Lack of insurance brings end to annual Way Fair in Pottsville

April 04--A street fair held to welcome the month of May in Pottsville, a tradition for the past 38 years, won't be held this year because the city has decided not to continue covering the event under its liability insurance, City Administrator Thomas A. Palamar said Thursday.

Billie Payne, chairwoman of the American Way Fair Committee, confirmed Thursday the 39th Annual American Way Fair scheduled for May 4 will not be held.

For many years -- neither Palamar nor Payne knew how many -- the City of Pottsville covered the event under its general liability insurance policy, provided by Higgins Insurance, Pottsville. Palamar said on Monday he made the decision to remove the Way Fair from the city's coverage.

The price of insurance hasn't gone up, Palamar said, when asked what prompted his decision. But the troubled economy and the city's slim budget has made him cautious about the city's liabilities.

"It's not a city event. It's an American Way Fair event. We had covered it in the past, but it really wasn't a good practice because it is not a city event. If you're extending your insurance to things you're not in control of, it exposes the city to potential liabilities that it shouldn't really have. And just because things were done a certain way in the past doesn't mean it's the way they should be done. This year, we required them to have an insurance policy of their own to cover the liability, but they couldn't afford it. I made the decision Monday," Palamar said.

The event was a street fair on Centre Street from Mahantongo Street to Laurel Boulevard, including rides for children provided by Otto's Amusements. Church and community groups worked food stands, while local bands performed and magicians entertained crowds. Every year, Payne hoped more than 1,000 would turn out. On average in recent years, she said it attracted "about 400."

In late March, Payne started making preparations for the event as she always does. This included typing up a letter to the city, notifying officials of the date of the event.

Frances Bonchak, secretary to Mayor James T. Muldowney, who was hired last year, asked questions about the insurance.

"Anybody, if they have an activity in town and if we close a street for it, they have to provide a certificate of insurance for us and name the city as an additional insured," Palamar said.

This spurred the conversation that led Palamar to make his decision.

"We asked the Way Fair committee if they could provide the city with a certificate of insurance," Palamar said.

"They said they cannot cover the American Way Fair as far as insurance is concerned," Payne said.

"They were not able to do that. They weren't able to afford it," Palamar said.

"That would be too much of an undertaking for me to do, to try to get someone to sponsor or pay for the insurance. So I decided this is the end," Payne said Thursday.

When asked how much one would cost, she said, "I have no idea. I didn't even look into it."

Such policies could start at $300, James Ryon, a partner at Richard B. Ryon Insurance in Pottsville, said Thursday. And that would be a $1 million liability policy for special one-day events which don't involve the sale of alcohol, but involve between 500 to 1,000 people.

"That's a rough estimate," Ryon said.

Palamar encouraged Payne and the American Way Fair Committee to consider options for the future. He suggested they do a smaller event near the Barefield Recreation Complex at 823 Terry Reiley Way.

"Perhaps they might want to condense it and do it differently. I don't think they were getting the crowds they once got," Palamar said.

Payne said the committee may consider such options.

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