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Agenda 09/22/2020 Item #16E11 (Purchase of Flood Insurance for FY 2021)09/22/2020 EXECUTIVE SUMMARY Recommendation to approve the purchase of Flood Insurance for Fiscal Year 2021 in the estimated amount of $495,269. OBJECTIVE: To protect County owned properties in special flood hazard areas against losses caused by the peril of flood and to comply with the Stafford Act. CONSIDERATIONS: The Board of Commissioners 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 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 (NFIP) and policies are sold and serviced through insurance carriers and brokers. The pricing of these policies is set by the NFIP and cannot be changed or negotiated. 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 a layer of 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 200 policies with limits purchased of $82,010,500 on total values of $471,874,257. These policies renew at various times throughout the year with most 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 2021 will not exceed $495,269. The schedule of covered locations is attached as reference. FISCAL IMPACT: The estimated annual cost to procure Flood Insurance in FY 2021 is $495,269. 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 has been reviewed by the County Attorney, raises no legal issues, and requires majority vote for approval. -JAK RECOMMENDATION: To approve the purchase of flood insurance as outlined in the Executive Summary and authorize the County Manager or designee to complete any applications or other documents necessary to bind, add or delete coverage as needed in Fiscal Year 2021. Prepared by: Jeff Walker, CPCU, ARM, Division Director, Risk Management Packet Pg. 1838 09/22/2020 ATTACHMENT(S) 1. Copy of Collier County Flood Insurance Schedule FY 21(PDF) Packet Pg. 1839 16.E.11 09/22/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.I I Doe ID: 13327 Item Summary: Recommendation to approve the purchase of Flood Insurance for Fiscal Year 2021 in the estimated amount of $495,269. Meeting Date: 09/22/2020 Prepared by: Title: — Risk Management Name: Carleton Case 08/20/2020 4:00 PM Submitted by: Title: Division Director - Risk Management — Risk Management Name: Jeff Walker 08/20/2020 4:00 PM Approved By: Review: Risk Management Administrative Services Department Administrative Services Department Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners Jeff Walker Additional Reviewer Paula Brethauer Level 1 Department Reviewer Len Price Level 2 Department Head Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Laura Wells Additional Reviewer Nick Casalanguida Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 08/20/2020 4:33 PM Completed 08/24/2020 10:23 AM Completed 09/04/2020 10:51 AM Completed 09/04/2020 1:32 PM Completed 09/04/2020 4:29 PM Completed 09/08/2020 3:32 PM Completed 09/16/2020 8:38 AM 09/22/2020 9:00 AM Packet Pg. 1840 o} uoi}epuauauaooaa : LZ££6) 6Z A=j ainpayog aoueansul pools A;unoo aaillo3 jo Ado3 :;uewt4oe;;V "tm "t 't 'o 't�° v v o0 o v rn N v o M N oo v� o 00 0 oo N �n �n o o rn o0 o M M 'b 5 D, y N rq N M 10 N N --� N --� N "t "t Vi N N 7 — —� N N 7 w q a4 CD CD CD CD CD CD CDO 0 O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 o O O O O O a v, h v, h v, h v, v, N � o O v� vi v� vi v� v, N �, N N �, N O O N N O N N O N N vi �n vi vi N N N N O u N N N N N N N N N N N N N N N N N N N N N N N O 'd q 69 69 6s 69 6s 69 6s 69 6s 69 69 69 69 69 69 's 69 69 6s 6s 6s 69 69 69 69 6s 69 6s 6s 69 69 bq 6q bq bq 69 69 69 69 69 •� O O O O O O O O o O 0 o 0 0 O O O O O O o o o O O O o o 0 0 o O O O o o 0 O 0 O 0 O 0 O y N O 0 7 N V lO 7 O 01 O oD O M °� IO r- O 7 G O U N r4 O O �D O\ r. 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