R7F-Accept Recomm Purchase Flood Insurance All-Risk Property InsuranceCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, To Accept
The Finance And Citywide Projects Committee's April 8,2015, Recommendation To Approve The
Purchase Of Flood lnsurance, All-Risk Property lnsurance (lncluding Windstorm), And Boiler &
Machinery lnsurance For City Buildings And Contents (lncluding New Construction); And Fine Arts
lnsurance (Bass Museum And Art ln Public Places), As Proposed By Arthur J. Gallagher Risk
Man Services, lnc., The City's Broker of Record
Ensure Expenditure Trends Are Sustainable Over the Long Term
Item Summary/Recommendation :
Property lnsurance is necessary to protect the financial interest of the City. To qualify for FEMA
assistance, the City is required to purchase a reasonable insurance program to protect its assets.
The City's Broker of Record, Arthur J. Gallagher Risk Management Services, lnc., is in the process
of marketing the City's portfolio of property in the marketplace and obtaining various options to
renew the program with favorable terms and conditions, within the budgeted amount.
Based on the response that the City has received from the State of Florida, and in recognition of
the recommendation made by the Finance Committee on April 8, 2015, the Administration
recommends that the Mayor and Commission authorize an increase in the Named Windstorm
insurance limit of $5 million to obtain a total of $20 million in Named Windstorm coverage at an
estimated additional premium of $368,000, which is included in the FY2014115 budget. lt is also
recommended that the Mayor and Commissioners approve the purchase of Flood lnsurance, All
Risk Property lnsurance (including windstorm), Boiler & Machinery lnsurance, and Fine-Arts
lnsurance (Bass Museum and Art in Public Places), through the City's Broker of Record, Arthur J.
Gallagher Risk Management Services, lnc., with a"not to exceed" amount of $2,798,000.
Financial Information :
Source of
Funds:
Amount Account
1 $2,435,000 540-17 92-000378 Risk Management Fund
2 $53,000 540-1792-000390 Risk Management Fund
{/ t (A.y 3 $310,000 480-0463-000343 Parking Depar{nvnt
f- q' \-/Total $2,798,000
Financial lmpact Summary:
n-Offs:
Department Director Ass ista nt C ity^lVlanager city M9 qgAr
SCr_.*-:f_KGB 4i JLM I V
T:\AGENDA\2014\May\RFQ 2014-056 MF lnsurance Broker of Record-Summary.doc
AcENDA nrEil{ RJ Fg MIAMIBTACH oa,rc s- 6- | (636
MIAMIBEACH
City of l iqmi Beoch, l70O Convention Center Drive, Miomi Beoch, FL 33 139, www.miomibeochfl.gov
CO SION MEMORANDUM
Honorable Mayor Philip Levine and
Jimmy L. Morales, City Manager
May 6, 2015
A RESOLUTION OF THE MAYOh AND CITY COMMISSION OF THE CITY
OF MIAM! BEACH, FLORIDA, Td ACCEPT THE FINANCE AND CITYWIDE
PROJECTS COMMITTEE'S APRIL 8, 2015, RECOMMENDATION TO
APPROVE THE PURCHASE OF FLOOD INSURANCE, ALL.RISK
PROPERTY INSURANCE, INCLUDING WINDSTORM, BOILER &
MACHINERY INSURANCE FOR CITY BUILDINGS AND CONTENTS
(INCLUDING NEW CONSTRUCTION); AND FINE ARTS INSURANCE
(BASS MUSEUM), AS PROPOSED BY ARTHUR J. GALLAGHER RISK
MANAGEMENT SERVICES, INC., THE GITY'S BROKER OF RECORD
BAGKGROUND
This item was presented at the April 8, 2015, Finance and City Wide Projects Committee
(FCWPC) meeting, and was passed to the full Commission with a recommendation for approval.
Over the last two years, the City has been updating its property insurance program to better
reflect its risk, as well as to comply with the State of Florida suggestion for preserving the City's
eligibility for Federal Emergency Management Agency (FEMA) relief under the Stafford Act, in
the event of a Named Windstorm. Updating the program has included adding properties
previously self-insured, and increasing Named Windstorm insurance limits where reasonable,
and within the City's budgetary constraints.
ln order to be eligible receive FEMA funding, the City is required to present its property
insurance program to the State of Florida, Office of lnsurance Regulation (via the Florida
Division of Emergency Management) every year and obtain a"reasonableness" letter. The City
received this letter for the June 1 , 2013, policy year. At the same time and under separate
cover, the State advised the City to consider purchasing additional windstorm limits for next
policy year (June 1,2014), although the State did not recommend a specific amount.
As to the actual amount of insurance coverage the City should carry, the prudent
recommendation is that the City continue with its risk management strategy which consists of
preserving its ability to obtain relief from the FEMA, under the Stafford Act, and possibly from
the State of Florida, in the event of a Federally-declared disaster, and purchasing Named
Windstorm insurance coverage. This recommendation translates into determining how much
money the City needs to be able to access immediately, in addition to the working capital in
place, to respond and recover from a tropical storm or hurricane. The Risk Management
Division will work with the Emergency Management Department to determine appropriate levels
of funds needed for immediate reconstruction of facilities critical to continuity of operations, in
addition to working capital needed to respond and recover from a tropical storm or hurricane.
TO:
FROM:
DATE:
SUBJECT:
Commission
We ore commiffd b provtding excelbnt public *wice ord ll:rbt,7 n oll wln live, work ord pby in our vibronl, tropicol, historic communify637
City Commission Memorandum
May 6, 2015
Authorization to Purchase lnsurance
Page 2 of 5
Based on the State's recommendation to increase the City's Named Windstorm coverage, the
Administration recommended at the June 20, 2014, FCWPC meeting to increase coverage to
g25 million, in increments of $5 million a yeat over the next 2-3 years, assuming the limits
continue to be available and reasonable. (See Attachment 1 - FCWPC Memo - June 20,2014)
The FCWPC recommended the first increase of $5 million, which increased the windstorm limit
to $15 million for the June 2014 - May 2015 policy year. At the August 13,2014, budget
briefing, the FCWPC recommended holding off on additional increases pending the state
department's response to the increase to $15 million coverage in2014 and to instead allocate
the additional premium monies sought to the Risk Management Fund - Contingency. (See
Attachment 2 - FCWPC Memo - August 13,2014)
The City received its "reasonableness" letter for the June 2014 policy year. Once again, under
separate cover, the State advised the City to consider purchasing additional windstorm limits for
the policy year, again without recommending a specific amount. (Attachments 3 & 4) Therefore,
the Administration and the City's Risk Management Broker of Record are recommending the
purchase of an additional $5 million of Named Windstorm coverage (for a total of $20,000,000
windstorm limit) for the June 2015 - 2016 policy year, which results in the payment of additional
premium estimated at $368,000.
