Common use of Records and Budgets Clause in Contracts

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner a proposed operating budget and a proposed capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by Owner. In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the "Current Month") until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("Base Month"), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. Owner may revoke its approval of either Budget at any time upon twenty (20) days' prior written notice to Property Manager. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner a proposed operating budget and a proposed capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by Owner. Following approval by Owner the Approved Capital Budget and the Approved Operating Budget shall be promptly uploaded into the Yardi accounting system for the Property. In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the "“Current Month"”) until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("“Base Month"”), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. Owner may revoke its approval of either Budget at any time upon twenty (20) days' ’ prior written notice to Property Manager. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' ’ prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner and Legacy such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner and Legacy a proposed operating budget and a proposed capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by Owner. In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the "“Current Month"”) until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("“Base Month"”), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. Owner may revoke its approval of either Budget at any time upon twenty (20) days' ’ prior written notice to Property ManagerManager and Legacy. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' ’ prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner and Legacy for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner and Legacy for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner a proposed operating budget and a proposed capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by Owner. Following approval by Owner the Approved Capital Budget and the Approved Operating Budget shall be promptly uploaded into the Yardi accounting system for the Property. In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the "Current Month") until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("Base Month"), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. Owner may revoke its approval of either Budget at any time upon twenty (20) days' prior written notice to Property Manager. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.the

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner Manager such monthly, quarterly, annual or other operating and capital budgets for the Property as shall may be required by Manager or Owner, including, without limitation, those required to be delivered to CalPERS under the Operating Agreement. Without limitationlimiting the generality of the foregoing, Property Manager shall prepare and submit to Owner Manager a proposed annual operating budget and a proposed annual capital budget for the Property for the management and operation of the Property in sufficient time so that Owner may deliver the same to CalPERS when called for under the Operating Agreement. All payments to be made to Property Manager or an Affiliate thereof shall be separately itemized and explained in the proposed annual operating budget and the proposed capital budget. The proposed annual operating and capital budgets shall be in a form approved by Manager. Manager will review the proposed budgets and if Manager considers them acceptable, will present them to Owner for approval, and if necessary under the Operating Agreement, to CalPERS for approval. If Manager and/or CalPERS considers any proposed budget unacceptable, Manager shall specify to Property Manager the reason(s) therefor and Property Manager shall revise and resubmit the budget until it is accepted by Manager and approved by Owner and/or CalPERS. The parties intend that an "Approved Operating Budget" and an "Approved Capital Budget" for the forthcoming Fiscal Year no later than November following calendar year shall be in place for the Property by January 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by OwnerTerm. In the event an annual operating budget for a the Property has not been approved by Owner prior to the commencement of any Fiscal Year calendar year during the term hereofTerm, the operating budget for each calendar month (the "Current Month") until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("Base Month"), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located IndexBU.S. Cities Average (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics Statistics, and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in Month. Property Manager shall submit such adjusted monthly operating budget to Manager for review not more than 10 days before the taxes, insurance and utilities first day of the Propertymonth for which it is proposed, and such budget, after approval by Manager, shall be deemed an "Approved Operating Budget" for purposes of this Agreement. Property Manager shall have the right from time to time to submit proposed revised budgets to Manager, and Manager shall recommend to Owner whether or not such revised budgets should be approved by Owner. Property Manager shall use diligence and all reasonable efforts to prevent the actual costs of maintaining and operating the Property from exceeding the Approved Operating and Capital Budgets. All budgets shall be effective only when approved by Owner, or necessary under the Operating Agreement, when approved by CalPERS. Owner may revoke its approval of either Budget any budget at any time upon twenty (20) days' prior written notice to Property Managertime. Owner may amend its approval of either Budget any budget and cause require the Budget budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager and, in such event, only the Budget budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the termAfter revoking or amending an Approved Budget, if not a full twelve months, Property Manager shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time right to time, during each calendar year to submit revised Budgets to Owner for approval. require Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the terminate any agreements or void any actions which are no longer consistent with an Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicableBudget.

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner and Legacy such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner and Legacy a proposed operating budget and a proposed capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget only when approved by Owner. In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the "Current Month") until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("Base Month"), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. Owner may revoke its approval of either Budget at any time upon twenty (20) days' prior written notice to Property ManagerManager and Legacy. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner and Legacy for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner and Legacy for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.

