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HomeMy WebLinkAbout1989-070 Lease - T Hangar - Sandler Films CITY OF ASHLAND GROUND LEASE AGREEMENT for CONSTRUCTION OF A "T" HANGAR ASHLAND MUNICIPAL AIRPORT THIS LEASE AGREEMENT made this ~/~-~day of July 1989, by and between the CITY OF ASHLAND, a municipal corporation called "Lessor", also called "City" and SANDLER FILMS, INC., called "Lessee". THE PARTIES RECITE AND DECLARE AS FOLLOWS: A. The city is the owner and operator of Sumner-Parker airport situated in the City of Ashland, Oregon, called "Airport", with power to grant right and privileges with respect to its use. B. Lessee is the owner of aircraft based at the Airport and wishes to construct a hangar for storage of aircraft. Co City is willing to lease to Lessee a portion of the Airport premises together with such rights and privileges as are set forth in this .agreement. D. Lessee agrees to abide by the General Aviation Minimum Standards, called "Standards", to be adopted by the City in August 1989. A draft copy of the Standards is attached as Exhibit "C". After the adoption of the Standards by the City, said Standards will become a permanent part of this agreement as Exhibit "C-i". It is understood that the adopted Standards will be in substantial conformance with the draft Standards. NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE TERMS AND CONDITIONS CONTAINED HEREIN, LESSEE AND CITY AGREE AS FOLLOWS: ARTICLE I - PREMISES Section 1.01 - Description. city leases to Lessee on the terms and conditions stated below the premises consisting of a tract of land described in Exhibit "A". Section 1o02 - Use of Premises. A. Lessee agrees that the premises shall be used for the storage, maintenance and fabrication of Lessee owned aircraft. Other items of personal property may be stored temporarily when such storage in no way interferes with the normal storage area of the aircraft in the hangar, and does not otherwise violate this Agreement. Lessee further agrees not to store any flammable or explosive liquids or solids within the premises. For the purpose of this Agreement, "flammable or explosive liquids or solids" shall not apply to fuel or other flammable contained within any airplane or automobile placed in the hangar. Fueling of the aircraft while in the hangar is strictly prohibited. 1 B. Lessee shall have the right to construct an aircraft storage hangar in accordance with the proposal of Lessee as approved by the Airport Commission and to keep and maintain the hangar in accordance with Exhibits "B" and "B-i". C. Lessee shall have the right to construct a ramp in accordance with specifications to be approved in writing by the City to provide ingress and egress to the hangar. Section 1.03 - Grant of Right. Lessee is granted the right to operate its aircraft and to use the Airport, together with all facilities, equipment, improvements, and services which have been or may be provided at the Airport including the landing field and any extensions or additions, roadways, runways, aprons, taxiways, floodlights, landing lights, beacons, signals, radio aides, and all other conveniences for flying, landings, and take-offs. Section 1.04 - Right of Ingress and Egress; Use of Vehicles; Lessee and escorted visitors or customers shall have the right of ingress and egress to and from the premises described in Exhibit "A". Lessee shall take reasonable care to assure that Lessee does not interfere with City's operation of the Airport for the benefit of the public and of all aircraft using the Airport. Section 1.05 - Rights and Privileges Reserved to the City Include: A. The right to develop or improve the landing area of the airport without interference or hindrance of the Lessee. B. The right, but not the obligation, to maintain and keep in repair the landing area of the Airport, together with the right to direct and control all activities of Lessee. C. The right to take any action considered necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on the Airport which, in the opinion of the City, would limit the usefulness of the Airport and constitute a hazard to aircraft. D. The right to temporarily close or to restrict the use of the Airport or any of the facilities for maintenance, improvement, or for the safety of the public. Section 1.06 - Rules and Regulations - Lessee shall observe and obey rules and regulations established by City for the Airport; provided that such rules and regulations shall be consistent with safety and rules, regulations, and orders of the Federal Aviation Administration. See also recital D., page 1. 2 Section 1.07 - Instrument of Transfer. City is the owner of premises described above as recorded in Volume 576, page 172 of the deed records of Jackson County. Should City be denied the right of possession of these premises, this lease shall immediately terminate without restitution to and without any right of claim by Lessee against City. ARTICLE II - TERMS Section 2.01 - Term. The term of this lease shall commence on the date of issuance of a building permit by the city but not later than the 1st day of January, 1990, and shall continue for a period of twenty (20) years. If the Airport is closed for reasons other than normal maintenance, reconstruction or new construction, the term of this lease shall automatically be extended for an equal period of time. If the period of Airport closure exceeds 6 months, the Lessee shall have the option of extending the lease as noted above or may terminate this lease by notifying the city in writing thirty (30) days prior to termination and remove all improvements constructed by Lessee from the Airport at Lessee's expense. The leased land shall be returned to its' original pre-construction condition. Section 2.02 - Renewal Option. At the termination of the lease, the Lessee will have the first right of refusal to lease premises from the City at current rental rates established by the City. ARTICLE III - RENTALS AND CHARGES Section 3.01 - Lease Fees. An initial monthly rental of no dollars ($0.00) per square foot of land described in Exhibit "A" is established for the term of this lease specified in Article II, Section 2.01. No lease fee for land is charged because the City will assume ownership the hangar at no cost, free of encumbrances at the termination of this lease. Lease fees specified in Article II, Section 2.02 will be subject to periodic adjustments at the option of the City, and are payable to the designated fixed base operator as determined by the City, monthly in advance, on the 1st day of each and every calendar month. Lease fees will become past due the llth day of the calendar month and the city will charge interest of 1.5% per month on past due lease fees. Ail sums resulting from the computation of monthly lease fee shall be rounded to the nearest whole dollar in favor of Lessee. In no event shall the land lease rate be less than no (0) cents per square foot throughout the term of this lease. 