Title
Airports, a division of the Chief Administrative Office, with concurrence of the Board of Supervisors' Ad Hoc Committee on Airports, recommending the Board approve revisions to Board of Supervisors Policy F-10 Airports - Minimum Standards for Commercial Aeronautical Activities for El Dorado County Airports, adjusting the insurance requirements for ground and hangar lessees.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On December 10, 2024, the Board approved a comprehensive update to Board of Supervisors Policy F-10: Minimum Standards for Commercial Aeronautical Activities for El Dorado County Airports (Legistar file 24-1891).
The insurance requirements were updated pursuant to Risk Management guidance to increase liability coverage requirements from $500,000 to $1,000,000. For those entering the restricted area of the airports’ property with a personal vehicle, which is highly desired by all tenants, the County previously required proof of auto insurance coverage meeting or exceeding $100,000 bodily injury limits per person, $300,000 bodily injury limits per occurrence, and $50,000 for damage to the property of other people ($100,000/$300,000/$50,000). The update to the F-10 policy increased these requirements to $250,000/$500,000/$500,000.
These higher coverage limits have been difficult for some tenants to obtain in the insurance marketplace, as some insurance companies do not provide this coverage. In order to remove barriers to executing new leases, it is recommended that the coverage requirements for ground leases for personal use and county-owned rental hangars be reduced to the previous levels as part of this Policy.
Aircraft liability insurance and workers compensation insurance will remain at the same requirements. Commercial operators will continue to be reviewed for appropriate coverage on a case-by-case basis. Language in the policy has also been updated clarify the requirements for the additional insured endorsement and the use of an umbrella policy, which are confusing or vague in the current version. There are no other changes proposed for the F-10 policy.
ALTERNATIVES
The Board may choose to provide alternative direction to staff regarding the proposed recommendations for the updated policy.
PRIOR BOARD ACTION
Legistar file 24-1891 - December 10, 2024 - The Board:
1) Approved the Final Passage (Second Reading) of Ordinance 5213, Planning and Building Department Fee Schedule;
2) Adopted and authorized the Chair to sign Resolution 188-2024 establishing an updated Airport Division Fee Schedule (Cont. 11/5/2024, Item 32);
3) Approved revisions to Board of Supervisors Policy F-10 Airports - Minimum Standards for Commercial Aeronautical Activities for El Dorado County Airports, including the revised title of "Board of Supervisors Policy F-10 County-Owned Airports - Regulations, Security, and Leases";
4) Repealed Board of Supervisors Policies F-5 Airports - Hangar Site Allocation, and F-9 Airports - Portable Hangar Color, which have been incorporated into F-10 and are no longer needed as stand-alone policies;
5) Repealed Resolution 052-2018, County Airport Advisory Committee, dissolving the Committee; and
6) Directed the Airport Director to hold at least one annual meeting with the airport users, interested parties, and the District III and IV Supervisors.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
N/A
CLERK OF THE BOARD FOLLOW UP ACTIONS
Publish updated policy to the Board of Supervisors website.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Jennifer Franich, Deputy Chief Administrative Officer/Airports Director