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Agenda 07/09/2013 Item #16E6 7/9/2013 16.E.6. EXECUTIVE SUMMARY Recommendation to approve an aircraft liability insurance limit for tenants engaging in aircraft hot refueling activities at Collier County airports in the minimum amount of $1,000,000. OBJECTIVE: To receive approval of a minimum aircraft liability insurance limit for aircraft hot refueling activities at Collier County airports in the amount of$1,000,000. CONSIDERATIONS: At the June 11, 2013 commission meeting, the Board directed the Risk Management Department to investigate the minimum insurance limits required by other airport operators pertaining to the hot refueling of aircraft by tenants of those facilities. The Board directed staff to return with a recommendation regarding the minimum limits of aircraft liability insurance that tenants engaging in hot refueling should maintain. These limits would be incorporated into future leases with the Collier County Airport Authority. Staff contacted the airport operators referenced by Commissioner Henning's staff in the June 11th presentation. Of the five airports contacted, only Suwanee Airport indicated that they have a minimum requirement. They indicated that they require a limit of$1,000,000. Staff also contacted the County's aviation broker, Tom Kaiser of Nation Air Insurance Agency to survey several of their agricultural applicator clients as to the limits they carry. Mr. Kaiser surveyed eight operators. Five of the eight carried a limit of $1,000,000. Mr. Kaiser stated that some carriers may not offer limits greater than $2,000,000. He recommended as follows, "Based on the attached information, I believe that Collier County should require their Aerial Applicator clients carry a minimum of$1,000,000 liability limit. While requiring a higher limit of$2,000,000 would provide you additional protection, it may prevent future tenants from considering operations from your airports." Based upon these findings and the recommendation of Nation Air Insurance Agency, staff recommends that a minimum aircraft liability insurance limit for aircraft hot refueling activities at Collier County airports in the amount of$1,000,000 per occurrence be established. • FISCAL IMPACT: There is no fiscal impact associated with this item. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires majority vote for approval. —CMG RECOMMENDATION: It is recommended that the Board approve a minimum aircraft liability insurance limit for aircraft hot refueling activities at Collier County airports in the amount of$1,000,000 per occurrence. PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management Department Packet Page-1231- 7/9/2013 16.E.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.6. Item Summary: Recommendation to approve an aircraft liability insurance limit for tenants engaging in aircraft hot refueling activities at Collier County airports in the minimum amount of$1,000,000. Meeting Date: 7/9/2013 Prepared By Name: WalkerJeff Title: Director-Risk Management,Risk Management 6/25/2013 11:53:20 AM Submitted by Title: Director-Risk Management,Risk Management Name: WalkerJeff 6/25/2013 11:53:22 AM Approved By Name: pochopinpat Title: Administrative Assistant,Facilities Management Date: 6/25/2013 12:15:32 PM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Date: 6/25/2013 3:23:15 PM Name: PriceLen Title: Administrator, Administrative Services Date: 6/26/2013 11:50:40 AM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Date: 6/28/2013 9:02:33 AM Packet Page-1232- 7/9/2013 16.E.6. Name: GreenwaldRandy Title: Management/Budget Analyst,Office of Management&B Date: 6/28/2013 10:51:56 AM Name: KlatzkowJeff Title: County Attorney Date: 6/28/2013 12:01:07 PM • Name: OchsLeo Title: County Manager Date: 6/30/2013 3:39:29 PM Packet Page-1233- June 13, 2013 7/9/2013 16.E.6. Aerial Applicator Liability Limits Survey Turbine Aircraft flleets Max Limit of State #of AC Liability Chemical Liability Carrier FL 2 $ 1,000,000 $ 500,000 USAIG FL 4 $ 500,000 $ 500,000 Allianz FL 3 $ 1,000,000 $ 500,000 USAIG TX 10 $ 1,000,000 $ 500,000 PAM WI 6 $ 2,000,000 $300k/$600K/$300K Allianz NE 26 $ 5,000,000 $ 300,000 Chartis NJ 3 $ 1,000,000 $ 300,000 Chartis NE 2 $ 1,000,000 $ 500,000 USAIG Presented by Tom Kaiser, NationAir Aviation Packet Page-1234-