Board approves insurance ordinance


City directors approved Ordinance 22-18 regarding the city purchasing property insurance through Moss Insurance in the amount of $272,941 during Tuesday’s city board meeting.

Two separate votes were taken in the approval of the ordinance. The first vote was to adopt the ordinance and the second was to approve an emergency clause to have the ordinance take effect immediately.

Presently, the city has Moss Insurance handle its property insurance and that policy is set to expire on June 30, according to human resources director Misty McGlothlin.


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

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

Siloam Springs has over $2 million in assets and, if it were to itemize everything as AML required, it would likely double the premium the city would pay to AML, McGlothlin said.

Other differences include AML only covering physical damage to the specific property listed on the statement of values, McGlothlin said.

City Administrator Phillip Patterson said, if the city were to purchase a new building, Moss would cover it automatically but AML would prorate the cost back up based on that.

Alliant, through Moss Insurance, has added a $500,000 deductible for wind, hail and any catastrophic loss, while AML only offers $10,000, McGlothlin said.

If city hall were destroyed AML would cover the cost of replacing the building and contents up to the values listed on the statement of values, McGlothlin said.

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

Director Carol Smiley asked if the electric poles that were hit by the tornado in 2019 were covered and how much the damage was. McGlothlin nodded yes and Finance Director Christina Petriches said the damage was almost $2,000 for the poles up and down the highway.

Director Mindy Hunt asked if the $500,000 deductible for wind, hail and catastrophic loss was new. McGlothlin shook her head no. Hunt also asked if they knew what kind of expenses the city paid for tornado damage outside of the poles.

Petriches said she believes the city paid for damages to the hangars at the airport and if the city would have had AML it would have only covered what was listed with a specific amount and only that specific amount would have been covered.

Director Marla Sappington asked if the city has made sure the value of everything the city has is where it needs to be. Petriches said, with Moss, it is.

She went on to say that through Moss the city has a statement of values where all new assets are added when purchased.

“So we have about $100 million worth of coverage through Moss,” Petriches said. “But if we were to do this through AML we would have to go through and assess every year with what that actual value was. AML only covers what’s on the statement of value.”

City directors also approved the following items:

Consent Agenda

• Workshop minutes for the joint city board/planning commission workshop for the 2040 Comprehensive Plan on June 7.

• Regular meeting minutes for the June 7 city board meeting.

• Dedication of utility easements for 622 West Elgin Street.

Budget Amendment

• Budget amendment for the purchase of an aerial drone in the amount of $10,764.


• Recognition of Fire Chief Jeremey Criner for winning Arkansas Fire Chief of the Year.


• Placing Ordinance 22-13 concerning amending the city code in regard to noise on its third reading and then taking a separate vote to adopt the ordinance.

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

• Placing Ordinance 22-15 concerning the reauthorization of the percentage allocation of the permanent one percent citywide sales and use tax on its first reading.

• Placing Ordinance 22-16 regarding transfer station tipping fees on its first reading.

• Placing Ordinance 22-17 concerning water meter and water tap fees on its first reading.

Staff reports

• Fisher Ford Kayak Park Update.

• Administrator’s Report.

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