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HomeMy WebLinkAboutC-2133 - Police Helicopter Maintenance_4 CITY OF NEWPORT BEACH POLICE DEPARTMENT December 1, 1989 TO: FROM: SUBJECT City Manager Police Department HELICOPTER MAINTENANCE CONTRACT 0— zi3 cf - CGU;NC E AGENDA F -3(c) DEC 1 1 1989 This is to recommend that the City terminate the helicopter maintenance contract with Tallmantz Aviation on December 18, 1989, and enter into a contract with San Diego, Helicopter (maintenance) and South Coast Hangar (hangar facilities). Our present contract with Tallmantz is due to terminate on December 18, 1989. Since 1971, the City has contracted with Tallmantz Aviation for helicopter maintenance. Until recently, the police department has been largely satisfied with the quality and timeliness of the maintenance. In February of this year, Tallmantz filed for bankruptcy. There have been a series of contract violations and parts availability problems that have had a negative impact on our helicopter program. In addition, Tallmantz Aviation entered into bankruptcy (Chapter 11) in February and is now in Chapter 7. The above recommended change will provide the City with a viable service, in- cluding a contract and cost savings superior to our contract with Tallmantz. The City helicopters fly an average of 3,200 hours a year. If Tallmantz were to continue to provide services, their fee for the 1990 -91 fiscal year would cost $538,112.00. The cost for contracting with San Diego Helicopter /South Coast Hangar for the same period would be $468,152.00. This is a net savings of approximately $70,000.00 annually. The 1989 -90 fiscal year helicopter budget is $490,000.00, with a present balance of $231,476.00. The projected cost for remaining with Tallmantz through this fiscal year is $203,000.00. The projection for contracts with San Diego Helicopter /South Coast for the same period is $198,687.00. This would include the purchase of the necessary tools and equipment to set up the maintenance shop within the hangar as well as the purchase of a portable office module. The tools, equipment, and office module would be the property of the City. The $198,687.00 cost breakdown is approximated as follows: Tallmantz billings December 1st through 18th- $13,500.00; South Coast Hangar rental - $16,170.00; electric bill - $700.00; fuel and oil- $39,998.00; scheduled parts replacement - $12,646.00; maintenance contract - $63,873.00; shop tools and equipment - $35,000.00; portable office module - $15,000.00. l% %, 4.9 Page 2 City Manager HELICOPTER CONTRACT CIO The South Coast Hangar is located near Campus and Bristol at the southeast quadrant of the Orange County Airport. The hangar was constructed eight years ago and is in excellent condition. The City will be the sole tenant, and only City owned aircraft will be housed and maintained at the hangar. San Diego Heli- copter will do all the maintenance at the hangar. The company mechanics have many years of experience in working on the type of helicopters the City uses. San Diego Helicopter is fully insured and maintains an excellent reputation within the industry. The proposed change will result in improved service to the City, in addition to an annual cost savings. 4� al� A. Villa, Captain Patrol Division Commander aEW�R, NEWPORT BEACH POLICE DEPARTMENT o� P.O. BOX 7000. NEWPORT BEACH, CA 92658 -7000 ` (714) 644 -3724 / /cO PM October 18, 1989 Mr. Charles C. Seven President, Tallmantz Aviation John Wayne Airport 19461 Airport Way South Santa Ana, CA 92707 -5288 Re: Helicopter Maintenance Agreement - Notice of Termination Dear Mr. Seven, APB CAMPBELL Chief of Police This letter constitutes written notice of the City's intention to terminate the Heli- copter Maintenance Agreement on November 18, 1989. This notice is given pursuant to the provisions of Paragraph 5 of the Helicopter Maintenance Agreement and should not be considered a waiver of any right to terminate the Agreement in the event of a material breach occurring prior to the effective date of termination. The Helicopter Maintenance Agreement requires the City to pay Tallmantz for actual work performed prior to the date of termination and requires Tallmantz to return "all parts purchased and money set aside for engine overhaul and replacement of limited life items that have not been committed as of the date of termination..." The City intends to comply with the spirit and letter of this provision. We expect Tallmantz to do the same. We are in the process of computing the "TBO" monies that should have been set aside pursuant to the Agreement and will provide you with those figures as soon as available. The City is also evaluating the extent to which TBO funds should have been paid to the City when helicopters crashed and were replaced by new equipment. In our opinion, TBO funds accumulated in anticipation of major repairs to airships destroyed in crashes should have been paid to the City or, at the very least, shown as a credit against the cost of repair of the replacement helicopter. Again, we will provide you with figures once they are available. We regret the need to take this action and appreciate the service you have provided over the years. Very trul urs, Arb Campbell Chief of Police 870 Santa Barbara Drive. Newport Beoch NEWP04EACH POLICE DEPARTMENT P.O. BOX 7000. NEWPORT BEACH. CA 92658 -7000 (714) 644 -3701 Mr. Charles C. Seven President, Tallmantz Aviation John Wayne Airport 19461 Airport Way South Santa Ana, CA 92707 -5288 November 17, 1989 C -2- /33 ARB CAMPBELL Chief of Police Re: Extension of Termination Date for Helicopter Maintenance Agreement Dear Mr. Seven: By this letter reference is made to the 1988 Helicopter Maintenance Agreement between Tallmantz Aviation, Inc. and the City of Newport Beach for the storage, service, maintenance and inspection of the City's helicopters, (the "Agreement ".) Pursuant to that Agreement, the City, through its Chief of Police, gave Notice on October 18, 1989 of its intent to terminate the Agreement effective November 18, 1989. Due to changed circumstances, the City wishes to continue to store its .helicopters and receive service and maintenance from Tallmantz for an additional thirty (30) days. You have agreed to the thirty (30) day extension. This letter will serve to memorialize your agreement that the effective date of termination of the Helicopter Maintenance Agreement is extended an additional thirty (30) days to and including December 18, 1989. The extension shall be pursuant to the terms and conditions of the Agreement and by this extension the City has not waived its rights under the Agreement including the need for an evaluation and accounting of "TBO Monies." If you agree to the foregoing, please indicate such agreement in the signature block indicated below. qHelic ours, -z� Yo e r Sec io n Sergeant DJY /mll � n / The undersigned, on this � day of November, 1989, agrees to the foregoing. TALLMANTZ AVIATION, INC. Charles C.-_�Rtven, President R' 870 Santa Barbara Drive, Newport Beach * , 0 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 (714) 644 -3005 7 TO: FINANCE DIRECTOR FROM: CITY CLERK DATE: November 21, 1988 SUBJECT: Contract No. C -2133 Description of Contract Helicopter Maintenance Agreement Effective date of Contract November 17, 1988 Authorized by Minute Action, approved on November 14, 1988 Contract with TALLMANTZ Address Tallmantz Aviation, Inc. John Wayne Airport Santa Ana, CA 92702 Amount of Contract (See Agreement) s 4e Wanda E. Raggio City Clerk WER:pm Attachment 3300 Newport Boulevard, Newport Beach October 25, 1988 i City of Newport Beach Police Department TO: City Manager FROM: Chief of Police 0 SUBJECT: HELICOPTER MAINTENANCE CONTRACT r 1 -j1 (OUNCII AGENDA N0,--jr = 3 _�fo — G � � ': .1(Y CUAGIL CITY 01 WEYI'PORT HAD" NOV 14 1988 Since 1970, NBPD has contracted with Tallmantz Aviation at Orange County Airport for helicopter maintenance services. Tallmantz remains the most appropriate vendor for these services, and provides similar services to the Costa Mesa Police Department, the Anaheim Police Department, and the Orange County Sheriffs Department. The City last signed a contract with Tallmantz Aviation in 1981. There have been agreed -upon price increases since, but the contract provisions have remained unchanged. However, a recent review by this department indicated the need for an updating of provisions and formalization of existing practices. These changes are outlined below: 1. The contract price for hourly T.B.O. maintenance remains at the current $79.95 for the 300C, and $129.00 for the 500D. The price is set for the contract period 10 -1 -88 through 9- 30 -90. 2. In past years, hanger space, provision of supplies for helicopter washing, and officer and locker space for the flight crews have been custom and practice, but not specified in the contract. The new contract makes these explicit. 3. The hours during which Tallmantz has a mechanic on duty have changed during the years. The new contract incorporates the current, agreed upon hours: 1000 -1930 on Tuesday, Wednesday, and Thursday, and 1000 -0300 on Friday, Saturday, Sunday, and Monday. It also specifies a one -hour response time should maintenance be required outside those hours. 4. An 11% discount on fuel and a 10% discount on parts not included in the hourly rate is added as a new provision. City Manager Helicopter Maintenance Contract Page 2 5. The City purchased the Hughes 500C, a turbine helicopter, in 1987. The descriptions of items covered in TBO maintenance were enlarged to include the 500C. 6. Liability and insurance provisions were somewhat incomplete in the earlier contract. The new contract has added additional provisions in these areas as suggested by the City Attorney. I recommend the City approve the new contract. r (� #s Arb Campbell Chief of Police Z 4 . • ADDENDUM I 4. ADDITIONAL SERVICES NOT COVERED UNDER HOURLY RATE: B. (To be added) Allison 150 -C20B Engine Overhauls: • Due to the high cost of replacement parts that can be damaged by foreign object debris (FOD), and poor pilot techniques such as overtemp, excessive torques, etc., it is necessary for us to limit our liability or expense to what is considered a normal or average overhaul based on industry standards. Those parts that would need replacement, other than what would be normal, would be done at the customer's expense. In such cases, where additional expense would be incurred, the customer will be notified for an evaluation and approval prior to proceeding with the overhaul. We reserve the right to use the overhaul facility of our choice with customer approval. C. (To be added) Map case and plastic on instrument cover and panel. 