Agenda Item No. 12
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 24, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Larry Kim, Community Services Supervisor
Kristin Eriksson, Assistant City Manager
SUBJECT: Introduction and First Reading of an Ordinance to Amend Article III (Public Welfare, Morals & Conduct), Chapter 11 (Special Events /Outdoor Assemblies) of the Grover Beach Municipal Code to Change Special Event Insurance Requirements
RECOMMENDATION
1) Conduct the first reading, by title only, and introduce the Ordinance to amend Article III (Public Welfare, Morals & Conduct), Chapter 11 (Special Events/Outdoor Assemblies) of the Grover Beach Municipal Code (GMBC) to Change Special Event Insurance Requirements; and 2) Schedule a public hearing at the next regularly scheduled City Council meeting for the second reading and adoption of the Ordinance.
BACKGROUND
Insurance requirements for Special Event Permits are regulated by GMBC Article III, Chapter 11, Section 3981(L) which requires commercial general liability insurance coverage of at least $1,000,000 for up to 500 attendees and an additional $1,000,000 for every additional 500 attendees per special event or outdoor assembly for personal injury or death, in addition to other requirements. Event organizers have had difficulty meeting requirements for larger events with more than 1,000 attendees in the past and, recently, have not been able to obtain any coverage at those levels.
Staff has compared the City’s insurance requirements to neighboring cities and determined the City’s limits required for general liability insurance are comparatively higher for events with more than 1,000 attendees. Insurance coverage limits required by nearby cities for special events are shown in the table below comparing different numbers of attendees:
City Under 500 Under 1,000 Under 1,500 Under 2,000 Under 2,500 San Luis Obispo $1 Million / $2 Million for any size event Pismo Beach $1 Million / $2 Million for any size event
Arroyo Grande $1 Million / $2 Million for any size event Grover Beach (Present) $1 Million / $2
Million
$2 Million / $2
Million
$3 Million / $2
Million
$4 Million / $2
Million
$5 Million / $2
Million
Grover Beach (Proposed) $1 Million / $2 Million $2 Million / $2 Million Changing the insurance limits to be comparable to neighboring cities will speed up permit approvals and make the City a more attractive location to host special events. Therefore, staff Staff Report: Introduction and First Reading of Ordinance on Special Event Insurance Page 2 June 24, 2024
recommends the Council amend the GBMC to only require the higher personal injury or death insurance amounts for events with more than 1,500 attendees.
FISCAL IMPACT
There is no fiscal impact from this action.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a first reading, by title only, and introduce the Ordinance to amend Article III (Public Welfare, Morals & Conduct), Chapter 11 (Special Events/Outdoor Assemblies) of the Grover Beach Municipal Code (GMBC) to Change Special Event Insurance Requirements; and schedule a public hearing for the next regularly scheduled City Council meeting for the second reading and adoption of the Ordinance; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Ordinance
ORDINANCE NO. 24-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA AMENDING SUBSECTION L (INSURANCE) OF SECTION 3981 (SPECIFIC REGULATIONS FOR SPECIAL EVENTS AND OUTDOOR
ASSEMBLIES) OF CHAPTER 11 (SPECIAL EVENTS/OUTDOOR
ASSEMBLIES) OF ARTICLE III (PUBLIC WELFARE, MORALS & CONDUCT)
OF THE GROVER BEACH MUNICIPAL CODE
WHEREAS, Grover Beach Municipal Code Article III, Chapter 11, Section 3981, Subsection L (hereinafter “Section 3981(L)”) regulates liability insurance coverage requirements for special events and outdoor assemblies; and
WHEREAS, the liability coverage requirements of Section 3981(L) currently exceed industry standards for special events and outdoor assemblies; and WHEREAS, the current liability coverage requirements of Section 3981(L) reduce the number of applicants due to an inability to readily obtain the insurance sufficient to meet the coverage requirements of Section 3981(L); and
WHEREAS, the change in insurance requirements would make the City of Grover Beach’s (“City”) requirements comparable to neighboring cities; and WHEREAS, the result will positively benefit special event application approvals.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Grover Beach as follows:
SECTION 1. Subsection L (“Insurance”) of Section 3981 (“Specific Regulations for Special Events and Outdoor Assemblies”) of Chapter 11 (“Special Events/ Outdoor Assemblies”) of Article III (“Public Welfare, Morals, & Conduct”) of the Grover Beach Municipal Code is hereby amended to read as follows:
(L) Insurance: Before the issuance of a permit, the event organizer shall obtain and maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than One Million Dollars ($1,000,000) for up to five hundred one thousand five hundred (500) (1500) attendees and with an additional One Million Dollars ($1,000,000) for every additional five hundred (500) Two Million Dollars ($2,000,000) for over one thousand five hundred (1500) attendees per special event or outdoor assembly for personal injury or death and in the amount of not less than Two Million Dollars ($2,000,000) for property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted. If alcohol is sold during the special event or outdoor assembly, coverage must include full liquor liability.
The City of Grover Beach, its officers, officials, agents, and employees shall be included as additional insureds on the policy. The insurance policy shall remain in full force and effect in the specified amounts for the duration of the permit. The evidence of insurance shall include an endorsement with the City of Grover Beach named second on the policy to the effect that the insurance company shall notify the City Clerk of the City of Grover Beach in writing at least ten (10) days before the expiration or cancellation of said insurance.
Attachment 1
Ordinance No. 24-__ Page 2
SECTION 2. SEVERABILITY. If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.
SECTION 3. EFFECTIVE DATE. This ordinance shall take effect and be in force thirty (30) days from and after its final passage.
SECTION 4. PUBLICATION. Within fifteen (15) days after passage, the City Clerk shall cause this ordinance to be published in a newspaper of general circulation.
INTRODUCED at a regular meeting of the City Council held June 24, 2024.
PASSED, APPROVED, and ADOPTED by the City Council at a regular meeting held on July 22, 2024, on the following roll call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
APPROVED:
__________________________
Karen Bright, Mayor
ATTEST:
____________________________________
Wendi Sims, City Clerk
APPROVED AS TO FORM:
_____________________________________
Robert Lomeli, City Attorney
**DRAFT**