Agenda 05/26/2009 Item #16E 4
Agenda Item No, 16E4
May 26, 2009
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation to approve a Budget Amendment to Fund 516, Property and
Casualty Insurance for the payment of property insurance claims related to
Tropical Storm Fay in the amount of $712,600 and to recognize corresponding
reinsurance recoveries in the amount of $462,600.
OBJECTIVE: To gain approval from the Board of County Commissioners for a Budget
Amendment to Fund 516, Property and Casualty Insurance, to fund the payment of claims
expenditures related to Tropical Storm Fay and to recognize anticipated reinsurance recoveries,
CONSIDERATIONS: The Risk Management Department administers a partially self-funded
property and casualty insurance program. The program includes excess property insurance
coverage to pay claims related to tropical storms, hurricanes, and wind related storm events, In
the' FY 08 year, the program contained a self insured retention (deductible) of 2% per covered
building subject to a minimum of $250,000 per named storm and a maximum retention of
$2,500,000,
Tropical Storm Fay made landfall in Collier County on August 19, 2008, As a result, the County
incurred significant loss to insured property, The repair or replacement of damaged property has
been coordinated between the affected departments; the Finance Department; and the vendors
hired to make needed repairs, Final repairs are being completed and claim payments will be
released in the near future, The County's adjusting company, Johns Eastern, has estimated that
___ approximately $712,600 will be paid when all outstanding claims are adjudicated, Further, it is
estimated that the County will receive approximately $462,600 in reinsurance proceeds from its
property carriers,
Therefore, to process these claims in an efficient manner, it is recommended that a Budget
Amendment be approved, Risk Management will submit a claim report to the Board documenting
claims paid as part of Resolution 2004-15. Unused funds, if any, will be returned to Fund 516,
Property and Casualty Reserves,
FISCAL IMPACT: Funds are available in Fund 516, Property and Casualty Reserves and from
reinsurance proceeds for this purpose. Claims payments are anticipated to be $712,600 and the
County anticipates the receipt of approximately $462,600 in reinsurance proceeds from its
property carriers, The remainder will come from reserves, There are sufficient remaining
reserves to meet future underwriting needs and to fund incurred liabilities.
GROWTH MANAGEMENT IMPACT: None,
LEGAL CONSIDERATIONS: This item is not quasi-judicial, and as such ex parte disclosure is
not required, This item requires majority vote only. This item is legally sufficient for Board action,
-CMG
RECOMMENDATION: It is recommended that the Board approve a Budget Amendment to Fund
516, Property and Casualty Insurance, to fund the cost of claims related to Tropical Storm Fay in
the amount of $712,600,
-
PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Department of Risk Management
Item Number:
Item Summary:
Meeting Date:
Page 1 of 1
Agenda Item No. 16E4
May 26, 2009
Page 2 of 4
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16E4
To gain approval from the Board of County Commissioners for a Budget Amendment to Fund
516, Property and Casualty Insurance, to fund the payment of claims expenditures related to
Tropical Storm Fay and to recognize anticipated reinsurance recoveries.
5/26/200990000 AM
Prepared By
Jeffrey A. Walker, CPCU,
ARM
Administrative Services
Risk Management Director
Date
Risk Management
5/6/20099:02:45 AM
Approved By
Jeffrey A, Walker, CPCU,
ARM
Administrative Services
Risk Management Director
Date
Risk Management
5/6/2009 9:03 AM
Date
Approved By
Colleen Greene
County Attorney
Assistant County Attorner
County Attorney Office
5/6/2009 1 :51 PM
Approved By
Jeff Klatzkow
County Attorney
County Attorney
County Attorney Office
Date
5/6/2009 4:00 PM
Approved By
Len Golden Price
Administrative Services
Administrative Services Administrator
Date
Administrative Services Admin.
5/14/20093:20 PM
Approved By
OMB Coordinator
County Manager's Office
OMB Coordinator
Date
Office of Management & Budget
5/15/20099:02 AM
Approved By
Laura Davisson
County Manager's Office
Management & Budget Analyst
Office of Management & Budget
Date
5/15/200910:12 AM
Approved By
Leo E. Ochs, Jr.
Board of County
Commissioners
Deputy County Manager
Date
County Manager's Office
5/18/200911:05 AM
file://C:\AgendaTest\Export\ 130-May%2026,%202009\ 16,%20CONSENT%20AGENDA\ 1..,
5/20/2009
Agenda Item No. 16E4
May 26, 2009
Page 3 of 4
BUDGET AMENDMENT REQUEST
For Budget/Finance Use Only
BA#..
JE#.
BAR#.,
APH Date
516
Fund Number
Property and Casualty
Fund Description
Date Prepared: May 4, 2009
Approved by BCC on:
Item No,:
Fund Center Title:
WBS Element Title:
Expense Budget Detail
Property and Casualty
Fd Ctr No,: 121650
WBS No,:
(Provide the Fund Center or WBS element information; it is not required to provide both.)
Fund WBS Commit Commitment Item Increase Current Revised
Center Element Item Description (Decrease) Budget Budget
121650 645915 Prop/Cas. Insurance $712,600 $1,300,000 $2,012,600
Claims
Net Change to Budget $712,600
Fund Center Title:
WBS Element Title:
P 'd h F d C WBS ]
Expense Budget Detail
Property and Casualty
Fd Ctr No,: 91901 0
WBS No.:
( roVl e t e un enter or e ement In onnatlOn; It IS not reqUIre to proVI e ot .)
Fund WBS Commit Commitment Item Increase Current Revised
Center Element Item Description (Decrease) Bud2et Budget
919010 996400 Reserve for Property and ($250,000) $6,147,300 $5,897,300
Casualty
. f
d
d b h
Net Change to Budget ($250,000)
Fund Center Title:
WBS Element Title:
h d
Revenue Budget Detail
Property and Casualty
FdCtrNo,: 121650
WBS No.:
(ProvIde t e Fun Center or WBS element In onnatlOn; it lS not reqUIred to PHlVIde both.)
Fund WBS Commit Commitment Item Increase Current Revised
Center Element Item Description (Decrease) Bud2et Bud2et
121650 369300 Reimbursement for Prior 462.600 0 462,600
Year Charges
. ti
Net Change to Budget $462,000
Agenda Item No. 16E4
May 26, 2009
Page 4 of 4
EXPLANATION
Why are funds needed? To fund property claims relating to Tropical Storm Fay in the amount of
$712,600,
Where are funds available? $462,600 is available from reinsurance recoveries and $250,000 is
available from Reserves for Property and Casualty, within the same Fund (516),
REVIEW PROCESS
DATE I
5/4/09
Cost Center Director: Jeff Walker
Division Administrator:
Bud2et Deoartment:
A2encv Mana2er:
Finance Department:
Clerk of Board Admin.:
Input by:
B.A. No.: