HomeMy WebLinkAbout~Master - Insurance requirements for airport hangar lease agreements RESOLUTION NO. 01-432
RESOLUTION APPROVING CHANGE IN
INSURANCE REQUIREMENTS FOR
AIRPORT HANGAR LEASE AGREEMENTS
FOR THE CITY OF AMES, IOWA
WHEREAS, the current Airport Hangar Lease Agreements provide, in Paragraph 7, that the
lessee shall procure General Liability Insurance in the amount of$3,000,000 combined single limit;and,
WHEREAS, staff has reviewed the existing insurance requirements in the leases and has
consulted with several insurance agents,as well as other risk managers who have municipal airports that
lease lessor-owned hangars, and it appears that the current insurance limit is higher than necessary for
the potential risk involved; and,
WHEREAS,the lessees who are involved lease the hangars from the City(lessor)for their own
personal use,and they are not currently involved in any commercial activities (fueling, aircraft repair,
etc.) at these locations; and,
WHEREAS, all third persons who might visit the sites are invitees of the lessee; and,
WHEREAS, the risk presented to the City does not justify requiring $3,000,000 of coverage,
and$1,000,000 would be a more reasonable amount; and,
WHEREAS,the proposed change in the insurance requirement only pertains to three private-use
leases and does not include lease holders who perform commercial business operations as part of their
operations.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that
the amount of general liability coverage required in the Airport Lease Agreement be reduced from its
present level of$3,000,000 to $1,000,000 of coverage.
ADOPTED THIS 25th day of September, 2001.
Diane R.Voss,City Clerk Ted Tedesco,Mayor
Introduced by: Goodhue
Seconded by: Hoffinan
Voting aye: Campbell, Cross, Goodhue, Hoffinan, Quirmbach, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 25th day of September, 2001.