3 ARTICLE IV - LESSEE OBLIGATIONS Section 4.01 - Construction of Improvements. Lessee shall construct its planned hangar in substantial accordance with the proposal of Lessee marked Exhibits "B" and "B-i". Lessee shall complete construction within twelve (12) months of the execution of this lease. Lessee shall, as a condition of this lease, invest directly in the improvements to be made upon the demised premises under this lease not less than fifty percent (50%) of the cost estimates as set forth in the attached Exhibit "D" made by Lessee for the construction, equipping, and furnishing the premises in accordance with Exhibits "B and B-i". Prior to any construction, alteration or changes upon the leased premises, Lessee shall submit to City final plans and specifications, site-use plan, and architectural rendering and shall not commence any construction until Lessee has received City's written approval. City approval will include, but not be limited to Planning, Building, and Engineering Divisions and Airport Commission. Section 4.02 - Title to Improvements. At the termination of this lease as specified in Article II, Section 2.01, the improvements described in Article 1, Sections 1.02 B & C, including any further improvements to the premises approved by the City and the Airport Commission, shall become property of City, free and clear of all claims of Lessee or any one claiming under Lessee, and Lessee shall indemnify and defend City against all liability and loss arising from such claims. Section 4.03 - Maintenance. Lessee shall keep and maintain the leased premises and all improvements in good and substantial repair and condition, including the exterior condition. Lessee shall make all necessary repairs and alterations and shall maintain the leased premises and all improvements in compliance with all applicable building and zoning laws and all other laws, ordinances, orders and requirements of all authorities having or claiming jurisdiction. Lessee shall provide proper containers for trash and garbage and shall keep the leased premises free and clear of weeds, rubbish, debris, and litter at all times. City shall at all times during ordinary business hours have the right to enter upon and inspect such premises. Section 4.04 - Utilities. Lessee shall promptly pay any charges for electricity and all other charges for utilities which may be furnished to the leased premises at Lessee's order or consent. Section 4.05 - Liens. Lessee shall pay all sums of money that become due for any labor, services, materials, supplies, utilities, furnishings, machinery or equipment which have been furnished or ordered by Lessee which may be secured by lien against the premises. ARTICLE VI - INSURANCE AND INDEMNITIES Section 6.01 - Indemnity and Hold Harmless. Lessee shall keep and save the City, its officers, agent and employees harmless from any and all liability for damage to persons or property while lawfully upon the premises occurring by reason of the failure of Lessee to observe any covenants of this lease, or by reason of any negligent use of the premises by Lessee, its agents, servants, or licensees. Lessee agrees to contract for and maintain in full force and effect public liability insurance specified for the protection of the City and Lessee as the respective interest of either appears under this lease against liability for damage to persons or property arising out of the occupance of the premises by Lessee during the term of this lease. $ 50,000 $ 100,000 $ 300,000 - Property Damage - For death or injury to any one person in any one accident; - For death or injury to two or more persons in any one accident. In the event of an increase in the City's exposure under the Oregon Torts Claims Act as it now exists or subsequently may be amended, Lessee agrees to increase its policy coverage within thirty (30) days after receiving written notice from the city of such increased exposure. Section 6.02 - Copy of Certificate of Insurance. A copy of a certificate of insurance for each insurance policy shall be delivered to the City within a reasonable period of time. The City may, upon thirty (30) days prior written notice, require Lessee to replace any policy or certificates with another policy or certificate where such a request is reasonably justified. All policies or certificates shall provide for a minimum of ten (10) days notice to the City in the event of cancellation or material change in the terms. It is further agreed that Lessee shall indemnify the City against the payment of all costs, including reasonable attorney's fees, to be fixed by any Court, incurred by the City for the protection or defense of any proceedings to discharge the premises from any liens created or suffered by Lessee. Section 6.03 - Damage or Destruction of Premises. If the leased premises or any improvements are damaged or destroyed by fire or other casualty, Lessee shall: A. promptly repair, rebuilt or restore the property damaged or destroyed to substantially the same condition consistent with the applicable building codes; and B. apply for any net proceeds of insurance resulting from claims for such losses, as well as any additional money of Lessee necessary. 5 If the damage or destruction which occurs is such that the cost of repair, rebuilding or restoration of the property damaged or destroyed exceeds fifty percent (50%) of the fair market value of the improvements, Lessee shall have the option within sixty (60) days from the date of damage or destruction, to notify City in writing whether or not Lessee elects to repair, rebuild, or restore in accordance with Paragraph A above or to terminate this lease. Upon giving such notice to terminate, this lease shall terminate on the date specified in the notice and City shall be entitled to the net proceeds of insurance. ARTICLE VII - DEFAULT Section 7.01 - Events of Default: A. Default in Rent: Failure of Lessee to pay any rent or other charge within ten (10) days after it is due. B. Default in Other Covenants: Failure of Lessee to comply with any term or condition or fulfill any obligation of the lease (other than the payment of rent or other charges) within thirty (30) days after written notice by City specifying the nature of the default. If the default is such that it cannot be completely remedied within the thirty (30) day period, this provision shall be complied with if Lessee begins correction of the default within the thirty (30) day period and proceeds in good faith to effect the remedy as soon as practicable. C. Insolvency: Insolvency of Lessee and assignment by Lessee for the benefit of creditors; the filing by Lessee of a voluntary petition in bankruptcy; an adjudication that Lessee is bankrupt or the appointment of a receiver of the properties of Lessee; the filing of an involuntary petition of bankruptcy and failure of the Lessee to secure a dismissal of the petition within thirty (30) days after filing; attachment of or the levying of execution on the leasehold interest and failure of the Lessee to secure discharge of the attachment or release of the levy of execution within ten (10) days. Section 7.02 - Remedies on Default: In the event of a default, the City at its option may terminate the lease by notice in writing by certified or registered mail to Lessee. The notice may be given before or within thirty (30) days after the running of the grace period for default and may be included in a notice of failure of compliance. If the property is abandoned by Lessee in connection with a default, termination shall be automatic and without notice. A. Damages: In the event of termination of default, City shall be entitled to recover immediately the following amounts as damages: 6 1. The reasonable cost of re-entry and reletting including the cost of any clean up, refurbishing, removal of Lessee's property and fixtures, or any other expense occasioned by Lessee's failure to quit the premises upon termination and to leave the premises in the required condition, any remodeling costs, attorney fees, court costs, broker commissions and advertising cost. 2. The loss of reasonable lease fee value from the date of default until a new tenant has been or, with the exercise of reasonable efforts, could have been secured. B. Re-entry After Termination: If the lease is terminated for any reason, Lessee's liability to City for damages shall survive such termination, and the rights and obligations of the parties shall be as follows: 1. Lessee shall vacate the property immediately, and within sixty (60) days remove any property of Lessee including any fixtures which Lessee is required to remove at the end of the lease term, perform any cleanup, alterations or other work required to leave the property in the condition required at the end of the term. 2. City may re-enter, take possession of the premises and remove any persons or property by legal action or by self- help with the use of reasonable force and without liability for damages. C. Reletting: Following re-entry or abandonment, City may relet the premises and in that connection may: 1. Make any suitable alterations or refurbish the premises, or both, or change the character or use of the premises, but City shall not be required to relet for any use or purpose (other than that specified in the lease) which City may reasonably consider injurious to the premises, or to any tenant which City may reasonably consider objectionable. 