Assembly members agreed that a port commission proposal to require boat owners to carry marine insurance — or pay a monthly fee in addition to their stall rental — needs a lot more work.
The port commission has been discussing since 2022 the financial risk to the borough when an uninsured vessel catches fire or sinks in the harbor, requiring cleanup and removal.
The commission last month voted unanimously to recommend assembly approval of an ordinance requiring boat owners show proof of insurance or pay an additional monthly fee so that the Port and Harbors Department could build up reserves to cover uninsured damages.
While acknowledging the financial risk to the borough of cleanup and disposal costs, assembly members also voiced concern of the additional insurance costs to boat owners.
“I don’t have the solution,” Assembly Member Bob Dalrymple said during discussion of the proposed ordinance at the Feb. 13 assembly meeting.
“I don’t think it’s ready yet,” Interim Borough Manager Mason Villarma said of the ordinance.
The assembly agreed to schedule a work session with the port commission for March 7 to further discuss details of the proposal.
“I know this needs a lot of work,” said Assembly Member David Powell. “I know we have to do something.”
In a report to the assembly, Villarma and Harbormaster Steve Miller raised several questions about the proposal: What is the appropriate amount of insurance coverage to require; is the monthly fee reasonable in lieu of insurance; should smaller vessels be exempt from the provisions; and instead of an ordinance, “should the borough take a harder stance on vessels that have a higher risk of causing damage to the harbor facilities and other vessels or sink in one of the harbors?”
Dalrymple said part of the problem is that the borough has been too lax in allowing derelict vessels to stay too long in the harbor, increasing the risks of fire or sinking.
He is not in support of mandatory insurance, and also believes the monthly fee of $5 per linear foot of vessel in lieu of insurance is too steep. He described himself as “not gung ho” or comfortable with requiring insurance, but agreed the borough has to take steps to protect its assets.
Powell said he is supportive of an insurance requirement but concerned about high costs for the owners, particularly to insure wooden boats.
“The borough has spent an average of $27,000 per year on derelict vessel disposal over the past three fiscal years,” Miller reported to the assembly. “In these cases, the borough is left to raise a sunken vessel or front the cost of disposal and likely not get reimbursed.”
Joe Holden testified in support of the ordinance Feb. 13. “I think it’s a great idea to have people insured. … What if somebody burns my boat?” He added, “Insurance is not a bad thing.”
Holden also suggested another solution to protect harbor users: Designate an area exclusively for uninsured vessels. “Keep them away from my boat.”
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