12. INVOICING: Payment is due upon receipt of invoice. Where reference is made to TALLMANTZ throughout this contract, the legal entity of contractor is ORANGE AVIATIO14 INC., dba TALLMANTZ AVIATION. HELICOPTER MAINTENANCE AGREEMENT ( "- 21-35 THIS AGREEMENT, entered into this day i; of , 1988, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "CITY ", and TALLMANTZ AVIATION, INC., a California Corporation, hereinafter referred to as "TALLMANTZ ", is made with reference to the following: See Addendum I RECITALS• WHEREAS, CITY has two (2) helicopters (hereinafter "aircraft "), one manufactured by McDonnell Douglas (500D) and the other manufactured by Hughes (300c), used in connection with its police and law enforcement facilities, said helicopters bearing United States Registration numbers N5283C and N9627F and bearing serial numbers 1192D and 900040, respectively; and WHEREAS, CITY desires to have said aircraft serviced, maintained, and inspected in accordance with Federal Aviation Administration (FAA) regulations and manufacturer's recommendations and requirements; and WHEREAS, TALLMANTZ is equipped to perform the services as set forth in this Agreement, and desires to do so; and WHEREAS, the parties hereto desire to set forth their rights, duties, and liabilities hereunder; NOW, THEREFORE, for and in consideration of the covenants herein contained, performed, and to be performed, the parties hereto agree as follows: 1. TERM: The term of this Agreement shall commence on the first day of October 198 8 , and shall terminate on the last day of September 19 go, unless terminated earlier as set forth herein. 2. PAYMENT FOR SERVICES: The price to be paid to TALLMANTZ for the services to be performed hereunder shall be as follows: MD500 Models: $129.00 or $135.66 per hour (as applicable) Schweizer 30OC: $79.95 or $84.07 per hour (as applicable) The lower rates would apply if the total hours flown for that billing month are equal to or in excess of 250 combined total 1 hours flown. Conversely, if combined total hours flown are less than 250 hours, the higher rates would apply. 3. SERVICES TO BE PERFORMED BY TALLMANTZ: For, and in consideration of, the payment of the hourly rate paid by CITY to TALLMANTZ, TALLMANTZ agrees to perform the following services: A. Scheduled and on- condition service, maintenance and inspections, to be performed at McDonnell Douglas factory - recommended intervals and times and in compliance with F.A.A. regulations (based on flight hours recorded from aircraft "Hobbs" meters at the end of each month), including the following: 1. All "finite life" time change components replaced /overhauled per H.M.I. (Hughes Maintenance Instructions). 2. All components replaced /overhauled "on condition" per H.M.I. Scheduled services will be performed at the contractor's facilities. On -site field repairs shall be made when necessary to keep the aircraft operational, or when repairs are required before the aircraft can be flown. The ferry time to and from TALLMANTZ may be performed by CITY personnel. B. Replacement parts needed pursuant to manufacturer's maintenance criteria or F.A.A. regulations, or as a result of ordinary wear and tear. This shall include any and all hardware, special oils or lubricants, hydraulic fluids, tail rotor boots, main rotor boots, tail rotor bumpers, bearings, tang washers, lockwashers, seals, gaskets, packings, O- rings, snap plugs, cables, springs, shims, spacers, small roller bearings, connectors, switches, motors, NAS and MS fittings and cables, fabric ducts, fuses, instrument console part, rotating beacon supports, and V -belt inspection covers. C. Indoor, lighted facilities for storage of the CITY'S helicopters and for performance of scheduled and unscheduled maintenance. 2 9 0 D. Helicopter take -off and landing facilities constructed and maintained in compliance with county, state, and federal regulations. E. Facilities, supplies, and equipment to clean, wash, and wax each helicopter once a week. F. Aircrew member locker room for seven (7) persons, flight lounge for two (2) persons, office for four (4) persons, restroom and shower facilities, and adjacent parking space for three (3) vehicles. 4. ADDITIONAL SERVICES NOT COVERED UNDER HOURLY RATE: TALLMANTZ also agrees to provide the following services to be charged as invoiced in addition to the hourly rate: Unscheduled repair service as needed, (all parts replaced as a result of other than "normal" use or "industry standard" wear, unless caused by TALLMANTZ, including the following: A. All items that go short of expected TBO (Time Before overhaul) or finite life based on manufacturer's recommendations. B. Damage to equipment incurred by owner /operator due to accidental breakage or misuse. See Addendum I C. Airworthiness directive notes, avionics equipment, and miscellaneous equipment not essential to aircraft operation, including furnishings such as seat webbings, interior trim, fire extinguisher, first aid kits, carpets, and searchlight bulbs. See Addendum I D. Mandatory factory service notices, gyro instruments such as Altitude or Directional Indicators and optional equipment added to helicopters not previously agreed upon prior to contract agreement. E. Paint on the airframe with the exception of minor touch -up, and repainting of components due to time change. 5. ADDITIONAL PROVISIONS AND REOUIREMENTS: TALLMANTZ agrees to be bound by the following provisions and requirements: A. Scheduled and unscheduled maintenance services shall be available twenty four (24) hours per day, seven (7) days a week, with a maximum call -back response time of one (1) hour. A 3 9 0 mechanic shall be on -site 1000 - 1930 hours on Tuesday, Wednesday, and Thursday and 1000 - 0300 hours on Friday, Saturday, Sunday, and Monday. B. TALLMANTZ shall have necessary factory approved parts on hand and the necessary manpower to maintain at least one (1) helicopter flyable at all times. C. TALLMANTZ shall be equipped with all the proper tools and equipment necessary to perform all servicing, inspections, and maintenance in compliance with factory directives and recommendations. When applicable, such tools and equipment shall be those prescribed by the aircraft manufacturer. D. Fuel will be provided twenty -four (24) hours a day at eleven (11 %) percent below posted retail price. E. Parts not included in Section 3 above will be offered at a ten percent (10 %) discount off manufacturer's list price. F. In the event that this Agreement is terminated by either party, TALLMANTZ shall return to CITY all parts purchased and monies set aside for engine overhaul and replacement of limited life items that have not been committed as of the date of termination, and CITY shall pay TALLMANTZ for the actual work satisfactorily performed to the date of termination. 6. STANDARD OF CARE: TALLMANTZ agrees to perform all services hereunder in a manner commensurate with the community professional standards and agrees that all services shall be performed by qualified and experienced personnel who are not employed by CITY nor have any contractual relationship with CITY. 7. INDEPENDENT PARTIES: CITY and TALLMANTZ intend that the relation between them created by this Agreement is that of employer- independent contractor. The manner and means of conducting the work are under the control of TALLMANTZ, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of TALLMANTZ'S services. None of the 4 • benefits provided by CITY to its employees, including but not limited to unemployment insurance, workers' compensation plans, vacation and sick leave are available from CITY to TALLMANTZ, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer - employee relationship from any fees due TALLMANTZ. Payments of the above items, if required, are the responsibility of TALLMANTZ. 8. AMENDMENT: The terms of this Agreement can only be amended by written Agreement between the parties thereto. 9. GOVERNING LAW: This Agreement shall be governed by the laws of the State of California. If any portion of this Agreement is held invalid under applicable statute or rule of law, then such portion only shall be deemed invalid. 10. ADHERENCE TO SAFETY RULES: TALLMANTZ warrants that all work done under this Agreement will be in strict compliance with all applicable safety rules, laws, statutes, and practices, including but not limited to CAL /OSHA regulations. 11. REPRESENTATIVE OF CITY: The police chief, or his or her designated representative, shall represent CITY in all matters pertaining to the services to be rendered under this Agreement. 12. INVOICING: It is understood and agreed by and between the parties hereto that TALLMANTZ shall base its billing on the agreed hourly rates multiplied by the time recorded from engine instruments within the above numbered aircraft, and CITY shall be invoiced monthly. See Addendum I 13. INSURANCE: On or before the commencement of the term of this Agreement, TALLMANTZ shall furnish CITY with certificates showing the type, amount, class of operations covered, effective dates and 0 0 dates of expiration of insurance coverage in compliance with paragraphs 13A, B, C and D. Such certificates, which do not limit TALLMANTZ'S indemnification, shall also contain substantially the following statement: "Should any of the above insurance covered by this certificate be cancelled or coverage reduced before the expiration date thereof, the insurer afforded coverage shall provide thirty (30) days' advance notice to the City of Newport Beach by certified mail, Attention: Police Chief." It is agreed that TALLMANTZ shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to CITY and licensed to do insurance business in the State of California. A. COVERAGE: TALLMANTZ shall maintain the following insurance coverage: (1) Worker's Compensation: Statutory coverage as required by the State of California. Combined single limit policy with aggregate limits in the amount of $5,000,000. B. SUBROGATION WAIVER: TALLMANTZ agrees that in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, that TALLMANTZ shall look solely to its insurance for recovery. TALLMANTZ hereby grants to CITY, on behalf of any insurer providing comprehensive general and automotive liability insurance to either TALLMANTZ or CITY with respect to the services of TALLMANTZ herein, a waiver of any right of subrogation which any such insurer of said TALLMANTZ may acquire against CITY by virtue of the payment of any loss under such insurance. C. FAILURE TO SECURE: If TALLMANTZ at any time during the term hereof should fail to secure or maintain the foregoing insurance, CITY R 0 0 shall be permitted to obtain such insurance in TALLMANTZ'S name or as an agent of TALLMANTZ and shall be compensated by TALLMANTZ for the costs of the insurance premiums at the maximum rate permitted by law computed from the date written notice is received that the premiums have been paid. D. ADDITIONAL INSURED: CITY, its City Council, boards and commissions, officers, and employees shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. 14. HOLD HARMLESS: TALLMANTZ shall indemnify and hold harmless CITY, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit arising from or in any manner connected to TALLMANTZ'S negligent performance of services or work conducted or performed pursuant to this Agreement. TALLMANTZ shall indemnify and hold harmless CITY, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees accruing or resulting to any and all persons, firms, or corporations furnishing or supplying work, services, materials, equipment or supplies arising from or in any manner connected to 7 TALLMANTZ'S negligent performance of services or work conducted or performed pursuant to this Agreement. 15. PURCHASE OF ADDITIONAL AIRCRAFT /REPLACEMENT OF EXISTING: Should CITY acquire any aircraft not described in this Agreement, either as a replacement for aircraft described above, or to provide additional service, all of the terms and conditions of this Agreement shall apply to that aircraft at such time as CITY notifies TALLMANTZ of delivery of the aircraft. With respect to any aircraft replaced by CITY, all rights and duties of each of the parties to this Agreement shall cease at such time as notice of delivery of the replacement aircraft is given to TALLMANTZ. 