Renewal Recommendations for the June 1. 2015 - Mav 31. 2016 policv vear:
Below is a recap of each insurance policy and changes made during the current policy year
(June 2014-15) that will affect this year's estimated renewal premiums. (Also see Exhibit 1 -
Chart of Property lnsurance Program Comparison (from policy year June 2013 to June 2015-
16).
All-Risk Property lnsurance (including Boiler & Machinery):
. Proposed $5 million Named Windstorm coverage increase (taking the limit to $20
million), at an estimated additional premium of $368,000
o At the June 2014 renewal, the City added it's parking garages to the property program
using estimated values. Coverage for these garages was accepted by the City's primary
insurer; however, this was subject to the City providing the square footage and
appraised values of each garage as soon as it was known. The garages have been
appraised, the square footage is known and so are the insurable values. This
information, which resulted in an additional $50,022,123 in insured values has been
reported to our insurers
o The City acquired several residential properties valued at$13,748,844.
o The City added $2,800,000 in values for Fire Station #2 Administration Building that was
inadvertently omitted after it was renovated.
The City's current Total lnsured Value is $936,855,291. This is a 9.8o/o increase over the June
2014-15 policy year. These changes are expected to generate a total cost (premium and
surcharges) not to exceed $2,370,000 (approximately $488,000 of this amount is to be allocated
to the Parking Department for the garages). The All-Risk property renewal includes an option to
purchase terrorism coverage which is very limited and has elected not to purchase this
coverage.
638
City Commission Memorandum
May 6, 2015
Authorization to Purchase lnsurance
Page 3 of 5
ln addition to the All-Risk Property coverage, the City purchases Boiler & Machinery coverage
for property built to operate under a vacuum or pressure, or used for generators, transmission or
utilization of energy (water pumps, fuC units). The City purchases this insurance due to the fact
that many of its properties house this type of machinery/equipment. Damage sustained by
machinery/equipment for breakdown is not currently reimbursable under any type of State or
Federal program. This policy provides $100 million in coverage with a $10 thousand combined
deductible.
Flood lnsurance:
Flood insurance is otfered through the National Flood lnsurance Program (NFIP). To qualify for
aid from FEMA for loss due to flood, the Stafford Act requires that the City purchase flood
insurance from NFIP for eligible properties. The policy limits are $500,000 for buildings and
$500,000 for contents, with a $25,000 deductible.
Fine Arts:
The Fine Arts policy has historically provided property coverage for arts throughout the City, the
Bass Museum, and Art in Public Places. This policy provides coverage for all perils (All Risk,
Windstorm) for insured values. Underwriters at Lloyd's continue to offer a very favorable
program at a flat rate renewal, approximately $50,000. Additionally, the City has earned 'no-
claims" bonuses over the past several years.
EXHIBIT 1
Property lnsurance (including Flood, Boiler & Machinery, and Fine Arts)
Policy Year
6ll.l2ottto
6ltl2o1.4
Policy Year
6ltl2oL4to
6lUzots
lnterim
6lLl2Ot4to
6lt.lzots
Projected
6ltl20tito
6ltl2ot6
Comments
Total lnsured
Value (TlV)5685,247,222 s853,146,331
Additional
$66,57O,967 s936,855,291
lncrease in values
due to recent
property appraisal
valuation, and newly
acquired properties
Windstorm
Limit s 10,000,000 s 15,000,000 s15,000,000
unchanged s 2o,o00,ooo
State recommended
the City to purchase
additional windstorm
coverage
AllOther
Perils Limit
(AoP)
s200,000,000 s350,000,000 s350,000,000
unchanged
s350,000,000
unchanged
No expected change
to the AOP limit
Property
lnsurance
(including
Boiler &
Machinery)
Premium
L,472,609 1,919,389 slo,ooo s2,o02,ooo
lncrease in premium
due to recent
property appraisal
valuation, and newly
acquired properties
639
Property lnsurance (including Flood, Boiler & Machinery, and Fine Arts)
Additional
Sstvrvt
Windstorm
Premium
N/A s 332,483
(included above)
N/A s 368,000
Premium for 55
Million Windstorm
limit increase
Flood
Policies -
Premium
S Tq,tqz s 360,000 N/A s 378,000
Anticipated 5%o rate
increase from the
NFIP, and additional
policies for newly
acquired properties
Fine Arts
Policy
Premium
s 44,005 42,374 N/A 50,000
Anticipate no change
in values, and flat
rate renewal
Total
Premium s1,837,3s1 s2,327,763 slo,ooo s2,798,000
Premium includes
Property, Boiler &
Machinery, NFIP
Flood & Fine Arts.
Policy Year
sltl20Ltto
6ltlzot4
Policy Year
6ltl10t4to
6lLlzOLs
lnterim
6ltl2otato
6ltlz0ts
Projected
6ltl2ol5to
6ltl20t6
Comments
Risk
Management
Budget
FYaOI.4lts
s2,735,000*
*The Parking Dept.
has S310,000
budgeted for
FY2074/t5; a budget
transfer will be
requested to cover
the s488,000
projected garage
premium
City Commission Memorandum
May 6, 20'15
Authorization to Purchase lnsurance
Page 4 of 5
Note: The above cost projections are not confirmed by any insurers, and are for discussion
purposes only. Our broker is in the process of marketing our insurance, and will have more
concrete figures as we approach the June 1,2015, renewal date.
