HomeMy WebLinkAboutOrdinance No. 3142-2020;e Sponso red by: Administration
K~NAI
CITY OF KENAI
ORDINANCE NO. 3142-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING FY2021
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL, PERSONAL USE
FISHERY SPECIAL REVENUE , AND SENIOR CITIZEN SPECIAL REVENUE FUNDS; FOR
FY2021 INSURANCE COVERAGE .
WHEREAS , with the assistance of its broker, the City solicited quotes for General Liability &
Automobile, Property & Mobile Equipment, Airport Liability , Marine Liability and Workers'
Compensation from the two public entity risk pools operating in Alaska; and,
WHEREAS, Alaska Municipal League Joint Insurance Association provided the lowest total quote
for General Liability & Automobile, Property & Mobile Equipment, Airport Liability, Marine Liability
and Workers' Compensation ; and,
WHEREAS, after a coverage comparison, the City's broker has recommended binding of
insurance with Alaska Municipal League Joint Insurance Association forthe policy year beginning
July, 1, 2020 through June 30, 2021 and executing a three-year agreement for coverage to
commence on July 1, 2020 and ending June 30, 2023; and ,
WHEREAS, sufficient funds were not included in the FY2020 budget for the General, Airport
Special Revenue, Personal Use Fishery Special Revenue , and Senior Citizen Special Revenue
Funds to bind coverage requiring supplemental funding, and;
WHEREAS, pursuant to KMC 1.15 . 70( d) the City may introduce and finally pass on the same day,
an ordinance making , repealing, transferring or otherwise changing an appropriation ; and,
WHEREAS , maintaining quality and sufficient amounts of insurance coverage is in the best
interest of the City and its residents.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations -Non-Departmental
Insurance
Transfer to Senior Citizen Fund
$~
$4,587
570
$5.jfil
Ordinance No. 3142-2020
Page 2 of 3
Section 2. That the estimated revenues and appropriations be increased as follows:
Personal Use Fishery Special Revenue Fund :
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations -
Public Safety -Insurance
Streets -Insurance
Parks, Recreation & Beautification -Insurance
Boating Facility -Insurance
$66.1
$123
60
363
115
$66.1
Section 3. That the estimated revenues and appropriations be increased as follows:
Senior Citizen Special Revenue Fund:
Increase Estimated Revenues -
Transfer from General Fund
Increase Appropriations -
Senior Citizen Access -Insurance
Congregate Meals -Insurance
Home Meals -Insurance
Transportation -Insurance
Choice Waiver -Insurance
$129
155
135
71
80
$fil.Q
Section 4 . Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application .
Section 5. Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
New Tex t Underlined; [DELETED TEXT BRACKETED]
Ordinance No . 3142-2020
Page 2 of 3
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17 day of June, 2020.
ATTEST:
BRIAN GABRIEL SR., MAYOR
New Text Underlined; [DELETED TEXT BRACKETED)
Introduced: June 17, 2020
Enacted: June 17, 2020
Effective: June 17, 2020
City of Kena i I 210 ~idalgo Ave, Kena i. AK 99611 -77941907.283.7535 I www.kenai.cily
MEMORANDUM
TO:
THROUGH:
FROM:
DATE :
SUBJECT:
Mayor Gabriel and Council Members
Paul Ostrander, City Manager
Terry Eubank, Finance Director
March 31 , 2020
Ordinance 3142-2020 -Providing Supplemental Funding to Bind City
Insurance Coverage for FY2021.
The purpose of the memo is to recommend enactment of Ordinance 3142-2020 that will provide
supplemental funding in the General Fund , Personal Use Fishery Fund and the Senior Citizen
Fund to bind General Liability & Automobile, Property & Mobile Equipment, Airport Liability,
Marine Liability and Workers' Compensation insurance with Alaska Municipal League Joint
Insurance Association (AMLJIA) for the period July 1, 2020 through June 30, 2021.
The City terminated its existing three-year agreement with Alaska Public Entity Insurance (APEi)
and sought quotes for coverage when APE l's renewal quote exceeded a 10% increase in cost.
AMLJIA provide a quote that was approximately 14% less, $101,422 , with comparable terms of
coverage and coverage limits .
The insurance markets are "hardening", an industry term when carriers are reducing capacity and
seeking higher premiums, because of significant losses in recent years from hurricanes, wildfires,
sexual abuse and molestation (SAM) and police liability claims. The projected increase in the
FY2021 Budget was not sufficient for the General , Personal Use Fishery, and Senior Citizen funds
requiring supplemental funding in order to bind insurance for July 1, 2020 -June 30, 2021.
Your support for Ordinance 3142-2020 is respectfully requested .