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HomeMy WebLinkAbout1985-12-17 Council Packet - Work SessionKenai City Council Work Session December 17, 1985 Dust Bowl Golf Course Airport Insurance FAA Antenna Farm Old Town. Study p . r! ri• ti 'Y l: b �. CITY OF KENAI "Olt G�d�al 4 �4�a" MORDALQO KLNAbALASKA M11 TBLEPMONd U - MO i WORK SESSION NOTICE There are two scheduled work sessions for the Council of the City - of Kenai s :. Dec. 119 1985 - 6sOO PM, in the Council Chambers to discuss the revised Comprehensive Plan; joint meeting with P&Z and CCC Architects, Dec. 17, 1985 - 600 PM in the Council Chamber to discuss - a. Airport insurance and other airport matters. 6 is'� 6 �y ir b. Oust bowl, golf course, Burnett land (0',445'- 7:4S; c. FAA antenna farm Sr o0 30 d. Old Town study ( Historic district) 8''. 'S The public to Invited to attend and participate. Janet Whelan City Clerk DATEOs Dec. 59 1965 jw r .a J E CITY OF KENAI %O d 6;ap" 4 4"„ 010 ROALOO KENAI, ALASKA 0001/ TEWHOURSIU-MIS MEMORANDUM FROM: Tim Rogere, Attorney City of Kenai T0: Councilmembere City of Kenai DATES November 14, 1985 RE: ERA Helicopters and Indemnification in General I am attaching the latest exchange of correspondence between ERA Helicopters and Southcentral Air, Inc. regarding the indemnification clause. Also attached is correspondence from the Federal Aviation Administration and our proposed response to that correspondence. Much of our response to ERA's November 119 19850 is contained in the City of Kenai's Comprehensive Annual Financial Report for the year ending June 30, 1905. Please refer to that document which has already been distributed to the Council. Also, the response to C.R. Baldwin's November 8, 1985 letter is solely contained in the City of Kenai's 1985-86 Annual Budget. This document has also been previously distributed to the Council. Correspondence from Arden Page of Burr, Pease and Kurtz regarding my position on the indemnification issue should be attached for your information. Mr. Page was retained to give the City a secondary legal opinion in which to deal with ERA and SCA. Eseentially, my response to ERA and SCA has not changed from the beginning. I still believe that the City can require the Indemnification clause as modified by the proposed amendment that was sent to ERA on November 5, 1985. I believe that at this point, the important thing to do is to wait for the response of the FAA. If, in fact, the FAA comes down on the City's side, it will give us added leverage over ERA and SCA. One additional point is that ERA is refusing to sign individually. I would propose that the City deal with that issue in the same manner as it did in dealing with Fred Meyer and several of the car rental agencies. TR/clf 4M+en1►n�enLn n M I _I C. R. BALDWIN ATTORNEY 0.06011110 MENAI. ALAWA ONtl TCLOW N191,071/gd1O November Be 1985 Hand Dalim= Tim Rogers City of Kenai 210 Fidalgo Street Kenai. AK 99611 Dear Tim: PlaAfia nrnvlAe .ne ...�aL, .,....1 -- -.• . _ - . ..._ .. ....ra—ug va 6taa iuiivwing: 1. All portions of City of Kenai Budget, FY 19 85-1986, dealing with all airport -related accounts. 2. All current insurance policies which insure against risks associated with the operation and maintenance of the municipal airport. 3. All schedules showing the rates charged users of the municipal airport, excluding rates for leases of subdivided lots, but including landing fees, special use permit fees, tie -down fees, and rates charged lessees or permittees of all space at the terminal building. If a rental rate is set forth on a per square foot basis, it would also be helpful to know the number of square feet being leased. Thank you in advance for your assistance. I will pay any charges you normally assess in responding to requests of this nature. Very truly yours, C. R. BALDWIN "•' CRB/hs cc: Vern Lofstedt Jack Birmingham r CITY OF KENAI, ALASKA 210 RdWoo • Kenal, AK GNI I • (007) 2076M TO ' 7 Roy �r1 c._ — ..:... , v. A. Oro 1w _ 1. DATE //.- / Z..jr- SUBJECT �) QMi9o'r sa•/a.�. JCc �j�r 9ti 9/! q.� /0 9 •• / 'Z rZ /A�ys1�• f. '•/IO � 4/ rriv�Nt�, � � 2 � M IrrO�•�� ,Pow i �69�rr� Ti % I ! r Ip y tr! 'FOr f�i t J f7� G �N�ir�i •. 9 Pr 400 4b d4r'q D4«4 w•y.J 6� q 6a.,. �q , } •,, M�MYIOI�WAwMrOw7M,IMb C9` POW All-) TO FIT ORAWINGWARD ENVILOP[.{W40, i e -- CITY OF KENAI %Od Oap" 4 4" 010 FIDAL00 WNAI. ALMU "Oil TBLBPMONS M - 7M November 15, 1985 C.R. Baldwin, Esq. P.O. Box 4210 Kensi, Alaska 99611 Re: City of Kenai Airport Insurance and Indemnification Southoentral Air, Inc. Dear Rick: In response to your letter of November 8, 1985, attached please find the following: 1. City of Kenai 1965-66 General Budget 2. Lloyd's of London Insurance Policy 3. Insurance Company of North America Policy 4. City of Kenai Resolution 65-52 establishing terminal lease rates and fee schedule for fiscal year 1985-86. 5. Airport Regulation 5.120; transient parking fees. 6. Airport Regulation 10,1301 aviation fuel fee. 7. Airport Regulation 13.000 and 13.020; landing fees. 8. November 15, 1985 Memorandum from Dana Gerstlauer regarding square footage rental rates. Sincerely, CITY OF KENAI �- im Rogar Attorney TR/clf Enclosures ces Arden Page Suggested by: Administration CITY OF KENAI RESOLUTION NO. 85-52 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ESTABLISHING TERMINAL LEASE RATES AND A FEE SCHEDULE FOR FISCAL YEAR 1985-66. WHEREAS, annually there is a review of the lease and fee rates for the Kenai Municipal Airport Terminal, and WHEREAS, the following rates and fees have been reviewed and found to be economically sound. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following minimum lease rates/fee schedule beginning July 1, 1985 is adopted: Lease Space - includes all counter - publie service areas, office apace with custodial service, and work arose $1.65/sq. ft./mo. Airline baggage area use fee (Baggage build-up, claim, conveyor belt areas) 15% of space rental Commieeicn-vehicles for hire and related operations 10% of gross Poster space $200/year Telephone with poster $250/year Other fees as negotiated and approved by Council. Spaces that are leased on a bid basis shall be charged based upon successful bid and the above rates will not be applicable. h n N 5.120-7.000 5.1201 All aircraft owners or operators parking aircraft in an area designated by the Airport Manager will be charged a transient parking fee of $2 per day. No aircraft shall be allowed to park in the transient parking area for more then five consecutive days, unless specifically authorized by action of the Airport Manager. There will be no fee for parking an aircraft for a period of six hours or less. (Ord 365, 1056) 5.1301 All Lessees on the airport shall be responsible for keeping all aircraft parked on their leaseholds entirely within the boundaries of the leasehold with no wing, tail, nose, or other portion of the aircraft extending over such boundaries. (Ord 316) 6.000: Aircraft Registration: New aircraft arrivals intended residency at the Kenai Municipal Airport shall register their aircraft in a commercial parking area not more then five days after their arrival at the Airport. 6.0101 Transient aircraft owners or operators utilizing an area designated by the Airport Manager who fail to register their aircraft with the Airport Manager's Office upon arrival shall be charged with improper parking and the aircraft shall be subject to impoundment in accordance with Sections 5.060 and 5.070. Aircraft whose owners or operators fail to pay transient parking fees upon departure from the Airport shall be subject to impound- ment if they use Airport facilities in the future. (Ord 365) 6.020: Aircraft owners who fail to notify the Airport Manager of the removal of their aircraft from the Airport parking areas will be charged as if the aircraft were still there. 6.030: All commercial operators of aircraft operating from the Kenai Municipal Airport shall register each aircraft with the Airport Manager. Such registration may be by mail and must show the aircraft take -off weight, along with the name of the regis- tered owner and his/her correct address. Such notice shall be given before such commercial operations shall commence operation. 7.000: Accidents: Persons involved in aircraft accidents involving persona in -Jury, or property damage in excess of $100 occurring on the Airport shall make a full report thereof to the Airport Manager's office and to the Federal Aviation Agency as soon as soon after the accident as possible. Said report shall Include names and addresses of persons involved and of any witnesses. (City of Kenai Supp. #37 - 7/17/85) A-8 0 is 0 I -.. `�..I.- . _ • I 1 • i I 10.080: Aircraft fueling shall be conducted only from approved type pumps or fueling trucks, and only by those C authorized by the Airport Manager. No person shall fuel aircraft from barrels, drums or cans under any condition or circumstances. However, the Airport Manager may waive this regulation for a dealer or when conditions do no permit fueling at designated areas. 10.0901 There shall be a sufficient number of trained personnel and procedures for safely storing, dispensing and otherwise handling fuel and lubricants on the Airport. (Ord 305) 10.100: Adequate grounding for the aircraft and fueling facility shall be installed and immediate fire protection or i extinguishers will be provided. (Ord 305) 10.110: There shall be adequate marking and labeling on storage tanks and tank trucks, including identification of specific types of fuels and fuel octane designations. (Ord 305) e 10.120: All persons wishing to install aircraft fueling c facilities on the Airport must submit plans and other infor- - mation on the installation as the Airport Manager may require .. in order to provide for the safety of the public. All such installations must conform to the fire prevention code of the City of Kenai. 10.130: The wholesale distributor of all aviation fuel shall pay the City a fee of 2 cents per gallon for all aviation gasoline, 1-1/2 cents per gallon for all jet fuel, and 5 cents per gallon for all aviation oil delivered outside the City for use on the Kenai Municipal Airport, provided that the above fuels and oils are to be used in any type of aircraft. The fee shall be paid on a regular monthly basis by the wholesaler and a list of the bulk gallonage delivered to each individual on forms supplied by the City along with a copy of the invoice for each delivery must be submitted. Exceptions are made to fuels sold to the United States Government agencies dispensing petroleum for their agencies' use. i - i 11.000: Safet,. and San:tatz:.n: No %erson shall keep or Store any fla..miable li4ulaa, rasas, Signal flares or cthQ r similar materials in th "ancars or in an;� building on the Airport: PROVIDED that s::an mi _erials ma-, be kept in aircraft in the ;:rover receptacles installed in h e aircraft i i r! f 11.080-13.020 -•, 11.080: All tenants or lessees on the Airport shall supply and maintain such adequate and readily accessible fire extinguishers as are provided by Fire Underwriters for the particular hazard involved, as may be deemed necessary by the Fire Chief of the City of Kenai. 11.090% No tenant or lessee on the Airport shall store or stock material or equipment in such a manner as to constitute a hazard to persons or property. 12.000: Airport Billing: All billings are•payable at i the Citv Clark s office Within 15 6AV4 Aft -or nroannr�tinn unless otherwise noted thereon. j 12.0101 Delinquent bills will have impoced thereon a penalty of 10% and the balance due shall draw interest at the rate of 85 per annum. 12.02b: The charges to lessees for ground rental at ' the Airport shall be as now, and as may hereafter be estab- lished by the City Council. U, 12.0301 Charges to concessionaires desiring space for - other aviation or public services within an Airport Terminal facility or elsewhere on the Airport will be contingent upon the type of service to be rendered and the space desired, and as may be established thereafter. tip" r 12.0401 Military and government aircraft using the Airport shall be exempt from landing and transient parking ; fees. These exemptions shall not apply to commercial air- craft operations leased to governmental agencies. 13.0001 Landing Pees: There shall be a landing fee of 20 cents per t of usand pounds of weight on aircraft with a certification gross take -off weight of 4,000 pounds or over, payable monthly. ' 13.010: There is no landing fee for aircraft under 4,000 pounds certified gross take -off weight. 13.020: There shall be a use fee of $25 per month per aircraft under 4,000 pounds certified take -off weight for commerical use of the Airport facilities unless the operation has leased land from the airport from which to conduct such operations, and is using the Fueling facilities on the Kenai Airport as set out in the Airport Regulations. M-13 (City of Kenai Supp. #28 - 5/7/84) i c 1 d !, atif irate of ;Ihisitraitrr 1+14crrn %VIIIf MF Qoso ItF MAI. OP 0014 inacrwriters at 'Mci Ds, lonaott IS CCI-M.,- F:Si.^+:F:IT: A.: A !:Vhrlx.; V1 �E I T: k ....'.nAf1:E LAd OF Independent Insurance wholesalers, Inc. MO SW Fir loop At P-O. Box 23781 • Tigord, Oregon 97223 (503)684.1956 a Telex 151rlAO I ru, Ill it., %,I,it IIr1 ulat the uuuersmnett nave procnrerl Insurance as herehoaf ter specified frrnn certain Underwriters at Lloyd's. London, thereinafter called the "l'oderwriters"►, through our Lloyd's brokers in London, England. rursoant to sucn authorization the I. nderwrilers do hereby bind thcroselv'es, each for his own part and not one for another, fur the percentage shown hereunder. In favor of CITY OF KENAI AIWUST IIAIY. Assured. 3 I 1'llph11Vh1 $25, 000. 00 (AVN52) address: 1,250.00 210 FIDALGO AVE. , KENAI, AK. 99611 s s type of coverage: AVIATION EXCESS GENERAL LIABILITY ', Fed,ral Tate 1 0 (EXCLUDING PRODUCTS) r .7't Slate Tax in the amount of THE DIFFERENCE BETWEEN CSL DI, PD. Ce Stamping Fre, s 263.50 1 $1,000,000 A.O.O. AND CSL BI, PD $25,000,000 A.0.0. s CetaBrate Ifereon 47.25rr of the amount and premituu stated herein. TOTAI 613-80. Beginning at 12:01 A.M. on the 1ST day of JULY 1985 epayableonPortion Applicable and ending at 12:01 A.I. on the 1ST day of JULY 1986 st.tndard time at the place of location of risks Insured and in accordance with the terms and conditions of the form(s)attached. FORM T.P. 1(A), AVN 488, AVN 46B, AM 52, AVN 38, ENDORSEMENTS 01 and 12 Itnlod that the waves al Iht Vedt—I'Ve hns vat N es,ndll aair the oak. W our IJord't Ilrnhrn In 1nMon, xnlNnd stall FISH he on AlfIe flaton bme IrlwadW lu Ihnn ne wd LLn d'. Umnrn meod end nln, ti I r Ili. Anw,d III,u1,Plmd M. Im,mmem Ihe, Ilia undot=toed 1. oW — el the UdtltrnNn Muumlrr end nnlMr so mr IV eat liable lot ..Y Iwt .1 II,IM we#..Mado t. ud..w,d h, er, I,ut the t, tasnler, MNmwNt am uMr IhW whwe umee e#e on al. a I mW any tlum anowma She ant. to to Ids• at IwnduNnt• as Naards mount a Whertrnb We Catdnte shall bent ..it ad ell alMmr YI ta,111M un Ili, nanmen ILad 1.,e but, LI 1Ar A,IUIMI .1 anal I,ma hY wring nn11N Or AY aVIIMAe/ W his Gl.arat. 1. the 4ad.r• alw b tannard, rnA nr I. nn.nl tl,r alnro or I., 1 •a .1. u n. .J emm�m�, t,. Umlr.wrnrll ur nr IM uW ...I'd In IAnr bh.11 hr t•. Nmlma l0 11.• A..•II,.1 1•. UW, r r •In,J r„ • .,I..IJ. al Ina Annled'. M,hesr ,h,,.n i..Ine, nIn It11 man lu d...• Wldlen Wtr1 1 nAMI 1- Mnh.e and .n I•„h I:— l Mlerw nan"�h,i{ rrl•n•1 th0 d %1r 11m 1e iM alnd P•/nwn 1M1114 n dtavml. Iuhlr,l tlwn, I,n Mite. W anal m.mMu,n P.Im,um ,I,yu1.IM Mn.n I or IIInP,rm.n than, PIeI,MIIIY Octavo upon) In IM event to taM01.11on „1Mt by IMnlanrr. tMll MI M .....n.d athn m rW. nr P.m nlhaw IM W n.n Ionnrn -1 ,M .nWrmxnrd In,1 , d het-, he Preen. mr,fM .,vn n d A• n. matron, hrnhhhrs. uN W lon,da tlnm,es, urd .a. NMIh„n. tmamuoo, nrhlan .r urolpd Patter nl r n,ar.1 aria tw.....nn.. nr p..hn, .n16.........I r.•tn«I and eend...nt wnw.wJ Mu.n or en•Ia,rd hern.o and uuh nMr eramena..ereemeWl r ,andmon. N m.Y 1. Sind-4 h,—n r add M d In N.e a.IMaven.. \n NenN.1.1,H W IM tndlMni,lr ,Aall MYa pn•.I In 1 WM.of IA dMMA 10 till.• w.,r,d any Pnnll,un nI .nd,nan of He In 'em11I0 m ins h,JWlea ,ill.n unt at /ched MIIIPIMan . a. II ... Pn,.ltp ., ta—us.. IM ,a.uNMMM t unda, Ihrl tlh(.a..k as IF for u.,., n,d,n,. Ih,l m..rm.. dr.,nhM hesa. be. Men farlM uunst wh,/h a Folke/lest will he noted and the#, in the "to of in. Non, "boas No Plmmoa .1IM n Fulurn, shall Pnrad. 1So St Mnr. mull he III— *I any dlNtepant"a na/.a.rr attempt This Certificate shall not be vabd unless signed by Independent Insurance wholesalers, Ina. Datedat TIGARD, OREGON Ws2ND daYof AUGUST. 19RS .■ LLOYD'S EXCESS PUBLIC LIABILITY ANDIOR PROPERTY DAMAGE POLICY (DIRECT INSURANCE) �e ..,I"w NIN11tlsfaitujifo;,:mtage"i n#l"i"40If4 the Assured OSMId in Al khodull herein be$ paid 10 Ili@ lJndtr"IWI Morstrits of Lloyd's who by* hereunto subscribed Shelf Names liberidardlitt, called " the Uodob wtillgi,l She premium stated in fit lobodals ad his fivied to Make IVIII (ofIMt 141Y.1011liou of Premium as may be postarbod hi 91 of Al AUVIOd Ili Om UW&b Cie The goot4miters billier of to Its $misfit end IN fit another b."IfIllbor provided, to pay 66 forlar of sJoves, "going ui bi.i is pay, of by firlot hodsobbrol be solaNdfig it pop. to say forson of fortune at damages b"swf ill 401 Wolf isiv?y. Wasoloot. d.stles im death 1*61vdlis We no lm folvites 11601288 thilitiom PAININOW Polaroid to a$ lhpdllr Iti of 40) Imply to 0 to up/batthoei of ottkoth, looludw; the In at w ibmd (410$dtu refiring ill an loffely palm 11fdall. famsed by a agwoutreact And GM oid It fork bourds is as see lord) 10i fits 4 as Ikkode'd wad or to itho else curegartod by $aid dolifted a of pollepri ots$Als Is the &hod@ 1 #06 allied of 014 "how lnvIdn" $told Illwave IrAt :— vaii sturdo" is of wall"whools Gets No enable of stioll boards 0 us as last% I lick 1"081" on$ limit$ .{lean"hot% for $move# Is inspired In login igrow s (at a I is) of of Llek'dV1444' 411111 ulmoillas Deals Itholiso Save irli at have base sold risible to For INS full smoval of ###argues Comes no IOU 0 Me folue in INS SlMdVl# is Signs art god olutlells Of - plauty $34 US&ISIFIlmS looese Samiih) " ad *ago 0 pontiff the Amiss ovidi, out UWD 1.1 411A UMILS Of 0111 1111111-viell"IP Ili W111.1' "geo-o"i of "A"If 11 "i a! 1i a W 41 map of INS F-0i a- a0leve I—.. IRA INi 66had. imi IN# aftefissipso "Toni Lioullst" " Od of Ille 9111114OW-0 to, 041 faith to film 8 4% J 0. gibi it. 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It ohm a go Macon of 111,640" of roodusto mould of corioulowd 0"flums; mould is she P1.67"Its, of hasty fridlers, tide If" !rglly N@d pot ##%at IN# :wbihop of Ahr Alli lore — (a; plai "rots bids{ olthated of IM-ly lh:dfjr of ptagoottly 03moger willar fill of @Sgolgo por proiliffs sallivi'altutti pi blood, ad, euvialvi to SAY AMPOO Of or 1,14111 hopes lifichr Sol fear or 141'sm upon 6 it bo'llottly witto, of they am will. in"" speorew up," &Vill 20411 Ill,vtp or reffai Daniel$ oi mi Imm. I%$ f1hols" 0-nod. listed, spowpild or AN ad good $fast pli #101611111" 0 logo 010$dM it$$ 1`104 WJ"4V*Ntd to allaii "da's or "'o" 0161, 0 000 Ma Who r1 Non San 0 or So "I ad a. $reins Mir Me "mP'gW, is Sag, I -tri. 0) .1. Shut "do of deat "fit pal arlwhrob, the f6i of am$# V1o" INS fears psi to he liblengled we by say somps, of usholgatime frobill 60 #AiMPAF fflIMfff W ONkMINICI *BPS" A pre"Ile& all"I"oul IN & 91-fill"d a it #Sri #1 fu,ranthefumil oOB6o01"dememsewi fcaeoo, ri o"thwoets@ Iay itat *ooif, @"I d goollowd, DEFINITIONS lflorwo #*"to 0 ME*" tAkb mb"so, juirlas IN period almialutics. Ik wad "Setvnom' Swiss is $#Ideal. somuda I orhooth, isojointled soor aerosol& 11ross IN Iss-wifoull of of 401 oil~ on IS ON Sighodoll, is SMIF blOY w PMM Dm" O�MVMMMATA 141 lim im wwg - rAdmile an to" I shill of imargolad "man Ift mount bill In 0 - an Allorld &file 601"06 Odgl110F4 fall All IPA for r q Us WiRisubw lnumm owtolloo scatter the "Illylas of %be FgwASfV sed waderlitifis ill luage, W ni imalsoll all "paw no COO, m it "thoes out W07 of forovilawl. loold "Can" $full$ 110", bmistood go sun let"& =IN Salinas goololm Ad at Amiss at p4ml earlier# Use for#*"* Owwi OW bred POLICY I WAS. JU gob -Pow fail* &11 fill modentor"d to mile 6 plwj of now ff4am phi wwr#IP4 tub Im 0 as day me belt 'no &016 are 1" 0 ramp V0.1fal10401 HiLil a"* PACE I OF 3 FORM T.P. I (A) 1 i .. CONOITfON1 1. 1hWRfiiriO OLC0L1/, fe d1 •►ail e�►laleim M aping arifild Shish ntf1t hilly "$nnd 011ie Pelting and Vadedylop gum !I Lballu), of Cow "I uarnd by Rot Alwra/ Willing th$ "fill of fallen of s• U•dierridq. r A1rORTI011MLN1 Or C 1t Cuts samd of H MMtf iM to Ir111 01 A) to {nor sum ft lly 01 a Ysr;t M 1. 0011 FORM ToP.I(A) wous It UN lit/r and V/On1YMl goingInWram. MimiN n►aaOlinueMond do f011N11 of des Vailr111111� no lights Manna ad Me prnr of 11aIN ormint of trig kr eH she'd tun on rdhllry ad uelfighlp we 1u Cam still be goolow of of underwriters. ale $1wunl for goNele m/ got/ ail St or slaims may M ad o6um11$ rind the Nn1rf11M. d nH t00etat to tlu .,.,•M,nn primary ad Yddda per—.r-.. . in .0 wWAW rove tall IMtrprpont" oW Wman In lost Liar ed,eludkNs toM •Me Inolovol eltnlr he AYWad dens set is appeal a Iodates Is will of the fti nary a1ned t)ednldol Dow Lkdtk) the Vsdtndtat dell all •peg of their are "n III/ npeu and those be (table tot the nntlo own tetD grid m lual but Is ea aides WU /s law lulmy of the vndltufisrs tune mail l m lo) of 116611ny M peold$d tat Jklo" of Role spew, RCOYSAIN. All 1~0 n "rums mend w rmlfw alsluont to !per unitmoa won f111 soffit/ w otfoltad per r evil Movement and We strtWry /dlalUell 0411 Qe t1 adt mouse do Amortd I g.tps mat es"s a mis ►oho gal ba MStDwd to as" the IOU" wader tot paltry Noon knight$ told big Mtn Ing1r rtmgnN. JA11LITY. wppl�lry o kn1 tokr 11k Palo 0011$n tough uolw ad Mao do rMnarp C1 uNtdrml Wap ubAry to W I ry NI Vnod)led two Li (1) w Wipe MI Dndl W AgtarN eel b I W17a1t m Isb tuo4 ate ergs►// oil ueanlrNL saw L all( $A inn aril gall me INnn/ 01 F 811pn1L men# n IW luNa a In IM Stand eil agent o me hrrlry old YIdeellgul &law Wltnp ��q ot&t o fa IN1V0�:i Oi i ^i a a w d1/� aii� (M W "dab" of swiip(@ low M= Wn/ Y (ill eM/ltmt dgAY"npfttof Warman/.tins WAdlryYlr Mg hM Is w d o aldull mr Up r IY�le t la tM "Me gorrsodr, rfi/t ad $ails"a fount Ntyl" 1• InonUN1a old ads", of aMgotl slrnri"1 (if oR 1. the $Davis and lwmiu of liability "me Wae1 1. 