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HomeMy WebLinkAboutItem 4.4 Fire Dept Maint Facility Agmt STAFF REPORT CITY CLERK File # 600-40 CITY COUNCIL DATE:April 16, 2013 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Amendment to Maintenance Facility Use Agreement with Alameda County Fire Department Prepared by Linda Smith, Economic Development Director/Public Information Officer and Jacqui Diaz, Special Projects Manager EXECUTIVE SUMMARY: The City of Dublin contracts for fire services with the Alameda County Fire Department (ACFD). The City Council and ACFD entered into two agreements in June 2012 which would allow the ACFD administrative offices and maintenance facility to relocate from San Leandro to Dublin in early 2014. This report provides an update and proposed amendment to the July 12, 2012 ACFD Maintenance Facility Use Agreement. FINANCIAL IMPACT: As previously agreed, the City of Dublin has received a one-time payment of $3.7 million from ACFD to help offset the costs of constructing a new Maintenance Facility. The July 2012 Agreement outlined that the City would provide a Temporary Maintenance Facility to be occupied prior to completion of the Permanent Maintenance Facility. The one-time payment included $200,000 that was to be applied to the temporary facility as rent. The temporary facility is no longer required by ACFD; therefore the proposed Amendment to the Agreement reflects that the $200,000 would now be applied as pre-paid base rent for the permanent Maintenance Facility. Upon completion of the permanent facility, the City will receive monthly rent from ACFD for both the administrative offices as well as the maintenance facility for 5-years and 20-years, respectively. This Amendment is fiscally neutral to the actions of the previous Agreement. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution approving the proposed amendment to the agreement with the Alameda County Fire Department. Submitted By Reviewed By Economic Development Director Assistant City Manager DESCRIPTION: ITEM NO. 4.4 Page 1 of 2 The City of Dublin and the Alameda County Fire Department (ACFD) entered into two agreements in June 2012 to relocate the ACFD Administrative Offices, as well as the ACFD Maintenance Facility, from San Leandro to Dublin beginning in early 2014. At the June 19, 2012 meeting, the City Council adopted a resolution approving Facility Use Agreements for the Alameda County Fire Department’s (ACFD) Administrative Offices and the Maintenance Facility. At the time of adoption, ACFD had a need for administrative offices, as well as for both temporary and permanent facility maintenance space for the maintenance, repair and testing of vehicles and apparatus. The Resolution stated that the City would allow ACFD to use 6363 Clark Avenue as a Temporary Maintenance Facility prior to the completion of the permanent Maintenance Facility at 5777 Scarlett Court. The Use Agreement identified a $3.7 million dollar up-front payment from ACFD to offset a portion of the City’s construction expenses, which included a $200,000 payment that ACFD would make to the City as a base rent payment for the temporary facility for approximately 12-16 months while the new ACFD Maintenance Facility is constructed. Due to alterations made to the bid and construction calendar, the use of the Temporary Maintenance Facility is no longer desired by ACFD. Both City Staff and ACFD desire to amend the Agreement to reflect the City’s elimination of the obligation to provide the Temporary Maintenance Facility. The proposed Amendment (Exhibit A to Attachment 1) reflects this change. The proposed amendment results in no change to the agreed rent payments. This action redirects the aforementioned $200,000 to become pre-paid base rent for the permanent facility rather than to the temporary facility. The proposed Resolution (Attachment 1) approves the First Amendment to the Maintenance Facility Use Agreement with ACFD. Exhibit A to Attachment 1 is the Amended and Restated Maintenance Use Agreement reflecting the proposed changes. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of this Staff Report was provided to the Alameda County Fire Department. ATTACHMENTS: 1. ResolutionApproving an Amended and Restated Maintenance Facility Use Agreement between the City of Dublin and the Alameda County Fire Department 2. Exhibit A to Resolution, Amended Agreement Page 2 of 2 RESOLUTION NO. XX – 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************** APPROVING AN AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE ALAMEDA COUNTY FIRE DEPARTMENT (SCARLETT COURT) WHEREAS, the City of Dublin and the Alameda County Fire Department entered into a Maintenance Facility Use Agreement on June 12, 2012 for the maintenance, repair and testing of vehicles and apparatus; and WHEREAS, pursuant to the Agreement, the City agreed to construct a maintenance facility for ACFD’s use on City-owned property on Scarlett Court in exchange for certain consideration described in the Agreement; and WHEREAS, the Agreement also provide that the City would, in exchange for certain consideration, provide ACFD with a Temporary Maintenance Facility to occupy beginning in the first quarter of 2013 until such time as the Permanent Maintenance Facility improvements were completed and the premises delivered to ACFD; and WHEREAS, ACFD no longer desires to occupy the Temporary Maintenance Facility, and the Parties desire to amend the Agreement to reflect the elimination of the City’s obligation to deliver the Temporary Maintenance Facility; and NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Dublin does hereby approve the Amended and Restated Maintenance Facility Use Agreement. th PASSED, APPROVED AND ADOPTED this 16 day of April, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________ Mayor ATTEST: ___________________ City Clerk AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT (Scarlett Court) This Amended and Restated Maintenance Facility Use Agreement (this Amended and Restated Agreement “”) amending and restating that certain Maintenance Agreement Facility Use Agreement dated as of July 1, 2012 (the “”) is entered into as of City April 16, 2013 by and between the CITY OF DUBLIN (“”), a California municipal ACFD” corporation, and ALAMEDA COUNTY FIRE DISTRICT (“), a dependent fire district formed under the Fire Protection District Law of 1961 (Health and Safety Code Sections 13801 et seq.) and governed by the Alameda County Board of Supervisors. City Parties and ACFD are hereinafter referred to collectively as the “.” RECITALS WHEREAS, pursuant to the Agreement, City agreed to construct a maintenance facility for ACFD’s use on property owned by City in exchange for certain consideration described in the Agreement; and WHEREAS, the Agreement also provided that City would, in exchange for certain consideration, provide ACFD with a Temporary Maintenance Facility to occupy beginning in the first quarter of 2013 until such time as the Permanent Maintenance Facility improvements were completed and the Premises delivered to ACFD; and WHEREAS, ACFD no longer desires to occupy the Temporary Maintenance Facility, and the Parties desire to amend the Agreement to reflect the elimination of the City’s obligation to deliver the Temporary Maintenance Facility; and WHEREAS , all capitalized terms used and not defined in this Amendment have the same meaning as set forth in the Agreement. NOW THEREFORE, the City and ACFD agree as follows. ARTICLE I BASIC PROVISIONS City’s mailing address 1.1 : City of Dublin, 100 Civic Plaza, Dublin, CA 94568. City’s contact: . 1.2 Joni Pattillo, City Manager. Telephone: (925)833-6650 ACFD’s mailing address 1.3 : 835 East 14th Street, Suite 200, San Leandro, CA 94577, with a copy to ACFD at the Premises. ACFD’s contact 1.4 : Deputy Chief of Administration, currently Chief Demetrious N. Shaffer. Telephone: (510) 618-3490. 1 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Maintenance Facilityaddress: 5777 1.5 Scarlett Court, Dublin, CA 94568. Deleted. 1.6 Commencement Date: 1.7 the date upon which City delivers possession of the Premises to ACFD, anticipated to be January 2014. The specific date will be identified in the Memorandum Confirming Commencement Date and Total Project Costs (attached hereto as Exhibit A-2) which will be completed and executed by the Parties when a definitive date and Total Project Costs are determined. Term: 1.8 Starting on the Effective Date and continuing until the Expiration Date (defined in the following section). th Expiration Date: 1.9 The last day of the month in which the twentieth (20) anniversary of the Commencement Date occurs. Option(s) to Extend Term: 1.10 None. Base Rent for Maintenance Facility: 1.11 As Base Rent for use of the Premises, ACFD will pay the City as follows (adjusted as described below): Year Annual Base Rent Monthly Base Rent 1 $129,821 $10,818.42 2 $129,821 $10,818.42 3 $137,610 $11,467.50 4 $137,610 $11,467.50 5 $145,867 $12,155.58 6 $145,867 $12,155.58 7 $154,619 $12,884.92 8 $154,619 $12,884.92 9 $163,896 $13,658.00 10 $163,896 $13,658.00 11 $173,730 $14,477.50 12 $173,730 $14,477.50 13 $184,154 $15,346.17 14 $184,154 $15,346.17 2 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 15 $195,203 $16,266.92 16 $195,203 $16,266.92 17 $206,915 $17,242.92 18 $206,915 $17,242.92 19 $219,330 $18,277.50 20 $219,330 $18,277.50 Total $3,422,290.00 The Base Rent specified in this Section 1.11A is an estimate based upon an anticipated Total Project Cost equal to Six Million, Seven Hundred and Forty Five Thousand, Five Hundred and Thirty Dollars ($6,745,530), of which ACFD will initially contribute Three Million, Five Hundred Thousand Dollars ($3,500,000) as specified in Section 1.13. The specific formula for determining the Base Rent is set forth in the attached Exhibit B-2. The Total Project Cost is subject to change as the following line items are estimated amounts and subject to change based on actual costs: Building Costs and ACFD Improvements Indirect Costs If the actual costs for the above line items differ from the amounts specified in Exhibit B-2, the Base Rent is subject to modification. When the final and actual Total Project Cost is determined, the Base Rent shall be calculated based thereon, and shall be specified in the Memorandum Confirming Commencement Date and Total Project Costs. Every two (2) years during the Term, Base Rent shall increase 6%, as set forth in Exhibit B-2. ACFD’s Share of Expenses: 1.12 ACFD shall pay 100% of Operating Expenses for the Maintenance Facility. ACFD’s Initial Payment: 1.13 ACFD shall pay to City the sum of Three Million, Initial Payment”) Seven Hundred Thousand Dollars ($3,700,000) (the “ within 60 days following the Effective Date. This Initial Payment includes the sum of Two Hundred Thousand Dollars ($200,000) in prepaid Base Rent to be applied toward the Monthly Base Rent until exhausted. The balance of the Initial Payment constitutes a portion of the cost to construct the Maintenance Facility, and is identified on Exhibit B-2 as “ACFD Contribution.” Permitted Uses: 1.14 Operation of a facility for maintenance, repair and testing of vehicles and apparatus including cars, trucks, fire engines, fire trucks, boats, trailers, heavy equipment, rescue and safety vehicles and other machinery that may be used by ACFD or other entities that provide public services Apparatus (“”) and related administration and training activities, all in 3 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT accordance with Applicable Laws. This includes Apparatus that are maintained and or serviced for other public entities through agreements with ACFD. Parking: 1.15 All parking on the Property shall be for the exclusive use of ACFD. ARTICLE II DEFINITIONS 2.1 Definitions. As used in this Agreement, the following terms shall have the definitions set forth below. Additional terms are defined in the remainder of the Agreement. “ACFD Improvements ” is defined in Exhibit B. “ACFD Parties” is defined in Section 6.1. “ACFD’s Share” is defined in Section 4.5.1.1. Additional Rent” “means any and all sums other than Base Rent which ACFD is or becomes obligated to pay to City under this Agreement (whether or not specifically called “Additional Rent” in this Agreement). Alterations” “ means any alterations, decorations, modifications, additions or improvements made in, on, about, under or contiguous to the Premises by or for the benefit of ACFD including but not limited to, telecommunications and/or data cabling, lighting, HVAC and electrical fixtures, pipes and conduits, partitions, cabinetwork and carpeting. Applicable Laws” “is defined inSection 5.3. “Base Rent” means for each year during the Term, the monthly amount payable for the Premises as set forth in Section 1.11. “Claims” is defined in Section 6.3. “Commencement Date” is the date set forth in Section 1.7 as such may be modified as specified in the Memorandum Confirming Commencement Date and Total Project Costs referenced in Section 1.7. “Common Area” means all areas and facilities located on the Property and used by ACFD, including sidewalks, landscaped areas and similar areas and facilities that are also shared with others. The Common Areas of the Property will be included and identified in the Plans. 4 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Environmental Laws” “ is defined in Section 6.6. “Hazardous Material” is defined in Section 6.5. “Improvements” means the Permanent Maintenance Facility and all other improvements constructed or installed on the Property, including, without limitation, a parking lot, driveways, lighting and landscaping. “Indemnitees” is defined in Section 6.3. Maintenance Facility “” means the facility to be constructed by City on the Property pursuant to this Agreement. Memorandum” “means the Memorandum Confirming Commencement Date and Total Project Costs to be executed by the Parties substantially in the form attached hereto as Exhibit B-2, and which shall specify the Commencement Date and the Base Rent. Operating Expenses” “ is defined in Section 4.5.1. “Passthrough Expenses” is defined in Section 4.7. “Plans” is defined in Exhibit B. Premises” “ means the Property and the Improvements, including the Maintenance Facility, and all other Improvements on the Property. “Project” means the development of the Maintenance Facility on the Property, including without limitation, completion of all related site preparation and construction work necessary to prepare the Maintenance Facility and the Premises for ACFD’s occupancy pursuant to this Agreement. Property” “ means the westernmost portion of the real property owned by City and located in the City of Dublin at 5777 Scarlett Court, as depicted in Exhibit A-1 attached hereto and that will be used exclusively by ACFD. The Property is a portion of Alameda County Assessor’s Parcel No. 941-0550-029, and is more particularly described in Exhibit A-1. “Property Taxes” is defined in Section 4.6. “Rent” means Base Rent and Additional Rent, collectively. “Term” means the term of this Agreement as set forth in Section 1.8, as such may be extended pursuant to the terms hereof. 