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ARTICLE V
<br />MAINTENANCE; TAXES; INSURANCE; USE LIMITATIONS; AND OTHER MATTERS
<br />Section 5.1. Maintenance, Utilities. Taxes and Assessments. Throughout the Term of
<br />the Lease Agreement, as part of the consideration for the rental of the Property, all
<br />improvement, repair and maintenance of the Property shall be the responsibility of the City
<br />and the City shall pay, or otherwise arrange for the payment of, all utility services supplied
<br />to the Property which may include, without limitation, janitor service, security, power, gas,
<br />telephone, light, heating, water and all other utility services, and shall pay for or otherwise
<br />arrange for the payment of the cost of the repair and replacement of the Property resulting
<br />from ordinary wear and tear or want of care on the part of the City or any assignee or
<br />sublessee thereof. In exchange for the Lease Payments herein provided, the Authority agrees
<br />to provide only the Property, as hereinbefore more specifically set forth. The City waives
<br />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 Property or the respective
<br />interests or estates therein; provided that with respect to special assessments or other
<br />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
<br />Term of the 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
<br />permit the taxes, assessments or other charges so contested to remain unpaid during the
<br />period of such contest and any appeal therefrom unless the Authority shall notify the City
<br />that, in the opinion of Independent Counsel, by nonpayment of any such items, the interest
<br />of the Authority in the Property will be materially endangered or the Property or any part
<br />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
<br />which may result from nonpayment, in form satisfactory to the Authority.
<br />Section 5.2. Modification of Property. The City shall, at its own expense, have the
<br />right to remodel the Property or to make additions, modifications and improvements to the
<br />Property. All additions, modifications and improvements to the Property, but not any
<br />additional buildings or improvements, shall thereafter comprise part of the Property and
<br />be subject to the provisions of this Lease Agreement. Such additions, modifications and
<br />improvements shall not in any way damage the Property, substantially alter its nature,
<br />cause the interest component of Lease Payments to be subject to federal income taxes or
<br />cause the Property to be used for purposes other than those authorized under the
<br />provisions of State and federal law; and the Property, upon completion of any additions,
<br />modifications and improvements made thereto pursuant to this Section 5.2 (but excluding
<br />any additional buildings or improvements that do not comprise part of the Property), shall
<br />be of a value which is not substantially less than the value of the Property 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 Property 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
<br />5.2; provided that if any such lien is established and the City shall first notify the Authority
<br />of the City's intention to do so, the City may in good faith contest any lien filed or
<br />established against the Property, and in such event may permit the items so contested to
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