RECOMMENDATION
Based on the response the City has received from the State of Florida, and in recognition of the
recommendation made by the Finance Committee on April 8, 2015, the Administration
recommends that the Mayor and Commission authorize an increase in the Named Windstorm
insurance limit of $5 million to obtain a total of $20 million in Named Windstorm coverage at an
640
City Commission Memorandum
May 6, 2015
Authorization to Purchase lnsurance
Page 5 of 5
estimated additional premium of $368,000, which is included in the FY2O14|15 budget. lt is also
recommended that the Mayor and Commissioners approve the purchase of Flood lnsurance, All
Risk Property lnsurance (including windstorm), Boiler & Machinery lnsurance, and Fine-Arts
lnsurance (Bass Museum and Art in Public Places), through the City's Broker of Record, Arthur
J. Gallagher Risk Management Services, lnc., with a "not to exceed' amount of $2,798,000.
T:\AGENDA\2O 1 5\Moy\HUMAN RESOURCES\Memo - Properiy lns Renewol 201 5.docx
Attachments
.rr-rr,y#ersc-r
641
ATTACHMENT I
tltE tl lAluml E*sthn I 700 Convanffon Csnlcr 0rlve, Mlornl Dssch, Fl, B$ 1 Sg, wwv,ruiautbeuchf,.gov
COMMITTEE MTMORAhIDUM
IO:
FHOM:
DAIE:
$UBJEfir
Ea*frr.fEHnd
Tlt* Oity'n propsrty Bchedule ($AAf m[[on) r6pr6ssnt s !00% coagtrl axpssur€ wlth no tnlsnd
sBrsad of risk, The fest that th6 City uf Miami Beach shs on a banler lsl*nd and ir concentretmd
within a $ovsn squarg mlt$ ur$H rfiuaftb the Glty will be eigniflcantly impautad ff n hunisuns hito
in thie area. Thle croat*g 6 challsflge fur the Clty in purchssins wtrndotorm eoysriag$, ghd for
ln*urers whfi nsud tr manage their aggregat$s in wihelstilrm*prone ar6u$,
Tha Slty ol MiamiBesch purcha$$6 Namsd Wnd*torrn ft0v6rflgs to help recovor from s troplc*lsirnt or hurrlcane related damagsa. The arnount has hoen partlally based on thn eoit of
covsrsge (whieh fluctuatos in ftard end uoft m*rtffits) and budggtary llmitatione. tn tho paot ton
y6are, the arnount of Narned Windutonn covorags purchaoed has ranged frum $10'to SZS
milllon, in oxcsst of apptlcable deductislee. Since ?000, the limit h*s rer,nntned at $10 rnilllpn,
approxirnately 1.17% of the toisl ineursble valse (rlV]. Thie c&rnpures tn 41% of the TtV for qli
uther porllo ffiffP).
{damsd Uyind$tor,rrt lirn,fs Asrcfra*rd tsmjf0flS ffi eqf ;
2004 to ?G05 - $25 mitliqn
t006 to 2007 - $.l0 miltion
?00S to 1000 " $tCI milltun
200S t* ?fi14 " S10 milllon
tn the 4008/09 pollcy year, tha City to*k edvnntoge uf a soft lnsumnce rnarket and incrensad ths
Named Wndrtorm limit from $10 to .$fl0 millfon. Howeval prlor to the Junp 100$ renewal, thepropgrty innurancs msrkst hardensd *e a roeult of hduEtry-lulde undonpritlng looreo ln ft00E,
dnd the weak invsstrnsfit *llrnnto. Ae a r$ult, tha Bstlmated premium to niaintaln tha sarne
Ievel sf soveru$g, wlth s tllght lncraaea in the dsductible, wfiB $1,84$,304. lt w.gu thgn decidgd
t0 lowsrthe Nqrned Windstorm limit lo $10 milllon and Inweass the doductlble ln arderto r$rBW
csvurfigc within the allocated budgotary resourcs*, Thm renewaf prernium for this lower level of
covorsge wgs $1,460,346.
CIn.the 1B*.of {ay, ?QQO, the *ity Sommiueion passed Reeolutisn 200047077 (Amachrn*nt 1)
authorieing the Adrninlatrutfon to r&now the lnouranre prdgrom for up to four addiflonal ona.yeai
lsrm6, provldad pnomlumu dld not exceed budgeted funds. $r*h equ*ntly, fhe Clty-hae
muintqinud the $10 million palioy Hmft.
642
FCWPC Mrmorrndum
Proposad Acllun Flan for Natfldd Wnd$t$ilr ln$tlrgfiGs Llmlt$
Paga 0 of &
Juno 20. f01,[
Analv*ls
ln the 6v6nt a nfimed troplcal storrrr or hunlcane oauqss sevsrs damage to the Clty'e prop*rty,
w6 wlll ft66d iln lmm6diet6 lntuslon of funds [n order to roccver and bogln tha rsbrnildlng pr0fi6$s
as qr.rlrkly us p06*iblo, The FoderEl Emergency Management Agenoy (FEMA), and po*nlbly the
$tste of Florida, typically provide* dluustsr ausirtanile to the Sity, However, to cornply wfttr
FEMA's eligibility requirsmant$ undur tha $taffurd Act, the Glty i* required to purchaee NamEd
Wndstorm covsrsge thEt l* reasonah/y availshle.
ln the pa# ton y$$lFs, ths Slty hsa recgived approxlmetply $7.5 rnilllon ln diEs*ter reliaf frsrn
FfiMA, An sstimatad $3.7S mlllion of thl* ropreuentu r6s0vsry for damuga to phyuical loc*tlons,
and thorefore is the amount that the Si$ lo uomrntttsd to insure under the Staffsrd Act, Thls is
lmportant tu keop [n mind whun cpnsidering * ltmit of insuranca for wlndsturm,
Another requirement to rso*lvs FEMA fundlng Ir to prerent your proporty in*ur*noo prsgram
*very year Xo the State of Flarldu, Offim of lneurance Regulation, to obtuln fi "r@6so,Ta&leness'
lettor. The Ulty r,ecelvod thls lettar for the 2013/1{ paliutr year (Attachment ?}, At the rsme timo