5 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT “Total Project Cost” means City’s cost to complete the Project, including without limitation, demolition, site preparation, and construction as more particularly described in Exhibit B-2. ARTICLE III PREMISES AND TERM 3.1 Use of Premises. Subject to and upon the terms and conditions set forth herein, City hereby agrees to allow ACFD the use of the Premises, and ACFD hereby agrees to use the Premises in accordance with the terms of this Agreement. ACFD acknowledges that City has made no representation or warranty regarding the condition of the Property or the Improvements except as specifically stated in this Agreement, including all exhibits, or as specified in the Plans as they may be amended and accepted by ACFD and City. 3.2 Term and Commencement. The Term of this Agreement shall commence on the Effective Date, and unless sooner terminated as provided herein, the Term shall be for the period set forth in Section 1.8. 3.3 Delay in Delivery of Premises. If City fails to deliver possession of the Premises to ACFD on or before the anticipated Commencement Date set forth in Section 1.7, City shall not be subject to any liability for its failure to do so. This failure shall not affect the validity of this Agreement or the obligations of ACFD hereunder. 3.4 Early Access. ACFD shall not occupy the Premises prior to the Commencement Date except with the express prior written consent of City. Provided that (i) this Agreement has been executed by ACFD and City, and (ii) ACFD, if requested, has provided to City proof of insurance coverage for all insurance that ACFD is required to maintain under this Agreement, ACFD shall be permitted access to the Premises prior to the Commencement Date for the purpose of installing ACFD’s fixtures and equipment, but not for the purpose of performing maintenance of Apparatus on the Premises. If ACFD is provided access to the Premises prior to the Commencement Date, all of the terms and provisions of this Agreement shall apply to ACFD’s use of the Premises except for the requirement for the payment of Rent, and ACFD shall abide by all of such terms and provisions. 3.5 No Representations. ACFD acknowledges that neither City nor any of City’s agents has made any representation or warranty as to the suitability or fitness of the Premises for the conduct of ACFD’s business, and that neither City nor any of City’s agents has agreed to undertake any alterations or additions or to construct any improvements to the Premises except as expressly provided in this Agreement and the Plans. 3.6 Intentionally omitted. 6 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT ARTICLE IV RENT, OPERATING EXPENSES, TAXES AND SECURITY DEPOSIT 4.1 Monthly Rent. From and after the Commencement Date, ACFD shall pay to City for each calendar month of the Term, the monthly Base Rent set forth in Section 1.11. Each monthly installment of Base Rent shall be due and payable to City in lawful money of the United States, in advance, on the first (1st) day of each calendar month during the Term, without abatement, deduction, claim or offset(unless the Parties mutually agree to allow an abatement, deduction, claim or offset), and without prior notice, invoice or demand, at City’s address set forth in Section 1.1 or such other place as City may designate from time to time. ACFD’s payment of Base Rent for the first month of the Term shall be delivered to City on the Commencement Date. 4.2 Prorations. Monthly installments for any fractional calendar month at the beginning or end of the Term shall be prorated based on the number of days in such month. 4.3 Additional Rent. All Additional Rent, including without limitation, ACFD’s Share of Passthrough Expenses (defined below) and ACFD’s Share of Property Taxes shall be due and payable to City in lawful money of the United States without abatement, deduction, claim or offset within thirty (30) days of receipt of City’s invoice or statement for same (or if this Agreement provides another time for the payment of certain items of Additional Rent, then at such other time) at City’s address set forth in Section 1.1 or such other place as City may designate from time to time. 4.4 Late Charge. ACFD acknowledges that the late payment of Rent will cause City to incur administrative costs and other damages, the exact amount of which would be impracticable or extremely difficult to ascertain. City and ACFD agree that if City does not receive any such payment within ten (10) calendar days after such payment is due, ACFD shall pay to City as Additional Rent an amount equal to five percent (5%) of the overdue amount as a late charge for each month or partial month that such amount remains unpaid. The Parties acknowledge that this late charge represents a fair and reasonable estimate of the costs that City will incur by reason of the late payment by ACFD. Acceptance of any late Rent and late charge therefore shall not prevent City from exercising any of the other rights and remedies available to City for any other Event of Default under this Agreement. 4.5 Common Area Charges, Operating Expenses and Taxes. 4.5.1 ACFD to Pay all Operating Expenses. ACFD shall be solely responsible for payment of all operating expenses associated with the Premises Operating Expenses (“”), including without limitation, all costs associated with the maintenance, repair, management and operation of the Improvements and the Property, including, but not limited to the following: repair and maintenance of the roof, 7 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT foundation and exterior walls of the Improvements; periodic painting of the Improvements; periodic cleaning of the exterior windows of the Improvements; landscaping services; pest control; operation, maintenance and repair of equipment and elevators (if any), utility systems, HVAC systems, mechanical and electrical systems and sanitary and storm drain systems through maintenance contracts or otherwise; maintenance services, repairs to and replacement of asphalt paving, bumpers, striping, light bulbs, light standards, monument and directional signs and lighting systems, perimeter walls, retaining walls, sidewalks, planters, landscaping and sprinkler system in planting areas; any and all assessments levied against the Improvements and/or the Property; water, electrical and other utility services; removal of trash, rubbish and other refuse; cleaning and replacement of signs, including relamping and repairs; costs incurred in connection with compliance with any laws or changes in laws applicable to the Improvements or the Property, including without limitation any laws or changes in laws regarding Hazardous Material; subject to Section 4.5.1.2, the cost of capital improvements to the Improvements, to the extent of the amortized amount thereof over the useful life of such capital improvements calculated at a market cost of funds, all as reasonably determined by City, for each year of useful life during the Term; the cost of any environmental consultant or other services used in connection with City’s monitoring of the Property with respect to Hazardous Materials, and any other items reasonably necessary from time to time to properly repair, replace, maintain and operate the Improvements and the Property, on no more than an annual basis. If a property manager is hired by City, Operating Expenses shall also include a management fee, of no more than actual costs, consistent with comparable projects in the City of Dublin to cover City’s management, overhead and administrative expenses or City’s payment of professional management fees. 4.5.1.1 Common Area Maintenance. Tenant shall pay fifty percent (50%) ACFD’s Share”) (“of the cost to repair and maintain the Common Area, including without limitation, the cost of sidewalk repairs, repaving, and landscape maintenance and irrigation. 4.5.1.2 Capital Improvements. City and ACFD agree that they will meet and confer to discuss the extent to which the cost of any particular capital improvement that City proposes to undertake with respect to the Improvements shall be included within Operating Expenses or otherwise paid by ACFD. 4.5.2 Exclusions From Operating Expenses. Despite any other provision of Section 4.5.1, Operating Expenses shall not include: (a) depreciation, interest, or amortization on mortgages or ground lease payments; (b) legal fees; (c) real estate brokers’ leasing commissions; (d) any costs expressly excluded from Operating Expenses elsewhere in this Agreement; (e) costs of capital improvements, except as otherwise stated herein; and (f) costs of any items for which City receives reimbursement from insurance proceeds or a third party. 4.6 Taxes. Both Parties are exempt from payment of most taxes; however, for PropertyTaxes” purpose of this Agreement, the term “ shall mean any form of tax, 8 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT assessment, charge, license, fee, rent tax, levy, penalty (if a result of ACFD’s delinquency), real property or other tax now or hereafter imposed with respect to the Improvements or the Property or any part thereof (including any Alterations), this Agreement or any Rent payable under this Agreement by any authority having the direct or indirect power to tax, or by any city, county, state or federal government or any improvement district or other district or division thereof, whether such tax or any portion thereof (i) is determined by the area of the Improvements or the Property, or any part thereof or the Rent payable under this Agreement by ACFD, including, but not limited to any gross income or excise tax levied by any of the foregoing authorities with respect to receipt of Rent due under this Agreement, (ii) is levied or assessed in lieu of, in substitution for, or in addition to, existing or additional taxes with respect to the Improvements or the Property or any part thereof whether or not now customary or within the contemplation of City or ACFD, or (iii) is based upon any legal or equitable interest of City in the Improvements or the Property or any part thereof. ACFD and City intend that all Property Taxes, including without limitation all new and increased assessments, taxes, possessory interest taxes charged or levied in place of real property taxes, fees, levies, and charges and all similar assessments, taxes, fees, levies and charges shall be included within the definition of “Property Taxes” for purposes of this Agreement. 4.6.1 Apportionment of Taxes. If the Improvements and the Property are assessed as part of a larger parcel, then City shall equitably apportion the Property Taxes and reasonably determine the Property Taxes attributable to the Improvements. If other buildings exist on the assessed parcel, the Property Taxes apportioned to the Improvements shall be based upon the ratio of the square footage of the Improvements to the square footage of all buildings on the assessed parcel. 4.6.2 Tax on Improvements. Notwithstanding anything to the contrary set forth in this Agreement, ACFD shall pay prior to delinquency any and all taxes, fees and charges which are levied or assessed against City or ACFD: (a) upon ACFD's equipment, furniture, fixtures, improvements and other personal property located on the Property or in the Improvements, (b) by virtue of any alterations or leasehold improvements made to the Property or Improvements by ACFD, and (c) upon this transaction or any document to which ACFD is a party creating or transferring an interest or an estate in the Premises. City shall promptly notify ACFD of any tax, fee or charge. If any such tax, fee or charge is paid by City, ACFD shall reimburse City for City’s payment upon demand. 4.7 Payment of Operating Expenses and Taxes. ACFD shall pay to City ACFD’s Share (as defined in Section 4.5.1) of Common Area Expenses, ACFD’s share of Real Property Taxes (as determined pursuant to Section 4.6.1), and all Operating Expenses attributable to the Premises that are not directly billed to ACFD (all of the foregoing, Passthrough Expenses collectively “”) as follows: on the Commencement Date (or as soon thereafter as is reasonably practicable) and thereafter prior to the commencement of each calendar year during the Term, City shall give ACFD a written estimate of ACFD’s Share of Passthough Expenses for the ensuing calendar year. Commencing on the 9 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Commencement Date and continuing thereafter throughout the Term, ACFD shall pay, as an item of Additional Rent, such estimated amount in equal monthly installments, in advance, on or before the first day of each calendar month. If City has not furnished its written estimate by the time set forth above, ACFD shall pay monthly installments of Passthrough Expenses at the rate established for the prior calendar year, if any; provided that when the new estimate is delivered to ACFD, as applicable, ACFD shall at the next monthly payment date pay City any accrued deficiency based on the new estimate, or City shall credit any accrued overpayment based on such estimate toward ACFD’s next installment payment hereunder. Within a reasonable period of time after the end of each calendar year during the Term (but in no event more than 180 days after the end of each Annual Statement” year), City shall furnish ACFD a statement (“) showing in reasonable detail ACFD’s Share of the actual Passthrough Expenses incurred for the period in question; provided, however, with respect to the calendar year during which this Agreement expires or sooner terminates, City may, at its election, provide ACFD with an Annual Statement prior to the end of such year based on estimated Operating Expenses, as determined by City. If ACFD’s estimated payments are less than ACFD’s Share of actual Passthrough Expenses as shown by the applicable Annual Statement, ACFD shall pay the difference to City within thirty (30) days following delivery of the Annual Statement. If ACFD shall have overpaid City, City shall credit such overpayment toward ACFD’s next installment payment hereunder or if no installment payment is due, refund the amount to ACFD within thirty (30) days. When the Annual Statement is furnished to ACFD for the calendar year in which this Agreement expires or sooner terminates: (i) ACFD shall, even if this Agreement has expired or terminated, pay to City within thirty (30) days after notice, any additional sum payable by ACFD in excess of the estimate previously provided, and (ii) City shall rebate any overpayment to ACFD within thirty (30) days following delivery of the Annual Statement. If City determines at any time that the estimate of ACFD’s Share of Passthrough Expenses for the current year is or will become inadequate to meet ACFD’s Share of all such Passthrough Expenses for any reason, City may, at its election, determine the approximate amount of such inadequacy and issue a supplemental estimate, and ACFD shall pay any increase as reflected by such supplemental estimate. City shall keep or cause to be kept separate and complete books covering all Passthrough Expenses and showing the method of calculating ACFD’s Share of Passthrough Expenses, and shall preserve for at least twelve (12) months after the close of each year all material documents evidencing such Passthrough Expenses for that year. For a period of 180 days following ACFD’s receipt of an Annual Statement, ACFD, at its sole cost and expense, through a representative designated by ACFD and reasonably approved by City, shall have the right upon written notice to City, during reasonable business hours at City’s offices, to examine and/or audit the books and documents evidencing such costs and expenses for the period covered by the applicable Annual Statement, provided that ACFD is not then in default under this Agreement. Any delay or failure by City in delivering any estimate or statement pursuant to this Section shall not constitute a waiver of its right to require ACFD to pay ACFD’s Share of Passthrough Expenses, pursuant hereto. 