2. Relet all or part of the premises, alone or in conjunction with other properties, for a term longer or shorter than the term of this lease, upon any reasonable terms and conditions, including the granting of some lease fee-free occupancy or other lease fee concession. ARTICLE VIII - TERMINATION Section 8.01 - Termination. Upon termination of the lease by the passage of time or otherwise, Lessee shall surrender the leased premises in good condition. The Lessee's obligations under this paragraph shall be subordinate to the provisions of Article VI, Section 6.03 related to improvements as required and the City shall have the remedies described in Section 7.02 above. ARTICLE IX - GENERAL PROVISIONS Section 9.01 - Assignment of Interest or Rights: Neither Lessee or any assignee or other successor of Lessee shall sublease, assign, transfer or encumber any of Lessee's rights in and to this lease or any interest, nor license or permit the use of the rights granted without the prior written consent of the City. Consent will not be unreasonably withheld by the City. Lessee shall not assign all or any part of its rights and interests under this lease to any successor through merger, consolidation, or voluntary sale or transfer of substantially all of its assets, without prior written approval of the City. Section 9.02 - Condemnation: If the leased premises or any interest is taken as a result of the exercise of the right of eminent domain, this lease shall terminate as to such portion as may be taken. If the portion taken does not feasibly permit the continuation of the operation of the facility by the Lessee, the Lessee shall have the right to cancel. Such cancellation shall be effective as of the date of taking. City shall be entitled to that portion of the award as represented by the land and the improvements. Lessee shall furnish the City with a certified copy of the building costs and said certified copy shall be incorporated as Exhibit "D" to this document. If the City assumes the property via condemnation, the City will pay the pro-rata share of value remaining to the lessee. Such pro- rata share shall be based on the documented construction cost of the structural portion of the hangar based on a 20 years, each year valued at one-twentieth (1/20) of the value stated in Exhibit "D" for each year remaining beyond the date of this lease agreement. The City may repay Lessee for the pro-rata remaining value on a time payment contractual basis for a term not to exceed the remaining term of the lease at a negotiated interest rate based substantially on current market interest rates. Section 9.03 - Nonwaiver: Waiver by either party of strict performance of any provision of this lease shall not be a waiver of or prejudice the party's right to require strict performance of the same provision in the future or of any other provision. Section 9.04 - Attorney Fees: If suit or action is instituted in connection with any controversy arising out of this lease, each party shall bear the cost of its own attorney fees. Section 9.05 - Time of Essence: It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this lease. Section 9.06 - Warranties/Guarantees: City makes no warranty, guarantee, or averment concerning the physical conditions of the leased premises, and it is agreed that City will not be responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such physical condition during the lease period. Section 9.07 - Consent of City: Whenever consent, approval or direction by the City is required, all such consent, approval or direction shall be received in writing from the City Administrator. Section 9.08 - Notices: Ail notices required under this lease shall be deemed to be properly served if sent by certified or registered mail to the last address previously furnished by the parties. Until changed by the parties by notice in writing, notices shall be sent to: The City of Ashland 20 E. Main Street Ashland, OR 97520 Attn: City Administrator Allen F. Sandler President Sandler Films, Inc. P.O. Box 306 Ashland, OR 97520 Date of service of such notice is deposited in a post office of the United States Post Office Department, postage prepaid. Section 9.09 - Modification: Modification of the lease as to term, area or any reason shall result in renegotiation of the lease fee. Section 9.10 - Severability. If any term or provision of this lease is to any extent invalid or unenforceable, the remaining terms and provisions of this lease will not be affected and will be valid and enforceable to the fullest extent, either as provided in this lease or as permitted by law. Section 9.11 - Quiet Enjoyment. City agrees that Lessee, performing Lessee's obligations, shall be entitled to and shall have the quiet possession and enjoyment of the premises, facilities, rights and privileges leased to it. Section 9.12 - Sponsor's Assurance Subordination: This lease shall be subordinate to the provisions of any existing or future agreement between the City and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the Airport. 9 Section 9.13 - Nondiscrimination: Pursuant to Title VI of the Civil Rights Action of 1964, and by Part 15 of the Federal Aviation Regulations, Lessee agrees it will not, on the grounds of race, color or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations. The City reserves the right to take such action as the United States may direct to enforce the provisions of these covenants. IN WITNESS WHEREOF, the parties hereto have subscribed their names. THE CITY OF ASHLAND: CATHERINE M. GOLDEN, ~YOR N~-~ FI~ANKLIN,-CITY RECORDER PRESIDENT S~DLER FI~S, INC. .Before me: (SEAL) APPROVED BY CITY COUNCIL ON JULY 5, 1989 STATE OF OREGON ) County of Jackson ) On the ~'~ day of /~~ 198~, personally appeared f~/l~,~ ~-z'~ who being duly sworn acknowledged this · instrumont to be his voluntary act and deed. Notary Public forfQregon My Commission Exp~es: 10 F- I-N-A- L D-R-A-F-T CITY OF ASHLAND GENERAL AVIATION Minimum Standards at ASHLAND MUNICIPAL AIRPORT Ashland, Oregon PURPOSE - The following "Minimum Standards" and requirements for general aviation commercial aeronautical activities have been established in the public interest for the safe and efficient operation of the Ashland Municipal Airport (AIRPORT) to enhance the orderly growth; to comply with Federal, State and local government legal requirements; and to provide information to parties operating or desiring to operate at the Airport. These standards establish minimum levels of service that shall be offered in order to protect the public welfare and prohibit irresponsible, unsafe, or inadequate services. The City of Ashland (CITY) reserves the right to waive these standards, or portions thereof, when it deems in its discretion, such waiver is in its best interest and would not be discriminatory to those operations at the airport. Set forth below are minimum standards and criteria applying to the general aviation commercial activities at the airport. SECTION 1. Definitions The following terms used in the Minimum Standards are defined as follows: Aeronautical Activity - Any commercial activity which involves, makes possible, or is required for the operation of