16. REPRESENTATIONS OF CONTINUED OWNERSHIP: It is understood and agreed that by entering into this Agreement CITY makes no representation to TALLMANTZ that it will continue, during the term of this Agreement, or any extended term, to own or use one or both of the aircraft described above, or any replacement thereof, and it is further understood that CITY reserves the right to temporarily or permanently discontinue the use of the aircraft without thereby incurring any liability under this Agreement. 17. PERMITS AND LICENSES: TALLMANTZ, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses and certificates that may be required in connection with the performance of services hereunder. 18. RECORDS: TALLMANTZ shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by CITY that relate to the performance of services under this Agreement. TALLMANTZ shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. TALLMANTZ shall provide free access to the 3 representatives of CITY or its designees at all proper times to such books and records, and gives CITY the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of final payment. 19. TERMINATION: In the event TALLMANTZ hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, TALLMANTZ shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days after receipt by TALLMANTZ from CITY of written notice of default, specifying the nature of such default and the steps necessary to cure such default, CITY may terminate the Agreement forthwith by giving to TALLMANTZ written notice thereof. 20. COST OF LITIGATION: If any legal action is necessary to enforce any provision hereof or for damages by reason for an alleged breach of any provisions of this Agreement, the prevailing party shall be entitled to receive from the losing party all costs and expenses in such amount as the court may adjudge to be reasonable attorneys' fees. 21. COMPLIANCES: TALLMANTZ shall comply with all laws, state or federal and all ordinances, rules and regulations enacted or issued by CITY. 22. WAIVER: A waiver by CITY of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein whether of the same or a different character. 9 23. NOTICES: All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from TALLMANTZ to CITY shall be addressed to CITY at: City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658 -8915 Attention: POLICE CHIEF All notices, demands, requests, or approvals from CITY to TALLMANTZ shall be addressed to TALLMANTZ at: TALLMANTZ Tallmantz Aviation, Inc. John Wayne Airport Santa Ana, CA 92702 24. PROHIBITION AGAINST TRANSFERS: TALLMANTZ shall not assign, sublease, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without prior written consent of CITY. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 25. ENTIRE AGREEMENT: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of TALLMANTZ, or of the interest of any general partner or joint venturer or syndicate member of co- tenant if TALLMANTZ is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of TALLMANTZ, shall be construed as an assignment of this Agreement. Control means fifty percent (50 %) or more of the voting power of the corporation. This contract contains the entire Agreement of the parties 10 E with respect to the matters covered by this document, and no other agreement, statement or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this contract shall be binding or valid. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. PROVED AS TO FORM: City Attorney ATTEST: CITY CLERK ORANGE AVIATION INC., dba TALLMANTZ AVIATION [ra R TT 11TT TTT l+ California Corporation BY Charles C , President 181 n W: BROWN & ASSOW TES - -- — + fore No# tear rest, $site rro Insurance Ser es pert reach, CA 92660 ( 7 1 4) a $1 - p 0 a 0 CERTIFICATE OF INSURANCE F _ 72 ):),Z THIS IS TO CERTIFY TO: City of Newport Beach Newport Beach, California THAT THE FOLLOWING POLICY OF INSURANCE HAS BEEN ISSUED TO: Orange Aviation, Inc., DBA: Tallmantz Aviation POLICY NO. _ POLICY PERIOD INSURANCE CO. TBA FROM: U.S : August 20, 1989 DESCRIPTION OF COVERAGES AND LIMITS OF LIABILITY: Airport Liability: Single Limit Bodily Injury and Property Damage $5,000,000.00* each occurrence but aggregate as respects products /completed operations and personal injury including; [3t Premises [7d Personal Injury [it Products /Completed Operations [] Contractual [$ Independent Contractors [Ii Hangarkeeper's Liability- $15,0001000. each aircraft. $30,000,000. each occurrence. Deductible- $ 2,500, each loss. Additional Coverages; *$30,000,000.00 as respects Premises Coverage The above certificate holder is added as an additional insured but only as respects the operations of the named insured. Should any of the above described policy(ies) be cancelled before the expiration date hereof, the issuing company will endeavor to.give prompt *notice to the certificate holder named herein. However, failure to mail such notice shall not impose any obligation nor any liability of any kind upon the company, its representatives or agents. *301 days _ I By LL of Issue August 12. 1988 W. Brown and A c ates . Insurance Se v' es.. Certificate No. 4 VZ /cp 0 CASS & JOHANSING CO) INSURANCE CENTER September 2, 1986 City of Newport Beach, City Hall 3300 Newport Blvd. Newport Beach, Ca. 92663 0 Re: Orange Aviation, Inc. DBA: Tallmantz Aviation Southeastern Aviation (National Union). Policy $AP983 -8110 Gentlemen: C -1133 Enclosed herewith is up -dated Certificate of Insurance on the Airport Liability as captioned. We trust that this is entirely to your satisfaction and that you will not hesitate to advise of any changes. Very truly yours., Cg5-S -1 OHANS I NG Jaclie Chetta /yc encl. 24102 El Toro Rd., Suite C, Laguna Hills, Calif. 92653 • Phone (714) 837 -2800 This is to certify to: CERTIFICATE OF City of NpwIpnrt SpAch, City Hall 3300 Newport Boulevard Newport Beach California 92663 INSURANCES That the following policies have been issued to: Orange Aviation, Inc. DBA: Tallmantz Aviation 19711 Airport Way South Santa Ana, California 92707 ITEM 1. Corporate Aviation Liability Policy No. of the Policy Period: from to Coverage Limits of Liability Single Limit_ cluding Passengers $ Each Person $ _ Each Occurrence Passenger Voluntary Settlement $ Each Person $ Each Occurrence Medical Expense cluding Crew $ Each Person $ Each Occurrence ITEM 2. Aircraft Liability Policy No. of the Policy Period: from to Coverage Limits of Liability Bodily Injury (excluding Passengers) $ Each Person $ Each Occurrence Passenger Bodily Injury $ Each Person $ _ Each Occurrence Property Damage $ Each Occurrence Single Limit Bodily Injury and Property Damage including Passengers $ Each Occurrence Single Limit — cluding Passengers $ Each Occurrence with Passenger Liability limited internally to: $ Each Person ITEM 3. Airport Liability Policy No. A?983 -8110 of the National Union Firp Tnanranno Company Policy Period: from August 20, 1986 to August 20, 1987 Coverage Limits of Liability Bodily Injury $ Each Person $ Each Occurrence Property Damage $ Each Occurrence Single Limit Bodily Injury and Property Damage $ 5,000,000.00 Each Occurrence Hangarkeepers' Liability Ground $ 2 000 000.00Each Accident $ 5,000,00-00 Each Loss Hangarkeepers' Deductible $ 10,000.0 ITEM 4. Workers' Compensation Policy No. of the Policy Period: from to Limits of Liability: Statutory Coverage B — Employers' Liability: ITEM 5. OTHER INSURANCE AS DESCRIBED: The above Certificate Holder is added as an Additional Insured with a hold harmless, but only with respect to the operations of the Named Insured and warranted no operational interst. This Certificate of Insurance neither affirmatively nor negatively amends, alters or extends the coverage(s) afforded by the policy0es) described above. If The Aviation Managers have made provision for pdgjM4,t described policies but, except as otherwise stated in this sponsibility for any failure to do so. (SPECIAL CONDITIONS, if any, on reverse) *30 days (10 days for non - payment) Certificate No. 5 August 27, 1986 VZ:cp (PEY. a -as) notice to you in the event of cancellation of the above certificate, the Aviation Managers assume no legal re- 0 Southeastern Aviation Underwriters, Inc. l9 Southeastern Aviation (California) Insurance Services Division of Southeastern Aviation Underwriters, Inc. ❑ Southeastern Aviation (Te as), Inc. ❑ Southea tern Aviation (I inois) Corp. Bv Authdri ze epresentative Q�v�rK 4 ON gEpgN. �JF GPIAF -^-A ;. Tafiftrate of 4 usuxana EFFECTED WITH 31uguraitce companie!5 BY c -a«3 N° 3004 THIS IS TO CERTIFY that the undersigned have procured insurance as hereinafter specified from certain Insurance Companies, (hereinafter called the "Underwriters "), through our Brokers in London, England. Pursuant to such authorization the Underwriters do hereby bind themselves, each for itself only and not one for another, for the percentage shown hereunder. In favor of Tallamts Aviation, . Zia. awor Tate national FUrt and Spam AMOUNT RATE PREMIUM Noeeafl and/or Norvie1ailed o! ':he Air Assured. $ As Sndorssd $ 70,000.00 $ $ address: 19711 Airport 9W 8 $ Santa Asa © 927C This Insurance is issued pursuant to the $ ' California Insurance Code, Sections 1760 r type of Coverage: Federal Tax" $ As Midosted through 1780, and is placed in an insurer e � State Tani $ 2,100.00 or insurers not holding a Certificate of in the amount of As Endorsed Authority from or regulated by the Cali- '3 l° Stamping k'cr. $ 210.00 S$ �^ fornia Insurance Commissioner. $ f Hereon "A , of the amount and premium stated herein. Certificate Fee $ mom TOTAI .� $72_,_,114. -00 °Pa ➢able on Portion Applicable Beginning at 12:01 A.M. on the 20a day of Angoet, 1984 and ending at 12:01 A.M. on the 20t}y day of Argent, 1985 standard time at the place of location of risks insured and in accordance with the terms and conditions of the form (s) attached. IT IS UNDERSTOOD AND AGREED THAT THIS CERTIFICATE SHALL RUN CONCURRENTLY WITH AND RE SUBJECT TO THE S.AAIE GROSS RATE TERMS, CONDITIONS AND ENDORSEMENTS AS MORE PARTICULARLY SET FORTH IN ANn,OR AS MAY FROM TIME TO TIME RE ADDED TO THE CERTIFICATE OF SAME NUMBER EFFECTED WITH LLOYD'S UNDERWRITERS ON THE IDENTICAL SUBJECT MATTER AND RISK. 1. It is specifically understood that the names of the Und. ... 'titers hereunder, are on She in the office of our Brokers in London, England and will be on file in the office of the und,,osrvd, upon being for+varded to them by ou, Rni III s. 2. It is expressly understood and agreed by the Assured by accepting this instrument that the undersigned is not one of the Cnduncriters hvr -ora er :md neither is nor shall be in any + nay u r to a, extent liable for any Ioss or chin, +. hateveq as an Cnden,vteq but the Underwrters here. vder are only 011,1 wh m ose ine, ore ov file as here-c act forth. 3. If 3. If the Assured shall make any claim knowing the same to be false or fraud,denq as regards amount or otherwise, this Certificate shall become void and all claims thereunder shall be S-ol m 4, This Cuifi,;.4o may be cancelled Ceded, the cuor ity short mte basis t the Af t ed n any Gorr by written notice or by surrender of the Certificate t to the a der - signed. Thus Che A.atr may a), en cancelled, tA,ii or .dthout the ,,horn or tender If the o, t th ed "nod',, , dy I:ndrnocvn , ,e 1 the undoan 10 ai the,, behalf by 0 o.h., Vg "i the 'am".11 or by sending e the Assured he Mail, rU ndend t hall refun at the Aav"'Ini address shown hur'e not list than e ;o.6. t rittm, nohee e stating .Then the = ve ➢l:�tion shall be ,neat,,, and 'm sr.eb cute I;udenvrita, s-h'a( ,,Fund the paid premium less eik the tamed portion thorro(t dear,,, uan ct ,il..