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Houston County tables airport courtesy-car lease with City of Caledonia pending insurance and usage rules

Houston County Board of Commissioners · March 27, 2026

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Summary

The board tabled a proposed five-year lease for a county-owned courtesy car at the Houston County Airport after staff and commissioners raised unresolved questions about insurance coverage, who would set driving limits and how the city would administer keys and lockbox access.

County staff asked commissioners to approve a five-year lease under which Houston County would provide a used county vehicle and the City of Caledonia would assume insurance and control keys and administration for a courtesy car at the Houston County Airport. Brian (staff) said municipalities typically provide insurance through the League of Minnesota Cities for city-owned airports and the city had approved the agreement on its side.

Commissioners raised a series of operational and liability questions: which insurance would respond if an incident exceeded a driver's policy, what city rules would limit where the car could be driven, where the vehicle would be stored, and who would control access (a lockbox and combination were discussed). Commissioner discussion emphasized the need to see the city's usage rules and insurance confirmation before committing the county vehicle.

One commissioner rescinded an earlier motion to approve in order to move to table the item; the board voted to table the lease and request additional details from the City of Caledonia and sample agreements from other regional airports. Staff said the vehicle would be an older Yukon previously used by highway or sheriff's offices and that the city would be responsible for administrative details and insurance.

Next steps: County staff will obtain the city's finalized rules for flyers, insurance confirmation and sample contracts from comparable airports and bring them back for consideration.