MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Colette Thompson, Borough Attorney

Jeff Sinz, Finance Director

Todd Syverson, Superintendent

Gary Lamb, Risk Manager

DATE: February 6, 2003

SUBJECT: Resolution 2003-019, authorizing the issuance of request for proposals for general broker services commencing July 1, 2003

Since approximately 1989, the borough has acquired insurance by soliciting proposals directly from underwriters, insurers, and brokers for specific lines of insurance. As the markets have recently hardened resulting in much higher prices than previously experienced, and as fewer insurers offer insurance in the State of Alaska, the risk management committee would like to utilize a broker-of-record to acquire insurance for the borough and school district. A broker-of-record would be selected through the competitive request for proposal process based primarily on qualifications and experience. The selected broker would then solicit quotes from all available insurers to obtain the best coverage for the borough for the best price. Additionally, the broker would be available to advise the borough regarding coverage gaps or overlaps and changes in available coverage. KPB 2.34.110 requires assembly approval for contracts for general broker services of a year or longer. Accordingly, assembly approval is hereby sought to select a general broker for insurance coverages commencing July 1, 2003.