Records and Budgets. Property Manager (a) Lessee shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Lessee has previously prepared and submitted to Owner an annual operating budget and an annual capital budget for the Property Manager for the year ending December 31, 2002, which Owner has reviewed and approved and which shall prepare on Microsoft Excel worksheets constitute the Approved Operating Budget (using Yardi templatesas hereinafter defined) and submit the Approved Capital Budget (as hereinafter defined) for such year. The Approved Operating Budget for the year ended December 31, 2002 is attached as Exhibit B to Owner this Agreement and the Approved Capital Budget for such monthlyyear is attached as Exhibit C to this Agreement. For each year thereafter during the Term, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager Lessee shall prepare and submit to Owner a proposed annual operating budget and a proposed annual capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year pursuant to this Agreement no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereofTerm for the following calendar year. The proposed annual operating and capital budgets shall become be in a form consistent with prior budgets delivered by Lessee to Owner or Owner's Affiliates. Lessee covenants that the proposed budgets as submitted shall include only expenses which Lessee reasonably believes are necessary to enable Lessee to operate the Property in compliance with the Management Standard and Applicable Laws. Owner shall review the proposed budgets, shall not unreasonably withhold its consent to same and Lessee and Owner shall work together in good faith to resolve any questions raised by Owner promptly. From and after the time at which Owner grants its written consent to such budgets they shall be deemed to be the "Approved Operating Budget" and the "Approved Capital Budget," and collectively the "Approved Budgets," subject to the variance procedures provided for herein. The parties intend that an Approved Operating Budget and an Approved Capital Budget and for each calendar year shall be in place for the Approved Operating Budget only when approved Property by Owner. January 31 of each year during the Term. (b) In the event an annual operating budget for a the Property has not been approved by Owner prior to the commencement of January 31 for any Fiscal Year calendar year during the term hereofTerm, the operating budget for each calendar month (the "Current Month") until the annual operating budget for that year is approved shall be the amount budgeted for the last calendar month of the most recent Approved Operating Budget for the Property for the same calendar month ("Base Month"), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published monthly by the United States Department of Labor, Bureau of Labor Statistics for the metropolitan area closest to the Property, and (b) any increase or decrease in Lessee shall provide a copy of such index to Owner upon request. Lessee shall submit such adjusted monthly operating budget to Owner for review not more than ten days before the occupancy first day of the Property between month for which it is proposed, and such budget, after written approval by Owner and until a new annual operating budget is approved pursuant to the Base Month and the Current Month and terms hereof, shall be deemed an "Approved Operating Budget" for purposes of this Agreement. (c) Lessee shall not exceed the amount of any increase item or decrease in items shown on the taxes, insurance and utilities Approved Capital Budget by more than an aggregate of $35,000 per annum or the amount of any item or items shown on the Approved Operating Budget by more than 5% per annum for any single line item or 2% of the Property. aggregate Approved Operating Budget without explicit advance written authorization from Owner may revoke its approval of either Budget at (other than any time upon twenty (20) days' prior written notice expenditure reasonably and necessarily incurred by Lessee in an Emergency during which Lessee is unable to Property Manager. contact Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager andfor authorization; provided, in such eventhowever, only the Budget as so amended that Owner shall be deemed approvedinformed of any such expenditures and the reasons therefor immediately and in no event later than the end of the second business day immediately following the Emergency). With respect The variance of $35,000 per annum for the Approved Capital Budget is hereinafter referred to as the "Permitted Capital Variance," the variance of 5% per line item (subject to a limit of 2% of the aggregate Approved Operating Budget) for the Approved Operating Budget is herein referred to as the "Permitted Operating Variance" and the Permitted Capital Variance and the Permitted Operating Variance are herein collectively referred to as the "Permitted Variances." Subject to the first Fiscal Year of the termPermitted Variances, if not a full twelve months, Property Manager Lessee shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30a) days after the date hereof. Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs cost of maintaining and operating the Property shall will not exceed the Approved Operating Budget, (b) obtain Owner's prior written approval for any expenditure exceeding the Approved Operating Budget or the Approved Capital Budget pertaining theretoBudget, as applicable, other than the Permitted Variances and (c) diligently seek to minimize the cost of overtime labor consistent with maintaining and operating the Property in accordance with the Management Standard and Applicable Laws. Lessee shall obtain and credit to Owner all discounts, rebates or commissions obtainable with respect to purchases, contracts, maintenance and repair work or other transactions made on Owner's behalf consistent with maintaining and operating the Property in accordance with the Management Standard and Applicable Laws. -5- (d) An Approved Operating Budget shall constitute an authorization for Lessee to expend money to operate and manage the Property to the extent consistent therewith without further approval. Lessee shall not without prior written consent of Owner incur any expenses in the operation or maintenance of the Property which would exceed in aggregate, during the period covered by such Approved Operating Budget, the annual amount budgeted for such expenses, except with respect to the Permitted Operating Variance as provided in subsection (c) above. Lessee shall provide Owner with quarterly reports reflecting Lessee's compliance with subsection (c) and this subsection (d). Whenever the total budgeted amount is (or appears likely to be) exceeded by more than the Permitted Variances, a cumulative budget variance in excess of the Permitted Operating Variance and a revised operating budget shall be presented to Owner for its approval. Except as expressly permitted in this Agreement, Lessee may not act outside of the existing Approved Operating Budget and Permitted Operating Variance until the revised operating budget is approved in writing by Owner, whereupon such revised operating budget shall become the Approved Operating Budget. Once approved, Lessee's authority with respect to the revised or any additionally revised budget is the same as Lessee's authority for the original Approved Operating Budget. Lessee shall not be deemed to be in breach or violation of this Agreement on account of any amounts expended by Lessee at Owner's specific written request for purposes not included in any Approved Budget.