-ays to the retention by Cn....d. tors hereon of any minimum premium stipu Fated herein (or proportion thereof prc"iously ageed open) m the „cent of e.,nceilahon rather bl L'ndenvru res or the fi,m, d. This Cerhma, of he Innce shall not be s, ...it eiw r. i is hula .. part- cachou[ the written consent of the , nde,ion. rl endorsed hereon. o. � n 6. Loos or dvmage to the Property insured nmenoned nh , invasion, honil ❑ics, acts of foreign enemies, moil wan rebdl(nn, msurrecGon, nulhar. or u....... d power or martial law o od..ra: e, h, u,,I of any Government lw il, or "olio A u<,t c.. emI 7. Th+ .:RS..z tan +rs and c mdia... cut. red herein or uulonad h ncle ante vxb oth.o provisions, a ree,or be or oe' to have ae may be endorsed he,con or added hereto are hereby t orporated er this agreement No written onhor tt the U eIcto, -tors ,.hall an, power to waive or be d,anmd to have waived any provision ti coed pion this certificate unless such n over, if any, shall ,l +'ditto upon or attached heato; nor .,hall any privilege or permission affecting the inaimnce under this cerhf cote exist or be claimed ryy the insured vilest sow 'teen use attached. 8. This doeammot i intended r(or use es evidence that insiv:,nee dcserbed herein his been effected, against which it Policy(ies) will be issued and that, in the event of any inconsistency therewith, the terms, conditions and provisions of the Poliey(ies) shall prevail Immediate advice must be Riven of any discrepanaes or necessary changes. This insurance is issued pursuant to the California Insurance Code, Sections 1760 through, 1780, and is placed in an insurer or insurers not holding a Certificate of Authority from or regulated by the California Insurance Commissioner. SOUTHEASTERN AVIATION (CALIFORNIA) INSURANCE SERVICES This Certificate shall not be valid unless signed by A Division of Southeastern Aviation Underwriters, Inc. Dated at Newport leach, CA this4th day of 8eptomber, 1984 .. SOUTHEASTERN AVIATION (CALIFORNIA) INSURANCE SERVICES A Division of Southeastern ) \viattiio /n Underwnt r5. Inc. N, SLP 5004 REV. 9/70 •. ORIGINAA�L Company; ies,Gertificate nai a io saoad yp )yew of sy =!R. pms aqp woym of vosad ay se w ayi a,u2prs p Agaaay poe a a) aaue,nsu. Jo ue .puna,aq whue io (ponsu!m ao) paanu ayi 'Jo JJegaq uo o Aq painppvi euipa:Oid o m sald In.xe Sue pa 6u w inewiwqw - Jwiagi Sdoa a sryn Jo ino 8urs vwT.jmq pu anp iagp se 'aOgJO vi wossaaans io syy so ml is ayp m asod,nd puyi o3 iaagJo >y . mJv gopwnQ iv aauwsrmo"'Z) 'wap - uaiuuadvs ayi apeu8nap Agaaay uwiay siaiumaapun •ioJaayi suorsmo,d sa>tew gmq.x saieig papryp ayp Jo iauislp ao .wo pw P4 'aieps .<ue Jo apnp+is Aue of wenvud vagpn3 pawppsm aq pays amr a yon, ivana agp uy JJegaq Aayp mqi (pa. nsvv>>o) pa>nsm ayi op eugepapun vagum a a.,Je w (panisuy p$insm ayp Jo psanbaa aqi uodn io /pue pins yans Aue m wapu.xiapu.•i o Jeyaq uo ssaamd JO uidaaee m pn )p pue pnp.q ne ie paweu- a,vye aqy -1eaddy ve Jo ivana ayi m V.OD aauJy dy Aue Jo aO pnop yans JO uoinoap yvmJ ayi .(q apqu pp:+ s apu wapvp •iamiuo� s{yi wMn ways Jo auo Ave pvye8e 'e paminsu! pns rive iegp pvupuoJ! pep sa •p8uy ro7 pue oanaueiA ueg "auJ 'eu!PnH V siydgy ussa Jq uodn apvw aq .<ew inns yans m ssaam Jo om.aas put uopaipspni pno:) yans a.ye op Ale „awu iuOwWpl a, 119 gpy.x AJdwoa pppm pue solops poi!u(J ayi uigi!.x uon >ipsunp J.aPdww Jo Wn.D .(uu Jo npaipsunt ayi of iiwgns j'ipx painssy ay Jo psanbw aqi w uoaaay lulu. pu(y ',apuw,aq anp aq op pawieJa Junowe Aue Aed of ma.ay siapy.xaapup Jo ampw ay Jo wana ayi vy ieyi paa,Su s'i q ('V's'R) 3sfiriD nas 3o 3oIAII3s Ss3msau 3mn sII iauas No SNouv i i3oNVO irm oN 3oLLON • A- • A R I E L AIRPORT OWNERS AND OPERATORS LIABILITY INSURANCE I iE R:4 m ri,RS he: °N; axis@ to the extent and :n the manner hereinafter provided, to pay on behalf of the Assured .,II ,..c, .. __.. ... .,,,,,r� ..:..C; ...� _;aiip acl;zu_.+. to piy or by final ludgment by adjudgeJ ropayup to but not exceeding the amounts specified in the Schedule, to any person or persons as damages amp t,me re :ar. °.;; .cc :ef :c :n �tereina Rer referred to as bodily injury) or •b) fcr i:.., •d nr nmaz "o pn >,terry ,,f others -hereinafter referred to as property damage) caused by accident occurring during me period mentioned in the 'Schedule and arising out of the hazards set forth in Sections 1, 2 and 3 below, SECTION 1 Bodily injury or property damage (a) in or about the premises specified in the Schedule, as a direct result of the services granted by the Assured (b) elsewhere in the course of any work or of the performance of any duties carried out by the Assured or his employees In connection with the business or operations specified inthe Schedule, caused by the fault or negligence of the Assured or any of his employees en.,?ged in the Assured's business or by any defect in the Assured's premises, ways, works, machinery or plant used In the Assured's business. THIS SECTION IS SUBJECT TO THE FOLLOWING EXCLUSIONS: 1. Loss of or damage to property owned, rented, leased or occupied by:— Whilst in the care, custody or control of: whilst being handled, serviced or maintained by the Assured or any servant of the Assured, but this Exclusion shall be deemed not to apply to vehicles that are not the property of the Assured whilst on the premises specified in the Schedule. 2. Bodily injury or property damage caused by (a) any mechanically propelled vehicle which the Assured may cause or permit any other person to use on the road In with a manner as to reader them responsible for insurance under any domestic or international law appertaining to road traffic, or where no such law exists, whilst such vehicle is on any public highway. (b) any Ships, Vessels, Craft or Aircraft owned, chartered; used or operated by or on account of the Assured, but this ex. clusion shall be deemed not to apply toaireraft owned by others which are on the ground and for which indemnity is otherwise granted under Section 2 of this Policy, whether such Section is insured hereunder or not. 3. Bodily injury or property damage arising out of any Airmeet, Air Race, or Air Show, nor any stand used for the accommo- dation of spectators in connection therewith, unless previously agreed by Underwriters. 4. Bodily injury or property damage arising out of construction of, demolition of or alterations to Buildings, Runways, or In- stallations by the Assured or his contractors or sub - contractors (other than normal maintenance operations) unless previously agreed by Underwriters. S. Bodily injury or property damage arising out of any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Assured or his employees after such goods or products have ceased to be in the possession or under the control of the Assured, but this exclusion shall lie deemed WE to apply to the supply, by the Assured, of food or drink at the premises specified in the Schedule. SECTION 2 Loss of or damage to aircraft or aircraft equipment, not owned, rented or leased by the Assured, whilst on the ground in the care, custody or control of or whilst being serviced, handled or maintained by the Assured or any servant of the Assured. THIS SECTION IS SUBJECT TO THE FOLLOWING EXCLUSIONS: (a) Loss of or damage to robes, wearing apparel, personal effects or merchandise of any description. (b) Lose of or damage to Aircraft or Aircraft equipment, hired or leased by or loaned to the Assured, (c) Lose of or damage to any Aircraft while in flight as defined. SECTION 3 Bbdily injury or property damage arising out of the possession, u se, consumption or handling of any goods or products manufac- tured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Assured or his employees after such goods or products have ceased to be in the possession or under the control of the Assured, THIS SECTION IS SUBJECT TO THE FOLLOWING EXCLUSIONS: (a) Damage to the property of the Assured or to property within his care, custody or control. (b) The cost of repairing or replacing any defective goods or product@ manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Assured or any defective part or pans thereof. (c) Lose arising out of improper or inadequate performance, design or specification but this exclusion dull be deemed not to apply to bodily injury or property damage as insured hereby resulting therefrom. (d) Lose of use of any Aircraft not actually lost or damaged In an accident giving rise w a claim hereunder. EXCLUSIONS APPLICABLE TO ALL SECTIONS OF THIS POLICY: - 1. THIS POLICY DOES NOT COVER liability for bodily injury to any person, who at the time of sustaining such injury is en- gaged in the service of the Assured or acting on his behalf, or liability for which the Assured or his insurer may be held liable under any workmans compensation, unemployment compensation or disability benefits law or any similar law. 2, THIS POLICY DOES NOT COVER the cost of making good any faulty workmanship for which the Assured, his employees, contractors or subcontractors may he liable (but this limitation shall not exclude resulting damage arising outof such faulty workmanship.) 3. THIS POLICY DOES NOT COVER liability assumed by the Assured by Agreement under any Contract unless such liability would have attached to the Assured even in the absence of such Agreement. 4. THIS POLICY DOES NOT COVER liability of the Assured directly or indirectly occasioned by, happening through or in consequence of War, invasions, act of foreign enemy, hostilities (whether War be declared on not), civil war, rebellion, revolution, insurrection or military or usurped power. 5. THIS POLICY DOES NOT COVER liability arising out of the operation of an airfield control tower unleseprevtou ly agreed by Underwriters. 6. Each section of this Policy excludes liability which is or would be covered under any other section of the Policy, whether such other section is insured hereunder or rot. 7. This Policy is subject to the attached Radioactive Contamination exclusion clause. PAYMENT OF COSTS: In addition to the limits set out in the Schedule, Underwriters will pay all legal and other wets incurred with their consent in the defence of any claim made against the Assured, ATTACHED TO AND FORMING P 4RT OF 3QDA ISSUED TO: Tallmantz Aviation Inc., et al DATED AT: Newport Beach, CA This By:SOUtheastern Aviation (CA) Ins. Services �l day of Se Pt. l9 84 (OVER) WAGE r or a z J , - ca, c) 6 1 'SI'1VSOd OHd 3H I. i031.V0.3H1 5 09926 VO 'gOeag q-To aft 'psanaTnoa =g4zyaeN 0006 saOTASaS a �Dznsul (y0) UOT4eTAy Uza -4Se9q -4nOS - 'SI N3: \10 33 "TitltiS S3011ON'11V WOH.;. 