and under sepfinate cov6r, the $tdts 6dvi$ed the Cfty to purchaee additionalwindctsrm llmit* for
the 201411S polioy year {Att*cfrrnsht 3), Whlle the Ststs did not rEcsmmend a apeeifio smount,
F{umen RosourceB tlsk Managemnnt Btaff, fllon$ wlth ths ,ei$s ErsRer of Rscord, iu
recommsndln$ ihcrue*ing tho novsrqss level tn S$ mi{llsn incrarnenta at each ronuwal psriod,
a* long *s tho llmits ars ovsilable end rngrkst conditions ere reasonsble,
Co&ranson lo rovemrflonlql et:tiliqp,p"l0i4dsdSy,flJe Sjtyiq.pr{r"orty/ns#rpnfig$qa$ff/}0nl:
South.Florida $outfi_Flsrida
SpsqtnlGquntv lQl G,ee$tal,8shoulffi)$11,1?4,09s,312 $e,07t,1s3,3$s
$1$6,0CI0,000 (1.10%) $110,000,000 (1.s1%)
TIV
Wtnd*torm Llmit
TIV
Windet*rm Limit
TIV
Windetorun Llmlt
Property TIV
AOP LImIt
lffindatorm Lirnit
Property TIV
AOF Llmlt
Windstorm Limft
For.rlhFlerldn
Sos*talOltylG}
$500,000,CIo0
s35,000,00CI {7%)
SS0 rnilllon (!0,1%)
$60 rnilllon (20.1%i
SorqlSEblgq
$2og.t01,glB
$209,201,81S (100%)
$2S mi{llnn (\?YB)
$fl,fi4$,22S,$gg
$80,000,000 (s,0%)
$20 millior (lB.6ulo)
$10 mlltion (1A.Su/o)
RiVjara Beagh
$7S,?Ss,0e1
$$0 mlllion (9s,3%)
$00 mlllion (8g.ao6)
$quth Etsri4s
SoantglSpqpty ff)
$4,SflS,S,,40,flS&
$97f,,000,000 (6%)
$28 mtltlan {10%)
SflS rnillion (10%)
South Florida
Sgsstql S*hool{Al
$31S,37S,SgS
$2,500,000 (o.g%)
So.utltr Ftorld*
$oastal$sfulol (D)
$7,$38,SSfi,S2A
$a50-0CI0,00u (3.15%)
ASd&hffalqpm,r-grppn lo ap,v"pl.{nfsoful qfilfh$, prquided fty fnE,Rlql( d4pnagffr,t}nr mv/{{sn:
[#a on* *annrilfur/ U prowJitg uef&nl tr&fc sarv,ca ondiCI&ry ,o df t#]o t 6. rao* ond play m rur vr'&narr{, rcprcol, Arrfr,rc oorurunry
643
FCWPC Memorandum
Proposed Action Plan for Named Wndstem lnsuranup Llmlts
Page 3 ot 3
June 20, [014
Nqlee
1) The percentages abave ftBprssent covsreue llmlt* compared to th6lotal ln*urable vfilue.3i Property TIV for Fort Lsuderdslo and FomBano Beuch does not includs utlllty proportles.
Rocsmmendatlon
It te thprof*ro rooommondad that based on thE $t*te's recommendution to Inrrease Gov6rag6,
snd tha lncroasing value of our propurths, should ths sforsmentloned erlterla bs rnet, and in
kaep,ing with the euthorieatiun granttsd by Resolution 2014 * 48612 fitfachment 4), udopted hy
tha Sity Commlsslon May 28, 2014, the City rhould budg*t 6ach ysar for $$ mlllion in additional
coverflgs until the $35 mlllion target is reached sr the etate det+rminas ihat the srfiount 0f
covorsse Io r*asonEhle. tar thE 2014/15 policy year, tha City hae rs(sivsd a non-blndable
annual premlum lndlcation of $335,000 (including $tet* of Florlda surchargos) to purchad6 an
addltlonsl$5 million oI Named Wndetorrn covsrase.
Attechrpents
JLM/K#/sc-r/sB
FIHUMAT'$a$SYLV}AU!'CWPCU.{amod Wilditom lfl crnes€s FINAL 2,doc
Wa om mrnnriffid u pru*/irg oou}frnt publh' sxriii:e a# !o&V b a/ Hrre /[8. r+or* orrJ phy m au r+bff n, hqp{ool, htstaic @{wr,wity.
644
lT)r
FRfiM:
DATE:
AAIAMIBEACH
tify ol illtaml E Hl, 1700 Conventlon Cenler Drlva, Mlonrl Beo*h, F[ 33,l39, vnvw,mlumlboachfl.gov
,,*,H:;|HI;T::;:W#--
Augnst 13,2014 { t
$UBJECT; Named Wndctomr Boveragr
Bn+ksteun#
The 6lty of Misml Eaach'e property ochgdule is valued at $853 rnillion und rmproserlts a j00%
ooa*tal axponur$ wlth n0 lnlund epread of :pi6fu. The fsot that the Olty of Mlami Eoaoh elt$ on 6
bsnlsr,irland and I0 conoantratad wlthitr f, s*v6n $quuro mlle arsa means that if a troploalstorm
sr hunt*ane hfts our frr64, ths trnpaot 6n th$ Cily will bs substantlal.
Tho Gity'a inauranpe broker analyzes the City'* property portfolto ln terms of wind exp6sur6
uoing two dlfferent probahle msxlmum loeu (PML) modets (RMg, a tradsmurf oi Rlek
Manugument $o[ution* and Applied lnsuranoe Reeearch, lnc, [AlR]). Thesa
Gomputer modek ineuranoa compantas uso to meaouro their aggregated
gaographiaal aree.s,
ATTACHMENT 2
CSMMITTEE MEMGRANDUM
ths Earne
in certaln
Are
riek
Th+ City uf Miami Beaoh's property portlulio lo permlvud to generate ri$k as summadzod ln ttre
tabtq betow, Ths model, davelopod prlorto the 2014 ranswsls, l* hased on the prior year'e total
in*ured vcluw (T[V) of $68$ milllon hefore t]Te udditfon of the purklng garageu to the Citfs
Inrured property schedule.
lnaurancs companlor and rattng agoncles uee the 250-year etorm (0.4olo prohahlltty of occurrlng
inany givon yea$ ac q hfinchmark for percelved risk to a property lnsurance portfollo. Eaead un
that benchmark, tho induetry 66tlrnetd* the Clty's FML (the amount of cataetrophio rlelt tho,elty
add* tc the narripds portfollo) botwoen $21? ntlllion qhd $27$ mtttlon, Howdver, it ls naI
rounonabk to expect a Ci$ to lnsure for n 260 yeur ctorffi event; typ'lcally, jurisdidtiofia rely on
FEMA (Federal Emergency Mantgement Agency) forthut type cf event.
