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3.1.5 Develop and recommend to City Manager: <br /> a. Access and Security Plans for both airside and landside areas of the Airport <br /> including perimeter security,facilities security,parking lot security and disaster <br /> security on the Airport, exclusive however, of law enforcement responsibilities. <br /> The Operator will report breaches in security and threats of such breaches to the <br /> City Manager and the San Marcos Police Department immediately upon <br /> discovery. The Operator will conduct a review of the Airport's security with <br /> the City to identify areas of risk and measures for improving security as needed. <br /> In addition, the Operator will work with City emergency services to assist in <br /> developing and maintaining Airport emergency plans in cooperation with the <br /> City's Police and Fire Departments for all Airport related emergencies. The <br /> Operator may change the locks and/or security codes on any or all of the <br /> maintenance facilities and equipment; provided a duplicate key and/or security <br /> codes for all changed locks will be promptly provided to the City. All keys <br /> and/or security codes will be identified by tag or location. <br /> b. Operating Plan. As part of the City's budget process the Operator will work <br /> with appropriate City staff to identify: (i) upkeep reasonably needed at the <br /> Airport for the next fiscal year, based upon the Operator's prudent assessment <br /> and analysis,which will be used for budget policy issues,capital outlay requests <br /> and projects for the City's Capital Improvements Plan ("CIP"); (ii) projected <br /> changes in revenues or expenses which will affect the assumptions used for in <br /> the Airport budget preparation; and (iii) proposed staffing levels changes of <br /> full, part-time, and seasonal employees. The Operating Plan will be used to <br /> develop the Annual Operating Budget and City's Capital Improvements Plan <br /> ("CIP") as adopted or amended. <br /> c. Other Plans. Operator shall prepare such other plans or reports referenced <br /> throughout this Agreement for review and consideration of approval by the City <br /> related to the operation, maintenance or development of the Airport as may <br /> from time to time be requested by the City at no additional cost. <br /> 3.1.6 Coordinate regular inspections of Airport and provide maintenance services. <br /> 3.1.7 Coordinate with the City and individuals and other interested entities regarding <br /> special events/functions to be held at or near the Airport. <br /> 3.1.8 Obtain and maintain all required licenses, certificates, registrations, etc. for the <br /> Airport. <br /> 3.1.9 Report to the City Manager,the Airport Board and other parties as requested by the <br /> City Manager regarding Airport operating statistics, incidents and issues. <br /> Page 10 of 34 <br />