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Airport Advisory Board August 21,2001 Page 3 eighteen (18) months. Should the lease provide for ground lease payments? Ground lease payments or payments made for lease of the ground on which the improvement is located. Council accepted the Advisory Board's recommendation that a ground lease payment of $.12 per square foot per year, adjusted every five years with a Consumer Price Index Adjustment. Should the lease place the burden for taxes, if any taxes are due, on the hangar tenant? The Advisory Board made no recommendation on this matter. The City Council voted that taxes will be on the tenant should there be any. How much and what insurance should be required? The city's form lease requires $250,000 personal injury, $500,000 event, $100,000 property damage coverage in each policy. The question is whether or not more extensive insurance coverage, including fire and casualty insurance on the actual hangar should be an obligation of the tenant. The Board had recommended that the current requirement of general liability insurance be continued. However, the Advisory Board took the position that requiring fire or casualty insurance of the tenant to the benefit of the City as a co-insured, should not be a requirement of the lease. The board had further recommended that the City should be responsible for obtaining its own insurance for this particular purpose. The City Council voted that each tenant pay their own insurance on the hangar at replacement cost value so the City will be covered on Fire and Extended Coverage. Council vote on size of Airport Advisory Board. Mr. Haynes reported that the City Council voted to increase the size of the Airport Advisory Board from seven (7) to nine (9) members. This will not take place until a resolution is passed by City Council and that