1 . Nuy lawns too► N 94 NONO61M=l N in onvtrg � tot 0Ot/i1e11 fiill 10i jNi Mnoualn ui $atliw'1 Ir"tt / r W potrylln d did Printer fr$rs/ pew/ as am q of Ito Cloy, an W pro/us linen AVON AND A0111/TIM{NT. 1M ppro/lu/ (a We Inserters dill he "engaged so as bilk got bald age or Sao INVedetrrhts nine to rnwb ark adddiefll at eftvrs yrtmlap to it bnt/n due. 41 Jlbly mY ba "OullN invest "y hill# as go good" N of Anhui a toy be sunAd by or N Waif 10 as Is writing M logo.n;uiy dq AornN, Of Lfa4fia"10 shot MfOA Rot agreed pr7lr/ he►ten (ego lea kndN mat tin pal" be t pinite of Ohl MM/rdur Irwr/t isdnN"tnndrn rthe al:iow , "(Mit de att ynra. Amloud ltr tea N mmuni "all " legal$ fill/amid premium Mrse got eu knifed an role rob We so builtbuiltold! hghtiltA, mnn 1i as Paul, Newt d "rgso" of as Yadrgomon IUU In $nun w" ,,of1 $! straight w t" r of "No pnmitlIL to W Ynag at ours s Prohibited w /pett aped by Nor bill q$eoflln/ ofIaagobnloe bawl, NoMte$rd 00 f1 be #veal It ue MW*g/ PO N N Umiuwn pn/fim by Role k•. CfAivd, Tb AHYM open boar's/p of per tnan"n likdr Ste of, rs"a sill bargain 1W pea rs to me ►mall) of dide•mld to Roo rwpose St W kMdu;t, IMI, it seA Nnd that Stake u;gm Y fkeeriel ud new s b fall ofkaNgkab a orate $snot w No Vold M0 u $we kmner SW be adeju . PAGE 2 OF 3 v i 0 SCHEDULE 1. POLICY NO: 0050 2. ASSURED: CITY OF KENAI _ ! 3. i ADDRESS OF ASSURED: 210 FIDALGO AVENUE, KENAI, AK. 99611 4. HAZARDS COVEREDs EXCESS BODILY INJURY, PROPERTY DAMAGE IN RESPECT OF OPERATIONS AT THE KENAI MUNICIPAL AIRPORT. EXCLUDES A.T.C. AND - - cnou D /+A111TANT nn 71TT7nT11TT ..••� ••nnTn�•+n v.•v v••r vv••r..vr V• .a�..•..r.� � f.N./ YY.IL �rYYY• S. PERIOD OF INSURANCES FROM 1ST, JULY 1985 TO 1ST JULY 1986 BOTH DAYS AT 12s01 AM STANDARD TIME AT THE ABOVE ADDRESS. 6. PREMIUMS $25,000 PLUS $1,250 FOR EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT LIABILITIES) (AVN52) ATTACHED. 7. PRIMARY INSURERS INSURANCE COMPANY OF NORTH AMERICA POLICY NO. API 8 87 91 .. PRIMARY LIMIT OF LIABILITYs CSL BI, PD., $1,000,000 ANY ONE OCCURRENCE. 8. LIMIT OF LIABILITY: THIS POLICY IS TO PAY THE DIFFERENCE BETWEEN CSL 81, PD, $1,000,000 ANY ONE OCCURRENCE AND TOTAL LIMIT OFs ` j CSL BI, PD, $25,000,000 ANY ONE OCCURRENCE. i 9. NOTIFICATION OF MENDES & MOUNT .; CLAIMS TO: 3 PARK AVE. NEW YORK, NEW YORK r PAGE 3 OF 3 r. ti 9 11 EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT LIABILITIES) 1. IN CONSIDERATION OF AN ADDITIONAL PREMIUM OF __;i, 250.00 SUBJECT TO NO REVIEW• IT IS HEREBY UNDERSTOOD AND AGREED THAT WITH EFFECT FROM i$T. .7ULY 1985 PARAGRAPHS A,C,o,E,PCC OF THE WAR, Hi -JACKING AND OTHER PERILS EXCLUSION CLAUSE FORMING PART OF THIS POLICY, ARE DELETED. 2. NEVERTHELESS, THE COVERAGE PROVIDED BY THIS ENDORSEMENT SHAIA TERMINATE AUTOMATICALLY (a) UPON THE OUTBREAK OF WAR (WHETHER THERE BE A DECLARATION OF WAR OR NOT) BETWEEN ANY OF THE FOLLOWING STATES, NMELY, THE UNITED KINGDOM, UNITED STATES OF AMERICA, FRANCE, THE UNION OF SOVIET SOCIALIST REPUBLICS THE PEOPLES REPUBLIC OF CHINA PROVIDED THAT IF THE AIRCRAFT IS IN THE AIR WHEN SUCH OUTBREAK OF WAR OCCURS, THEN THE COVERAGE PROVIDED BY THIS ENDORSEMENT (SUBJECT TO ITS TERMS AND CONDITIONS AND PROVIDED NOT OTHERWISE CANCELLED, TERMINATED OR SUSPENDED) WILL BE CONTINUED IN RESPECT OF SUCH AIRCRAFT UNTIL THE SAID AIRCRAFT HAS COMPLETED ITS FIRST LANDING THEREAFTER. (b) UPON THE HOSTILE DETONATION OF ANY WEAPON OF WAR EMPLOYING ATOMIC OR NUCLEAR FISSION AND OR FUSION OR OTHER LIKE REACTION OR RADIOACTIVE FORCE OR MATTER WHERESOEVER OR WHENSOEVER SUCH DETONATION MAY OCCUR AND WHETHER OR NOT THE INSURED AIRCRAFT MAY BE INVOLVED. 3. NOTWITHSTANDING, IN THE EVENT THE INSURED AIRCRAFT IS REQUISITIONED FOR EITHER TITLE OR USE THE COVERAGE PROVIDED BY THIS ENDORSEMENT WILL TERMINATE IN RESPECT OF SUCH AIRCRAFT. 4. THE COVERAGE PROVIDED BY THIS ENDORSEMENT MAY BE CANCELLED BY EITHER THE UNDERWRITERS OR THE INSURED GIVING NOTICE EFFECTIVE ON THE EXPIRY OF SEVEN DAYS FROM MIDNIGHT G.M.T. ON THE DAY ON WHICH NOTICE IS ISSUED. (268.71) AVN 62 • ATTACHED TO AND FORMING A PART OF 'CERTIFICATE No. o050 f MOTION RAal0ACM C0NTANINATION ExC.Uf110N CAtf)E (GENERAL) (Aopmord by 04to Aplailon fln/•rodifft A000aiWon) f31 T1111 POW dom Cot eoga► (') Iw6aor dw avocloppfolultiof os or f yap to saw Property wbatoonar or mly lag or gapeasg omi (b) Bay Iota Iubwty of wbatsonor BOWL dire air to fto award �r aoatdbutd to by a ad t b m loysbp rodiedoeg a aoa a oa y r as y tons any wwoo wbafoogver. �ie�fntaotl�wwlof= wlvob but�or t�• r�o f• Yny,daaoaafb�tptd Aes mfrot�loal�fat ►doog a eaota6aeon� A'agyaapi�in, abW (iYo'iet to"tb•ra'rogmlgboal'oe thlg po"itayj e• eo'avii4 provl th p) It eball be a aa�ditloa p •oed�at tba Uabfpw of eb• Vadgeweltela that the arrigt• pI ant �•ydito�g•a •�•ma�tla 111 • eU W rKp•au Coma wins tD• Current regul•tiong aYtil /oted ardelm�era•►rEii! Mr aagport /lfgoped nladot to the earflap of (b) •for , damgt•e upon r IsmchIl �ty aball bag oCCurr 1 or adgeo OYf}at tb• eo f10 o� dllg pflay, tn0 ail ru . y AioYr4 aqr t the oderwrifeg Of 4810 OfOff 9116nruR ova• 6191011 ri ► to • dalloofI M m • wl� dwelt Mrs after (e1 b fibay�aw 'i��'�rab�''i �o'f�• ii'sgeidtid't i°ma+btoum�•em iesit ofinet i°it oat � g �otlow�O't goat• t— tEel tge Mwmum o•emwible lagd ado • •11,1010141d •eaonseme n•�� ga�over nows lodfGlop Itrootf the Nit aemdtat la HioO aad �tlety i1:4 toeroaurlm pot ems Noott Mo diat 104 A11 other nbetaeam veroauriss per cmp 4� wOe�tm tl I°g%'vm aari� aM of aoaaitigtlpa eaeadla as Coy elaeo by alp node• Ail doo " ISSUED TO: CITY OF KENAI EFFECTIVE: 16T, JULY 1985 POLICY NO: 0050 J k NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE 1. This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:— (e) noise 4phenomenao hetheraudible o Uh human of of not►, vibration. Ionic boom and any (b) pollution and contamination of any Mind whatsoever, (a) electrical and sleetromegnnle interfuenee, (it) interference with the era of ppropertlt unless caused by or resulting In a Crash Ilre exp orlon or collision or a recorded in•Ilight emerpney causing abnormal aircraft operation. 2. With respect to any provision In the Polley concerning any duty of Underwriters to Mvntllate OF defend claims, such provision shall not apply and Zoderwriiers shall not be required to defend (a) claims excluded by Paragraph I IN y (b) �uepiph I (referred to beby loow a" Combine Chins i' eel with Say Claims excluded by 1. In respect of any Combined Claims, Underwriters shell tsublect to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy., 0) damages awarded against the Insured and III% defence feet and expenses incurred by the Insured. /. Nothing herein shell override any radioactive contamination or other exclusion Clause attached to or forming part of this Policy. AVN. 469 412.1.721) WAR, M14ACKING AND OTHER 4AVIAT101111� E. 211CLUSION CLAUSE This Policy does not cover claims caused by fat War, invasion. eels of foreign enemies, hostilities (whether war be declared Usurped power or attteemllptsof usurpaation Infiltration. f prowwer, n, myartial law, military or Ibl fission iedior fusion or other like rtution or radioactive fit are# Of allernle or �laar it) Strikes. riots. civil Commoilo^s or labour disturbances. Idl f r political m terrorist Purposes and whether ties losoaf a ds age►tr%u linj th"Iffotn is accidental or intentional. I01 Any malicious act or an of abolop. Ill tquiiiiton lot Nil nor ores tbiyy or under the OrrderOf any ^Govermm^� hasher civil military of de (octal of public of 10001 authority. Is) Hi -licking; of and unlawful selture or wrongful antin of control of the Aircraft by anyeppwntritontortptions on board She Aircraft "Igor* without the Conant of Ike Insured. Furthermore this Polley don not cover claims arising whilst the Aircraft Is outside the control of the Insured by reason of any of She above perils. The Airuall shell be deemed to have been restored to the Control of the Insured on the safe "'urn of the Aircraft o ey. and entlnty Suitable for the oPritbn offIike Aircthe raft Iwch care follimits urn sIbis ell require that the Aircraft be parked with engine shut down and under no duress►. 26,111.11 AM. (111 ISSUED TO: CITY OF KENAI POLICY NO: 0050 EFFECTIVE: JsT, JULy 1985 r� ti .. i THIRTY DAY CANCELLATION CLAUSE IT IS HEREBY AGREED THE INSURED SHALL BE ALLOWED A THIRTY - DAY PRIOR WRITTEN NOTICE IN THE EVENT THIS COVERAGE IS TO j BE CANCELLED BY THE COMPANY. i ALL ATI4PR PMNHITInNC OCAA a tIkt �I►"^u A.l.r.•.. o o ENDORSEMENT #1 ISSUED TO: CITY OF KENAI EFFECTIVE: i$T, JOLY i98S POLICY NO: OOSO v .; P I 1 r • 1} k , 1 !; INSURED WITHs 15.00% Phoenix Insurance Company Limited 48.00% Guardian Royal Exchange Ins. Group 26.00% The Norwich Union Fire Insurance Society Limited 26.00% 10.00% Aviation and General Ins. Co. plc 50.00% Prudential Assurance Co. pia 32.50% Pearl Insurance Co. pic 17.50% 3.50% Commercial Union Assurance Company pia Aviation 2.50% Sphere Drake Insurance PLC (Aviation "S" A/C) 2.50% Sphere Drake Insurance PLC (Aviation "D" A/C) 5.00% British Aviation Ins. Company Limited 3.00% Yorkshire insurance Co., Ltd 1.50% Assicurazioni Generali S.p.A. (SUBJECT TAX) 0.75% Hansa Marine Insurance Company (U.K.) ' Limited 50.00% Vesta Marine Insurance Company (U.K.) limited 50.00% 4.00% 70.00% English and American Insurance Co. 20.00% Nippon (U.K.) Insurance Co. 10.00% Switzerland General Ins. Co. (Ldn) 2.50+6 British Law Insurance Company pic no. 2A/c 0.50% Lombard Continental Ins. Co. PLC no. 2 Avn A/C 0 2.00% Minster Insurance Co. pic $2.75 % ISSUED Tot CITY OF KENAI POLICY NOs 0050 -� EFFECTIVEs 1ST, JULY 1985 '. ENDORSEMENT NO. 2 ATTACH® TO AND FORMING A PART of INDEPENDw INSURANCE WHOr Eamma, INC. CERTIFICATE NDs 0050 i, ALL OMM T=1S AND CDNDITIONS REMAIN UNOMED. M c, Y ti- , _. ._.___.._.._.._.� J(iT.. lhll rr111fl. 11P d.w 1111.1 .. 1.I "I., 1.- 1•. r14110, r a110-, •1.1„ II, I. M1. 1". .I, 1...la ..... I, .1 Ir I. Ir.,. I..., I, r1 1a.I. lli..rl r,l la.l,.. " Il,r II,1lf4lml..if...l1 r.•.wrsrf 1 rah tin,,. ,I 1. 1. t, 1•.. I. 1 I.. „ „ I. ,., 1.,,, , ., .1 r'.I \ I I,1111 I 1 . .n ....II I., ,.I n.l a I.IP Ian•. all. II♦ , , 11.•1"I'll,.r'n r ' ,1.,, i ' f . ! , .' , ..I,•�,. I.tr . ,1,1.,11„1„I.,.r, a., 1•. ..I .I f1a.IM .11 r•n,r II,tl11 :1. ;1 silt Dull . nil• r11 L, 1n,• In,dl.onr Ill 16., , rn.h, al• � , ,., .I I ,.1 I 1 UI \I. 1,.•,,. s„ all b•» nI daunn• I ass. d la I..,. I, 4 n A• n,m o,l, h u IAdnt..,.'1 at Pall Illtr+a $..a an IIl.ull'1' oil "'A. -I fib„ .1'Ill'.1.,1,- 11.I• w,.l,1, h. ,r ar l I SI 11 It I IILL1 S4' h1 Ihr .all Ill tln• JAnur do not spell and tLnnld Ire Aurrtardnl hatA list NUCLEAR I?\I:111:1' 1.1\IIII.IT1' EXCIA'SION CINIII 011SE\IP,NT I Ilrngd hone 1 It is Agreed that the cvrt1A4 ale dart not apply. 1. Vndrr any Lublbty (:Ilceruge. to unurv, it, kuess, dnraor. dt•ado or drltrtlrhun (a) with rrtrt to whit h an Inured tinder the rrndtr ate n ahn an mutual larder a ouctraf Purrpv lubthly certificate nu nil by Nuclear Lnrly+ I IJbdIH luwran.r Mro tatum, \lutnal Au,uu, F.ul rut I r.ILduv 1 ndrnt nlrr, ,n \n, h.It Inmuair A,uo lauun of (.Anada, or would be an IIIti1RA tludl f Ally ssn h tMIl61-ate Intl Im it, Irrunuallon upon rthan,luln of Its hmst of baltldv, or (b) rrnllung from the harardout lnupertw• of na(Irar 1110ferml .oat wllb nlJwrl *hob (1) any prrlon (ir mganrralmn Is requilyd to malut.un hn4un.d PndM11w1 ptnulaw In the Aron Harp% All al Io,41 ,r .,fly 1.14 nm.•ad4lnry Ihercul, or 121 file inward is. lit had this cenda Ate alit (wpm a+urd uonld 1 r. I tihtlyd lit wdI mnl/v Item Ili,- 1 Ilford b140-t "I AIIRn1 A. or anv 4lteluv nlerml, under flay allfn•mehl enlerd till" by Ihr Unit, d staler Ill Alnrto a. or 411V al:rart lhrrrnl, •allh ally III•r"m or mgAul/Allan 11. Vndrr any SIe,llcd I1avml•Ill+ CiwMagr, Ili un,hr uln ,npplrnxubtiv I'ntuu•nf1 pr."olon fl•I4111111 to anmeduh, sllwlaa) m "uarld relief. fn r.Iantrt Inrunrd w"h r,..rr,t I., 1.•.11.1, I•.,u, ,.I,n-. ,b••,.. .L m. '-d ...... 1 ... a I....d „ ..... .. ... .. ..1 end Anung out of the alwraaon Ill A titidl .rr 14, 1111Y by nay INIMIII Ill ollla111/"Hull 111. Vndrr any Luhdlly, (9Werap, lit Injury. sslknrw. dltrrou•. 411,4111 lit drum. lion retailing flnm the hatardous properties of nurlvar material, d (a) the nuclear material (1) a Al Ally nudrar fat this Owned by, or operated by or tin behalf of, tit mturrd or 121 ha been discharged or dopertrd thrrdrom; (b) the nuclear material is cantonal in spent furl or *site al any time llourstt"1, haodlMl, uted, promoted, stored, transported ar disposed of by of an lothall ul an uuu:M, or (a) the lmory, llrknrn, divas, death o1 deunatwo nnsrt our of d.r lunlnhulg by An umurd of /Pined. malPnaf+, Part..,,, tgmPifw m connemino with the planning, mnstrurnon, mama nun.r. operation or we of ally out fear far silly. hill d v„h fat lhty Inrmlyd wllhm the Vmfrd States nl Amenra, its trmlon s of pot-tootu or Catiadis, this twIloulln Ic) applies only to uoury, to or det/rm-hins OF PROPERTY at such nudear facility, IV. As used lotlgt ertdor meats "h rardous propemn" Include radioactive• ionic or erplouvr pmprrties. "nuclear malarial" Paeans wur(v material, special ranirar malen4l or I.slti•eluct material, "nlurde mpttdal", "!Prod puelep material', slid ' byproduct material' have tnr mvamng given them In the Allow EnrrgY Act of I951 ".pml bill" msou any lad element or furl mmtnnent. •ulld or Wold. %huh 1-At 1w11, used -IF eq(1tld In fadutmn In 4 nuclear frartori "wall' means 40Y Waite material (1 I mnullnns hyprndolt mso-n4l and I "t rrtlstnn✓. Irnm flip nperatvos by any pertun rar org4rAnUon of any nuclear facdlry induded widue We defuuhuu Ill alodfar bt/bsy vndrr paragraph UI or (Ill thrrmf, "molest fudI1Y" meaty (a) say nuclear reactor. (b) say equipment or dpvla designed or itself for (I ) separating the Isatallrt of uranium or plulamum. (2) processing or uhbnng spelt fuel, or IJf handbag, Proevumg or po(Afgmg "note, (a) any equipment or device uord Idr file pr I"'. labrlrAlong. rar allovine, Ill a %perral nudrar materiel d at any time the Ingl amount of ouch material m the custody o1 tl:r mwrLl ar fhe Prruuset "1wrP use b PqulPin"d rar Irsl, a Is lit, VIA I omul .0 rar cantons more than 25 grams of plutamllm or uranium ZM or any combination tbertnl, of inn a than 250 Rrams Ill urAnunn 21S, (d) any structure. bosun. etravahon, premises or place Prepared or uvd for dw ttmsvp or disposal of %mile Bull mcludrs the ate on which any tot she foregoing to located, Sri a wranons moll"frd oar 1... 1, ate awl ad irremwuseh ,t a -I Ir.f opnquono. "motion reactai' mr4m u1ny apparatus �rugeell or word litsuston audvar burn inA wlt•tltppoctmg I Lam rr4.lion or In tontflu a cnucal am" at atatowbl0 material With respect to injury to or destruction of property, the word "mlurti' or "deuruellon" Includes all forts of r4djomchve contamlashou of property. N(Y C71 NO FLAT CANCELLATIONS ON SURPLUS LINE• BUSINESS SERVICP OF SUIT CLAUSE (U.S.A.) /"lase "I 1'Mmmrrr harm 1" 1prn I- Im.mM II.-ill1n t.r A,,- Mu.,Mn, l/nAr1*nnn boron If IM rrq.nn M 1M blmrd t A ,..m/wn.1 ,..nnn,,.r.n .a..1. 11.. 1 r..I.d v„n. II.I - •n"flr +,•h .0 I..............w 1 to I•.I n , ..e �,n.d,.o•,n nJ N p 1a.n1 11.1• , 4 ri11.1 .I jr, . y I.n.... 1, Ir.•I Ir+ A ^pin, l.x.lr,.lr.r.. I IhI/,.Ili ,".1 .laalvle/ Ile.nl Inf "M or in" II br hit 1n 1 dr. ,,,nM1 •A I•.1Il I •n,x nI�A a.1r AI'p I 1 ..n . IIN nrM M .,, Al.le.1 1 d,le owl .n 1,•ry4 MI, ,.1 •A V,a I11 ran rebut 41 bn•Irlrl.rrll In 1ne n.,h I.I.I IM."I ..1"M .M Ieg1.«I 1.1 IM all -id ,nI 1I• PIN 1atvltd 1. r ~ell , fha IMP .,It ow., I (IMII1 IVIwtIY,.1 ull,n t,.4r1%al1.l MM1all .n I/N 11/nf I"In 1Ili/11 I,r n staff, fetnlnn or dwm ,A IN blamed Nuts rh"h n.1yw Plmumns fhMNM. LnMnmm Mr«w Mr.hr AN.rn11r Inf WIwr1MM• M Mhr1 IAh•I11p«,1•r.l nv 1hx pllpnr m IM bit ."If, rn Mr W,1 nv11 rar Iw 1r1./x1 f0 1.MI, I, Ill. Ln.1 In f a./vl ulIA1NI vP•n A Illy m. nil VI r1«rwh/re mn.l•,IrJ I.r nI IM Llh.11 1,1 Ihr IM1IMIJ 1•n NmIuaA1 , tar Iaer1111- h.-Fort fnl.na wt M IIYI h«Ihr d. s A - In. rlysl•n1.I.�4 It IM P/IMw p1 nwr,,IN Ir1d o111.n Ir,IrIld I,r M"I e••h / rN1 w t ./ ti 11'11.. 1" ti A 1 L,. A..nr. d uIt , knLwl.+tu..11 ,n), 1.un n... iit:il 111 rar n,. 11. n I rl.ln h. n airs: i aril f. rrwntl•rs through Ihr andrrojened at the Ill arrN olblr tiullvn d Ili do- Addn•w del" n nu Iola (.rnlh. All' AEROPORT POLICY 0 INN" r INSURANCE COMPANY OF NORTH AMERICA PHILADELPHIA, PENNSYLVANIA DECLARATIONS API + CITY 08 KENAI Aganaal 210 PIDALGO AVE., KENAI, ALASKA 99611 2. FMky PON: From DULY 1, 1985 To JULY 1, 1986 12:01 A.M. Standard Time 9thls eddreae. The Insurance afforded la Gnty whh respect to ouch and so many of the following Cover pea no are Indicated by opocdic promlum charge or Chargeo. The limit of the COmpany'e ileb1111y agetnsl OaCh Such Coverage Sna11 be as stated herein, subject to all of the terms of this policy having reference thereto. t COVERAGES ti LIMIT OF LIABILITY ADVANCE PREMIUM A 800iLY INJURY LIABILITY ' EACH OCCURRENCE f AGGREGATE PRODUCTS $ $ B PROPERTY DAMAGE LIABILITY EACH OCCURRENCE $ I AGGREGATE PRODUCTS $ $ C SINGLE LIMIT BODILY INJURY AND PROPERTY DAMAGE LIABILITY l 1 EACH OCCURRENCE $ 1.000,000. AGGREGATEPRODUCTS IS NOT APPLICABLE $ 5,674.00 D HANGARKEEPERS LIABILITY t EACH AIRCRAFT IS EACH OCCUARENCE $ $ } u DATE 7107AL ADVANCE IPFiEM1UM i 5 9 674 @ 00 LOCATION OF AIRPORT PREMISES r KENAI MUNICIPAL AIRPORT G KENAI, ALASKA o i �.tP/djb 6/25/85.�..—.��-- �COUNTERSIGNEO. AT IBy 1 dENT1 "28 PTO. IN us A. PAGE I .r i u DATE 7107AL ADVANCE IPFiEM1UM i 5 9 674 @ 00 LOCATION OF AIRPORT PREMISES r KENAI MUNICIPAL AIRPORT G KENAI, ALASKA o i �.tP/djb 6/25/85.�..—.��-- �COUNTERSIGNEO. AT IBy 1 dENT1 "28 PTO. IN us A. PAGE I .r i ti s f U Noll I �■�� SUPPLEMENTAL tTRCLANATIV� NAME OF INSURED: CITY OF KENAI POLICY NO, API 9 00 69 I COVERAGES A AND 8 OR C — PREMISES AND PRODUCTS DESCRIPTION OF INSURED PREMISES INR1111In'stoo I►of!,1 IN sloc"Y111 most 5 OWNER PARTOCCUP41) -_ _SY INS Rio ENTIRE PREMIUM KENAI MUNICIPAL AIRPORT KENAI, ALASKA $5,674.00 iUTAL ► j$ 5JUA.QP PREMIUM TOTAL ► J PRODUCTS HAZARDS PRODUCTS NAZARD COVERAGE HAZARDS HAVING a/ECIFIC It AFFORDED ONLY FOR RATSS AND/OR PREMIUMS sHOWN. THL FOLLOWING �, I NOT COVERED " R q IR no q P ADVANCE PREMIUM - ' Sale of Gasoline, Oil NON AIRLINE 0 NOT APPLICABLE NOT APPLICABLE and Petroleum Products AIRLINE 0 NOT COVERED NOT APPLICABLE NOT APPLICABLE NOT COVERED , Sale of New Aircraft FIXED WINO ► NOT APPLICABLE NOT APPLICABLE ROTARY WING 0, NOT COVERED NOT COVERED NOT APPLICABLE NOT APPLICABLE ' Safe of Used Aircraft FIXED WING 10 NOT APPLICABLE NOT APPLICABLE ROTARY WING 0 NOT COVERED NOT APPLICABLE NOT APPLICABLE Sole of Parts and FIXED WINO 0 NOT COVERED NOT APPLICABLE NOT APPLICABLE Accessories ROTARY WINO NOT COVERED NOT APPLICABLE NOT APPLICABLE Aircraft Servicing and FIXED WINO P NOT COVERED NOT APPLICABLE NOT APPLICABLE - Repai► ROTARY WING 0 NOT COVERED NOT APPLICABLE NOT APPLICABLE Sale of Food (Restaurant) NOT COVERED NOT APPLICABLE NOT APPLICABLE Products Hazard MINIMUM PREMIUM JOT APPLICABLE TOTAL ► RIOT Qf&jpABLE ;i COVERAGE 0 — HANGARKEEPERB LIABILITY -1 1 N BUILDING NO bntludmq 300II. r01mm to wv Eudd or Da r drftnbrd). 1 AIRCRAFT PER LOCATION OCCURRENCE PER LOCATION PREMIUM NOT COVERED NOT APPLICABLE NOT APPLICABLE JOT APPLICABLE DEDUCTIBLE EACH OCCURRENCE $ TOTAL ► JANOT &??,kLgABLE 0 �. 11 , t! - 1 --- - - ---- - III INK INSURANCE COMPANY OF NORTH AMERICA, PHILADELPHIA, PENNSYLVANIA A Stock Insurance Company Herein Called The Company Agrees with the Insured, named In the Declarations made a part hereof, in reliance upon the statements In the Declarations and subject to the limits of fiabllity, exclusions, conditions and other terms of this policy to afford those of the following coveragos as specified In the Declarations, INSURING AGREEMENTS ¢npM11014I— fill l rib.'