SR-800-001-03 (3)
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Santa t'lon;ca, (dl ItOI., July 23, lSJdl / OJ
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A1rport Commission and C1ty Counc1l
JUL 2 B 1981'
FROM: Acting A1rport Director
SUBJECT: Alfcraft Insurance Requirements
Introductlon
This report transmlts information concern1ng aircraft insurance requlrE~ents at
Santa Monica Airport, and recowmends reVlSlons 1n the required public llabl1ity
lnsurance for aircraft owners and operators.
Insurance R~quirements
Section 10103 of the Santa Monica Municipal Code establishes the insurance
requirements for aircraft owners and operators as follows:
liThe pri v i1 eges of us i ng the airport and 1 ts fac 11 iti es sha 11 be
conditioned on the assumption of full responsib1lity and rlsk
by the user thereof, and he shall release, hold harmless and
inde~nlfy the City, members of the Clty Council, Boards of Com-
misslons, its offlcers and employees from any llab111ty or loss
resulting from such use. All aircraft owners and operators shall
be covered at their expense by publlC llabillty insurance in the
amounts of $100,000 for anyone injury and $300,000 for any injury
more than one 10 anyone acc1dent, and property damage insurance
in the amount of $100,000 for any olle incident lOcurred as a
result of operating thelr alrcraft."
The City Attorney has ruled that the POllCY shall cover all forms of liabllity
or damage wlthout excluslon and shall include, but not be limited to occupants,
passengers in-flight and on the ground coverage.
The policy shall show the City of Santa Monica named additional 1nsured, include
the above "hold harmless clause", and be maintained in full force and effect V>/lth
a IS-day notice of cancellation to certlficate holder.
The general requirements were adopted on January 8, 1957 and have not been amended
since. Because of obvious changes in our economic environment in past yearst a
revlsion of the minimum aircraft insurance requ1rements should be made to reflect
current rlsk and liabllity exposures.
Monitgring and Review of Insurance Certificate~
A valid copy of the Certificate of Insurance reflecting insurance requirements
must be on file in the Ai~port Director's Office for aircraft based at the Santa
":orl1ca ilUnlClpal f\lrport. (Tl"anslt airc,"aft are not requlred to sho~1 rrcof of
lnsuran~e.)
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JUL ~ d )l;I81J
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:"~rpJrt COnnl$SiLlfl ., {I[Y Councll
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July 23, 1981
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Prlor to February, 1981, aircraft lnsurance requirements were monitored on a
r'onthly basis. A current log of all City-based and FBO- based alrcraft ':Jas
malntalned. The registration log was checked agalnst Cert1ficates of Insurance
to verify that the policy contained requ1red indemnity, hold harmless, and
approprlate notice of cancellation clauses. Any reglstered alrcraft not having
adequate coverage was requested to flle a valid certlficate of renewal of
coverage. lack of response was grounds for suspendlng airport operatlng
pn vll eges .
It has come to my attention that the contlnuatlon of monthly reVlew is problematic
because of current staffing levels. Slnce February, 1981, the number of airport
cler1cal personnel has decreased. One clerical positlon was transferred to the
Personnel Department. Two CETA clerical personnel were deleted because of
reduct10n 1n City CETA funds. One Accounting Clerk II position remains f111ed
at the airport. Because of personnel constra1nts, monitoring of insurance
certificates has not continued on a monthly basis.
It 1S estimated that about 160 hours of cler1cal aSs1stance w111 be required to
brlng the procedure to an acceptable level. The C1ty Manager's Office has already
taken steps to complete this work. Thereafter, lt will requlre the attent10n of
one half-tlme lnd1vidual to ma1ntain the system on a monthly bas1s. It should
be noted that present A1rport clerlcal staffing consists of one (1) Accounting
Clerk II. ThlS indlvidual has assiml1ated the duties of a clerk and 2 CETA
personnel who were not replaced. It is not posslble for thlS person to maintain
a routlne ~onltorlng of insurance requlrements.
Recommendation
It is recommended that staff be authorized to hire one half-time clerical person
at the airport to continue the process af monitoring insurance require~ents.
~his requires an appropriation from the Airport Fund (33 Fund) for salary expense
ln the amount of $5,500. (One Intermedlate Clerk, half-time for one year.)
In addit1on. it is recommended that the ffilnimum insurance requirements for owners
and operJtors of aircraft be revised in conjunction with a supplemental report
to be forwarded from staff on alternative lnsurance levels.