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FEDERAL TAX s y. STATE TAX s IT IS HEREBY UNDERSTOOD AND AGREED THAT: S 1. Item No. 5 of the Schedule is completed to read as follows: 5. The Amount of Indemnity shall not exceed: Sum Insured Section I Bodily Injury, Personal injury and $5,000,000.00 any one occurrence Property Damage Combined. Contractual Liability, Bodily Injury $5,000,000.00 any one occurrence* and Property Damage Combined. aggregate as respects Property Damage Section II* $1,000,000.00 any one aircraft $2,000,000.00 any one accident/ occurrence, excess of $5,000.00 each and every loss *Including In Flight Hangarkeepers but excluding Rotro Wing In Flight Section III Bodily Injury and Property Damage Combined $5,000,000.00 any one occurrence $5,000,000.00 aggregate 2. As respects operations of the Named Insured, it is agreed to include the following as Additional Insureds and they shall be held harmless: Orange County, City of Newport Beach and City of Costa Mesa 3. In the event of cancellation by Underwriters a Thirty (30) day written notice will be given to: Orange County, City of Newport Beach and City of Costa Mesa 4. Exclusion "C" of Section 2 of the Ariel Form is deleted in its entirety. 5. The Pilot Warranty as respects Section 2 of the Ariel Form is to read "As approved by the Insured". THE EFFECTIVE DATE OF THIS ENDORSEMENT 16 August 20, 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT 18 ATTACHED TO AND MADE APART OF CERTIFICATE No 3004 bsUEDTO:Tallmantz Aviation Inc., et al DATE OF ISSUE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of Southeastern Aviation Underwriters. Inc. END. NO. 1 By I I • PREMIUM s Nil % FEDERAL TAX S % STATE TAX j s LIMITATION OF LIABILITY ENDORSEMENT (Additional Assureds) (Approved by Lloyd's Aviation Underwriters' Association) It is hereby understood and agreed that this Insurance is extended to cover the undermentioned as Additional Assured(s), but only in respect of the coverage provided under this Policy. It is further understood and agreed that notwithstanding the inclusion herein of more than one Assured, the total liability of the Underwriters in respect of any or all Assureds shall not exceed the Limit(s) of Liability stated in the Policy. Subject otherwise to all the terms, conditions, exclusions and limitations of the Policy. in consideration of the foregoing the sum of $ As End. Additional Premium. THE EFFECTIVE DATE OF THIS ENDORSEMENT IB August 20., 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE APART OF CERTIFICATE NO._. IssUED To; Tallmantz Aviation Inc., et al DATEOFISSUE: Sept. 4, 1984 SB /rj is paid hereon as an 3004 Southeastern Aviation (California) Insurance Services A Division of Southssstsm Avlst1on Undsrwrltsrs, Inc. END. NO. 2 eT 0, _?o - at;- &, -g ) . PREMI� S Nil • FEDERAL TAX S • STATE TAX S S WAR, HIJACKING AND OTHER PERILS EXCLUSION CLAUSE (Aviation) This policy does not cover claims caused by (a) War, invasion, acts of foreign enemies, hostilities, (whether war be declared or not), civil war, re- bellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power. (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and /or fusion or other like reaction or radioactive force or matter. (c) Strikes, riots, civil commotions or labour disturbances. (d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. (e) Any malicious act or act of sabotage. (f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil military or de facto) or public or local authority. (g) Hijacking or any unlawful seizure or wrongful exercise of control of the aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting without the consent of the Insured. Furthermore this policy does not cover claims arising whilst the aircraft is outside the control of the Insured by reason of any of the above perils. The aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the aircraft to the Insured at an airfield not excluded by the geographical limits of this policy, and entirely suitable for the operation of the aircraft (such safe return shall require that the aircraft be parked with engine shut down and under no duress). AVN48B THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20., 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. .3004 THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF CERTIFICATE NO ISSUED TO: Tallmantz Aviation Inc., et al DATE OF ISSUE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of Southgatvn Aviation Undenwiha, Inc. • ►ROAR f Nil % FKDKRAL TAX x STATK TAX S a EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT LIABILITIES) 1. In consideration of an Additional Premium of $ Included, subject to without review, it is hereby understood and agreed that with effect from August 20, 1984 , paragraphs A,C,D,E, F and G of the War, !ii- jacking and Other Perils Exclusion Clause forming part of this Policy, are deleted. 2. Nevertheless, the coverage provided by this Endorsement shall TERMINATE AUTOMATICALLY (a) upon the outbreak of war (whether there be a declaration of war or not) between any of the following States, namely, the United Kingdom, United States of America, France, the Union of Soviet Socialist Republics, the People's 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 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. (26.8.71.) AVN 52 United Stites Internal R DoaunhrAary Stamps in Oh amount down "bow, ppliceble to this Iwwnha have been affixed to the Accounts copy of this endorsement. The low provides for no Federal Tex relund once the Imuranee attach". THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20, 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF CERTIFICATE NO. 3004 ISSUED TO: Tallmantz Aviation Inc., et al DATE OFISSUE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of Southeastern Aviation U,derxvite s, Im. 2 of 2 END. NO. 4 BY PREMIUM $ Nil • FEDERAL TAX • STATE TAX II S 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: — (a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (b) pollution and contamination of any kind whatsoever, (c) 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 operation. 2. 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 defend (a) claims excluded by Paragraph 1 or (b) a claim or claims covered by the policy when combined with any claims excluded by Paragraph 1 (referred to below as "Combined Claims "). 3. in respect of ai.y 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 claim or claims covered by the policy: (i) damages awarded against the Insured and (ii) defense fees and expenses incurred by the Insured. 4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this policy. AV46B (Dec. S, 1971) THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20, 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF CERTIFICATE NO. 3004 ISSUED TO: Tallmantz Avaition Inc., et al DATE OF ISSUE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of Southwom A~ion Undo lton, Inc. END. NO. 5 0 PREMIUM PRE j Nil • FEDERAL TAX j • STATE TAX j s IT IS HEREBY UNDERSTOOD AND AGREED THAT: 1. This Policy shall not be cancelled nor the amount of coverages provided herein reduced until thirty (30) days after the Orange County Airport shall have received written notice of such cancellation or reduction, as evidence by return receipt of registered mail. 2. With respect to all operations of the Named Insured insured hereunder: "Notwithstanding any inconsistent statement in the policy to which this endosement is attached or any endorsement now or hereafter attached hereto, it is agreed that the County of Orange is a Co- Insured hereunder, covering all operations of the Lessee of Sub- lessee under this lease, whether the liability is attributable to the lessee of any sub- lessee of his employee or the County." THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20, 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 3004 THIS ENDORSEMENT to ATTACHED TO AND MADE A FART OF CERTIFICATE No Tallmantz Aviation Inc., et al DATEOFUSUE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of SouMastem Avlstion Underwriters, Inc. END. NO. 6 BY a_)' ` �! LC� > %!I �z 11 PREMIUM 5 Nil % FEDERAL TAX 5 % STATE TAX 5 5 IT IS HEREBY UNDERSTOOD AND AGREED THAT: Subject to the terms and conditions of Endorsement No. 8 the following is included as an Additional Insured with respect to coverage afforded under Sections 1 and 2 only of the Airport Owners and operators Liability Insurance Form: Chevron U.S.A., Inc. and its subsidiaries or affiliated Companies. THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20., 1984 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 3OO4 THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF CERTIFICATE NO. Woueo To: Tallmantz Aviation Inc., et al DATEOFUeuE: Sept. 4, 1984 SB /rj Southeastern Aviation (California) Insurance Services A Division of Southaastam Aviation lUJnndd�` n anarits, Inc. END. NO. 7 BY 0, � )L`aQ V �1ILn • PREMIUM f Nil % FEDERA" TAX f % STATE TAX f f IT IS FZREBY UNDERSTOOD AND AGREED THAT: Notwithstanding the inclusion of the City of Newport Beach as an Additional Assured, the total liability shall not exceed the limit(s) of Liability stated in this policy. THE EFFECTIVE DATE OF THIS ENDORSEMENT IS Aummj— 90 I qR4 ALL OTHER TERMY AND CONDITIONS REMAIN UNCHANGED. TNIf ENDORSEMENT IS ATTACHED TO AND MADE APART OF CERTIFICATE NO. Inu IssuEDTo: Tallmantz Aviation Inc., et al DATEOFISSUE: Sept. 4, 1984 SB /ri Southeastern Aviation (California) Insurance Services A Division of Southeastern Aviation UUnndenvrrirlttem,, �Ino. END. NO. 8 Br it /' � QL.C.( `c, zl )/ 7 �7' 0 PREMIUM % FEDERAL TAX % STATE TAX CROSS LIABILITY ENDORSEMENT IT IS HEREBY UNDERSTOOD AND AGREED THAT: s Nil s s i Solely with respect to Liability arising out of the Named Insuxed's contract with the City of Newport Beach as respects maintenance of the. City's Helicopters, the undermentioned policy shall be extended to include the following clause: "It is agreed that claims for Personal Injury, Property Damage or Advertising Liability made by an Insured hereunder against another Insured hereunder shall be covered in the same manner as if separate policies had been issued to each Insured. Nothing contained herein shall operate to increase the Company's limit of liability as provided under this policy." THE EFFECTIVE DATE OF THIS ENDORSEMENT IS ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THis ENDORSEMENT IS ATTACHED TO AND MADE A FART OF CERTIFICATE IssuEDTO: Tallmantz Aviation Inc. ,et al DATE OF ISSUE: Sept. 4, 1984 August 20, 1984 3004 Southeastern Aviation (California) Insurance Services SB/rj A Division of Southeastern Aviation Underwriters. Inc. / \ END. NO. 9 Br n )r 1 N% /t /7 Y CERTIFICATE OF I�TCT TR A l�T�'T.' TO Name: City of Newport Beach, City Hall 3300 Newport Blvd., Newport Beach, CA 92663 -3884 %Address: V4ts is to (gatiflJ9 that insurance has been effected with Lloyds' Underwriters and /or Certain Ins. Companies Covering as follows: Name of Insured: Tallmantz Aviation Inc,, et al Address of Insured: 19711 Airport Way South, Santa Ana, CA Certificate or Cover Note No.: 2936 Expiration Date: August 20, 1984 Aircraft: Not applicable Orange County Airport, Santa Ana, CA and any location Locations Covered: incidental to the Assured's operations Aircraft Liability Coverage Limits of Liability Each Person Each Occurrence Bodily Injury — Excluding Passengers $ $ Property Damage $ XXXX $ Passenger Bodily Injury $ $ Single Limit — eluding Passengers $ XXXX $ Medical Payments — eluding Crew $ $ Airport Liability Coverage See attached Bodily Injury $ $ Property Damage $ $ Single Limit $ XXXX $ Aircraft Hull Amount of Insurance Ground Only $ Ground & Flight $ Southeastern Aviation (California) Insurance Services, A Division of Southeastern Aviation Underwriters. Inc. has made provision for (10) Ten Day