10 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT ARTICLE V USE OF PREMISES 5.1 Permitted Use. The Premises shall be used solely for the purposes set forth in Section 1.14 and for no other purpose without the written consent of City, which may be granted or withheld in City’s reasonable discretion. ACFD shall not do or suffer or permit anything to be done in or about the Premises nor bring or keep anything therein that would in any way subject City to any liability, increase the premium rate of or affect any fire, casualty, rent or other insurance relating to the Property or the Improvements, or cause a cancellation of, or give rise to any defense by the insurer to any claim under, or conflict with, any insurance coverage. If any act or omission of ACFD results in any such increase in premium rates, ACFD shall pay to City upon demand the amount of such increase. Other than as specified in the Plans, no underground fuel storage tanks may be located at the Premises without City’s prior written approval, and City may condition such approval upon ACFD’s provision of proof of adequate insurance coverage for such purpose. ACFD may keep on the Premises receptacles for storage of chemicals including fuel, oil, coolants, fire foams and other fluids associated with the maintenance, repair and testing of Apparatus, provided that all such receptacles are stored, used, transported and maintained in compliance with all Applicable Laws. 5.2 Signage. ACFD shall obtain the prior approval of the City, which approval will not be unreasonably withheld, before placing any sign or symbol on or about the Premises. Upon expiration or termination of this Agreement, all signs installed by ACFD shall be removed and any damage resulting therefrom shall be promptly repaired by ACFD, or such removal and repair may be done by City and the cost charged to ACFD as Rent. 5.3 Compliance with Laws. ACFD shall procure and maintain all governmental approvals, licenses and permits required for the proper and lawful conduct of ACFD’s permitted use of the Premises. ACFD shall throughout the Term comply with and shall not use the Premises or suffer or permit anything to be done in or about the same which would in any way conflict with any of the following (collectively Applicable Laws”) “: (i) the provisions of all recorded covenants, conditions and restrictions applicable to the Property, or (ii) any federal, state, county, local or other governmental agency rules, regulations, statutes, ordinances, orders, standards, requirements or laws now in force or hereafter enacted, promulgated or issued which are applicable to the Premises, or the use or occupancy thereof, including without limitation building, zoning, and fire codes and regulations. 5.4 Repairs, Replacements and Maintenance. ACFD shall, at ACFD’s sole expense, keep the Property and the Improvements in good condition in compliance with Applicable Laws, and ACFD shall, at ACFD’s sole expense promptly make all repairs, replacements, alterations, or improvements necessary to comply with all Applicable Laws and/or to maintain the Property and the Improvements in good condition and repair. 11 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT ARTICLE VI ENVIRONMENTAL MATTERS 6.1 Use of Hazardous Materials. ACFD shall not cause or permit any Hazardous Material to be generated, brought onto, used, stored, or disposed of in or about the Property or the Improvements by ACFD or ACFD’s agents, employees, contractors, ACFD Parties”) or invitees (collectively “, except for limited quantities of standard office and janitorial supplies and other standard materials and supplies used in connection with the maintenance, repair and testing of Apparatus, including gasoline and oil. At ACFD’s sole cost and expense, ACFD shall use, store and dispose of all such Hazardous Materials in strict compliance with all Environmental Laws, and shall in all other respects comply with all Environmental Laws. 6.2 Notice of Release or Investigation. If during the Term of this Agreement (including any extensions), ACFD becomes aware of (a) any actual or threatened unauthorized release of any Hazardous Material in, on, under, or about the Improvements or the Property, or (b) any inquiry, investigation, proceeding, or claim by any government agency or other person regarding the presence of Hazardous Material in, on, under, or about the Improvements or the Property, other than routines inspections, ACFD shall give City written notice of the release or investigation within five (5) days after learning of it and shall simultaneously furnish to City copies of any claims, notices of violation, reports, or other writings received by ACFD that concern the release or investigation. 6.3 Indemnification. ACFD shall defend (with counsel acceptable to City), indemnify and hold harmless City and City’s elected and appointed officers, officials, Indemnitees employees, agents and representatives (collectively, “”) from and against any and all liabilities, losses, damages, fines, deficiencies, penalties, claims, demands, suits, actions, causes of action, legal or administrative proceedings, judgments, costs and expenses (including without limitation reasonable attorneys’ fees and expenses, court costs, expert witness fees and post judgment collection costs) (all of the foregoing, Claims”) collectively “resulting or arising from or in connection with any release of any Hazardous Material in or about the Improvements or the Property or any other violation of any Environmental Law by ACFD, or ACFD’s agents, assignees, sublessees, contractors, or invitees. This indemnification includes: (i) losses attributable to diminution in the value of the Property or the Improvements, (ii) loss or restriction of use of the Property or the Improvements, and (iii) all other liabilities, obligations, penalties, fines, claims, actions (including remedial or enforcement actions of any kind and administrative or judicial proceedings, orders, or judgments), damages (including consequential and punitive damages), and costs (including attorney, consultant, and expert fees and expenses) resulting from the release or violation. The indemnity provided in this Section shall not extend to Claims to the extent the same are caused by the negligence or willful misconduct of Indemnitees. The provisions of this Section shall survive the expiration or termination of this Agreement. 12 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 6.4 Remediation Obligations. If the presence of any Hazardous Material, brought onto the Premises by ACFD or ACFD’s employees, agents, contractors, or invitees results in contamination of the Property, the Improvements or any part thereof, ACFD shall promptly take all necessary actions to remove or remediate such Hazardous Materials, whether or not they are present at concentrations exceeding state or federal maximum concentration or action levels, or any governmental agency has issued a cleanup order, at ACFD’s sole expense, to return the Property and the Improvements to the condition that existed before the introduction of such Hazardous Material. ACFD shall first obtain City’s approval of the proposed removal or remedial action. This provision does not limit the indemnification obligation set forth in Section 6.3. This Section is not intended to impair ACFD’s right to use Hazardous Materials on the Premises consistent with the provisions of this Agreement and in compliance with all Applicable Laws. 6.5 Definition of Hazardous Material. As used in this Agreement, the term Hazardous Material “” means any hazardous or toxic substance, material, or waste at any concentration that is or becomes regulated by the United States, the State of California, or any government authority having jurisdiction over the Property or the Improvements. Hazardous Material includes: (a) any “hazardous substance,” as that term is defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) (42 United States Code sections 9601-9675); (b) “hazardous waste,” as that term is defined in the Resource Conservation and Recovery Act of 1976 (RCRA) (42 United States Code sections 6901-6992k); (c) any pollutant, contaminant, or hazardous, dangerous, or toxic chemical, material, or substance, within the meaning of any other applicable federal, state, or local law, regulation, ordinance, or requirement (including consent decrees and administrative orders imposing liability or standards of conduct concerning any hazardous, dangerous, or toxic waste, substance, or material, now or hereafter in effect); (d) petroleum products; (e) radioactive material, including any source, special nuclear, or byproduct material as defined in 42 United States Code sections 2011-2297g-4; (f) asbestos in any form or condition; and (g) polychlorinated biphenyls (PCBs) and substances or compounds containing PCBs. 6.6 Definition of Environmental Laws. As used in this Agreement, the term Environmental Laws “” means all federal, state and local laws, ordinances, regulations, rules orders and directives pertaining to Hazardous Materials, including without limitation, the laws, statutes, and regulations cited in the preceding Section 6.5, as any of the foregoing may be amended from time to time. ARTICLE VII UTILITIES AND MAINTENANCE 7.1 Utilities. ACFD shall be solely responsible for payment for all utilities utilized in the Improvements or on the Property, including without limitation all electricity, air conditioning and heating, water, sewer and trash collection. 13 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 7.2 Maintenance. ACFD shall, at all times during the Term of this Agreement, at ACFD’s sole expense, keep the Property and the Improvements in good order, condition and repair, including without limitation (i) maintenance of all exterior areas of the Improvements and the Property, including without limitation, lighting and landscaping; (ii) cleaning, painting, maintenance and repair of the Improvements, (iii) maintenance and repair of mechanical, electrical, HVAC and plumbing equipment and systems and the structural components of the Improvements, including the roof, foundation, floors and walls, and (iv) maintenance and repair of all parking lots, walkways, driveways, fences, utility systems, fire sprinklers, stairs, elevators, corridors, . restrooms, windowsIf ACFD fails to maintain or keep the Property and Improvements in good repair or if such failure results in a nuisance or health or safety risk, at City’s option, and after written notice to ACFD , if ACFD does not respond to such notice within thirty (30) days (except in the event of nuisance or health and safety risk), City may perform any such required maintenance and repairs, and within thirty (30) days after receipt of City’s invoice, ACFD shall pay City’s costs incurred in connection with such repairs, plus a percentage of such costs sufficient to reimburse City for all overhead, general conditions, fees and other costs and expenses in connection therewith 7.3 Repair Obligations. Except as expressly set forth in this Agreement, (including all attachments and exhibits hereto) or the Plans, City shall have no obligation to repair or maintain the Property, the Improvements, or any equipment installed therein. 