Agenda 05/26/2015 Item #16E 3 5/26/2015 16.E.3.
t'\ EXECUTIVE SUMMARY
Recommendation to approve a budget amendment to the Property and Casualty
Insurance Fund (516) for the funding of three large claims and to recognize
corresponding reinsurance recoveries in the amount of$255,100.
OBJECTIVE: To fund three large claims settlements and recognize corresponding reinsurance
recoveries.
CONSIDERATIONS: The Risk Management Division administers a partially self-funded Property
and Casualty insurance program. The County purchases excess insurance to cover claims that
exceed a self-insured retention. Claims are administered through Johns Eastern Company, the
County's adjusting firm.
During FY 2015, a large property claim and two litigated claims were paid on behalf of the Board
through Johns Eastern Company. These claims were the Administration Building flood claim; the
Edwards vs. Collier County lawsuit; and the Capasso vs. Collier County lawsuit.
The Risk Management Division sought reinsurance recoveries from the County's excess carrier(s)
for these claims and will recover $255,100. Therefore, to assure sufficient appropriations for the
remainder of FY 2015, it is recommended that a budget amendment be approved.
FISCAL IMPACT: The attached budget amendment reflects an increase to the Fund 516
Insurance Company Refunds line item in the amount of $255,100 to recognize the collection of
reinsurance proceeds and a corresponding increase of$255,100 in the Property Casualty Claims
(expense) line item to reflect claims expenditures associated with the claims as described. There
will be no net fiscal impact to Fund 516, Property Casualty Insurance.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires
majority vote for approval. -CMG
RECOMMENDATION: That the Board approves a budget amendment to the Property and
Casualty Fund (516)for the funding of claims as outlined in this Executive Summary.
PREPARED BY: Linda L. Jackson Best, MBA, Manager, Risk Finance
Jeffrey A. Walker, CPCU, ARM, Division Director, Division of Risk Management
Attachments: Fund 516, Property and Casualty Insurance Budget Amendment
Packet Page-834-
5/26/2015 16.E.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.3.
Item Summary: Recommendation to approve a budget amendment to the Property and
Casualty Insurance Fund (516)for the funding of three large claims and to recognize
corresponding reinsurance recoveries in the amount of$255,100.
Meeting Date: 5/26/2015
Prepared By
Name: Linda Best
Title: Manager-Risk Finance,Risk Management
5/1/2015 8:02:12 AM
Approved By
Name: WalkerJeff
Title: Division Director-Risk Management, Risk Management
Date: 5/4/2015 8:46:38 AM
Name: GreeneColleen
Title: Assistant County Attorney, CAO General Services
Date: 5/4/2015 1:30:18 PM
Name: PriceLen
Title: Department Head-Administrative Svc, Administrative Services Department
Date: 5/11/2015 11:11:18 AM
Name: GreeneColleen
Title: Assistant County Attorney, CAO General Services
Date: 5/11/2015 11:53:11 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 5/11/2015 1:38:17 PM
Name: KimbleSherry
Title: Management/Budget Analyst, Senior, Office of Management&Budget
Date: 5/12/2015 9:18:13 AM
Packet Page-835-
5/26/2015 16.E.3.
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 5/12/2015 1:17:10 PM
n
n
Packet Page -836-