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Ordinance 2837 and Staff ReportCITY OF ALAMEDA ORDINANCE NO. 2837 New Series APPROVING AND AUTHORIZING THE LEASE OF CITY OWNED PROPERTY AT THE CHUCK CORICA GOLF COURSE (FORMERLY OCCUPIED BY AT &T) TO ALAMEDA POWER AND TELECOM WHEREAS; on October 5, 1982, the City Council approved Ordinance No. 2106, authorizing the execution of a lease agreement by and between the City of Alameda, as Lessor, and United Cable Television of Alameda for the construction and operation of an antenna station and head end technical facility; and WHEREAS, the present day Lessee, AT &T Broadbent (formerly United Cable Television li >. of Alameda evolving to TCI Cable Vision of California) requires only a small portion of the facility O z for their existing operations; and r•+ co o WHEREAS, Alameda Power and Telecom (AP &T) has requested to lease approximately 400 a square feet inside the building currently occupied by AT &T for an initial term of five years with four additional five -year optional extensions; and WHEREAS, the Golf Commission approved the proposed AP &T lease at their meeting of May 17, 2000; and WHEREAS, a form of Lease containing the covenants, terms and conditions to be entered into is attached to the staff report presented to City Council at the June 6, 2000 City Council meeting; and WHEREAS, it is in the public interest that said Lease be entered into; and WHEREAS, pursuant to City Charter section 3 -10, no real property of the City shall be leased for a period in excess of one year or sold, except upon the affirmative vote of four members of the Council. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Alameda that: Section 1. That the form of lease referred to in the preamble hereof, and the terms, conditions and covenants contained therein, be and the same are approved upon the affirmative vote of four members of the City Council. Section 2. That the City Manager of the City of Alameda or his designee is hereby authorized to execute, for and on behalf of the City of Alameda, a Lease substantially in the form and containing the terms and conditions and covenants as set out in the Lease attached to the Staff Report presented to City Council at the June 6, 2000 City Council meeting, and the City Clerk is hereby authorized and directed to attest to the same. Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage. Attest: I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in special meeting assembled on the 20th day of June , 2000, by the following vote to wit: AYES: Councilmembers Daysog, DeWitt, Johnson, Kerr and Mayor Appezzato - 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 21st day of June , 2000. Felsch, City Clerk of Alameda City of Alameda Interdepartment Memorandum May 30, 2000 To: Honorable Mayor and Councilmembers From: Matthew T. Naclerio Public Works Director Re: Introduction of Ordinance Approving and Authorizing the Lease of City Owned Property at the Chuck Corica Golf Course (Currently Occupied by AT &T) to Alameda Power and Telecom (Requires Four Affirmative Votes) BACKGROUND On October 5, 1982, the City Council leased a 400 square foot portion of the Chuck Corica Golf Course to United Cable Television of Alameda, for the construction and operation of an antenna station and head -end technical facility for the Lessee's cable television system. DISCUSSION /ANALYSIS Since the initial Lease, United Cable Television of Alameda evolved into TCI Cable Vision of California (TCI) which evolved into the present lessee, AT &T Broadband and Internet Services (AT &T). The new corporation no longer requires the satellite dish equipment or tower. In addition, since AT &T offers both telecommunications and cable services, their space requirements have changed. Four potential sites were identified but none proved acceptable to all parties involved. AT &T has negotiated a site at the east side of Earhart Elementary School and notified the City that they will vacate the Golf Course facility after April 30, 2001. In the interim, AT &T requires only a small portion of the facility for their existing operations. City staff is in the process of executing a ten month rental agreement with AT &T for this small portion of the facility, allowing the City to lease the non -used portion of the facility to other tenants. Sprint Telecommunication and Alameda Power and Telecom have notified the City that they wish to use part of the now vacated facility. The Sprint Lease is under discussion and will be brought before the City Council in the near future. Alameda Power and Telecom (AP &T) has requested to lease approximately 400 square feet of the building. In addition, AP &T has requested usage of the existing conduits from the facility to Doolittle Drive when they are vacated by AT &T. AT &T has reviewed the proposed AP &T lease and indicates it does not impact their existing operations. The Golf Commission reviewed and approved the proposed AP &T lease at their meeting on May 17, 2000. The Public Utilities Board is scheduled to review the lease at their meeting on June 5, 2000. Re: Intro of Ordinance #4 -1 CC 6 -6 -00 Honorable Mayor and Councilmembers Page 2 May 30, 2000 A copy of the proposed lease is attached as Exhibit A. The terms and conditions of the proposed lease are: 1. The proposed initial term is 5 years, with four additional five -year optional extensions under mutual agreement of the City and Alameda Power & Telecom. 