Denver tab $1.85 million for DNC?
Council wants assurance of reimbursement for upfront cost of coverage
By Daniel J. Chacon, Rocky Mountain News (Contact)
Tuesday, May 6, 2008
Mayor John Hickenlooper said convention would not cost taxpayers.
Before Denver landed the Democratic National Convention, Mayor John Hickenlooper promised that taxpayers wouldn't have to underwrite the four-day event.
But now the city is going to have to fork over at least $1.85 million upfront for liability and workers compensation insurance policies to cover the outside law enforcement agencies Denver needs to help with security during the DNC.
Council members, who have to approve the expenditure, first want assurances that the city will be reimbursed, which the mayor's office anticipates will happen but says it can't be 100 percent sure.
"We haven't gotten a firm answer on that," Katherine Archuleta, a senior adviser to the mayor, said Monday.
"We anticipate that we will be," she said. "We've had several discussions with (the Department of Justice) about whether they'll be reimbursable or not, and I think we're feeling positive about it."
Denver doesn't really have much of a choice.
Without insurance coverage, the dozens of neighboring law enforcement agencies the city has asked to provide officers won't do it.
Last month, the Rocky Mountain News reported that Aurora wouldn't send 300 cops to help Denver unless the city paid for liability and workers compensation.
"Absent this insurance, the public entities will not sign" intergovernmental agreements with the city, according to a memo from Raymond Sibley, Denver's risk management director.
Adequate police staffing is key to the convention for various reasons, including the expected throng of protesters, some of whom have threatened to march on city streets without permits and set up a "tent city" in Civic Center despite prohibitions against overnight camping.
Council members said they understand the need for insurance coverage and are supportive, but they want to know that the federal government will pay the city back.
"I'd like a guarantee, but I'd like a guarantee on the full $50 million, which I think has been slowly coming," said Councilman Rick Garcia, referring to a $50 million federal grant the city received to cover convention security costs.
The chair of the council's finance committee, which will discuss the insurance coverage Wednesday, wants it in writing.
"We were promised that the DNC would not tap city dollars," said Councilwoman Jeanne Faatz.
"I'm really very insistent about that because that's what we were told."
Council President Michael Hancock said he doesn't expect the city will be "left holding the bag."
"The mayor and the administration, as well as the DNC, have made it very clear that city money will not be used on this convention," he said. "I still expect that to be the case, and I believe (the insurance) will be reimbursed as part of the security costs."
chacond@RockyMountainNews.com or 303-954-5099
DNC insurance costs
Denver may have to spend at least $1.85 million upfront on insurance coverage for dozens of law enforcement agencies to provide security during the Democratic National Convention.
$972,222 Workers compensation insurance from Ace USA
$850,000 liability insurance from Lexington Insurance Co.
$25,500 fees and taxes
* Additional insurance: The city anticipates having to buy additional automobile insurance, but the total cost for all policies is not to exceed $2 million.
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May 6, 2008
6 a.m.
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youngman writes:
We were also assured that it would not cost us the residents of Denver anything. My building downtown is having to spend $40,000 in security for the convention wether we want to or not. Plus the city nor the DNC has TOLD us if we can have business as usual. To me this is the worst thing Denver could have done. Sure the Politicians get their day in the spotlight....but if you are not a fan of politicians...it will be a nightmare...
May 6, 2008
6:52 a.m.
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holekeeper writes:
ooooooohhhhhhh yea another good day not to live in Denver or Boulder. I wish we could make them thier own state and then all would be good.
May 6, 2008
7:11 a.m.
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MarineGrunt writes:
And they wonder why I hate both parties....
This is going to bring nothing but hate and discontent. Should be fun to watch. Stocking up on popcorn as we speak.
"Burn Baby Burn, disco inferno!"
May 6, 2008
12:45 p.m.
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danirobi writes:
Oh nice, just the Democrats showing their true colors again. TAX TAX TAX, SPEND SPEND SPEND!!!
May 6, 2008
1:05 p.m.
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Lewlew writes:
Danirobi, it would be the same thing if it was the Republican convention. Doesn't really matter, politics suck for all involved.
May 6, 2008
1:08 p.m.
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Big_D writes:
They will bring many millions more into our economy so I thought the short-sighted right wingers would cry. I bet the booked solid hotels and restaurants have a different take. Yes Democrats tax and spend, how else could we repair the damage of Republican deficit spending?