Report to: General Committee Report Date: October 11, 2007

SUBJECT: Insurance Coverage for the 2007 Markham Santa Claus Parade

PREPARED BY: Fred Rich, Business Analyst

RECOMMENDATION:

THAT the report entitled “Insurance Coverage for the 2007 Markham Santa Claus Parade” be received;

AND THAT the Rotary Club of Markham Sunrise obtains $2 million of Commercial General Liability insurance coverage for the 2007 Santa Claus Parade naming the Corporation of The Town of Markham as additional insured.

EXECUTIVE SUMMARY:

Not Applicable

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

To provide a response to the Rotary Club of Markham Sunrise (Rotary Club) request that the Town of Markham designate the 2007 Markham Santa Claus Parade an official Town event and provide the liability coverage for the parade.

BACKGROUND:

At the October 2, 2007 General Committee meeting, James Sandiford & Peter Cusimano from the Rotary Club were in attendance to request that their annual Santa Claus Parade be designated an official Town event in order to receive liability coverage through the Town’s insurance policy.

Since 1997, the Rotary Club has organized the Markham Santa Claus Parade and the Town of Markham has supported the event by providing an annual grant to the Rotary Club. In 2007 the grant was $15,000. The insurance for the parade has historically been provided by the event organizer (Rotary Club).

Town staff discussed the parade with the Town’s Insurance provider, The Frank Cowan Company (Cowan), and according to Cowan, the key to understanding who should provide insurance is who has “Care, Custody and Control. In the case of the Santa Claus Parade, the Rotary Club is organizing the event and therefore has “Care, Custody and Control”. Therefore Cowan advised Town Staff that the Rotary Club should continue to provide the insurance coverage for the parade.

Town Staff also surveyed ten Municipalities regarding parades and events. All ten Municipalities confirmed they only insure events that are organized by the Municipality. When they have events organized by third parties, the third party provides the insurance coverage naming the Municipality as an additional insured. Of the ten Municipalities surveyed, only one (City of Vaughan), organizes a Santa Claus parade. However, the Vaughan parade is organized by the City through their “Santafest” Committee of Council.

With the permission of Mr. Sandiford, Town Staff contacted the Rotary Club’s insurance provider, Whitley Financial Services (Whitley), to discuss the parade insurance. The Whitley representative stated they could meet the Town’s insurance requirements including naming the Town as an additional insured to the Rotary Club policy, if so requested by the Rotary Club.

In addition to the Santa Claus Parade, The Town of Markham supports four festivals; Markham Village Festival, Milliken Children's Festival, Thornhill Village Festival and Unionville Village Festival and organizes events like the Canada Day celebration. Events that are organized by the Town and are Committees of Council, like Canada Day, are covered under the Town insurance policy. The four festivals are supported by the Town of Markham by way of a grant, ranging from $8,500 to $12,500, as detailed below. In addition to the grant, the Town provides and pays for the insurance through its affiliates liability policy, at a cost of approximately $1,800 per festival. These festivals were grandfathered into the Town’s affiliate policy, and according to Cowan no additional events will be added to the affiliate policy where the event is organized by an incorporated third party, such as the Rotary Club.

Based on the advice of the Town’s insurer, the survey of other municipalities and the discussion with the Rotary Club’s insurer, it is the recommendation of Town Staff that the Rotary Club continue to provide the insurance for the Santa Claus Parade for 2007, and as such, the Rotary Club would provide the Town with a valid insurance certificate naming the Corporation of the Town of Markham as an additional insured, with at least $2,000,000 of commercial general liability.

OPTIONS/ DISCUSSION:

FINANCIAL CONSIDERATIONS AND TEMPLATE: Not Applicable.

ENVIRONMENTAL CONSIDERATIONS: Not Applicable.

BUSINESS UNITS CONSULTED AND AFFECTED: Strategic Services

RECOMMENDED

BY: ________________________ ________________________

Barb Cribbett, Andy Taylor,

Treasurer Commissioner Corporate Services

ATTACHMENTS: Not Applicable