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b. Lien for Costs of Required Maintenance. In the event that Property Owner fails to
<br />correct, remedy, or cure or has not commenced correcting, remedying or curing such deficiency after
<br />notification and after expiration of any applicable cure period, then the City shall have the right to maintain,
<br />repair, care for and, if and when necessary, replace such Private Improvements at the Property Owner's
<br />expense. The Property Owner agrees to pay the City upon demand all charges and costs incurred by the
<br />City for such maintenance, repair and replacement work. Until so paid, the City shall have a lien on the
<br />Site for the amount of such charges or costs, which lien shall be perfected by the recordation of a "Notice
<br />of Claim of Lien" against the Property. This lien shall affect all parcels jointly if portions of the Property
<br />have been sold. Any lien in favor of the City created or claimed hereunder is expressly made subject and
<br />subordinate to any mortgage or deed of trust made in good faith and for value, recorded as of the date of
<br />the recordation of the Notice of Claim of Lien, and no such lien shall in any way defeat, invalidate, or
<br />impair the obligation or priority of any such mortgage or deed of trust, unless the mortgagee or beneficiary
<br />thereunder expressly subordinates its interest, of record, to such lien. No lien in favor of the City created
<br />or claimed hereunder shall in any way defeat, invalidate, or impair the obligation or priority of any lease,
<br />sublease or easement unless such instrument is expressly subordinated to such lien.
<br />C. Legal Action. The City may bring legal action to collect the sums due as the result
<br />of expending public monies to maintain, repair and, if and when necessary, replace any Improvements
<br />which are the responsibility of the Property Owner as provided herein. The Property Owner agrees that if
<br />the City brings legal action to enforce its rights under this Section 6, the Property Owner shall pay the City
<br />all costs incurred by it, including reasonable attorneys' fees and court costs, together with interest from the
<br />date the City provided notice under Section 6.a, at the rate of seven percent (7%) per annum.
<br />d. Additional Remedies. The Property Owner acknowledges and agrees that the City
<br />may also pursue any and all other remedies available in law or equity in the event of a breach of the Property
<br />Owner's obligations and agreements set forth herein.
<br />C. Intention of City. Nothing in this Section 6 shall be construed, either expressly or
<br />by implication, as indicating an intention of the City to exercise dominion or control over the Improvements.
<br />Any City acceptance of Improvements may only occur through formal City action separate from this
<br />Agreement.
<br />f. Termination. Property Owner agrees that any termination of the Services shall
<br />be governed by applicable statutes, regulations, ordinances and other legal requirements applicable to
<br />termination of Services within the jurisdictional boundaries of the City.
<br />7. NO IMPAIRMENT OF LIEN. No violation or breach of the agreements, conditions,
<br />restrictions, provisions or limitations contained in this Agreement shall defeat or render invalid or in any
<br />way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument;
<br />provided, however, that any successor of Property Owner to the Site or any portion thereof shall be bound
<br />by such agreements, conditions, restrictions, limitations and provisions, whether such successor's title was
<br />acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise.
<br />8. ENCROACHMENT PERMIT; RIGHT OF ENTRY. The Property Owner and the City
<br />acknowledge that, to the extent that the Improvements are located within the City rights-of-way, the
<br />Property Owner shall obtain a single on-going revocable encroachment permit from the City in order for
<br />the Property Owner to perform its obligations under this Agreement. Such an encroachment permit shall
<br />set forth the terms and provisions upon which the Property Owner has a right to enter onto such rights-of-
<br />way in order to perform maintenance, inspection, repair and, if and when necessary, replacement services
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<br />REV: 5-23-19 PR
<br />ATfY/AGR.2019.140/Yip —Sewer Maintenance Agreement
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