SR-10-B (4)
CfI.1:JK"l'1mm Santa
e
Monlca, California, September
-
(t(/~ ()tJl-03
14, 1981
TO: ~ayor and Clty Councll
FROM: Alrport Commlsslon
SUBJECT" Recommendatlon to Adoot a Resolutlon A~endlng Insurance
Requirements for Alrcraft Owners and Operators based at
Santa r10nl ca Ai rport.
I ntroduc ti on
Thls report presents informatlon regarding lnsurance requirements for air-
craft owners and operators based at Santa Monica Munic1pal Airoort and
recommends that Counc1l a~end these requirements by adoDtlnQ the attached
resolut10n.
Backgrouni
The Airport Commlsslon dlrected staff to prepare a report concerning
a revls;on to the Insurance reQulre~ents for aIrcraFt o~ners and op~rators
at Santa Monlca Municlpal Alrport. Staff lnvestlgated various alternatlve
lnsurance reqUlrements, gathered lnput from both the Clty Insurance
Consultant and Clty Attorney, and reported their flndlngs to the Alroort
Commlsslon at thelr ~eetlng on August 31, 1981"
~urrent Santa MonIca RequIrements
Santa Monlca Munlclpal Code Sectlon 10103 requires.
"l!ldemmty. The prlvlleges of uSlng the alrDort and lts faclllties
shall be condltloned on the assumption of full responslb,lity and
risk by the user thereof, and the user shall release, hold harm-
less and lndemnify the City, ~e~bers of the Clty Council~ Boards
and Com~lsslons, and offlcers and employees GO the Clty fro~ any
llablllty or loss resulting from such use. All alrcraft owners and
operators shall be covered at thelr expense by publlc 11ablllty
lnsurance in such amounts and terms as established and from tlme
to tlffie amended or revlsed by Resolutlon of the Clty Council."
lo-B
SEP 2 2 1981
Currently, all ancraft owners an_ required to carry publ1C llabllity H\SUrance
at thelr expense ln the amounts of SI00~OOO for anyone injury and 5300,000
for any lnJury more than one ln anyone accldent, and property damage insurance
10-8
SEP 2 2 1981
TO: Mayor and City Councll
e
Septe~be~ 14, 1981
e
-2-
in the amount of 5100,000 for anyone incldent incurred as a result of
operatlng the1r aircraft. These lnsurance requirements were set forth in
1957 and have not since been adJusted. The cost of accidents then was far
below today's lnflated costs. In a densely populated area such as Santa
Monlca w1th alr corrldors Wh1Ch have become increaslnqly crowded and heavily
congested, the opportunities for loss are increasing
Accordlnq to the insurance lndustry's statlstical data (upon WhlCh alfcraft
coverage and permlums are based) there are three rates based on the rlsk/
value of areas in WhlCh alrcraft operate. The Santa Monica area is among
the h1ghest rated (r1sk) area.
Wlth this in mind. it seeMS appropriate to recognize these dangers and
adjust the lnsurance requirements for owners and operators of alrcraft
at Santa Monlca Alrport to more accu~ately reflect the rlsk and cost factors
of today.
Proposed Requlrements
The Alrport Commlssion recommends the followlng insurance requlrements to meet
these current factors
*CSL
$1,000.000 (not including passenqer
bodlly lnJury)
50,000 Bodily InJury Per Passenger Seat
NOTE
CSL
combined slngle li~lt means that
coverage applles to any occurance
whether bodlly injury or property daMage
lS suffered.
TO' Mayor and Clty Councll
e
e Seotef'1ber 14 ~ 1981
-3-
PrernlUPlS
Pllots and owners of aircraft who are currently lnsured at the minlmum levels
referred to ln Sectlon 10103 of the Code pay a premlu~ of about S300 to 5350
per year. If the requlrements were ralsed to $1,000,000 CSL. the annual
premlUm would cost between ~540 to 5650. These figures are on the "hiqh" slde;
but they indlcate a premlum increase of from 80% to 85~ per year.
Recolllll1endatlon
The Alrport Commlss1on recomMends that City Counell aMend the lnsurance
requlrements for owners and operators of aircraft at Santa Monlca Airport
as set forth 1n thlS report by adoptlng the attached resolutlon.
PREPARED BY: JOHN JALILI
Actlng Alrport Dlrector
JACQUELYN KELLY
Adminlstratlve Assistant
AttachfTlent
....
e
e
D IS [RIEUT ION Of RESOLUTION # <:: 50 7
ORDIN1\;.\ICE #
CouncIl Meeting Date
f~ 2- i/
/, ~/!.