." I kbill .. To ay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, Including damages for care and loss of services, because of bodily inlury, sickness, disease and. If arising out of the foregoing, mental anguish, InCffudlr death at any time resulting therefrom, sustained by any person caused by an occurrence during the policy 0erlod and arising out of the ownership, mainenance or use of the Insured Premisoo by the Named Insured, and related aviation operations, and Incidental contracts, principally pertaining thereto, Coverage "loporly Damage usblltty To ay on behalf of the Insured all sums which the Ins Obligated to pay as damages because of physical inj tangible properly, Including the loss use thereof therefrom, or loss of ties of tangible property which Insured or destroyed caused by an occurrence durin or sing out of the ownership, maintenance or use of the Named Insured. and related aviation operations, principally pertalnlnp thereto. Coverage "flight Will Bodily injury and Property Damage l aabllity To Pay on behalf of the Insured all sums which the Insured shall become legally obi gated to pay as damages: pay caused by an occurrence d ownership, maintenance or ured shall become legally Insured, and related aviation ury to or destruction of pertaining thereto. at any time resulting has not been physically g the policy period and Coverage D—Mangerkospers the Insured Premises by To pay on behalf of the Insure and Incidental contracts, obligated to ay because of %.I i 1 ow-V uullloupo iul 0010 OIIY IYuu YI 0ulylOuO, uQuawall VI uvulir iiljili , slcknoss, disease and, It arising out of the foregoing, mental anguielt, Including death at any time resulting therefrom, sustained by any per• eon; and (2) because of physical Injury to or destruction of tangible properly, Including the loos of use thereof at any time resulting therefrom, or lose of use of tangible property which has not been physically Injured or destroyed, uring the policy period and arising out of the use of the Insured Premises by the Named operations, and Incidental contracts, principally LIab1111y d all Bums which the Insured shall become legally lose or damage, Including the toes of use thereof, to aircraft, and parts of those aircraft temporarily detached and not replaced, which are the property of others and In the care, custody, or control of the Named Insured as balled for storage, repair, servicing, or safekeeping (as evidenced by the records of the Named Insured) but only while the el raft e not In Right and Is In or on the premises described, The Conn any shall have the right and duty to defend any suit against the Insured seeking damages on account of bodily Injury or property damage, even if any Of the allegations of the Bull are groundless, false or fraudulent, and may make such Investigation and settlement of any claim or suit as it deems expedient, but the Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of the Company's liability has been exhausted by payment of judgment or settlements. DEFINITIONS IneBred The unqualified word "Insured" wherever used in the policy Includes not only Me Named Insured but also Includes any executive officer, director, stockholder. employee or agent thereof while acting within the scope of his duties as such and If the Named Insured Is a partnership the unqualified word "Insured" also includes any, partner therein bui only as respects his liability as such. The Insurance provided herein applies separately to each Insured against whom claim Is made or suit Is brought, but the Inclusion herein of more than one Insured shall not operate to Increase the limit of the Company's liability. Ceournnes The word 'occurrence" wherever used In the policy means an accident, including injurious exposure to conditions which result, during the policy period, in bodily injury or property damage, neither expected nor Intended from the standpoint of the Insured. For the purposes of determining the limit of the Company's liability, all bodily injury and property damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. In Nellon--Not In Mellon The aircraft shall be deemed "in motion" when the aircraft Is moving under Its own power, or momentum therefrom. The aircraft shall be deemed "not in motion" under all other circumstances. � � 1 I %N•1849 Pid, In U.S,A, i i i { i In F11ght—Not In Flight The aircraft shall be deemed "in flight" during the period of time commencing with the actual take off run and continuing thereafter until It has completed Its landing run. The aircraft shall be deemed "not in flight" under all other circumstances, Aircraft The word "aircraft" wherever used In the policy means the aircraft described herein and shall Include the engines, propellers, tools and repair equipment therein which are standard for the make and type of the aircraft, and operating and navigation instruments and radio equipment usually attached to the aircraft, Including parts temporarily detached and not replaced by other similar parts. Federal Aviation Administration The form "federal Aviation Administration" wherever used in the policy means the duly constituted authority of the United States of America having jurisdiction over civil aviation, or its duly constituted equivalent in any other country, Standard Aiwworthinees Certhleste The term "Standard Airworthiness Certificate" wherever used in the polic, shall have the meaning given it in the United States Federal Aviation Regulations and shall also include "Normal Category" as defined by the Canadian Ministry of Transport. Page 3 4 , E ' 4 m DEFINITIONS (Continued] Ineured Premless The term "Insured promises" wherever used in the policy moans (1) the premises described In the 8upplomontal Declarations, (21 promises which ilia Named Insured acquires through ownership or control and reports to the Company within thirty (30) days after acquisition his Intention to insure under this policy, and (3) Incidental aptomises not owned by or leased to the insured, at which the Insured engages In temporary aviation activity. one Beoelple The term "gross receipts" wherever used In the policy moans the gross amount of mono YY Charged by the Insured for all goods and products sold or distributed, and for all such operations by the Insured during the policy period which are rated on a receipts Basle, and Includes taxes other than taxes which the Insured collects as a separate Item and remits directly to a governmental • InCldsnlet Conlnat The term 'Incidental contract" wherever used In the policy moans any written (1) easement agreement, except In connection with construction or demolition operations on or adjacent to a railroad, (2) undertaking to Indemnity a municipality as required by municipal ordinance, except In connection with work done for the municipality, (3) sidetrack agreement, or (4) elevator maintenance agreement, Products Nmrd The term "products haterd" wherever used In the policy means: (a) Bodily Injury and property damage arising out of the Named Insured's Products or reliance upon a representation or warranty made at any time with respect (hereto, but only 0 the bodily Injurryy or property damage ocean away from Insured premises and alter physical possession of such Product has been relinquished to others; (b) Bodily Injury or properly damage arising out of aircraft servicing or repair operations or reliance upon a representation of warranty made at any time with respect thereto, but only if the bodily Injury or propon damage occurs altar such operations have been completed or abandoned and occurs away from Insured promises. Operations include materials, parts or equipment furnished till connection therewith. Operations shall be doomed completed at the oarliest of the following times: (1) when all operations to be performed by or on behalf of the Named Insured under the contract have boon completed; (2) when all operations to be performed by or on behalf of the Named Insured at the Bite of the operations have been completed; (3) when the portion of the work out of which the Injury or damage arises has boon put to Its Intended use by any person or organization other than another contractor or subcontractor ennaand in narfnrminn nnarptinpe imp a principal as a part of the same project: coloueehirrrelcenfuaoecnrnfcec,,00nrepair opametbecuse of anydeftod iny, but which are otherwise complete, shall be deemed completed. The products hazard does not Include bodily Injury or properly damage arising out of: (1) operations In connection with the transportation of propperlyy, unless the bodlly Injuryor propert r damage arises out of a condltlon In or Orion aircraft created by the loading or unloading thereof: (2) operations connected with pilot training, or the providing of pilot service, Bodily Injury The term "bodily Injury" wherever used In the policy means bodily Injury, sickness, disease and, if arising out of the foregoing, mental anguish, Including death at any time resulting therefrom, Property Bamegs The form "properly damage" wherever used In the policy means physical Injury to or destruction of tangible property, or the loos of use (hereof. EXCLUSIONS This Palley Bole Not Apply: 1. To liability assumed by the Insured under any contact or agreement, except an Incidental COW8CI, but this exclusion does not apply to a war - Ma worfitness performed by of ontbehalf of the Ne ed 1 eu Cured will be done In a wofkmanlike manner: 2, To soy obligation for which the Insured or any carrier as his insurer may be held liable under any workmen's compensation, unemployment compen- ullon or disability benefits law, or under any similar law, or to bodily Injury to or death Of any employee of the Insured arising out of and In the course of his employment by the Insured, 3, To bodily injury or property damage resulting from assault and basted If committed by or at the direction of the Insured, or a partner or executive officer of the Insured: 4, To any liability arising out of the operation of an air traffic control facility; 5, Except as respects Coverage 0 to Injury to or destruction of property owned, rented, occupied or used by, or in the care, custody or control of Me Insured or carried in or on any aircraft with respect to which insurance Is afforded by this policy; G. To bodily Injury caused by or resulting in any manner from the rendering Of any professional services or the omission thereof, of any medical or surgical treatments by any doctor, nurse or otter professional attendant. 7. As respects Coverages A. B, and C, to bodily Injury or properly damage CBWB L,r: (1) new construction or structural alterations, addlt ono to or demolition of existing structures, any of which Change the outside dimen- sions of the structures, (2) any escalator, moving sidowalk, hoist, or the appliances thereof, including cars, platforms, shafts, holstwaya. stairways, power equipment and machinery, except that this exclusion shall not apply to elevator $hallways In which there are no elevators, dumbwaiters, or hoists within a building not operated through a hatchway, manually oper- ated halals (scared outside the walls of a building or hydraulic or mechani- cal hoists used for raising or lowering aircraft or parts thereof for repairing Or servicing or Ouch moving sidewalks or escalators Specifically identified In the Supplemental Declarations of the policy: 8. As respects Coverages A. B, and C, to bodily injury or property damage arising out of environmental pollution or contamination; (a) caused by oil, or petroleum products, (b) caused by the diseharge, dispersal, release or escape of smoke, vapors, ocot, fumes, aclds, alkalis, toxic chemicals, liquids or gases, waste materials or other Irritants, contaminants or pollutants; unless such discharge or escape results from a sudden happening during the policy period, neither expected nor Intended from the standpoint of the Insured: g. As respects Coverages A, B. and C. to bodily Injury or pproperly damage directly or Indirectly occasioned by, arioing out of, or in any way con• netted with: (a) noise, vibration, sonic boom and any phenomena associated therewith, (b) damages for the devaluation of property, or for compensation for the taking, use or acquioition or interference with the rights of others in proper) or airspace, whether claim is made directly against the Insuredorby virtue of any agreement entered Into by or on behalf of the Insured; 10, As respects Coverages A. B, C. and 0, to bodily Injury or properly damage caused by or arising out of (i) the existence, maintenance or use of any aircraft owned by, tared by or for, or leased or toaned to the Insured or any aircraft in flight by or for the account of the Insured: (2) the owner- ship, maintenance or use of any grandstand or group seating structure unless such grandstand or structure Is specifically identified in the policy; (3) Me holding of any eirmeet. air circus, demonstration or show for which an admission charge or an automobile parking charge Is made; or (4) the ownership, maintenance, or use of any Swimming pool, recreational or sports facility, or lodging accommodation for the general public; c EXCLUSIONS (Contirued] 11. As respects Coverage D. to loss of or damage (1) to robes, woaring ap- parel, personal effects or merchandise of any description, whether the aircraft In which they are contained is damaged or not; 2) to any aircraft Or aircraft englnes or equipment owned or leased by I a Insured or his Immediate family or employees, or by members of the firm, If the Insured be a co -partnership, or by officers or directors of the corporation If Ilia Insured be a corporation; (3) to any material furnished by the Insured or any work done by the Insured out of which the occurrence arises; 12. To bodily injury or property damage caused by the ownership, mainle. nonce, operation, use, loading or unloading of boats, vehicles of any kind other than hand trucks, push torts and bicycles, or the loading or unload. Ing thereof, nor vehicles from which merchandise Is sold, or vehicles while rented to another, unless except for licensed vehicles the occurrence takes place on the insured promises or the highways Immediately adja- cent thereto; ii . to 000ny injury or property damage caused by 'PrOollone1 vehicles; 14. To bodily Injury or properly damage resulting from the failure of the Named Insured'e products or work completed by or for the Named Insured to perform the function or serve the purpose Intended by the Named Insured, it such failure Is due to a mistake or deficiency In any design, formula, plan, specifications, advertising material or printed Instructions prepared or developed by any Insured; but this exclusion -dose not apply Ing of such prdducts or wok I& To property damage to the Named Insured's products arising out of such produela or any part of such products; 16. To property damage to work performed by or on behalf of the Named In arleing out of the work or any portion thereof, or out of materials, Paris or equipment furnished in connection therewith: 17. To damages claimed for lose of use which arise from the Named Insured's products of work completed by or for the Named Insured or of any prop - to such oohroduoleh anydpart of such form orifwork performed In icon neotlon therewith; 1S. To damages claimed for the withdrawal, Inspection, repair, replacement, or loss of use of the Named Insured's products or work completed by or for the Named Insured or of any propery of which such products or work form a part, if such products, work or property are withdrawn from the market or from use because of any known or suspected defect or defi- ciency therein; 19. Except with respect to the Products Hazard, to bodily Injury or properly damage resulting from the handling or use of, the existence of any cond - lion In, or a warranty of goods or products manufactured, sold, handled of distributed by the insured if the occurrence takes place after the insured has relinquished possession thereof to others and away from the Insured promises; 20, Except with respect to the Products Hazard, to bodily Injury or properly damage resulting from aircraft servicing or repair operations of the Insured, if the occurrence takes place after such operations have been Such operations shall not be deemed Incomplete because Improperly or defectively performed or because further operations may be required pur- suant to a service or maintenance agreement; 21. To bodily Injury or progpeny damage arising out of the use of or the existence of any condNlon In premises alienated by the Insured after possession thereof has been relinquished to others by the Insured; 22. To bodily injury or properly damage for which the Insured may be held liable, as a person or organization engaged In the business of manufaetur- Ing, distributing, selling or serving alcoholic beverages or as an owner, operator or lessor of Insured premises used for such purposes, by reason of the selling, serving or giving of any alcoholic beverage ((1) In violation o1 any statute, ordinance or regulation, 12) to a minor, (3) to a person under the Influence of alcohol, or (4) which causes or contributes to the Intoxication of any person; 23, To bodily injury or properly damage: (a) with respect to which an Insured under the policy is also an Insured under a Nuclear Energy Uabtlity Policy Issued by Nuclear Energy AN-1049 Ptd. In U.S.A. a Pago 4 Liability Insurance Association. Mutual Atomic Energy Liability Under• writers or Nuclear Insurance Association of Canada, or would be an Insured under an yy such policy but for Its termination upon exhaustion of Its limit of liabllity, or (b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization Is required to main- tain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the Insured Is, or had this ppolicy not been Issued would be, entitled to Indemnity from the United States of America, or any agency thereof, under any agreement en- tered Into by the United Stales of America, or any agency thereof, with any person or organization; 24. Under any medical payments coverage, or under any supplementary payments provision relating to first old, to expenses Incurred with respect is bodily Injury resultino from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization; 25. To bodily Injury or properly damage resulting from the hazardous prop. erties of nuclear material, if: (a) the nuclear material (1) Is at any nuclear facility owned by, or operated by or on behalf of, an Insured or (2) has been discharged or dispersed therefrom, (b) possessed, handled, used, processed, stored, fuel or or disposed of by or on behalf of an Insured, or (c) the bodily Injury or properly damage arises out of the furnishing by an Insured of services, materials, parts or equipment In connection with the plannin , construction maintenance, operation or use of any nuclear facilityy, but if such facility is located within the United States of America, 11s territories or possessions or Canada, this Exclusion (c) applies only to property damage to such nuclear facility and any property thereat, As used In this exclusion: "Hazardous Properties" Include radioactive, toxic or explosive properties; "Nuclear Material" means source material, special nuclear material or by- product material; "Source Material," "Special Nuclear Material," and "Byproduct Material" have the meanings given them In the Atomic Energy Act of 1954 or In any law amendatory thereof; "Spent Fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor, "Waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any parson or organization of any nuclear facility Included within the definition of nuclear facility under paragraph (a) or (b) thereof, "Nuclear Facility" means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the Isotopes or uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, (a) any equipment or device used for the processing, fabricating or alloying of special nuclear material If at any time the total amount of such material In the custody of. the Insured at the promises where such equipment or device is located consists of or contains more than 25 grams of plu- tonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235. (d) any structure, basin. excavation, premises or place prepared or used for storage or disposal of waste, and Includes the site on which any of the foregoing Is located, all operations conducted on such site and all premises used for such operations: "Nuclear Reactor" means any apparatus designed or used to sustain nuclear fission In a self-supporting chain reaction or to contain a critical mass of fissionable material; "Properly Damage" includes all forms of radioactive contamination or property. Page 5 i r I ` j T POLICY CONDITIONS 1. Polley Period, Territory This policy applies only to occurrences, accidents or losses which happen during the policy period and within the United States of America, Its territories or possessions, Canada or Mexico. Z. Terms of Policy Conformed to Statute Terms of this policy which are In conflict with statutes of the State or, Province wherein this policy Is issued are hereby amended to conform to such statutes. 3. Fraud and Misrepresentation This policy shall be void If the Insured has concealed or misrepresented any material fact or circumstance concerning this Insurance or the sub act thereof or In case of any fraud, attempted fraud or false swearing by the Insured touching any matter rotating to this Insurance or the subject thereof, whether oetcre or after a loss. 4. Cancellation This policy may be cancelled by the Named Insured by surrender thereof to the Company or any of Its authorized agents or by mailing to the Company written notice elating when thereafter the cancellation shall be of (active. This policy may, be cancelled by the Company by mailing to the Named Insured at the address shown in this policy written notice staling when not lose than ten (10) days thereafter such cancellation shall be effective. The mailing of notice as aforesaid Shall be sufficient proof of notice. The time of the surrender or the effective date of cancellation staled In the notice shall become the end of the ppoolloy period. Delivery of such written notice either by the Named Insured or by the Company shall be equivalent to mailing. If the Named Insured cancels, earned premium shall be computed In actor• dance with the customary short rate table and procedure. Cancellation of the folloy for non-payment of premium shall be deemed cancellation by the Named inured. If the Company cancels, earned premium shall be com i%cl pro rate. Premium adjustment may be made either at the time cancellation Is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium Is not a condition of cancellation. 6, Changes Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or Sato Me Company from asserting any right under the terms of this policy; nor shall Me terms of this policy be waived or changed, except by endorsement Issued to tom part of this policy. 0. Sebrogapon In the event of any payment under this policy, the Company shall be subro- gated to all the insured's rights of recovery therefor against any person or organization and the Insured shall execute and deliver Instruments and pavers and do whatever oleo is necessary to secure such rights. The Insured shall do nothing to prejudice such rights. 7. Assignment Assignment of Interest under this policy shall not bind the Company until its consent is endorsed hereon: If, however, the Named Insured shall die or be adjudged bankrupt or Insolvent within the policy period, this policy, unless cancelled, shall, it written notice be given to the Company within sixty (60) days after the date of such death or adjudication, cover the Named Insured's legal representative as the Named Insured, S. Inspection Ind Audit The Company shall be permitted, but not obligated, to inspect the Named Insured's property and operations at any time. Neither the Company's right to make inspections not the making thereof nor any report thereon shall consli- lute an undertaking, on behalf of or for the benefit of the Named Insured or others, to determine or warrant that such property or operations are safe or healthful, or are in compliance with any law, rule or regulation. The Company shall be permitted to examine and audit the Named Insured's books and records at any time during the policy period and extensions thereof and within three 13) years after the final termination of this policy, or until final settlement of all claims nereunder, whichever is later, as for as they relate to the subject matter of this insurance. 9. Premium and Rates The premium oases and rates for this policy are stated herein. With respect to Products Hazard, the advance premium stated In the Declarations Is an estl- Inated premium only. Upon termination of this policy, the earned premium shall be computed in accordance with the Company'a rules, rates, rating plans, premiums and minimum premium applicable to Is Insurance. If the earned Ippremium thus computed exceeds the estimated premium paid, the Named neuled shall pay the excess to the Company; If less, the Company shall return to the Named Insured the unearned portion paid by such Insured. The Named Insured shall maintain for each Insured Products Hazard records of the information necessary for premium computation on the basis stated in the Supplemental Declarations and shall send topics of such records to the Company at the end of the policy period and at such times during the policy period as the Company may direct. Computation and adjustment of earned premium shall be made at the end of each annual period. tu, Aenon against twmpeny No action shall lie against the Company unless, as a condition precedent thereto, the Insured shall have fully core lied with all the terms of this pollcy nor until the amount of the Insured's obligation to pay shall have been finally determined either by Judgment against the Insured after actual trial or by written agreement o the Insured, the Claimant and the Company. