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HomeMy WebLinkAbout05/07/2013 16 Special Events Insurance Requirements and Event Fees; YMC Amendments 9.70.160 and 9.70.190BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON . AGENDA STATEMENT Item No. by For Meeting of: 5/7/2013 ITEM TITLE: Ordinance amending section 9.70.190 of the Yakima Municipal Code regarding Special Events & Parades SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575 -6274 SUMMARY EXPLANATION: Attached for your consideration is an ordinance amending section 9.70.190 of the Yakima Municipal Code relating to special events. We recommend new procedures regarding the cost of providing police security and traffic services for special event. The change creates three types of permit fees based on the type of event. Type A events would pay 100% of the total event management cost to the City. These would include events put on by a private sponsor. Type B events would pay 50% of the total event management cost to the City. These would include events co- sponsored by the City such as fun runs or cruise nights. Type C events would pay no fee to the City for event management costs. These would include events like the Sunfair Parade, Cinco De Mayo and the Memorial Day Parade. First Amendment activities would fall in the Type C category. The insurance updates to the ordinance were recommended by the City's insurance consultant to minimize the City's overall liability during permited special events and parades. Updates include requiring specific coverage for animals in events and parades and ensuring that all policies include no exclusions for assualt and battery charges. Resolution: Other (Specify): Contract: Start Date: . Item Budgeted: NA Funding Source /Fiscal Impact: Strategic Priority: Insurance Required? No Ordinance: X Contract Term: End Date: Amount: Public Trust and Accountability Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: ATTACHMENTS: Name: F-1 ORDINANCE Special Event FEES Amend May 7 2013.doc City Manager Description: Ordinance amending section 9.70.190 of the Yakima Municipal Code regarding Special Events & Parades ORDINANCE NO. 2013- AN ORDINANCE relating to special events; amending Section 9.70.160 regarding insurance requirements for special events, and Section 9.70.190 of the Yakima Municipal Code regarding special event fees. WHEREAS, the City Council has previously adopted ordinances establishing procedures and criteria for special events and special event permits within the City of Yakima, all as codified at Chapter 9.70 YMC; and WHEREAS, the City Council finds and determines that YMC 9.70.160 should be amended to clarify and supplement provisions relating to insurance requirements for special events; and WHEREAS, the City Council finds and determines that YMC 9.70.190 should be amended to establish and implement new procedures regarding calculation and assessment of special event permit fees; and WHEREAS, the City Council finds and determines that YMC 9.70.160 should be amended as shown and set forth in Exhibit "A" attached hereto and by this reference incorporated herein, and YMC 9.70.190 should be amended as shown and set forth in Exhibit "B" attached hereto and by this reference incorporated herein, and that such amendments are in the best interest of residents of the City of Yakima and will promote the general health, safety and welfare; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Sections 9.70.160 of the Yakima Municipal Code is hereby amended to read as set forth in Exhibit "A" attached hereto and incorporated herein. and Section 9.70.190 of the Yakima Municipal Code is hereby amended to read as set forth in Exhibit "B" attached hereto and incorporated herein. Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 7th day of May, 2013. ATTEST: Micah Cawley, Mayor City Clerk Publication Date: Effective Date: 1 *.1.114 111dyil 9.70.160 Insurance required to conduct special event. A. In addition to any other requirement(s) imposed by this chapter, for any parade or special event involving participation of persons in games or races involving physical effort; or involving the use of live animals, wild or domestic; or involving the use of vehicles (except wheelchairs); or provision or sale of beverages or food for human consumption; or use of alcoholic beverages, the applicant shall have the following minimum insurance requirements: 1. Commercial General Liability (Occurrence form). One million dollars per occurrence /two million dollars aggregate combined single limit liability for bodily injury and property damage. If other than the standard CG 00 01 form is used, the policy shall be furnished to the city attorney for review and may be rejected based upon the specified policy exclusions. If animals are included in the event, no animal exclusion will be allowed or approved. The policy shall not contain an assault and battery exclusion. 2. If sponsor owned or rented vehicles are involved in the event: automobile liability at one million dollars per occurrence combined single limit bodily injury and property damage. This includes coverage for any owned, hired or non - owned vehicles. If the sponsor of the event does not own the vehicles that will be used in the event, then only hired and non -owned auto liability may be required, which can be included on the commercial general liability policy. 3. If liquor is served at the event: liquor liability coverage shall be required at a one million dollar liability limit. 