general aviation aircraft, or which contributes to or is required for the safety of such operations, but does not include activities of Air Carriers, Air Commuter Service providers, or the military. Aeronautical Activity Provider - A commercial enterprise providing one or more aeronautical activities for the general aviation public as hereafter enumerated, also hereinafter called a Specialty Operator. Air Carriers - The commercial system of air transportation, consisting of the Certified Route Air Carriers, Supplemental Air Carriers, commercial operators of large aircraft (Aircraft Charter), and Air Travel Clubs, all using aircraft capable of carrying 60 or more passengers. Air Commuter Service - An Air Taxi which performs at least five round trips per week between two or more points and publishes flight schedules which specify the times, days of the week, and points between which flights are performed. Operators which are registered under 14 CFR Part 298 may also operate aircraft of less than 60 passenger, and less than 18,000 lb. payload capacity. Air Taxis in this category are required to have a lease and/or operating agreement with the City. Aircraft Charter - The provision of aircraft larger than Air Taxi for hire, with pilot, on an irregular or unscheduled basis in accordance with FAR Part 121. Aircraft Rental - The rental of an aircraft without a pilot. Air Taxi - The carriage in air commerce of persons or property for compensation or hire, on a demand basis, as a commercial operator (not an air carrier) in aircraft having a maximum seating capacity of less than 20 passengers or a maximum payload capacity of less than 6,000 pounds, or the carriage in air commerce of persons or property in common carriage operations solely between points entirely within any state of the United States in aircraft having a maximum seating capacity of 30 seats or less or a maximum payload capacity of 7,500 pounds or less. These operators operate in accordance with FAR Part 135. Air Travel Club - An operator who engages in the carriage by aircraft of persons who are required to qualify for that carriage by payment of an assessment, dues, membership fee, or other similar types of remittance. Ashland Municipal Airport - Sumner-Parker Field, a municipal general aviation airport operated by the city of Ashland, also referred to as "AIRPORT". Aviation Related Business - A business in which the service, product, or activity is directly used in the operation or service of aircraft. Certificated Route Air Carrier - An air carrier holding a Certificate of Public Convenience and Necessity issued by DOT to conduct scheduled services. Non-scheduled or charter operations may also be conducted by these carriers. city of Ashland - The City of Ashland, Oregon, an Oregon Municipal Corporation and owner of the Ashland Municipal Airport, also referred to as "CITY". Fixed Base Operator - An Aeronautical Activity Provider meeting specified minimum standards contained herein and providing one or more Aeronautical Activities for general aviation users. Flying Club - An association of pilots who collectively own, lease, or rent aircraft. Each club must be a non-profit corporation (in accordance with IRS rules) or partnership. Each member must be a bona fide stockholder in the corporation. The club's aircraft may not be used by other than bona fide members for rental and by no one for commercial operations as defined by these standards. General Aviation - The following aviation activities: Use of aircraft for private, business, recreational or agricultural purposes, but not including the activities of Aeronautical Activity Providers, Air Carriers, or military activity. Minimum Standards - The qualifications established by the City in this document as the minimum requirements to be met, as a condition for the right to conduct an Aeronautical Activity on the Airport. Non-Commercial Aviation Operation - A business or corporate group engaging in general aviation activity only for the private or internal purposes of such business or corporate enterprise and not offered as a commercial activity or service to the general public. Normal Business Hours - Eight (8) hours per day except as otherwise authorized by the city. Person - Individual, partnership, joint venture, corporation, stock company, association, or any other business organization. Primary Fixed Base Operator - The Fixed Base Operator leasing the City terminal building, maintenance hangar and fueling facilities from the City. Ramp Service - The provision of minor services for aircraft including loading and unloading, cleaning, washing, adding oil, parking, and tying down of aircraft. Ramp Service may also include minor repairs performed on the ramp that can be completed in an S-hour period and that do not require major disassembly of aircraft. Scheduled Air Carrier - An Air Carrier performing regularly scheduled air transportation over specific routes to and from Ashland. Scheduled Air Carriers are required to have an operating agreement with the city. Specialty Operator - See Aeronautical Activity Provider. Supplemental Air Carrier - An Air Carrier holding a Certificate of Public Convenience and Necessity issued by DOT authorizing the carrier to perform passenger and cargo charter services FAA Advisory Circular 150/5230-4 "Aircraft Fuel Storage, Handling and Dispensing on Airports". b. Ail fuel storage and dispensing facilities constructed, installed and/or maintained on the Airport must be approved by the City. c. Any fuel delivered into any aircraft by the PFBO shall be dispensed through a filter, conforming to FAA requirements, at the Ashland Airport. d. Fueling of aircraft by a PFBO at a location other than the PFBO's leased premises shall be permitted only in the event the PFBO is requested to do so by the customer being served. 4. The PFBO shall obtain and keep in full force and effect at all times all approvals, licenses, permits and certificates necessary to conduct a fixed base operation on the Airport. 5. The PFBO shall comply with all laws, ordinances, rules, regulations, directives and circulars issued by any federal, state or local government agency having jurisdiction over the Airport, including but not limited to the requirements of Title VI of the Civil Rights Acts of 1964, any Exclusive Right prohibitions, all Affirmative Action requirements of Title 14 Code of Federal Regulations Part 152 and lease provisions required by the FAA. 6. The PFBO shall comply with all the rules and regulations established and maintained by the City. 7. The PFBO shall obtain FAA approval, by way of FAA Form 7460-1 or any other appropriate approvals, prior to commencing any construction or installation on the leasehold. 8. The PFBO shall provide reasonable security for the leased premises. 9. The PFBO shall provide necessary and appropriate training of all employees including, but not limited to, training in fuel safety and fire and accident procedures. 10. The PFBO shall submit to lessor monthly reports of operations, such reports to include but not be limited to data relative to fuel sales, landings and takeoffs, hangar occupancy, number of tie-downs occupied, special events, and narrative information as to overall usage of the subject airport. 