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the Insurance afforded by this policy. Nothing contained in this policy shall glue any person or organization any right to join the Company as a codefendant In any action against the Insured to determine the Insured's liability nor shall the Company be Impeaded by the Insured or his legal representative. Bankruptcy or Insolvency of the Insured or of the Insured's estate shall not relieve the Company of any of he obligations hereunder. When Loss Occurs 11. Insured's Dupes In the Event of Occurrence. Claim or Sult—Coverages A, e, 0, and D. In the event of an occurrence, claim or suit the Insured shall: (a) give written notice to the Company or anyy of its authorized agents as soon as practicable containing particulars sufliclent to identify the Insured and also reasonably obtainable Information with respect to the time, lace and circumstances thereof, and the names and addresses of the Inured and of available witnesses. The Named Insured shall promptly to 'a at his expense all reasonable steps to prevent other bodily Infury or property damage from arising out of the some or similar conditions, but such expenses shall not be recoverable under this policy; (b) immediately forward to the Company every demand, notice, summons or other process received by him or his representative; (c) cooperate with the Company and, upon the Company's request, assist in making settlements, In the conduct of suits and in enforcing any right of contribution or Indemnity against any person or organization who may be liable to the Insured because of bodily Injury or property damsgga with respect to which insurance Is afforded under this policy; and tha•insured shall offend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or Incur any expense other than for first aid to others at the time of accident. 12. Limit of Usbility—Coverage A —Excluding Products Hoard The limit of liability as stated In the Declarations Is the Company's total limit of liability as the result of each occurrence for all damages, including damage for care and loss of services, because of bodily Injury. 13. Limit of Usbllity—Coverege II —Excluding Products Hazard The limit of liability as stated in the Declarations is the Company's total limit of liability as the result of each occurrence for all damages because of property damage. 14, Limit of Uebllity—Coversge C—Excluding Products Hazard The limit of liability as stated in the Declarations is the Company's combined limit of liability as the result of each occurrence for all damages. including damage for care and loss of services, because of bodily injury and property damage. 15. Limit of Usbllity—Coverages A, 0, and C—Products Hazard The limit of liability as stated in the Declarations is the Company's total limit of liability as the result of each occurrence for all damages, including damage f The premium bases and rates for this policy are stated heroin. Wil11 respect to al ",11 ly oa lholrosuit nl aacliloccunuilco�lor all �daniagCompany's smnclutl np damage �-=� ..�_._ ... _...... _ �..... .�. .. _ .._ .. .._. ...., �. r Pape b I POLICY CONDITIONS [Continued] for care and loss of services, because of bodily Injury and property damage, Sub act to the limit of IlabllitY with respect to each occurrence, the limit of bodily Injury 18. 8upplementery Payments —Coverages A, 6, C end 0 As respects such Insurance as Is allorded by the other terms of this policy, and property damage liability stated In the Declarations as " aggrega a product$' s respectively the total limit of the Company's liability the Company shall pay, In addition to the applicable limits of liability: for all damages arising out of the Products Hazard. All such damages arising out of one tot of goods or products prepared or acquired by the Named Insured (a) all expenses Incurred by the Company, all costs taxed against the Insured In any suit dolendod by the Company and all Interest on the entire amount or by another trading under his name shall be considered as arising out of one occurrence. Aggregate limits of liability shall apply separately to each annual period. of a udggment therein which accrues after entry of the judpmeld and before I a Compan has paid or tendered or deposited In court that ppart of the judgment which does not exceed the limit of the Company's Ileblllty thereon; 18. Limit of Umblllty—Coverage D—Nengsrheepen The limit of the Company's liability under this coverage because of loss of or damage, Includingg lose of use, to one aircraft shall not exceed the amount stated In the Declarations as applicable to "each aircraft" and sub eat to the (b) premiums on appeal bonds required In any such suit, premiums on bonds i to release attachments In any such suit for an amount not In excess of the foregoing provision for env one aircraft. the total limit of the mmnanv'a applicable limit of liability of this pollcy, and the cost of ball bonds requlred w Ihn Iwe„rn.l hwww„ww wl wwwlAww, w• .,III. /.... ,.1.1./1....1.1,.. Will .I.11_ —' - 11801111y for damages to more than one aircraft arisingg out of the some occur- tones "each V Y, MVV,YYI,/ VI IIYI IV ,4w ,IVIYIIYII ,1110111 YYI VI IYO use o1 any vehicle to which this policy applies. not to exceed $260, per shall not exceed the amount stated as the Valli for occurrence". The deductible stated in the Supplemental Declarations shall apply to each and ball bond, but the Company shell have no obligation to apply for or furnish any such bonds; every occurrence. i 17. Other Insutonce (c) expenses Incurred by the Insured for first aid to others at the time of an occurrence, for -bodily Injury to which this policy applies; reasonable If the Insured has other Insurance (except insurance purchased to apply In excess of the limit o1 Ileblllty hereunder) against a loss covered by this policy expenses Incurred by the Insured of the Company's request, Including actual loss of wages or salary (but not lose of other Income). Me Company shall not be liable for a greater proportion of ouch loss than the limit applicable of liability of this policy bears to the total applicable limit of Ileblllty of all valid and collectible Insurance against such loss. If collectible 19. Deoletollons Insurance (other than Insurance purchased to apply In excess hereof) under any other pollcy of the Company Is available to the Insured covering a loss also By acceptance of this policy the Insured agrees that the statements In the Declarations are his agreements and representations, that this policy Is Issued I covered hereunder, the Comp�anyy's total liability shall In no event exceed the greater Of greatest limit of Fabllily applicable to such loss under this or any In reliance upon the truth of such representations and that this policy am• bodies all agreements existing between himself and the Company or any of other such policy. Its agents relating to this Insurance. In Witness Whereof, the Company has caused this policy to be executed and attested, but thin policy shall not be valid unless countersigned on the Declare- - Von$ page by a duly authorized agent of the Company, 1 _I 4 Age.. NRI�YI C• OrOM�N, 1n1,IM a0+0. AA�qc mqt Cos wnrn The coverage provided by this policy Is subject to the specific terms and conditlons of the entire contract which should be carefully read. The Index Is designed only for the policyholder's convenience in locating Items which may be of Importance or Interest. AN4049 Md. In U.S.A. r. a Page 7 j F. � 11 INDEX Page Page Page Declarations 1 Conditions Conditions supplemental Declarations 2 Policy Period, Territory 6 Insured's Duties 6 Insuring Agreements Bodily Injury 3 Terms Conformed to statute 6 Limit of Liability • Coverage A 6 Property Damage 3 Fraud & Misrepresentation Cancellation 6 6 limit of Liability - Coverage B Limit of Liability • Coverage C 6 6 Hangarkeepere 3 Changes 6 Limit of Liability - Deflnilione Exclusions 364 485 Subrogation Assignment 6 8 Coverages A, S. C • Products U7 Limit of Liability - Coverage D 7 Inspection & Audit 6 Other Insurance 7 Premium 6 Rates 6 Supplementary Payments 7 Action Against Company 6 Declarations 7 SHORT RAT! CANCELATION TABLE FOR ONe-YEAR POLICIES qr Gnt qr, at e+ Patient for Conl a per at ei qr ?01 q etrg 00n00►Ynt Npa1 oY CAN ►Olrw no Yur n0�7twoY OnINYar Po} cr 0a !Yw IeI er ono IYIa In q1q homlWn In IeraO hinlum In prep Pnmlum In lorq PrI'lum 1n 1o�ra ► IV?. In Ie1q /,Villa, 37.40... , ..... 2I % 05.08........ 37% 154.166....... 63% 219.02 69% 202.206....... 85% • ..... • ..1 0 41.43......... 22 -102, , ... , . 38 157.160, , , .... 64 224. 2 , 7 2 7.3 1...... , 88 7 44.47.... , , ... 23 1 •105.. , . , . , 89 61.181.. , .. , , 56 229.23 ....... 11 302.305. , .. , , , 87 • .......... 8 4 •51. , , . , .... 244 108.103 40 1 •167, , 5s 233.231....... 2 301410... , ... 84 0.06........ 20 110.118...... 1•171, 67 239. 41. 73 311.314., 17 •178....... 58 242.246....... 74 16.319....... SO • 33 1 1 .... , ... 1 Z......... 27 117.120. , , .... 43 17ee•178... , , , , 69 247.2tip 75 320•a23.... 121.124.... , , , 44 17A•182.... , , , 80 251.950....... 76 324.328.... �. .. yy a ,.... 10 7 •73.. , . ,... 30 120-131.:::: i 00 1 •191. ".. 6f 251.204 . ; ; ; ; : 17 329.33Z.. ; : I Y .. • • 8Z 281.284 . 78 33aa•337. 4 • 7!•16.. 31 132.136.. 47 19.198.. ... 68 285.289.. , .... 79 338.34Z....... 0 • ..,.... 7 �p 3Z is loss......, 48 tg7.200. 54 210.27 80 343.346....... 0 5• ....... 1-94 3a 1338142:,,,,,, 41 1.205... , , , e5 214.279....... 81 47.351....... 7 2 67,........34143.145....... 6200.200.... , , , 882 p e35 147.140,,,,,,, 5j 210.214,,,,,,. 07 263..,..,..0b8.360..,0 ....,... ......... 3e 160-163..,,... 5 215.218....... 08 288.291,,,,,,, 81.385.:,.,., 10 SHORT RATS CANCELATION RULES FOR POLICIES WITH A TERM OTHEII THAN TWELVE NOMTNS (Loss than or eraror than 12 months) A. 1lff 001 hl1 NM In fora for 11 month" or 1011, apply no oandero anon Fell 1111116 for mnuol pollol/o to the lull annual poems, 000MInd of for a polity Willi" for a e. irN or � In lot" for non thr t1 in Ins: tomin all son p volum a r a 0 ley wlNan tol a/la 010n1 p11I. /aef WHI /nlAiu (in �nn iho fu�l /a�1tY 0►fffmllum, anon (ha nnu1�110u glalal0 tha W me ornb pnInW01 M Ilia ana Of Ina cue Of nos Impih 0f VIM bilwd on• Year NI N Ilia T: 1n Tana a no 11n01h 01 Ilmo O�ypFed ppno wmr or which lae Polley was originally wrlllan. e. In 1Y111 Yc10 In ism9sna with !nM 11 Ind (al le aan 0anlod PI0n1un1 during 1011 Period policy Me 00" In fora. Page a I • Imh AIRPORT AMENDMENT Polley Peoud by INAme of Insurance Comparyl INSURANCE COMPANY Of' NORTH AMLRICA live ohovv n reouued to he completed only when this endnrsemem rs issued AVIATION I ftective pole of Endorsement to the preparallnn of the policy. Endorsement No. I IN CONSIDERATION OF THE PREMIUM CHARGED IT IS UNDERSTOOD AND AGREED THAT: 1. EXCLUSIONS S AND 9 ARE DELETED, 2. THIS POLICY DOES NOT COVER CLAIMS DIRECTLY OR INDIRECTLY OCCASIONED BY, HAPPENING THROUGH OR IN CONSEQUENCE OF: - (A) NOISE (WHETHER AUDIBLE TO THE HUMAN EAR OR NOT), VIBRATIONS, SONIC BOOM AND ANY PHENOMENA ASSOCIATED THEREWITH. (5) POLLUTION AND CONTAMINATION OF ANY KIND WHATSOEVER. (0) ELECTRICAL AND ELECTROMAGNETIC INTERFERENCE. (D) INTERFERENCE WITH THE USE OF PROPERTY: UNLESS CAUSED BY OR RESULTING IN A CRASH FIRE EXPLOSION OR COLLISION OR A RECORDED IN-FLIGHT EMERGENCY CAUSING ABNORMAL AIRCRAFT OPERATIONS, 8. WITH RESPECT TO ANY PROVISION IN THE POLICY CONCERNING ANY DUTY OF UNDERWRITERS TO INVESTIGATE OR DEFEND CLAIMS, SUCH PROVISION SHALL NOT APPLY AND UNDERWRITERS SHALL NOT BE REQUIRED TO DEPEND: (A) CLAIMS EXCLUDED BY PARAGRAPH 2 OR (B) A CLAIM OR CLAIMS COVERED BY THE POLICY WHEN COMBINED WITH ANY CLAIMS EXCLUDED BY PARAGRAPH 2 (REPERRED TO BELOW AS "COMBINED CLAIMS11) . 4. IN ANY RESPECT OF ANY COMBINED CLAIMS, UNDERWRITERS SHALL (SUBJECT TO PROOF OF LOSS AND THE LIMITS OF THE POLICY) REIMBURSE THE INSURED FOR THAT PORTION OF THE FOLLOWING ITEMS WHICH MAY BE ALLOCATED TO THE CLAIN OR CLAIMS COVERED BY THE POLICYt (I) DAMAGES AWARDED AGAINST THE INSURED AND (II) DEFENSE FEES AND EXPENSES INCURRED BY THE INSURED, S. NOTHING HEREIN SHALL OVERRIDE ANY RADIOACTIVE CONTAMINATION OR OTHER EXCLUSION CLAUSE ATTACHED TO OR FORMING PART OF THIS POLICY. Nothing herein contained shall vary, alter or extend any provi.wn or condition of the policy other than as dhove stated. OT�". 5& ul of is Agtnt UGMALOG 4110 hmdfo! AN•17)da Ptd. in U.S.A. I- Page 8 a .r I i • , b 0 ERA HELICOPTERS, INC. 8051 WESTHEWFR SUITF 1000 P 0 R©X 60140 0160 SOUTH AIRPARK DRIVE HOUSTON, TExAS 17056 FAIRRANKS, ALASKA M701 ANCHORAGE, ALASKA M502 TELEPHONE 713 621 1800 TELEPHONE 007 482 1838 TELEPHONE 007 248,4422 ae,, 600t-o "'v PLEASE REPLY TO November 11, 1985 Anchorage HAND DELIVERY Tim Rogers, Esq. City Attorney City of Kenai Kenai, Alaska 99611 40 Re: Kenai Airport Terminal Lease °7•�'� Dear Tim, �. This follows our telephone conversation last Thursday. After our colloquy at the City Council meeting Wednesday, I became concerned that perhaps ERA's views on the City's Air- port Terminal Lease were not fully understood. Accordingly, this letter is my attempt to explain our position in greater detail. Through the form of Lease drafted by your office, the City is seeking indemnification and insurance coverage, at the risk and expense of tenant air carriers, against the City's own negligence on the Airport (Sections D. 14 and D. 29). We believe this is fundamentally unfair, and unenlightened busi- ness practice as well. We believe our views are shared by all scheduled carriers serving Kenai, as well as other tenants at the Airport. From a business and policy standpoint, we believe the City should stand responsible for its own negligence, maintain appro- priate insurance coverage, and recover the costs of insurance through the rates and fees it charges Airport users. This would better Promote overall safety, as it would provide an incentive for the City to continuously monitor, manage and improve its safety programs and performance. Seel ems., Kuhn v. State, 692 P.2d 261 (Ak. 1984). It would also more fly spi—eil the risks among all users of the Airport. Finally, it would not cost the City a dime. Mr. Baldwin made these points well and eloquently in his presentation to the City Council on behalf of Southcentral Air last Wednesday, November 6, 1985. w i i Tim Rogers, Esq. City of Kenai November 11, 1985 Pago Two If a number of Airport tenants agreed to Suction D.14, ' the City could choose among them and unilaterally decide which tenant would be liable for the City's misconduct in a given case. Section D.14 is so broadly written that the City could theoreti- cally choose the Airport restaurant to pay for injuries suffered by one of its customers out on the ramp. If only the City's mis- conduct were involved# the restaurant would be stuck, with no recourse against any other party. The City should find these business and policy arguments sufficient in and of themselves to require changes in the Lease. If more persuasion is needed, however, there are legal grounds r..ry u.M��V.. 4. Vui j/V Oi..•.V.1• As a condition to receiving federal funding, the City is required by federal law to make the Airport "...available for public use on fair and reasonable terms and without unjust discrimination...." 49 U.S.C. Section 2210 a emp as s added). See a so A—B-TY.15.090. The City's exculpatory provisions are fu—nd name tally unfair and unreasonable, and, we suggest, against public policy. Kuhn v. State, supra. Moreover, they are dis- criminatory, since hey are einposed only on the three air carriers who happen to be leasing ticket counter space. They are not being imposed on all carriers that use the Air- port. As you know, we have alerted the FAA to our concerns .. in the hope they might assist all parties in resolving this mat- ter. Against this backdrop, you can see our disappointment with your counterproposal of November 5th. You have attempted to } retain full indemnity in the major risk areas --the ramp, taxi- ways and runway. I Nor do we take any comfort from your suggestion that we sign the Lease and trust to the Kuhn doctrine to seek relief j in court later if an incident occurs. It is not our practice to sign agreements with a view to later contesting their valid- ity. i We continue to believe that the fairest approach to all concerned is to allocate responsibility on the basis of propor- tionate fault --as we have suggested in our August 7th presenta- tion to the City Council and in our November lst proposal to you. ...,f This is the approach accepted by the State for implementa- tion at the Anchorage International Airport. In your memoran- dum to the City Council dated August 27, 1985, you imply that this was the result of a "bargaining chip held by the airlines" i having to do with bond ratings. I was at those negotiations, ! and I heard no mention of any such "bargaining chip". Rather, i i" I d " • Tim Rogers, Esq. City of Kenai November 11, 1985 Page Three I left with the impression that the State representatives were persuaded by the essential fairness of our position. As I mentioned on the phone last Thursday, there is now a possibility of the current lease rates becoming an issue. You may wish to review Indiana olis Airport Authorit v. American Airlines, Inc., et al., 733 F. 262 (7tft Mr. 984). One minor aspect of the Lease deserves brief mention. I am assuming that you do not seriously expect a corporation the size of ERA to designate a person to enter the Lease "individually". If I am wrong, please advise us of your reasoning. We look forward to meeting with you at the work session on November 19th. So that we may be prepared, please furnish us with copies of the City's insurance policies covering the Airport. In addition, please furnish us with a schedule of all rates and fees charged to users at the Airport and a breakdown of last year's income and expenses by cost center for all Airport operations. Sincerely, tl cT Birminant Vice President & General Counsel JB:md vas Mr. William J. Brighton, City Manager it CITY OF KENAIo ALASKA 210 Fldel®o • MO. AK 09811 • (007) 2076M l: ; !f TO $0 rep.„ : C. A. Qrok.N DATE '/' 1 / - "5 SUBJECT eg,+ ze • f 774 A;0o g 6 o a f `41�l LevG j) o ri.f• � � //���Or� oC/ � II Oh7~�iwGj • 'ri �'A f 1 A1% M I,hO 7p y� /�d'y- R r✓.�k ` +► 41 d,rp s.,�a rr pw ilr �tta� y e J ¢ ` r ./.. lq quo. cr S/ h,fl, 1 G P A jsf 7 7�i! i�tq % r ESQ bMPMY/O! • Wb.Y. GwPM.. Ili ev POLO AT I -) TO PIT DRAWING 80AMILWOLOPE r [WROP IL P ' I CITY OF KENAI "Od 64jaz dl 4 4" to 910 FIDALGO KlNAI, ALASKA 0"11 TELEPHONE seg. 1030 November 14, 1985 Mr. David Baumeister, President ERA Helicoptere, Inc. 6160 South Airpark Drive Anchorage, Alaska 99502 REs City of Kenai Airport Insurance and Indemnification Dear Mr. Baumeister: t In response to your letter of November 11, 1985, enclosed please find copies of the following information: 1. City of Kenai Resolution No. 85-52 2. Insurance Company of North America Policy _.:. 3. Lloyd's of London Insurance Policy 4. City of Kenai Comprehensive Annual Financial Report, Year Ended June 30, 1985 Sincerely, CITY OF KENAI - Y'tM: fii�n�Odli2S 4.1M Roger Attorney r: TR/clf --z__`` Enclosures ces Arden Page r. i S - 'f f '11 H I '. ■ C C ;• ERA HELICOFITERS, INC. P 0 i;,l7,ro1.14 fIl'J`iCll h1Allll',:IIK�I!IIJ� 411+14APIk;i, !II ,I;,•.A 1-:1/, 11 :. NI.1/ III, ,! • .. r i i' t. ••I I"i. 11:11,. 1 - I I I .1.1 ONO WI •HM III .,I It 1.1.1 i•. "0 1111:105E ifEP:.r tq ` M/G �d' /.. / r•i r. ✓fir it is �.•�i L• Ale or C, �� /li/ir i�� {Cr �li n�•i� /re%/.•4✓ fi(t . • ii,e ✓ 'rec%i�.•olr� 6► ma's �•f/► t /i[�.,,� S/� /%, /:� �y � / �� /liG %fief /%y Aliki X Owl fire✓%• 104 •air; e e lrn e r /la,/ zj lALr[Fr re /(%r/ / Ael, Aif'ril!1 /YA.•I odje/.4� AXI; /!ell. 'O Ast✓ a'/1 vr./ �,•, �., to Q • --_ --_ -- - _ -- -- AL-__- EPA HELICOPTEERS, INC. :' r '.:f :�++r.r'. -+. "' +'' • f lr 0 1,-)X +il 49 rill4''.! • J1 N AIRPA{tM. (40 A Hl i!y -� •cyl. "'ri i41Pt1.;!JK;' At A•,r.A;91U' ANCI Wks; , Al A';I'A4r'Ir7 (I.: 1.FHldrf• 1401 & -,.S I t I r t• 40iJ1. ta+/ ;,;A 1177 lu Novoiubcsr 5, 1985 N+ I Vi .it .,r •r ") Anchorage HAND DELIVERY Mr. Robiu Strickland Aantager, Airports Division Alaska Region Federal Aviation Administration 701 "C" strue,t Anchorage Alaska 99513 RE: Kenai Municipal Airports unlawful Treatment; of an Air Carrier. Dear Mr. Strickland, We at ERA Helicopters, Inc. are seeking the assistance of the FAA to remedy what we believe is unlawful treatment we are receiving at the hands of the City of Kenai, operator of the Xonai Municipal Airport. We are a Section 401 air carrier, providing scheduled commuter service at the Kenai Airport. To this end, we have leased ticket counter ,`space and terminal facilities from the City. The City now threatens to evict us, presumably within the next few days. See Exhibit A. The City claims a right to evict us because we are resisting certain provisions in their form of lease that we believe are unfair and unreasonable, in contravention of Section 511 (a)(l) of the Airport and Airway Improvement Act of 1982, 49 U.S.C. Section 2210(a)(1). Our rent is current, and we have made substantial capital improvements to the leased promises. The City wants to evict us, however, Lecause we are not agreeing to pay for whatever harm tno City may cause through the City's own nec;liger.ce. Tito lease is act forth in full in Exhibit B enclosed. The offondinq provisions arcs Sections 0.14, Page LCA-3, and D.29, page LCA-6. our objections dre set forth in Exhibit C, encslused, .a presentation made by Mr. Baumeister, our ►srosident, to ehc Kenai City Council on August 7, 1985. a 11-5-:35 Page Two C 13uuically, the City is domanainq that %'RA indomn.i.fy the City acsainrat and hold the City harmlons tram the City's own misconduct. As an example, if another airp.laiiu careened into ones of ours, loaded with pa�ieengars, and sued this City claiming impro,wr runway maintonAnco or the lika, the City nould dosnand Lust _-.'M defund the C1t7 and pay all the damagiwi That is not La.Lr ;ay anyone's standards. , Nor is it simply a mattor of who pays insurance premiums. If SM puffers an .insurance, loss, oven through no fault: of its own, it can expect to'pay for that loss through increased premiums for yours to coma. Mr. Baumeister explained this to the Kenai ,sty Council three months ago (See Exhibit C, page 2): "To accept paragraph 14, then, we would be playing a form of economic Russian Houlottes we would lose control of our loss history, and consequently, our insurance costs." The fairer approach would be for the City to insure against its own negligence in operating the airport, and pass these costs on to all airport users alike through fair rates and fees. Otherwise, anyone who signs tho lease --even an innocent bystandst--would be at the risk of being singled out for ruinous losses, through no fault of his own. We believe the City's actions are unlawful. We ask the FAA to stop in and take whatever action may be appropriate to: First, force the City to rescind its "Ten uay Notice to Quit"; and Second, assist the City and its airport tenants in reaching a reasonable compromise. We would appreciate your immediate response, as time is snort due to the City's "Ten Day Notice to Quit". Sincerely, /= Jack Birmingham Vies President and i Ooneral Counsel Enclosures JBsmd r. r: 1 V - •. .,,.1, �. 