The eW pr.rrchased $16 mlllion of ooverage and inuurance cofnpanies antlcipate that ae the
regult,of a rnedlum to large wlndstomn event, the Cily will suilein damag* woll in sxcss$ ef thfn
We om wradrud u pna,{i/rrg ecufunl puHr *a\4cs ord wkty w al v'tn l*e, vvark ad fu ia wr vtbwnl, hvpiwl, filrbrlc:oerilriunlly,
0"10%1,000 $ 6S7,046;026 $ 306,1?4;?7*$ 4{3,468.502 s 41S,801"36$
0.2u%500 $ 292,95U,658 $ esg,e78,6s4 s s6J.s89,fi00 $ 3X7,4$s;S?3,
,'fi.{I[g[, :.' '659;.,8 ,;gilltu8tgi{8ll Etr{;gglt.t6s,S,r;: :I*Eplffii{l&,$.
r.00%100 $ 1:3$.507,S13 $ 90,5S1.276 170;800,634 $ 145.263,428
?"00%60 $ 6A.644,437 $ 3f,.7,31.840 $ 101,808,0$3 $ 77.552,1{4
6.OCI%30 $ e2,,91?,s0u $ 6.r80,s70 s 30,6s0,077 $ s.sl[.gss
Avpraua Anfiutl Loot $ fi,2oorB*6 s 3,fl?g,zoo S 6,&4},0ufl $ 4,BtU,f,rU
645
FCWPC Msmorundum
Namsd Wndslom covorogs
Pfg6 2 df 5
August 13, 2014
*mount nnd prloo Govsrfige 6c6ordingly, The Clty nsed$ to datsrrnfng how rnuch ouuh lt wlll
nsed to hava aoog** to itttm*diatoly after s €torm snd the insuranos companleu naod to decide
how mu$h csvsruss thoy oan afrord to setl and 6t what prico to entitiffi looated ln windgrune
studs which wlll, $66nor ar laler, r$sult in payrnants to tho fnsured party. Theno ara among the
ohullengou feeed by the *ity'fn purohuslng Named Windstorm coverags, end tho in*urrre,-whs
nft6d to msn*g* their *ggpgate $xpoeure in wind*prone f,reds. Of th6 ?6 tnsurere that our
hroksr approathed in tr014, only *ve submitted respon*ive quotes.
Tho Clty ha* a rlok managemsnt etrategy tu holp rccovor 1i0m troploal etonr or huniornw
rcl6i6d demagas, whleh consletu of prauervlng lts ahility t0 obtdin r-allof fiorrr ths FEMA, under
the Stafford Act, and pouoihly from the $tato af Florida, In the event of a Federally.declared
disa$ter, and pur*hating Nanned ltVlndatorm lnsurance covsrage,
Obtalnlns rellef from the Federsl or $tuts,govemrnont csuld be a multi-year procs.es, whleh ma
require slgnifloant otJort* on lha psrt 0f ths Clty to obtain fundg, Addltlonally, LlndCIr tho $tafforil
Aci, the Oity lu roqufi:ed to purohese lnsursnoe on itu huildlnge and oontentg for tha afnouht and
perlt{s) for whieh It hae alroady reoulvod funde from FfiMA, Tharefore, the 6i[ muut purcham,
at a minimurn, N*med Wndstorm dsvorage to fultill ite FEMA *bligation, as wall 8s to huvs a
r*ady f,nd $6cure souro€ of funds, In tho event of fi tropttal $torm or hurricorne. Over th6 p6st
ten-plut y&*rs, tha Gtty rouutved appruximately $?.f, rnltliqn in dhanter rollef ?rom FEtvlA, Rn
oEtlmatsd $S.76 tttillton of thie rcpreoents rosovsry for darnage to physlual lucatlons, and
thsrefore lu the amount that th* Clty is csmmltted t$ iilsurs under tho SidfFord Aot.
Tho cott d,eoverago ffiluh fluotuate$ ln hard und soft merkato) has bs6n a faetor in the
smount of coverege the Slty hus fosun purchautng, ln thts pest t0 yearc, tho amount of Narmod
Wndsturm G6wrsfi6 purehuued hae ranged frorn $10 mlfliofi to $2S mllllon, in exeeat rf
appllcublu dEduutibtes. Untit 2014, the tlmtt hcd remained at S10 mlllion (approxlrnately 1;4$Yo
based sn s6Es Tru ht ths tim*), Thi$ comBare8 to 41ur6 of th6 Tlv for all other perlls (ACIP). In
?014, the 01ty dsu{ded,to Inorsaee th}e limtt, frorn $lCI mit}lon ts $'tS mllllon but at the sartru-fima
udded tho parklng garaswu to the lnuured propedy schedula ($15 million in covura0s [E
approxlrnatsly l,T60./o 0f ths TIV), us part of an effofi to obtain inursnrentally hlgher llmlts oyer
tlrne,
ffffr. ffi# #Bi$detaffi futlls nurchesed,?'g{n l00flfq*fi4.f$mountf,lug.rnll|iprnq):
fzr
$&
$u
$rn
{P
$0
rfi[x IJd6 ,&7 t008 rsoe zotu t01t 101* *mr ,ffi{,
646
FCWP6 Memorandum
Narritd Vllindstom Cuv6rsg6
Pogo A ol s
Augurt 13,3014
&l$,rfi od l&{ndlsforyfl Foroenfa^se De ducfifi /q
1{,0r(
?,5ri
s,0r*
}"st{
u.0r*
luos u006 1{o7 ?008 1000 2010 Iffr 1011 z{Ls [oti[
[n the il00$/09 pollcy year, the Clty took advantcge of E roft insurance mcrket end lncraassd the
Nerned Windctorm llmlt from S10 tu s!0 nritllon. Flowevsr, prior to the JunE *00S renowsl, ths
property lnsurance morltst:hardened as a result of induetry*glde undonmltlng loeees ln 200S,
and the !#sek lnvsstmerrt cllmate, As a result, tha eutlmatod prumlum to rnaintain the esrna
lovol of coverage, wlth a *ll0rht lnorenss In thu dbductlhle, was $1,843,304. The Numsd
Wndetonn lirnlt was lowered to $10 mtlllon und the deductlbla lncrosecd to renew c0vor6g#
wtthin thu *llocated budgetury rssCIuros$. The renewel premium forthis lower lovpl of coverale
wsu $1,460,34S.
,{t the May 13, 2009 rnestlng, tho Oity Commluslon pu*eed Re*olutlon 2009.27077 authorlutrXg
the Adnrlnietratlon tB r6n6.w the lnsuranes progrsrr for up to tour addlttonal on6-yoar turnre,
provided prsfflums dld not oxce*d budgetecl funds. $ubuequwntly, the Clty malntglned tha S10
mlfllon pulloy limit untll2014,
At tha Junu 11, 2014 C*mmiuelon meetlng, oubJeot to reMsw and authorlzatlon hy the Flnsnor
and Citywidu ProJsc'tu *cmmittee, the Commlsslon euthortsed the purchase of En addltionel S$
nrllllon of hlarned liMndetorm 6ovsrsg6 through Re*olutlon No. 2014-2S626.