8 11. It is mutually understood and agreed that City shall have access to the PFBO's accounts and records at any time during the normal business hours upon three days' notice for the purposes of audit. It is further understood and agreed that the City shall have the right to one unannounced audit per year at the City's expense. It is mutually understood and agreed that incidental to this right of inspection, that the PFBO shall keep acceptable accounting records according to standard approved accounting procedures for income tax purposes during the term of this lease and for at least three (3) years after the expiration of the lease or the extension thereof. III. Other FBO Rendered Services The PFBO will serve as the City's representative disseminating and monitoring the Rules and Regulations Pertaining to the Ashland Municipal Airport as adopted by Council Resolution No. 78-10 or as amended by the City Council (Exhibit A, attached). IV. Other Services In the conduct of its fixed base operation, the PFBO may conduct other types of business listed in categories B through K on its leased premises subject to the approval of the Airport Commission and City Administrator or authorized designee, or at such other locations as may be approved by the City Administrator or authorized designee. CATEGORY B. AVIATION FUEL SALES AND RAMP SERVICE A Fixed Base Operator in this category shall comply with all the minimum standards, and provide all of the Aeronautical Activities, hereinafter listed: Land Area: Lease from the City sufficient land on which to locate intended storage and dispensing equipment, buildings, aircraft parking area, tie-downs, auto parking, taxiways, apron or other arrangement approved by the City such lease area may be reduced accordingly. Building Area: Construct, lease or otherwise have available at least one building, conveniently located incorporating properly lighted and heated floor space and office, and provide for public and customer use, a waiting area, rest rooms, and public telephone. Personnel: Have personnel on full-time duty during normal business hours, or as otherwise agreed by the City, adequately trained to operate fuel dispensing equipment in 9 accordance with all applicable local, state and federal laws. Aircraft Fuel Sales: Administer, operate aviation fueling facilities, and sell appropriate aviation fuels to the public. FBO shall comply with all terms and conditions of the City. 4.1 REQUIREMENTS FOR COMMERCIAL FUELING (a) Fueling Areas: Designate a specific area(s) for aircraft fueling and mark such areas (no smoking, etc.) (see NFPA 407 and FAA Advisory Circular 150/5230-4). (b) Fueling Systems: Maintain separate fueling systems for each grade of fuel provided including separate tanks, filters, pumps and hoses. (c) Grounding: Provide and use adequate grounding (see uniform fire code NFPA 407, Article 24, 1985 ED) facilities in each fueling area and utilize such grounding during all fueling operations. (d) Fire Extinguishers: Provide fire extinguishers in all fueling areas and on all mobile fueling equipment in accordance with NFPA and FAA Standards (see subsection g below). Each extinguisher shall be checked and recharged, if necessary, every month. (e) Fuel Filters: Fuel filters shall be changed in accordance with the fuel pump and filter manufacturers standards. (f) Types of Fuel: Lessee shall provide 80, 100 and turbine fuel unless otherwise authorized by the City. (g) FAA Standards: FAA advisory circular 150/5230-4 as amended pertaining to aircraft fuel, storage and handling shall be complied with. (h) Fuel Reporting: Register with the fuels tax branch, State of Oregon Department of Motor Vehicles; provide copies of the monthly fuels tax report to the City (see ORS 319.140) no later than 30 days following the end of the month. (i) Meters to be LiCensed: License all fuel dispensing equipment with the Dept. of Agriculture, weights and measures division (ORS 618.121). 10 (J) Tank Capacity: Provide at least 10,000 gallons of fixed (permanent) tank capacity for each type of fuel provided. (k) Fueling Safety, Standards and Spills: Comply with the requirements of the City and Oregon Dept. of Environmental Quality relating to spills and other standards as promulgated by the City. (1) Storage Facilities: Ail above and underground fuel storage facilities shall be constructed and maintained to current State of Oregon Department of Environmental Quality requirements. The aeronautical activity provider shall hold the City harmless and pay all expenses for correction of contamination caused by their facilities and operations. 5. Ramp Service: Perform Ramp Service for the general aviation public, air carriers, and other persons and firms. Ramp Service may also include minor repairs performed on the ramp that can be completed in an 8 hour period and that do not require major disassembly of aircraft. 6. Airport Surveillance. FBO shall post in a conspicuous place on any premises used by the FBO all rules and regulations imposed and furnished by the City pertaining to the public use of the airport. FBO shall notify City of any potentially dangerous conditions or hazards existing at the Airport. CATEGORY C. FLIGHT INSTRUCTION AND AIRCRAFT RENTAL A Fixed Base ~Operator in this category shall comply with all the minimum standards, and provide all of~the Aeronautical Activities, hereinafter listed: 1. Have available on a full-time employment basis at least one employee during normal business hours, or as otherwise agreed by the City. The instructor pilot shall have appropriate and current Federal Aviation pilot and medical certificates. 2. Provide and, at all times, maintain at least one aircraft owned or leased by and under the exclusive control of this fixed base operator which is properly equipped and Federal Aviation Administration certificated for flight instruction and rental. 3. Lease from the City sufficient land on which to locate all required improvements and parking space for customers and to provide classroom and/or office space. Customary accommodations for the convenience of users, including a 11 pilot waiting area, rest rooms, informational services (such as connections to the flight service stations and United States Weather Bureau) and public telephone service will also be provided. 4. Continuously meet requirements for certification of flight instructor personnel and aircraft by the Federal Aviation Administration. 5. Assure that personnel operating rental equipment obtained from the subject Fixed Base Operator have appropriate and current Federal Aviation Administration Pilot and approved medical certificates. 6. Have personnel on full-time duty during normal business hours as set forth in the lease. CATEGORY D. AIRCRAFT CHARTER AND AIR TAXI A Fixed Base Operator in this category shall comply with all the minimum standards, and provide all of the Aeronautical Activities, hereinafter listed: 1. Have available on a full-time employment basis, during normal business hours, or as otherwise agreed by the City, a minimum of one Federal Aviation Administration certificated pilot with current commercial and instrument ratings and approved Medical Certificate. 2. Lease from the City sufficient land on which to locate all required improvements, including aircraft tie downs and automobile parking, and provide (for the convenience of passengers) a waiting area, rest rooms, public telephone, etc. in a building or in space rented from the City. 3. Provide satisfactory arrangements for the checking in of passengers, handling of luggage, ticketing, and ground transportation, etc. 4. Provide and, at all times, maintain at least one (1) currently certified and continuously airworthy aircraft owned or leased by and under the exclusive control of this Fixed Base Operator, properly certificated for air charter or air taxi service. CATEGORY E. CROP DUSTING AND SPRAYING A Fixed Base Operator in this category shall comply with all the minimum standards, and provide all of the Aeronautical Activities, hereinafter listed: 12 1. Furnish suitable arrangements for the safe loading, unloading, storage and containment of hazardous chemical materials. 2. Furnish a minimum of one (1) aircraft with pilot. The aircraft shall be suitably equipped for agricultural operations with adequate safeguard against spillage or chemical spray mixtures or materials on runways and taxiways or dispersal by wind force to other operational areas of the airport. The pilot shall have appropriate and current Federal Aviation Administration pilot and medical certificates. 3. Lease from the City adequate land upon which to locate all required improvements (including a hazardous waste spill containment system), provide under terms agreeable to the City for their exclusive use an area for use as a shop or storage space, and provide adequate vehicle parking. 4. Any hazardous materials handled, loaded and stored shall, at all times, be handled, loaded and stored in accordance with State, Federal, County and City laws, rules and regulations. Any leased premises by the licensee at the Airport shall be surrounded with a 6 foot high, chain-linked fence or similar barricade to prevent entry. Any garbage or rubbish which contains or contained agricultural spray chemicals shall not be stored on the airport and shall be disposed of by the licensee off the Airport premises in a lawful manner; no incinerator or open burning is permitted on the Airport for such disposal. CATEGORY F. AIRCRAFT SALES A Fixed Base Operator in this category shall comply with all the minimum standards and provide all of the Aeronautical Activities, hereinafter listed: 1. Have personnel on full-time duty during normal business hours, or as otherwise agreed by the City. 2. Have a minimum of one (1) fully qualified demonstrator pilot employee with current and appropriate Federal Aviation Administration pilot and approved medical certificates. 3. Lease from the City sufficient land on which to locate all required improvements, including customer parking, and office space. 4. Sell only Federal Aviation Administration certified and currently airworthy aircraft to the general public. 13 5. FBO shall be registered with the State of Oregon Aeronautics Division annually in compliance with ORS 493.140, and shall comply with applicable laws governing aircraft dealers during the term of the lease. CATEGORY G. AIRCRAFT, ENGINE , PROPELLER AND ACCESSORY MAINTENANCE A Fixed Base Operator in this category shall comply with all the minimum standards and provide all of the Aeronautical Activities, hereinafter listed: 1. Lease from the City land sufficient to provide customer parking, office space, customer waiting area, and inventory storage. 2. Furnish facilities and equipment for airframe and power plant repairs with at least one duly Federal Aviation Administration certified A&P Mechanic and such other personnel as may be necessary. Such airframe and power plant repair shall include facilities for repair of aircraft and engines used in private aviation in this area. 3. Maintain and operate a repair station approved by the FAA with ratings as follows: Engine, airframe and accessories - classes 1, 2, and 3. 4. Have personnel on full time duty during normal business hours, or as otherwise agreed by the City. CATEGORY H. RADIO AND INSTRUMENT MAINTENANCE, REPAIR AND INSTALLATION A Fixed Base Operator in this category shall comply with all the minimum standards, and provide all of the Aeronautical Activities, hereinafter listed: 1. Lease from the city sufficient land on which to locate all required improvements including a shop and storage space and to provide adequate parking. 2. Have available on a full-time basis during normal business hours, or as otherwise agreed by the City, Federal Aviation Administration certificated technicians in the field of aircraft electronics and/or aircraft instruments with proper Federal Communications Commission license to conduct complete aircraft transmitter, receiver and antennae repair. 3. Maintain and operate a repair station approved by the FAA with ratings as follows: Avionics - classes 1 and 2. 14 4. Provide satisfactory arrangements for access to and storage of aircraft being worked on. CATEGORY I. SALE OF PARTS A Fixed Base Operator in this category shall comply with all the minimum standards, and provide all of the Aeronautical Activities, hereinafter listed: 1. Lease from the City land sufficient to provide customer parking, office space, customer waiting area, and inventory storage. 2. No repairs shall be permitted on the premises, or elsewhere on the Airport, unless licensed under categories F or G above. 3. Have available on a full-time basis during normal business hours, or as otherwise agreed by the City, personnel to sell aircraft parts. CATEGORY J. AIRCRAFT PAINTING Fixed Base Operators in this category shall comply with all minimum standards contained within this document and provide all of the Aeronautical Activities herein after listed: 1. Lease from the City sufficient land on which to locate all required improvements including a hangar, shop storage and office space. 2. Comply with all state and federal regulations regarding painting and the storage of painting materials including OSHA and fire regulations. 3. Any hazardous materials handled, loaded and stored shall, at all times, be handled, loaded and stored in accordance with State, Federal and city laws, rules and regulations. 4. Any garbage or rubbish which contained painting chemicals shall not be stored on the Airport and shall be disposed of by the licensee off the Airport in a lawful manner; no incineration or open burning is permitted on the Airport for such disposal. 5. Have personnel available on a full-time basis during normal business hours, or as otherwise agreed by the City. CATEGORY K; HANGAR KEEPER 15 An Airport tenant in this category shall comply with all of the applicable minimum standards contained herein and: 1. Lease from the City sufficient land for lessees exclusive use which shall be improved in accordance with applicable development standards and use restrictions pertaining to the airport. 2. Sublease hangar space and tie-down area to general aviation solely for the purpose of storing aircraft. Such storage shall be only allowed in manner approved by the City. 3. Provide access to all hangars to the City for the purpose of inspection. Provide to the City upon request, but not less than annually, a listing of all aircraft stored by type, N-Number, and lessees name and address. CATEGORY L. AIRPORT TENANT (CORPORATE ADN PRIVATE USE) An airport tenant in this category shall comply with all of the applicable minimum standards contained herein and: 1. Lease from the City sufficient land for lessees exclusive use which shall be improved in accordance with applicable development standards and use restrictions pertaining to the airport. 2. Conduct only Non-Commercial Aviation Operations. Be prohibited from engaging in any of the activities of Aeronautical Activity Providers, Air Commuter Service or Air Carriers, defined elsewhere in these standards, unless specifically approved by the City in the Lease Agreement between the city and the tenant. 3. Aircraft owned by the tenant or operated from the property leased to or occupied by the tenant are to be operated by personnel who hold appropriate and current Federal Aviation Administration pilot and medical certificates or are to be under the supervision of such personnel. CATEGORY M. FLYING CLUBS An Airport tenant in this category shall comply with all of the minimum standards contained herein and: 1. The following pertains to all flying clubs desiring to base their aircraft at the Airport. 2. Each club must be a non-profit corporation or partnership as defined by the IRS. Each member must be a 16 bona fide stockholder in the corporation. The club shall file and keep current with the City a complete list of the club's membership. In addition, the club shall maintain a set of books showing all club income and expenses. Said books shall be available for inspection by the City to determine compliance with this section. 