HomeMy WebLinkAboutResolution No. 2022-41r�
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KENAI
CITY OF KENAI
RESOLUTION NO. 2022-41
Sponsored by: Administration
A RESOLUTION AUTHORIZING RENEWAL OF THE CITY'S INSURANCE COVERAGE WITH ALASKA
MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR JULY 1, 2022 THROUGH JUNE 30,
2023.
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 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, exclusive of changes in scheduled values; and,
WHEREAS, the FY22 renewal quote shows a gross increase in insurance premiums of $78,695 or
13.30%; and,
WHEREAS, after adjusting for changes in scheduled values the City's increase is net $45,871 or 7.31%
and is compliant with the three-year agreement; and,
WHEREAS, the three-year commitment with AMLJIA entitles the City to a 5% annual discount, $35,264
for FY23, on renewal premiums; and,
WHEREAS, based upon the high-quality coverage, competitive premiums and credit totaling $35,264 for
FY23 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. That the City Council authorizes the City Manager to renew the City's insurance coverage
for FY2023 with AMLJIA for an estimated annual premium of $670,025.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 1st DAY OF JUNE, 2022.
A
M. a V�
Michelle MMC, City Clerk
Approved by Finance:_
Brian Gabriel Sr., Mayor
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KENAI
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenai.oity
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TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 24, 2022
SUBJECT: Resolution 2022-41 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 FY23 credit offered to the City is $35,264. 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 scheduled values, declared property values, vehicle counts or covered
payroll. After consideration of the longevity credit and the three-year discount, the FY23 premium
is $78,695, 13.30% higher than FY22. Net of changes in scheduled values the increase is
$45,871, 7.31% and is within the limits of the City's three-year agreement.
Based upon the quality coverage, competitive rates, excellent service, and $35,264 in credit
offered to the City for renewing it coverage, I recommend renewing coverage with AMLJIA.