notice to you in the event of cancellation of the above described policies but, except as otherwise stated in this certificate, Southeastern Aviation (California) Insurance Services, A Division of Southeastern Aviation Underwriters, Inc. assumes no legal responsibility for any failure to do so. Southeastern Aviation (California) Insurance Services, A Division of Southeastern Aviation Underwriters, Inc. are not insurers hereunder and they shall not be held liable for any loss or damage. For particulars concerning the limitations, conditions and terms of the coverage you are referred to the original Policy or Policies in the possession of the Assured. SOUTHEASTERN AVIATION (CALIFORNIA) INSURANCE SERVICES A Division of Southeastern Aviation Underwriters. Inc. 8/31/83 EG (SPECIAL CONDITIONS, if any, on reverse) Countersigned by��_ i - • % FEDERAL TAX 5 ye E TAX S 5 IT IS HEREBY UNDERSTOOD AND AGREED THAT: 1. Item #5 of the Schedule is completed as follows: 5. The Amount of Indemnity shall not exceed: Sum Insured Section I Bodily Injury, Personal Injury & Property Damage Combined. Contractual Liability, Bodily Injury and Property Damage Combined. Section II* * Including In Flight Hangarkeepers Section III $5,000,000.00 any one occurrence $5,000,000.00 any one occurrence $1,000,000.00 any one aircraft $2,000,000.00 any one accideni occurrence, excl of $ 500.00 each and every loss Bodily Injury and Property $5,000,000.00 any one Damage Combined occurrence $5,000,000.00 aggregate 2. As respects operations of the Named Insured, it is agreed to include the folll as Additional. Insureds and they shall be held harmless: Orange County, City of Newport Beach and City of Costa Mesa 3. In the event of cancellation by Underwriters a thirty (30) day written notice will be given to: Orange County, City of Newport Beach and City of Costa Mesa THE EFFECTIVE DATE OF THIS ENDORSEMENT IS August 20, 1983 ALLOTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE APART OF CERTIFICATE NO. 2936' ISSUED TO:_ - - -- Tallmantz Aviation Inc., et al —..___ DATE OF ISSUE:__ Aug. 31, 1983 Southeastern Aviation (California) Insurance Services A Division of Southeastern Aviation Underwriters, Inc. END. NO. 1, page 1 BT SB /eg . PR*bm S 1 J % FEDERAL TAX 5 STATE TAX 5 5 4. Exclusion "C" of Section 2 of the Ariel Form is deleted in its entirety. 5. The pilot Warranty as respects Section 2 of the Ariel Form is to read "As approved by the Insured ". THE EFFECTIVE DATE OF THIS ENDORSEMENT ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. TH Is ENDORSEMENT IS ATTACHED TO AND MADE APART OF CERTIFICATE NO-2%36- - Tallmantz Aviation Inc., et al Issuer) To:__��._. Aug. 31, 1983 DATE OF ISSUE:_._,.. —_._ �..� SB /eg Nil Southeastern Aviation (California) Insurance Services A Division of Sontheastem Aviation Underv,eltem. Inc. END. NO.1, page 2 41L IL CERTIFICATE OF INSURANCE TO Name: City of Newport Beach City Hall 2300 Newport Blvd., P.O. Box 1768 Address: Ngyport Beach CA 92663 C, 4is is to Trr tftjp that insurance has been effected with Lloyd's tM&rw4t&rn and C main insurance Companles Covering as follows: Name of Insured: Tallmants Aviation Inc., at al Address of Insured: orange County Airport, Santa Ana, CA Certificate or Cover Note No.: 2417 Expiration Date: August 20, 1982 Aircraft: Not applicable Orange County Airport, Santa Ana, CA and any Locations Covered: location incidental to the Assured's operations. Aircraft Liability Coverage Limits of Liability Each Person Each Occurrence Bodily Injury — Excluding Passengers $ $ Property Damage $ XXXX $ i Passenger Bodily Injury $ $ Single Limit — cluding Passengers $ XXXX $ Medical Payments — cluding Crew $ $ Airport Liability Coverage See attached Bodily Injury $ $ Property Damage $ $ Single Limit $ XXXX $ Aircraft Hull Amount of Insurance Ground Only $ Ground & Flight $ Southeastern Aviation (California) Insurance Services, A Division of Southeastern Aviation Underwriters. Inc. has made provision for (10) Ten Day notice to you in the event of cancellation of the above described policies but, except as otherwise stated in this certificate, Southeastern Aviation (California) Insurance Services, A Division or Southeastern Aviation Underwriters. Inc. assumes no legal responsibility for any failure to do so. Southeastern Aviation (California) Insurance Services, A Division of Southeastern Aviation Underwriters, Inc. are not insurers hereunder and they shall not be held liable for any loss or damage. For particulars concerning the limitations, conditions and terms of the coverage you are referred to the original Policy or Policies in the possession of the Assured. VZ /ag SOUTHEASTERN AVIATION (CALIFORNIA) INSURANCE SERVICES A Division of Southeastern Aviation Underwriters. Inc. (SPECIAL CONDITIONS, if any, on reverse) Countersigned by � � rt cMlLlry s Nil _ 'ERAL TAX 5 • i J A7E TAX S 5 In the event of cancellation notice will be given to: by Undera,riters a thirty (30) day written Orange County. 'City Of Newport Beach and Irvine Company 4)' Exclusion "C" of Section 2 Of the Ariel Form is deleted 5) The pilot in its entirety. warranty as respe to read Section 2 Of the Ariel Form is "As approved by the Insu J I " TH@ EFFECTIVE DATE OF THIS v -NDORSEMENTI5__,— AUQll$t 20, lgg__1 'ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED• TMI$ ENDORSEMENT IS ATTACHED TO AND MAOE A PART07 CEP.TIFIOATE NO_,. _ 2417 :;svEDTD:_Tallmantz_Aviation, Inc,, et al — ' 6^TEOF'155UE: August 26, 1981 SB/rj Southeastern Aviation (CaliiOrnla) Insurance Services A Division 01,S"thaWem Av;�tioo UnGerwri[er., Inc END. NO. 1 (page 2) .,r,:: ��... .��'� :�:•- .. - v PREMIUM S Nil �. SRAL. TAX 5 1 • % ATE TAX 5 IT IS HEREBY UNDERSTOOD AND AGREED THAT: 1) Item No. 5 of the Schedule is completed as follows: 5. The amount of Indemnity shall not exceed_ Sum Insured Section I Bodily Injury, Personal Injury and Property Damage Combined_ Contractual Liability Bodily Injury Property Damage Section II* *Including In Plight Hanaarkeepers $5,000,000.00 any one occurrence $ 500,000_00 any one person $1,000,000_00 any one accident/ occurrence, $ 500,000_00 any one accident/ occurrence. $1,000,000_00 any one aircraft $2,000,000_00 any one accident/ occurrence, excess of $ 250.00 each and every loss Section III Bodily Injury and Property $5,000,000.00 any one occurrence Damage combined $5,000,000.00 aggregate 2) As respects operations of the Named Insured, it is agreed to include the following as Additional Insureds and Hold Harmless: Orange County, City of Newport Beach and Irvine Company August 20, 1981 THE EFFECTIVE DATE OF THIS ENDORSEMENT IS _- ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED, THIS ENDORSEMENT IS ATTACHED 70 AND MADE A PART 07 CERTIFICATE NO... ISSUEOTO: Tallmantz Aviation, Inc.,et al August 26, 1981 DATE OF ISSU E: SB /ri .IUUCneasiefn AVfaxion tteamornla) Insurance Jefvlce5 ;771 ion�,atSou;heastem A�iar`%dnUrtLenvn: ^rs, Ine,,, .'vs END. NO. 1 (page 1 of Br ._ VA. 2) a DATE Feb. 5 ) 1982 0 CITY OF NEWPORT BEACH TO: FINANCE DIRECTOR POLICE CHIEF FROM: City Clerk SUBJECT: Contract No. C -2133 OFFICE OF THE CITY CLERK (714) 640 -2251 Description of Contract Helicopter Maintenance Agreement Effective date of Contract November 8. 1982 Authorized by Resolution No. 11086 . adopted on Nov. 9, 1981 Contract with Tallmantz Aviation, Inc. Address Orange County Airport Santa Ana. CA 92702 Amount of Contract $48.00 per flight hour /s/ Wanda E. Andersen WANDA E. ANDERSEN City Clerk WEA:lr attach. City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 5 -81 u 0 HELICOPTER MAINTENANCE AGREEMENT THIS AGREEMENT, made and entered into this . day of 1981, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "CITY," and TALLMANTZ AVIATION, INC., a California corporation, hereinafter referred to as "TALLMANTZ "; WITNESSETH: WHEREAS, CITY has two helicopters (hereinafter "aircraft "), manufactured by Hughes Aircraft, used in connection with its police and law enforcement facilities, said helicopters bearing United States Registration numbers N9627F and N58327 and bearing serial numbers 040 and 1090833; and WHEREAS, CITY desires to have said aircraft serviced, maintained and inspected in accordance with FAA regulations and manufacturer's recommendations and requirements; and WHEREAS, TALLMANTZ is equipped to perform the services as set forth in this Agreement, and desires to do so; and WHEREAS, the parties hereto wish to set forth their rights, duties and liabilities hereunder, NOW, THEREFORE, the parties hereto agree as follows: 1. PAYMENT FOR SERVICES CITY shall pay to TALLMANTZ, for the services to be performed pursuant to, and for the initial term of this agreement, the sum of $48.00 per flight hour. Consideration to be paid during any automatic extension of this agreement, as provided in Paragraph 2 (Term), shall be determined by agreement of the parties. To this end, each of the parties hereto agrees, at least 45 days prior to the expiration of the original term, or any auto- matic extension as provided herein, to discuss the consideration to be paid during the extended term. If the parties agree on the consideration to be paid during the extended term, this agreement shall be amended in writing to reflect the new consideration. If the parties are unable to agree on the consideration to be paid during the extended term, either party has the option to terminate this agreement subject to giving the other 60 days notice of termination. Page 1 of 6 t • • 2. TERM OF AGREEMENT The term of this agreement shall commence as of the date of execution and shall continue in full force and effect until June 30, 1983. The term of this agreement shall be automatically extended thereafter for annual periods from year to year subject to the right of either party to' terminate as provided in Paragraph 1; 3. SERVICES TO BE PERFORMED BY TALLMANTZ For, and in consideration of, the payment of the hourly rate paid by CITY to TALLMANTZ, TALLMANTZ agrees to perform the following services: A. Inspection and Maintenance At such times as the manufacturer recommends, and /or governmental regulations require inspection or maintenance, the aircraft will be brought to TALLMANTZ for appropriate inspection or maintenance. All service, except as provided below, whether scheduled or unscheduled, will be performed at TALLMANTZ, and within a reasonable time, considering the service which the Police helicopter renders the community, and the operational limits of TALLMANTZ. On -site field repairs shall be made when necessary to keep the aircraft operational, or when repairs are required before the aircraft can be flown. The ferry time to and from TALLMANTZ may be performed by customer's personnel. Otherwise, labor to perform these operations is included in the hourly rate. B. Parts Maintenance replacement parts, needed as a result of ordinary wear and tear, shall be included as part of the hourly rate. (In addition to, but not limited to, maintenance replacement parts, there shall be included within the hourly rate ANY hardware, special oils and hydraulic fluid, tail rotor boots, main rotor boots, tail rotor bumpers, tangwashers, "0" rings of all types, gaskets of all types, small roller bearings, snap plugs, NAS and MS fittings and cables, springs of all types, seals of all types, fabric ducts of all types, all fuses; plastic components will be limited to instrument console parts rotating beacon supports, and "V" belt inspection covers). Page 2 of 6 E 0 Only replacements or repairs not resulting from ordinary wear and tear may be charged in addition to the hourly rate and shall be charged on the basis of the list price for labor and parts. C. Limited Life Replacements Except as specified hereinafter, all limited life items shall be replaced or overhauled, at the manufacturer's recommended, or government regulated, replacement time, at no charge, including labor to make the replacements in accord with standards established by the manufacturer and /or by the Federal Aviation Administration. D. Engine Overhaul and Engine Change Agreement The labor to overhaul, remove and install the engine at TBO is included in the hourly rate. The normal and usual replacement parts, as included in Lycoming's Engine Overhaul Kit, are also included. 