HomeMy WebLinkAbout1981-04-21; City Council; 6133-5; Boat Insurance RequirementCITY OF CARLSBAD
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DATE : April 21, 1981
Dept. Head
City Atty .
City Mgr.
DEPARTMENT : Parks and Recreation*
Subject:
Boat Insurance Requirement' for Agua Hedionda Lagoon _ '
Statement of the Matter
City Council considered this issue at their meeting of April 7, 1981
and requested additional information. Specifically, information was re~^--
quested as to the possible effects of closing the lagoon, the possibility
of San Diego Gas and Electric amending their agreement to require the in-
surance, the cost to boatowners if the City obtains a blanket insurance
policy and the overall costs of the boating pro'gram.
The two major topics are discussed in the two staff reports. The report
on the budget (Exhibit 1) shows .that the. boating program will be self-
supporting next fiscal year with a reduction in the police service level.
If patrol service is reduced to five days a week, eight hours a day the cost
of the program will be $16,850 for next fiscal year which will be paid by
permit and launching fees. This year's costs amounted to $32,000, but this
included capital costs and extensive' patrol and overtime costs.
Staff has contacted San Diego Gas' and Electric and it was suggested that
their attorney contact our City Attorney to discuss the legal ramifications'
of amending the agreement. Closing the lagoon to power boats would affect
approximately 200 Carlsbad residents and 378 non-residents. Obtaining a
blanket policy would substantially increase permit fees (100% in the case of
non-resident annual permits). This option would likely meet with much pro-
test from boat owners and the State. Staff recommends going with the origina:
recommendation of- repealing the insurance requirement and adding a hold-
harmless agreement. There is no significant fiscal, impact.
Exhibits .
1. Memorandum to- .City Manager dated March 16, 1981.
2. Memorandum to City Manager dated April 13, 1981.
3. Sample hold-harmless agreement.
Recommendation
That City Council direct staff to prepare the necessary documents to
remove the $300,000 liability insurance requirement from the City Code and
add a hold-harmless agreement.
COUNCIL ACTION:
4-21-81 Council approved the staff recommendation.
MEMORANDUM
TO : Frank Aleshire, • City Manager
FROM • : David. Bradstreet, Parks and Recreation Director
DATE : March 16, 1981
SUBJECT: Budget for Lagoon Enforcement Program
BACKGROUND
Last year City Council approved $29,000 for the Agua Hedionda
Lagoon program. Estimated expenditures for fiscal year 1980-81
are $32,800. The overrun is the result of salaries and over-
time for providing police officers during heavy use times at
the lagoon. Because the existing program is not self-supporting,
staff has considered various alternatives to reduce costs.
RECOMMENDATION
It is recommended that the level of- police service at the
lagoon be reduced to eight hours per day, five days per week.
This is reflected in the 1981-82 budget submission for Ag'ua
Hedionda Lagoon. The schedule to be from Wednesday through
Sunday with Mondays and Tuesdays off except for holidays.
FISCAL IMPACT
If the level of service for police protection is reduced, the
program will be self-supporting. The proposed budget will be
$16,850 which is expected to be reimbursed entirely from income
produced at the lagoon.
1980-81 $32,800 (actual expenditures)
1981-82 16,850 (proposed)
ALTERNATIVES
Alternatives discussed related to making the program self-
supporting are:
1. Full police coverage (12 hours a day, seven days
a week).
2. Partial police coverage (8 hours a day, five days
a week).
3. Part-time/on call coverage using a beat officer
to respond to calls as needed.
U. Increase boat permit fees to cover current program
costs.
- 1 -
DISCUSSION'
Revenues, to date, from boat permits and launching fees are ap-
proximately $12,000 and it is expected by June 30, 1981 that
$17,000 will have been collected. Presently, the boating
program is approximately 50% self-supporting. The Police
Department has requested $21,000 for patrol salaries next year,
however, our department has asked for some alternatives for
enforcement hours.
In an effort to make this program self-supporting, staff has
considered raising the boat permit fees.' This alternative is
not recommended based on information from the Department of
Boating and Waterways that our fees are among the highest in
the state. We believe that, any increase in fees will further
reduce the number of boat users at the lagoon.
Since two-thirds of the cost of the program is made up of patrol
officer salaries, the Police Department was asked to provide
some enforcement service alternatives (see attached). ""The
Police Department's recommendation is that seven day, 12 hour
coverage be provided from May 1, 1981 to October 1, 1981 at a
cost of $21,000. The Parks and Recreation Department recommends
that the police coverage be reduced to five days a week, eight
hours a day for a cost of $11,000. The two days when lagoon
patrol would not be provided would be during'the middle of the
week when lagoon use is not-so heavy. Holidays and weekends
would have police patrol. This reduced level of service would
make this program self-supporting.
The alternative to provide only part-time/on-call police coverage
is not recommended because there are times when an .on-site patrol
officer is necessary.
COMMENTS
During heavy use times, between May and October, there may be as
many as 80 boats at the lagoon on a weekend day or holiday. The
police function is mainly prevention of potential safety problems,
Last season, three arrests were made (two drunks and one stolen
car suspect). Seventeen citations were issued. Approximately
half of the citations were for negligence and half for faulty or
missing equipment. It is unknown how many warnings or boat
inspections were actually given, but these are a large part of
the patrol officer's duties.