2. The initial monthly rent is $2000 with a CPI adjustment at the beginning of each one year period. Adjustments will be allowed for capital improvements under the "master tenant" administration of the facility. 3. Alameda Power and Telecom will pay for all permits, construction, ongoing maintenance and utility costs for their tenant improvement portion of the facility. 4. The City has the right to require Alameda Power and Telecom to relocate their site should the City need the specific location in the future. This move would be at the City's expense. 5. Alameda Power and Telecom will lease 400 square feet of the building with access. 6. Alameda Power and Telecom will have the right to use the existing conduits from the subject building along the access road to Doolittle Drive once the existing AT &T short- term lease has been terminated. . 7. Alameda Power and Telecom will be considered the "master tenant" in the facility and will be responsible for the maintenance and operation of: (A) all utilities, including the electrical system; (B) the backup generator system; CO the Heating, Ventilation, and Air Conditioning system; (D) the exterior of the building including the roof; (E) the exterior fence and open areas within the premises; (F) the fire protection system. 8. One half of the cost of any needed "master tenant" capital improvements, funded by the Lessee, will be offset against the monthly rent, amortized on a straight line basis over the remaining life of the lease (a maximum of 300 months). 9. Other tenants of the facility will enter into leases with the City and will pay rent to the City based on the terms and conditions of each individual lease. BUDGET CONSIDERATION/FINANCIAL IMPACT It is recommended that the revenue from the monthly rent be allocated equally between the Chuck Corica Golf Complex and the General Fund. If approved, there will be monthly revenue of $1000.00 (less required improvements) to each entity. There may be additional revenue to the General Fund Honorable Mayor and Councilmembers Page 3 May 30, 2000 from the Possessory Interest Tax, which will be calculated and billed by Alameda County. Staff time to develop the lease is contained in the current budget for the Public Works Department and the City Attorney's Office. MUNICIPAL CODE CROSS REFERENCE This ordinance does not affect the Alameda Municipal Code. RECOMMENDATION It is recommended that the City Council, by motion, take the following actions: 1. Find that the proposed Lease is statutorily exempt under Section 15268 of the California Environmental Quality Act (CEQA) Guidelines, "Ministerial projects "; and 2. Approve the attached Lease in substantially the form as presented, or with any changes deemed appropriate by the Council, by introducing the Ordinance. The City Charter, Section 3 -10, requires an affirmative vote of four members of the Council to lease real property in excess of one year. Re ectfully submit"? Matthew T. Naclerio Public Works Director MTN:di attachment cc: Alameda Power & Telecom - General Manager General Manager (Golf Complex) AT &T Broadband and Internet Services FORWARDED: G:\PUBWO'.r ADMIN \COUNCIL \060600\APTGOLF1.WPD LEASE AGREEMENT This Lease Agreement, entered into this day of , 2000, by and between CITY OF ALAMEDA, a municipal corporation ( "City" or "Lessor "), and THE BUREAU OF ELECTRICITY, CITY OF ALAMEDA, a municipal corporation d /b /a ALAMEDA POWER & TELECOM, (hereinafter referred to as "Alameda P &T" or "Lessee "), is made with reference to the following: 1. TERM The term of this Lease shall commence on , 2000 and continue for five (5) years, ending on , 2005, unless terminated sooner as provided herein. This Lease may be renewed for up to four additional terms of five years each, by the written mutual agreement of the parties, at least 30 days before expiration of any term. Nothing in this Lease shall be interpreted as requiring either party to renew or extend the term of this Lease. 2. TERMINATION In the event Lessee fails or refuses to perform any of the terms, conditions or covenants hereof at the time and in the manner required hereunder, Lessee shall be deemed in default in the performance of this Lease. If such default is not cured within a period of thirty (30) days after receipt by Lessee from Lessor of written notice of default, specifying the nature of such default and the steps necessary to cure such default, Lessor may terminate the Lease forthwith by giving to the Lessee written notice thereof, and Lessor may reenter upon the Leased Premises and remove all persons therefrom. Lessor also reserves the right to terminate this Lease pursuant to Section 9, "Relocation." 