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Agenda 09/08/2015 Item #16E 99/8/2015 16.E.9. EXECUTIVE SUMMARY Recommendation to approve the purchase of Flood Insurance for Fiscal Year 2016 in the estimated amount of $423,751. OBJECTIVE: To purchase flood insurance on County owned properties in special flood hazard areas to protect these real and personal property assets against losses caused by the peril of flood and to comply with the Stafford Act. CONSIDERATIONS: The Board purchases flood insurance to protect the County's real and personal property assets against losses caused by the peril of flood. Additionally, it is purchased in order to comply with Section 311 (42 U.S.0 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." Flood coverage is underwritten and priced by the National Flood Insurance Program and policies are sold and serviced through insurance carriers and brokers. The maximum limit of coverage that can be purchased per building is $500,000 and $500,000 for contents. The County's property insurance policy provides excess flood coverage above the $500,000 NFIP limit up to a maximum of $75,000,000. Flood policies are placed according to building location. The current Flood Insurance schedule identifies 181 policies with limits purchased of $72,082,400 on total values of $450,321,307. These policies renew at various times throughout the year with the majority of renewals occurring in October and August. In addition, the schedule may be updated during the fiscal year as properties are added or deleted requiring the addition or deletion of coverage. In order to assure that coverage is secured on a timely basis, staff is requesting approval to purchase Flood Insurance for the fiscal year and authorize staff to request payment as these policies come due. IRMS, the County's insurance broker, .estimates that the total premium in FY 2016 will not exceed $423,751. A schedule of covered locations is attached as reference, Exhibit A. FISCAL IMPACT: The estimated annual cost to procure Flood Insurance in FY 2016 is $423,751. The 22.45% increase in the annual cost from the FY15 is directly related to Federal Government fee increases. Sufficient funds have been budgeted within Fund 516, Property and Casualty Insurance for this purchase. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. —SRT RECOMMENDATION: That the Board approves the purchase of flood insurance as outlined in the Executive Summary and authorizes the County Manager or designee to complete any applications or other documents necessary to bind, add or delete coverage as needed in Fiscal Year 2016. PREPARED BY: Linda Best, Manager, Risk Finance, Risk Management Division Attachment: FYI Flood Insurance Allocations Packet Page -1816- 9/8/2015 16.E.9. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.9. Item Summary: Recommendation to approve the purchase of Flood Insurance for Fiscal Year 2016 in the estimated amount of $423,751. Meeting Date: 9/8/2015 Prepared By Name: Linda Best Title: Manager - Risk Finance, Administrative Services Department 8/14/2015 10:21:33 AM Submitted by Title: Manager - Risk Finance, Administrative Services Department Name: Linda Best 8/14/2015 10:21:34 AM Approved By Name: WalkerJeff Title: Division Director - Risk Management, Administrative Services Department Date: 8/14/2015 10:36:11 AM Name: TeachScott Title: Deputy County Attorney, County Attorney Date: 8/14/2015 2:02:30 PM Name: PriceLen Title: Department Head - Administrative Svc, Administrative Services Department Date: 8/24/2015 12:42:01 PM Name: TeachScott Title: Deputy County Attorney, County Attorney Date: 8/24/2015 1:25:29 PM Name: KlatzkowJeff Packet Page -1817- Title: County Attorney, Date: 8/24/2015 1:31:00 PM 9/8/2015 16.E.9. Name: IsacksonMark Title: Division Director - Corp Fin & Mgmt Svc, Office of Management & Budget Date: 8/24/2015 3:26:26 PM Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 8/25/2015 9:06:14 AM Packet Page -1818- 9/8/2015 16.E.9. Packet Page -1819- N O m r M v1 N °� e0 n M O, r M 7" O 7 7 00 N O N L11 N M a h 00 n r O+ 00 °� O - O M °� .-� n 7 �D �O -+ M N N 7 O M 7 N N �O r O O -• -_• O 7 C. N o0 M v1 M 1n �O r 1n �O N �O M z O^ O O N N 1l1 M w w O O Vt N O, n O o0 O% 00 O N Oi r D1 7 Co 00 0, M 7 -• r 0 M .n. v1 N r N n N M 00 0, 7 - O, N N V1 W R N ..4 O Lo '•I In w w 1J'1 O N M LD 111 111 lO r 00 r N 111 m N M n LO el' u1 n et O O m 00 00 Oh O� 0o O• u'1 W ^ O m a N N N N oo O n r N N- - l0 N .y N 1\ M 1••i M Co O Ln t11 CO 00 N LA M N N O O M N VM1 oM0 H w V't �O �O �D N o0 O r� O M Vl oo � r a N 00 M Vi �D 7— M M vl O M V1 G 1D M N o0 C r tY ao 00 M �' oo O, �O Vi N 00 O O �D . 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