HomeMy WebLinkAboutOB 1 CHILI COOK-OFF 04-21-86AGEND
DATE: APRIL 15, 1986
OLD BUSINESS
NO. 1
4-21-86
Inter- Com
TO:
FROM:
SUBJECT:
WILLIAIqA. HUSTO#, CIl~ MA#AGER
AD#I#ISTRATIVE SERVICES DEPARTNENT
SPECIAL EVENT I#SURANCE: CHILI COOK-OFF AND TUSTI# TILLER DAYS
RECOMMENDATION
Pleasure of the Council.
ALTERNATIVES:
1. To appropriate $20,000. to purchase 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.
3. To cancel both events.
UPDATE:
At its meeting April 7, Council requested that staff research the possibility of
the Lions Club insuring that portion of the Chili Cook-Off program having to do
with selling alcohol. It appears that this is not feasible; and even if it
were, it would not negate the possibility of someone suing the city. We are
still checking on this; if new information becomes available, we will update the
Council Monday night.
Staff has also researched the financial commitments for both events thusfar.
Should City Council cancel these events, refunds equalling $4,030. would have to
be made thusfar--$1,120, for the Chili Cook-Off and $2,060. for Tiller Days.
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.
Special Event Insurance
April 15, 1986
Page 2
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 Tusttn 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 I date of the Chili Cook-Off, or the date of Tiller Days in October.
Royleen A. White, Director
Community and Administrative Services
RAW/kaw