4. The applicant shall provide a certificate of insurance as proof of the insurance required above that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration of the permit. The certificate of liability insurance policy shall name the city of Yakima, its elected officials, officers, agents, employees and volunteers as additional insureds, and shall contain a clause that the insurer will not cancel the insurance without first giving the city prior written notice. The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the state of Washington, or an A- VII rated approved surplus lines carrier. If the city is damaged by the failure of the applicant to maintain the above insurance or to notify the city, then the applicant shall bear all costs attributable thereto. An 2 expiration, cancellation, or revocation of the insurance policy or withdrawal of the insurer from the insurance policy automatically suspends the permit issued to the applicant until a new insurance policy or reinstatement notice has been filed and approved as provided in this section. B. No later than thirty (30) days prior to the event, unless the economic development manager for good cause modifies the filing requirements, the applicant shall file with the economic development manager evidence of liability insurance coverage, for review by the city attorney. A complete copy of the policy will be furnished to the city attorney if requested. The requirements of the certificate of liability insurance are set forth in subsection A of this section. Additional endorsements for host liquor liability and /or products liability may be required, in the event food, beverages and /or alcoholic beverages are to be dispensed. C. The applicant shall provide a signed statement that the applicant/responsible party shall pay the costs of services which the city of Yakima is required to perform by reason of management of street use of the parade or special event, including but not limited to cleanup. Upon completion of the parade or special event, the economic development manager shall compile a statement of account which shall be mailed to the applicant/responsible party, payable within thirty days. D. Waiver, Reduction or Increase of Required Limits. If the special event is of a demonstrated high or low risk category, according to recognized insurance and risk management standards, the economic development manager, on the advice of the city attorney or city's risk manager, may authorize a greater or lesser amount of coverage than otherwise required, or may require a particular type of insurance coverage different from that specified in this section. E. As a further condition of the issuance of any permit, the applicant shall defend, indemnify, and hold harmless the city, its elected officials, officers, agents, employees and volunteers from and against any and all claims, causes of action, damages, losses, and expenses of any kind or nature whatsoever, including but not limited to attorney's fees and court cost, arising out of, relating to or resulting from the parade or special event and /or the application for the parade or special event. 3 F. The indemnification requirements set forth in this section shall not be construed to apply to events permitted under this chapter involving expressive activity which enjoys protection under the United States or Washington constitutions except that sponsors of such events shall be required to redesign or reschedule the permitted event to respond to specific risks, hazards and dangers to the public health and safety identified by the director of community and economic development as reasonably foreseeable consequences of the event. G. The insurance required by this section shall encompass all liability insurance requirements imposed for other permits required under other sections of this chapter and is to be provided for the benefit of the city and not as a duty, express or implied, to provide insurance protection for spectators or participants. 1 *A.114 111 111VA i r a 3 9.70.160 Insurance required to conduct special event. A. In addition to any other requirement(s) imposed by this chapter, for any parade or special event involving participation of persons in games or races involving physical effort; or involving the use of live animals, wild or domestic; or involving the use of vehicles (except wheelchairs); or provision or sale of beverages or food for human consumption; or use of alcoholic beverages, the applicant shall have the following minimum insurance requirements: 1. Commercial General Liability (Occurrence form). One million dollars per occurrence /two million dollars aggregate combined single limit liability for bodily injury and property damage. If other than the standard CG 00 01 form is used, the policy shall be furnished to the city attorney for review and may be rejected based upon the specified policy exclusions. If animals are included in the event, no animal exclusion will be allowed or approved. The policy shall not contain an assault and battery exclusion. 2. If sponsor owned or rented vehicles are involved in the event: automobile liability at one million dollars per occurrence combined single limit bodily injury and property damage. This includes coverage for any owned, hired or non - owned vehicles. If the sponsor of the event does not own the vehicles that will be used in the event, then only hired and non -owned auto liability wW may be required, which can be included on the commercial general liability policy. 3. If liquor is served at the event: liquor liability coverage shall be required at a one million dollar liability limit. 