HomeMy WebLinkAboutNB 2 CHILI COOK-OFF INS. 4-7-86AGEN
NEW BUSINESS
NO. 2
4-7-86
DATE: April 1, 1986
Inter- Corn
TO:
FROM:
SUBJECT:
William A. Huston, City Manager
Director of Community and Administrative Services
SPECIAL EVENT INSURANCE: CHILI COOK-OFF AND TUSTIN TILLER DAYS
RECOMMENDATION
Pleasure of the Council.
ALTERNATIVES:
1. To appropriate $20,000. for self-insured retention coverage for the
Chili Cook-Off and Tustin Tiller Days.
2. To not insure separately for the self-insured retention amount and have
both events covered under the City's general liability'policy.
BACKGROUND:
In prior years the City has secured a special-event, three-day liability policy
for the Tustin Tiller Days. The limits were $100,000., equal to the City's
self-insured retention and the Tiller Days Committee was named as additional
insured. By having them named as additional insured, they were individually
protected to the limits of the city's excess policies, i.e., $15 million for
fiscal 1985. Premiums for this additional coverage were very reasonably priced
at roughly $400.00. Similar insurance was obtained for the E1 Camino Real Chili
Cook-Off, which is a one-day event sponsored by the City.
This year the Finance Director reports that the insurance marketplace is full of
uncertainty. We probably can get a three-day, special-event policy again, but
if we allow the sale of alcohol we will pay a minimum premium of $7,500. {This
applies to Tustin Tiller Days, as well as the Tustin Chili Cook-Off; it doesn't
matter if it is one day or three days.) If we follow form with prior years, we
would be looking for coverage with limits of $250,000., our current self-insured
retention. The Finance Director estimates that the premium cost will be between
$7,500. and $10,000. for each event.
The Finance Director advises that our general liability policy would be in
effect whether or not we were able to get the coverage of our self-insured
retention. What is available in today's marketplace may not be available by the
June 1 date of the Chili Cook-Off, or the date of Tiller Days in October.
kaw