CAMANCHE — A proposed resolution amending community center guidelines and policies in Camanche has been tabled in part due to discussions on whether to require homeowner's insurance or special event insurance for those renting the community center.
The proposed resolution includes a rental rate of $200 for Camanche residents and $400 for non-residents. The resolution includes a $200 deposit and $150 for set up the night before if available. The proposed resolution also requires proof of insurance. Camanche City Administrator Andrew Kida said homeowners are already covered and will only be required to provide homeowner's insurance, while renters will be required to purchase insurance if the city proceeds with the proposed resolution.
"I think it adds for us an additional level of protection because essentially if somebody pays a $200 deposit and causes $1,000 of damage and walks away then we're stuck with it," Kida said.
Camanche Mayor Trevor Willis said the city also discussed finding out the city's deductible amount and making that the required deposit to ensure the city is not out any funds. Kida believes going the route of setting the deposit at the city's deductible may become more of a liability for the city.
"I did not get any feedback on that," Kida said. "I think just from my opinion on that it creates an extra load on our process and our costs. And you turn in enough claims on our insurance for damaging the community center then it becomes more of a liability."
Kida said tabling the vote on the resolution would be necessary if the city wanted to see the cost of the deductible. He recommended the city follow the process outlined in the proposed resolution of requiring homeowner's insurance or renter's insurance.
"I think from a business standpoint we certainly cannot keep going the way we were going," Kida said. "Those rates were not acceptable. We rented out that facility 85 times last year and mostly weekends. So out of the 112 weekend days out of the year we rented it out 85 times. That's a lot of rentals. We lost $4,500. And so when we come up with these rates, sure we could charge less and bring in more revenue and break even but that's not helping us either. From a business standpoint that's a no go. We have to be able to bring in additional revenue."
Councilwoman Amber Metzger said the community center is not the only area the city is losing money. She referenced the cemetery also losing money.
"I'm just saying you guys keep saying we're losing money, we're losing money, we've got to raise money, we got to raise rates (with emphasis)," Metzger said. "We have another area too that's the same way that we lose money on every year."
Willis said the community center is only a couple years old, adding the city cannot continue to put money into things and have it lose money.
"It's not good. Not good business. Not good for the taxpayer," Willis said.
Kida said if an individual did $1,000 worth of damage and the insurance company covered the cost he would not cash the $200 check because the cost was paid to the city.
"I've been made whole by their insurance. I don't need their $200," Kida said. "I will hold their $200 until I'm made whole. But if I'm made whole by their insurance carrier I'll shred the check. If they did $100 worth of damage I'll cash their check. If they violated the terms of the policy I'll cash their check."
Camanche City Attorney Randy Current said if there is $1,000 in damage and a $500 deductible the maximum the city would receive is the $500 from the insurance carrier plus the deposit.
Camanche City Attorney John Frey questioned whether the homeowner's insurance will cover property damage to the city facility versus the liability to people who may be injured in the facility. He believes the city should make sure the homeowner's certificate of insurance will cover damage caused to the property in the building.
"I'm thinking maybe what they're looking at is their liability if somebody's injured," Frey said. "Typically your homeowner's liability coverage could be extended. I'm a little bit concerned that for issuing a certificate of insurance they're going to now accept liability for damage to property on a building that would not otherwise be covered and hasn't been assessed or valued by the insurance company and all those things. You probably need to investigate that."