3. The club's aircraft shall not be used by other than bona fide members for rental and by no one for commercial Aeronautical Activities. Student checkout and/or instruction may be given in a club aircraft to club members by either a Category B Fixed Base Operator on the airport who provides flight training or by an instructor who is a bona fide club member. Renumeration, if any, between bona fide club members, e.g., student and instructor, shall be exempt from the "no commercial operation" restriction above. 4. In the event that the club fails to comply with these conditions, the City will notify the club in writing of such violations. If the club fails to correct the violations in 15 days, the City Administrator or authorized designee may take any action deemed advisable by the City. 5. Each aircraft owned by the flying club must have aircraft liability insurance coverage. SECTION 8. Minimum Improvement Standards. A. Submittal, Review and Approval of Plans. 1. No building or structure of any kind, including but not limited to, buildings, aircraft storage hangars, aircraft maintenance hangars, fencing, improved aircraft parking/tie down areas, landscaping irrigation systems, light fixtures, signs, stationary fuel storage and dispensing facilities, and utilities, shall be erected, have its exterior altered, be added to, be placed or be permitted to remain on the leased premises or any part thereof until and unless the plans showing floor areas, external design and decoration, landscaping, paved roadways, paved taxiways and paved parking areas, structural details and the ground location of the intended structure, together with a plot plan have been first delivered to, reviewed by and approved in writing by the City. All buildings, structures and facilities constructed on the leased premises shall be of new material. The city may require changes, deletions or revisions to the plans submitted in order that the proposed improvements meet the intent, objectives and guidelines of the City, and conform to the building restriction lines set forth in the Airport Layout Plan, the setback requirements for 17 FAA technical and operational equipment on the Airport, as well as applicable codes and regulations of the City and other applicable local, state and federal regulatory agencies. 2. The architectural character of all structures shall be such that they are in harmony with and compatible to the architectural character as established by the City. The architectural character of structures shall include, but not be limited to the overall design, height, construction materials, exterior colors and textures. 3. Notwithstanding the approval of the plans and specifications by the City, neither it, nor any person acting in behalf of the City, shall be responsible in any way for any defects in any plans or specifications or other material submitted to the City, nor for any defects in any work done pursuant thereto. Each FBO submitting such plans or specifications shall be solely responsible for the sufficiency thereof and the adequacy of improvements constructed pursuant thereto. The City shall not be held liable to any person, whether the tenant, its contractor or subcontractor or not, on account of any action or decision of the City or failure of the City to take any action or make any decision. B. Improvements. 1. Aircraft Storage Hangars. In the event the FBO elects to construct aircraft storage hangars, then such storage hangars shall be permanently constructed, erected or installed on pavement designed for the heaviest aircraft anticipated to use the area, and shall be subject to the approval of the city. Aircraft storage hangars shall be of first class, high quality design and constructed with new materials and shall meet the objectives and follow the guidelines set forth for hangar structures on the Airport, including but not limited to building type, construction materials and color standards. Any such construction will be subject to negotiations between the FBO and the City. 2. Fuel Storage and Dispensing Facilities. Any new fuel storage and/or stationary fuel dispensing facilities constructed on the Airport, both additional facilities and replacement facilities, shall be con- structed only in the designated fuel storage area on the Airport. The FBO shall lease from the City fuel facilities and/or sufficient area on which to construct any new or replacement fuel facilities necessary to 18 service its fixed base operation. Design of fuel storage and dispensing facilities, including but not limited to the type, size, height and placement of such facilities shall be subject to the approval of the City. 3. Liqhting. The FBO shall install lighting fixtures on the leased premises necessary to its operation and to protect the safety of guests, patrons, and employees. Lighting fixtures shall conform to the guidelines for lighting fixtures. The City shall review and approve lighting fixtures. The City shall review and approve the location, intensity and illuminating effects of the light fixture(s) to ensure that it presents no hazard to Airport operations. 4. Graphics and Siqns. Ail graphics and signing on the leased premises shall conform to City ordinances and be approved by the Airport Commission. SECTION 9. Noise Impact. Due consideration for the noise impact on the community surrounding the Airport will be given by the FBO in the selection of aircraft and related activities. In the event the above standards conflict with the provisions of the city or other applicable local, state or Federal regulatory agency, the most restrictive standard shall be applied. SECTION 10. Facilities Development. The City has the right to further develop and improve the airport, its property, improvements and future facilities, including hangar construction as the City deems appropriate to the public interest and shall have no responsibility to the FBO for any loss of revenue which might be caused by such development or improvement. SECTION 11. Standard Lease Provisions: Lessee and Persons entering into operating agreements will be required to sign agreements containing standard lease language in accordance with the following: A. Insurance - The City imposes certain insurance requirements on all permittees and Lessees. The types of insurance coverages and amount of insurance (minimum limits) may be adjusted periodically by the City Administrator or authorized designee and may be tailored for a specific permit or lease. A copy of the types and amounts of 19 required insurance can be obtained from the City. The following list is an example of what the City may require, but not necessarily be limited to. 1. Airport Premises Insurance: This insurance protects the City and the public against any and all liability by reason of licensee's conduct incidental to licensee's business at the Airport caused by or arising out of any wrongful act, or omission to act, of licensee. 2. Fire Insurance. Fire insurance will provide coverage on buildings and all facilities occupied for full replacement value unless other coverage amounts have been approved by the City. The proceeds from any fire insurance shall be used for the restoration or reconstruction of the facility(s) should the City so elect that this be done. 3. Hangar Keeper's Legal Liability Insurance. This insurance protects the City and the public against any and all liability by reason of licensee's use, control, or storage of aircraft. 4. Aviation Product Liability Insurance. This insurance protects the City and the public against any and all liability by reason of licensee conducting a repair station, selling lubricants, products, or equipment, and other such services. 5. Automobile Liability Insurance. This insurance protects the City and the public against any and all liability by reason of licensee's vehicles, whether owned, leased, borrowed, or used in licensee's operations at the Airport. 6. Aircraft Liability Insurance. This insurance protects the City and the public against any and all liability by reason of aircraft operation by licensee. 