Agenda 05/08/2018 Item #16E105/08/2018
EXECUTIVE SUMMARY
Recommendation to authorize a budget amendment to Fund 516, Property and Casualty Insurance,
to pay claims associated with Hurricane Irma.
OBJECTIVE: To recognize reinsurance recoveries and expenditures in Fund 516, Property and
Casualty insurance for the purpose of paying claims associated with Hurricane Irma.
CONSIDERATIONS: The Board of Collier County Commissioners purchases property and flood
insurance to protect the County’s real and personal property assets against losses caused by the named
storms and 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 losses 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 damage assessments and cost estimates received to date, staff expects to authorize several
large claim payments by the end of FY18. The County received reinsurance recoveries from its excess
carriers in the amount of $3,000,000 and recommends a corresponding budget amendment to the
Insurance Claims operating budget be approved to enable the payment of these claims presented to the
Fund.
FISCAL IMPACT: An amendment to the Operating Expense budget, Fund 516-121650-645915,
Insurance Claims in the amount of $3,000,000 is requested. An amendment to the Miscellaneous
Revenues Budget, Fund 516-121650-369130, Insurance Company Refunds in the amount of $3,000,000
is requested to recognize reinsurance recoveries received. Unused funds, if any, will be returned to
reserves at the conclusion 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, raises no legal
issue, and requires majority vote for approval. -JAK
RECOMMENDATION: To approve 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
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05/08/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.1
Doc ID: 5392
Item Summary: Recommendation to authorize a budget amendment to Fund 516, Property and
Casualty Insurance, to pay claims associated with Hurricane Irma.
Meeting Date: 05/08/2018
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
04/16/2018 10:59 AM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
04/16/2018 10:59 AM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 04/16/2018 12:09 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 04/25/2018 4:07 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/26/2018 7:13 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/26/2018 8:17 AM
Office of Management and Budget Laura Wells Additional Reviewer Completed 04/26/2018 8:51 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/01/2018 9:29 AM
Board of County Commissioners MaryJo Brock Meeting Pending 05/08/2018 9:00 AM
16.E.1
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