Clawson DDA votes to co-sponsor Clawson Fest, sets insurance and vendor conditions

The Clawson Downtown Development Authority voted Jan. 15 to formally co-sponsor Clawson Fest, approving a resolution of support while placing insurance and vendor paperwork conditions on the event.

City staff read five conditions attached to DDA support, including a requirement that Clawson Fest LLC provide a certificate of special-event insurance, that all vendors sign hold-harmless and indemnification agreements, and that food vendors or other higher-risk vendors provide certificates of insurance naming the city of Clawson as an additional insured. Staff also noted a possible cost-recovery requirement and reported that Clawson Public Works spends about $5,600 and the police department about $2,600 on the event in a typical year.

“About $12,000” is the organizers’ estimated annual advertising outlay, said Sean Dunlop, who described the festival’s destination-marketing plan that includes billboards, direct mail, radio and occasional television spots to bring people downtown. Organizers said last year’s event featured more than 120 vendors, roughly 25% of them Clawson businesses, and estimated peak attendance at “probably, like, 1,500, 2,000 people at a time.”

An MMRMA representative advising the city described the municipality’s self-insured exposure and urged consistent vendor requirements. “City has a $75,000 self insured retention,” the advisor said, calling that amount the city’s first line of potential liability and explaining that naming the city as an additional insured on vendor policies shifts risk off the city’s retention.

Board members and staff discussed whether to add a rider to the city’s policy or require third-party special-event policies. Staff said riders had been used in some prior one-day events, but larger programs often purchase a third-party special-event policy that lists multiple city events; the insurer adviser said such policies typically begin in the mid-thousands of dollars depending on limits.

The DDA chair moved that the authority co-sponsor Clawson Fest by resolution under the city’s special-events permit rules, with the caveats read into the record; a board member seconded the motion. The DDA conducted a voice vote; multiple members answered “Aye” and the chair declared the motion passed with no recorded opposition. The DDA’s motion does not direct a cash payment by the DDA and the chair said determinations about any city cost recovery or reimbursement must be made by City Council.

Organizers and board members praised the festival’s community benefits — from local vendor sales to school fundraising and volunteer opportunities — and said they would work with city staff to ensure the required insurance and vendor documents are provided before the event. The matter now moves to the city council level for any decisions about cost recovery or formal city insurance arrangements.

The DDA adjourned following the vote.