4ntfselr
ln tha evsnt e nsrned troplcal storrn or hunicrne sf,u$$s sevsrs darnago to the Olty's property,
ths Ctty vvlli need an immediate infueion of irunde to r&eovsr and begln ths rebuildin$ prott*ro ds
quiekty as po$Bibls" FHMA, and possilrly ffis State of Florlda, typl*alty prnvidus di$ester
o$slsts,ncp te the Sity; However, to comply with FEMAIs eligiblllty requirements under thE
$taffo,rd Act, the City ia requlred to purchaoe Numsd ffindstorm 00v6rsga that le ruesonsr/y
rvailahle.
ln addltlon to th* $$,7S millhn ln coverage mlnlrnum, to recelve FHMA tundhg the Clty te
ru,qr:{rad to preuenl ite property insurancs program svory yoar to the Stats of Flofidai ffico of
lnrursnm Regulatlon (vld th6 Ft Division $f Hmergency Mansgemant), t# obtaln aoreasonaslens.sd lettnr- Th6 Giiy recelved thh letterforthe 20{g/14 pollcy year (Attaahrnsnt {},
At tha ssnl6 tlme and undsr separate cover, the $tate advised tho Clty'to purch*ee addttinnul
wind$torrn lirnlts for ths 2014/t$ pollcy year (Attaohmant 2), altfrough th6 StEt€ dld ilot
rg*cmmund a specific Amount,
647
FGWFG Mgmorsfidom,
Namcd Wndstonn Coverugo
Psoo 4 0f 6
August 1S, 20'14
f,thpr Spastpl Fntifii*$llnqu[Baep.lnfqmflrieu
,tt tho CItt'o rsquCIst, its broker of rocord provldad lnforrrratlon on tho TlVend wlndstomn limlts in
olh6r csfis{st sntltfg$ in Flarlda.
Cpmp.aiisof. lg s6t{s.fiUroflrg/ pf,{l*i.a;p. ufoildod bp {1ff. Sity,s {r. gpqrty {q+#{ercdJonpuJfan&
TIV
WNdgtDrrTI LIHIT
Trv
Wndotonn Limit
TIV
Wndstorn.Llrnlt
Prope& TIV
AOP Llmlt
Wnd.storm llrnit
Froperty l:lV
AOP Limit
Wndston'r Llnllt
INq,Is&
South,Flarids
cnaotel$qhpqJ (Al
$s16,$79,096
$2,600,000 (o.Bolo)
South Ftoridq
C$ilshlSohQd ffit
$7,s$3,$0o,s2s
$r6u,u0o,uoo {3,15%)
qOUttlF]orldfi
con$rqlfffty 161
$60CI,000,000
$85.000 900 (79r)
floulh FJorida
$eqptatfio$nw {Bl
$19"224,099,9'12
&1SS,000,000 (1.10y0)
$EIJthFISrlda
Cog$tpJ Spuntv" (E)
$2,049,228,338
$80,000,000 (s.Bold)
Egmsass"Hsgsh
$67,S0S,324
$t0 rnlllton (29.870)
S{0 mltl{on (f4.B7o)
$30 mitllon (39,370)
$90 mtllion (39.670)
$'! 1 0;000,000 (1.S1 7o)
Sot&"flo,rjrda
QoAEtatQsgng {Fi
$4i6&5,04b,698
$178,000,000 (6%)
The govelage decislons mndo by thoss entitlua do not autornatlually turn Inlo a rsmrnrxsrldEton
that the SiU of Miarnl Sauoh aot $irnilarly elnce differonces botwean afititior Hdd to be tnksn
ints *sfiount lf the Sity was to insure al levels elmllar to cod$tfll Glty'*G'\ thla would rseult ln an
fnsur,snue lavol of $48 mllllun.
ln additlon tp the lnfonantfon provided by our insuranoe broker, the 0itf;c &isk Munagsrn$nt
Dlutulon alur reuesrched lnaurance levols in neighborlng cttles.
$60 mlllion (20,1b/ol
$60 rnlllion (20.1%J
CoralGablee
$ffiEIsTo
$tos,fl0t,s16 (1009*)
SZU rnllllon (12%)
HiAIB*i
$250,0u0,000
$25 mlllion (10Yo)
$2s million (10Y0)
1) Ilta percuntagesa0ove repra*enf eovorft$ro /imlfo oompared ta thq tatat fnsamrbld vatua,
8J Frope&/ IIV'forHOrt Laudsrdala dnd Pampxno Eeacfr dops notlncluda utll7{ypropartles,
648
FCWPC Memorandum
Namsd Wndatorn Covnr*gs
Fegc $pfS
Augual 10,2014
hpn#,.rtmsndettgn
Baued on th* $tata-s reuummendEtion to increaso the City'e Namsd Wlndstorm sowrag6, thp
Adrninistratlon recommended Increasing funding covorags to $2$ mllllon, lneruasing the amnurrt
by $U rnllllon per yoil over three ysarfi, aesurnlng ths llmito contlnue to b* availsbla snd
rs€$'on*blo, The $tS mlllion ln cov&rsge ls wlthln the runge of ths prohublu maxlmum lors for a
gg*yu6r Etom (S2B milllon " $81 miltion).
As to the actual amount of insurunce B6v6rf,S6 the filty sFrorrld cdrry, the prudunt
recommendatlon fs that the Clty contlnue wtth lts rlsk rflonagomsnt strategy whloh conelgts of
pteuervlng its ablllty to obtain relief frortr the FEMA, und6r: the Stafford Act, snd posrlbly fr.om
the Stete pf Fiorida, tn the event of a Foderally"deetared disustqr, and purcha*lng Nemed
Wndstorm Insursnce 0bv6tege, This re*ommsfidatloil translEtos lnto dstsn.nhing how much
Ir,en6y tho 0ity nasd* to ha able t0 accees lmmedlatoly, in eddltlon to the working capltel ln,plfi[6, to reapund and rBcover frorn u troplcal $tonn or hurrltane. The Rlsk Munagemont
FIvi*ion will work \,!dth ths Ernergency Management Department to deterriline apprnptlate lavols
rf filndu nseded fm irnmedlate reconstructton of facilltlsr crltleal to contlnuiity of operation*, in
sddltion to worlrlng capltal naedod to rtupond End recover from a troplcal etorm or hunl*nne.
