NEWMAN – The community will usher in the holiday season with its traditional tree-lighting ceremony and Santa’s arrival, after all.

With the chamber of commerce-sponsored event in doubt because of rising costs, the City Council last week agreed to reduce its liability insurance requirements for the event from $3 million to the $1 million coverage the chamber carries year-round.

Chamber leaders had notified the city in a May letter that they were no longer in a position financially to sponsor the popular event, which has been held each December dating back 20 years or longer.

In addition to the insurance expenses, Chamber President Phyllis Peavler said, the merchant organization was hit with a new expense last year when the county charged a fee for the food booths operating at the festivities.

The city, she said, was requiring the $3 million policy even for a scaled-back program.

Peavler said she offered to coordinate the tree-lighting as a volunteer if the city wanted to sponsor the program.

City Manager Michael Holland said prior to the council decision Tuesday that the city did not have the staff or resources to take over the event; nor does it have its own special events liability coverage.

Even if the city co-sponsored the event, he said in response to council questions, it would have to purchase its own special events coverage.

The $3 million liability insurance requirement had been adopted in 2006, city staff pointed out.

City Manager Michael Holland noted, however, that the council had the discretion to reduce the insurance requirement at the request of the chamber – and the city’s governing board did just that.

“We’re a small town,” council member Bob Martina pointed out. “It isn’t reasonable that they would have $3 million (in coverage).”

“This event is so well attended,” Mayor Ed Katen added. “It is a major event for our community.”

The concern behind the insurance requirement, Holland and City Attorney Thomas Hallinan said, is that the city may be held responsible in the event of an incident in which damages exceed the chamber’s million-dollar policy.

“In a worst-case scenario, we are exposed,” Holland commented, adding that the city is supportive of the chamber and its activities. The city does buy and decorate the tree, and put up other downtown decorations for the holidays.

And so the festivities are back on, with Santa’s arrival, the tree-lighting, entertainment, drawings for two bicycles, fire truck rides and more offered Saturday, Dec. 5.

There will be some changes, though.

Plans to include pony rides were scrapped, Peavler said, in response to concerns about that activity.

And the booths that have been a trademark of tree-lighting festivities past will not be included in this year’s program.

Peavler said that the last-minute decision to proceed with the program did not leave enough time to properly organize the booths. Instead, the chamber has contacted local restaurants and asked them to promote “tree-lighting specials” that evening.

The reduced insurance requirement was good for this year only. City and chamber leaders will have to work out the details in future years.

Peavler said the cost of a $3 million policy for the day’s events would be around $750; which was beyond the chamber’s reach.

The tree-lighting, she remarked, has become increasingly popular over the years.

“I’ve had people tell me that they’ve been bringing their children for years,” Peavler stated. “I’m glad this situation was resolved. I would have hated to see us lose that. Hopefully we can come up with some sort of resolution to where it is not a financial strain on anybody (in future years).”

Katen said council members were not aware until recently that the chamber had not planned to host a tree-lighting ceremony.

The city had followed a recommendation from its risk management authority to increase the insurance requirement for special events downtown, he noted.

“I don’t think anybody gave a second thought as to what the ramifications would be on the chamber,” he said. “We have to have the discretion to make exceptions in some circumstances, and one is for the chamber. In no way were we going to eliminate the tree lighting ceremony. That just wasn’t an option.”