Okaloosa County BOCC — March 1, 2016 — Property Insurance Renewal 2016-2017 — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: March 1, 2016 TO: Honorable Chairman and Members of the Board FROM: Laura Porter SUBJECT: Property Insurance Renewal 2016-2017 DEPARTMENT: Risk Management BCC DISTRICT: ALL STATEMENT OF ISSUE: Request authority for staff to bind and purchase coverage for the county’s property insurance program. BACKGROUND: On an annual basis Property, Terrorism and Boiler & Machinery insurance coverages are renewed effective April 1. The premiums for 4/1/2016 to 3/31/2017 are as follows: $562,351.00 Property $21,014.00 Terrorism $ 10,414.00 Boiler & Machinery $593,779.00 Total We continue to review the County insurance program to ensure protection of the County’s assets while remaining fiscally responsible. In preparation for this year’s annual property insurance renewal, we made appropriate adjustments to the property schedule, including the temporary removal of the Crestview Courthouse since it is slated for demolition in the near future. These adjustments resulted in a 3.89% decrease in property values to $226,589,216 (down from $235,748,863) for this renewal period. The reduction in value coupled with a 9.66% rate decrease provides a cost savings of $94,450 in annual premium. This cost savings will help offset the additional premium for the Airport Control Tower expected to be completed in October 2016. It is anticipated that the new Crestview Courthouse will be completed in eighteen months, and at that time will need to be added to the property schedule. OPTIONS: Approve/Disapprove RECOMMENDATIONS: Authorize purchase of property, terrorism, and boiler & machinery coverage for the period 4/1/16 through 3/31/17 as outlined, and authorize staff to sign the application and any required documents. This authorization includes the addition to the property schedule and payment of premiums for the new Airport Control Tower and any other buildings that might be added during the policy term. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator