HomeMy WebLinkAbout1986-08-26; City Council; 8745; Special Events InsuranceCIT OF CARLSBAD — AGENC BILL
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TITLE:
SPECIAL EVENTS INSURANCE
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RECOMMENDED ACTION:
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Adopt Council Policy #37 and introduce Ordinance No.
5.60, establishing liability insurance requirements for special events.
ITEM EXPLANATION
amending Title
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At the present time there exists no standard process to require a certificate of
insurance for special events which are conducted in the City. To continue
operating in this fashion, in light of the current insurance crisis, would not
be in the best interests of the City. For this reason, staff has prepared for
the Council's review and consideration a Council Policy and an ordinance to
enact this policy.
These items do two specific things:
1. City Council Policy #37 will formalize liability insurance requirements
for all special events held in Carlsbad.
2. The ordinance amends Title 5 of the Carlsbad Municipal Code adding
Chapter 5.60 which enacts Council Policy #37 into law by requiring that sponsors
or promoters of special events obtain liability insurance naming the City as an
additional insured prior to the occurrence of the special event.
These items will assure that the City of Carlsbad is property insured prior to
authorizing any special event.
FISCAL IMPACT
The costs of administering the insurance requirement would be absorbed by the
Risk Management Department.
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EXHIBITS
1. Council Policy No. 37
2. Ordinance No.
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CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
General Subject: SPECIAL EVENTS
Specific Subject:LIABILITY INSURANCE AND RISK
MWAGEMENT REQUIREMENTS
Policy No.37
Date Issued 8-26-86
Effective Date 8-27-86
Cancellation Date n/a_
Supersedes No
Copies to: City Council, City Manager, City Attorney, Department and
Division Heads, Employee Bulletin Boards, Press, File
PURPOSE
To establish liability insurance and risk management requirements for the use of City
streets and facilities for special events and for the holding of special events authorized
under Title 21, Section 21.42.010 (2)(D) of the Carlsbad Municipal Code.
STATEMENT OF POLICY
Risk Management Review
All proposed special events to be held in the City, whether sponsored, or co-sponsored by
the City or sponsored by outside organizations, shall be reviewed in advance by the City
Risk Manager. It shall be the responsibility of the City Risk Manager to identify and
advise the City Manager of any special hazards involved in the event or any special safety
measures which may be required. Where appropriate, the City Risk Manager may recommend
that the Event be disallowed based on liability exposures inherent in the event.
Liability Insurance
Except for "Low Hazard" non-profit events as defined below, or where a special waiver has
been granted by City Council, no special events shall be authorized involving the use of
City owned facilities or permits issued under the Municipal Code without submission, ten
(10) days before the event, of evidence of public liability insurance in a form acceptable
to the City Manager.
Said liability insurance shall name the City of Carlsbad, its officers and employees as
additional insureds, and be provided by an insurance company rated not less than A:XI by
Best's rating guide. The highest rating available is A+:XV.
Evidence of said insurance may be in the form of a certified copy of the policy or by
delivery to the City of a Certificate of Insurance signed by an authorized agent of the
insurance company. The certificate must indicate that the City is an additional insured
and state, without modification, that the City shall receive ten (10) days written notice
of cancellation.
Self-Insurance
In lieu of liability insurance, the City Manager shall be authorized .to accept evidence of
a formal program of self-insurance upon receipt of:
CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
General Subject: SPECIAL EVENTS
Specific Subject:LIABILITY INSURANCE AND RISK
MANAGEMENT REQUIREMENTS
Policy No.37
Date Issued 8-26-86
Effective Date 8-27-86
Cancellation Date
Supersedes No. n/a
Copies to: City Council, City Manager, City Attorney, Department and
Division Heads, Employee Bulletin Boards, Press, File
1. Certified accounts indicating a net worth of $2 million or two times the amount of
liability insurance limits required, whichever is higher.
2. An executed agreement holding the City, its officers and employees harmless for any
claims arising from the event.
Insurance Limits Required
As a general rule, the City shall require liability insurance limits of $1 million
Combined Single Limits.
Exceptions to this rule may be made based on the exposure classifications delineated in
Appendix "A" to this policy:
1. Where events fall within the "Low Hazard" classification, a complete waiver of
insurance may be granted where the event is sponsored by an individual or non-profit
organization for non-profit purposes. Events sponsored for profit or by businesses
shall provide a minimum limit of $500,000 Combined Single Limits.
2. "Moderate Hazard" events shall require the standard limit of $1 million Combined
Single Limits.
3. Events falling within the "High Hazard" classification shall be subject to special
review by the City Risk Manager, and the required limits shall be established by the
City Manager. Depending on the scope of liability, limits will normally fall between
$2 million and $5 million.
Appendix "A"
CITY OF CARLSBAD
SPECIAL EVENTS
EXPOSURE CLASSIFICATION
LOW HAZARD
(250 Participants or Less)
Seminars
Sedentary Games
(Cards, Bingo, Etc.)
Meetings
Craft Shows
Speaking Engagements
Educational Exhibitions
Social Gatherings
Picnics
Theatrical Performances
Concerts
(Other than Rock)
MODERATE HAZARD
Sporting Events
Dances
Exhibitions
(Not otherwise classified)
Animal Shows
Swap Meets
Rummage Sales
Low Hazard Events with
more than 250 participants
HIGH HAZARD
Vehicle or Animal Races
Rock Concerts
Political Rallies
Rodeos
Festival Displays
Circuses
Parades
Helicopter Rides
Any event involving
consumption of liquor.
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a§ a,VINCENT F. BIONDO, JPATTORNEY - CITY OF CAF1200 ELM AVENUEARLSBAD, CALIFORNIA 9I> O1-o
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ORDINANCE NO.6080
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA AMENDING TITLE 5, BY THE
ADDITION OF CHAPTER 5.60 ESTABLISHING A
REQUIREMENT THAT SPONSORS OR PROMOTERS OF SPECIAL
EVENTS OBTAIN LIABILITY INSURANCE NAMING THE CITY
AS AN ADDITIONAL INSURED PRIOR TO THE OCCURRENCE
OF THE SPECIAL EVENT.
WHEREAS, cities throughout the State of California and
the Nation are experiencing a crisis caused by an inability to
obtaiin liability insurance coverage at a reasonable price; and
WHEREAS, the City has recently been forced into a
position where the Council decided to be self insured for
liability risks? and
WHEREAS, many special events, such as the Carlsbad Grand
Prix, the Superbiker's Competition, the Tournament of Champions
of Golf, and other such events create special liability risks for
the short period of time during which the events are taking
place; and
WHEREAS, these events cause traffic congestion, heavy
use of City streets, special police services, road closings,
traffic conflicts and other special risks not otherwise
associated with usual and customary use of City streets and
services; and
WHEREAS, these events require certain permits from the
City; and
WHEREAS, it is the policy of the City to, as a condition
of the permits for special events, require that the sponsor or
promoter of the event provide liability insurance which names the
City as an additional insured; and
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WHEREAS, in order to protect the public health, safety
and welfare as well as the public fisc it is necessary to
formally implement the Council policy of requiring insurance for
all special events,
NOW, THEREFORE, the City Council of the City of
Carlsbad does ordain as follows:
1. That Title 5 of the Carlsbad Municipal Code is
amended by the addition of Chapter 5.60 to read as follows:
"Chapter 5.60
Insurance Requirements for Special Events
Section:
5.60.010 Insurance requirements for special events.
5.60.010 Insurance requirements for special events.
Whenever a specialevent,including but notlimited to exhibits,
fairs, athletic events, trade shows, concerts, or conventions
requires any permit under the provisions of this Code, the
sponsor, promoter or person conducting the special event shall
obtain comprehensive general liability insurance in an amount
determined by the City Manager. The insurance shall name the
City as an additional insured. The insurance company or
companies shall meet the requirements established by City Council
Resolution. The insurance policy required by this section shall
not be cancelled, limited or nonrenewed until ten days written
notice has been given to the City. The policy shall show
evidence of public liability insurance in a form acceptable to
the City Manager. Special events conducted solely by the City of
Carlsbad shall be exempt from this requirement. Special events
conducted solely by governmental agencies other than the City of
Carlsbad shall be exempt from this requirement provided that the
other governmental agency provides proof to the City Manager of
an inability to obtain special events insurance and provided
•further that the governmental agency agrees to indemnify and hold
2.
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the City harmless from any damage, loss, liability, claim or
demand which may arise or be related to the special event."
EFFECTIVE DATE: This ordinance shall be effective
thirty days after its adoption, and the City Clerk of the City of
Carlsbad shall certify to the adoption of this ordinance and
cause it to be published once in the Carlsbad Journal within 15
days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the 26th day of
August 1986 and thereafter,
PASSED AND ADOPTED, at a regular meeting of the City
Council of the City of Carlsbad, California held on the 2nd
day of September , 1986 by the following vote to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: None
Approved as to Form
ity Attorney
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MARY H. ^CASLER, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City C\erk
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