2003-02-05 ARRA PacketAGENDA
Regular Meeting of the Governing Body of the
Alameda Reuse and Redevelopment Authority
* * * * * * **
Alameda City Hall
Council Chamber, Room 390
2263 Santa Clara Avenue
Alameda, CA 94501
1. ROLL CALL
2. CONSENT CALENDAR
Wednesday, February 5, 2003
Meeting will begin at 5:30 p.m.
City Hall will open at 5:15 p.m.
2 -A. Recommendation to authorize the Executive Director to approve a Consent to Assignment
of Sublease for Simmba Systems, LLC at Alameda Point.
2 -B. Recommendation to authorize $195,523 in additional funds for the Naval Air Station
(NAS) Alameda Replacement Wastewater Interceptor System Project.
3. REGULAR AGENDA ITEMS
None.
4. ORAL REPORTS
4 -A. Oral report from APAC.
4 -B. Oral report from the Executive Director (non- discussion items).
5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT)
(Any person may address the governing body in regard to any matter over which the
governing body has jurisdiction that is not on the agenda.)
6. COMMUNICATIONS FROM THE GOVERNING BODY
7. ADJOURNMENT TO CLOSED SESSION OF THE ARRA TO CONSIDER
CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
7 -A. Property:
Negotiating parties:
Under negotiation:
Alameda Naval Air Station
ARRA, Navy and Alameda Point Community Partners
Price and Terms
ARRA Agenda — February 5, 2003 Page 2
This meeting will be cablecast live on channel 15. The next regular ARRA meeting is
scheduled for Wednesday, March 5, 2003.
Notes:
• Sign language interpreters will be available on request. Please contact the ARRA Secretary, Lucretia Akil at 749-
5800 at least 72 hours before the meeting to request an interpreter.
• Accessible seating for persons with disabilities (including those using wheelchairs) is available.
• Minutes of the meeting are available in enlarged print.
• Audio tapes of the meeting are available for review at the ARRA offices upon request.
Alameda Reuse and Redevelopment Authority
Inter- office Memorandum
January 29, 2003
To: Honorable Members of the
Alameda Reuse and Redevelopment Authority
From: Jim M. Flint
City Manager /Executive Director
Subject:
Background
Recommendation to Authorize the Executive Director to Approve a Consent to
Assignment of Sublease for Simmba Systems, LLC at Alameda Point
Simmba Systems, LLC, a document storage company, occupies approximately 80,000 square feet at
Building 9 at Alameda Point. The term of its lease is five (5) years beginning June 1, 1998 through May
31, 2003. Simmba Systems also has an option to renew for two consecutive five (5) year terms.
Discussion /Analysis
Simmba Systems is experiencing tremendous growth at Alameda Point. In anticipation of continued
expansion, Simmba Systems is merging its assets into a new entity, GRM Information Management
Systems of San Francisco LLC, doing business as Simmba/GRM Information Management Services. As
such, Simmba Systems has requested and APCP has concurred, that its current Sublease be assigned to the
new company. The Consent to Assignment of Sublease (without attachments) is attached. The complete
Consent to Assignment of Sublease documents are on file with the City Clerk.
Fiscal Impact
None
Recommendation
The Executive Director recommends that the ARRA authorize the Executive Director to approve this
Consent to Assignment for Simmba Systems to Simmba/GRM Information Management Services.
Attachment: Consent to Assignment
JF/DP /la
Respectfully Submitted,
James M. Flint
City Manager /Executive Director
By: Debbie Potter
Base Reuse and Redevelopment Manager
Dedicated to Excellence, Committed to Service
G: \Comdev\Base Reuse& Redevp \ARRA \STAFFREP\2003\Simmba Assig ment.020503.rtf
Appendix G
CONSENT TO ASSIGNMENT OF SUBLEASE
THIS CONSENT TO ASSIGNMENT OF SUBLEASE is entered into on this day of January,
2003, by and between SIMMBA Systems, L.L.C. ( "Simmba ") and Alameda Reuse and Redevelopment
Authority ( "Landlord ") in order to evidence Landlord's consent to Simmba's assignment of all of its
rights asSublessee under that certain Agreement of Sublease, dated June 15, 1998, as amended on July 6,
2000 and March 9, 2001 (the "Sublease "), a copy of which is attached hereto as Exhibit A.
The parties hereby agree and stipulate as follows:
I. Landlord consents to the assignment of Simmba's rights under the Sublease to GRM
Information Management Services of San Francisco, LLC, a Delaware limited liability
company (the "Assignee "). The assignment shall be effective as of the closing of.the sale
of substantially all of the assets of Simmba to Assignee (the "Closing "), provided that if
the Closing does not occur on or before February , 2003, this instrument shall he null
and void and of no further force and effect,
2. Landlord acknowledges that, as of the date of this Consent, (a) Simmba has paid all rents,
(b) to Landlord's knowledge, Simmba has complied with all of the terms and conditions
of the Sublease, and (c) the Sublease is in full force and effect.
