HomeMy WebLinkAboutResolution No. 2020-42~ Sponsored by : Administrat ion
Ki;NAI
CITY OF KENAI
RESOLUTION NO. 2020-42
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
BINDING OF INSURANCE COVERAGE FOR THE CITY FOR THE PERIOD OF JULY 1, 2020
THROUGH JUNE 30, 2021 AND AUTHORIZING EXECUTION OF A THREE-YEAR
AGREEMENT FOR 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 for the policy year beg inning
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, execution of a three-year agreement for coverage entitles the City to a discount of
$31 ,3 80 and allows the City to terminate the agreement time should the annual premium for
coverage increase by more than 10% year over year, excluding changes in declared values; 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 RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to bind the City's insurance coverages for the
policy period of July 1, 2020 through June 30, 2021 with Alaska Municipal League Joint Insurance
Arrangement (AMLJIA).
Section 2. That the City Manager is authorized to execute a three-year agreement for
insurance with AMLJIA to for the period July 1, 2020 through June 30, 2023.
Section 2. That this resolution takes effect immediately upon passage .
Resolution No. 2020-42
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 17t11 day of June, 2020 .
B RIAN GABRIEL, SR., MAYOR
ATTEST:
City of Kena i I 210 l=idalgo Ave. Ken ai, A K 99611 -7794 1907.28 3.753 5 I www.k ena i.ci!y
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Gabriel and Council Members
Paul Ostrander, City Manager
Terry Eubank, Finance Director
March 31 , 2020
Resolution 2020-42 -Recommendation to bind coverage with Alaska
Municipal League Joint Insurance Association (AMLJIA).
The purpose of the memo is to recommend binding of 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 and to authorize the execution of a three-year agreement with AMLJIA for
these coverages.
Execution of a three-year agreement entitles the City to a discount of $31,380. The City may
terminate this agreement at any time should the annual premium for coverage increase by more
than 10% year over year, excluding changes in declared values.
The City terminated its existing three-year agreement with Alaska Public Entity Insurance (APEi)
and sought quotes for coverage when APEl'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.
Your support for Resolution 2020-42 is respectfully requested.