3. LEASED PREMISES Lessor does hereby lease to Lessee, and Lessee does hereby lease from Lessor, approximately four hundred (400) square feet of the Headend building facility at the Alameda golf course ( "Leased Premises "), said location as mutually agreed to between Lessor and Lessee. In addition, upon termination or expiration of the City's lease agreement with AT &T, the Leased Premises shall be revised to include the conduits (to the extent required for Lessee's own purposes) from the facility to Doolittle Drive, as described in Exhibit "A," which is attached and incorporated hereto. 4. USE The Leased Premises shall be used exclusively for the operation and storage of electronic equipment and similar operations related to the provision of power and telecommunications service. Lessee's use of the Leased Premises shall not measurably interfere with Lessor's existing operations in and around the Leased Premises and around Lessor's remaining property, nor with the operations of existing tenants. 5. RENT The rent payable by Lessee to Lessor during the term of this Lease shall be Two 1 Thousand Dollars ($2,000) per month ( "Rent "). The Rent shall be subject to adjustment at the commencement of the second year of the term and each year thereafter on the anniversary of commencement of the term ( "Adjustment Date ") as follows: The basis for the adjustment shall be the United States Department of Labor Bureau of Labor Statistics Consumer Price Index (All Urban Consumers, all items, 1982 -84 equals 100) for the San Francisco /Oakland /San Jose area ( "Index "), for the purpose of reflecting the increase, if any, of the cost of living. The Index published as of the most recent month prior to the Adjustment Date shall be compared with the Index twelve (12) months immediately preceding. On the Adjustment Date, the monthly Rent shall be increased by the percentage increase, if any, in the Index during the previous twelve (12) month period. Notwithstanding any subsequent decrease in the Index, the adjusted Rent shall not be less than that paid in the immediately preceding year. Each monthly payment of Rent shall be paid in advance promptly on the first day of every calendar month of the term. The Rent shall be paid without prior notice or demand, and, except as may be authorized under Section 6 of this Lease ( "Master Tenant Administration "), without any setoff, counterclaim or deduction whatsoever. If the term commences on a day other than the first day of the calendar month or ends on a day other than the last day of the calendar month, Rent for any such partial month shall be pro -rated at the rate of one - thirtieth of the monthly Rent for each day of the period. 6. MASTER TENANT ADMINISTRATION Lessee will be considered the "Master Tenant" in the Headend building facility and will be responsible for maintenance and operation of: (a) all utilities, including the electrical system; (b) the backup generator system; © the Heating, Ventilation and Air Conditioning system; (d) the exterior of the building including the roof; (e) the exterior fence and open areas within the premises; and (f) the fire protection system. Lessee acknowledges that there may be other tenants in the building during the term of the Lease, and that those tenants will lease property directly from Lessor, and will pay rent to Lessor. Lessee agrees to pay for all permits, construction, and ongoing maintenance and utility costs for improvements that specifically benefit Lessee's portion of the facility. One half of the cost of any necessary "master tenant" capital improvements that benefit the entire facility, if funded by the Lessee, will be offset against the monthly Rent, amortized on a straight line basis over the remaining life of the lease (a maximum of 300 months). In order to receive this rent offset, all "master tenant" capital improvements must be approved in writing by Lessor prior to commencement of construction. The improvements listed in Exhibit "B," attached hereto and incorporated herein, are approved master tenant improvements that are eligible for the rent offset. Additional improvements may be eligible upon approval by Lessor. 7. ENTRY AND INSPECTION Lessee shall permit the Lessor or Lessor's agents to enter upon the Leased Premises at reasonable times and upon reasonable notice, for any reasonable purpose including inspection. 2 8. TAXES Lessee recognizes that this Lease may create a possessory interest subject to property taxation and that Lessee maybe subject to the payment of property taxes levied on such interest. Lessee shall pay, before delinquency, all taxes, assessments, license fees and other charges (hereinafter referred to as "taxes ") that are levied or assessed during the term hereof against the Lessee's leasehold interest in the real property or equipment installed or located in or upon the Leased Premises. 