7.4 Compliance with Applicable Laws. City and ACFD shall each comply with (and shall cause their respective employees, agents and contractors to comply with) all Applicable Laws, including without limitation all Environmental Laws, whenever either party undertakes any work of construction, alteration or improvement with respect to the Property or the Improvements. ARTICLE VIII ALTERATIONS AND ADDITIONS 8.1 Alterations and Improvements. Other than routine repair of Improvements, ACFD may not make any improvements, alterations, additions or changes to the Property Alterations or the Improvements (“”)exceeding Ten Thousand Dollars ($10,000) in cost without the prior written approval of City, which shall not be unreasonably withheld. If ACFD desires to make any Alteration costing in excess of $10,000, the Parties will meet and develop an appropriate plan for accomplishing the Alterations. Unless otherwise agreed upon by City in writing, all Alterations shall be done at ACFD’s expense, in a good and workmanlike manner, by ACFD, Alameda County GSA, or by licensed contractors, in conformity with plans and specifications reviewed and approved by City, and in compliance with all Applicable Laws. ACFD shall obtain all necessary governmental approvals and permits for such Alterations. ACFD shall give City not less than ten (10) business days' notice prior to the commencement of construction so that City may post a notice of nonresponsibility on the Premises. City 14 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT may at its option by written notice to ACFD, require that ACFD, upon the expiration or sooner termination of this Agreement, at ACFD’s expense, remove any or all Alterations and return the Premises to its condition as of the Commencement Date, normal wear and tear excepted. ARTICLE IX INSURANCE AND INDEMNITY 9.1 Mutual Indemnity. To the fullest extent permitted by law, ACFD shall defend (with counsel reasonably acceptable to City), indemnify and hold the Indemnitees harmless from and against any and all Claims arising out of or relating directly or indirectly to this Agreement and ACFD’s use of the Premises (including without limitation, Claims for or relating to loss of or damage to property, injury or death of any person, and economic losses and consequential or resulting damage of any kind), including any Claim arising from or in connection with or in any way attributable to: (i) the use or occupancy, or manner of use or occupancy of the Improvements or the Property by ACFD or ACFD Parties, (ii) any act, error, omission or negligence of ACFD Parties or any invitee, guest or licensee of ACFD in, on or about the Premises, (iii) any Alterations, activity, work, or thing done, omitted, permitted, allowed or suffered by ACFD or ACFD Parties in, at, or about the Improvements or the Property, or (iv) any breach or default in performance of any obligation on ACFD's part in the performance of any covenant or agreement to be performed by ACFD under this Agreement, except to the extent caused by the negligence or willful conduct of City or the Indemnitees. This indemnification does not extend to Claims arising out of Common Areas unless such Claims arise from the negligence or intentional actions of ACFD or ACFD Parties. To the fullest extent permitted by law, City shall defend (with counsel reasonably acceptable to ACFD), indemnify and hold ACFD, AFCD Parties and its elected and appointed officers, officials, employees, agents and representatives (collectively Indemnified Parties”) “harmless from and against any and all Claims (including without limitation, Claims for or relating to loss of or damage to property, injury or death of any person, and economic losses and consequential or resulting damage of any kind), including any Claim arising from or in connection with or in any way attributable to: (i) any act, error, omission or negligence of City or any of its contractors, agents, invitees, guests or licensees in, on or about the Property or the Improvements, (ii) any activity, work, or thing done, omitted, permitted, allowed or suffered by the City or its contractors, agents, invitees, guests or licensees in, at, or about the Improvements or the Property, or (iv) any breach or default in performance of any obligation on the part of City in the performance of any covenant or agreement to be performed by City under this Agreement, except to the extent caused by the negligence or willful conduct of ACFD or the ACFD Parties. 15 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT The provisions of this Section shall not be construed or interpreted as in any way restricting, limiting or modifying the insurance obligations of the Parties under this Agreement and are independent of such obligations. Compliance with the insurance requirements set forth in this Agreement shall not in any way restrict, limit or modify the respective indemnification obligations of the Parties hereunder. The provisions of this Section shall survive the expiration or earlier termination of this Agreement. 9.2 ACFD’s Insurance. ACFD shall, at its sole expense, procure and maintain throughout the Term (plus such earlier and later periods as ACFD may be in occupancy of the Premises) all of the following: (a) Commercial general liability insurance including contractual liability coverage, written on an “occurrence” policy form, covering bodily injury, property damage and personal injury arising out of or relating (directly or indirectly) to ACFD’s operations, conduct, assumed liabilities, or use or occupancy of the Premises, naming the Indemnitees as additional insureds, with minimum coverage in the amount of Two Million Dollars ($2,000,000) per occurrence combined single limit for bodily injury and property damage and Five Million Dollars ($5,000,000) in the aggregate. ACFD’s liability coverage shall be adequate to provide protection against liability for damage or loss arising in connection with ACFD’s work on Apparatus owned by third parties; (b) Property insurance protecting ACFD against loss or damage by fire and such other risks as are insurable under then available standard forms of “all risk” insurance policies, covering ACFD’s personal property and trade fixtures in or about the Premises, and any improvements and/or Alterations in the Premises, in an amount not less than one hundred percent (100%) of their actual replacement cost or highest insurable value; (c) Workers’ compensation insurance in at least the statutory amounts; and (d) Comprehensive automobile liability insurance with a minimum coverage of Two Million Dollars ($2,000,000) per occurrence, combined single limit providing coverage for owned, hired and non-owned vehicles. The foregoing policies shall protect ACFD as an additional named insured, and City and the other Indemnitees as additional insureds, and if subject to deductibles shall provide for deductible amounts not in excess of those approved in advance in writing by City in its reasonable discretion. City reserves the right to increase the foregoing amount of required liability coverage from time to time (but not more often than once each calendar year) to adequately protect Indemnitees and to require that ACFD cause any of its contractors, vendors or other parties conducting activities in or about or occupying the Premises to obtain and maintain insurance as determined by City and as to which the Indemnitees shall be additional insureds. 16 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 9.3 Excess Coverage Liability Policy. Nothing in this Article IX shall prevent ACFD from obtaining insurance of the kind and in the amounts provided for under this Section under excess coverage liability insurance covering other properties as well as the Premises; provided, however, that any such excess coverage liability insurance (i) shall specify those amounts of the total insurance allocated to the Premises, which amounts shall not be less than the amounts required by Section 9.2, (ii) such amounts so specified shall be sufficient to prevent any one of the insureds from becoming a co-insurer within the terms of the applicable policy, and (iii) shall, as to the Premises, otherwise comply with the requirements of this Article as to endorsements and coverage. 9.4. Insurance Form. ACFD maintains its insurance through the County of Alameda, which is self-insured. Insurance coverage, other than ACFD’s workers’ compensation insurance/coverage, shall (i) provide that no act or omission of ACFD shall affect or limit the obligations of the insurer with respect to any other insured; (ii) include all waiver of subrogation rights endorsement necessary to effect the provisions of Section 9.6; and (iv) provide that the coverage shall be primary, that City, although an additional insured, shall nevertheless be entitled to recovery for any damage to City or the other Indemnitees by reason of acts or omission of ACFD, and that any coverage carried by City shall be noncontributory with respect to coverage carried by ACFD. If requested, proof of insurance coverage shall be delivered to City by ACFD on or before the Commencement Date, and from time to time thereafter upon City’s request. City may at any time, and from time to time, inspect and /or copy any and all insurance coverage required by this Agreement. 9.5 Insurance of ACFD Contractors and Agents. ACFD shall require all of its agents, contractors, workmen, mechanics, suppliers or invitees performing construction or repair work on the Property or in the Improvements to carry adequate property, liability, automobile and workers compensation insurance. 9.6 Waiver of Subrogation. ACFD and City each agree to waive, and as applicable shall cause the insurance companies issuing their respective property (first party) insurance to waive any subrogation rights that each Party and such companies may have against ACFD or City, respectively, as long as the insurance is not invalidated by the waiver. If the waivers of subrogation are contained in their respective insurance policies, City and ACFD waive any right that either may have against the other on account of any loss or damage to their respective property to the extent that the loss or damage is insured under their respective insurance policies. 9.7 City’s Insurance. City shall maintain throughout the Term liability insurance and property damage insurance comparable to or exceeding the coverage and amounts of insurance carried by reasonably prudent municipal/government owners of comparable property and workers’ compensation coverage as required by law. ARTICLE X ASSIGNMENT AND OCCUPANCY 17 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 10.1 City’s Consent Required. ACFD shall not assign, mortgage, pledge, encumber or otherwise transfer this Agreement. Except as set forth in this Section, ACFD shall not permit all or any part of the Premises to be used or occupied for any purpose by anyone other than ACFD without the prior written consent of City, which City will not unreasonably withhold. Except as set forth in this section, any assignment or agreement permitting any third party to use or occupy the Premises without City’s prior written consent shall, at City’s option, be void and shall constitute an Event of Default entitling City to terminate this Agreement and to exercise all other remedies available to City under this Agreement and at law. Notwithstanding the foregoing, with respect to an aggregate total of not more than twenty-five percent (25%) of the total square footage of the Premises, ACFD may, without City’s consent, enter into agreements permitting entities that provide public services (including other fire districts and departments)to use or occupy the Premises. ACFD will notify City of any such agreement, and if requested, shall provide copies of such agreements to City. 10.2 No Release of Obligations. Except as permitted pursuant to Section 10.1, the consent by City to an assignment or agreement for use by others shall not relieve ACFD or any assignee from the requirement of obtaining City’s express prior written consent to any other or further assignment or agreement for use by another occupant. No occupant may assign its rights or allow others to use the Premises, without City’s prior written consent, which consent may be not be unreasonably withheld. Neither an assignment nor the collection of rent by City from any person other than ACFD shall be deemed a waiver of any of the provisions of this Article or release ACFD from its obligations to comply with this Agreement, and ACFD shall remain fully and primarily liable for all of ACFD’s obligations under this Agreement. 10.3 Recapture. As material consideration for the execution of this Agreement by City, ACFD hereby agrees that whenever it delivers notice to City that it desires approval of a use agreement or assignment which covers the entirety of the Premises, City shall have the right to review the terms and conditions of such proposed use agreement or assignment and shall have a right for a period of fifteen (15) business days, to cancel this Agreement, and enter into a direct agreement with any prospective user or assignee. Such fifteen (15) day period shall commence upon ACFD's delivery to City of written notice of the terms of the proposed assignment or use agreement and financial statements for the proposed assignee or user. If City exercises its right to cancel this Agreement, ACFD shall surrender possession of all of the Premises not later than the date on which the proposed use agreement or assignment term would commence. 10.4 Proceeds of Third Party Use Agreement or Assignment. Subject to Section 10.5, if ACFD enters into any assignment or use agreement permitting a third party to use or occupy the Premises, City shall be entitled to receive as Additional Rent hereunder, one hundred percent (100%) of any consideration paid by the assignee or user for the use or occupancy of the Premises in excess of the amount of Base Rent attributable to the space that is the subject of the use or occupancy agreement, except that ACFD may recapture on an amortized basis over the term of the use agreement or 18 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT assignment, any brokerage commission paid by ACFD in connection with the agreement or assignment (not to exceed the amount of commissions typically paid in the market at the time of such agreement or assignment) and reasonable marketing costs paid by ACFD in connection with the use agreement or assignment. 