Staff recommends lowering HOT grant insurance threshold from $5M to $2M

At the preparatory session, Andres Aguirre presented a proposal to reduce the aggregate liability-insurance requirement for hotel-occupancy-tax (HOT) grant recipients from $5,000,000 to $2,000,000, telling council that local insurers advised $5,000,000 is excessive for many local events.

Aguirre said the premium difference between $5,000,000 and $2,000,000 is substantial and that lowering the threshold would ease the burden on event organizers. "So 2,000,000 would be the recommended aggregate amount to change the, policy to," Aguirre said. Council members clarified that the insurance requirement is placed on the event organizer, not the city, and reviewed the application exhibit in the current resolution to confirm how the requirement is presented to applicants. Staff will bring the proposed amendment and supporting documentation to the regular meeting for council consideration.