4. The applicant shall provide a certificate of insurance as proof of the insurance required above that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration of the permit. The certificate of liability insurance policy shall name the city of Yakima, its elected officials, officers, agents, employees and volunteers as additional insureds, and shall contain a clause that the insurer will not cancel the insurance without first giving the city prior written notice. The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the state of Washington, or an A- VII rated approved surplus lines carrier. If the city is R damaged by the failure of the applicant to maintain the above insurance or to notify the city, then the applicant shall bear all costs attributable thereto. An expiration, cancellation, or revocation of the insurance policy or withdrawal of the insurer from the insurance policy automatically suspends the permit issued to the applicant until a new insurance policy or reinstatement notice has been filed and approved as provided in this section. B. No later than thirty (30) days prior to the event, unless the economic development manager for good cause modifies the filing requirements, the applicant shall file with the economic development manager evidence of liability insurance coverage, for review by the city attorney. A complete copy of the policy will be furnished to the city attorney if requested. The requirements of the certificate of liability insurance are set forth in subsection A of this section. Additional endorsements for host liquor liability and /or products liability may be required, in the event food, beverages and /or alcoholic beverages are to be dispensed. C. The applicant shall provide a signed statement that the applicant/responsible party shall pay the costs of services which the city of Yakima is required to perform by reason of management of street use of the parade or special event, including but not limited to cleanup. Upon completion of the parade or special event, the economic development manager shall compile a statement of account which shall be mailed to the applicant/responsible party, payable within thirty days. D. Waiver, Reduction or Increase of Required Limits. If the special event is of a demonstrated high or low risk category, according to recognized insurance and risk management standards, the economic development manager, on the advice of the city attorney or city's risk manager, may authorize a greater or lesser amount of coverage than otherwise required, or may require a particular type of insurance coverage different from that specified in this section. E. As a further condition of the issuance of any permit, the applicant shall defend, indemnify, and hold harmless the city, its elected officials, officers, agents, employees and volunteers from and against any and all claims, causes of action, damages, losses, and expenses of any kind or nature whatsoever, including but not limited to attorney's fees and court cost, arising out of, relating to or resulting from the parade or special event and /or the application for the parade or special event. M F. The indemnification requirements set forth in this section shall not be construed to apply to events permitted under this chapter involving expressive activity which enjoys protection under the United States or Washington constitutions except that sponsors of such events shall be required to redesign or reschedule the permitted event to respond to specific risks, hazards and dangers to the public health and safety identified by the director of community and economic development as reasonably foreseeable consequences of the event. G. The insurance required by this section shall encompass all liability insurance requirements imposed for other permits required under other sections of this chapter and is to be provided for the benefit of the city and not as a duty, express or implied, to provide insurance protection for spectators or participants. 7 EXHIBIT "B" • • Cost for special events—Fees—Security i - • i A. Special Event Permit Fee. Upon approval of an application for a permit for a special event not protected under the First and Fourteenth Amendments of the U.S. Constitution, the economic development manager should provide the applicant with a statement of the estimated cost of city services and of equipment, materials and permit fees. The Special Event Permit Fee shall be calculated and assessed as follows. (1) The economic development manager shall send copies of special event applications to affected city departments. By way of illustration, and without limitation, services provided by affected city departments include, but are not limited to, services such as police escorts, traffic control, sanitation, and clean -up services. Costs of such services are called "event management costs." Each departmental activity required for the special event shall be itemized, showing hourly rate and total cost. The "total event management costs to the city" shall be the sum of each department's costs. (2) A special event permit fee shall be charged. The amount of the fee shall be determined in accordance with the following types of events: (a) Type A is an event which is privately sponsored; the sponsor will pay one hundred percent of the "total event management costs to the city." These would include events put on by a private sponsor that include a fee or are fundraisers for an organization. (b) Type B is an event which is cosponsored by the city; the city will pay fifty percent (or a negotiated portion) of the "total event management costs to the city." This would include events that are open to the public but serve a special interest need such as a cruise night or a fun run / bike event. M. (c) Type C is an event sponsored by the city; the city will pay one hundred percent of the "total event management costs to the city." These events will include annual City based community events such as the Sunfair Parade, Christmas Light Parade, Memorial Day parade and others. First Amendment based parades or marches will be in this category. The City Manager will have the authority to approve the Category that each application is placed in. (3) For special events in which benefits to recognized charitable organizations are a significant component, staff time and costs associated with traffic control services, routine police services and routine cleanup activities shall be charged based on the city's direct costs only, or may be reduced or waived for good cause shown. For all other special events, staff time and costs incurred shall be for the full amount of costs incurred by the city