Report to Mayor and City Council
Tuesday, September 06, 2016
Discussion
SUBJECT:
Title
CONSIDER AMENDING CITY FACILITY RENTERS CONTRACTS AND PERMITS TO REQUIRE PROOF OF LIABILITY INSURANCE (CITY COUNCIL)
Body
I. SUMMARY
The current contracts and permits used to rent City facilities do not require that renters obtain liability insurance to protect the City against financial loss. As such, all liability for personal injuries and damage to private property puts the city in a vulnerable position as the city could be held financially responsible for any claim that could arise from an event or activity at any city facility even if the event or activity is not sponsored by the city. The insurance would also provide coverage to protect renters from third party claims.
II. RECOMMENDATION
Recommendation
TAKE the following action:
1. APPROVE amending the current contracts and permits to include the updated indemnity language and a requirement that renters of City facilities provide commercial general liability insurance in the amount of $1,000,000.
2. APPROVE COUNCIL POLICY & PROCEDURE NUMBER 01.04.01, RENTERS OF CITY FACILITIES/REQUIREMENT FOR LIABILITY INSURANCE.
1.
Body
III. ALTERNATIVES
1. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The city allows private individuals and businesses, non-profit and private organizations (Users) to rent city facilities for meetings and events. The City does not currently require that Users of City facilities obtain commercial general liability insurance ("general liability") to protect the City against financial loss. The majority of the neighboring cities as well as other public entities require this insurance when renting their facilities (Exhibit 1). The $1,000,000 general liability per occurrence/$2,000,000 general aggregate insurance requirement would effectively transfer the risk of financial loss from the City to a separate insurance policy.
Liability Insurance Requirements for City ...
Click here for full text