IO.~
Introduced:
Agenda Item it
Adopted:
VOTE'
Affirma tI ve:
Negative:
Abstain:
Absent:
/~L--iI
[~7 -C~~,/
o
O'
IJ .,'(
f /L -, /,,-, /2/u.:- ~.~
ORI Gl'~L .. to be sIgned, sealed and flIed 1 n Vaul t.
k~--L"~
'7
,.Sj--rL>:
.....
~(~--
U
Was It amended?
DISTRIBUTION:
/!'. ,
Department origInating staff report ( L{{'t..jj/\..r
CIty Attorrley ttI~w~~~)
Agency mentioned In document or staff report
)
)
-- - ,./
1 .
NEWSPAPER PUBLICATION (Date:
~~-
(certifIed?)
_J,/
/
] -.1-/
Subject fIle (agenda packet)
Counter fIle
Alrpoct
.;(
ParkIng Auth.
Others'
AuJltorum
Personnel
BuddIng Dept.
Planning
Jn~'lron, Servo
Police (en-
forcemerlt? )
}'lndTICe
PurchaSIng
rlre
RecrfParks
General Servo
TranspoTtation
Llbrary
Treasurer
~ldndge r
p:
Sl:ND J,.W(f' COPIES OF ALL ORDINANCES
TO CODED SYSTEMS Attn Peter M~61ea~e
PROFESSIONAL tENTER lotdl Others'
ROUTE 71
BRILLLE, NEN JERSEY 08730
TOTAL COPll:S
~3
'_. f
e
e
eM- ,}K:mmm
City Council Meet,ng 9/22/81
Resolut,on ~o_ 6367
(C,ty Counc,l Senes)
A RESOLUTION OF THE CITv COUNCIL
OF THE CITY OF SANTA MONICA
ESTABLISHING INSURANCE REQUIRE~ENTS
FOR OWNERS AND OPERATO~S OF AIRCRAFT
BASED AT SANT~ ~ONICA AIRPORT
PURSUANT TO SECTION 10103 of the SMMC.
WHEREAS, Sect, on 10103 of the Santa ~on'ca ~unlclPal Code sets
forth lnde~nlflcatlon requlre~ents for owners and ODerators of alferaft
based at Santa ~onlca A,roort. a~d
t~~EREAS, Santa '10nlca '1unlCloal Sect,on Code SectlOn 10103 allO\'/s
t~e Clty Counell to establ,sh Insurance requlre~ents for owners and o~erators
of alrcraft based at Santa Mon,ca ~lrnort bv resolut,on,
~o~. THEREFORE, THE CITY COU~CIL OF T~E CITY OF SA~TA MO~ICA 80E5
~EREB~ RESOLVE AS FOllOWS:
Section 1. All a,rcraft owners and ooerators s~311 be covered
at the,r expense by publ,c l,ab,l,ty ,nsurance In the a~ounts of $1,000,000
CO~bln€j S,nqle l,mit, excludlnq bod,ly ,njury to passenqers In the aircraft,
plus S50,000 bod,ly InJury coverage per passenaer seat, for one InCIdent
lncurred as a result of operatlng treir a,rcraft.
Sect,on 2. The C,ty Clerk shall cert,fy to the adootion of thlS
resolution and thenceforth and thereafter the same shall be in full force and e~fect.
APPROVED AS TO FORM:
R~.~~
Cl ty Attorney
~
..
e
e
ADOPTED AND APPROVED THIS
22nd
DAY
OF
September
, 1 981.
-/) /
. I I ,1 /(
. j /~ {. t
.' //, . ;'<--/1 ,.
; {J.-r' / ~ I
L r_.j~/, ~U~ // . ~.~;rit~
/nA'YOR U
V
I HEREBY CERTIFY THAT THE FOREGOI~G RESOLUTION
NO. 6367
HAS DULY ADOPTED BY THE CITY COUnCIL OF THE
CITY OF SAilTA rtO:nCA AT A REGULAR t1EETI~IG iHEREOF HELD ON
Septeryber 22
, 1 98 1 B Y THE F 0 L L 0l1I t~ G C 0 U fl elL V 0 T E :
AYES: COUNCILMEM5ERS: Conn, Edwards, Reed, Zane,
~ayor Yannatta Goldwav
UOES: COUilCIU.1E11BERS: Kone
ABSE;n: COUnCIU1EI1BERS: Jennings, Press
ABSTAI~: COU~CILMEMBERS: Kone
ATTEST:
/7 L,. i .! /
L'';~~1 7/i~~'cc.
CITY CLERK