10.5 Rent Proceeds. Notwithstanding the provisions of Section 10.4, ACFD shall be entitled to retain the excess rent attributable to payments made by users, assignees or occupants who at any one time occupy or use portions of the Premises equal on an aggregate basis to no more than twenty-five percent (25%) of the total square footage of the Premises. ARTICLE XI DAMAGE AND DESTRUCTION 11.1 Repair and Restoration; Termination Rights. If all or part of the Improvements or the Property is damaged by fire or other casualty, or if the Improvements are so damaged that access to or use and occupancy of the Premises is materially impaired, within forty-five (45) days of the date of the damage, City shall notify ACFD of the estimated time, in City’s reasonable judgment, required for repair or Repair Period restoration (“”). If the estimated time is 180 days or less, City shall proceed promptly and diligently to repair or restore the Premises or the portion of the Improvements necessary for ACFD’s occupancy, and this Agreement shall remain in effect, except that for the time unusable, ACFD shall receive a Rent abatement for that part of the Premises rendered unusable in the conduct of ACFD’s business. If the estimated time for repair or restoration is in excess of 180 days from the date of the casualty, City, at its option exercised by written notice to ACFD within sixty (60) days after the date of the casualty, shall either (a) commence to repair the damage, in which case this Agreement shall continue in full force and effect, or (b) terminate this Agreement as of the date specified by City in the notice, which date shall be not less than thirty (30) nor more than sixty (60) days after the date such notice is given, and this Agreement shall terminate on the date specified in the notice. If the time estimated for repair is more than one year and City does not give notice terminating this Agreement, then within thirty (30) days after ACFD receives City’s notice providing a Repair Period, ACFD may give notice to City terminating this Agreement as of the date specified in ACFD’s termination notice, which date shall not be before the date of such notice or more than thirty (30) days after the date of ACFD’s termination notice. If the time estimated for repair is less than one year, or is more than one year and ACFD does not exercise its foregoing termination rights, and in either case City fails to repair the damage by the date that is the later to occur of (i) one year from the date of the damage, or (ii) ninety (90) days after the end of the Repair Period, then ACFD may give notice to City, within ten (10) business days after the end of the Repair Period terminating this Agreement as of the date specified in ACFD’s notice, which date shall 19 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT not be earlier than 45 days after the date of ACFD’s termination notice nor more than 60 days after City’s receipt of ACFD’s termination notice; provided however, if City repairs the damage for which it is responsible within 45 days after receipt of ACFD’s termination notice, City may elect to nullify ACFD’s termination notice (and thereupon this Agreement shall continue in full force and effect) by City’s notice of such repair and election given to ACFD on or prior to the expiration of such 45-day period. 11.2 Damage Near End of Term. Notwithstanding anything to the contrary set forth in this Article, if the Property or the Improvements are damaged during the last twelve (12) months of the Term, City and ACFD shall each have the option to terminate this Agreement by giving written notice to the other of the exercise of that option within thirty (30) days after the damage or destruction, and this Agreement shall terminate as of the date specified in such notice which shall be not before the date of such notice nor more than 30 days after the date of such notice. 11.3 Rent Apportionment. If City or ACFD elects to terminate this Agreement under this Article XI, ACFD shall pay Rent, prorated on a per diem basis and paid up to the date of the casualty. If the Premises are wholly untenantable and this Agreement is not terminated, Rent shall abate on a per diem basis from the date of the casualty or default until the Premises are ready for occupancy by ACFD or the default is cured. If part of the Premises are untenantable, Rent shall be prorated on a per diem basis and abated in proportion to the portion of the Premises which is unusable until the damaged part is ready for ACFD's occupancy. Notwithstanding the foregoing, if any damage was caused by the gross negligence or willful misconduct of ACFD, its employees or agents, then, in such event, ACFD agrees that Rent shall not abate or be diminished. 11.4 Waiver of Statutory Provisions. The provisions of this Agreement, including those in this Article XI, constitute an express agreement between City and ACFD that applies in the event of any damage to the Improvements or the Property. ACFD, therefore, fully waives the provisions of any statute or regulation, including California Civil Code sections 1932(2) and 1933(4), relating to any rights or obligations concerning any such casualty. 11.5 Damage Caused by ACFD or ACFD Parties. Notwithstanding any contrary provision of this Article XI, ACFD shall be solely responsible for the repair of any damage to the Property or the Improvements resulting from the negligence, willful action or failure to act by ACFD or ACFD Parties, and such repairs shall be undertaken at ACFD’s sole expense. ARTICLE XII CONDEMNATION 12.1 Total Taking - Termination. If title to the Premises or so much thereof is taken through the exercise of any government power (by legal proceedings or otherwise) by any public or quasi-public authority or by any other party having the right of eminent 20 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT domain, or by a voluntary sale or transfer either under threat of exercise of eminent domain or while legal proceedings for eminent domain are pending so that reconstruction of the Premises will not result in the Premises being reasonably suitable for ACFD’s continued occupancy for the uses and purposes permitted by this Agreement, this Agreement shall terminate as of the date possession of the Premises or part thereof is so taken. 12.2 Partial Taking. If any part of the Premises is taken through the exercise of eminent domain (or is voluntarily conveyed under the threat thereof) and the remaining part is reasonably suitable for ACFD’s continued occupancy for the uses and purposes permitted by this Agreement, this Agreement shall as to the part so taken terminate as of the date that possession of such part of the Premises is taken and the Rent shall be reduced in the same proportion that the floor area of the portion of the Premises taken (less any addition thereto by reason of any reconstruction) bears to the original floor area of the Premises as reasonably determined by City or City’s architect. City shall, at its own cost and expense, make all necessary repairs or alterations to the Premises so as to make the portion of the Premises not taken a complete unit. 12.3 No Apportionment of Award. All condemnation awards and similar payments shall be paid and belong to City, except for any amounts awarded or paid specifically to ACFD for improvements, removal and reinstallation of ACFD's trade fixtures and personal property, ACFD's moving costs and ACFD's goodwill. It is expressly understood and agreed by ACFD that except as otherwise stated in this Section, City shall be entitled to the entire award for any partial or total taking of the Property. 12.4 Temporary Taking. No temporary taking of the Premises (which shall mean a taking of all or any part of the Premises for 30 days or less) shall terminate this Agreement or give ACFD any right to any abatement of Rent. ACFD may agree to a temporary taking of a longer period. Any award made to ACFD by reason of such temporary taking shall belong entirely to ACFD, and City shall not be entitled to share therein. ARTICLE XIII SUBORDINATION AND ESTOPPEL; RIGHT OF FIRST OFFER 13.1 Estoppel Certificate. From time to time and within thirty (30) days after request by City, unless the Alameda County Board of Directors is on recess, and then at the first meeting thereafter, ACFD shall execute and deliver a certificate to any proposed lender or purchaser, or to City, certifying, with any appropriate exceptions, (a) that this Agreement is in full force and effect without modification except as noted, (b) the amount, if any, of prepaid rent and Initial Contributions paid by ACFD to City (and not returned to ACFD), (c) the nature and kind of concessions, rental or otherwise, if any, which ACFD has received or is entitled to receive, (d) that City has performed all of its obligations due to be performed under this Agreement and that there are no defenses, counterclaims, deductions or offsets outstanding or other excuses for ACFD's 21 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT performance under this Agreement as of such date, and (e) any other fact reasonably requested by City or such proposed lender or purchaser. 13.2 Subordination and Attornment. ACFD agrees that this Agreement is subject and subordinate to (i) the lien of any mortgage or deed of trust on the Improvements or the Property, and all renewals, extensions, modifications, consolidations, and replacements of those items. 13.3 Subordination Agreement. The subordination described in this Article XIII is self-operative, and no further instrument of subordination shall be required to make it effective. To confirm this subordination, however, ACFD shall, within thirty (30) days after City’s request (unless the Alameda County Board of Directors is on recess, then at the first meeting thereafter), execute any further instruments or assurances in recordable form that City reasonably considers necessary to evidence or confirm the subordination of this Agreement to any such encumbrances. 13.4 Right of First Offer. Provided that ACFD is not in default under this Agreement beyond any applicable notice and cure periods, if during the Term of this Agreement, City determines to sell the Premises, ACFD shall have a right of first offer as set forth herein. Prior to City’s entering into an agreement for the marketing of the Premises or City’s solicitation of offers to purchase the Premises from third parties, City First Offer shall offer in writing (the “”) to sell the Premises to ACFD on the same terms and conditions that City would then be willing to offer to a third party. The First Offer shall, at a minimum, include the following information: the purchase price, the method of payment of the purchase price; the amount of any required earnest money deposit; and the timing for the close of escrow. ACFD shall have forty-five (45) days from the date Acceptance Period of the First Offer to accept the First Offer (the “”) by delivering to City its acceptance on or before 5:00 p.m. on the last day of the Acceptance Period. If ACFD fails to accept the First Offer before the Acceptance Period ends, the First Offer shall be deemed rejected. If ACFD responds to the First Offer with anything other than an unequivocal, unconditional acceptance or rejection, the right of first offer shall terminate and the response shall be deemed an offer to purchase the Premises on the Counter Offer terms and conditions in the response (the “”). City shall be entitled to accept or reject the Counter Offer in City’s sole discretion, and if City rejects the Counter Offer, the Counter Offer shall be deemed to be a rejection of the First Offer. If ACFD accepts the First Offer, ACFD shall have sixty (60) days following Closing Period acceptance of the First Offer (“”) to obtain from the Alameda County Board of Directors approval to execute a contract to purchase the Premises pursuant to the terms and conditions of the First Offer. If ACFD fails to obtain such approval within the Closing Period, any earnest money paid by ACFD pursuant to the acceptance shall be paid to City as City’s liquidated damages, and the agreement to purchase the Premises together ACFD’s rights pursuant to this Section 13.4 shall be terminated. After the termination, City shall be free to enter into an agreement for the sale of the Premises with a third party on whatever terms City may choose to offer without further obligation under this Section. 22 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT If ACFD rejects the First Offer and City subsequently negotiates with a third party and is willing to enter into an agreement with that party on terms less favorable to City or more favorable to the purchaser than those contained in the First Offer, City shall offer to sell the Property to ACFD on those new terms by giving ACFD written notice Second Offer (“”). ACFD shall have twenty (20) business days from receipt of the Second Offer to obtain from the Alameda County Board of Directors approval to accept the new terms; provided however, if the Alameda County Board of Directors is on recess on the date that such 20-day period expires, this time period may be extended to the date of the next Board meeting. If ACFD fails to accept the new terms or rejects the new terms in writing, City shall be free to consummate the transaction with the third party without any liability to ACFD. If ACFD accepts the new terms, ACFD shall then consummate the transaction with City on the terms and conditions in the Second Offer on the later of (a) the time for consummation of the Second Offer, (b) sixty (60) days following the date of the Second Offer, or (c) other date agreed upon by the Parties. The rights and obligations of the Parties under this Section 13.4 shall automatically terminate and have no further effect upon the first of the following events to occur: (i) the expiration of the Term of this Agreement, or (ii) ACFD rejects a First Offer or a Second Offer and City subsequently consummates a sale of the Premises to a third party. The right of first offer provided pursuant to this Section 13.4 is personal to ACFD and may not be assigned by operation of law or otherwise without the express written consent of City. Notwithstanding the foregoing, the right of first offer may be assigned “County”) to the County of Alameda, a political subdivision of the State of California ( provided that the County’s intended use for the Premises is the provision of fire . protection related services and uses, including the uses permitted under this Agreement ARTICLE XIV SURRENDER OF PREMISES; HOLDING OVER 14.1 Surrender of Premises. On expiration of this Agreement, ACFD shall surrender the Premises in the same condition as when the Term commenced, ordinary wear and tear excepted. Except for furniture, equipment and trade fixtures (other than those which are affixed to the Premises so that they cannot be removed without material damage to the Premises that cannot be repaired) all alterations, additions or improvements, whether temporary or permanent in character, made in or upon the Premises, either by City or ACFD, shall be City's property and at the expiration or earlier termination of the Agreement shall remain on the Premises without compensation to ACFD; provided that, upon reasonable written request of City, ACFD shall, at its expense and without delay, remove any alterations, additions or improvements (including, without limitation, all telecommunications equipment and cabling, and all alterations and improvements made by ACFD after the Commencement Date) made to the Premises by ACFD and designated by City to be removed, and shall repair any damage to the Property or the Improvements caused by such removal. If ACFD fails to complete such removal or to repair the Premises, City may complete such removal and repair, and ACFD shall 23 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT reimburse City therefor. If ACFD fails to remove such property as required under this Agreement, City may dispose of such property in its sole discretion without any liability to ACFD, and further may charge the cost of any such disposition to ACFD. 14.2 Hold Over Use. If ACFD remains in possession of the Premises after the expiration or earlier termination of this Agreement with City’s written consent, ACFD shall be deemed, at City's option, to occupy the Premises on a month-to-month basis. During such occupancy (and prior to any termination by City), ACFD agrees to pay City, monthly in advance, an amount equal to the greater of (i) the then fair market rental (as reasonably determined by City) for the Premises, or (ii) one hundred and six percent (106%) of all Base Rent which would become due during the last month of the Term, together with all other amounts payable by ACFD to City under this Agreement. Except as provided in the preceding sentence, such month-to-month occupancy shall be on the same terms and conditions of this Agreement except that any renewal options, expansion options, rights of first refusal or any other rights or options contained in this Agreement shall be deemed to be terminated and shall be inapplicable thereto. City’s acceptance of rent after such holding over with City’s written consent shall not result in any other tenancy or in a renewal of the initial term of this Agreement. If after written notice to ACFD that City does not consent to ACFD continuing to occupy the Premises and ACFD remains in possession of the Premises after the expiration or earlier termination of this Agreement without City’s written consent, ACFD’s continued possession shall be on the basis of a tenancy at sufferance and ACFD shall pay Rent during the holdover period in an amount equal to the greater of (i) one hundred fifty percent (150%) of the then fair market rental (as reasonably determined by City) for the Premises, or (ii) two hundred percent (200%) of all Base Rent which would become due the last month of the Term, together with all other amounts payable by ACFD to City. ARTICLE XV CITY'S RESERVED RIGHTS . 