Records and Budgets. Property Manager shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner such monthly, quarterly, annual or other operating and capital budgets for the Property as shall may be required reasonably requested by Owner. Without limitationlimiting the generality of the foregoing, Property Manager shall prepare and submit to Owner Manager a proposed annual operating budget and a proposed annual capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November October 1 of each year during the term hereofTerm for Owner’s following fiscal year. All Owner’s fiscal year commences on January 1 and ends on December 31. The proposed annual operating budgets and capital budgets shall be on in a form submitted provided by Property Manager Owner and otherwise reasonably approved by OwnerOwner (hereinafter referred to as the “Approved Operating Budget” and “Approved Capital Budget”, respectively). Owner will consider review the proposed budgets and endeavor if Owner considers them acceptable, will so notify Property Manager. If Owner considers any proposed budget unacceptable, Owner shall specify to approve Property Manager in writing the reason(s) therefor, and Property Manager shall revise and resubmit the budget until it is accepted by Owner. Notwithstanding the foregoing, if the proposed annual operating and capital budgets for any fiscal year reflects a material adverse variance of 3.0% or more from the amount of net operating income anticipated to be received from the Property during such budgets by December 1 fiscal year (based upon the greater of each year during (i) the term hereof. The proposed budgets shall become actual net operating income received from the Approved Capital Budget and Property in the prior fiscal year, or (ii) the budgeted net operating income for the Property, as reflected in the Approved Operating Budget only when approved by Ownerand Approved Capital Budget for the prior fiscal year), then Property Manager shall promptly notify Owner of such variance. Property Manager shall use reasonable efforts to complete reconciliation of (A) actual operating expenses and real property taxes for the Property allocable to each calendar year with (B) the estimated operating expenses and real property taxes for such calendar year utilized in billing tenants for their proportionate share of excess operating expenses and real property taxes allocable to such calendar year within seventy-five (75) days following such calendar year. In the event an annual operating budget for a the Property has not been approved by Owner prior to the commencement of any Fiscal Year fiscal year during the term hereofTerm, the operating budget for each calendar month (the "“Current Month"”) until the annual annual, operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month ("“Base Month")”) in the prior fiscal year, as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the an applicable Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics selected by Manager and (b) the increase or decrease in those “variable” items within the most recent Approved Operating Budget for the Property which are affected by any increase or decrease in the occupancy of the Property between the Base Month and the Current Month (e.g. electricity, water and (c) any increase or decrease in other utilities). Property Manager shall submit such adjusted monthly operating budget to Owner for review not more than ten days before the taxes, insurance and utilities first day of the Propertymonth for which it is proposed, and such budget, after approval by Owner, shall be deemed an “Approved Operating Budget” for purposes of this Agreement. Property Manager shall have the right from time to time to submit proposed revised budgets to Owner, and Owner shall determine whether or not such revised budgets should be approved. Property Manager shall use diligence and all reasonable efforts to prevent the actual costs of maintaining and operating the Property from exceeding the Approved Operating and Capital Budgets. All budgets shall be effective only when approved by Owner. Owner may revoke its approval of either Budget any budget at any time upon twenty (20) days' prior written notice provided that Owner supplies Property Manager with an Owner-approved budget to Property Managerreplace such revoked budget. Owner may amend its approval of either Budget any budget and cause require the Budget budget to be amended to conform to such approval at any time upon twenty (20) days' prior written notice to Property Manager and, in such event, only the Budget budget as so amended shall be deemed approved. With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit take such action as is necessary to Owner for approval an operating and capital implement any newly approved or amended budget for the balance of such calendar year as soon quickly as possible and no later than reasonably possible, but in any event within thirty (30) days after the date hereofreceipt of any such newly approved or amended budget. Property Manager After revoking or amending an Approved Budget, Owner shall have the right, from time right to time, during each calendar year to submit revised Budgets to Owner for approval. require Property Manager agrees to use diligence terminate any agreements or void any actions which are no longer consistent with an Approved Budget, provided that Owner bears the expense and all reasonable efforts to ensure that the actual costs liability (if any) of maintaining and operating the Property shall terminating any agreements which are not exceed the Approved Operating Budget terminable on thirty (30) days notice (or the Approved Capital Budget pertaining thereto, as applicableless).