HomeMy WebLinkAboutORDINANCE 1961-2002Suggested by: Administration
City of Kenai
ORDINANCE N0. 1961-2002
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS FOR INCREASED INSURANCE
COSTS.
WHEREAS, insurance quotes were not received until June 28, 2002; and,
WHEREAS, the lowest quote, which is from Alaska Public Entities Insurance, exceeds
the amounts budgeted for insurance; and,
WHEREAS, it is in the best interest of the City of Kenai to purchase insurance coverage;
and,
WHEREAS, funds are available in the fund balances of the various funds of the City,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance 82 736
Increase Appropriations:
Insurance X58,300
Workers Comp 24,436
82 736
Airport Land System Special Revenue Fund
Increase Estimated Revenues:
Appropriation of Fund Balance 2 726
Increase Appropriations:
Workers Comp 2 726
Water and Sewer Special Revenue Fund
Increase Estimated Revenues:
Appropriation of Fund Balance 9 476
Increase Appropriations:
Insurance X7,900
Workers Comp 1, 576
X9,476
till ~JUt L 1 C! lllllldl P~111,C1 ~J11JC P UIIU
Increase Estimated Revenues:
Appropriation of Fund Balance 2 730
Increase Appropriations:
Insurance X2,500
Workers Comp 230
2 730
Ordinance 1961-2002
Page 2
Congregate Housing Enterprise Fund
Increase Estimated Revenues:
Appropriation of Fund Balance 4 516
Increase Appropriations:
Insurance ~4, 500
Workers Comp 16
4 516
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of July,
2002. "~ ~,.!~
JOHN J~V~LIAMS, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Introduced: July 3, 2002
Second Reading: July 3, 2002
Adopted; July 3, 2002
Effective: July 3, 2002
Approved by Finance:
(06/28/2002) hl
CITY OF KENAI
"Oil Capital of Alaska"
210 FIDALGO AVE., SUITE 200, KENAI, ALASKA 99611-7794
~ TELEPHONE: 907-283-7535
~~` FAX: 907-283-3014
MEMORANDUM
T0: City Council
THROUGH: Linda Snow, City Manager
FROM: Lawrence A. Semmens, Finance Director
DATE: June 28, 2002
SUBJ: Insurance Cost Increase
We received quotes for worker's compensation, liability and property insurance today as follows:
Alaska Public Entities Insurance $390,424
Alaska Municipal League JIA $601,103*
*Includes $47,105 airport liability and $3,520 Marine Liability to make both
quotes comparable.
I met with Doug Brown, Brown Agency, who recommended awarding the lower quote. Alaska
Public Entities Insurance (APED has been our provider for the last two years on the major
components of our insurance. However, in the past we were not part of their pool except for
workers compensation. This quote puts all of our insurance in the pool. APEI is a non-
assessablepool, which means that if their liabilities exceed assets, individual pool members will
not be retroactively charged to make up the difference.
The city manager, finance director and city attorney agree that we should place the insurance
with APEI due to the significantly higher cost of the AMLJIA quote. Further, the AMLJIA
requires athree-year commitment, but they will not offer athree-year price guarantee. Doug
Brown believes going back to the commercial markets for our insurance will cost more than
either of the pools.
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