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September 25, 2019

The Honorable Board of Supervisors County Administration Building 1221 Oak Street, Suite 536 Oakland, CA 94612-4305

AGENDA# __ October 15, 2019

Vv'ILLIE A. HOPKJ1 :',JR., Director

510 208 9700 FAX 510 208 9711 WWW.ACGOV.ORG/GSA/

SUBJECT: APPROVE A MODIFICATION TO THE FIRE WATER LINE AND RECIPROCAL EASEMENT AND MAINTENANCE AGREEMENT FOR 6775, 7001 AND 7195 OAK.PORT STREET, OAKLAND

Dear Board Members:

RECOMMENDATIONS:

A. Approve an Amendment to Reciprocal Easement and Maintenance Agreement (The Agreement) with Walnut Creek Associates 5 Incorporated (Acura) (Principal: Maurice Arnold; Location: Oakland) at 6775, 7001 and 7195 Oakport Street, Oakland (Arena Center) to release one another from fire water line easements in exchange for Acura contructing at its expense a replacement fire water line on County property;

B. Authorize the President of the Board to execute the Agreement with Acura;

C. Authorize the Director, General Services Agency, to accept from Acura the Quitclaim of the Easement in accordance with the terms of The Agreement;

D. Authorize the Director, General Services Agency to execute County's Quitclaim of Easement to Acura in accordance with the terms of The Agreement; and

E. Authorize the Director, General Services Agency, or his Designee, to execute all other documents as necessary, upon review and approval of County Counsel, to effectuate the Agreement.

SUMMARY/DISCUSSION:

Between 1998 and 2001 Zhone Technoloiges Campus, LLC (Zhone) aquired entitilements to and began construction of a four-building, 13 acre office campus located on Oakport Street in Oakland. This build included shared infrastructure such as water, sewer and fire-water lines which were to serve the needs of the entire campus. With two buildings completed and during construction of the third, Zhone fell into financial trouble and ceased construction. The fourth planned office building was never constructed.

Honorable Board Members Arena Center Fire Water Line Adjustment

Page 2 September 25, 2019

On June 28, 2007, the Zhone parcel was subdivided into two parcels. Parcel One consists of ten acres to the south containing the three office buildings. Parcel Two consists of three acres to the north, which was then aquired by the Redevelopment Agency of the City of Oakland (Oakland RDA), and served for many years as a parking lot.

On June 29, 2007 a Reciprocal Easement and Maintenance Agreement was recorded with both the parcel owned by Zhone; APN 41-3902-22, and the parcel owned by Oakland RDA; APN 41-3902- 21 (Instrument Number 20072422123). This agreement created mutual covenants and reciprocal benefits between the two parcels for the easements and maintenance of all shared utlitities.

On July 29, 2014, your Board approved (File No. 29415, Item No. 53.2) and on September 29, 2014 the County consomated the aqusition of the Parcel One Property known as Arena Center

On September 1, 2017, the City of Oakland sold Parcel Two to Anemone 1031 LLC, represented by Walnut Creek Associates 5 Incorporated (Acura) whose purpose was to create a new home for the Acura of Oakland car dealership. In doing so, Acura constructed a separate fire water line to serve their needs, abandoning their need for the exiting fire water line.

After construction of the new dealership, General Services Agency (GSA) staff discovered the Acura of Oakland facility was built on top of the existing fire water line loop which now serves only to protect County's Arena Center.

Upon discovery, GSA began working with Acura to plan a modification to the existing, shared fire water line loop so that the portion that exists on the Acura Parcel can be abandoned in place and a new portion of the loop be constructed soley on, and to serve the needs of, County's Arena Center. This new construction will be beneath the County's parking lot, thus better ensuring integrity, while allowing for future, unimpeded access to the infrustructure, should it be necessary.

Construction drawings have received formal approval from all applicable regulatory agencies and utility providers. Acura has agreed to fund and perform all construction for the project. Construction can begin upon execution of The Agreement by your Board and is anticipated to reach completion no later than June 30, 2020. Once construction is complete and the work accepted, GSA Staff will facilitate the execution of quitclaims by the parties of their respective fire water line easements across each other's property, which will relieve Acura of the covenant of existing fire water line maintenance.

Amendment to Reciprocal Easement and Maintenance Agreement Notice of the intended action: Pursuit to Government Code section 25365, at its noticed meeting on October 15, 2019 the Alameda County Board of Supervisors will consider approval of County of Alameda’s intent to enter into an Amendment to Reciprocal Easement and Maintenance Agreement (Instrument Number 20072422123) concerning the County’s property at 6775, 7001, 7195 Oakport Street, Oakland pursuant to which the County and adjacent property owner Walnut Creek Associates 5, Inc. will mutually release one another from fire water line easements on each party’s property in exchange for Walnut Creek Associates 5, Inc. constructing at its expense a replacement fire water line on County’s property, along with other terms and conditions. In accordance with Government Code section 25365 and 6061, this notice must be published once in a newspaper of general circulation one week prior to the meeting at which the amendment agreement will be considered by the Board.