|
ARTICLE V
<br /> MAINTENANCE, TAXES, INSURANCE AND OTHER
<br /> MATTERS
<br /> Section 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of this
<br /> Lease Agreement, as part of the consideration for the rental of the Leased Premises, all
<br /> improvement,repair and maintenance of the Leased Premises shall be the responsibility of the
<br /> City and the City shall pay for or otherwise arrange for the payment of all utility services
<br /> supplied to the Leased Premises which may include,without limitation,janitor service,security,
<br /> power, gas, telephone, light, heating, water and all other utility services, and shall pay for or
<br /> otherwise arrange for the payment of the cost of the repair and replacement of the Leased
<br /> Premises resulting from ordinary wear and tear or want of care on the part of the City or any
<br /> assignee or lessee thereof. In exchange for the Lease Payments herein provided, the Authority
<br /> agrees to provide only the Leased Premises, as hereinbefore more specifically set forth. The City
<br /> waives the benefits of subsections 1 and 2 of Section 1932 of the California Civil Code,but such
<br /> waiver shall not limit any of the rights of the City under the terms of this Lease Agreement.
<br /> The City shall also pay or cause to be paid all taxes and assessments of any type or
<br /> nature, if any, charged to the Authority or the City affecting the Leased Premises or the
<br /> respective interests or estates therein; provided that with respect to special assessments or
<br /> other governmental charges that may lawfully be paid in installments over a period of years,the
<br /> City shall be obligated to pay only such installments as are required to be paid during the Term
<br /> of this Lease Agreement as and when the same become due.
<br /> The City may, at the City's expense and in its name, in good faith contest any such
<br /> taxes, assessments, utility and other charges and, in the event of any such contest, may permit
<br /> the taxes,assessments or other charges so contested to remain unpaid during the period of such
<br /> contest and any appeal therefrom unless the Authority shall notify the City that, in the
<br /> reasonable opinion of the Authority, by nonpayment of any such items, the interest of the
<br /> Authority in the Leased Premises will be materially endangered or the Leased Premises or any
<br /> part thereof will be subject to loss or forfeiture,in which event the City shall promptly pay such
<br /> taxes, assessments or charges or provide the Authority with full security against any loss which
<br /> may result from nonpayment,in form satisfactory to the Authority and the Trustee.
<br /> Section 5.2. Modification of Leased Premises. The City shall, at its own expense, have
<br /> the right to make additions, modifications and improvements to the Leased Premises. All
<br /> additions, modifications and improvements to the Leased Premises shall thereafter comprise
<br /> part of the Leased Premises and be subject to the provisions of this Lease Agreement. Such
<br /> additions,modifications and improvements shall not in any way damage the Leased Premises -or cause the Leased Premises to be used for purposes other than those authorized under the
<br /> provisions of State and federal law;and the City shall file with the Trustee and the Authority a
<br /> Written Certificate of the City stating that the Leased Premises, upon completion of any
<br /> additions, modifications and improvements made thereto pursuant to this Section 5.2, shall be
<br /> of a value which is not substantially less than the value of the Leased Premises immediately
<br /> prior to the making of such additions, modifications and improvements. The City will not
<br /> permit any mechanic's or other lien to be established or remain against the Leased Premises for
<br /> labor or materials furnished in connection with any remodeling, additions, modifications,
<br /> improvements,repairs, renewals or replacements made by the City pursuant to this Section 5.2;
<br /> provided that if any such lien is established and the City shall first notify or cause to be
<br /> notified the Authority of the City's intention to do so, the City may in good faith contest any
<br /> lien filed or established against the Leased Premises, and in such event may permit the items so
<br /> contested to remain undischarged and unsatisfied during the period of such contest and any
<br /> -11-
<br />
|