4. ITEMS AND SERVICING NOT UNDER THE HOURLY RATE The performance of the following services and these services only, shall be charged in addition to the hourly rate: A. Painting B. Servicing Special Police Equipment (defined as that extra helicopter equipment which a police department or like peace- keeping agency would use exclusively in its peace- keeping and public service functions). Except that with respect to the searchlight, the 100 amp alternator shall be replaced as a part of the hourly rate at 1000 TBO, and replacement short of 1000 TBO shall be charged on a pro -rated basis. C. Pro - Ration of Cost for Parts shall apply in the following circumstances: (1) Engine change before TBO (1000 hours); (2) Rotor blades before planned retirement (5500 hours); (3) Other times life items which do not last their scheduled times. D. Cost of Fuel and Oil is not included in the hourly rate. E. Communication Equipment servicing is not included in the hourly rate. Page 3 of 6 5. INVOICING It is understood and agreed by and between the parties hereto that TALLMANTZ shall base its billing on the agreed hourly rates multiplied by the time recorded from engine instruments within the above numbered aircraft, and that CITY shall be invoiced monthly. 6. INSURANCE TALLMANTZ agrees to have its insurer name CITY as an additional insured under its policy of liability insurance and further agrees to each and every of the following separate and distinct duties: to defend, to indemnify, and to save harmless CITY against any claims, suits, liability, or judgments arising from any alleged negligence of TALLMANTZ or CITY reasonably related to TALLMANTZ'S performance of services for CITY pursuant to this contract and occurrences reasonably incidental thereto, pursuant to this contract, whether or not caused by TALLMANTZ'S sole, contributory, or comparative negligence. The aforementioned duties shall arise upon receiving actual notice from CITY, or upon receiving actual or constructive notice by filing of a claim or suit against CITY or against TALLMANTZ whereby it may reasonably be determined that CITY is, or may be, a potential defendant. A copy of said policy shall be filed with the City Clerk and shall contain an agreement by the insurer that it shall not terminate or reduce the insurance protection furnished to and for CITY without first giving CITY thirty (30) days' prior written notice thereof, directed to the City Clerk, said cancellation notice to be given only by registered mail, addressed to: City Clerk, 3300 Newport Boulevard, Newport Beach, California 92663. The policy shall include a Severability of Interest (cross- liability) clause and shall be primary and non - contributing with any other insurance available to the CITY. The insurance afforded by this policy shall not be invalidated as respects the interest of the CITY by reason of any breach or violation of any warranties, declarations or conditions contained in the policy. Said policy shall provide policy limits in the amount of $5,000,000 for any one occurrence, bodily injury and property damage combined, including pilot, officers and passengers. Page 4 of 6 7. PURCHASE OF ADDITIONAL AIRCRAFT /REPLACEMENT OF EXISTING Should CITY acquire any aircraft not described in this agreement, either as a replacement for aircraft described above, or to provide additional service, all of the terms and conditions of this agreement shall apply to that aircraft at such time as CITY notifies TALLMANTZ of delivery of the aircraft. With respect to any aircraft replaced by CITY, all rights and duties of each of the parties to this agreement shall cease at such time as notice of delivery of the replacement aircraft is given to TALLMANTZ. 8. REPRESENTATIONS OF CONTINUED OWNERSHIP It is understood and agreed that by entering into this agreement CITY makes no representation to TALLMANTZ that it will continue, during the term of this agreement, or any extended term, to own or use one or both of the air- craft described above, or any replacement thereof, and it is further understood that CITY reserves the right to temporarily or permanently discontinue the use of the aircraft without thereby incurring any liability under this agreement. 9. NOTICES Any notice required to be given pursuant to this agreement shall be deemed to have been given when deposited in the U. S. Mail, first class postage, prepaid and addressed as follows: (a) TALLMANTZ: Tallmantz Aviation, Inc. Orange County Airport Santa Ana, California 92702 (b) CNB: City of Newport Beach Office of City Attorney 3300 Newport Boulevard Newport Beach, California 92663 10. NONASSIGNABILITY This agreement may not be assigned or transferred by either party without the express written consent of the other. 11. ENTIRE AGREEMENT This contract contains the entire Agreement of the parties with respect to the matters covered by this document, and no other agreement Page 5 of 6 statement, or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this contract shall be binding or valid. CITY OF NEWPORT BEACH Municipal Corporation By. ATTESTED BY: yo "CITY" City Clerk T ,LMANTZ AVIATION, INC. "TALLMANTZ" APP OVED AS TO FORM: City Attor ey Page 6 of 6 November 17, 1981 Tallmantz Aviation Inc. Orange County Airport Santa Ana, CA 92707 0 CITY OF NEWPORT BEACH Subject: Helicopter Maintenance Agreement OFFICE OF THE CITY CLERK (714) 640 -2251 Enclosed are four copies of the Helicopter Maintenance Agreement between Tallmantz Aviation Inc. and the City of Newport Beach. Please have all copies executed with an official signature and return three of the copies to the City Clerk's office of the City of Newport Beach. Thank you for your immediate attention. Wanda E. Andersen City Clerk WEA:lr cc: Police Chief Gross File City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 �i E 0 C, - C;) «� CITY OF NEWPORT BEACH PO�L�I,CE� DEPARTMENT October 19, 1981 NOV 9 �98t `dL Usi��� y 60 CITY cout" TO: City Manager G`1n OF NWW KA01 FROM: Chief of Police SUBJECT: HELICOPTER MAINTENANCE CONTRACT RECOMMENDATION: I recommend that the City execute the proposed maintenance contract with Tallmantz Aviation. DISCUSSION: Our helicopter maintenance contract expired some time ago. The proposed contract is the same as last year's except that the hourly rate, including parts and labor, has increased 2E% to $48.00. This represents an annual projected increase of $34,800. However, no addi- tional funding is being requested at this time.. At the end of the first quarter, September 30, 181, the helicopter maintenance budget was under - expended with a surplus in excess of $5,000.00. Tallmantz Aviation reported a substantial increase in their cost for helicopter parts. The attached letter from Frank Pine, president of Tallmantz Aviation, outlines some of their increases. The only other authorized Hughes services centers in Southern California are: 1. Alex -Air, Torrance Airport 2. Flight Trails, Palomar Airport 3. Western Air, Rialto Airport 4. Heli - Flight Systems, Long Beach Airport The cost for maintenance at the nearest of the above airports was evaluated and found to be more expensive than that offered by Tallmantz. Even if their rates were comparable, the distance from the City to their facilities would make their use costly and unwieldy. Charles R. Gross Chief of Police r 9 TALLMANTZ AVIATION, INC. August 19, 1981 City of Newport Beach Police Department 3300 Newport Blvd. Newport Beach, Ca. 92660 Attention: Charles Gross, Chief of Police Dear Chief Gross: F-Q Cd )RANGE COUNTY AIRPORT BANTA ANA, CALIFORNIA 92707 (714) 545 -1193 (213) 629 -2770 It is with much regret that I send this letter to advise that we have been faced with a substantial cost increase from Hughes Helicopters in parts for the helicopters. An example - from January 1980 through January 1981, the main rotor blade increased from $3060.29 per blade to $5444.43 per blade, an increase of 77.9%. The vert.stabilizer assembly has been increased 129.6% and the T.B.O. items have increased 47.8 %. We cannot absorb this high increase, and the new rate of $48.00 per hour, including labor and parts, has already been put into effect in our shop. I explained the increase to your Sgt. Rick Miller and have given him a copy of the comparable cost basis. All other factors in the Agreement would remain the same. Again, I regret the necessity of having to send you this letter. Verytt,ruly yours, F a lk Z Pine, 2 c/ (� resident FLP /Jy 2v '- £ N�+pCity0 RESOLUTION NO. 1*1 0,8 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A HELICOPTER MAINTENANCE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND TALLMANTZ AVIATION, INC. WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain Helicopter Maintenance Agreement between the City of Newport Beach and Tallmantz Aviation, Inc.; and WHEREAS, the City Council has reviewed the terms and conditions of said agreement and finds them to be satisfactory and that it would be in the best interest of the City of execute said agreement, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. ADOPTED this day of NOV 9 , 1981. yor ATTEST: City Clerk CITY OF NEWPORT BEACH CALIFORNIA City Hall 3300 W. Newport Hlvd. Area Code 714 DATE November 16, 1979 TO: FINANCE DIRECMR FROM City Cleric SUBJECT: Contract No. 2133 Description of Contract Helicopter Maintenance Agreement Authorized by Resolution No. 9677 , adopted on November 12, 1979 Effective date of Contract November 15, 1979 Contract with Tallmantz Aviation, Inc. Address Amount of Contract see coritract -- City Clerc CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK (714) 640 -2251 November 16, 1979 Newport Beach Police Department 870 Santa Barbara Drive Newport Beach, Ca. 92660 Attn: Michael Blitch Attached are two copies of the Helicopter Maintenance Pnreanent with the City of Newport Beach and Tallmantz Aviation. Please transmit an executed copy to Tallmantz Aviation; the other copy is for your file. This agreement was approved by the City Council on November 12, 1979, by Resolution No. 9677. DDRIS CWME City Clerk DG:vmw Encl U City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 CIT`l OF NEWPORT BEACH Police Department November 2, 1979 TO: Robert L. Wynn, City Manager FROM: Chief of Police SUBJECT: HELICOPTER MAINTENANCE CONTRACT RECOMMENDATION: ' -1 NOV 1? 