7. Worker's Compensation Insurance. Operators will be required to obtain the statutorily required workers compensation insurance, for all of its employees engaged in work under the terms of the license. 8. General Requirements - Ail Insurance. Operators will be required to name the City as an additional insured on Licensee's insurance policies. Each policy shall contain an endorsement entitling the City to 30 days prior written notice of any material change or cancellation. Insurance policies required shall be placed with companies acceptable to the City and shall 20 be in such form as the City prescribes. A copy of all policies or certificates of insurance thereof satisfactory to the City shall be delivered to the City prior to commencement of licensee's operations showing the City is an additionally named insured, a certificate of insurance evidencing the coverage in effect, limits and expiration date. B. License and Permit Fees. The fee for licenses and permits shall be as determined by the City. These fees shall be due at time of issuance or renewal of license or permit, and shall be payable in such manner as determined by the City and specified in the permit, license, lease, or other applicable regulation. C. Exclusive Use of Premises. Any licensee wishing exclusive use of any premises upon the airport must enter into a lease agreement with the City, upon such terms, conditions and provisions as contained in the lease agreement. D. Termination of Lease or License. The failure of a lessee, permittee, or licensee to comply with the terms of the lease, license, permit, or operating agreement will give the City the right to terminate the agreement or permit. A licensee may appeal any license termination to the City Administrator upon filing written notice of appeal with the City Administrator within 10 days after termination. E. Notice. Ail Aeronautical Activity Providers shall notify the City Administrator or designee in writing of Aeronautical Activity Providers current mailing address. Any notice given by City to Aeronautical Activity Providers shall be deemed to have been received upon personal receipt, or if mailed, either the date of receipt if mailed by certified mail, return receipt requested, or three days after the date of mailing, whether mailed by certified mail or first class mail, whichever occurs first. F. Operation of Business. No Aeronautical Activity Provider shall conduct their business so as to cause a nuisance or to disturb the quiet enjoyment of others, or unreasonably interfere with the operation of other Aeronautical Activity Providers at the Airport. No Aeronautical Activity Provider shall interfere with the convenience or safety of transient aircraft or other operations of the airport. If Aeronautical Activity Provider's flight operations interfere with the safety or convenience of other aircraft, airport users, or air operations, the City may impose restrictions upon such Aeronautical Activity Provider. 21 G. Registration of Aircraft and Commercial Pilots. Any aircraft owned or operated by the licensee and used in its operation shall be registered with the State of Oregon in compliance with ORS 493.030 except as individually registered or covered by a current aircraft dealer's license. Any pilot employed by licensee or any pilot using any of licensee's aircraft shall be registered with the State of Oregon as required by ORS 493.040, except as exempted by said statute. H. Non-discrimination. Aeronautical Activity Provider, permittee, licensee, or lessee, their heirs, personal representatives, successors in interest and assigns shall not discriminate on the grounds of race, color, religion, sex or national origin in the conduct of its business, furnishing of services, or construction of any improvements if permitted by City. I. Combination with Other Operator. No operator shall combine their operations or quarters with any other operator without prior written approval of the City. J. Use of Airport Premises. Operator shall use the airport premises in compliance with all rules and regulations imposed by City, State, or United States Government, including those imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination of Federally Assisted Programs of the Department of Transportation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said rules regulations or statues may be amended after issuance of the license. SECTION 12. Severability. The sections and subsections of these minimum standards are hereby declared severable, and the invalidity of any one section or subsection, word, paragraph or sentence shall not effect the validity of the remaining sections, subsections, words, sentences or paragraphs. APPROVED BY THE CITY COUNCIL ~ ~ 1989 and ADOPTED BY RESOLUTION NO. -~---. Encl. Resolution 22 CITY OF ASHLAND MINIMUM INSURANCE REQUIRF~ENTS FOR AERONAUTICAL ACTIVITY PROVIDERS JULY 1989 The city of Ashland will require any or all, but not be limited to, the following minimum insurance types and amounts for aeronautical activity providers at the Ashland Municipal Airport. Each individual Aeronautical Activity Provider will be analyzed by the City for specific requirements. Aeronautical Activity Providers are required to produce proof of insurance as required by the City of Ashland prior to issuance of a Business License (Ashland Municipal Code Title 6, Chapter 6.04) or Licenses for Commercial Activities at the Ashland Municipal Airport (Ashland Municipal Code, Title 6, Chapter 6.38). General definitions of the types of insurance are contained in section ll.A of the General Aviation Minimum Standards for the Ashland Municipal Airport as adopted by the Ashland City Council. GENERAL REQUIREMENTS-ALL INSUP.~NCE Operators will be required t° name the City as an additional insured on Licensee's insurance policies. Each policy shall contain an endorsement entitling the city to 30 days prior written notice of any material change or cancellation. Insurance policies required shall be placed with companies acceptable to the City and shall be in such form as the City prescribes. A copy of all policies or certificates of insurance thereof satisfactory to the City shall be delivered to the City prior to commencement of licensee's operations showing the City is an additionally named insured, a certificate of insurance evidencing the coverage in effect, limits and expiration date. AIRPORT PREMISES.INSURANCE The minimum insurance coverage shall be $1,000,000. FIRE INSURANCE The minimum insurance coverage shall be for the full replacement value of the facilities. The proceeds from any fire insurance shall be used for the restoration or reconstruction of the facility(ies) should the City so elect that this be done. H~N~AR KEEPERS LE~&L L~ABIL~TY INSUI~,NCE The minimum insurance coverage shall be $100,000 for each aircraft and $500,000 each occurence. AVIATION PRODUCT LIABLITY INSURANCE The minimum insurance coverage shall be $1,000,000. AUTOMOBILE LIABILITY INSUI~ANCE The minimum insurance coverage shall be $500,000 combined single limit liability for bodily injury including death, and property damage in any one occurence. AIRCP.~tFT LIABLITY INSURANCE The minimum insurance coverage shall be $1,000,000 provided however that if licensee operates aircraft with the capacity of more than four (4) persons, including pilot and/or flight crew, minimum amount of coverage required shall be $2,000,000. If operation of aircraft with a capacity of more than four (4) persons is occaisional, licensee shall furnish proof of insurance prior to each operation. WORKER~8 COMPENSATION INSUP. ANCE Ail Aeronautical Activity Providers will be required to obtain the statutorily required workers compensation insurance, for all of its employees engaged in work under the terms of the lease. a~oa N~IaNI -/ I 1 I I (J ~ 0 .? ~+og: .:.