all such signage shall comply with Landlord's signage design criteria, as such
exists from time to time). In addition, the style, size, materials and attachment method of any
such signage shall be subject to Landlord's prior written consent. The installation of any sign on
the Premises by or for Tenant shall be subject to the provisions of this Lease. Tenant shall
maintain any such signs installed on the Premises. Unless otherwise expressl y agreed reed herein
Landlord reserves the right to install, and all revenues from the installation of, such advertising
signs on the Premises, including the roof, as do not unreasonably interfere with the conduct of
Tenant's business.
33. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the
nondiscriminatory rules and regulations that Landlord shall from time to time promulgate.
Landlord reserves the right from time to time to make all nondiscriminatory modifications to said
rules. The additions and modifications to those rules shall be binding upon Tenant upon delivery
of a copy to there to Tenant (a copy of the present Rules and regulations is attached hereto as
Exhibit B Landlord shall use its reasonable efforts to enforce compliance with such rules, but
shall not be responsible to Tenant for the nonperformance of any of said rules by other tenants or
occupants.
34. LIMITATION ON LIABILITY. In consideration of the benefits accruing hereunder,
Tenant '.d all successors and assigns covenant and agree that, in the event of any actual or
alleged failure, breach or default hereunder by .Landlord: (1) Tenant's sole and exclusive
recourse shall be against Landlord's interest in the Premises and Tenant shall not have any right
to satisfy any judgment which it may have against Landlord from any other assets of Landlord;
(2) no member, partner, stockholder, director, officer, employee, beneficiary or trustee
(collectively, "Partner") Partner of Landlord shall be sued or named as a party in any suit or action
(except as may be necessary to secure jurisdiction. over Landlord); (3) no service of p.rocess shall
be made against any partner of Landlord (except as may be necessary to secure jurisdiction over
Landlord); (4) no Partner of Landlord shall be required to answer or otherwise plead to any
service of process; (S) no judgment will be taken against any Partner of Landlord; (6) any
CIAL149536\853874.7 -24--
judgment taken against any Partner of Landlord may be vacated and set aside at any time nunc
pro tune; (7) no writ of execution will ever be levied against the assets of any Partner of
.Landlord; and (8) these covenants and agreements are enforceable both by Landlord and also b y
any Pa rtner of Landlord.
35 TT E FEES. if Ten or Landlord shall be in breach or default under thi
Lease, such party (the "Defaulting Party shall reimburse the other party .(the "Non-
D efaulting Party upon demand for any costs or expenses that the Non- Defaultin g Part incurs
in connection with any breach or default of the D Party under thi s Lease, whether or not
suit is commenced or judgment entered. Such costs shall include legal fees and casts incurred
for the negotiation of a settlement, enforcement of rights or otherwise. Furthermore, if an
action for breach of or to enforce the provisions of thus Lease is commenced, the court in such
action shall award to the party in whose favor ajudgment is entered, a reasonable sum as
attorneys' fees and costs. The losing party in such action shall pay such attorne s' fees and costs.
Tenant shall also indemnify Landlord against and hold Landlord harmless from all costs,
expenses, demands and liability Landlord may incur if. Landlord becomes or is .Wade a party to
any claim or action (a) instituted by Tenant against any third party, or by any third party against
Tenant, or by or against any person holding any interest under or using the Property b license of
P y y
or agreement with Tenant; (b) for foreclosure of any lien for labor or material furnished t o or fo
Tenant or such other person.; c) otherwise arising out of or resulting from any act or transaction
of Tenant or such other person; or (d) necessary to protect Landlord's interest under this Lease in
a bankruptcy proceeding, or other proceeding under Title 11 of the United States .Code. as
amended. Tenant shall defend. Landlord against any such claim or action at Tenant's expense
with counsel reasonably acceptable to Landlord, or at Landlord's election, Tenant shall reimburse
Landlord for any legal fees or costs Landlord incurs in any such claim or action.
36. C OUNTER-PART S. This Lease may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which together .shall constitute
one and the same instrument. Each party may execute a facsimile counterpart signature a e to
pg.
be followed by an original counterpart. Each such facsimile counterpart signature page shall
constitute a. va and binding o bligation o f the party signing such fa csimile counterp
37. EXECUTION Submission of this instrument for examination or signature by Tenant
does not constitute a reservation of or an option for lease, and it is not effective as a lease or
otherwise until execution and delivery by both Landlord and 'Tenant.
[Remainder ofpage intentionally bleak, s* Ign ature page o owsd
0\49636\853874.7 -25-
IN WITNESS WHEREOF, Landlord and Tenant have respectively signed this Lease as
of the day and year first above w ten.
CITY OF ILAME A, a municipal
corporation organized and existing under the
laws of the Mate of Caliform a
John A. Russo
City Manager
Name:
Title:
Approved as to form
Donna Mooney,
Acting City Attorney
CIAL1496361853874.7 -26-
ISAM 3
Exhibit A Premises (Depiction of Building, Land and Parking Area)
Exhibit A -1 Equipment (List of Equipment)
Exhibit B Mules and Regulations
CIAL \49636 \8538 74.7 27-
f
i n a.
(DEPICTION OF BUILDING, LAND, PARKING AREAS
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CIAL \496361853874.7 -28-
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