14 'iovemoer d, 1985 Mr. William J. Brighton City Manager 210 Fidalgo Kenai, Alaska 99611 Dear Mr. Brighton: ERA Helicopters, Ina., has notified us of your intent to evict them from the airport terminal building for refusal to sign the new lease agreement. It is the contention of ERA Helicopters, Inc., that the subject lease is not fair and reasonable within the meaning of 49 U.S.C. § 2210(a)(1) in that it requires that the lessee indemnify the lessor and hold it harmless for all actions, suits, liabilities and damages which may accrue in connection with its Privileges on the Kenai Airport, including such occurrences as may result from the acts or omissions of the lessor Ie.g. clauses 14 and 29(a) and (b) of the proposed lease], and that such provisions are also unjustly disciminatory in that all air carriers serving that airport are not required as a condition of using said airport to enter into such agreements regarding indemnification of the City of Kenai. :n order to assist us in our investigation of their complaint, please advise us as to your position with respect to these allegations and proposed course of action. We would in particular appreciate your views as to whether "he -principals set forth in Northwest Airlines, Inn., Inn-, ,,. ;. �,,,,,�351 F2d. 253, and Kuhn v. state 692 P2d. 2619 are applicable to a determination �s whether those terms of the lease are fair and !?1- :10rab:e. r. 4 ' - - -- - - ----- _L ' t !' i i} t 2 If, after review of your comments or changes to the proposed lease document, we determine that the lease provisions are contrary to 49 U.S.C. § 2210(a)(1), it may be necessary to place the City in noncompliance with previous grant conditions and/or assurances. Such action would impact current and future federal funding of your airport. We recommend that You delay Your actions to evict ERA unt11 we have had the opportunity to consider your reevaluation and we are satisfied that your compliance with grant conditions and assurances is not in jeopardy. Sincerely, St phen Kurth, P.B. Acting Manager, Safety and Standards Branch a ti CITY OF KENAI 210 PIDAL00 KlNAI, AL"" 00011 _ - - MISPIIONBM-7536 A November 14, 1985 Mr. Steven Kurth, P.E. Acting Manager Safety and Standards Branch Federal Aviation Administration 701 "C" Street, Box 14 Anchorage, Alaska 99513 Res November 8, 1985 Letter to Bill Brighton, City of Kenai ERA Helicopters Dear Mr. Kurths Bill Brighton has just brought to my attention your November 8, 1905 letter regarding the ERA Helicopter lease discussions now in progress. Because the legal department has been very much Involved in this controversy and because you ask for what the City's position is on several legal points, I thought it best for this department to respond. By way of background, I think you should be aware of several points. First, ERA has been without a lease since July 1, 1995. During this time, the City hoe been facing considerable exposure to liability if an accident were to occur. Second, a ten-day notice to quit the premises was served on ERA, but no Forcible Entry and Detainer action (eviction) has been filed. Third, discussions have been ongoing with ERA and Southcontral Air (SCA) regarding the indemnification agreement. AAI signed their agreement in a timely manner and SCA signed corporately but not Individually. ERA'a contention that the subject lease is not fair within the meaning of 49 USC 2210 (a)(1) is groundless. 49 USC 2210(a)(1) essentially requires that all fixed -base tenants making similar 1 d a_ 9 0 M :°the facilities, receive equal treatment no to ratoa, feoo, ,ishGlet rules, regulations, and conditions. The Statute speaks in terms of carriers making similar use of the facility. In this coast we have three similar ueeral AAI, SCA and ERA. Initially, the City required all three to sign a lease containing an indemnification agreement. AAI signed and SCA signed in their corporate capacity. ERA refused to sign. Every carrier in the class wee treated equally. It is only ERA which has caused us to treat anyone differently. The only different treatment we have given ERA has been the courtesy of entering into discussions about changing the indemnification provision] discussions in which SCA has been invnlyad Chm6..1A :...o0.yco L;uuin nuvui that are mutually beneficial, we would then, under the reatrictioila ": 49 USC 2210(a)(1)t be required to offer e lease amendment to both SCA and AAI. From my perspective, to let ERA remain at the Terminal without e lease is in violation of 49 USC 2210(a)(1), because we are essentially discriminating against SCA and AAI by giving ERA this privilege of remaining on -promisee without a lease. At this point, I have retained outside counsel to provide a second opinion Be to the propriety of our requiring indemnification. Pending that determination and response from your agency to this letter, I will withhold filing of our eviction procedure. In your letter you specifically asked whether the City felt that the principles set forth in Northwest Airlines Inc. v. Alaska Airlines, 351 F.2d 253 (1965 and u n v. State92 p 6 7984Y, are applicable to a determination as o�whether the terms Of the lease are fair and reasonable. There can be no question that these cases control issues of indemnification and reasonableness in this case. The question is, to whet effect? Both Northwest Airlines and Kuhn discuss the public duty exception to in emnif cation agreements. Succinctly stated, the exception to the rule that indemnity clauses for an indemniteets own negligence are enforceable, is, "cases where the indemnity clause tends to promote a breach of a duty owing to the public at large." Recognizing this exception, the City, on November 5, 1985, asked ERA to look at a proposal for a lease amendment which the City felt would bring the indemnification clause into line with Kuhn. I have attached that proposed amendment. As you can see the City only asked ERA to indemnify it in relation to operations of loading and off-loading passengers, taxiing, flying and cargo operations. e7 2 w4ww J� a.^? Y :vb r The effect of Kuhn is to limit indemnification to those areas where the City--co-es not have a public duty to be free from negligence. The operations we have asked ERA to indemnify us for do not, in my opinion, intrude onto those areas which would cause the City to be any lose diligent in maintaining safe conditions j for the public. Because these operations are within the control of ERA, it is the: City's position that it can require indemnification. The s scenario that comes to mind is the slip and fall from the plane's ; steps. Any ;or is going to join the City in the suit against ERA for the obvious reason; deep pockets. Even though --- the piasntsrr never touched the termac, the City would be required to defend, absent an indemnification agreement. Like ERA, the City is also interested in avoiding a "claims history," whether these claims are based on real negligence or baseless. I trust this answers some of your questions and I will look forward to hearing from you. Sincerely, 1" CITY Of KENAI Tim Rogers "10 j Attorney '�► j�``'sli ro TR/clf ,. I r t- r- i . ERA HELICORTERS, INC. 5041 WESTHEIMER • SUITE 1000 P 0 BOX 60149 6160 SOUTH AIRPARK ()RIVF HOUSTON, TEXAS 77056 FAIRBANKS, ALASKA 99701 ANCHORAGE, ALASKA 99502 TELEPHONE 713 621 7800 TELEPHONF 907 452,1838 TELEPHONE W7 248,4422 PLEASE REPLY TO: November 1, 1985 Anchorage HAND DELIVERY Tim Rogers, Esq. City Attorney City of Kenai Kenai, Alaska 99611 Dear Tim, Please find enclosed two executed originals of Amendment No. 1 to Lease of Airport Facilities. If You find them satisfactory, please have them executed and return one to me. Immediately upon receipt of the Amendment, I will deliver to you a copy of the Lease, executed by ERA Helicopters. I am hopeful that you will find the Amendment Satisfactory, as it is based in large measure upon proposals the Peninsula Clarion reports you have Offered us. A copy of the article is enclosed. The Amendment also tracks ERA's original offer of Compromise submitted to you and the City Council on August 7, 1985. Please note that paragraph 2 of the Amendment is merely a a clerical correction --deleting reference to a nonexistent Provision of the Lease. If we need to discuss this matter further,, I am available at your convenience. In the meantime, I trust You will withdraw your "Ton (10) Day Notice to Quit Promises" immediately and in writing. As you are no doubt aware,, this Notice to Quit has already caused a substantial disruption to our business. And, as you no doubt can foresee, if ERA is forced into litigation to defend our Position, our counterclaims against the City will be substantial. W P Tim Rogers, Esq. City of Kenai ; / November 1, 1955 Page Two i Please call me as soon as you receive and review these ! .. materials. I am confident that we can resolve this matter amicably, equitably and efficiently. Sincerely, . i Jack Birminghp% Vice President and General Counsel ./ JBtmd act Mr. William J. Brighton, City Manager (By Band, w/encl.) ✓ j y 9 M A� r • . f OF ERA HELICOPTERS, INC. Ul 6051 WESTHEIMER • SUITE 1000 P 0 BOX 60140 6160 SOUTH AIRPARK QRIVf. HOUSTON, TEXAS 77056 FAIRBANKS, ALASKA 80701 ANCHORAGE, ALASKA IYJW TELEPHONE 713 621.7800 TELEPHONE 00102.1838 TELEPHONE 007 248 4422 i i PLEASE REPLY TO November 1, 1985 Anchorage Tim Rogers, Esq. City of Kenai 210 Fidalgo Kenai AK 99611 REs Lease of Airport Facilities Dear Tim, Seems we cannot escape clerical errors in this Leaser the Amendment i sent you earlier today contains at least one. Section 2 of the Amendment should refer to Section 32 of the Lease. Please feel free to insert the correction. Sincerely, Jack Birming �Bsntd cas Dar. William J. Brighton, City Manager 9 l CITY OF KENAI "Od (?aja" 4 4" 210 PIDALOO KHNAI, ALA9KA 90811 THLBPNON2II63.7636 November 59 1985 Mr. David Baumeister ERA Helicopters, Inc. 6160 South Airpark Drive Anchorage, Alaska 99502 Res Lease of Kenai Municipal Airport Facilities Deer Mr. Baumeister$ We are in receipt of your November 19 1985 letter which points out the problem with the reference to Section 33. I have changed the amendment to reflect this inaccuracy. In addition, I have made some minor semantic changes and deleted a proposed paragraph. I am enclosing the revised amendment for your review. Were you to execute the agreement as I have drafted it, I am fairly confident that I could get the Council to go along with these changes. I have discussed these changes with our insurance agent and he has no specific objections at this time. Thank you for your continued cooperation. Sincerely, CITY OF "NAI Timogera Attorney TR/clf Enclosure n 7� 1 V AMENDMENT NO. 1 f0 LEASE Of AIRPORT FACILITIES This AMENDMENT No. 1 to LEASE of AIRPORT FACILITIES, (this "Amendment") is entered an of July 1, 1985, by and botween the CITY OF KENAI (the "City") and ERA HELICOPTERS, INC. ("Lessee"). RECITALS A. Lessee hoe leaned certain office apace and ticket counter space at the Kenai Municipal Airport from the City, effective as of July 1, 1901. B. Concurrently with the eweeutinn nr thin Aman.lmon# 6ho City and Lessee have executed that certain Leone of Airport Facilities, dated , 1981 (the "Lease"). C. The City and Lessee wish to amend the Leone as set forth In this Amendment. This Amendment has all requisite approval of the Monet City Council. NOW, THEREFORE, the City and Lessee agree as follows, 1. The Lease is hereby amended to include a new Section 0.14A, set forth below, Immediately after Section D.14. 14A, ALLOCATION OF RISK AND RESPONSIBILITY, Notwithstanding any inconsistent or contrary provision contained in Section 0.14 above, in Section D.19 below, or elsewhere in the Lease, the provisions contained in this Section D.14A shall control. An between Lessee and the City, any liability for lose or harm emanating from use of the auto perking lot or terminal counter apses, whether such lose or harm Is suffered by either party or any third party, shall be allocated on the basis of Proportionate responsibility, as in doctrines of pure comparative negligence and pure comparative contribution. Lessee's indemnification and insurance obligations under Section 0.14 above shall be limited to Lessee's loading and off-loading of passengers and cargo, taxiing, and flying. 2. The words, "provided in item 32 hereof," at the and of Section 0.2 of the lesser are hereby deleted. IN WITNESS WHEREOF, the City and Lessee have executed this Amendment as of the date first set forth abovo. LESSOR, CITY Of KENAI By, m. J. Brighton City Manager 1 4 . Q -9 A `i 1 'HIV LF,83FE $ INOIVIOUALLY$ ERA HELICOPTERS, INC. Sy$ Name "-- '+ �iavid oume o er Prooldent Name STATE Of ALASKA ) THIRD JUDICIAL DISTRICT �ss THIS IS TO CERTIFY that on thle day of , 198l, , Indiv uolly so wa oa in his poconnoiiy xnOwn iil mo Yi II�Ying produced satlsfsotoey evidence of Identlfioatfon, appeared before me and acknowledged the voluntary and authorised execution of the foragolnq lnatrument. o ary Public or ee • My Commleeion Expires$ STATE Of ALASKA ) THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on thla d•YY of 1985, , f" v uslly as wall e as n his representative cap ao y, a nq peesonaily known to me ee having produced astfsfeetory avidence of Identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing Instrument. Notary u o for ss • My Commission Expires$ STATE Of ALASKA THIRD JUDICIAL DISTRICT )aa THIS 18 TO CERTIFY that on thin day of , 1905, WILLIAM J. BRIGHTON, City Menoger of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of Identification, appeorod before me and acknowledged the voluntary and authorized execution of the foregoln9 instrument on behalf or cold City. Notary u e For AlSeko My Commleolon Expireo$ to y: ? r p CITY OF KENAI led ed#ial of 4"„ - TlLO'NON0000.7670 November 15, 1985 MEMORANDUM TOt Mayor Wagoner and Kenai City Councii FRONo Randy Ernet, Airport Manager RE: Tie -down areas for large and email aft o eft at various airports in Alaska (see attached sheet) There appears to be no precedent set by other airports in Alaska with regard to long term tie -down spaces for large aircraft. The only airports I could find that oatere to large transient siroreft are Anchorage International and Fairbanks International although Kodiak does have a fish -haul ramp similar to ours, Anchorage has only a large aircraft transient ramp that hoe become a home for derelict aircraft, which they are trying to rid themselves of at present. Charges are based on per 1000 pounee of weight per month (see attached sheet). To date, I have not gotten shold of the manager in Fairbanks that oversees the large aircraft perking, but hope to have something by the 19th, Consequently, insurance requirements are either non-existent or are of a hold harmless type of clause within a tie -down agreement. RE/dg Attachment 51 ' r r,' Long form Long form Long Torm Lan form OIL Airport parking Parking roan Parking roan Indemnity indemnity Liability Name Large Aircraft Larne Aircraft Small Aircraft Small Aircraft I nuranoo Inouranco Anchorage Trannient, romp Onood on 10000 Hold herm- Nano only, plan 2 wolPUt (oxi OC6 lane oleuae, Required lenood loco g f8i0/month Yon FRO theft, damage Fairbanks Yon 20/mo regular 135/mo Hold harm- Owner re- w/electric load clause, oponoibllity theft, damage smell aircraft V*ldas Transient only No charge Yoe FRO has 12 spaces 4 No $30/month, 10 hannwra a llnn/mn* Merrill No Yoe 40 mo push -in No owner re- S50/mo drive In/oul eponeibility (smel 1) G e o -- area for Yee No charge fish haul only •• seasonal e o en No Yoe SUM one a erm- No aircraft lane clause unsau No Yoe 23 mo gravel No - working No - working on $34/mo pavement on some type some type of of requirement requirement --"WIWWW►o vvra wv uW NF u wry -- yruwa ra-vur, Iu•a7 unuavuau0 unu uarururc par nungurs f Y r o0 i l �k f US.D000nment of 1Ponsportakon Federal Avlallon Adminlitratlon DozembeI IV, 17VJ Alaskan Realon 701 C WON. BOY 14 Anrhoraoo, Alaska 09513 Mr. William J. Brighton City Manager City of Kenai 210 Fidalgo Kenai, Alaska 99611 Dear Mr. Brighton: Kenai Airport Leases Based on your submission to us on November 14, 1985, we have determined that the airport space leases between the City of Kenai and ERA, SCA, and AAI, as modified by Amendment No. 1, would be fair and reasonable within the meaning of 49 O.S.C. Section 2210(a)(1). Therefore, as stated in Mr. Cushman's telephone conversation with Randy Ernst last week, we have no objection to the leases as amended. We have advised ERA by letter of our position. A copy of our letter to ERA Helicopters, Inc., is enclosed. Sincerely, Roble B. Strickland Manager, Airports Division Enclosure - Edward Warren- First American Aloft 1 4 f � • P la a December 2, 1985 Mr. Jack Birmingham Vice President 6 general Counsel ERA Helicopters, Inc. 6160 S. Airpsrk Drive Anchorage, AK 99502 Deer Mr. 9irminghams Kenai Airport Lease We have recently been advised by the City of Kenai that the City has decided to amend its lease .with ERA Helicopters. This amendment modifies the insurance and indemnification Obligations of ERA Helicopters through the inclusion of a new Section 14A to the lease agreement. Our review of the eoposed amendment to the lease lend$ us to conalude that a ease for the terms and conditions now required by the City could no longer be said to be unfair or unreasonable within the moaning of 49 U.S.C. Section 2210(a)(1). 1 am enclosing a copy of the Cityoa letter to us responding to ERA's complaint as well to the lease, as a copy of the subject amendment We trust that this satisfactorily addresses the concerns expressed in your letter of November B. 1g85. Sincerely, Roble Strickland M,pnager, Airports Division ksn/A i COP/ r 0 CITY OF KENAI "Od G?aja W 4 4"„ 210 PIDALGO KENAI, ALABKA O Nil TELEPHONE 283.7838 November 14, 1985 Mr. Steven Kurth, P.E. Acting Manager Safety and Standards Branch Federal Aviation Administration 701 "C" Street, Box 14 Anchorage, Alaska 99513 Rot November 8, 1985 Letter to Bill Brighton, City of Kenai ERA Helicopters Dear Mr. Kurtht Bill Brighton has just brought to my attention your November 8, 1985 letter regarding the ERA Helicopter lease discussions now in progress. Because the legal department hoe been very much Involved in this controversy and because you ask for what the City's position is on several legal points, I thought it best for this department to respond. By way of background, I think you should be aware of several points. First, ERA has been without a lease since July 1, 1985. During this time, the City has been facing considerable exposure to liability if an accident were to occur. Second, a ten-day notice to quit the premises was served on ERA, but no Forcible Entry and Detainer action (eviction) has been filed. Third, discussions have been ongoing with ERA and Southcentral Air (SCA) regarding the indemnification agreement. AAI signed their agreement in a timely manner and SCA signed corporately but not individually. ERA's contention that the subject lease is not fair within the meaning of 49 USC 2210 (a)(1) is groundless. 49 USC 2210(s)(1) essentially requires that all fixed -base tenants making similar 1 .. y d T•,. '� Y 0 .-.' - .r 11 ". . • . A use of tho facilities, receive equal treatment as to rates, fees, rentals, rules, regulations, and conditions. The Statute speakn in terms of carriers making similar use of the facility. In this cone, we have three similar useral AAI, SCA and ERA. Initially, the City required all three to sign a lease containing an Indemnification agreement. AAI signed and SCA signed in their corporate capacity. ERA refused to sign. Every carrier in the class was treated equally. It Is only ERA which has caused us to treat anyone differently. The only different treatment we have given ERA has been the ,suurLvuy u► encering into discussions about changing the Indemnification provision; discussions in which SCA has been involved. Should changes come about that are mutually beneficial, we would then, under the restrictions of 49 USC 2210(a)(1), be required to offer a lease amendment to both SCA and AAI. From my perspective, to let ERA remain at the Terminal without a lease is in violation of 49 USC 2210(a)(1), because we are essentially discriminating against SCA and AAI by giving ERA this privilege of remaining on -premises without a lease. At this point, I have retained outside counsel to provide a • second opinion as to the propriety of our requiring Indemnification* Pending that determination and timely response from your agency to this letter, I will withhold filing of our eviction procedure. In your letter you specifically asked whether the City felt that the principles set forth in Northwest Airlines Inc. Y. Alaska Airlines, 351 F.2d 253 (1965 and Kuhn v. 5tat9t 69Z P.2d T1984)p- are applicable to a determination as to whether the terms of the lease are fair and reasonable. There can be no question that these cases control issues of indemnification and reasonableness in this case. The question is, to what effect? Both Northwest Airlines and Kuhn discuss the public duty exception to n emn cation agreements. Succinctly stated, the exception to the rule that indemnity clauses for an indemnitee'e own negligence are enforceable, is, "class where the indemnity clause tends to promote a breach of a duty owing to the public at large." Recognizing this exception, the City, on November 5, 19859 asked ERA to look at a proposal for a lease amendment which the City felt would bring the indemnification clause into line with Kuhn. I have attached that proposed amendment. As you can see, the City only asked ERA to indemnify it in relation to operations of loading and off-loading passengers, taxiing, flying and cargo operations. 