ITEM TITLE:
Approval of the City of Valdez’s Annual Property and Casualty Insurance Renewal for the Period Beginning July 1, 2026 in the Amount of $932,844 and Authorizing the City Manager to Execute Related Renewal Documents
SUBMITTED BY: Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: $932,844 for annual renewal; $466,422 (50%) in 2025 Budget
Unencumbered Balance: $472,290
Funding Source: Allocated among five funds and all staffed departments
RECOMMENDATION:
Approve the Annual Property and Casualty Insurance Renewal for the Period Beginning July 1, 2026 for the City of Valdez
SUMMARY STATEMENT:
Policywide increase of $6,891, 0.7% is well below anticipated increases and 2026 insurance appropriations will be sufficient for needed expenditures (see below). Approval authorizes the City Manager to sign related renewal documentation.
Policy-Year (July - June) Premium Comparison
• Property/Auto/General Liability: increase $33K, 5%
• Workers Comp: decrease -$27K, -13%
• Broker Fee: unchanged $36K, 0%
• Discounts*: unchanged $0K, 0.1%
o *Loss Control Incentive is still being determined see memo on pages 6 & 7 titled “letter to members of APRA”
o Increase in General Liability primarily due to increase in payroll impacting the Liability coverages with APRA and the increase in estimated sales on the Marine policy
City of Valdez/Valdez City School District Renewal:
• City of Valdez (COV) and Valdez City School District (VCS) share portions of this renewal for cost efficiency, these are primarily broker fees and property coverage.
• The COV and VCS insurance broker David Hale with Hale and Associates will attend the meeting in person to provide background information and field questions