According to her special ability, "Gates and monsters cannot appear in Kate's location…" There are a number of issues arise from these eight words. First, there have been those who have posted based on the premise that 'gates' and 'monsters' were somehom coupled together…so that only during the Mythos Phase this occurs. Others have pointed to the word 'location' ~ this is often misconstrued in this case as anyplace on the board marked by a circular space…not to include the streets. It includes anyplace in the neighborhoods, Other Worlds, etc.
Gates may not appear. Thus, if a Mythos Card reveals a gate where Kate's standing, nothing happens…no gate, if there's a gate and she's there ~ no Monster Surge…nothing. If, during the Arkham Encounter Phase, she draws a card which states. "A monster appears" ~ again, nothiong happens. Finally, if she's in the street and a Mythos card reveals "an ancient ship releases two monsters into the street…nothing happens. Finally, if she's in the Dreamlands and "a hideous monster appears" is drawn…again, nothing.