in connection with the event, including indirect costs of staff time such as benefits and all overhead costs associated with the position. (4) The economic development manager shall require payment of fees, or a reasonable estimate thereof, at the time the completed application is approved, unless the economic development manager for good cause extends time for payment. B. Security Deposit. Except for an application for a permit for a special event protected under the First and Fourteenth Amendments of the U.S. Constitution, and events solely sponsored by the city, each application for a special event permit shall be accompanied by a security deposit. For special events requiring the closure of public streets, the amount of the security deposit shall be between two thousand five hundred dollars and five thousand dollars, based on the factors listed below. For special events limited to any city designated special event venue or other venue, or a special event permit issued under the expedited process of YMC 9.70.100, the amount of the security deposit shall be in an amount determined by the economic development manager based on the I factors listed below. The economic development manager shall consider the following factors when determining the amount of any security deposit for a special event. The security deposit shall be in an amount the economic development manager determines is necessary and appropriate to defray costs of cleanup, repair and /or restoration based upon: (i) the number of persons expected to attend or participate in the event; (ii) the type or nature of the event; (iii) the number and type of vendors participating in the event; (iv) whether alcohol will be provided, served or consumed on the event venue; and (v) any other factor deemed relevant to determine the amount of deposit based upon reasonably foreseeable costs of cleanup, repair and /or restoration. (1) Payment of Funds to Be Used for Security Deposit. Payment of funds to be used for security deposit shall be by cash or certified check. (2) Deposit of Funds. Funds received from the applicant for security deposit shall be receipted by the city and deposited in an appropriate fund. (3) Refund of Security Deposit. Subject to compliance with the following conditions, funds held by the city as a security deposit shall be refunded to the applicant in accordance with applicable payment procedures of the city: (a) Applicant has complied with all requirements of the permit; (b) Applicant has cleaned, repaired and restored the site following the conclusion of permitted event to the condition existing prior to the event, reasonable wear and tear excepted, to the satisfaction of the economic development manager. (4) Use of Funds in Security Deposit by City. In the event applicant fails to comply with the approved cleanup plan included within the permit and /or damage to city property or facilities has occurred on the event site attributed to participants in the event, the economic development manager shall use reasonable efforts to notify the applicant that the city will proceed to clean, repair and restore the subject site and facilities, and thereupon authorize city personnel to conduct such cleanup and restoration. The cost 10 of such city cleaning, repair and restoration shall be computed using the hourly rate of each city employee (with overtime rate, as applicable) multiplied by the hours worked by each employee, and the hourly rate for city equipment used for the cleanup, repair and restoration multiplied by the number of hours such equipment was used. Costs incurred by the city also include the costs of any third -party contractor retained to conduct or assist with such cleanup, repair or restoration. City will document its costs incurred in cleanup, repair and restoration and deduct from the security deposit the total amount incurred by the city for such cleanup, repair and restoration. The city shall thereupon request a refund of the remaining balance of such deposit to be processed and paid to the applicant, and shall provide the applicant with a copy of the document showing city costs incurred. (5) Recovery of Excess Costs — Responsibility of Applicant. The applicant shall be responsible for all cleanup, repair and restoration required in this code, the approved permit and cleanup plan. In the event city costs of cleanup, repair and /or restoration of the site exceed the amount of the security deposit, the city reserves the right to seek recovery of such amounts from any and all responsible parties, including but not limited to the applicant. 11 1 *.1.11 :1111M• i r a 3 • • Cost for special events—Fees—Security i - • i A. Special Event Permit Fee. Upon approval of an application for a permit for a special event not protected under the First and Fourteenth Amendments of the U.S. Constitution, the economic development manager should provide the applicant with a statement of the estimated cost of city services and of equipment, materials and permit fees. The Special Event Permit Fee shall be calculated and assessed as follows. (1) The economic development manager shall send copies of special event applications to affected city departments. By way of illustration, and without limitation, services provided by affected city departments include, but are not limited to, services such as police escorts, traffic control, sanitation, and clean -up services. Costs of such services are called "event management costs." Each departmental activity required for the special event shall be itemized, showing hourly rate and total cost. The "total event management costs to the city" shall be the sum of each department's costs. (2) A special event permit fee shall be charged. The amount of the fee shall be determined in accordance with the following types of events: eet (a) Type A is an event which is privately sponsored; the sponsor will pay one hundred percent of the "total event