Attu*hmunts
JLM/KEB/SCJT
n\T{UfuIA\SflII\$YLVIET*FCWTC\NAMED WINDSIORI,IINCIEASE$'AUG{J$T 2OI3,dOC
649
8YAl"H &tr FrOmlUAHlvrSrol* oF ilIHRBHHfiY [ilA!{AtrEIII HT
rK[cgffii
6fi,fitsr
gHrffiw.fiooil
El,xihr
tfiaroh 14,1014
Mt. Sdfth ErISS*E, RlnlrMnn*gar
CIU of hihmlfis*dr
1700 Goilvdnton CsnBr Dfive
Mtaml Effi#r, Ffcrtda Strtffi
Ru: Gltyaf MlamlBeafi (n01S,e014)
lneErEnsn l{mson*hlcno*a Dstrrmlnaflon Reqr,reufrnd
Oufirfi&. Br{dga*;
p16Ep6{lnd sth{fis(l t}to deErffilna&n of fir$mte lruunnnm 0umm{xlorw
sesardlng lhe orMton*tlnn***n of th6lnaurxnoc ddvarryc pmqrrtd byttre Sttyol[illamt
Bmdt, Easd upn the lnlbrrralilon rsulEvrrod W flm ffim of lrnutaras Fhgulatlnn, ftu
Stgte lrmrnnnos tommlmbner hrr d#rmlnod thrt U$ ffih, $f Mlf,ml Bss*fr fir* besr
*uffipr*f$l In pmourlry lncurmns thut *Fpsru ts hs nrss*onshla.tr
Fluauu undarde# ftatthln detarmlnqflon upplle* anlyfrr lht l*rmle af ouvemge,
tnrmt md euwtgu petbdo th$ t*ure pru*cnted fur rorlpr*; ehould mshrhl tsrmr dffi*
fnetrunoe pedrug* olmngm, tfra effilnnttt wlll nM tr rswhmff&r f n&ttr rpamRublmase
dr&mlnatlon,
If ynu haw eny qurr$oru or ruqulrc sddlftonpl tn&nrtr#hn pbaa* nonhut &$Jen
Hyeit, Sbh Pgblb Aulef;*noE Offid€r, vla mrll ut FtoffiUf{wilffigffin#url{qffim or Bphoned(8S) 407-1660.
Slnuergly,
,kt*
gtsven fint
BistE Puhfie Aanld*nos ftffiour
sf,ryblt
AHeilHmHHtsI 0slrymlttsficn of *ts 5h& lnsutanue Cumrnholonur
EIVIIIOIi HlaOgU^rTEBt .[{lt thumrd Orl Ulvd
Trurhr**$. Ft giurr"rt oo
trlltf 0.lt $.r f !trrrrr*tr$"{ tt,ttt t
WlUtv"{tff lSx Ef m q}r,r$tp
' trTtTs &OOIITIOS fiEEFEE t tffiEn-
[?09 Slr.rtorr Fow
Otl.rtlr, fI. e8lnf*'ffil
650
fitrgluH or Imun mrrm f,effiIr,Arffils
ffurG&Imrrfiffi
re*l$frtrv[xn'
ilfllsTrillimlrpilSfilIttrttu
lbflrffiflIltflfltdmtrL
llHlffrrrIleilm&rMfi{trilffi,iltu
s[re$r(.H{f,rnrGfffiffiufi
Iffi?+Strt
Irdrnffiffinrffilkdxilmnopffi
Skldumdfn:r'{nnytemmtlffifuEndffi,tuitlutmd
I.Efi rsuq, frm|** $"*tffi #I00
Irrrl&.Frilu
It{s !ffiqh h rsgmr to hyid Mlrfft'r knr ilmul XiS t], $]t$ h wiffi lt urry ryrsedrh fu Ofu of Inmroor naguMm pfilo) ocrff rb ttamd*mm' ofrtc fomamo
otnmrp &n tho GrydlrldEeh. Esd u totnMmfmnidrd, It ryonu rlilfrt
elb, ofldbsl BESEI k kB Euoodd ir rfficulbg Imrsoitat qggur 6 ta rlmarblo.'
T[0 B oflflilEd Imhury]modrsryruodvld u mil wnupiidm nlttffilffir$ur$! Eed[efollsy]rsr, Dlns i hffIlt" h ermffiffiwr tileHsilrlsffiDe rrydhsttr& Wfrury b purddc4
llfu Offii ndx,rue &fl & rm tb gwrm ie tm mthdilns Ir 'h nnB*r
rE{rilnmffi dib h&rd E@*4, *ddst ryfro to nqstru tu gpord darqlilffiy
afftdg. *ltffi3[mruot&! ptfu dt5gn Erfl [!l bo m{dio-ChtltE e? offu -
Ehddr hmlmm Cod+ ftEpunru eck bcrodsfid affirto br humdilor md
"oupaffilu
$ntn its atr& of thr Hddr hsrffioc rnfilffi h 8011.
$trufiG&G nm Sr ffiMrdlmm, dsaq$ ih ffi [#ie traffirue
ffi"wW
rfiexr{$&sr ffiEn, ffi *&,rn r fiprfi&}{ffiamrrailr*rr?Ena.er' xrrrrarmrrmiErrifrdal-'i-r=-/ Trs
rtffi*dilrrr.*ffiffi&rm$|}!r
651
Smrnl
Srniltol
Suhlrrtl
Chiluty, Vhglntu lV]rglnla,Chrbty@fl oh,oornl
Thursday, Maroh 00,2014 6;04PM
Brldger, $onle
1ts8847.{ B Clty af Mlrmt EesuluRssrunnblsn*ss Oobrmln*flun:
M* Frld$tt,
Ws hsw flnlrhed tha rrvfa,v sf ths tbova rsforsnmd ruqun$ frum your nffiEr to certls th* 'n**ron*hls*ad ul the
prfip*rt? lnrurtnw pltffifrfi hr the filty sS Mlrml Sesch" A lstter has hern $6nt t0 ths $epartmrnt of Bmug*nurl
MrnilScrnsnt. It f* tffiummrnd*d thu th* {lty luolt lnto lrlglrm Nrmed WnSm*rrr* llrryr*tu for t}ru mnrlng Fullryyrrr,
tnrgll$BA, firlsff
Adsl$tant Gmsral (cunrul
S'ffico sf ln*utnrs nftsulrtlun
0lvt$on of Lryd,$trvta*r
I00 Ee$Slnar ffiet
?allshas$q, &$r$0,s4f0u
Fhonol $&tr4.r.!-{,itg0
{ilnn ll, vjffi Inh4$fi Sfi m'fl SUqSf,l
652
ATTACHMENT 3
Bridges, Sonia
From:
Sent:
To:
Subject:
Holton, Leonard ILeonard.Holton@floir.com]
Monday, November 24,2014 3:00 PM
Bridges, Sonia
reasoableness of coverage determination,
Ms. Bridges,
The Office of lnsurance Regulation has finished the review of the reasonableness of the insurance coverage for the Clty
of Miami Beach. The coverage appear to be reasonable based on the current market conditions. lt is recommended that
the city continue to look lnto higher Named Windstorm limits for the coming pollcy year.