9. RELOCATION In the event that the Lessor determines that the Leased Premises are required for its own operations, Lessor reserves the right to require Lessee to relocate its operations and to terminate this Lease upon one year's written notice. In this event, Lessor would be responsible for the direct costs of relocation of Lessee's operations. Provided, however, that in no event would Lessor be liable for special, incidental, indirect, consequential or similar damages arising from the relocation requirement. 10. PERMITS AND LICENSES Lessee, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses that may be required in connection with the performance of services hereunder. 11. INGRESS AND EGRESS Lessor agrees to provide Lessee with ingress and egress access to the Leased Premises for 24 hours per day, 365 days per year. 12. UTILITIES Lessee agrees to pay and be liable for any and all charges attendant upon the use and installation of any public utilities upon the Leased Premises and any and all other charges similar thereto, to the extent such charges are related to Lessee's use of the Leased Premises. It is the intent of the parties that the Lessor shall bear no cost or expense concerning the Leased Premises during the term of this Lease. 13. MAINTENANCE The Lessee, at its own cost and expense, shall protect, maintain, and keep in good order, the Leased Premises. At the discretion of the Lessor, this obligation shall include, but not be limited to, contribution toward the expense of long -term maintenance of the Leased Premises, the necessity for which accrued during Lessee's use. 14. PROHIBITION OF ADDITIONS AND ALTERATIONS Other than those identified in Exhibit "B," no additions to, or alterations of, the Leased Premises shall be made without the prior written consent of the Lessor. Upon termination or expiration of this Lease, to the extent directed by the Lessor, the Lessee shall remove all alterations, additions, betterments and improvements made or installed, and restore the Leased Premises to the same, or as good condition as existed on the date of entry under this Lease, reasonable wear and tear excepted. Provided, however, that Lessee shall have the right to remove its fixtures and equipment. 3 15. PROHIBITION AGAINST TRANSFERS The Lessee shall not assign, sublease, hypothecate, or transfer this Lease or any interest therein directly or indirectly, by operation of law or otherwise. Any attempt to do so shall be null and void, and any assignee, lessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, sublease, hypothecation or transfer. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of the Lessee, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Lessee is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Lessee, shall be construed as an assignment of this Lease. Control means fifty percent (50%) or more of the voting power of the corporation. 16. HOLD HARMLESS Lessee shall indemnify, defend, and hold harmless the City-of Alameda, its City Council, Boards and Commissions, its officers, agents, servants, and employees against any and all loss, damages, liability, claims, suits, costs, and expenses whatsoever, including reasonable attorneys' fees, regardless of the merits or outcome of any claim or suits, in any manner connected to the use of the Leased Premises by the Lessee, and shall furnish the insurance specified in Section 17 of this Lease Agreement. Lessee shall indemnify, defend, and hold harmless the City of Alameda, its City Council, Boards and Commissions, officers, and employees from and against any and all loss, damages, liability, claims, suits, costs, and expenses whatsoever, including reasonable attorneys' fees, regardless of the merits or outcome of any claim or suits in any manner connected to negligent performance of services or work conducted or performed pursuant to this Lease by Lessee or Lessee's contractor, except if and to the extent caused by the sole negligence of the City of Alameda, its City Council, Boards and Commissions, officers, and employees. Lessee shall indemnify, defend and hold harmless the City of Alameda, its City Council, Boards and Commissions, officers and employees from and against any and all loss, damages, liability, claims, suits, costs and expenses whatsoever, including reasonable attorney's fees, accruing or resulting from any and all persons, firms or corporations furnishing or supplying work, services, materials, equipment or supplies arising from or in any manner connected to the Lessee's negligent performance of services or work conducted or performed pursuant to this Lease, except if and to the extent caused by the sole negligence of the City of Alameda, its City Council, Boards and Commissions, officers, and employees. The provisions of this Section 17 shall survive the termination or expiration of this Lease Agreement. 