City joins Arizona Municipal Risk Retention Pool; council adopts volunteer workers27 compensation salary equivalent

The Lake Havasu City Council voted 6-0 Tuesday to accept membership in the Arizona Municipal Risk Retention Pool (AMRRP), approve the membership agreement and bylaws, and authorize the city manager to execute the agreement. The council also adopted a companion resolution establishing the salary equivalent used to calculate workers' compensation insurance premiums and benefits for volunteers.

Risk management staff explained the pool spreads liability risk among participating Arizona municipalities and offers benefits such as law enforcement liability training, land-use agreement review and personnel-law recommendations at no cost to members. The pool also issues dividends in many years, which staff said can stabilize long-term insurance costs compared with purchasing coverage on the open market.

Staff said Lake Havasu City would become the 76th member of the pool and that membership can produce long-term cost stabilization through shared risk and dividend distributions in favorable years. The staff presentation said the pool provides general liability and workers' compensation coverage and additional member services that the city can use.

Separately, state statute requires a city resolution establishing the salary equivalent used to calculate volunteer workers' compensation benefits; staff characterized this item as a housekeeping action tied to pool membership.

Vice Mayor David Lane moved to adopt the resolution accepting membership in AMRRP and authorizing the city manager to execute the agreement; the motion passed 6-0. The council then moved to adopt the workers' compensation salary equivalent resolution, also passing 6-0.

Staff told the council they expect membership to stabilize rates and provide access to additional no-cost services for the city.