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<br /> 2 <br />3. TERM. The term of this Agreement (the “Term”) shall commence on the <br />Effective Date, and unless sooner terminated pursuant to the provisions hereof, shall expire on <br />the tenth (10th) anniversary of the Effective Date. There may be three (3) additional five (5) year <br />term extensions (“Extension”). Six (6) months prior to the end of any Term, the Lessee must give <br />the City written notice of the intent to exercise an Extension. <br />4. RENT. Notwithstanding anything to the contrary in the 2005 agreement, the <br />Lessee shall pay to the City rent for the Premises (“Rent”) in the amount of ten thousand seven <br />hundred eighty two dollars ($10,782) per month. Each July 1, the Rent shall automatically <br />increase by 3.5%. <br />5. USE. It is agreed that the Premises shall be used primarily as a training center for <br />area firefighters and law enforcement personnel. The Premises shall be used in compliance with <br />relevant local, state, and federal laws and regulations and for no other purpose without the prior <br />written consent of the City. The Lessee shall not encroach on the public right of way adjacent to <br />the Premises or on any portions of the property that are not part of the Premises. <br />6. TAXES. Both Parties are governmental entities and exempt from payment of <br />most taxes. However, the Lessee agrees to pay all lawful real and personal property taxes and <br />assessments levied by the State, County, the City or other tax or assessment levying bodies, upon <br />the Property, the Premises, and any goods, wares, merchandise, equipment and other materials <br />stored or kept therein, should any be assessed. <br />7. MAINTENANCE, REPAIRS AND CAPITAL IMPROVEMENTS. The Lessee <br />shall, at its sole cost and expense, and without any liability to the City, operate and maintain the <br />Premises and Improvements in good order, in compliance with applicable laws, and in safe, <br />sanitary and clean condition, reasonable wear and tear excluded, and in compliance with all <br />local, state and federal laws relating to the use, occupancy or operation of the Premises. The <br />Lessee shall keep and maintain all portions of the Premises free of accumulation of dirt, rubbish, <br />and graffiti. The Lessee is required to maintain, repair and/or replace (at its sole expense) <br />including, but not limited to: interior and exterior paint and carpet, all electrical conduit, wiring, <br />etc., smoke alarms, restrooms, roofs, gutters, HVAC, plumbing, foundations, flood damage, <br />water heaters, appliances, stairs and entryways, gas lines, seismic upgrades, ADA upgrades, <br />doors, windows and window coverings, flooring, and asbestos removal/management. Without <br />limiting the generality of the foregoing, the Lessee shall also be responsible for maintaining <br />landscaping on the Premises, as well as any security features installed by Lessee. The Lessee <br />expressly acknowledges and agrees that the City has no obligation to maintain the Premises. <br /> <br />Costs for capital improvements, including repair or construction of fencing, any <br />necessary repair or resurfacing of paved surfaces on the Premises and structural repairs not <br />including the maintenance items listed above will be apportioned to the City based on its <br />membership in the Alameda County Fire Department. Such repairs shall be at least equal in <br />quality to the original work, reasonable wear and tear accepted. The City’s prior approval shall <br />be required for any repairs or improvements estimated to cost in excess of five thousand dollars <br />($5,000). In addition, the Lessee shall provide prior notice to the City of any and all <br />improvements to be made to the Property or Premises. The Lessee shall take reasonable steps to <br />ensure that access to the Premises is limited to the Lessee and the Lessee’s agents, employees,