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<br />ARTICLE V
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<br />MAINTENANCE; TAXES; INSURANCE; USE LIMITATIONS; AND OTHER MATTERS
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<br />Section 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of the
<br />Lease Agreement, as part of the consideration for the rental of the Property, all improvement,
<br />repair and maintenance of the Property shall be the responsibility of the City and the City shall
<br />pay, or otherwise arrange for the payment of, all utility services supplied to the Property which
<br />may include, without limitation, janitor service, security, power, gas, telephone, light, heating,
<br />water and all other utility services, and shall pay for or otherwise arrange for the payment of
<br />the cost of the repair and replacement of the Property resulting from ordinary wear and tear or
<br />want of care on the part of the City or any assignee or sublessee thereof. In exchange for the
<br />Lease Payments herein provided, the Authority agrees to provide only the Property, as
<br />hereinbefore more specifically set forth. The City waives the benefits of subsections 1 and 2 of
<br />section 1932 of the California Civil Code, but such waiver shall not limit any of the rights of the
<br />City under the terms of this Lease Agreement.
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<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 City
<br />shall be obligated to pay only such installments as are required to be paid during the Term of
<br />the Lease Agreement as and when the same become due.
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<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 opinion
<br />of Independent Counsel, by nonpayment of any such items, the interest of the Authority in the
<br />Property will be materially endangered or the Property or any part thereof will be subject to
<br />loss or forfeiture, in which event the City shall promptly pay such taxes, assessments or charges
<br />or provide the Authority with full security against any loss which may result from
<br />nonpayment, in form satisfactory to the Authority.
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<br />Section 5.2. Modification of Property. The City shall, at its own expense, have the right
<br />to remodel the Property or to make additions, modifications and improvements to the Property.
<br />All additions, modifications and improvements to the Property, but not any additional
<br />buildings or improvements, shall thereafter comprise part of the Property and be subject to the
<br />provisions of this Lease Agreement. Such additions, modifications and improvements shall not
<br />in any way damage the Property, substantially alter its nature, cause the interest component of
<br />Lease Payments to be subject to federal income taxes or cause the Property to be used for
<br />purposes other than those authorized under the provisions of State and federal1aw; and the
<br />Property, upon completion of any additions, modifications and improvements made thereto
<br />pursuant to this Section 5.2 (but excluding any additional buildings or improvements that do
<br />not comprise part of the Property), shall be of a value which is not substantially less than the
<br />value of the Property immediately prior to the making of such additions, modifications and
<br />improvements. The City will not permit any mechanic's or other lien to be established or
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<br />JT25S-29
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