management costs to the city." These would include events put on by a private sponsor that include a fee or are fundraisers for an oraanization. (b) Type B is an event which is cosponsored by the city; the city will pay fifty percent (or a negotiated portion) of the "total event 12 management costs to the city." This would include events that are open to the public but serve a special interest need such as a cruise night or a fun run / bike event. (c) Type C is an event sponsored by the city; the city will pay one hundred percent of the "total event management costs to the city." These events will include annual City based community events such as the Sunfair Parade, Christmas Light Parade, Memorial Day Parade and others. First Amendment based parades or marches will be in this category. The City Manager will have the authority to approve the Category that each application is placed in. (3) For special events in which benefits to recognized charitable organizations are a significant component, staff time and costs associated with traffic control services, routine police services and routine cleanup activities shall be charged based on the city's direct costs only, or may be reduced or waived for good cause shown. For all other special events, staff time and costs incurred shall be for the full amount of costs incurred by the city in connection with the event, including indirect costs of staff time such as benefits and all overhead costs associated with the position. (4) The economic development manager shall require payment of fees, or a reasonable estimate thereof, at the time the completed application is approved, unless the economic development manager for good cause extends time for payment. B. Security Deposit. Except for an application for a permit for a special event protected under the First and Fourteenth Amendments of the U.S. Constitution, and events solely sponsored by the city, each application for a special event permit shall be accompanied by a security deposit. For special events requiring the closure of public streets, the amount of the security deposit shall be between two thousand five hundred dollars and five thousand dollars, based on the factors listed below. For special events limited to any 13 city designated special event venue or other venue, or a special event permit issued under the expedited process of YMC 9.70.100, the amount of the security deposit shall be in an amount determined by the economic development manager based on the factors listed below. The economic development manager shall consider the following factors when determining the amount of any security deposit for a special event. The security deposit shall be in an amount the economic development manager determines is necessary and appropriate to defray costs of cleanup, repair and /or restoration based upon: (i) the number of persons expected to attend or participate in the event; (ii) the type or nature of the event; (iii) the number and type of vendors participating in the event; (iv) whether alcohol will be provided, served or consumed on the event venue; and (v) any other factor deemed relevant to determine the amount of deposit based upon reasonably foreseeable costs of cleanup, repair and /or restoration. (1) Payment of Funds to Be Used for Security Deposit. Payment of funds to be used for security deposit shall be by cash or certified check. (2) Deposit of Funds. Funds received from the applicant for security deposit shall be receipted by the city and deposited in an appropriate fund. (3) Refund of Security Deposit. Subject to compliance with the following conditions, funds held by the city as a security deposit shall be refunded to the applicant in accordance with applicable payment procedures of the city: (a) Applicant has complied with all requirements of the permit; (b) Applicant has cleaned, repaired and restored the site following the conclusion of permitted event to the condition existing prior to the event, reasonable wear and tear excepted, to the satisfaction of the economic development manager. (4) Use of Funds in Security Deposit by City. In the event applicant fails to comply with the approved cleanup plan included within the permit and /or damage to city property or facilities has occurred on the event site attributed to participants in the event, the economic development manager 14 shall use reasonable efforts to notify the applicant that the city will proceed to clean, repair and restore the subject site and facilities, and thereupon authorize city personnel to conduct such cleanup and restoration. The cost of such city cleaning, repair and restoration shall be computed using the hourly rate of each city employee (with overtime rate, as applicable) multiplied by the hours worked by each employee, and the hourly rate for city equipment used for the cleanup, repair and restoration multiplied by the number of hours such equipment was used. Costs incurred by the city also include the costs of any third -party contractor retained to conduct or assist with such cleanup, repair or restoration. City will document its costs incurred in cleanup, repair and restoration and deduct from the security deposit the total amount incurred by the city for such cleanup, repair and restoration. The city shall thereupon request a refund of the remaining balance of such deposit to be processed and paid to the applicant, and shall provide the applicant with a copy of the document showing city costs incurred. (5) Recovery of Excess Costs — Responsibility of Applicant. The applicant shall be responsible for all cleanup, repair and restoration required in this code, the approved permit and cleanup plan. In the event city costs of cleanup, repair and /or restoration of the site exceed the amount of the security deposit, the city reserves the right to seek recovery of such amounts from any and all responsible parties, including but not limited to the applicant. 15