HomeMy Public PortalAboutAB 07-38 East Hangar Project Lease Liability Ins
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MCALL CITY COUNCIL 216 East Park Street
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AGENDA BILL MCall, ID 83638
Number AB 07-38
Meeting Date March 8, 2007
AGENDA ITEM INFORMATION
Approvals: Department/ Initials Remarks
SUBJECT:
Committee/Individual (Originator/
Support)
Liability Insurance Requirement
Mayor / Council
Airport East Hangar Project (EHP)
City Manager
Treasurer & City Clerk
Community Development
Police Department
Public Works
Golf Operations
Parks & Recreation
Airport Originator
COST IMPACT: None
Library
FUNDING SOURCE: None
City Attorney
Grant Coordinator
TIMELINE: ASAP
Other
SUMMARY STATEMENT:
A standardized lease was approved by City Council for a “Blanket Assignment & Assumption of
hangar leases in the East Hangar Project (EHP)” under AB 06-184. The Insurance requirement
under paragraph 23 Insurance, paragraph A. requires public liability insurance coverage for an
amount not less than $2,000,000.00 Combined Single Limit for bodily injury and property damage.
Hangar owners have found that $2,000,000 is not readily available, and where it can be found it
costs an additional $500 to $1,200 to obtain.
Discussions with McCall’s insurance account executive indicate that at this time, $1,000,000 in
liability insurance for each hangar owner is reasonable. He also validated the claims of the
hangar owners that $1,000,000 is common, but that $2,000,000 is uncommon, difficult to “write”,
and required an additional cost of $500 to $1,200 per year additional premium.
The Airport Advisory Committee (AAC) recommends that a blanket change be made to paragraph
23. Insurance, subparagraph A, of the EHP leases to change the first sentence to read “Public
liability insurance coverage for a total amount of not less than $1,000,000.00 Combined Single
Limit for bodily injury and property damage,” and adding a sentence to read “On each fifth year
(5,10,15, etc.) the McCall City Council may elect to adjust the liability insurance requirements
based on the then current needs of the City.”
A copy of the standardized EHP lease is attached.
RECOMMENDED ACTION:
Recommend paragraph 23, Insurance, subparagraph A, of the EHP leases be changed to
require liability insurance in the amount of $1,000,000.00.
RECORD OF COUNCIL ACTION
Meeting Date ACTION