4 17. INSURANCE Lessee shall maintain the following insurance coverage during the term of this Lease: (1) Workers' Compensation: Statutory coverage as required by the State of California. (2) Liability: Commercial general liability coverage in the following minimum limits: Bodily Injury: $500,000 each occurrence $1,000,000 aggregate - all other Property Damage: $100,000 each occurrence $250,000 aggregate If submitted, combined single limit policy with aggregate limits in the amounts of $1,000,000 will be considered equivalent to the required minimum limits shown above. limits: (3) Automotive: Comprehensive automobile liability coverage in the following minimum Bodily injury: $500,000 each occurrence Property Damage: $100,000 each occurrence or Combined Single Limit: $500,000 each occurrence The Lessee shall be liable for any loss of, or damage to, the Leased Premises incurred as a result of its use and shall make such restoration or repair, or monetary compensation as may be directed by the Lessor. All insurance required of the Lessee on the Leased Premises shall be for the protection of the Lessor and the Lessee against their respective risks and liabilities in connection with the Leased Premises. The insurance limits required by the Lessor are not represented as being sufficient to protect Lessee but are to serve as the minimum required by the Lessor. The Lessee is advised to confer with its insurance broker to determine adequate coverage for Lessee. Lessee 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 that Lessee shall look solely to its insurance for recovery. 18. ADDITIONAL INSURED The City of Alameda, its City Council, Boards and Commissions, officers, and employees shall be named as an additional insured under general and automotive insurance coverages as required by this Lease. The naming of an additional insured shall not affect any 5 recovery to which such additional insured would be entitled under this policy if not named as such additional insured. The additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by the additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. 19. SUBROGATION WAIVER Each policy of insurance required in Section 17 of this Lease covering bodily injury and third party property damage shall contain an endorsement reading substantially as follows: "The insurer waives any right of subrogation against the City of Alameda which might arise by reason of any payment made under this policy." 20. CERTIFICATE OF INSURANCE All insurance required by this Lease shall be such form, for such periods of time, and with such insurers as the Lessor may require or approve. A certificate of insurance or a certified copy of each policy of insurance taken out hereunder shall be deposited with the Lessor's local representative prior to use of the Leased Premises. The Lessee agrees that not less than thirty (30) days prior to the expiration of any insurance required by this Lease, it will deliver to the Lessor's local representative a certificate of insurance or a certified copy of each renewal policy to cover the same risks. 21. NON - DISCRIMINATION In connection with the performance of work on or use of the Leased Premises under this Lease, the Lessee agrees not to discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age or sexual orientation. Lessee agrees that any and all violations of this provision shall constitute a material breach of the Lease. 22. COMPLIANCE Lessee will at all times during the use of the Leased Premises promptly observe and comply, at its sole cost and expense, with the provisions of all applicable Federal, State, and local laws, regulations, and standards, with respect to its occupancy and use of its Leased Premises. In particular, Lessee will observe and comply with such laws, regulations and standards concerning environmental quality and pollution control and abatement. Lessee covenants that it will not improperly generate, use or store hazardous substances or hazardous waste on the Leased Premises. Lessee shall promptly notify the Lessor and supply copies of any notices, reports, correspondence, and submissions made by Lessee to any Federal, State, or local authority, or received by Lessee from said authority, concerning environmental matters or hazardous substances or hazardous waste on, about, or pertaining to the Leased Premises. Lessee shall indemnify, defend, and hold harmless the Lessor from and against all claims, liabilities, losses, damages, and costs, foreseen or unforeseen, which the Lessor may incur by the reason of Lessee's action or non - action with regard to obligations under this paragraph, and this provision shall survive the expiration or termination of the Lease. Lessee shall comply with all requirements imposed by the Lessor relating to traffic, 6 parking, fire protection/life safety, noise and light and other similar requirements, and the use of the Leased Premises hereunder shall be subject to monitoring by the Lessor for compliance with any such requirements. 