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HomeMy WebLinkAbout1981-04-21; City Council; 6133-5; Boat Insurance RequirementCITY OF CARLSBAD AGElTDk BILL NC . (fi / 3*3 ~~ \fl t t 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 - 2 - 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. 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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 Ki- f /i W t*.*- r*. f-it-ri. "* 96. quf V ivts 4&fc-£~^A* ^^f-1'} + *> &