Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: DIRECTOR OF RECREATION AND PARKS

DATE: SEPTEMBER 2, 2003

SUBJECT: INSURANCE REQUIREMENT FOR PROPOSED BIKE DEMONSTRATION AND PARADE

STAFF COORDINATOR: Holly Starr, Recreation Services Manager, Recreation and Parks

RECOMMENDATION

Provide direction to staff on the request received from Ms. Libby Aubrey to waive insurance requirements for her proposed BMX bicycle exhibition and roadway bicycle parade at the City of Rancho Palos Verdes’ 30th Anniversary event on September 6, 2003.

BACKGROUND

In January 2003, the City Council formed the 30th Anniversary Committee to plan and organize the City’s anniversary celebration. The Committee is co-chaired by Mayor Stern and Mayor Pro Tem Ferraro and includes ten residents. During its initial meeting, the Committee agreed to plan a community barbecue and picnic on September 6, 2003 and a formal dinner and dance on October 17, 2003.

During its meeting on May 13, 2003, the Committee heard a proposal by Libby Aubrey and Richard Kimball Smith representing the School of Champions, a nonprofit bicycling organization. Ms. Aubrey requested a 20" x 20" area at the picnic event site for an extreme BMX bicycle exhibition that would include several teenage and young adult amateur riders performing with homemade props and ramps.

Ms. Aubrey also proposed that ten to twenty local youth members of the School of Champions could participate in a roadway bicycle parade an hour prior to the event. The parade route would begin along Palos Verdes Drive South, continue up Hawthorne Boulevard, and terminate at City Hall.

Committee members agreed that both concepts—the BMX bicycle exhibition and the roadway bicycle parade—would be acceptable additions to the event. Ms. Aubrey agreed to provide proof of insurance for both activities that would name the City as additionally insured for one million dollars.

DISCUSSION

After making her proposal, Ms. Aubrey later contacted Staff and indicated that she could not obtain insurance for the bicycle parade or for the BMX bicycle exhibition through her insurance carrier. She requested that Staff contact the City’s insurer to determine whether both activities could be insured through the City. Staff contacted California Joint Powers Insurance Authority (CJPIA), the City’s insurance carrier, and were informed that CJPIA does not cover "extreme sports" exhibition participants. Then, at the request of Ms. Aubrey, Staff contacted Balloons Pluss, an event planning company that the City has contracted with for the Community Barbecue & Picnic event, to determine whether the company could include the two bicycle activities in its own insurance policy. Balloons Pluss responded that they would not be able to insure such activities.

CONCLUSION

On August 25, 2003 Ms. Aubrey requested that the City Council waive the required insurance fees for the proposed extreme BMX bicycle exhibition and roadway bicycle parade at the City’s 30th Anniversary Community Barbecue and Picnic on September 6, 2003 (see attached letter). However, as discussed previously, Staff has researched the issue and found that the City is unable to provide Ms. Aubrey with any insurance coverage for these activities. Because there is no coverage available to the City, the issue before the Council is whether or not the Council is willing to waive insurance requirements all together. There is no precedent for this action and Staff is concerned that it could expose the City to considerable liability if any injuries occurred or other claims were filed.

FISCAL IMPACT

There would be no immediate fiscal impact for waiving the required insurance. However, the City could end up being responsible for significant damage claims if the activities are allowed at a City event without insurance.

Respectfully Submitted,

Ron Rosenfeld

Director, Recreation and Parks

Reviewed,

Les Evans

City Manager

Attachment:

Letter from Ms. Libby Aubrey dated August 25, 2003

Waiver received from Ms. Libby Aubrey