23. WAIVER A waiver by the Lessor of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein, whether of the same or a different character. 24. CAPTIONS The captions in this Lease are for convenience only and are not a part of the Lease and in no way affect, limit or amplify the terms or provisions of the Lease. 25. NOTICES All notices, demands, requests or approvals to be given under this Lease shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided. City at: All notices, demands, requests, or approvals from Lessee to City shall be addressed to City of Alameda 2263 Santa Clara Avenue Alameda CA 94501 Attention: All notices, demands, requests, or approvals from City to Lessee shall be addressed to Lessee at: Alameda Power & Telecom 2000 Grand Street Alameda CA 94501 Attention: 26. INTEGRATED CONTRACT The Lease represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and preliminary negotiations and agreement of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Lease will be effective only by written execution by both the Lessor and the Lessee. 7 IN WITNESS WHEREOF, the parties have caused this Lease Agreement to be executed on the day and year first above written. ALAMEDA POWER & TELECOM CITY OF ALAMEDA A Department of the City of Alameda A Municipal Corporation By Title By Title RECOMMENDED FOR APPROVAL: RECOMMENDED FOR APPROVAL: By By Title Title APPROVED AS TO FORM: City Attorney By Title 8 APPROVED AS TO FORM: City Attorney BY Vt Title DESCRIPTION OF SITE FOR CABLE TELEVISION TECHNICAL FACILITY WITHIN THE ALAMEDA MUNICIPAL GOLF COURSE ALAMEDA, CALIFORNIA COMMENCING at U.S.C.& G.S. Monument "HARB- GATE ", as shown on that certain map entitled "Property of Utah Construction Company, Bay Farm Island, Alameda, California, recorded August 13, 1956 in Book 40 of Maps at Pages 53 through 56, inclusive, Alameda County Records, said Monument having coordinates of Y= 458,437.37 feet and X= 1,499,300.56 feet, based on the California Coordinate System, Zone 3, as are all bearings and distances in this description; THENCE S.15 °45'31" W. 60.00 feet to a point on the southerly right -of -way line of Doolittle Drive; THENCE S.15 °45'31" W. 3.36 feet to the beginning of a curve, concave easterly, having a radius of 150.00 feet; THENCE Southerly along said curve, through a central angle of 15 °54'23" an arc distance of 41.64 feet; THENCE S.00 °08'52" E. 155.44 feet to the beginning of a curve, concave westerly, having a radius of 500.00 feet; THENCE Southerly along said curve, through a central angle of 07 °02'25" an arc distance of 61.44 feet; THENCE S.06 °53'33" W. 149.39 feet'to the beginning of a curve, concave northeasterly, having a radius of 250.00 feet; THENCE Southeasterly along said curve, through a central angle of 35 °24'12" an arc distance of 154.48 feet; THENCE S.28 °30'29" E. 83.94 feet to the beginning of a curve, concave westerly, having a radius of 75.00 feet; THENCE Southerly and southwesterly along said curve, through a central angle of 84 °13'26" an arc distance of 110.25 feet; THENCE S.55 °42'47" W. 166.93 feet; THENCE S.53 °40'02" W. 190.82 feet; THENCE N.36 °19'58" W. 12.50 feet to the TRUE POINT OF BEGINNING; THENCE N.36 °19158" W. 85.00 feet; THENCE N.53 °40'02" E. 117.647 feet; THENCE S.36 °19'58" E. 85.00 feet; THENCE S.53 °40'02" W. 117.647 feet to the TRUE POINT OF BEGINNING, containing 0.230 acres of land, more or less. Prepared By: JTA INC ENGINEERS - PLANNERS 445 Sherman Avenue, Suite S Palo Alto, Ca. 94306 EXHIBIT A Revised Oct. 1, 1982 Job No. 3071 EXHIBIT "B" MASTER TENANT IMPROVEMENTS ELIGIBLE FOR RENT OFFSET The following are approved master tenant improvements that are eligible for rent offset pursuant to Section 6 of the Lease. Additional improvements may be eligible upon approval by Lessor. Backup Generator The existing Backup Generator, transfer switch and fuel system will be evaluated and maintenance performed if required by Alameda P &T or its contractors. Alameda P &T will upgrade the generator system (if required) to provide the reliability required for electronic equipment operation. Alameda P &T will upgrade the generator, perform ongoing generator maintenance and provide fuel for the generator. Heating. Ventilation and Air Conditioning (HVAC) The existing HVAC system will be evaluated and maintenance performed if required by Alameda P &T or its contractors. Alameda P &T will upgrade the HVAC (if required) and provide ongoing maintenance. Fire Protection Alameda P &T or its contractors may install an inert gas fire protection system. This system would be designed to protect the whole building in the event of fire. Exterior Finish Alameda P &T or its contractors will perform maintenance on the exterior of the building to prevent water intrusion, repair necessary fixtures, repair the gate and clean up the enclosed yard area. External maintenance will include refinishing of the exterior building surface.