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FY2018-07 Entering Into A Three-Year Insurance Participant Membership Agreement With The Alaska Municipal League Joint Insurance Association.1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Introduced by: Borough Manager Drafted by: Finance Director Introduced on: 07/20/2017 Adopted on: 07/20/2017 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2018-07 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ENTERING INTO A THREE YEAR INSURANCE PARTICIPANT MEMBERSHIP AGREEMENT WITH THE ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION WHEREAS, AS 21.76 enacted by the 1986 Alaska Legislature, provides a means for local governments and school districts to join together in a joint insurance arrangement intended to mitigate the cyclical and erratic nature of the conventional insurance market; and WHEREAS, Alaska Municipal League Joint Insurance Association, Inc. (AMLJIA) is a joint insurance arrangement as authorized under AS 21.76.010 et seq., whose participating members have agreed to pool contributions in order to assume risks for losses to the participants on a group basis; and WHEREAS, the Kodiak Island Borough (KIB) desires either to renew its current membership in AMLJIA or to become a participating member of AMLJIA; and WHEREAS, it is in the mutual interests of AMLJIA, KIB, and other participating members that AMLJIA maintain a stable membership in order to more effectively administer the joint insurance agreement and serve the needs of the participating members; and WHEREAS, the Board of Trustees of AMLJIA has determined that in order to encourage participating members to make a multi-year commitment, it is efficient and cost-effective, for both participating members and for AMLJIA, to offer a discount on the annual contributions required to be paid by all participating members that commit to a three-year AMLJIA membership term; and WHEREAS, KIB desires to commit to a three-year membership in AMLJIA, subject to the terms and conditions stated in the AMLJIA Cooperative Participation Agreement ("CPA") and the AMLJIA Participant Coverage Memorandum ("PCM"); NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH as follows: Section 1: The Kodiak Island Borough Assembly approves a Cooperative Participation Agreement (hereinafter the "Agreement'), a copy of which is attached hereto and incorporated by reference. The Manager is hereby authorized and directed to execute said "Agreement' and Kodiak Island Borough, Alaska Resolution No. FY2018-07 Page 1 of 2 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 such other documents as may be necessary to effectuate participation of the Borough as a member of the Joint Insurance Association. Section 2: the Kodiak Island Borough Assembly pledges to appropriate sufficient funds for the annual premiums and assessments to enable the "Agreement' to go into effect on July 1, 2017 and to remain in effect for a term of at least three years or until all payment obligations have been satisfied. Amounts payable to the Association, as encumbered by the "Agreement', shall be classified as 'operating expenses" and are subject to annual appropriation by the Borough Assembly. Section 3: The Kodiak Island Borough holds two options to withdraw from the program as follows: (1) Submitting written notice cancellation and intent to withdraw within thirty (30) days after receiving notice of an anticipation of rate increase greater than 10% - without penalties. (2) Submitting written notice of intent to withdraw prior to end of agreement term — with penalties. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTIETH DAY OF JULY, 2017. KODIAK ISLAND BOROUGH A. Rohrer, Mayor VOTES: Ayes: Crow, LeDoux, Skinner, Smiley Noes: Symmons Absent: Townsend, VanDaele Kodiak Island Borough, Alaska ATTEST: QaILA, Nova M. Javier, MMC, derk Resolution No. FY2018-07 Page 2 of 2