Agenda 10/24/2017 Item #16E 510/24/2017
EXECUTIVE SUMMARY
Recommendation to approve a budget amendment transferring $5,000,000 from Property and
Casualty Insurance Fund Reserves to the Insurance Claims operating budget to enable the payment
of anticipated insurance claims associated with Hurricane Irma.
OBJECTIVE: To transfer funds from reserves to the operating expense portion of Fund 516, Property
and Casualty insurance for the purpose of paying claims associated with Hurricane Irma
CONSIDERATIONS: The Board of Commissioners purchases property and flood insurance to protect
the County’s real and personal property assets against losses caused by the named storms. Additionally, it
is purchased in order to comply with Section 311 (42 U.S.C 5154) of the Stafford Act which requires that
an applicant for FEMA assistance “shall comply with regulations prescribed by the President to assure
that, with respect to any property to be replaced, restored, repaired, or constructed with such assistance,
such types and extent of insurance will be obtained and maintained as may be reasonably available,
adequate, and necessary, to protect against future loss to such property.”
On September 10, 2017 Hurricane Irma made landfall in Collier County causing damage to County
owned property. The County’s property insurance program applicable to this event contains a total limit
of coverage purchased (a/k/a the Loss Limit) of $75,000,000. The named storm wind deductible is 3%
per building and contents with a minimum named storm deductible of $250,000. Retained loss es are
capped at $5,000,000 per named storm. As part of budget planning, a $5,000,000 reserve has been
maintained in Fund 516, Property and Casualty Insurance expressly for the funding of a named storm
event such as Hurricane Irma.
Based upon the damage assessments and cost estimates received to date, staff believes that the $5,000,000
name storm cap will be met. Therefore, staff is recommending that an initial budget amendment to
transfer $5,000,000 from Fund 516 Reserves for Insurance to the Insurance Cl aims operating budget be
approved to enable the payment of insurance claims presented to the Fund. Once the $5,000,000 cap has
been met, funds will be requested from the excess carriers to fund future loss payments. Therefore, future
budget amendments may be needed to recognize these revenues and the associated claims expenses as
they occur.
FISCAL IMPACT: Funds are available in Fund 516 919010-996400, Reserves for Insurance for this
purpose. Unused funds, if any, will be returned to reserves at the conc lusion of the claims adjudication
process.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board approves the attached budget amendment to Fund 516,
Property & Casualty Insurance Fund to fund property related claims resulting from Hurricane Irma.
Prepared by: Jeff Walker, CPCU, ARM, Division Director, Risk Management
16.E.5
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10/24/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.5
Doc ID: 3952
Item Summary: Recommendation to approve a budget amendment transferring $5,000,000 from
Property and Casualty Insurance Fund Reserves to the Insurance Claims operating budget to enable the
payment of anticipated insurance claims associated with Hurricane Irma.
Meeting Date: 10/24/2017
Prepared by:
Title: Operations Coordinator – Office of Management and Budget
Name: Valerie Fleming
10/16/2017 9:46 AM
Submitted by:
Title: Operations Coordinator – Office of Management and Budget
Name: Valerie Fleming
10/16/2017 9:46 AM
Approved By:
Review:
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 10/16/2017 9:47 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 10/16/2017 9:55 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 10/16/2017 10:02 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/16/2017 2:07 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 10/17/2017 11:58 AM
Board of County Commissioners MaryJo Brock Meeting Pending 10/24/2017 9:00 AM
16.E.5
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