HomeMy WebLinkAboutA002 - Council Action Form dated November 20, 2007 ITEM # 33
DATE 11/20/07
COUNCIL ACTION FORM
SUBJECT: ORDINANCE INCREASING INSURANCE REQUIREMENT FOR
FIREWORKS
BACKGROUND:
A meeting was recently held between City staff and Iowa State University (ISU) Office of
Risk Management representatives concerning fireworks shoots on property owned by
the University, but leased to the City. ISU Risk Management is now requesting that the
City's insurance requirements match those of the University for displays on Iowa State's
property before a Fireworks Permit is approved. Presently, the City requires the
applicant for a Fireworks Permit to provide a Certificate of Insurance evidencing
coverage in the amount of $500,000 general liability combined single-limit per
occurrence. The University requires $1,000,000 general liability combined single-limit
per occurrence and $5,000,000 in excess liability. ISU also requests that it, as well as
the City, be named as an additional insured on the Certificate of Insurance for any
shoots located on University property.
Due to the nature of the business, pyrotechnicians usually have at least the amount of
insurance being requested by ISU; therefore, it does not appear that the increased limits
would cause any hardships for the City's customers. If the City wishes to continue to
issue Fireworks Permits for property owned by the University, but leased to the City, it is
advisable that it comply with ISU's insurance requirements.
ALTERNATIVES:
1. Adopt an ordinance increasing the insurance requirements for Fireworks Permits to
$1,000,000 general liability combined single-limit per occurrence and $5,000,000
excess liability coverage, and requiring that, for any fireworks shoots on ISU property,
the insurance certificate name the City of Ames and Iowa State University as additional
insureds.
2. Do not change the insurance requirements.
P
MANAGER'S RECOMMENDED ACTION:
Many of the fireworks shoots held in the City are on land leased by the City from ISU.
The proposed insurance requirements should not be onerous to pyrotechnicians and will
provide adequate levels of insurance protection to both ISU and the City.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative #1 and increase the insurance requirements for Fireworks Permits to
$1,000,000 general liability combined single-limit per occurrence and $5,000,000
excess liability coverage, and require that, for any fireworks shoots on ISU property, the
insurance certificate name the City of Ames and Iowa State University as additional
insureds.