2 r The effect of Kuhn io to limit indemnification to thone nrese whero the City cee not have a public duty to be free from negligence. The operations we have asked ERA to indemnify us for do not, in my opinion, intrude onto those areas which would cause the City to be any lees diligent in maintaining safe conditions for the public. Because these operations are within the control of ERA, it is the City's position that it can require indemnification. The scenario that comes to mind is the slip and fall from the plane's steps. Any attorney Is Qoinq to .coin the City in the suit against ERA for the obvious roasonj deep pocketa. Even though the plaintiff never touched the tarmac, the City would be required to defend, absent an indemnification agreement. Like ERA, the City is also interested in avoiding a "claims history," whether these claims are based on reel negligence or baseless. I trust this answers some of your questions and I will look forward to hearing from you. Sincerely, CIT F • I I oqPre Attorney TR/olf 3 s, • r P i' . iWW i 11M octal CITY a NINN . •e•o•r . PINY AIAfAAMn a c AMENDMENT NO, 1 TO LEASE Of AIRPORT FACILITIES c Thin AMENDMENT NO. 1 to LEASE of AIRPORT FACILITIES, (this "Amendment") ie entered so of July 1, 1905. by and between the CITY Of KENAI (the "City") and ERA HELICOPTERS, INC. ("Leoeee"). RECITALS A. Lessee has leased certain office space and ticket Counter epsas at the Kenai Municical Alroert from the Citv. effective as of July 1, 19eS. 8. Concurrently with the execution of thin Amendment, the City end Losses have executed that certain Lease of Airport facilities, deted , 1965 (the "Lass&"). C. The City and Lessee wish to amend the Lease as set forth In this Amendment. This Amendment has all requisite approval of the Kenai City Council. NOV, THEREFORE, the City and Lessee agree as follows 1. The Lease is hereby amended to include a now Section 0.14A, not forth below, immediately after Section 0.14. 14A. ALLOCATION Of RISK AND RESPON81e1LI1Y/ Notwlthstan naigTny inotent oc aontroey provision contained !n S&otlon 0.14 above, in Seatlon 0.19 below, or elsewhere In the Less&ol.• contethe provisions contained in this Section 0.14A shell ' An between Lessee and the City, any liability for lose or harm emanating from use of the auto parking lot or terminal counter spew , whether such lose or harm Is suffered by either party or any third party, shell be allocated on the basis of propertlonsts romponsiblllty, as In doctrines of pure comparative n891196ncs and pure comparative Contribution. Less@&•a indemnification and insurance obligations under Section 0.14 above shall be limited to Lessee's loading and off-loading of passengers and cargo, texiing, and flying. 2. The words. "provided in Item 12 hereof," at the and of Section 0.2 or the lease. are hereby deleted. IN WITNESS WHEREO►, the City and Leoeee have executed this Amendment ss of the date first set forth above. LESSOR/ CITY Of KENAI 9y$ m. J. stiqhton City Manager 1 , a O (, LESSEE, INDIYIDJALLYt ERA HELICOPTERS, INC. 8yt Name 04VId aumetotor President aws STATE Of ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of . 1905, , individually ae weI as in his representative capoc ty, being personally known to me or having Produced satisfactory evidence of identification, appeared before me end acknowledged the voluntary and authorised execution of the foregoing instrument. otary ub c for Alaska My Commission Expires STATE Of ALASKA THIRD JUDICIAL DISTRICT ;ss THIS 18 TO CERTIFY that on this day of , 1985, , indi'Muelly as we ae n hie representative capac ty, a ng psreonally known to me or having Produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorised execution of the foregoing instrument. Otary Public for AlasTa My Commission Expirees STATE OF ALASKA )) THIRD JUDICIAL DISTRICT )es THIS IS TO CERTIFY that on Chia day of , 1905. NILLIAM J. BRIGHTON. City Man agar cf the CTryO Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification. appeared before me and acknowledged the voluntary end authorised execution of the foregoing instrument on behalf of said City. Mary u c oe aeke My Commission Expires: i » 2 - r i ERA HELICOPTERS, INC. TELEPHONE 713621-7800 PLEASE REPLY TO: Anchorage HAND DELIVERY Tim Rogers, Esq. City Attorney City of Kenai Res Kenai Airport Terminal Lease Dear Tim, This follows our telephone conversation last Thursday. After our colloquy at the City Council Meeting Wednesday, I became concerned that perhaps ERA19 views on the City's Air - Port Terminal Lease were not fully understood. Accordingly, this letter is MY attempt to explain our position in greater Through the form of Lease drafted by your office, the City is seeking indemnification and insurance coverage, at the risk and expense of tenant air carriers, against the City's Own negligence on the Airport (Sections D. 14 and D. 29). we believe this is fundamentally unfair# and unenlightened busi- ness practice as well. W8 believe our Views are shared by all scheduled carriers serving Kenai, as wall as other tenants at the Airport, From a business and policy standpoint, we believe the City should stand responsible for its own negligence, maintain appro- priate insurance coverage, and recover the costs of insurance through the rates and fees it charges Airport users. This would better promote overall safety, as it would provide an incentive for the City to continuously monitor, manage and improve its Safety Programs and performance. See, e.g., Kuhn v. State risks among all users of the Airport. Finally, it would not cost the City a dime. Mr. Baldwin made these points well and eloquently in his presentation to the City Council on behalf of Southcentral Air last Wednesday, November 6, 1985. r 'Tim Rogers, Esq. City of Kenai November 11, 1985 Page Two If a number of Airport tenants agreed to Section D.14, the City could choose among them and unilaterally decide which tenant would be liable for the City's misconduct in a given case. Section D.14 is so broadly written that the City could theoreti- cally choose the Airport restaurant to pay for injuries suffered by one of its customers out on the ramp. If only the City's mis- conduct were involved, the restaurant would be stuck, with no recourse against any other party. � The City should find these business and policy arguments sufficient in and of themselves to require chanaes in the r.AAAA_ .e ,"urtI persuasion is needed, however, there are legal grounds that support our position. As a condition to receiving federal funding, the City is required by federal law to make the Airport "...available for public use on fair and reasonable terms and without unjust discrimination...." 49 U.S-C. action 2210 a) (emphasis added). See also AS 02.15.090. The City's exculpatory provisions are Ada em ntaily unfair and unreasonable, and, we suggest, against public policy. Kuhn v. State, su ra. Moreover, they are dis- criminatory, since They are einposed only on the three air carriers who happen to be leasing ticket counter space. They are not being imposed on all carriers that use the Air- port. As you know, we have alerted the FAA to our concerns in the hope they might assist all parties in resolving this mat- ter. Against this backdrop, you can see our disappointment with Your counterproposal of November Sth. You have attempted to retain full indemnity in the major risk areas --the ramp, taxi- ways and runway. Nor do we take any comfort from your suggestion that we sign the Lease and trust to the Kuhn doctrine to seek relief in court later if an incident occurs. It is not our practice to sign agreements with a view to later contesting their valid- ity. We continue to believe that the fairest approach to all concerned is to allocate responsibility on the basis of propor- tionate fault --as we have suggested in our August 7th presenta- tion to the City Council and in our November lot proposal to you. This is the approach accepted by the State for implementa- tion at the Anchorage International Airport. In your memoran- dum to the City Council dated August 27, 1985, you imply that this was the result of a "bargaining chip held by the airlines" having to do with bond ratings. I was at those negotiations, and I heard no mention of any such "bargaining chip". Rather, tv i ; • y P ' 11 Tim Rogers, Esq. City of Kenai November 11, 1985 Page Three I left with the improssion that tho State representatives were persuaded by the essential fairness of our position. As I mentioned on the phone last Thursday, there is now a possibility of the current lease rates becoming an issue. You may wish to review Indianapolis Air ort Authorit V. American_ Airlines, Inc., et a ., 733 F-24 1ZOZ (7th C r. 198 One minor aspect of the Lease deserves brief mention. I am assuming that you do not seriously expect a corporation the size of EPA to designate a person to enter they T_.aAao 'a.naivsdualiy". If I am wrong, please advise us of your reasoning. We look forward to meeting with you at the work session on November 19th. So that we may be prepared, please furnish us with copies of the City's insurance policies covering the Airport. In addition, please furnish us with a schedule of all rates and fees charged to users at the Airport and a breakdown of last year's income and expenses by cost center for all Airport operations. Sincerely, .7ack Birmingha Vice President & General Counsel JBtmd cat Mr. William J. Brighton, City Manager r 4). ■ r . �I BURR, PEASE & KURTZ A PROF950IONAL CORPORATION C, L.ARNBLL 1013.10nD CHARLCB P! FLYNN AROCN C.PAQC O, A.OURR RICHARD A, HELM L.B. KURTZ, JR. NELSON 0.PA439 COWARD O. BURTON ANN C. LIDURO THCOOORC M. PCADC, JR. J. W. BCOWICK RONALD H.DUBBCY RUBOELLVN B. CARRUTH THOMAB B, MEACHAM KRIBTI A. NCLDON JOHN C.BICMCRB RALPH C.pUCRR6 BAROARA A.NORRIB DAVID M. TRAVCRBI November 19, 1985 T. J. Rogeras Esc. City Attorney CITY OF KENAI P.O. Box S80 Kenai, Alaska 99611 Res Kenai Airport Leases Our Pile No, 1695-1 Dear Tims 810 N STREET ANCHORAOB,ALASKAi (B07) 876.6100 TCLCK;(000)26.401 I have reviewed the materials which you provided f; to roe and have refreshed myself with some minimal review of i the Alaska Indemnity decisions. This letter will provide �! you with a short version of my opinions concerning the lease. I would be happy to expand upon my opinions if you, after reviewing this letter, would like to do so. INDEMNIFICATION in aline of cases commencing with Manson-oaber v. State, 552 P.2d 654 (Alaska 1976), the Alas ca Supreme Court has taken the commercially sensible position that an unambiguous indemnity clause will be enforced even for claims arising out of an indemnitee's own negligence. The Supreme Court's discussion in state v. Morris, 555 P.2d 1216 (Alaska 1976), and the "period prov e y AMOCO Production Co. v. W. Co Church, S80 P.2d 697 (Alaska 19 , are sug- geate or your review. The Alaska Supreme Court has also recognized a so-called "public duty exception" to this gen- eral proposition. Discussion of this exception is contained in Manson-Osbera v. State, supra, Ste hen & Sonse Inc. v. MunTUP—alitv of Anc Now e, 629 Pe2d 71 tAlasxa an Kuhn v. State, 692 P*2d 261 (Alaska 2984). A seminal case concerning the public duty exception is Northwest (D.C.Alaaka 1972). Reduced to simple language, the "public duty exception" makes an otherwise enforceable indemnity clause unenforceable on the basis of public policy if the ^:r�r5pj� ;i A f Page Two November 19, 1985 claim for which indemnity is sought arises out of duty owed by the indemnitee to the public at large. As stated by the Alaska Supreme Court on a number i of occasions, indemnity clauses are not strange or unique in tnanvIn commaretal anvironmant. tioto n* onnh m7.iicea 1a standard in situations where an entity's liability -may -flow from omissions causally intertwined with the active negli- gence of another entity with hands-on responsibility for work. In the private sector, owners of property upon which work is to be performed by contractors routinely include such provisions in their contracts. In this particular instance, the indemnity issue is clouded to the extent that the City may have duties owed to the public at large. I have not had sufficient time to review Alaska statutes and regulations which might create such a duty. If such a duty exists, indemnification of the City for breaches of that duty would be unenforceable. Conse uenti A it is my opinion that the proposed indemnification clause should con a n City • "noE be agei� na tg c o! th #-X!_i ty- allspaei breach or a an ty owed by I the City to the ublic awe. Any retreat from an n em- ni�iaa't on prove above outlined would be made for I reasons other than legal impermissibility. jI INSURANCE !� I am aware of no Alaska case taking the position 1� that a contract provision requiring specified insurance with ` certain limits and requiring that one party be named as an additional insured with waiver of subrogation on the required insurance is legally impermissible. Such contract provisions are common and do no more than to allocate the insurance expense between the contracting parties. Such provisions have additional value to the extent that the clauses place the ultimate risk of lose upon the insurers and preclude numerous potential claims between the principals to a contract. The expense of risk allocation is accomplished in considered fashion by the agreement to pay premiums rather than established in the event of a claim ;q: ! as a consequence of litigation. Again, the inclusion of an insurance clause is a „ ppropriate. A ry , E Page Three November 19, 1985 i hope that the foregoing meets your needs. Any comments or questions you may have are solicited. very truly(rT y�\cs,� ERR 1 PEASKUR\'L en . AEP/mal i ■ i J i a ..u. A,. . ... . _ _ ­ _ _. - -. _ - - - . . . . waiters & oison, Inc. Box 8064 F insurance Kenai, Ak, 99811 10809 Kenai spur Hwy. Telex 25.249 907.283.8118 September 4, 1985 Tim Rogers City Attorney City of Kenai Kenai, Alaska 99611 Re: Airport Terminal Lease Insurance Clause Dear Tim: Confirming our conversation of August 28, 1985, it is my feeling that the changes requested by the air carriers with respects to the indemnification clause would have a direct impact on the City's airport liability premiums. As you are aware, the City carries a $1,000,000 primary airport liability policy and a $24,000,000 excess liability policy. Copies of your proposed wording for the new leases was forwarded both to the primary underwriter - Insurance Company of North America and Lloyd's - the underwriters of the excess layer. The renewal premiums on both the primary and excess layers were approximately 20% higher then the expiring premiums. These Increases were modest compared to the increases experienced by the balance of the City's policies. Given the present state of the liability insurance marketplace - these increases were exceptional. The stability in price exhibited by the primary in excess airport Liability policies was due to the expiring lease wording, the proposed lease wording, and the lack of claims due to the fact that the city has been able to tender claims on to the responsible parties. It is my belief that the airport represents the greatest catastrophic liability exposure to the City of Kenai. Any weakening in the lease wording could place the City in the position of either assuming or defending claims that it may not be responsible for. The City of Soldotna is presently facing a number of tawsutts arising out of the North Pacific Airline crash near the Soldotna Airport in February, 1985. Due to the defense costs reserved for these claims, the premiums for the Soldotna Airport Liability policies increased by 400%. Had Soldotna been protected by a lease such as yours, the increase in all likolihood would not have been that dramatic. I Y n September 4, 1985 Tim Rogers Page 2 The aviation insurance industry has experienced record losses in 1983. To dote, there have been at least 1,341 people killed in aviation accidents and hull losses are in excess of $319,000,000. This compares to two commercial fatalities in 1984 and hull losses of only $60,000,000. With the majority of commercial Insurance and reinsurance on commercial aviation risks, including airport liability being underwritten by Lloyd's and the London market, it is to your advantage to provide them with adequate contractual protection. -- t would welcome the opportunity to meet with the Kenai City Council in a closed session to discuss this matter at length. Sincerely, Kurt L. Olson ay r i I I ERA HELICOPTERS, INC. W15I WESTHEIMER • SUITE 1000 P 0 BOX 60140 6100 SOU 1H AIRPARK DRIVE HOUSTON, TEXAS 77000 FAIRBANKS, ALASKA 00701 ANCHORAGE. ALASKA W502 TELEPHONE 113021.7800 TELEPHONE 007 452 1838 TELEPHONE W 248.4422 December 13, 1985 PLF.ASF REPLY TOAnchorage Donald H. Boberick, Esq. Reainnnl can„no�� Mr. Robie Strickland Manager, Airports Division Federal Aviation Administration Alaska Region 701 "C" Street, Box 14 Anchorage, Alaska 99513-0087 Res Kenai Airport Lease. Gentlemen: I am responding to Mr. Strickland's letter of December 2, 1985. First, we urge you to reevaluate your tentative conclusion that, as amended in accordance with Mr. Rogers' proposed amond- ment of November 5, 1985, the Lease would no longer be "unfair or unreasonable" under 49 V.S.C. Section 2210(a)(1). (We note in Passing that the question whether the Lease remains "without unjust discrimination" has not yet been addressed.) Second, we ask that you take a fresh look at Northwest Airlines, Inc. v. Alaska Airlines, Inc. 351 F.2d 253 (9th C r. )t we believe this case o ear y horde that, to the extent Kenai seeks excul- pation and indemnity against KenaM ow` ligence, the Lease would be against public policy. _. The Amendment Does Not RemedX The n a rness o e Lease. Once Mr. Rogers' proposed amendment is read in context, it becomes clear that it does next to nothing to ameliorate the unfairness of the original Lease. To this end, we have enclosed for your review and comparison: 1. ERA's proposed amendment of November 1. 2. Mr. Rogers' counterproposed amendment of November S. p 3. A marked copy of Section D. 14. Y a. V - 1 --- - - -- - --- - - - NO WiA= -------- - assssra�■ Donald H. Boberick, Esq. Mr. Robie Strickland Federal Aviation Administration December 13, 1985 Page 2 4. ERA'S letter to Mr. Rogers of November 11. Now, please look at the portion of ERA's amendment that Mr. Rogers did not include in his counterproposal (the third para- graph of SeMon D. 14A). The conclusion is inescapable that Mr. Rogers is still seeking full insurance and indemnity against any of Kenai's own negligence which happens to cause loss or harm in connection with ERA's "loading and offloading of passengers and cargo, taxiing -and flying "-- even though ERA might be blameless. Under Section D.14, ERA would be required to insure and hold the City harmless against "all actions, suits, liabilities, or damages resulting from ... or arising from or out of (ERA's) occupation, or use of the premises demised or privileges granted ...." Mr. Rogers' proposed amendment would somehow limit these obligations to ERA's loading, taxiing and flying operationsi but in no way does the amendment limit ERA's responsibilities when Kenai itself is at fault. See, ee�g�., C.J.M. Construction, Inc. v. Chandler Plumbing. 6 Heaton , Ino., P.2c Waska W. No. 2 , August 5). in his letter of November 14, 1985, to Mr. Kurth of the FAA, Mr. Rogers implies that it was his intent for his amendment to bring the Lease in line with the doctrines of Northwest Airlines, supra, and Kuhn v. State, 692 P.2d 261 (Ak. 1964). we -dB -not see it in the resuTtt but if that was truly his intent, we should not be having any problems. We note that Mr. Rogers has yet to respond to the points we raised in our November 11 letter to him (enclosed). Mr. Rogers' proposed amendment would do very little to alter the basic unfairness of the original Lease, except in the rela- tively minor areas of the parking lot and the ticket counter space. Consequently, the Lease, even if so amended, would remain inconsistent with the "fair and reasonable" requirements of 49 U.S.C. Section 2210(a). II. Federal Case Law Forbids Kenai's Attempts to Exculpate Itself From Its own Negligence. At Mr. Soberick's suggestion, I have reviewed Northwest Airlines, Inc. v. Alaska Airlines, Inc., 351 F.2d 2Yf_Tis C r. 196 5)7(7rNorthwest I" A as a Airlines, Inc. v, Northwest Airlines, Inc., F.' 84 t Cir. 9 ("A�aska")I Nor west Alines, Inc. v. Alaska Airlines, inc., 343 F. upp$� D. Afaska2) ( Nort west II We believe these cases support our consistent position tTiat allocation of re- sponsibility in proportion to degree of fault is the fairest r r. i { J El Donald H. 8oberick, Esq. Mr. Robie Strickland Federal Aviation Administration December 13, 1985 Page 3 approachl we believe Northwest I holds that Kenai may not seek indemnity to the extent lose oor harm is caused by its own negligence: "If, in the orderly course of litigation, it is AP*arfn4" eA *hn* hna"1 4 va"Ca, if Ann , -_ &U- --Lwl&v vac. 'Northwest' was not a proximate cause of the disaster, the indemnity provision may afford an avenue by which it may gain some relief from 'Alaska'. And it is, of course, not to be implied that 'Northwest' is, by this opinion, deprived of any established defenses which Alaskan law affords in actions based upon alleged negligence, nor is it divested of rights of contribution or indemnity which it may have under proper application of general law. We hold only that the exculpatory and indemnity provision, insofar as it is sought to be enforced to spare 'Nort^ wiF—est''from liability for its own negligence, being against public pojAcX and invalid, is unenforceable." 