Airport Board Operations Committee Tuesday, August 13, 2024 09:30 AM Airport Alaska Room/Zoom

https://juneau.zoom.us/j/85783208621?pwd=pd0Nn7DPn1KB53xYFV9xFztpRoabbC.1
or Dial: 1-833-548-0276 Meeting ID: 857 8320 8621 Passcode: 342015

TO TESTIFY: CONTACT PAM CHAPIN, 907-586-0962
BY 3:00 PM ON AUGUST 12, 2024

A.CALL TO ORDER

B.ROLL CALL

C.BUSINESS

1. 1.Tenant/User Insurance Requirements Policy Change (Attachment #1, #2, #3). The Airport, as part of the City & Borough of Juneau (CBJ), receives an annual independent insurance review for all airport operations (leases, operations, facilities, vehicles, fueling, Aircraft Rescue/Fire Fighting (ARFF), Federal Aviation Administration (FAA)/Occupational Safety & Health Administration (OSHA)/ Americans with Disabilities Act (ADA) code compliance) and provides an annual comprehensive report. See January 26, 2024, CHUBB Insurance Report link:

   https://juneau.org/wp-content/uploads/2024/06/Juneau-International-Airport-Chubb-Risk-Engineering-Report-092823.pdf 

   The Airport uses this report to correct discrepancies itself and alert its tenants/users regarding their discrepancies. One of the biggest deficiencies is the insurance requirements for tenants. While the Airport works with Risk Management on new agreements, leases and contracts, the older leases and contracts have not been reviewed and updated in many years based on CBJ insurance requirements and industry standards. Chelsea Swick, CBJ Risk Management Officer, met with the Airport staff and called other (similar) Airports for those industry standards. The attached memo (Attachment #1) from Ms. Swick discusses the general liability insurance minimums that Risk intends to implement for the lowest minimum requirements and increase the standards in accordance with its Underwriter.  Comprehensive general liability minimums should be set at $1M (from the current $250K), which is still on the low end of minimums. This is a start to the review of all insurance requirements, but it is an important first step.

   The Airport has two areas that addresses tenant insurance outside of the lease; the Leasing Policy and Minimum Standards. The Airport has proposed updates to the Leasing Policy (Attachment #2) to allow for required insurance updates and needed for tenants based on industry standards for insurance. Commercial tenant/users have higher minimums commensurate with the type of activity. By Board approval, tenant insurance requirements would be an update of leasing requirements and sent out to tenants to let them know the lowest minimum for comprehensive general liability coverage. The Leasing Policy is the ‘vehicle’ for how the Airport Board can adjust insurance (and other) lease requirements. The Airport will be implementing the requirements with its tenants through amendment/ notification based on their individual policy renewal date.  Additionally, a clause allows for adjustments in minimums as circumstances arise (per CBJ Risk memo), so the CBJ and Airport are not on the line for coverage through the term of the lease. Amendments to insurance requirements would be sent to tenants to update when their insurance policy comes up for renewal (annually). The Minimum Standards (Attachment #3) also includes minimum insurance requirements, but many minimum insurance requirements were left as ‘pending’. The table for these needs to be updated by Risk, or simply state that insurance will be reviewed by Risk and adjusted as needed to ensure the CBJ/Airport has sufficient coverage and liability. Changes to the Minimum Standards would need to be approved by the Board, but it is exclusive of the Leasing Policy language that would allow changes established by Risk. Staff defers to the Risk Manager and Operations Committee for changes to the Minimum Standards Insurance Requirements.

   Operations Committee Motion: “Approve the updates to the Leasing Policy which includes provisions for adjusting insurance minimums and language and forward to the Airport Board.”

2. 2.Taxilanes Paving and Unpaved Hangar Areas. As some may remember, the Airport had a Capital Improvement Project (CIP) scheduled for design this year (FFY24) that would have paved the taxilanes on the east and west general aviation areas of the Airport. The Airport had completed the environmental and submitted an FAA pre-application for an estimated $11M CIP project grant. Upon FAA review, these areas are not fully eligible for federal funding. Only a 35’- 40’ swath down the center (taxilane) would be eligible, and the remaining (majority) of the ‘taxi’ area is the responsibility of the tenant and Airport. The FAA stated that most airport leases extend to the center taxilane, and tenants typically pay for the improvements up to the eligible taxilane. This CIP was pulled from the program until the Airport could formulate a plan for paving the entire area. This is informational only until a funding plan with local/tenant funds is known.

3. 3.Aircraft Wash Station. A recent project added an aircraft wash station in the northwest area of the airport. In the short duration that the wash station was ‘open’, the airport witnessed more than aircraft being washed here – everything from boats, vehicles and water sports equipment. This was shut down for a few reasons: the use for items other than aircraft, the Airport’s Stormwater Pollution Prevention Plan (SWPPP) needs to address the runoff from this; and the cost to pay for the use (water) and maintenance.  The Airport will need to add this into the SWPPP program (water only), develop a use fee, and somehow regulate what gets washed.

4. 4.General Aviation Impacted by Transient Aircraft (Attachment #4). There is a lot of congestion and transient aircraft in the area near Aero Services. Jet blast toward smaller aircraft and hangars impacts general aviation users. On occasion Aero Services will park a fuel truck in front of smaller GA traffic so the jet blast won’t blow the smaller airplane over. Additionally, prop blast from Alaska Central Express’ (ACE) Beech 1900’s cargo operations blast GA operations when they complete their 180 degree turn to position at Aero Services (on the west side of Aero for offloading). The Airport would like to see how jet/prop blast can be mitigated in this area. Many times, aircraft are parked with engines pointing back directly into the hangars (50’ away). Discussions at meeting.

5. 5.Private/Transient Helicopters (Attachment #4). Transient helicopters have one spot in the E-1 area. Generally, that is kept for helicopters clearing U.S. Customs and Border Protection, then they must relocate to permanent parking. In general, mixing with fixed wing aircraft is not a good/safe practice due to rotor wash. The Airport needs to establish transient helicopter parking in an area that can be serviced by an FBO, and where the helicopter will not conflict with fixed wing. Discussions at the meeting.

D.NEXT MEETING DATE

E.ADJOURNMENT

ADA accommodations available upon request: Please contact the Clerk's office 36 hours prior to any meeting so arrangements can be made for closed captioning or sign language interpreter services depending on the meeting format. The Clerk's office telephone number is 586-5278, TDD 586-5351, e-mail: city.clerk@juneau.gov.