A letter will be sent to the Department of Emergency Management regarding the review. DEM should be in touch wlth
you in the near future.
Leonard Holton
Assistant General Counsel, Legal Services Office
Florida Office of lnsurance Regulation
653
STATE OF FLORIDADIVISION OF EMERGENGY MANAGEMENT
ATTACHMENT 4
RICK SCOTT
Governor
BL/bh
Attachments:
BRYAT.I W. KOON
Dlreotor
January 14,2015
Ms. Sonia Bridges, Risk Manager
City of Miami Beach
1700 Convention Center Drive
Miaml Beach, Florida 33139
Re: City of Miami Beach (2014-2015)
lnsurance Reasonableness Determination Requested
Dear Ms. Bridges:
Please find attached the determination of the State lnsurance Commissioner
regarding the "reasonableness" of the insurance coverage procured by the City of Miami
Beach. Based upon the information reviewed by the Office of lnsurance Regulation, the
State lnsurance Commissioner has determined that the City of Miami Beach has been
successful in procuring insurance that appears to be "reasonable."
Please understand that this determination applies only for the levels of coverage,
terms and coverage periods that were presented for review; should material terms of the
insurance package change, the applicant will need to resubmit for a new reasonableness
determination.
lf you have any questions or require additional information, please contact Bridgette
Hallum, Public Assistance Coordinator, via emall at Bridqette.Hallum@em.mvflorida.com or
by telephone at (850) 413-9809.
Sincerely,
State Public Assistance Officer
Determination of the State lnsurance Commissioner
|\:
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DIVISION HEADQUARTERS .
2555 Shumard Oak Blvd
Tallahassee, FL 32399-2100
Te l:8 50.413-9 909'Fax:8 50-4 88 - 1 016
www. Flo rld a D lsa s te r, or o
. STATE LoGIsTIcS RESPoNSE CENTER
2702 Dlrectors Row
Orlando, FL 32809-5631
654
OrrtcB or IusunaNcs REcULATToN
I(E\[N M. MCCARTY
Cor0"flssloNER
December 11,2014
Bryan Lowe
State Public Assistance Officer
Division of Emergency Management
2555 Shumard Oak Blvd
Tallahassee, Florida 32399-2100
Dear Mr. Lowe:
'Ilris letter is in response to Steven Flyatt's request dated September I 7,2074, in which it was
requested that the Oflice of InsurEurce Regulation (Ot'fice) certify the "reasonableness" of the
insurattce coverage for the City of Miami Beach, tlorida. Based on the information provided, it
appears thal the City of Miami Beach has been successfirl in procuring insurance that appears to
be "reasonable." The City of Miami Beach may have already received an email correspondence
with recomntendations for the coming policy year. Due to changes in the marketplace, additional
comments regarding their program may be provided.
lhe OtIice understands that the reason the program has been submitted is to meet the
requirements of the Federal Stafford Act, which appears to require the approval of a regulatory
authoritv. Although some of the products at issue may not be subiect to Chapter 627 of the
Florida Insurance Code, the program that has been selpcted appears to be "teasonable" ancl
competitive given the state of the Florida insurance market in 2014.
If the olfice can be of further assistance, please do not hesitate to contact us.
KBVINM, McCARTY . CoMMISSIONER
200EAsrcArNBsSrRrEr. TAEAHASSEB,FLoPTDA 32399-0305 . (g50)413-S914. FAx(850)488-3334
WBBSITE: WWW.FLOIR,COM . BMAIL: KEVIN.MCCARTy@FLOIR.COM
Affirmative Action / Equal Opportunity Employer
FTNANcIAL SIiRvIcEs
CoMMISSIoN
RICKSCOTT
GOVERNOR
JETTATWATf,R
CHIBF FINANCIAL OFFICER
PAM BONDI
AI'IORNEY GBNERAL
ADAM PUTNAM
COMMISSIONEROF
ACRICULTURE
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655
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, TO ACCEPT THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE'S APRIL 8, 2015, RECOMMENDATION TO APPROVE THE
PURCHASE OF FLOOD INSURANCE, ALL.RISK PROPERTY INSURANCE
(tNcLUDING WTNDSTORM), AND BOILER & MACHINERY INSURANCE FOR CITY
BUILDINGS AND CONTENTS (INCLUDING NEW CONSTRUCTION); AND FINE
ARTS INSURANCE (BASS MUSEUM AND ART IN PUBLIC PLACES), AS
PROPOSED BY ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC.,
THE CITY'S BROKER OF RECORD
WHEREAS, as proposed by Arthur J. Gallagher Risk Management Services, lnc., the
City's Broker of Record, the Administration has recommended the purchase of Flood lnsurance
with the National Flood lnsurance Program; All-Risk Property lnsurance (including Windstorm)
with Lexington lnsurance Company, Boiler & Machinery lnsurance with Zurich-American, and
Fine Arts lnsurance with Lloyds of London; and
WHEREAS, the Administration has recommended the additional increase in Named
Windstorm insurance limit of $5 million to obtain a total of $20 million in Named Windstorm
coverage; and
WHEREAS, funding is available from the Risk Management budgets 540-1792-000378
($2,735,000), 540-1792-000390 ($53,000) and Park Department budget 480-0463-000343; and
WHEREAS, the City Commission authorizes the Administration to purchase the
forestated insurances, as proposed by Arthur J. Gallagher Risk Management Services, lnc., if
within budgeted funds; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, that the Mayor and City
Commission hereby approve the purchase of Flood lnsurance, All-Risk Property lnsurance
(including Windstorm), and Boiler & Machinery lnsurance for all City-owned buildings and
contents (including new construction), and Fine Arts lnsurance (Bass Museum and Art in Public
Places), as proposed by Arthur J. Gallagher Risk Management Services, lnc, the City's Broker
of Record
PASSED AND ADOPTED this day of 2015.
ATTEST:
Rafael Granado, City Clerk Philip Levine, Mayor
, APPROVED AS TO
T:\AGENDA\2014\May\May 28 ltems\Risk Management\Reso - Property lnsurance Purchase fome4$eANGUAGE
*29-t5
656
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657