3. Landlord acknowledges that after the Closing, Assignee shall assume and agree to be
bound by and perform all covenants, conditions, obligations and duties of Simmba under
the Sublease to be performed after the date of the Closing and shall have the same rights
under the Sublease as if it were the original tenant thereunder and shall be entitled to the
benefits of all of the covenants on the part of the Landlord to be performed under the
Sublease. Landlord agrees that Simmba shall remain sole ly responsible for and shall
perform all of its covenants, conditions, obligations and duties under the Sublease to be
performed on or prior to the date of the Closing, and that Assignee shall have no
obligation with respect thereto.
4. The assignment of Simmba's rights under the Sublease shall be evidenced by the
Assignuncnt of Sublease, the form of which is attached hereto as Exhibit 13,
5. All of the remaining; terms and conditions set forth in the Sublease shall remain in full
force and effect and are hereby ratified, confirmed and continued by the undersigned in
all respects.
IN WITNESS WHEREOF, the undersigned has executed this Consent as of the date first written
above.
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Alameda Reuse and Redevelopment Authority
Inter - office Memorandum
January 29, 2003
To: Honorable Members of the
Alameda Reuse and Redevelopment Authority
From: James M. Flint
City Manager /Executive Director
2 -B
Subject: Recommendation to Authorize Additional Funds Totaling $195,523 for Naval Air
Station (NAS) Alameda Replacement Wastewater Interceptor System Project
Background
On May 4, 1999, the City Council authorized the City Manager to enter into an agreement with the
Port of Oakland and East Bay Municipal Utility District (EBMUD) for the design of the Alameda
Point Estuary Sewer Relocation project also known as Naval Air Station (NAS) Alameda
Replacement Wastewater Interceptor System Project. The main sewer line for Alameda Point was
upgraded and relocated from its southerly estuary crossing to a new crossing near the existing
EBMUD interceptor at the Webster Street tube. The project was built in three phases:
Phase 1 - Discharge Pipe - a new force main from Alameda Point Pump Station No. 1 to the
EBMUD junction structure near the Webster Street Tube,
Phase 2 - Estuary Crossing - a new siphon across the estuary near the Webster Street Tube,
Phase 3 - Pump Station Upgrades - structural, mechanical, and building upgrades for Naval Air
Station Pump Station No. 1
At the March 7, 2000, City Council meeting, the City Council authorized the City Manager to enter
into an agreement for construction of these facilities and authorized $3,600,000 for the project. On
June 5, 2001, the City Council authorized additional funds for the project to cover added work items
associated with pump station upgrades. The added work included new generators, making the
generator building compatible with the historic district, adding pile foundations to compensate for
poor soils, converting to a two -speed pump to accommodate for the large discrepancy between
existing and future flows, including manned operations for by -pass flows during construction, and
landscaping. Although the total cost of these items was estimated at $800,000, staff requested only
$500,000 since, at the time, EBMUD projected estimated savings of $300,000 from the Phase 1
Discharge Pipeline portion of the project. These savings were not realized due to increased
construction and design costs associated with poor soil conditions and structural complications
connecting to the junction structure.
Dedicated to Excellence, Committed to Service
Honorable Members of the
Alameda Reuse and Redevelopment Authority
DISCUSSION /ANALYSIS
Page 2
January 29, 2003
In July 2002, EBMUD notified Public Works staff that the final accounting on the Estuary Sewer
project may result in a request for additional funds of up to $600,000 due to claims filed by the
design Consultant and contractor. Staff initially reviewed the claims with EBMUD and negotiated a
maximum exposure for Alameda of $350,000. The Alameda Point Transition Team included this
amount in their budget.
On December 11, 2002, Public Works received a final cost accounting from EBMUD for this
project. The final invoice from EBMUD was delayed due to a contract claims resolution process
with their design consultant. Based on this final accounting, EBMUD requested the City provide an
additional $294,687 to cover unanticipated project design costs.
The agreement between the City and EBMUD requires EBMUD to obtain prior written authorization
for cost increases. EBMUD did not receive prior written authorization from the City for these
expenditures. Prior authorization was not possible since these added costs were associated with
contract claims resolution. In addition, the estimated construction savings from the Phase 2
Discharge Pipe, which were expected to cover a portion of the Phase 3 increased costs, did not
materialize due to unanticipated and unforeseen Phase 2 construction issues.
