HomeMy WebLinkAboutResolution No. 2026-47KENAI
CITY OF KENAI
RESOLUTION NO. 2026-47
Sponsored by: Administration
A RESOLUTION AUTHORIZING BINDING OF THE CITY'S PROPERTY, LIABILITY, WORKERS'
COMPENSATION, AIRPORT AND OTHER ANCILLARY INSURANCE POLICIES WITH THE ALASKA
PUBLIC RISK ALLIANCE FOR JULY 1, 2026 THROUGH JUNE 30, 2027.
WHEREAS, with the assistance of its broker, the City solicited a quote for General Liability & Automobile,
Property & Mobile Equipment, Airport Liability, and Workers' Compensation from the single public entity
risk pool operating in Alaska; and,
WHEREAS, Alaska Public Risk Alliance (APRA) provided the quote of $1,056,558 for General Liability &
Automobile, Property & Mobile Equipment, Airport Liability, and Workers' Compensation; and,
WHEREAS, ancillary policies will include marine and surety bonds; and,
WHEREAS, the FY2027 plan premium represents a 4.99% increase from prior year; and,
WHEREAS, employee salary and wages have increased from the prior fiscal year as a result of approved
compensation adjustments; and,
WHEREAS, the increase in payroll has resulted in higher general liability and workers' compensation
insurance premiums; and,
WHEREAS, the increase in premium was forecasted and FY2027 Budgeted amounts are sufficient to
bind coverage; and,
WHEREAS, the recommendation of the City's broker is to bind coverage with APRA based on the
completeness and availability of the coverage and the value to the City of participation in a public entity
risk pool; 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 Council authorizes the City Manager to bind the City's insuran a coverage
for FY2027 with the Alaska Public Risk Alliance for an estimated annual pre ium of $1,05&,558.
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Section 2. That this Resolution takes effect immediately upon passag ;/
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, TH 7 DAY ,J 2/6.,
H.
ATT"67.
Michelle M. ner ,,M , City Clerk
Approved by Finance:
New Text Underlined; [DELETED TEXT BRACKETED]
F N A I
City of Kenai 1 210 Pidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www kenai.city
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: May 29, 2026
SUBJECT: Resolution 2026-47 - Authorizing Binding of the City's Property, Liability,
Workers' Compensation, Airport and Other Ancillary Insurance Policies with
the Alaska Public Risk Alliance for July 1, 2026 Through June 30, 2027.
Each year the City goes through a process of procuring its property, liability, workers'
compensation, airport, and other ancillary insurance coverages.
Alaska Public Risk Alliance (APRA) is the single public entity risk pool for municipalities and
school districts in the State of Alaska, since Alaska Municipal League Joint Insurance Association
(AMLJIA) and Alaska Public Entity Insurance (APEI) merged effective July 1, 2025.
The plan premium represents a 4.99% increase from prior year. Employee salary and wages
have increased from the prior fiscal year as a result of approved compensation adjustments and
staffing costs. The increase in payroll has resulted in higher general liability and workers'
compensation insurance premiums. This increase in cost was budgeted for in the adopted
FY2027 Budget.
Ancillary policies include marine and surety bond coverage.
The quote from APRA was for a total of $1,056,558. The Finance Department, with the assistance
of the City's broker, determined that the rates and the insurance offered by APRA for FY2027 are
in the best interest of the City and recommend binding coverage with APRA.
Thank you for your consideration