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TABLE OF CONTENTS (continued) Page ARTICLE III TERM SECTION 3.1. SECTION 3.2. EFFECTIVE DATE AND INITIAL TERM....................................................... 24 RENEWAL OPTION.................................................................................... 24 ARTICLE IV TRANSITION PERIOD SECTION 4.1. AUTHORITY TRANSITION PERIOD RESPONSIBILITIES .............................. 25 (A) Obligation to Proceed.......................................................................... 25 (B) Access to Facilities During Transition Period....................................... 26 (C) Notice of Default..................... .......................... ......... ... ..... ........... ......26 SECTION 4.2. CITY TRANSITION PERIOD RESPONSIBILITIES .......................................... 27 SECTION 4.3. COMMENCEMENT DATE CONDITIONS..................................................... 27 (A) Commencement Date Conditions Defined............................................ 27 (B) Commencement Date Conditions for which Both Parties Have Responsibility..................................................................................... 28 (C) No Payment to Either Party for Transition Period Expenses of the Other................................................................................................. 28 SECTION 4.4. CLOSING THE TRANSITION PERIOD..... ....................... .............................. 29 (A) Establishment of Commencement Date............................................... 29 (B) Failure of Conditions.................... ................ ................ ..... ... ........... ...29 SECTION 4.5. CITY UTILITY CONTRACTS........................................................................ 29 (A) Current Workscope............................................................................. 29 (B) W orkscope Changes ........................................................................... 30 ARTICLE V PERMITTING RESPONSIBILITIES SECTION 5.1. SECTION 5.2. SECTION 5.3. AUTHORITY PERMITTING RESPONSIBILITIES........................................... 31 CITY PERMITTING RESPONSIBILITIES...................................................... 31 OTHER REPORTING REQUIREMENTS....................................................... 31 ARTICLE VI MANAGEMENT AND OPERATION SECTION 6.1. OWNERSHIP AND USE OF THE FACILITIES............................................... 32 (A) City Ownership.................................................................................. 32 (B) Use.................................................................................................... 32 (C) Use of Transferred Property ....... ............................. ..... .......... ... ... .......32 (D) City Access to Facilities...................................................................... 32 (E) Liens and Encumbrances................................................................... 33 (F) Authority Prohibitions........................................................................ 33 (G) Third-Party Access............................................................................. 33 SECTION 6.2. AUTHORITY OBLIGATIONS GENERALLy.................................................... 34 (A) Management Responsibility................................................................ 34 (B) Transfer and Application of Industry Experience................................. 34 SECTION 6.3. CITY OBLIGATIONS GENERALLy............................................................... 34 SECTION 6.4. FACILITIES CONDITION CONFIRMATION.................................................. 34 (A) Familiarity with Facilities.................................................................... 34 (B) "As-Is" Condition of Facilitie................................................................ 35 (C) Limitations on the Authority's Assumption of" As- Is" Ris .....................35 SECTION 6.5. SERVICE COORDINATION......................................................................... 36 (A) Authority's Facilities Manager............................................................. 36 (B) City Approval of Replacement Facilities Manager................................. 36 (ii)