City of Powell River councillors voted narrowly in favour of not extending the January 1 requirement for $1 million liability insurance for boats moored in city harbours.
At the December 5 committee of the whole meeting, city manager of transportation Cam Reed provided a report, recommending that city council not extend the January 1, 2024, insurance requirement deadline contained in the harbours regulations bylaws.
Reed said that at the November 16 council meeting, a concern was brought forward that there was a backlog of harbour moorage contract holders awaiting surveys for the marine liability insurance that the city was required by January 1. He said staff were directed by council to look into the matter and bring recommendations on amending the harbour rates bylaw.
Reed said in December of 2022, both harbour bylaws were amended and there was a requirement for moorage contract holders to have a minimum of $1 million in liability insurance. He said the insurance must include wreck removal and sudden and accidental pollution coverage.
“Staff’s recommendation is that council not extend the January 1 insurance requirement deadline contained in the existing harbour bylaws,” said Reed. “Moorage holder liability insurance is standard for harbours in the region. Private harbours indicate they can’t get insurance unless they require their moorage holders to have insurance as well.
“The city has made reasonable efforts to inform all moorage holders of the insurance deadline. Notices were added to north harbour invoices last December. Similar notices were provided to south and Westview harbour invoices in August. Staff have also refused prepayment past 2022 without proof of insurance.”
Reed said staff had spoken with some local marine survey providers, who indicated they are at maximum capacity and can’t process additional survey requests. He said staff also spoke with four surveyors from neighbouring communities who had capacity and were willing to travel here to perform surveys.
“Staff are recommending the bylaw not be amended to extend the January 1 insurance deadline,” said Reed. “However, an alternative option could be for council to direct staff to prepare an amendment to extend the insurance requirement deadline to a future date.”
Councillor Rob Southcott said his understanding is that if moorage holders don’t have insurance by January 1, they won’t be granted moorage contracts. He said his understanding is that transient boaters have never been checked for insurance.
“I’m not aware that transients after January 1 will have to have insurance,” said Southcott. “I’m wondering what the difference would be for a person who was a moorage holder becoming a transient on January 1, which, of course, would be expensive because the day rate is a lot more expensive than a contract. Does that get around being evicted or fined?”
Reed said his understanding was that the insurance doesn’t apply to transients. He said his understanding is a non-compliant boater would lose their moorage and they could become a transient vessel.
Wharfinger Jen Kinahan said her understanding is that boaters without insurance would be charged daily rate until they got insurance and then they would be on annual rate.
“We’re not going to kick them out,” said Kinahan.
Council considered a motion that council not extend the January 1 insurance requirement deadline contained in the harbour bylaws. The motion passed, with mayor Ron Woznow, and councillors Cindy Elliott and Jim Palm opposed.
Join the Peak's email list for the top headlines right in your inbox Monday to Friday.