Although the City is not obligated to pay these costs, City staff has reviewed the final accounting and
determined that several items were justified and directly benefit the City. These items include: added
costs for right of way engineering associated with modified discharge pipe alignment needed to
avoid conflicts with unknown utilities and structures; re- design of attachment to wharf structure to
enhance stability; and addition of a generator building and landscaping requested by the City to
improve compatibility with adjacent land uses. Based on this analysis, City staff has negotiated a
lower cost of $195,523 for added work. This cost is net of interest owed to the City by EBMUD.
As part of the agreement, EBMUD will assume responsibility for NAS Pump Station #1 and
Discharge Pipeline. The City is required to provide an easement for the Discharge Pipeline, and
quitclaim its ownership in all the real estate associated with NAS Pump Station #1 to EBMUD.
Since the NAS Pump Station #1 property is within State Tidelands jurisdiction, the City will
provide EBMUD a long -term temporary easement for the NAS Pump . Station #1. The City had
previously recorded an easement for the Discharge Pipeline, which requires modification to meet
"as- built" conditions. The introduction of ordinance to authorize these easements was addressed at
the February 4, 2003, City Council meeting.
Fiscal Impact
There is no impact to the City's General Fund associated with this project. The project was funded
using $2,300,000 in sewer funds and $1,800,000 in Alameda Point bond proceeds. The sewer fund
Dedicated to Excellence, Committed to Service
Honorable Members of the
Alameda Reuse and Redevelopment Authority
Page 3
January 29, 2003
was reimbursed $1,000,000 from land sale proceeds from the Port of Oakland for a portion of FISC
properties required for the Port's turning basin. Another $500,000 is being reimbursed to the sewer
fund from Alameda Point lease payments at approximately $65,000 per year. The Transition Team
budget included funds from Alameda Point lease revenues for this item; however Alameda Point
bonds could also be used for this purpose.
Recommendation
The Executive Director recommends that the ARRA authorize $195,523 in a combination of
Alameda Point Lease Revenues and Alameda Point Bond funds for this project.
Respectfully submitted,
James M. Flint
City Manager/Executive Director
For: Cheri R. Sheets
Deputy Public Works Director /City Engineer
JF /MTN:dl
cc: Nanette Banks
Sally Kueh
David Brandt
G: \PUB WORKS \P WADM IN \COUNC IL\2003 \020403 \NASsewerfunding.doc
Dedicated to Excellence, Committed to Service
AGENDA
Special Meeting of the Governing Body of the
Alameda Reuse and Redevelopment Authority
* * * * * * **
Alameda City Hall
Council Chamber, Room 391
2263 Santa Clara Avenue
Alameda, CA 94501
1. ROLL CALL
Friday, February 7, 2002
Meeting will begin at 5:30 p.m.
City Hall will open at 5:15 p.m.
2. ADJOURNMENT TO CLOSED SESSION OF THE ARRA TO CONSIDER
CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
2 -A. Property:
Negotiating parties:
Under negotiation:
Alameda Naval Air Station
ARRA, Navy and Alameda Point Community Partners
Price and Terms
3. ANNOUNCEMENT of ACTION TAKEN in CLOSED SESSION, if any.
4. Public Comment on Non - Agenda Items Only.
Anyone wishing to address the Board on agenda items only, may speak for a
maximum of 3 minutes per item.
5. ADJOURNMENT
Notes:
• Sign language interpreters will be available on request. Please contact Lucretia Akil, ARRA Secretary,
at 749 -5800 at least 72 hours before the meeting to request an interpreter.
• Accessible seating for persons with disabilities (including those using wheelchairs) is available.
• Minutes of the meeting are available in enlarged print.
AGENDA
Special Meeting of the Governing Body of the
Alameda Reuse and Redevelopment Authority
* * * * * * **
Alameda City Hall
Council Chamber, Room 391
2263 Santa Clara Avenue
Alameda, CA 94501
1. ROLL CALL
Wednesday, February 26, 2002
Meeting will begin at 5:30 p.m.
City Hall will open at 5:15 p.m.
2. ADJOURNMENT TO CLOSED SESSION OF THE ARRA TO CONSIDER
CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
2 -A. Property:
Negotiating parties:
Under negotiation:
Alarneda Naval Air Station
ARRA, Navy and Alameda Point Community Partners
Price and Terms
3. ANNOUNCEMENT of ACTION TAKEN in CLOSED SESSION, if any.
4. Public Comment on Non - Agenda Items Only.
Anyone wishing to address the Board on agenda items only, may speak for a
maximum of 3 minutes per item.
5. ADJOURNMENT
Notes:
• Sign language interpreters will be available on request. Please contact Lucretia Akil, ARRA Secretary,
at 749 -5800 at least 72 hours before the meeting to request an interpreter.
• Accessible seating for persons with disabilities (including those using wheelchairs) is available.
• Minutes of the meeting are available in enlarged print.