15.1 Rights Reserved to City. Without liability to ACFD, and without effecting an eviction or disturbance of ACFD's use or possession, City shall have the right to (i) grant utility easements or other easements in, or subdivide or make other changes in the legal status of the Property as City shall deem appropriate in its sole discretion, provided such changes do not substantially interfere with ACFD's use of the Premises for the Permitted Use, however, prior to doing so City will notify ACFD allowing sufficient time for ACFD to comment on whether such action will interfere with its use; (ii) enter the Premises at reasonable times and with reasonable advance notice (and at any time in the event of an emergency), to inspect (including inspections by prospective lenders for or buyers of the Property), or repair the Improvements and to perform any acts related to the safety, protection, reletting, sale or improvement of the Property or the Improvements; (iii) install and maintain signs on the Property; and (iv) make such rules and regulations as, in the reasonable judgment of City, may be needed from time to time for, the care and 24 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT cleanliness of the Property and the Improvements and the preservation of good order therein. If an emergency necessitates immediate access to the Premises, City shall contact the ACFD Chief, or designee, who will be available 24 hours a day all days of the year to allow access to the Property and Improvements at all times. ARTICLE XVI DEFAULT AND REMEDIES Event of Default” 16.1 ACFD's Default. It shall be an “ hereunder if ACFD shall: (a) fail to pay when due any monthly installment of Rent (or, if applicable under this Agreement, ACFD’s Share of Operating Expenses), or fail to pay any other amount owed by ACFD to City under this Agreement as and when due and such failure continues for thirty (30) days following written notice thereof to ACFD by City; (b) if requested, fail to provide any certificate, instrument or assurance as required pursuant to Article IX if the failure continues for thirty (30) days after written notice of the failure from City to ACFD; (c) make a general assignment for the benefit of its creditors or file a petition for bankruptcy or other reorganization, liquidation, dissolution or similar relief; (d) have a proceeding filed against ACFD seeking any relief mentioned in (c) above which is not discharged within sixty (60) days thereafter; (e) have a trustee, receiver or liquidator appointed for ACFD or a substantial part of its property; (f) abandon or vacate the Premises for more than three (3) consecutive months; (g) assign this Agreement or sublease any portion of the Premises in violation of Article X; or (h) fail to comply with any other provision of this Agreement in the manner required hereunder and such failure continues for thirty (30) days after written notice thereof to ACFD by City (or if the noncompliance cannot by its nature be cured within the 30-day period, if ACFD fails to commence to cure such noncompliance within the 30-day period and thereafter diligently prosecute such cure to completion). 25 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 16.2 Remedies on Default. Upon the occurrence of an Event of Default, and after written notice to ACFD that City considers ACFD in Default, City shall have the right to pursue any one or more of the following remedies in addition to any other remedies now or later available to City at law or in equity. These remedies are not exclusive but instead are cumulative. (a) Continue Agreement. City may continue this Agreement in full force and effect. In such case, so long as City does not terminate ACFD's right to possession, the Agreement will continue in effect and City shall have the right to collect Rent when due, and may undertake efforts to relet the Premises, or any part of them, to third parties for ACFD's account. Reletting can be for a period shorter or longer than the remaining term of this Agreement. ACFD shall pay to City the Rent due under this Agreement on the date the Rent is due, less the Rent City receives from any reletting. No act by City allowed by this Section shall terminate this Agreement unless City terminates ACFD’s right to possession. After an Event of Default and for as long as City does not terminate ACFD's right to possession of the Premises, if ACFD obtains City's consent, ACFD shall have the right to assign or sublet its interest in this Agreement, but ACFD shall not be released from liability. (b) Terminate Agreement. City may terminate the Agreement and ACFD's right to possession of the Premises at any time following an Event of Default. On termination, City shall have the right to recover from ACFD all of the following: (i) The worth, at the time of the award, of any unpaid Rent that had been earned at the time of termination of this Agreement; (ii) The worth, at the time of the award, of the amount by which the unpaid Rent that would have been earned after the date of termination of this Agreement until the time of the award exceeds the amount of the unpaid Rent that ACFD proves could have been reasonably avoided; (iii) 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 the award exceeds the amount of unpaid Rent that ACFD proves could have been reasonably avoided; (iv) Any other amount necessary to compensate City for all detriment proximately caused by ACFD's failure to perform obligations under this Agreement, including, without limitation, brokerage commissions, advertising expenses, expenses of remodeling the Premises for a new tenant, and any special concessions made to obtain a new tenant; and 26 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT (v) Any other amounts, in addition to or in lieu of those listed above that may be permitted by law. "The worth, at the time of the award” as used in clauses (i) and (ii) of this Paragraph (b) is to be computed by allowing interest at the maximum rate allowed by law at that time, or if there is no such maximum, at a rate of ten percent (10%) per annum. "The worth, at the time of the award," as referred to in clause (iii) of this Paragraph (b) is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1%). 16.3 City’s Default. City’s failure to perform any of its obligations under this Agreement shall constitute a City Event of Default hereunder if the failure continues for thirty (30) days after written notice of the failure from ACFD; provided however, if the failure to perform cannot by its nature be cured within the 30 day period, City’s failure to perform shall not constitute a City Event of Default if City undertakes to cure the failure within such thirty (30) day period and diligently and continuously attempts to complete the cure as soon as reasonably possible. 16.4 Access. Full ingress and egress to the Premises by Apparatus is a material term of this Agreement. If at any time access to the Premises is obstructed or blocked, City shall immediately take reasonable action so that full access is restored. If access is impaired, but sufficient to allow ingress and egress of Apparatus, then City shall promptly take reasonable actions to restore full access. If the City’s response is not adequate, ACFD in its reasonable discretion may correct the problem or arrange for appropriate alternative access. ACFD may immediately take action, after verbal notice to City, in any emergency situation. An emergency situation includes any fire, natural or other disaster or instance where Apparatus that is located on the Premises is needed and any time there are insufficient Apparatus available to meet minimum daily deployment requirements. If the obstruction or blockage has resulted from City’s negligence or willful action, City shall reimburse ACFD for all reasonable costs incurred by ACFD in connection with such correction or alternative access within thirty (30) days following ACFD’s provision to City of an invoice with documented costs. If access problems reoccur or if ACFD reasonably determines that City is not taking appropriate action to restore access consistent with the Section, ACFD shall have the option to immediately terminate this Agreement. If any obstruction or blockage has resulted from actions of third parties or natural disasters, the Parties will work together and fully cooperate to obtain reimbursement from third parties, including federal agencies. ARTICLE XVII COMPLETION OF THE PROJECT 17.1 Project Completion. The obligations of City and ACFD, with respect to preparation of the Premises for occupancy and completion of the Project are set forth in 27 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT the Improvement Agreement attached hereto as Exhibit B, as it may be amended prior to signature. The Improvement Plan and any further amendments to the Improvement Plan, can be executed by the ACFD Chief and by the City Manager. It is acknowledged and agreed that all improvements constructed by City pursuant to this Agreement are and shall be the property of City from and after their installation. ARTICLE XVIII MISCELLANEOUS 18.1 No Waiver. No receipt and retention by City of any payment tendered by ACFD in connection with this Agreement shall constitute an accord and satisfaction, or a compromise or other settlement, notwithstanding any accompanying statement, instruction or other assertion to the contrary unless City expressly agrees to an accord and satisfaction, or a compromise or other settlement, in a separate writing duly executed by City. City will be entitled to treat any such payments as being received on account of any item or items of Rent, interest, expense or damage due in connection herewith, in such amounts and in such order as City may determine at its sole option. Failure of any party to exercise any right in one or more instance shall not be construed as a waiver of the right to strict performance or as an amendment to or modification of this Agreement. Any waiver of any condition or provision set forth in this Agreement shall not be deemed a waiver of any subsequent breach of such condition or provision or of any other condition or provision, nor shall any such waiver be deemed a continuing waiver. 18.2 Severability. The Parties intend this Agreement to be legally valid and enforceable in accordance with all of its terms to the fullest extent permitted by law. If an arbitrator or a court of competent jurisdiction holds any provision hereof to be invalid or unenforceable in whole or in part for any reason, the validity and enforceability of the remaining clauses, or portions of them, shall not be affected unless an essential purpose of this Agreement would be defeated by loss of the invalid or unenforceable provision. 18.3 Governing Law; Construction. This Agreement shall be construed according to the laws of the State of California without regard to principles of conflict of laws. The parties acknowledge that this Agreement is the product of negotiation and compromise on the part of both parties and agree that the provisions hereof shall be construed in accordance with their fair meaning and not in accordance with any rule providing for interpretation against the party who causes the uncertainty to exist or against the drafter. The captions used for the Sections and Articles of this Agreement have been inserted for convenience only and shall not be used to alter or interpret the content of this Agreement. 18.4 Binding Effect; Survival. The covenants, conditions, warranties and agreements contained in this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. The representations and 28 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT warranties of City and ACFD and the indemnification obligations of City and ACFD set forth herein shall survive the expiration or termination of this Agreement as shall all other provisions hereof which are intended to survive such expiration or termination. 18.5 Time. Time is of the essence of each provision of this Agreement. 18.6 Entire Agreement; Amendments. This Agreement and Exhibits A through B-2 attached hereto and incorporated herein by this reference, constitutes the final, complete, and exclusive statement of the terms of the agreement between City and ACFD pertaining to ACFD’s use of the Premises, and supersedes all prior and contemporaneous understandings or agreements of the parties with respect thereto. This Agreement may not be amended or modified except in a writing signed by both parties. 