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City Council Meeting <br />August 13, 2001 <br />Page 20 <br />City Attorney Schenk told the City Council that the next issue for consideration <br />was whether the lease should place the burden for taxes, if any taxes are due, <br />on the hangar tenant. He advised that the current policy is silent on the issue <br />of who would be responsible for taxes, if any taxes are determined to be due. <br />The City Attorney advised that other cities said, if there are ever taxes to be <br />paid, the tenant pays the taxes, and the Board made no recommendation. City <br />Attorney Schenk advised that it was his recommendation that this needs to be <br />a provision of the lease. <br />After discussion, a motion was made by Mayor Pro Tem Manning that, in <br />accordance with the results of the survey, that if there are ever taxes to be paid, <br />the tenant pays the taxes. The motion was seconded by Councilman Bell and <br />carried 7 ayes, 0 nays. <br />City Attorney Schenk advised that the next question was on insurance, stating <br />that the current lease requires $250,000.00 personal injury, $500,000.00 event, <br />$100,000.00 property damage coverage in each policy. The question is <br />whether or not more extensive insurance coverage, including fire and casualty <br />insurance on the actual hangar, should be an obligation of the tenant. He said <br />at this time there is no requirement that a tenant carry fire and casualty <br />insurance on the hangar especially for the benefit of the City of Paris. The <br />Airport Advisory Board recommended that the current requirement of general <br />liability be continued, and the Board took the position that requiring fire and <br />casualty insurance of the tenant for the benefit of the city as a co-insured should <br />not be a requirement of the lease, and further recommended that the city should <br />be responsible for obtaining its own insurance for this particular purpose. He <br />said there is a letter in the packet regarding insurance if the city has to opt for <br />it, but the board took the position that it should be covered by the city. <br />After discussion, a motion was made by Mayor Pro Tem Manning that the <br />tenant pays their own insurance at replacement value and the city will be <br />covered with the minimum amount on the hangar for basic fire and casualty <br />insurance. The motion was seconded by Councilman Carter and carried 7 <br />