35 Fat 258. Emphasis added.) "Insofar as" should be read the same as "to the extent that"t and, EnUr the more modern doctrines of proportionate fault, Northwest I means that the amount of indemnity an airport operator can recover is limited by the extent loss or harm is caused or contributed to by the airport operator's own proportion- ate fault. These cases involved the crash of an Alaska Airlines airplane in 1961 on Shemya Airfield. The Alaska crewmembers were killed= there were no passengers aboard. Northwest was the operator of the airport, and as such it had extracted from Alaska an indem- nity agreement similar to the one Kenai is seeking. Personal representatives of the crewmembers, precluded by the Workmens' Compensation Act from suing Alaska, sued Northwest. Alaska also sued Northwest for damages to Alaska's airplane. Northwest, in turn, sought indemnity from Alaska. Northwest I held that, if Alaska could prove Northwest negligent, then to that extent, Northwest could not enforce the indemnity provision. Ultimately, Alaska failed to prove a_Y negligence on North- west's part, and the indemnity agreement was given effect. Northwest II, 343 F.Suipp. at 830-31. We have been alerted that some might view the reference to "sole negligence" in Northwest Ii (343 F.Supp. at 830) as somehow altering the holding of Northwest I, above. It does not. First, Northwest Ii was a District Court opinion, and not likely to modify or overrule the 9th Circuit's explicit holding in Donald H. Boberick, Esq. Mr. Robie Strickland Federal Aviation Administration December 13, 1985 Page 4 Northwest I. Second, the District Court's reference to "sole negligence" was preceded by the phrase "Assuming, hypothetically, that Northwest was found to be negligent in a degree failing to constitute the Proximate cause of the accident ...." 3 3 F.Supp. at 830. Emphas s a e .) Northwest was found to be not negligent at all, which has the same effect as not having proximately ca►uoou "sly harm. Ill. Conclusion. Gentlemen, the Kenai Lease remains as unfair and unreason- able as it always was. Northwest I and Kuhn support our position that it violates 49 U.S.C. 2210r377 Very truly yours, f r JBak Birminlgham �r Vice President 6 General Counsel JB/b jc Enclosure ' cos Tim Rogers, Esq. ! Rick Baldwin, Esq. ; r i ANMRAGM INPE=TIONAL AIRPORT AIRLINE OPEAATIM AGREEMeNP AND TERMINAI BUILDIN3 LEASE (DOMESTIC TERMINAL) ARTICLE 10 INDENNIFICATION, INSURANCE, AND SUBROGATION Section 10.01 Indemnification a. ALA= will indemnify, save harmless and defend the mrwr its officers, agents and employees from liability of any nature or kind including costs and expenses for or on acocunt of any► and all legal actions or claims of any character %hatsoever resulting from death or iniury to ww person(s) or dwme to proosrty to the extent caused by any wrongful error, aaissian or negligent act of ALASKA arising cut of this Agreement. b. All liability or costs for legal actions or claims including defense costs resulting from death or injury to any person(s) or damage to pmerty which are caused by the joint negligence of the DOT&PF and ALASKA, arising out of this Agreement will be_apportioned on a comparative fault. basis. Section 10.2 insurance A. DOT&PF will, during the term of this Agreement, procure and maintain comprehensive general liability and fire and extended coverage insurance for the Airport, terminal building, and other DOT&PP facilities at the Airport in such amounts and for such insured coverages as may be reasonably required for the Prudent operation of the AirLwrt. B. ALASKA will, during the term of this Agreement, procure and 53 (DRAFT 9/09/85) I; a ,- I 2ILL- 2 ANMRAGE IMEMATIOM AIRPORT AIRE INE OPERATING AGREDENr AND TEWNRL BUILDIM LEASE (DOWBrIC TERMINAL) maintain liability insurance for Public liability, aviation liability, the leased Premises, property damage, bodily injury and death, with contractual liability endorseront, insuring all of ALASM's operations under this Agreement, • including its Obligations under the indemnity clause in • Section 10-01-of -this Agreement. These policies will be with limits not less than those set forth below. These Wlicies and minimm limits will be consistently atylied to all air carriers with similar operations and will be consis- .tent with Prudent airport 12LW_ta Practices and this Agree' ment. Insurance Coverages Ktnimw Limits Airline/Aircraft/Airport Public Liab&j&ge Art,. :9 Insurance or Equivalent Insurance 10 million per seat with the Ca—Uming minimum limits regardless of seat capacity !13 or cam configurations Ak for Propeller aircraft $10 million W . Ja for jet aircraft $20 Million • ALASKA. will prorptly report to DCT&PF all aircraft and seating - capacities installed and any chances tberefrcm. Based on a maximum seating capacity reported by ALASKA to be installed in the aircraft. C. All policies of insurance must be in a form and Pram a qqVww' satisfactory to DOMPF. Each policy must provide that it May 56 (DRAFT 9/09/85) f •ANMRAOE INPERNATIONML AIRPORT AIRLINE OPERATING AGR=Nr AND TERMINAL. BUILDING LEASE (DOMESTIC TERMINAL) not be cancelled or materially changed during its term without at least 30 days' advance written notice to DOr&PF, I D. A certificate certifying coverage of reduirefl insurance must_ I, be delivered to DOrbPF within 30 days of the effective date of this Agreement. V� E. Where anv such policy has a normal expiration during the term of this Agreement, ALASKA will m-evide a certificate or satisfactory written evidence of continued coverage prior to such expiration. Within 10 days prior to the effective date of any cancellation or reduction in the amounti or extent of insurance coverage, ALASKA will deliver to DOr&PF a certificate cr satisfactory written evidence certifying ccweme that reinstates or otherwise provides at least the re4uired inaasance eaverage. . F. The failure by eithw party at any time to enforce the proviaJ= in this section will not be construed as a waiver of these movisions and will not reduce their obligations under this Agreement. - Section 10.03 Waiver of St6amation. ALASM and DOTWF agree to waive their respective rights of recovers or claim mainst. the other for any loss or damage to the Premises, the terminal building or their contents (excluding aircraft) resultina from fire or other "all-risk" insurable 57 (DRAFT 9/09/85) N 1 I I I , ANCWRAGE INPERMTIOML AIRPORT AIRLINE OPERATING AGREDzNr AMID TERMIM BOILDIM LEASE (DOMESTIC TERMINAL) ProAerty hazards caused by the other. Notwithstanding Section 10.01, anv fire or "all-risk" DrOperty insurance policies carried by either party will include a waiver of subrogation clause waiving anv rights of subrogation against the other My, -to this reament. Section 10.04 Additional Insured ALASKA agrees that every insurance policy required under Section 10.02.8 will include an endorsement eamina wrap as an additional ina mad to the extent of is indemnified interest under Section 10.01. CSection 10.02. river of Subrogation As a separate obligation from. Section 10.01, ALASM agrees that evert insurance policy covering ALASKA's activities at the Airport will include endorsements by ALAM's insurers to waive subroga- tion against DOT&M.3 CSection 10.03. Named Insured As a separate obligation from Section 10.01, ALASKA agrees that every insurance policy issued to ALASKA insuring any property, cperation, liability, or risk from ALASKA's use of the Airport will include an endorsement naming WrWF as a co-insured, additional insured, or named insured for all purposes under the terms of the policies arising out of ALASKA's use, occupancy, or operation at the Airport to the extent that ALASKA is insured.3 58 (DRAT 9/09/85) Ik. C ' •y -'e M ANCHORAGE IWERDATIONAL AIRPORT AIRLINE OPERATING AGREEMENT AND TERMINAL BUILDING LEASE (DOMEMIC TERMINAL) [Section 10.04. Insurance A. ALASKA will obtain the necessary insurance to insure all of ALASKh'e operations at the airport. ALASKA will provide for the extension of insurance coverage to DOT&PF and waiver of subrogation against WrOF to the extent of any primary =c=z = 1 .1.1 W.V mebarift WU 661fa amount any not be less than the ffdnJpw amounts set forth In this Agreatent or required by DOT&PF regulation. B. MASM will purchase and maintain comprehensive public liability, aircraft hull coverage, aviation liability, leaned premises, property damage, bodily injury, and death and vehicle liability insurance in an amount not less than million Per ocawrence. j. C. All Policies of insumnee must be in a form and from a company satisfactory to 0=01. Each policy must provide that it may not be cancelled or materially changed during Its tacm by the insurer without giving at least 30 days advance written notice to Wwr. D. Policies or certificates of required insurance must be delivered to DOT&PF within 30 days of the effective date of this Agreamt. E. At least 30 days before the expiration of any policy of insurance, ALASKA will deliver proof to DOT&PF that the 59 (DRAFT 9/09/85) ----- ------- M ANMIOMM 1NrERMTIONAL AIRPORT AIRLINE OPERATING AORMENr AND TERMINAL BUILDING LEASE (DMMIC TEpMNAL) insurance has been renewed- Within 10 daya after the date Of written notice from the insurer Of eithor cancellation jir` Or a reduction in the amount or extent or insurance coverage, ALAM will deliver to DOT&pF a Policy Or certificate that reinstates Or otherwise jpr.,w(,s the required insurance section 10.05. Notice of claim tt Each MV will give the other party prompt and reasonable notice 06 any claim or acUM InvolLving this Agreement. section 10.06. Insurance Rates AtMK% will not we the Aiqvrt, in any manner that will increase Wr&PF'B inaurance rateg, If ALAM's activities cm the Airport do result in increased Durance costs for I)or&pp, then Dor&pr .I JPay d1arge the increased Cost to ALASM as adiditlonal rent. 60 (DRAFT 9/09/85) 41 j CTIE-DOWII PERMIT Thia Tle-Donn Permit (the "Permit") to leeuod ae of the d4V of 19 by and between T�c"•.,�.112F,A:i QATE'�^ORGUCIi ("Borough") and em&ccoe . For and in consideration of the mutual covenants contained herein, and for other good and valuable consideration. the parties hereto agree ao followat 1. PEP:lIT_ TO 113E SPACE s Borough agrees to permit and: a'T o "PermMe cc use eta -down apace I (the "Space") located at the Ketchikan Intosnationa Airport (the "Airport"). The space shall be used and occupied by Permitted solely for the storage of the following described sircrafts Registration No. (the rera t . or any other similar a rera.c owned or loaned by Permittoo (the "Substitute .,.w.Jr.-• ww.N .. w., A.r�Jw 4.. .Lr.In- .1.. ..-Jrr_.- consent of Borough to ;tore the Substitute Aircraft in the Space. to the event Pemietee is permitted to store a Substitute Aircraft is the Space. all terms, conditions a" provisions of the Permit applicable to the Aircraft sball also be applicable to the Substitute Aircraft. 2. TERMs The rights and privileges conferred by this Perm% shall commune on the day of 19—, and remain in effete until the 19 unless earlier T,Minaead under thecormi of 'ei7i a Permit. In the event Permittes remains in possession beyond the period above provided with the consent of the Borough. this Permit shall continue in affect on the same terms and conditions (except term) from month to month. being automatically renewed at the end of each month unless terminated under the provisions of this Permit. 3. RINTs for use of the Space. Permittse shall ay the Borough. at the address specified in paragraph 07 the amount of Dollars (0 per monc pays e n advance on or a ors the first day ay aoeh serval moth. The amount of rant may be changed from time to time by Borough upon this ey (30) days' prior written aotice to Permitted. 4. E OF THE SPACES The Space shall be used only for e storage of cho Aisaraft. No commercial activity of anykind whatsoever shall be conducted by Perasctea in, ram. on or around the Space. except with the prior written consent of the Airport Manager. No maintenance on the Aircraft @hall be performed within the Space vithout the prior written consent of the Alepo:t Manager except such minor maintenance as would twrsally bo performed by an aircraft owner without the benefit of as aircraft mechanic. Permittee shall take all steps necessary to ensure that the performance of such maiscenaase work shall not damage the Spsoe. P41Smie:se shall control the conduct and demeanor of its employems, invitees, and other persons allowed to be on the Space and of those doing business with Permittes In, on and around the Space and shall take all steps aeaessar+ :0 remove persons whom Borough may, for good and sufficient cause. doom objectionable. Permittee shall keep eba Space clean and free of litter and debris at all times. In utilising the Space. Permittee agrees to and ;lull comply with all applicable ordinances. resolutions. rules and regulations established by the Borough. the airport manager and any federal, state or local governmencal agency. On the termination of this Permit. by expiration or otherwise. Permietes Shall immediately surrender possession of the Space and shell Ltaediacely remove the Aircraft and all other property therefrom, leaving the Sparse in as good a condition as when received. ordinary wear and tear excepted. S. SERVICES PROVIDED BY BOROtlCHS 8oeouRh will Provide anchors or cne purpose of securing the Aircraft to the Space. Parmieeee shall have the sole rospenas.bilicy for securing the Aircraft and the Baroness shall not be reaoonsible In env manner thoretore or any damage, from wind or othoc cause, suffered by the Aircraft. 6- SU5LEASE/ASSTC1-wE4Tr Permittee shall not permit or a ...v any of er Permen to use the Space. or say part thereof. and shall nor assign this Permic. er Any rights thereunder. without the prior written consent of the Airport Msnader. Parking of any air- crat� ww• ...... -r ♦.. ,..ws.►►.w o,►M,e -A• .iDaM 7. HOLD HARMLESS ACID TIMM. ITTY. The BOROUGH. its offieore. amp uyeea an aganea a all not be hold liable for any claime, liabilities, penalties, or fines or for damage to any goods, properties or effects of any person whacaoovar, nor for any personal in)ury or death, caused by or resulting from anv act, error or omission of Permittee, or any of Parmittoe's employees. agents, representatives, contractors, subcontractors. invitoos, guesto, or other persona permitted to be on the Space. arising or relating in any manner to this Permit. or arising or relating in any manner to the use or occupancy of the Space, or the adequacy of the anchors or the Space. and Permittee further aptreas to appear and defend, and to indemnify and save from and harmless the BOROUGH and its officers. employees and agents from and against any of the foregoing claims, liabilities, penalties, fine or damages. and any cost or expense, including attorney's foes, incurred by the BOROUGH. its officers. employees or agents on account oc any scan claims, rsaor.sscsas or matters. B. FORCE MAJEURE. Borough Shall not be liable for failure to perform any term or provision of this Permit. or for any loss. injury or damage of any nature whatsoever resulting therefrom, caused or contributed to by any Act of God, fire, flood. accident. strike, labor diopute, riot, insurrection, war or any ocher cause beyond the reasonable control of the Borough. 9. CONDITION OF PREMISESS Parmittee acknowledges t se nspacce e o Space and the tie -down anchors and accepts the Space and the tie -down anchors in their present condition and that there shall be no obligation on the part of Borough to make any aIterations. improvements or repairs of any kind within or to the Space. Borough expressly disclaims any express or implied warranty of fitness or suitability of the Space for any particular purpose and Parmittas assumes all responsibility for examining the Space, and the anchors, and determining whether such are adequate for the puspcoos intended by Permittee and Borough. its officers and employees shall have no responsibility or liability therefor whatsoever. 10. ppetp U��LT,I (a) This Permit shall be breached It any of Ere following occurs (1) Permittee shall tail to make any rental payment hereunders (2) Permitted defaults in the performance of any term. prevision. condition or covenant herein and such default shall continue for five (S) days alter receipt by Permittaa of notice thereof from Boroughs (3) a patition is filed by or a sinsc Parmittas under the Bankruptcy Act or any amendment thereto (including a ppetition for reorganisation or an arrangements or (4) Psrmittas assigns hie/her/its property for the benefit of creditors. (b) to the event of any breach of this Permit by Permittee. Borough shall have the right. at its option, and without further notice, to immediately terminate this Permit and to remove the Aircraft and an other property of Permitted from the Space. using such force as may be necessary without being deemed guilty of trespass. breach of peace or foresable entry or detainer. and Permitted expressly valves the service of any notice of intent to take such action, and waives all claims and damages of any nature relating to ouch the�ri removal hereto specified shall@ oe the re Borough d eghthe Borough% a right cc pursue any other remedy available to Borough in law or equity. 11. THIRTY ( 0 DAY TEP.MINATTONs Either parev to this Perm c s a eve c e rig i. with or without cause, to terminate this Permit as: anv time by giving not Laos than thirty (30) days' prior written notice thereof to the other party. 12. DISCLAIMER OF LIABILITYr BOROUGH HERESY DtSCLAIXS, PP.ESSLY WAIVES AND RELEASES THE BOROUGH FROM, ANY AND ALL LIABILITY, WHETHER IN CONTRACT OR TORT (INCLUDING STRICT LIABILITY AND NEGLICE)ICE) FOR ANY LOSS. DAMAGE OR INJURY OF ANY NATURE WHATSOEVER SUSTAIN; BY PERMITTEE. ITS OFFICERS. EMPLOYEES. AGENTS, CONTRACTORS. REPRESEIrrATives, INVITEES OR OTHER PERSONS RESULTING OR ARISING FROM THE USE OR OCCUPANCY OF THE SPACE, OR THIS PERMIT. IRCLUDttIG BUT GIOT LIMITED TO ANY LOSS, DAMAGE OR INJURY TO AIRCRAFT OR OTHER PROPERTY OF PERMtTTEE. OR SUCH LOCATED ON, WITHIII OR AROUND THE HERETO EXPRESSLY AGREE THAT UND _ SHALL THE BOROUGH. wOR ANY OFPt( FI a LOT N0. SPACE NO. I NAME: ADDRESS: TELEPHONE: Business Home REVOCABLE AIRCRAPT TIE -DOWN PERMIT MERRILL FIELD MUNICIPAL AIRPORT MUNICIPALITY OF ANCHORAGE The ponies agree as follows: Section 1. Definition$. The following definitions shall apply herein: A, "Municipality" means the Municipality of Anchorage. B. "Permitted' moans C. "Tlo-down Space' means tie -down lot , space , Merrill Plold Airport. Section Z Term.Thls permit shall be effective from the day of 19 until terminated by either party 1n accordance with Section 8. Section 8, Pee. The Permittee shall pay to the Municipality a monthly fee during the term of this permit in the amount ofS_. Such fee shall be paid quarterly and In advance without notice Of demand at the Office of the Airport Manager, Merrill Field, Municipality of Anchorage, Pouch 8450, Anchorage, Alaska 09502.0980. Failure of the Pormltteo to promptly pay In advance shall subject the aircraft to Impoundment In the manner provided of Anchorage Municipal Code 11.60.000, Including the Imposition of Impoundment and at mage fees. Section4. Alroraft Idomllloatlon, The aircraft which the Permittoomay park at thetlo-down apace pursuant to this permit IS described as follows: A. Type: , B. Model: C. Number: , The Permhtoe shall not place or allow another to place any aircraft Other than the one described above at the tie -down space without first presenting proof satisfactory to the Airport Manager that the Permittee owns it and amending this section to reflect such change. Section IL Termination, Either party may terminate this agreement for any reason upon ten days written notice to the other party. Upon termination, the Pormtitee shall receive a prorate refund of the rem paid pursuant to Section & The Permittee shall remove the aircraft from the tie -down space no later than the effective date of termination. Thereafter, the Municipality may remove and store theairaraftattheexpenseof the Permi tee in accordanco with Anchorage Municipal Code 11,60.090. Section0. Llsbtifty. The Parmitteeshall defend, one, hold harmless, and Indemnity the Municipality fromany claim oraction for Injury to persona or property from any cause related to the PermifteWs ussol theftadown space. The Permltleeshall hold the Municipality harmless for any damage sustained to the aircraft parked In thetie•down Space or to any other property of the Permitteeor to the PermNteefrom any cause other then the sole negligence of the Municipality, $Won T. Permitted Use, The Permltlee shall use the 11"awn space for no purpose other than non. commercial storage and parking of aircraft, The Permutes shell not use the tie -down space nor permit another to use thetie•down space for any purpose that may constitute nuisance, fire hazard, at violation of any law, lawful order, rule, or regulation of the Airport Manager. Section a Asslgen"miL This permit may not be assigned and any aftempt by the Permitter to do so shall be Mull and void. lithe Permllfeetransient title to the aircraft described In Section 4, the Municipality shall, upon $quest of the Permlftee, transfer this permit to the parson to whom 1111e of the alrefaft has been transferred, •ovided that the transferee executes a permit for the tie•down space In his name at that 0me, potion 9. 800 use of the Tie -Down Spas The Permlftee shall use the fte-down space In a Salo manner by adequately Securing the aircraft when it is stationary and by moving It to and from lhetla•downspace In Goals manner. Sedan It Judsdletlon. Any clvlf action brought by either party under this permit shall be commended and maintained in the District or Superior Court, Third Judicial District, Anchorage, Alaska, Sedon 11. Inlegratiom This Instrument and all appendices and amendments hereto embody the entire agreement of the parties. There are no promises, terms, conditions or obligations other than those contained �e►ain. and this agreement Shall Supersede all previous comrriunicatione, representations. or agreements, either oral or written, between the parties hereto. Sedan II Compliance with Law. Permittee shall take action pursuant to this permit only In accordance with all applicable statues, Ordinances. rules, regulations and laws and acknowledges in particular the applicability Of Chapter 11.50 of the Anchorage Municipal Code to activiliea at the airport. Dated at Anchorage, Alaska, this - day of t9 MUNICIPALITY OF ANCHORAGE PERMITTEE AIxPOpr MANAe$N Name: y e •..•. . • ri-' :.a^.n. r •._ . _ . : � .. __... .. .._ __ — __. _ __ .__ _ sea. " I KETCHIKAN GhT(1110Y BOROUGH Kotchikan IntornaLLonal Airport ' PL*RMIT AND " PORISIT AARROMI:NT This Permit and Pecmlt Agreement (hereinafter collectively rofarrod to as "Permit"), subjact to review and approval by the State of Alaska, Department of Transportation and Public PacilLtioa !n accordance with Otato Lease is made and ontornd into this day of , 199_, by and . between the KETCHIKAN GATEWAY BOROUGH (hereinafter Warred to as "BOROUGH") whose address is 344 Prent Stroot, Kotchikan, Alanku 99901, and (haroinaftor ruforrad to as "PERMITTEE")► whose address is " .r 1'•_. I Term. Tho term of this Permit is for the period commencing on the day of , .._. 