18.7 Notices. All notices delivered pursuant to this Agreement shall be in writing and delivered to City or ACFD at the applicable address designated in Section 1.1 or to such other address as may hereafter be designated by either party by written notice delivered to the other party in accordance with this Section. Such notices shall be effective on the earlier to occur of actual receipt or: (i) if mailed, five (5) days after posting at a United States post office, (ii) upon receipt if mailed by certified mail with return receipt requested, and (iii) upon delivery if delivered by overnight delivery service and delivery is confirmed by the delivery service. 18.8 Force Majeure. Except as otherwise provided in this Agreement, the time for performance of an obligation other than the payment of money under this Agreement shall be extended for the period during which a party is prevented from performing due to Unavoidable delay” Unavoidable Delay. “ shall mean any and all delay beyond the applicable party’s reasonable control, including without limitation, delays caused by the other party; governmental restrictions, regulations, controls, preemptions or delays; orders of civil, military or naval authorities; strikes, labor disputes, lock-outs, shortages of labor or materials or reasonable substitutes therefore; Acts of God; fire, earthquake, floods, explosions or other casualties; extreme weather conditions or other actions of the elements; enemy action, civil commotion, riot or insurrection. 18.9 Attorneys’ Fees . If the services of an attorney are required by any party to secure the performance hereof or otherwise upon the breach or default of the other party, or if any judicial remedy or arbitration is necessary to enforce or interpret any provision of this Agreement, or if the services of an attorney are required upon the bankruptcy of a party to this Agreement to compel or object to assumption or rejection of this Agreement, seek relief from the automatic stay or object to an action to recover a preference or fraudulent transfer, the prevailing party shall be entitled to reasonable attorneys' fees, costs, expert witnesses fees, post judgment collection costs, and other expenses, in addition to any other relief to which such party may be entitled. 18.10 Authority. Each party warrants and represents that it has full authority to enter into this Agreement, that this Agreement constitutes a binding obligation of such 29 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT party, and that the individual(s) signing on behalf of such party are duly authorized to bind such party hereto. 18.11 Approvals. Whenever the consent or approval of City is required hereunder, such consent or approval may be granted or withheld by the City Manager or his or her designee, unless the City Manager determines in his or her discretion that such matter shall be referred to City’s governing body for consideration. 18.12 Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by any other party. This Agreement shall take effect when signed by all parties hereto and all parties have written notice of the signature of all the remaining parties. 18.13 Brokers. ACFD and City each represent and warrant to the other that except as stated in this Section, no broker or agent is entitled to a broker’s commission or finder’s fee in connection with the execution of this Agreement or the consummation of the transaction contemplated hereby, and each party agrees to defend and indemnify the other party against any loss, expense or liability incurred by the other party as a result of a breach of such representation and warranty. The provisions of this Section shall survive the expiration or earlier termination of the Agreement. City shall pay a consulting fee to Colliers International in accordance with a separate agreement. 18.14 Submission of Agreement. Submission of this document for examination or signature by the Parties does not constitute an option or offer to allow use the Premises on the terms in this document or a reservation of the Premises in favor of ACFD. This Agreement is not effective until executed and delivered by both City and ACFD. 18.15 Non-Agency. It is not the intention of City or ACFD to create hereby a relationship of principal and agent, and under no circumstances shall ACFD be considered the agent of City, nor City an agent of ACFD. SIGNATURES ON FOLLOWING PAGE . 30 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT NOW THEREFORE, City and ACFD have executed this Maintenance Facility Use Agreement as of the date first written above. ACFD CITY ALAMEDA COUNTY FIRE DISTRICT CITY OF DUBLIN By: _______________________________ By: _______________________________ Print Name:________________________ Its: City Manager Title:_____________________________ Attest:_____________________________ City Clerk Approved as to Form: Approved as to Form: Donna R. Ziegler, County Counsel ___________________________________ City Attorney By:__________________________ Senior Deputy County Counsel 31 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Exhibit A-1 DIAGRAM OF PROPERTY The Property is the area contained within the dark lines shown on the following diagram (identified by numbers 1-5). 32 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Exhibit A-2 Memorandum Confirming Commencement Date and Total Project Costs For MAINTENANCE FACILITY USE AGREEMENT (Scarlett Court) This Memorandum Confirming Commencement Date and Total Project Costs, executed Effective Date” as of _____________, 20__ (“) is a supplement to that certain Agreement” Maintenance Facility Use Agreement (“) entered into effective as of July 1, City 2012 by and between the CITY OF DUBLIN, a municipal corporation (“”), and ALAMEDA COUNTY FIRE DISTRICT, a dependent fire district formed under the Fire Protection District Law of 1961 (Health and Safety Code Sections 13801 et seq.) and ACFD” governed by the Alameda County Board of Directors (“). Capitalized terms used without definition herein shall have the meanings ascribed to such terms in the Agreement. City and ACFD hereby agree as follows: Commencement Date: 1. The Commencement Date as defined in the Agreement shall be: __________________, 20____. Base Rent: 2. As Base Rent for use of the Premises, ACFD will pay the City as follows: Year Monthly Base Rent 1-2 $_______________ 3-4 $_______________ 5-6 $_______________ 7-8 $_______________ 9-10 $_______________ 11-12 $_______________ 13-14 $_______________ 15-16 $_______________ 17-18 $_______________ 19-20 $_______________ 33 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 3. Exhibit 1 “Formula for Determining Base Rent” attached hereto and incorporated into this Memorandum by reference, specifies the final Total Project Costs which are the basis for determining Base Rent. 4. In the event of conflict between the terms of this Memorandum and the terms of the Agreement, the terms of this Memorandum shall prevail. IN WITNESS WHEREOF, City and ACFD have executed this Memorandum Confirming Commencement Date and Total Project Costs as of the date first written above. ACFD CITY ALAMEDA COUNTY FIRE DISTRICT, CITY OF DUBLIN, By: _______________________________ By: _______________________________ Print Name:________________________ Its: City Manager Title:_____________________________ Attest:_____________________________ City Clerk Approved as to Form: Approved as to Form: Donna R. Ziegler, County Counsel ___________________________________ City Attorney By:__________________________ Deputy County Counsel 34 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Exhibit B IMPROVEMENT AGREEMENT Improvement Agreement THIS IMPROVEMENT AGREEMENT (“”) “Agreement” supplements the Maintenance Facility Use Agreement (the ) executed concurrently herewith by and between the CITY OF DUBLIN, a municipal corporation City (""), and ALAMEDA COUNTY FIRE DISTRICT, a dependent fire district formed under the Fire Protection District Law of 1961 (Health and Safety Code Sections 13801 ACFD et seq.) and governed by the Alameda County Board of Directors (""). All capitalized terms not defined herein shall have the same meanings as set forth in the Agreement. 1. Determination of Base Rent Based on Costs. City and ACFD each acknowledge and agree that except as otherwise specified, the work described in this Improvement Agreement shall be completed by City, and the Base Rent shall be calculated based upon the costs and the formula set forth in Exhibit B-2; provided however, the Base Rent shall be adjusted to reflect actual costs once they have been determined. “Scope of 2. Scope of Work. City shall undertake the following work (the Work”) in accordance with the Final Plans (defined in Section 3 below): (i) Site preparation, including without limitation, removal of existing asphalt; (iii) Construction of an approximate 18,300 square foot facility (the “Building” ) and completion of Base Building Work, including: (a) concrete floors (without floor coverings) of tensile strength appropriate for Apparatus; (b) unfinished perimeter walls (including windows, window frames, and doors); (c) unfinished ceilings; (d) finish of the restrooms; (e) closets for telephone and electrical systems (but not the systems themselves); (f) Building mechanical, electrical, and plumbing systems within the Building core only; (g) interior core walls; (h) standard fire sprinkler protection on each floor; (i) any code-required items relating to the other elements of the Base Building Work, such as exit signs, speakers, fire doors, and any other life-safety support system for each floor; and (j) dry wall and tape of interior columns; ACFD Improvements (iv) Installation of improvements (the “”) in the Building in accordance with the Final Plans; (v) Site improvements, including paving and landscaping in accordance with the Final Plans. 3. Plans. (a) City and ACFD will approve in writing plans for completion of the Scope of “Plans”) Work (the and an estimate of the Total Project Cost. Upon agreement by City 35 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT and ACFD on the Plans, a true and correct copy of the Plans will be incorporated into the Agreement by execution of a Memorandum of Plans, substantially in the form attached hereto as Exhibit B-1. The approved Plans shall be attached to the Memorandum of Plans which, for purposes of the inclusion of the Plans only the Memorandum of Plans, attached hereto as Exhibit B-1, can be executed by the ACFD Chief and the City Manager. The Total Project Cost estimate is attached to this Improvement Agreement as Exhibit B-2 which is incorporated herein by this reference. (b) City and ACFD shall cooperate in good faith to finalize the Plans, without delay. ACFD shall fully cooperate by providing City, its architects, engineers, and contractors with timely information and approvals of plans, drawings, and specifications. Any acts by City or ACFD to delay or otherwise act negligently or in bad faith in approving the Plans and/or cooperating with each other in the design and construction of the ACFD Improvements shall result in a Party Delay (as hereinafter defined) under this Improvement Agreement. (c) City and ACFD acknowledge that the Plans may not depict certain structural elements of the Building and/or various elements of the Building systems that may result in material modifications to the final plans and specifications for the ACFD Structural Modifications Improvements (collectively “”). Furthermore, any final plans and specifications for the construction of the ACFD Improvements may require modification to account for the requirements of building codes and other legal requirements of applicable governmental entities, including, but not limited to, Title 24 Building Codes and the Americans with Disabilities Act (collectively the “”). Within ninety (90) days after the date that the initial Memorandum of Plans is executed, City shall cause to be prepared final plans and specifications in substantial conformity with the Plans taking into account (i) Structural Modifications, (ii) the requirements of the Building Codes, (iii) other modifications resulting from physical constraints of the Premises, and (iv) modifications requested by ACFD and consented to by City, which Final Plans consent shall not be unreasonably withheld (the “”). Upon agreement by City and ACFD on the Final Plans, a true and correct copy will be attached to this Improvement Agreement by execution of a second Memorandum of Plans, executed by the ACFD Chief and City Manager substantially in the form attached hereto as Exhibit B- 1. ACFD agrees that, in addition to other factors and considerations City may take into account, it shall not be unreasonable for City to withhold its consent to any requested modifications to the Plans or the Final Plans (i) if such requested modifications would not comply with the Building Codes, (ii) if such requested modifications would unreasonably delay the completion of the ACFD Improvements beyond the Scheduled Completion Date, or (iii) if such requested modifications would cause an undue burden on the architect, the contractor, the subcontractors, or City’s personnel. (d) Total Project Cost shall include, without limitation, all architectural and engineering fees and costs incurred in connection with completion of the Scope of Work as depicted on the Final Plans. Total Project Cost shall also include any and all architectural and engineering fees and costs incurred as a result of changes in the Final Plans requested by ACFD. 36 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 4. Delay (a). The Commencement Date shall not be delayed, postponed, or adjusted due to a Party Delay. No Party Delay or Force Majeure Delay shall be deemed to have occurred unless and until the Party claiming such delay has provided written notice to the other Party specifying the action or inaction that such notifying party contends constitutes a Party Delay or Force Majeure Delay, as applicable. If such action or inaction is not cured within fifteen (15) days after receipt of such notice, then a City Delay, Force Majeure Delay, or ACFD Delay, as set forth in such notice, shall be deemed to have occurred commencing as of the date such notice is received and continuing for the number days the design of or completion of the ACFD Improvements was in fact delayed as a direct result of such action or inaction. Party Delay (b) The term “” as used in this Improvement Agreement shall mean any delay that either party may encounter in the performance of their obligations under this Improvement Agreement because of the