Harbor Commission votes to recommend vessel insurance ordinance; compliance set for Jan. 1, 2026

Santa Barbara Harbor Commission on March 19 voted to recommend that City Council adopt a vessel insurance ordinance for vessels moored, anchored or otherwise stored in Santa Barbara waters, with a compliance start date of Jan. 1, 2026.

Harbor Operations Manager Nathan Aldridge, who introduced the item, said the ordinance follows years of study and public outreach and is intended to “protect the assets of both boaters and the city going forward.” The draft narrows earlier proposals after public comment, Aldridge said, by requiring liability insurance only (not hull insurance), lowering the proposed minimum liability limit to $300,000 and allowing certain flexibilities for listing the city as additionally insured “if only available from the underwriter.”

The change matters because the proposed rule applies across the Harbor District — including slips, moorings and anchorages — and establishes enforcement tools for Waterfront staff and Harbor Patrol. Under the draft, vessel owners would have until Jan. 1, 2026 to demonstrate insurance; the policy also sets a 60‑day administrative period to provide proof when requested. Harbor Patrol officers would retain authority to deny permission to moor, impound vessels found in violation and proceed with existing termination processes for slip permittees who fail to comply.

Aldridge summarized how the draft addressed public concerns: older vessels would not be exempt as a class but would be subject only to a liability requirement (not hull coverage); the minimum liability level was reduced from a previously discussed $500,000 to $300,000; specific wreck/spill wording and a waiver of subrogation requirement were removed or softened after legal review; and the city requirement to be named as additionally insured was qualified by “if available from the underwriter.” The commission was told the policy would not be enforceable overnight and that staff intends a measured, educational rollout.

Commissioners pressed staff on several enforcement and scope questions. Commissioner McCray asked whether the rule could be used to require short‑term visitors anchoring in Santa Barbara waters to carry insurance; staff said the 60‑day administrative window and case‑by‑case discretion make short‑term enforcement impractical and that emergency and safe‑harbor situations would be handled flexibly. Commissioner Stedman asked for an example of how a waiver of subrogation would apply; staff and a commissioner discussed subrogation as the insurer’s right to pursue a third party (for example, a manufacturer) after paying a claim and agreed the provision was unnecessary for the ordinance draft.

Public commenters, including commercial fishing interests and owners of older wooden vessels, warned that some boats may be difficult or expensive to insure. Jeff McFarland urged flexibility and proposed allowing a marine survey in lieu of insurance for some older vessels; industry commenters said group or “port” insurance options might mitigate costs for commercial fishers. Staff acknowledged the concerns, said commercial group solutions exist in other regions and said staff will continue outreach during the ordinance committee and City Council process.

The commission voted 6–0, with Commissioner Anderson absent, to recommend the ordinance to City Council. The motion was made by Commissioner Cohen and seconded by Vice Chair Ford. The item will next go to the City’s ordinance committee and then to full City Council for two readings required to amend the municipal code.