1979 By f6 CITY COUNCIL CITY Of N4*VRT p I recommend that the City execute the proposed maintenance contract with Tallmantz Aviation. DISCUSSION: The maintenance agreement provides for a basic service rate of $34.00 per flight hour. Thus, for every 1,000 flight hours on a helicopter, Tallmantz bills us $34,000. This contract rate provides for part and labor costs for both scheduled and unscheduled maintenance, with the exception of items damaged due to other than normal wear and tear, and timed life items which do not last to manufacturer's recommended replacement time. In the case of failure before recommended replacement time, the parts cost will be pro- rated. I anticipate this cost will not exceed $1,000. Labor cost for this early replacement will be included in the hourly rate. Certain items are excluded from the hourly rate; these are painting (antici- pated yearly cost of $500), searchlight maintenance (anticipated yearly cost of $900), and communications equipment maintenance (anticipated yearly cost of $1,000). Additionally, there is no contract price for gas and oil - -we will continue to obtain both through Tallmantz, but will pay current market price. This year's contract differs from last year's in the following respects: (1) In previous years, replacement of timed -life items that failed prior to scheduled time was included as part of the hourly rate. As noted, the parts cost is pro -rated under the new contract. Tallmantz states this is due to unanticipated losses in early replacement that they can no longer absorb. (2) In previous years, incidentals, such as routine touch -up painting and replacement of searchlight bulbs, were included in the hourly rate. As noted, these will be additional costs under the new contract. The charge for painting is due to prohibition of painting at the airport site, necessitating outside contracting. The replacement of items such as searchlight bulbs are again losses that Tallmantz is unwilling to absorb. r 0 a To: City Manager From: Chief of Police Subj: Helicopter Maintenance Contract November 2, 1979 Page 2 (3) Last year's contract included gas and oil in the hourly rate of $30.60. This year's rate of $34.00 does not include fuel or oil, so the actual cost per flight hour will increase substantially. (The helicopters burn between seven and eleven gallons of aviation fuel per hour, at a current cost of $1.20 per gallon.) In August of this year, a meeting was held with Mike Mannix and Bob DeSantis of Hughes Helicopters to evaluate Tallmantz' maintenance competence and cost levels. It was their opinion that Tallmantz provides very competent maintenance and that their service rates were mid - range. The only other authorized Hughes service centers in the Southern California area are: 1. Alex -Air, Torrance Airport 2. Flight Trails, Palomar Airport 3. Western Air, Rialto Airport 4. Heli- Flight Systems, Long Beach Airport Preliminary discussions were held with Heli- Flight Systems at Long Beach regarding cost. Their maintenance cost is very high. They will contract for labor costs only at $25.00 per man -hour during normal working hours, and $36.00 per man -hour after 1730 and on weekends or holidays. Parts cost would be an additional, non - contractual charge. Even were their maintenance rates lower, the distance from the City to their facility would make its use costly and unwieldy. I recommend acceptance of the proposed contract with Tallmantz Aviation. Charles R. Gross Chief of Police/ CITY OF NEWPORT BEACH NOV 12 1979 OFFICE OF THE CITY MANAGER By the CITY COUNCIL September 27, 1979 CITY OF I!1>iWWR7 MACi TO: CITY MANAGER FROM: Assistant to the City Manager SUBJECT: HELICOPTER MAINTENANCE AGREEMENT I spoke to the City Attorney's Office regarding the status of the above - referenced contract. A copy of the contract has been transmitted to Tallmantz for review, via the Police Department. Following their review and approval, the matter 'll be scheduled for an upcoming Council Agenda by the Attorney's Office fc4,,iadovtij^iof a resolution. Glib cc: -i y Clerk Ci y Attorney Lt. Blitch CITY OF NEWPORT BEACH POLICE DEPARTMENT OCT 1979 September 10, 1979 By 1h. Cily COUNCIL CITY OF 149pORT "M TO: City Manager FROM: Administrative Division Commander SUBJECT: HELICOPTER MAINTENANCE AGREEMENT A copy of a helicopter maintenance agreement dated May 31, 1979, from Tallmantz Aviation, Inc. was sent to your office some time ago, and we assumed that our approval was all that was necessary for its being placed on the City Council agenda. We now understand, however, that a cover letter is necessary for its inclusion. We agree to the terms as set forth by Tallmantz and trust that this notice is sufficient for the agreement's being put into effect. Wayne Conn lly, Ca ain Commander, Administrative Division //- a (co r-" HELICOPTER MAINTENANCE AGREEMENT THIS AGREEMENT, made and entered into this /6 Z, day of )L (- - , 1979, by and between the CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City," and TALLMANTZ AVIATION, INC., a California corporation, hereinafter referred to as "Tallmantz "; W I T N E S S E T H: WHEREAS, City has purchased one (1) Hughes helicopter to be used in connection with its police and law enforcement faci- lities, said helicopter bearing number N9627F and having serial number 040; and WHEREAS, City desires to have said aircraft serviced, main- tained and inspected in accordance with FAA regulations and requirements; and WHEREAS, Tallmantz is equipped to perform the services as set forth in this Agreement, and desires to do so; and WHEREAS, the parties hereto wish to set forth their rights, duties and liabilities hereunder, NOW, THEREFORE, the parties hereto agree as follows: 1. PAYMENT FOR SERVICES The prices to be paid to Tallmantz for services to the City to be performed hereunder shall be as follows: $34.00 per flight hour. Any change in the hourly rate shall be approved by a resolution of the City Council. For the above hourly rate, Tallmantz agrees to perform the following services: A. Inspection and Maintenance At the factory recommended inspection times, the aircraft will be brought to Tallmantz for the appropriate inspection and required maintenance. All other unscheduled maintenance shall be performed at Tallmantz within a reasonable time, considering the type of service which the police kv102979 N N helicopter renders the community, and considering the practical operational limits of Tallmantz. However, on -site field repairs shall be made when necessary to keep the aircraft operational, or when certain repairs are required before the aircraft can be flown. The ferry time to and from Tallmantz may be performed by customer's personnel. Otherwise, labor to perform these operations is included in the hourly rate. B. Parts Maintenance replacement parts, needed as a result of ordinary wear and tear, shall be included as part of the hourly rate. (In addition to, but not limited to, maintenance replacement parts, there shall be included within the hourly rate ANY hardware, special oils and hydraulic fluid, tail rotor boots, main rotor boots, tail rotor bumpers, tangwashers, "0" rings of all types, gas- kets of all types, small roller bearings, snap plugs, NAS and MS fittings and cables, springs of all types, seals of all types, fabric ducts of all types, all fuses; plastic components will be limited to instrument console parts rotating beacon supports, and "V" belt inspection covers. Only damages or repairs not resulting from ordinary wear and tear may be charged in addition to the hourly rate at list price for labor and parts. C. Limited Life Replacements Except as specified hereinafter, all limited life items shall be replaced or overhauled, at the manufacturer's or goverment regulated replacement time, at no charge, inclu- ding labor to make the replacements in accord with standards established by the Federal Aviation Administration. -2- D. Engine Overhaul and Enginer Change Agreement The labor to overhaul, remove and install the engine at TBO is included in the hourly rate. The normal and usual replacement parts, as included in Lycoming's Engine Overhaul Kit, are also included. 2. ITEMS AND SERVICING NOT UNDER THE HOURLY RATE The performance of the following services shall be exclusive exceptions to service under the hourly rate: A. Painting B. Servicing Special Police Equipment (defined as that extra helicopter equipment which a police depart- ment or like peace - keeping agency would use exclusively in its peace- keeping and public service functions); specifically, the searchlight, except that the 100 amp alternator shall be replaced under the terms of "1" above, at 1000 TBO, and except that replacement short of 1000 TBO may be pro- rated. C. Pro- Ration of Cost for Parts shall apply in the following circumstances: (1) Engine change before TBO (1000 hours); (2) Rotor blades before planned retirement (5500 hours); (3) Other timed life items which do not last their scheduled times. D. Cost of Fuel and Oil is not included in the hourly rate. 3. INVOICING It is understood and agreed by and between the parties hereto that Tallmantz shall base its billing at the above hourly rates upon the time recorded from engine instruments within the above numbered aircraft, and that City shall be invoiced monthly, with the amount to be based upon the time from the engine instruments and the hourly rate agreed upon herein. -3- W. M lil City Clerk, 3300 Newport Boulevard, Newport Beach, California 92663. The policy shall include a Severability of Interest (cross - liability) clause and shall be primary and non - contributing with any other insurance available to the City. The insurance afforded by this policy shall not be invalidated as respects the interest of the City by reason of any breach or violation of any warranties, declarations or conditions contained in the policy. Said policy shall provide policy limits in the amount of $5,000,000 for any one occurrence, bodily injury and property damage combined, including pilot, officers and passengers. 8. EXPECTED PURCHASE OF NEW POLICE HELICOPTER It is specifically agreed between the parties that upon lease - purchase of a new police helicopter for City, said heli- copter shall be included under this contract according to contract terms as if set out in full herein. Said contract and its terms shall automatically apply to servicing of the new police heli- copter upon Tallmantz's receiving notice of delivery of said new helicopter for police use. In the event that this agreement is terminated by either party, Tallmantz shall return to City all parts purchased and monies set aside for engine overhaul and replacement of limited /II -5- _ M M life items that have not been committed as of the date of termination. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed on the day and year first above written. ATTEST- City Clerk CITY OF NEWPORT BEACH A Municipal Corporation By Mayor TALLMANTZ AVIATION, INC. A Califorp-4 Corporation By By HRC /kv 10/29/79 RESOLUTION NO. 9677 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A HELICOPTER MAINTENANCE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND TALLMANTZ AVIATION, INC. WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain Helicopter Maintenance Agreement between the City of Newport Beach and Tallmantz Aviation, Inc.; and WHEREAS, the City Council has reviewed the terms and conditions of said agreement and finds them to be satisfactory and that it would be in the best interest of the City to execute said agreement, NOW,.THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. ATTEST: City Clerk ADOPTED this 12th day of November , 1979. kv 11/5/79