The Council approves an insurance ordinance

City directors approved Ordinance 22-18 on the purchase of city property insurance through Moss Insurance in the amount of $ 272,941 during a city council meeting on Tuesday.

When the ordinance was adopted, two separate votes were cast. The first vote was for the adoption of the ordinance, and the second – approval of an extraordinary clause for the ordinance to enter into force immediately.

The city currently has Moss Insurance, which deals with property insurance, and that policy is due to expire on June 30, according to Human Resources Director Misty McGlotlin.

The city considered Moss Insurance and insurance through the Arkansas Municipal League. Both companies offer insurance through Alliant. AML had a lower quote of $ 182,602, but offered less than Moss offered, McGlotlin said.

“One of the biggest deciding factors is the replacement cost coverage that Moss Insurance offers,” McGlotlin said. “AML does not provide replacement costs, but only a statement of the values ​​for what we have listed.”

Siloam Springs has assets of more than $ 2 million, and if he had to list everything according to AML requirements, it would likely double the premium that the city will pay to AML, McGlotlin said.

Other differences include AML, which only covers physical damage to the specific property listed in the declaration of values, McGlotlin said.

City administrator Philip Patterson said that if the city buys a new building, Moss will cover it automatically, but AML will reimburse the costs based on that.

Alliant, through Moss Insurance, added a $ 500,000 deduction for wind, hail and any catastrophic losses, while AML offered only $ 10,000, McGlotlin said.

If the town hall is destroyed, AML will cover the cost of replacing the building and its contents up to the values ​​listed in the declaration of values, McGlotlin said.

Some of the city directors weighed the ordinance. Director David Allen said Alliant is a very well-established company.

Director Carol Smiley asked if the electric poles hit by the tornado in 2019 were covered and how much damage. McGlotlin nodded “yes,” and CFO Kristina Petrich said the damage was nearly $ 2,000 for uphill and downhill poles.

Director Mindy Hunt asked if the $ 500,000 deduction for wind, hail and catastrophic losses was new. McGlotlin shook his head. Hunt also asked if they knew what the city had paid for tornado damage outside the poles.

Petrich said he believed the city had paid for the damage to the airport hangars, and if the city had AML, it would only cover what is listed with a specific amount and only that specific amount would be covered.

Director Marla Sappington asked if the city had made sure that the value of everything the city had was where it needed to be. Petrich said that was the case with Moss.

She went on to say that through Moss, the city has a declaration of values ​​where all new assets are added upon purchase.

“So we have coverage worth about $ 100 million through Moss,” Petrich said. “But if we had to do this through AML, we would have to go through and evaluate each year what that real value was. AML only covers what is in the value declaration. “

City directors also approved the following points:

Consent agenda

• Minutes of the seminar for the joint seminar of the city council / planning committee for the overall plan for 2040 on June 7.

• Regular minutes of the meeting of the municipal council on June 7.

• Consecration of utility bills for 622 West Elgin Street.

Amending budget

• Adjustment of the budget for the purchase of an air drone in the amount of $ 10,764.


• Recognition of Fire Chief Jeremy Kriner for winning the Arkansas Fire Chief of the Year award.


• Adoption of Ordinance 22-13 on amending the city code regarding noise at third reading and then a separate vote to adopt the ordinance.

• Placing Ordinance 22-14 on the exemption of an unnamed right of way for block 900 on East Tahlequah Street at second and third readings and then holding a separate vote to adopt the ordinance.

• Adoption of Ordinance 22-15 on the re-authorization of the percentage distribution of the permanent one percent city tax on sales and the use of first reading.

• Placement of Ordinance 22-16 on tips for tips at the transfer station at first reading.

• Placing Ordinance 22-17 on fees for water meters and water mains at first reading.

Staff reports

• Fisher Ford Kayak Park update.

• Administrator report.

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