198 , and ending on the 30th day of Juno 1966 _ 9 Y r 2) Ranowal. If the PERMITTEE deeiroe a renewal of this Permit * prior to expiration, PERNITTEE shall make application for renewal to the 80R000H at loaut thirty (30) daya • prior to oxplral;Lon of thLn permit. 3) Part. PERMITTZ2 h•)rr. •yy agrooa to day the sonoUU:) a fee of f . 014J.00 4jr '0.4.a Pt A;za�G. -&A-W amount Ls psyabio upon oxiautLon ar: Lhis VtsrTLt P!.6(511r.M.2. L. I' I c ., rr i i i , 4) Pormittod Une and Acttivltion. The BOROUGIi hereby grants the PERMITTEE authoriaation to PERMITPEE horaby agrees it will not cause or permit any use or activity whatsoever other than the use and activities doocribod heroin. 5) Inaurance. PEHd1MMAC ohall purchase, and maintain at all timoo during ;-.ho farm of thLa Permit, at no coot or aspense to the =10UCH, broad form eomprahonsivo public liability insurance with li.nita of not less than combined single ILmit, insuring against any and all liability with rospcct to operating under the provisions o= this Permit. The EOPOUG.1 shall be named as sn additional insured on all suCh policies. All such polLcLoa ultalL contain a waiver of subrogatioa endorsement as to the BOROUGH, its officers and employees, and ahall contain no self insured retention or doductible in excess of Seven Thousand Five Hundrod Dollars 447,500.0u). The insurance policy hereby required shall Contain an endorsement requiring not less than thirty I30) days prior written notice be provided to the BOROUGH" oofore any termination. Cancellation or material change in the required insurance covoragn. Tito PERMITP2E shall deposit with the Borough Manager a copy of such insurance policy or eertifieato of insurance coverage with appropriate evidence that the promluras thereupon have boon paid. 6) Gen-rral C.ev^nanttF. The Pt::t.:i'PTEE ngroosc 0 A v r ; (a) not to install any structured, facilities, personal propurty or oLhor improvamanta in conjunction with the authorisod use without the prior written Constant of tho Borough Manager. Any structures, facilities, poroonal proporty or other improvomants installed shall be romovod prior to tho expiration of thio PaMlt.. r.t PR:IMT'P•11'tl`0 a nnla nn.nr n.a no coot to cho Bott0U411, the P01WI:TSH ohall provido for all utili:ioo, aorvicos and maintenance ao Lz necessary in con3unatlon with any otructuron, faeilltlos, ;.eoyorty or other ilaprovomonto installad in con; inu'.ian with Lhlo cov-anant. (b) to troop clean and maintnia all aroas exclus!•roly used by PERNI':'1OU or P213t•)I7'PECI a agento, omployogs, ceprauontativos or cunto.noro :n conjunction vith this Permit in a condition acceptable to the Borough P1anagor. (a) to not assign or transfer this Permit without the prior written authorization of the Borough Manager. Any attempted trinofor without ouch consent shall be void and of no Force or effect. (d) to obsorvot obey and comply with any and all applicable rules, rsgulationo, lawn, ordinances, statutes or crdsra o.' any local, otato or federal govornmontal authority lawfully vxercloing authority over the facilitieo. (o) to conduct ill and uualnoso authorized by ;;his Porinl.. :.i ..,a orderly, lawful, cafo, nnu r0416seful r.anu. . - :.,,c :auae ..,ny intor[crcnco Lo FL T ' nn •4� I w ,i other pormittees, tenants, users or occupants of the • _ 1 facilities. �f1 to appear and do►end, and Indemnify and hold the 60ROUGd, Its nfCicner, and cmployoos harmioos from and against any and ill alain;u, costa, and exponso, ineludina nttnrn.w 1 - ...... ch .1 . roauon of any :Lc --r omission of PBR:4I1.9VISt ita OmplOy9Oa, agents, 4C ropresontativos Or tho u3a oe occupancy o: the prc•,orty or areas which ilea .1ha uubjoct c8 ;:hLa ^await. 71 Rulas and Reaulatir.nr.. 'rho 00RCt:-3ci rouarvas the right to adopt, amond and oiiCorc•i reauunable rube and regulationa jo.orni4g "UMI'PTSE's operation under this PormLa. Zxcapt in ca•iJa of ouorgoncy, no rule or regulation, o;::acr t::.t.i as aro provided by ordinance, horoaltor 4do1:'.od cr ,: rsridad by tho BOROUGH shall be ap2licablo to PC AI• M41 until It has boon given ton (10) days notice of tha adoption or amendment thereof. PSMIIT2132 agrees to observe and oboy all such rules and regulations yrovLouoly or in the future adopted or amended by the BOROUGH. 0) Termination. The BOROUGH may cancel this Permit la'mediately for any jLvLation of the terms, covenants and conditions of this Permit. 9) Nona v r. No delay or omission of the right to exorcise any Vowor :,y the BOROUGH shall impair any ouch right or powar, or be conatrwdd ae a waiver of any dafauit or ;,s a::-I:t::ueonco tharoin. Ono or snore waivers ofar.I term or condition of Chia a r A i Permit and nrlruuwant by tho BOROUGH uhall not be conatruod by' the PI:104I'r•1H6 an a walvor of a oubacquont broach of tho uama aovonant, term or condition. The conoant or approval by the BOROUGH to any act by the PURNITUR of a 11.1L•ure requiring consent or approval aht11 L ni,i: 1,3 doomed to waive or render unnecoarary vuru,:u.. or approval of, any rubraquont tAmil.trr unt. 101 d,M. r 1 ! t• •. In any provision of thi3 Parmit in ndjudicatr•: r.,r •r.-i to bo invalid or unonforcvnblo, tho rnr.ainisr, Ur,u:•t.;l ur -Asall rumaln in full :orco and (Ofeact. 11) tja,�tu,r•,q , n�, R �.t rs. •ihn AOROUCR npgcifioally reaervoo tho rljht to ;rant :a atltoro tho rig:lta and privilogoa granLrid to ttla .'::.:•:: • 1:43. Thu r. igbto and privilogaa grantsd to thv tl;:..is,: :» cy :CsLa por:rlit are the only rights and privllal)ws ;granted Lo tho 2EMIITT3» by thlo Permit. The POI:.:iTfNe. has no rlghta or privilogoa, oxproaa or impl.i:,s, other than thoco apecificaily grantad by thla 1+mr,alt•,. 12) Natlan. Any notice, .,rimminrl, requeat, eonuent, approval, or other cormnutAcat:ion that either party doeiroo or is roquirod to r1L-ej Lh the ottsur party or any othor person 0411 bps la writing and olther csorvod poracnally or yrnL :,y prepaid, firet-clana mail to the other yarty aL• dii eddeuan cot forth bolow with a copy thoreof dolLviral to the Borough Airport Manager. E:tbor ;arty .•rry a.s.n: s its nddrodr by notifying ttso other .-arty ui %rangy of dddroaa in ririLing. :tstia� �:::ali W have 5000 1111/ sale and W n . givon whop dollvornd if norved pornonally or upon moll/n9 Lf maLled 411"prov11od in thia noction. i i t LO00URtI I K�Lvlt.::.n 0nLOWIly Borough 344 :'runt Unat hlaflh.a 99901 AdLsuLhrtl Dorod(jh'01121}ar 13) h••oa« to 1! nt.;„ c .r� . :sin vormit i,t, uubloat to the ' proviaLona of t:hn- :lrtan laaoo of law ►� by the UOROU.111 wll tlt ':'io EStaLa of Aiaa;.a raforra,d to on psgo i of ttsi.t "'armit. 19 the rnnator laaaa uxpiroo or y La Lara,inaLA, nt.d ,:ltia POCA t tar.sinatoa as a raault . of ouch oxpiraZion cr tarminatlon of tha maator loaao, ouch of tlse partL,ao ahall Ito ral,.aaoJ from all liabllitios 0111 obiLgationo under thin Permit except for tits poyntotst of rnonoy or darnageu which may havo •. othorwiao accrued prior to arch tormination. 14) enti�.laroAin=. V1.a111,1 130 aeknowLodgou that it hoo coed thLa ontiro Permit, hao fully undorotood tlto provioiona thereof, stoo aatiafiod thorowith, and aigno4 the name of ita own grad will. POVAIT OO further ackno"Ilu,dwo that any prior pormito, oontraatss, prot.tWou , reproaontatlono, or agroomonta batwoon D'Elas'L:Ps;,s u:.t the 3=00011, Ltd offLe3ra, aaa,wblymon, mi wr,-ployoofa, agon••s, and eorvanto, rolating to ,►1 ..u.:tu. tc,s.l ueo and activitiao are heraDf QAtimlu&:,wfd; ti;nro iro no oral or wrk' t;.n P :•� � cam... f r Ir 1 Protnieoe, reprouontatione or agreamonta betmon PRANXIME and the BOROUGH or the poruone above referred to relating to the Permit and the ueee and activitioa porutittud horebi) and that this Permit conntitutoe '.ho wittro and -.>n1y ayr.w:ment boWacln tao BOROOCH anti Pl.wL t; rulat:ing "� tho use and 1 «:Kocutod 43 oe at itatchi?al, 41aulm. AJ) I �• r t r r, 0; s lsi,,t.rt:uru a:: auchorsaeu j ' t tl _.•1 of yarsun sagu ng) ri ATTESTi Goorgianna truth Borough Clark 1C111101,111COGEMMITS STATE; OF ALdulth 71ROT JUDICIAL DISTaic-, .rHZS IS 10 198" bafovu &,11, U.0 4 lily jg t; Wtary LC In an'l nor the ztata 0.4 I.Lau:.." C 11 Od 0 Il'! 'RO'JoilAlly alpoarod DAVIU G. C W mlown to 'ju the I;ocou(jh ;V:na-jr Cj,3r', 9Q.rCIIW;%J j$3p.CjC,j, r. %,niCh azocutod the .1t)OV-) I.. I f ..tgtr-jivj,3Ijtj on oath otatod ,;.,.at thcy ..'aacutzi lastrutmnt affix tho Coeporul:3 uuil3lf eatityl who co ja Moil ll� 04 -1-3 and voluntiWO).7 oil Aatl,ty or the usen And P.Irpejas 'e.11cr2in 3IT%%S3 '117 "n"A ."Irl Pir in tho certL9Lc;A1;j girut -77 Lat)Lrosss (SEAL) cartLgy tha" . I am the Sourot;,tv., of t,ju cqt:p#jrat1on nam-9.1 au PEARITTZO in the 21oregoing rarMiti thAt — I —F who signal said Par-ni .1 :u kiii, 71 t. ;j-d Corvar.:i'LLoh, 4:&a ciwn of aiald Carporationj that said PC'-flLt WA.: qljotj for vad in babal! of said Corporation by authority of its goivarning body and L:; within the GCOP2 of Ltu Corporut.) (Corporate sea!) N m i .• W-W OAi't'UttA'Pl�' ��1uJ u r •!,h08trt•"t1T OTATL OF ALASKA 1 1111it1T JUD1Ci :L Di STRICT i 'Pills U •t0 .....:' 1 'r.::. :ja•r ��:' Zito a:.S.Q r.4 4.i61 :i., c••,_ ""�• — _r .ltl:;Jyrfii:lSn ..rsLail 1)%OauL•ad uo ::iU'1 t •n.! - . •..• —',r �[td ;t)u ;11 ca t.a ho was duly ..uL'i:)rL;vw t t ?gr.5ilt mm.l !:�:: ..AV aorporato opal :ttoc.l':a ��:1 1...1 J;ac;>y';:.Liosl, m.i• L:1At tP.0 0031 O M%t ; s thar:slT. grid ucIftnowladgad L.tat 81 14twj :.r,.,Jly ca:.l voluntuL:y on bohalf of ;sa:rl uorror»tlan ._. ,oe,5�u.:d t':4r:i11^.:t•ru:c:. rry .:n.'s 11s: t, .. i :: i .t :al La.3 :ay and I4r r In LhLa Costl.lJs.".i:3 .:acvs :rl.; .r. c 8t3AL ) SUM 09 ALASAA 1 ➢: 11 FIRST JUDICIAL DISTRICT i TtiiB ID To I bt:•L ': t::3;. •n thLa -lay of 198_, boloru 140, a tso:nry nubllr�, onraonat aanpacrod t:nU-:n ', r '.) •;n.t •tf Cio ;1."Artner-0 ai l..o partnarahip tits 7011e•td I: If, '.,fl'lLn 1+:4trumunt, and acinoalodgod to t;n a"31. ruJ:it +Sfjcui;,?d tho isamo. :8l;AL1 f�. IA m w y "r .. T lr1 STATE OF ALASKA > l Lin 19IR9T JUDICIAL DISPRICT l THIS IO TO CI:RTM that nit I.hl3 doy of , 19 , boforo Ina, the t­•'t, notary P:!blic n nn. for that to of Alnu::o, .10-..1 •:tow-t.:.Lrnstl nnJ +sworn, poroonally anpoarad 1.o lao known to bo tba pereou al »:auurt1•:.I —'n . �....w , t::uout r.: L•ho Ccrngoing Porml t, and nckntr.l •► un/uhfll `::uy t> 1 Tnucl and Gamed the UAIr'.:, I.r:a.l.; ! t!IL+ !:.7ad .ind 4JC1!0,10U tharola mont;tcm:'... :IITSWOU xy ha•: •t Lilo :,a corti:'Lunto abov,, ••r', MAW PurUuant 1a) :.'L':%:'.t +, :ii!, , :4l :i.**.o !if M..u.:o tloraby apgrcv:s r.r .:1. !! — .osGgo:• 7»ralr, :o tarns and cun.litio.•r: t...1: L. the avant the Stn::-1 .,:• id L rr 4.fjU1Wd operation of the : t•ing ttsa t3rm of thLa Permit, t113 aM. �A'it r.'I t i -- ,7,t cl':d • to corduc t the parialttod uaA anti t,ur•::.0 : and uun�act to all o., tho terms and eonditioi.s 'rl: -A `r•_ :11. Car the r5maindor c: tho Powit Term, L::., 3tato of Alaska shall, is such Ovent, be ,)lace nlld at3ad of L•il3 BOROUGH, inuludiIJ7 011 t"Ilt .n.ocvo all aC tho zar&l and conditions Ln thLn P)r.4% L+t "+•, .:Zr';• mannsr, and to the oama extent as could hay.1 ::11: r.�:Y•. t, DATED 611L3 .Iny oz ,trough tl/a Department w,117rtatLais aa,l Public �rIT J si ' f' surR/ STRIP' SECTION 'j �:. 1 T3Pl, RII W S.M. 1 ; ; ./� ,� B�RRON s •. t� / f site / 'i I t01;/I t ;• ;D r t.� •• to' it ! ; j 401 t ; toil // w ..writ! 'IwINv Iu,err • 1 .•wnua (tl11J11 • rot 06*9a uM U6vN'w1c� $uR�N� ?gyp✓ cp 1 LEMA M07RIPTIO►I NOTES 40V'I Lors l,l, s ono I iceI/ON s rlN.RIIW lsr/MA►LO GONr M SHOWN AT A !M Air erCLLOIIo fieVNI/I 18011'r I.0r4 IO'INI[RVAL .ONIA�MG MO AC M/G AID FIeLO SU MV WA! AIAO! rot* OAT! r CITY OF KENAI BORROW SITE NO. I Prtpo,10 rot: CITY Or 0041 PO Bow too Item , AN 90611 Prelo[ea Of MCLOM o d AI/ootolle,Ina. Repilve0 Lana Ru�rogere sol0o►n4, AN Dole !toll II/1101 �j : •' t11L1' "7.in hirrilNi:5CAAi� ),iL , ' t ' 1�I M -M. C• � Suggested bys Administration I CITY OF KENAI ORDINANCE NO, 870-83 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ESTABLISHING A PUBLIC USE EASEMENT ALONG CANDLELIGHT DRIVE EXTENSION THROUGH CITY -OWNED LANDS. r WHEREAS, the City has received a request for a grant of access and maintenance along Candlelight Drive Extension through CiLr-uwnnu Nark nnu rourvaLlun lunde described as Government Lot 39 Section 3, T5N, R11W, SM, and WHEREAS, Candlelight Drive Extension is an existing roadway of h one -quarter mile in length, in not constructed to City i specifications and receives minimal City maintenance, and WHEREAS, said roadway provides the physical, but not legal access, to the adjacent 80 acre tract to the south, and WHEREAS, the Kenai Advisory Planning A Zoning Commission recom- mended that a public use easement be granted along Candlelight Drive Extended at their meeting of May 25, 1983, and WHEREAS, an appropriate easement width of sixty feet would accommodate the existing roadway as well as present and future " utility construction, and WHEREAS, Kenai Municipal Code Sections 22.05.010, 22.05.0209 and ]s]' 22.05.050 require that a public use easement be established by i the City Council by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that a sixty foot public use easement be so- tabliahed along Candlelight Drive Extension through City -owned lands described as Government Lot 3, Section 3, T5N9 R11W, S.M., subject to permission from appropriate federal agencies. Furthermore, the City shall not assume responsibility for the upgrading and maintenance of said easement unless authorized by Council, nor costa of perfecting this easement. PASSED BY THE COUNCIL OF THE CITY OF AI, ALASKA, this 17th day of August, 1983. AL , MAYOR ATTESTs O(_ ' t whelang y erk First Readings June 19 1983 Second Readings August 17, 1963 Effective Dates September 17, 1983 n , , , _ 11 i,_... . 4 � " Box 1022 Kenai, Alaska 99611 August 5, 1985 Mr. Bill Brighton, City Manager City of Kenai 210 Fidalgo Kenai, Alaska 99611 RE: Access to 80 Acres at end of Candlelight Extended Dear Mr. Brighton: Mr. Dick Morgan has advised us that he now holds from the City of Kenai a signed option to lease adjacent land which will encompass Candlelight Extended for purposes of enlarging the 9-hole golf course which is .currently under construction into an 18-hole course. He plans to exercise this option, in the spring of 1987. When Mr. Morgan exercises his option, it will eleminate the access to our property currently provided by Candlelight Extended, and officially granted to us by ordinance 870-83. in conversations with City personnell it has been suggested that the section line be considered our access. This matter was raised prior to the passing of 870-83, and at that time this access was shown to be void as the section line enters the wetlands long before it reaches our property. As we are currently in process of re -designing our subdivision of this property, it is imperative that the question of permanent access be resolved as soon as possible. We appreciate your efforts in expediting this matter. Very truly yours, JiNI W. Burnett 1-7 a 1 , s. 'i. Mr. 6 Mre. W. M. Burnett BOX 1022 , KENAI. ALASKA 00011 December 9, 1985 ,�w�1:tiitta.�. M Mr. Bill Brighton, City Manager City of Kenai {.?►:r;,,. 210 Fidalgo Kenai, Alaska 99611 `~-��=.✓'� RE: Access to 80 Acres at end of Candlelight Extended Dear Bill: I am urging the City once again to address the above delema, and am enclosing a copy of my original August 6th correspondence for your detailed reference. As you know, I have twice sat through Council work sessions waiting for this matter to be considered. I realize the Council has many matters of import to which they must attend in a timely manner, but as the above matter was introduced to the City on August 5th I feel it should retain priority status in the upcoming work session scheduled for December 17th. I appreciate any help you can give in getting this resolved. Very truly yours, Jill 0. Burnett Enclosure y a it Olou Rot. 51 14.9ioc-t 04. ' j r A I W, PO T%e - Q%NtAclo Op (41 nn�.lSECTlUpi .� a�Liv{•' —.4 YIY�`I.1• • ►L'Y►i • Y+7iL 1�Lj��a t5N RIIW S.M. L►'YI 1 1•+':•iiiP•e�•L'•••►AL•1A�yA1••I•LAI p I r p YAj f A �•L�•►•Y •L•L L►LIy1•IL+IL117 LI• {Oor ►yi i.EkIBTING ij 'f, yq M Y•••►+1�• �Y„r��Lv f1�yA j11YI•'IYI�1►il 80RROW r; •4y 1",.'AI► •►•► �►+► ►+' i►•`►i►'••v`4•►PA M r .ilfor r 1 ..S ms IT , NARBX y � N • WArslt 'TAllb,6L Sveyav 4fKN•IaN N PN Oo••ov% UgLVhf10N %/ 8uvsea P•t{� LEON. '�ER!"'WITION GOVr/ L019 l.d,! and 4 9ECFION ! /7N,RIIW 9 N. AK EwLwNG /NE NWI/4 60V'/ LO/ 4 COMING 190 AC• N/L . r. I I. F. Y I • I•A Y•• + • L A •L •1 ♦ Y L•r ;YI I-P�Y•fi�••Y•A•AYI`of ' •AffIL•�1 j►►�A`f1+1Y •• v Y �1'•• YY`IrY••Y Nf A•11 A�• •Y I�LI •YIY� LLY PAAILA j •' 1' +' ' A •••►`•f'`I •' 111'+ILA L I 1'•* 1 1•►Y1•AIAY•LYL•Y4�YA� 1•1�•1. 1�11�' � Any YAIIA:LLI.1 ►A•�,L•A•1►1`IALf L •IA6 ,A \\ IS I Liras• A.Ho ;� Coacrso�iN ARe�► U I �i ��i A9 A9 rr�v BAIL ffflD /// rf •►• ►y,f �/r�K / �•ir r �{rA���� rAt • • • {r. i V A V !g e•••A qf OQ art% ►�, '�h • Ul 1r { r �cr4+r•..yA�1.{ii• ��r+ {r� �• •� A w MARSH K m 1,7 { Lq A w�tca •Iww�t Sucvc• l•ocnnuly ' u PN 0ott oM �,I.RVA� lON %/ 8vvsea ;k%sb, r. LEUI. CEP-MlPrION GOV'T &019 l.t, 3 and 4 9EC LION 3 T 9N, RIM 4 M AN Ej(CLL INO THE NW114 GOV T I.OT 4 ,:ONTA/NG 190 AC M/6 . 1' qbqqj•� r•i �t•aA prtA•/ r•rr•{ / I Jr4r trAAA / / l0I8 I L0I1 / •A••� r1 •,• / / / sit 1•{•r�i{r•1A I 1 / 1 •Arr{A •/ If ` i �.s�•ss o�Ti'o�l � P61LW Ab ' • ter:-�-sx��.�_..:�, _ yI 1.4— -.3 q_____:. WA/i1{'�pl!1/ SWVr �' I.IK hfINN 1 11 w f'11 ��+•�n �.LfvNfl�N ' A I IFoA. � O Ra� ' S 1 I f I I' t Oo •,�� 6w01011I.r.�oi NoT s"N ux-fCA Gspt i�s'tt {V , X" u rHQ'*B HAL �'�.QUAI:� TY BUILDERS RESIDENTIAL • COMMERCIAL • APARTMENTS 110 SOUTH WILLOW, SUITE 106 • P.O. BOX 2829, KENAI, ALASKA 09811 • (007) 203.7012 C September 11, 1985 City of Kenai 210 Fidalgo Street Kenai, AK 99611 Gentlement I would like to initiate purchase of the property to the east of Lot Three, Baron Park Subdivision. This lot would contain approzimately 163,145 square feet. Attached is an approximate plat of the area. I am enclosing a check for $500.00 as earnest money on said purchase. Please contact my office at 283-4659 if there is need nor more information. Sincerely, Clint D. Hall ' r h .I •~ I8401 If1 1 nra s1 � '�• i I all TRACT 1 MAOIC AV/ d _ al VIP j �t M1 TI IF lot • }}}}}fit� , r - 1 / ,NAp'7•Y � • Jal ,t0 _ - ii ��� •fin , /�' 4f,o 1�N � -r �.. iAal{ � p .•{.rl -. PAO • OAO!trH-61 "ss,, tir•+1�P {/,s' ,r jt' ,r�{tj`�r'+•il'�{ ,•tt i NO ' G150 � 1 rj+� +• /r !i• r /r /r �!t /,+J+.;' nno•. Iln TN ..r!,:wl oo1 �• eu:. No ofto 64 It, tic SPUR HWY � I - ,6a frrhH'� a � 1 ON/ ,ll1pN1 r Iia L;. i • r r I I ME � ip r V`t�•'• �'.� j•i.,' w.:''. � � ' . r. ,fit,... : I. 1 41 lid ..r i •:.'; , •.:'::.!. 1 � ; � It . , ,1d r; •;• i,r' Aid �!' �s `,- , � ,.+rtffi^� •}, 4 � 1 • . rA �4 "'��i� .jst�' •;�xi';a'' r.,� �i 1.,:St y '.. �,� .� j+� F .';pj'��y �`�cT r ' i ;�I . N'� y�yr r"Y, 1 • :� , [r �� •li�'i '.. ,,. •C • •' 4 7. r L.(^� �`Y� t ! i �j."rri•i'".• •'' I'A ii +r .. ' � ® r,�' ,F� 0 ,; �',�• �'i �'�. Y�'�, 1• (a] 'r •. , Fi r � .iq �, , • , Q4� �riti...�' ! r, r - ern , . ,. • ; �``'� ' , ;r� At- rl � • 1�• •• y • e+ � / .,4j �ti ,tip � � • � j. . ;: Id f S• i'!�• .gip : lr � . • 8' • 66 ; y +In , IS q,, •' 3 --' ----_ •4 . • .. a,a �. I • • b ',���•� 1, � •� �� I 1 ---- — — ---- -- — — ---- - - - • CITY OF KENAI �.., %Od G?ajadad a/ 4" • . _ _.. 210 PIDAL00 KINAI, ALASKA 00611 TELEPHONE 263. 7636 December 3, 1985 Mr. Ron Kasprisin Kasprisin Design Group 2510 Fairview Avenue East Seattle, Washington 96102 Dear Rons The Council has directed that I request from you a copy of the Snohomish study that you did in Washington. In addition, any resulting acts taken by the group for whom the study was done in order to initiate implementation of the study. Obviously, the reason for the Council's request is to see if there are any elements that could be utilized by Kenai in trying to initiate the development of Kenai's old town that your firm did for us. Sincerely, W Wm.VSFrin� City Manager WJB/dg t lr „tea. -- - - �,.r;,, _ , .�. +i • ) , - -r• -- -- —NNW CITY OF KENAI 210 ROALOO KENAI, ALA8KA NGII TELEPHON8263.7635 December 3, 1985 Me, Judith E. Bittner Chief of History and Archeology Department of Natural Resources Division of Parks and Outdoor Recreation Office of History and Archeology 3601 C Street, Pouch 7001 Anchorage, Alaska 99501 Dear Me. Bittner: The City of Kenai hired the Kaeprisin Design Group, Architects and Urban Planners, whose address is 2510 Fairview Avenue East, Seattle, Weehington, as consultants to take a look at whet is commonly referred to as "Old Town” in Kenai, Alaska for the purpose of doing a design or providing the City with information on rehabbing said site. In addition, to identify historical landmarke for the purpose of preservation and to recommend lend uses that would be advantageous to the area. That study hoe been done and a copy of the development options have been provided to the City. The Council hoe requested that I contact you for the purpose of determining whether you end/or your department could provide advice, information or money in the City's effort to restore Old Towri in Kenai, Alaska. It would also be important to us in Kenai if you could provide us with the names of federal agencies that might be interested in the type of project that we have underway In Kenai. Enclosed please find a copy of the document prepared by the Kaspriain Design Group. Sincerely, k4 Wm. Brig n City Manager WJB/dg Enclosure IE Y w NMM�� CITY OF KENAI „ad edpdal 4 4iadla,- 210 PIOAL40 KENA1, ALASKA UNI TBLSPNCNB 263. Ml � December 3, 1985 Mr. David H. Brenerman, Mayor City of Portland 369 Congress Street Portland, Maine 04101 Dear Mayors Some members of the Kenai, Alaska City Council have requested that I investigate a program you have introduced into Portland, i.e., "City improvements Through Private Citizen Donations". We in Kenai would certainly be appreciative if you could send us the fundamental details of the aforementioned program along with any brochures, rules and regulations that you have put together for the purpose of implementing your program. Sincerely, Wm. Brig on City Manager _-.._ WJ8/dg i j. r h i a J a COUNCIL MEETING • /2 PLEASE REGISTER: (10 minutes per person) NAME ADDRESS 7�k �� Qo< �p4r-y- make'", Q GJkAm 4 F t r r r S. . i F F c f r� i r i •r I �9 . / - �6., lja,:O" , ` 11