HomeMy WebLinkAboutOrdinance No. 3424-2024KENAI
CITY OF KENAI
ORDINANCE NO. 3424-2024
Sponsored by: Administration
AN ORDINANCE INCREASING FY2025 ESTIMATED REVENUES AND APPROPRIATIONS IN THE
GENERAL FUND AND AUTHORIZING RENEWAL OF THE CITY'S PROPERTY, LIABILITY,
WORKERS' COMPENSATION, AIRPORT AND OTHER ANCILLARY POLICIES WITH THE ALASKA
MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR JULY 1, 2024 THROUGH JUNE 30,
2025.
WHEREAS, with the assistance of its broker, the City solicited quotes for General Liability & Automobile,
Property & Mobile Equipment, Airport Liability, and Workers' Compensation from the two public entity
risk pools operating in Alaska; and,
WHEREAS, Alaska Municipal League Joint Insurance Association (AMLJIA) provided the lowest total
quote of $929,159 for General Liability & Automobile, Property & Mobile Equipment, Airport Liability,
Workers' Compensation and other ancillary policies; and,
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 FY2025 renewal is higher than projected and in excess of what was included in the
adopted FY2025 Budget requiring supplemental funding; and,
WHEREAS, in order to bind coverage effective July 1, 2024 a double reading of this Ordinance is being
requested; 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 estimated revenues and appropriations are increased as follows:
General Fund:
Increase estimated revenues —
Appropriation of Fund Balance $241n
Increase expenditures — Non -Departmental
Insurance $246.31
Section 2. That the City Manager is authorized to renew the City's insurance coverage for FY2025
with AMLJIA for an estimated annual premium of $929,159.
Section 3. 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
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Ordinance No. 3424-2024
Page 2of2
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 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
ATTEST:
ice M an MC, City Clerk
0�aApproved by Finance:
54,c- �!� J- -
rian Gabriel Sr., Mayor
Introduced: June 19, 2024
Enacted: June 19, 2024
Effective: June 19, 2024
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KENAI
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.lcenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: David Swarner, Finance Director
DATE: June 12, 2024
SUBJECT: Ordinance 3424-2024 - Increasing Fy2025 Estimated Revenues and
Appropriations in the General Fund and Authorizing Renewal of the
City's Property, Liability, Workers' Compensation, Airport and Other
Ancillary Policies With the Alaska Municipal League Joint Insurance
Association for July 1, 2024 Through June 30, 2025.
Each year the City goes through a process of renewing its property, liability, workers'
compensation, airport, and other ancillary insurance coverages. As part of the renewal process,
the City obtained a quote, through its insurance broker, from Alaska Municipal League Joint
Insurance Association (AMLJIA). Alaska Public Entity Insurance (APEI) was unable to quote
when requested.
The quote from AMLJIA was for a total of $929,159. The Finance Department, with the assistance
of the City's broker, determined that the rates and the insurance offered by AMLJIA for FY25 are
in the best interest of the City and recommend renewing coverage with AMLJIA. In addition,
AMLJIA has provided the City's insurance coverage since July 1, 2020 and has provided
satisfactory coverage.
A double reading at the June 19, 2024 City Council Meeting is being requested to provides
supplemental funding in FY2025 as the amount estimated in the adopted FY2025 Budget is
insufficient in the City's General Fund to bind coverage. Additional funding in the amount of
$24,631 is needed at this time.
Thank you for your consideration.