HomeMy WebLinkAboutResolution No. 2021-39KENAI
CITY OF KENAI
RESOLUTION NO. 2021-39
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
RENEWAL OF THE CITY'S INSURANCE COVERAGE WITH ALASKA MUNICIPAL LEAGUE
JOINT INSURANCE ASSOCIATION FOR JULY 1, 2021 THROUGH JUNE 30, 2022.
WHEREAS, the City has been a member of Alaska Municipal League Joint Insurance Association
(AMLJIA) since July 1, 2020 receiving competitive rates and quality insurance coverage for the
City; and,
WHEREAS, the City has entered into a three-year commitment with AMLJIA for insurance
coverage for the period of July 1, 2020 through June 30, 2023; and,
WHEREAS, the three-year commitment allows the City to terminate the agreement should the
City's net premium increase by more than 10% in any single year; and,
WHEREAS, the FY22 renewal quote shows a decrease in insurance premiums of $4,882 or
negative 0.81%; and,
WHEREAS, the three-year commitment with AMLJIA entitles the City to a 5% annual discount,
$31,123 for FY22, on renewal premiums; and,
WHEREAS, based upon the high-quality coverage, competitive premiums and credit totaling
$31,123 for FY22 it is in the City's best interest to retain coverage with AMLJIA for the City's
insurance needs.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Council authorizes the City Manager to renew the City's insurance coverage
for FY2022 with AMLJIA for an estimated annual premium of $591,330.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21d day of June, 2021.
BRIAN GABRIEL, SR., MAYOR
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MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 26, 2021
SUBJECT: Resolution 2021-39 Authorizing Renewal of the City's Property,
Liability, Workers' Compensation, Airport and other ancillary policies
with the Alaska Municipal League Joint Insurance Association.
Each year the City goes through a process of renewing its insurance coverages. The City has
been a member of the Alaska Municipal League Joint Insurance Association (AMLJIA) since July
1, 2020 and has received quality insurance at competitive rates.
AMLJIA provides a 5% premium credit to members who enter into a three-year commitment for
coverage with AMLJIA. The FY22 credit offered to the City is $31,123. The three-year agreement
required to receive the credit allows the City to terminate the agreement at any time should the
net premium for coverage increase by more than 10% from one fiscal year to the next. Exclusion
to this limit are increases in declared property values, vehicle counts or covered payroll. After
consideration of the longevity credit and the three-year discount, the FY22 premium is 0.81% less
than FY21.
Based upon the quality coverage, competitive rates, excellent service, and $ 31,123 in credit
offered to the City for renewing it coverage, I recommend renewing coverage with AMLJIA.