other Party’s acts or omissions of any nature, whether committed willfully, negligently, intentionally, or otherwise, that result in any delay including any: (i) delay attributable to changes in or additions to the Plans, or to the ACFD Improvements requested by ACFD, as well as any delays caused by a change order issued at the other Party’s request; (ii) delay attributable to failure to timely approve any and all Plans for ACFD Improvements; (iii) delay attributable to failure to act in good faith in cooperating with the other Party, its architects, engineers, and contractors in approving Plans; (iv) delay attributable to postponement of any ACFD Improvements at the request of a Party; (v) delay by a Party in furnishing information or giving any other approvals or authorizations within the time limits set forth in this Improvement Agreement, or if no time is set forth for such performance in this Improvement Agreement, then a reasonable time, time being of the essence; (vi) delay attributable to the failure of a Party to pay, when due, any amounts required to be paid by pursuant to this Improvement Agreement or the (vii) any actual delay in the design and/or completion of the Scope of Work resulting from not responding to requests for authorization or approval within the time period provided for response to such request or, if no such time is stated, beyond a reasonable time therefore; (viii) any actual delay in the design and/or completion of ACFD Improvements attributable solely to the acts or failures to act, whether willful, negligent, or otherwise, of a Party, its agents, or contractors, to the extent contrary to the terms hereof. Force Majeure Delay (c) The term “” as used in this Improvement Agreement shall mean any (i) actual delay in the design and/or completion of the Scope of Work attributable to any strike, lockout, or other labor or industrial disturbance (whether or not on the part of the employees of either party hereto), civil disturbance, further order claiming jurisdiction, act of public enemy, war, riot, terrorism, sabotage, blockade, or embargo; (ii) actual delay in the design and/or completion of ACFD Improvements due to changes in any Laws, including the Americans with Disabilities Act; or (iii) actual delay in the design and/or completion of the Scope of Work attributable to terrorist act, lightning, earthquakes, fire, storm, hurricane, tornado, flood, washout, explosion, or any 37 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT other similar industry-wide or Building-wide cause beyond the reasonable control of the party from whom performance is required, or any of its contractors, or other representatives. Any prevention, delay, or stoppage due to any Force Majeure Delay shall excuse the performance of the Party affected for a period of time equal to any such prevention, delay, or stoppage, except the obligations of either Party to pay money, including Rent, and all other charges, pursuant to the terms of the Agreement. 5. Changes. ACFD shall not request or make any changes or substitutions to the Final Plans without City’s prior written approval, which approval shall not be unreasonably withheld; provided, however, that City may disapprove, in its sole and absolute discretion, any such changes or substitutions that: (i) do not conform to applicable governmental regulations or are disapproved by any governmental agency; (ii) require power consumption and/or Building services beyond the level normally provided to other occupants in the Building; (iii) overload the floors; or (iv) in City’s reasonable opinion, are of a nature or quality that is inconsistent with City’s objectives concerning the appearance or quality of the Building. Any such requested changes or substitutions shall be subject to the provisions of Paragraph 4 above, and may constitute a Party Delay as described in Paragraph 4 above. 6. Total Project Cost. Total Project Cost (a) For purposes hereof, “” shall include, without limitation, the following: (i) all design fees, engineering fees, and consultants’ fees incurred by City in connection with the design and engineering of all components of the Scope of Work, including the costs of space plans and all plans and specifications; (ii) governmental agency plan check, permit, and other fees; (iii) sales and use taxes; (iv) Title 24 fees; (v) testing and inspection costs; (vi) the cost of materials, labor, and supplies; (vii) the general contractor’s overhead and profit; (viii) charges for water, electricity, gas, and HVAC during the construction of the Building and the ACFD Improvements; (ix) all other costs expended or to be expended in connection with the construction of the Project, including without limitation, demolition costs, site preparation costs, site improvement costs, and the cost of construction of the Building and the ACFD Improvements; (x) City’s administrative and construction management fees, and(xi) City’s return on costs equal to four percent (4%) of all Project costs, as more particularly set forth in Exhibit B-2. (b) If ACFD requests any changes or substitutions to the Plans, and City approves such changes or substitutions, and such changes and/or substitutions result in an increase in Total Project Cost, then Base Rent payable under the Agreement shall be adjusted to take into consideration such increased costs. All changes or substitutions shall be made at reasonably competitive prices. (c) City and ACFD acknowledge that the costs set forth in Exhibit B-2 are an estimate. The Parties agree that when Total Project Cost is determined, a revised Exhibit B-2 shall be appended to the Memorandum Confirming Commencement Date and Total Project Costs and shall serve as the basis for determination of Base Rent. 38 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT 7. Standards for Performance of the Work. City shall cause the Improvements to be constructed in a good and workmanlike manner, free from design, material, and workmanship defects in accordance with the Final Plans and all Applicable Laws. 8. Inspection and Punchlist. ACFD’s representative shall have the right to enter the Premises at all reasonable times for the purpose of inspecting the progress of construction of the Improvements; provided however, during construction of the Project, ACFD shall not enter the Premises unless accompanied by an authorized agent of City. City shall notify ACFD when the Improvements are substantially complete. On receipt of such notice, ACFD’s representative, City’s representative, and the architect shall promptly inspect the Improvements and prepare a written list (“Punchlist”) of any items that are defective, incomplete, or do not conform to the Final Plans, applicable permits or Applicable Laws. 9. ACFD’s Work. Any item or work not shown in the Final Plans, including, for example, telephone and data service or furnishings, for which ACFD contracts ACFD’s Work separately (hereinafter “”), shall be conducted in such a way as not to hinder, cause any disharmony with, or delay work of improvement in the Building. ACFD shall cause its suppliers and contractors to engage only labor that is harmonious and compatible with other labor working on the Project. In the event of any labor disturbance caused by persons employed by ACFD or ACFD’s contractor, ACFD shall immediately take all actions necessary to eliminate such disturbance. At any time any supplier, contractor, workman, or mechanic performing ACFD’s Work hinders or delays any other work of improvement on the Property or performs any work that may or does impair the quality, integrity, or performance of any portion of the Building, ACFD shall cause such supplier, contractor, workman, or mechanic to leave the Premises and remove all his tools, equipment, and materials immediately upon written notice delivered to ACFD, and ACFD shall reimburse City for any repairs or corrections to the Project caused by or resulting from the work of any supplier, contractor, workman, or mechanic with whom ACFD contracts as Additional Rent under the Agreement. If requested, ACFD shall provide City with adequate proof of insurance required to be maintained by ACFD pursuant to the terms of the Agreement, prior to commencing any ACFD Work. 10. Completion of Scope of Work. ACFD and City shall review and approve the Project construction schedule prior to commencement of work. 11. Party Representatives. 11.a ACFD has designated Deputy Chief Demetrious Shaffer, or his designee, to work with City’s representatives throughout the period of construction of the ACFD Improvements. In the event of a change in personnel, ACFD shall immediately notify City of its replacement representative. In the event the designated ACFD representative will not be available, due to a vacation or any other extended absence from the office, 39 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT ACFD shall notify City of an interim ACFD representative, and the dates such interim representative shall be ACFD’s representative. 11.b City has designated Herma Lichtenstein, Facility Project Manager, to work with ACFD’s representatives throughout the period of construction of the Plan and ACFD Improvements. In the event of a change in personnel, City shall immediately notify ACFD of its replacement representative. In the event the designated City representative will not be available, due to a vacation or any other extended absence from the office, City shall notify ACFD of an interim City representative, and the dates such interim representative shall be City’s representative. 12. ACFD’s Default. Notwithstanding any provision to the contrary contained in the Agreement, upon the occurrence of an Event of Default on the part of ACFD under the Agreement, or upon a default by ACFD under this Improvement Agreement prior to substantial completion of the Project, then (i) in addition to all other rights and remedies granted to City pursuant to the Agreement, City shall have the right to cause any and all engineers, architects, contractors, and any other persons associated with the design or construction of the Project to cease work thereon; and (ii) all other obligations of City under the Agreement and this Improvement Agreement shall be abated until such time as such default is cured in accordance with the terms of the Agreement, or this Improvement Agreement, as applicable. 13. Casualty; Risk of Loss. If the Premises or any portion of the Improvements are damaged or destroyed prior to the date that City notifies ACFD pursuant to Section 8 that the Improvements are substantially complete, City shall promptly cause the general contractor to restore the Premises and complete the construction of the Improvements. All proceeds of builder’s risk insurance applicable to the loss shall be disbursed in accordance with customary practices of institutional construction lenders as the restoration progresses, and all other costs of completing the Improvements shall be factored in to Base Rent in accordance with Section 1 of this Improvement Agreement. 14. Authority To Sign. Pursuant to Section 17.1 of the Agreement, this Improvement Agreement is executed by the ACFD Chief and by the City Manager 15. Counterparts. This Improvement Agreement may be executed in counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. SIGNATURES ON FOLLOWING PAGE(S) 40 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT IN WITNESS WHEREOF, the parties have executed this Improvement Agreement as of the Effective Date of the Maintenance Facility Use Agreement. ACFD CITY ALAMEDA COUNTY FIRE DISTRICT, CITY OF DUBLIN, By: _______________________________ By: _______________________________ Print Name:________________________ Its: City Manager Title: Alameda County Fire District Chief _ Attest:_____________________________ City Clerk Approved as to Form: Approved as to Form: Donna R. Ziegler, County Counsel ___________________________________ City Attorney By:__________________________ Senior Deputy County Counsel 41 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Exhibit B-1 MEMORANDUM OF PLANS For MAINTENANCE FACILITY USE AGREEMENT (Scarlett Court) This Memorandum of Plans executed as of __________, 2012, is a supplement to that Agreement” certain Maintenance Facility Use Agreement (“) entered into effective as of City July 1, 2012 by and between the CITY OF DUBLIN, a municipal corporation (“”), and ALAMEDA COUNTY FIRE DISTRICT, a dependent fire district formed under the Fire Protection District Law of 1961 (Health and Safety Code Sections 13801 et seq.) and ACFD” governed by the Alameda County Board of Directors (“). Capitalized terms used herein without definition shall have the meaning ascribed to such terms in the Agreement. City and ACFD hereby agree as follows: Attached hereto is a true and correct copy of the Plansfor the Maintenance Facility that is the subject of the Agreement. The Plans are hereby incorporated into the Agreement. Pursuant to Section 3 of the Improvement Agreement (Exhibit B to the Agreement), and and Section 17.1 of the Agreement, this Memorandum of Plans is executed by the ACFD Chief and by the City Manager. IN WITNESS WHEREOF, this Memorandum of Plans is hereby executed as of the date first written above. ACFD CITY ALAMEDA COUNTY FIRE DISTRICT, CITY OF DUBLIN, By: _______________________________ By: _______________________________ Print Name:________________________ Its: City Manager TitleAttest:_____________________________ Alameda County Fire District Chief City Clerk Approved as to Form: Approved as to Form: Donna R. Ziegler, County Counsel __________________________________ City Attorney By:__________________________ Deputy County Counsel 42 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT Exhibit B-2 Estimated Costs; Formula for Determining Base Rate ACFD Maintenance Facility Rent Analysis Assumptions Total Building size 18,300 Land Value (City cost psf) $20.17 Agreement Term 20 Rental Adjustment 6.00% Adjustment timing (Years) 2 Project Cost Proforma Land (City Cost Basis) $1,757,210 Building Costs and ACFD Improvements $3,902,000 Indirect Costs $1,086,320 Total Project Cost $6,745,530 Less: ACFD Contribution $3,500,000 Net City Project Cost $3,245,530 Agreement Rate Analysis Cost Return on Cost $3,245,530 4.00% Rent Overview(with adjustment every 2 years) Annual Years 1-2 $129,821 Years 3-4 $137,610 Years 5-6 $145,867 Years 7-8 $154,619 Years 9-10 $163,896 Years 11-12 $173,730 Years 13-14 $184,154 Years 15-16 $195,203 Years 17-18 $206,915 Years 19-20 $219,330 Total Rent 43 2064077.1 AMENDED AND RESTATED MAINTENANCE FACILITY USE AGREEMENT