Resolution 16-073 Contract With Alaska Municipal League Joint Insurance Association

CITY OF HOMER
HOMER, ALASKA

City Manager

RESOLUTION 16-073

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, ENTERING INTO A THREE-YEAR CONTRACT WITH ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION IN THE AMOUNT OF $396,487 FOR YEAR ONE WITH AN ANNUAL INCREASE NOT TO EXCEED 10% UNLESS COVERAGE IS EXPANDED TO INCLUDE MARINA INSURANCE AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

            WHEREAS, The Alaska Municipal League Joint Insurance Association, Inc. (AMLJIA), is a not-for-profit corporation established pursuant to AS 21.76 by the Alaska Municipal League to provide risk management services for Alaska municipalities, city and borough school districts and regional education attendance areas; and  

WHEREAS, Alaska Municipal Joint League Insurance Association (AMLJIA) has provided property, general liability and automobile insurance for the City of Homer since 1998; and

               WHEREAS, The City’s contract with AMLJIA expires on June 30, 2016; and

WHEREAS, In January 2016 the City Manager notified AMLJIA of the City of Homer’s intent to solicit bids from AMLJIA and Alaska Public Entity Insurance (APEI), a not-for-profit corporation that provides similar insurance services to public organizations in the interest of procuring the most high-quality and cost effective insurance to service the City of homer, its employees and residents; and

WHEREAS, Quotes were received in June 2016 from AMLJIA and APEI at over $200,000 less than our current budget for insurance services, resulting in significant savings to the City of Homer operating budget; and

WHEREAS, Because AMLJIA does not offer marina insurance we purchase it separately from USI Northwest at a cost of $35,000 a year; and

WHEREAS, If AMLJIA is able to include marina coverage we would be able to purchase it through them which may result in a premium increase over 10%; and

WHEREAS, It is in the best interest of the City to consolidate coverage; and

WHEREAS, The difference in the cost of insurance between AMLJIA and APEI is minimal; and

WHEREAS, AMLJIA has an excellent track record with the City for expeditiously and professionally handling claims and protecting the interests of the City of Homer.

             NOW, THEREFORE, BE IT RESOLVED that the Homer City Council authorizes the City Manager to enter into a three-year contract with AMLJIA and execute the appropriate documents.

               BE IT FURTHER RESOLVED that if AMLJIA is able to provide comparable marina coverage by June 30, 2017 at the same price or below USI Northwest, the marine coverage contract can be transferred to AMLJIA without triggering the exit clause of the contract for an increase over 10%.

             PASSED AND ADOPTED by the Homer City Council this 13th day of June, 2016.

                                                                                                        CITY OF HOMER
 

________________________
MARY E. WYTHE, MAYOR
 

ATTEST:

______________________________
JO JOHNSON, MMC, CITY CLERK

Fiscal Note: Insurance costs $396,487 for 2016/2017 and not to exceed 10% for 2017/2018 and 2018/2019.