DLB:MDL:kap
cc: Bill Baldwin
Police Chief
Attachment
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MEMORANDUM
TO- David Bradstreet, Director n.TC o On anu> r> i j n L- DATE: 3-ZU-olParks and Recreation
FROM: Gene R. Kellogg, Captain
Police Department
SUBJECT: Lagoon Enforcement Program
The police department is currently planning coverage for this years
Lagoon Enforcement Program scheduled to begin May 1st. There are
three basic levels of service that can be provided by the police
department. Those levels of service are;
1. Full coverage from 0800 Hrs. to 2000 Hrs. seven days a week
using two full time officers with overlaping shifts.
2. Partial coverage from 1200 Hrs. to 2200 Hrs. five days a week
using one full time officer.
3. Coverage on a part time / on call basis using a beat officer
to respond to calls as needed.
It is the police departments recommendation that full coverage be
provided seven days a week. While this coverage is the most costly
of the three alternatives, it is also the most beneficial coverage
in terms of safety and liability to'both the citizens using the
lagoon and the City of Carlsbad.
Gene R. Kellogg, Captain
MEMORANDUM
TO : Frank Aleshire, City Manager
FROM : David Bradstreet, Parks and Recreation Director
DATE : April 10, 1981
SUBJECT: Boat Insurance
BACKGROUND
The City Council on April 7, 1981 requested more information
concerning the boat insurance controversy with the State.Staff has
been in contact with San Diego Gas and Electric and Dr. Sarkaria.
RECOMMENDATION
It is recommended the City comply with the State request and
repeal the $300,000 insurance requirement and add as a condition
of obtaining a boat permit the requirement to sign a hold-harmless
agreement.
FISCAL IMPACT
There is no significant fiscal impact.
ALTERNATIVES
The City Council considered four alternatives at their last
meeting:
1) Retain insurance requirement.
2) Repeal insurance requirement.
3) Close lagoon to powerboats.
4-) City obtain blanket policy.
Further information was requested as to the possible effects of
closing the lagoon, the possibility of having San Diego Gas and
Electric require the insurance as part of their agreement and the cost
to boatowners if the City obtains a blanket insurance policy.
DISCUSSION
Closing the lagoon to powerboats - Approximately one-third of the
boat permits aresold to Carlsbad residents. Carlsbad residents
bought 139 annual permits and 70 daily permits over the past year. A
permit breakdown of all permits sold between July, 1980 and April, 1981
is provided as follows:
- 1 -
PERMITS NUMBER
Annual - Resident
Annual - Non-Resident
Weekly - Non-Resident
Daily - Resident
Daily - Non-Resident
Total
Of all permits sold only 25 were for sailboats. Overall, it is
estimated that about 200 residents would be affected by closing the
lagoon to powerboats. It is expected that the program for next fiscal
year will be nearly self-supporting with a reduction in police service
levels.
SAN DIEGO GAS AND ELECTRIC AMENDING AGREEMENT
The Director of Governmental Affairs for San Diego Gas and Electric
is out of town until the latter part of April. Staff has been in contact
with the legal staff and expects a response later this week.
BLANKET INSURANCE POLICY
The City could obtain a blanket insurance policy to cover all boat
users at the lagoon for a. cost of between $5,000 and $10,000. This
would be a $1,000,000 policy and costs would be transferred to the
lagoon users. It is difficult to estimate an exact fee that would
cover the costs of such a policy as lagoon usage will decrease with any
raise in the fees. For analysis, an average figure of $7,500 will be
used as the cost of such a policy. Table 1 (attached) gives a proposed
increase in fees based on current usage and proportionate costs. The
greatest increase would go to non-residents as they use the lagoon more
frequently and have higher current fees.
This alternative is not recommended for the following reasons:
1) Boat permit fees would have to be increased substantially
(100% in the case of non-resident annual permits). A
State representative has pointed out that Carlsbad fees
are relatively high.
2) Most boat owners have $300,000 coverage on their boats
and to increase fees to cover them again for the City
would likely meet with protest and increased costs to
boat owners.
3) Administrative costs would increase.
4-) The State Department of Boating and Waterways would prob-
ably protest such an action.
CONCLUSION
Bristol Cove and Snug Harbor require a $300,000 policy before they
will launch boats from their facilities. Dr. Sarkaria, Snug Harbor
owner, has stated that he will continue to require insurance. He is
- 2 -
looking into the matter with his insurance advisers and will contact
the City later this week with further information.
Staff's original recommendation to repeal the section of the
ordinance requiring insurance appears to be the best solution. This
solution will allow the City to continue with the boating program and
satisfy the State. The City will still be protected from liability
with the major burden on the individual boat owner.
DLB:MDL:kas
Attachment: Table 1
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1200 ELM AVENUE if ySg? rf TELEPHONE:
CARLSBAD. CALIFORNIA 92008 • ' t*Jj$7 r^J J <714> 438-5621
Citp of Cartefoab
Hold-Harmless Agreement
I, , agree to indemnify
and save harmless the City of Carlsbad, its officers,
and employees from and against any and all claims, demands,
liabilities or loss of any kind or nature which the City,
its officers, agents or employees may sustain or incur or
which may be imposed upon them for injury to or death of
persons or damage to property as a result of, arising Out
of the use of Agua Hedionda Lagoon. I further agree to pay
any and all costs and expenses, including but not limited
to court costs and reasonable attorney's fees, incurred by
the City on account of any such claims, demands, or
liabilities.
Signature Date
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