M. Commissioners' Items
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Wed" March 15,2006
Division: BOCC
Bulk Item: Yes
No XX
Department: Commissioner David Rice, District 4
Staff Contact Person: Tamara Lundstrom
AGENDA ITEM WORDING: Approval of Resolution of the Board of County Commissioners
setting forth actions to be taken to address windstorm insurance rates.
ITEM BACKGROUND: The action items outlined in the Resolution gives Monroe County the
greatest probability of successfully resolving the current windstorm insurance crisis.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH Year
APPROVED BY: County Atty _ OMBIPurchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL:
9)cwid [f. 9lice
(David p, Rice, Commissioner)
DOCUMENTA TION:
Included XX
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 2/05
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WARIUtAS. a group of concerned citizens F.I.R.M. (Fair Insurance Rates
for Monroe County) has brought countywide attention to the fact that there is a
windstorm insurance premium crisis in Monroe County; and
WHEREAS, the cost-of-living in Monroe County is the highest in the
State of Florida; and
WIIBRBAS, a home in Monroe County with an insurable value of
$350,000 in 2005, on average paid $5.747 for windstorm insurance, wHl in
2006 pay nearly double at $10,539 annually or $878.26 per month for
windstorm coverage after Citizen's Property Insurance proposed rate increase.
The net annual cost of windstorm insurance on the $350,000 home would be
in the range of $17,539 to $28,039. if the deductible of ~Al or 5% is included in
the cost of the insurance; and
WHBRBA8, a school teacher. law enforcement officer, government
employee, social worker, nurse, fisherman or fixed-income retiree who owns a
home in the Florida Keys does not have sufficient income to pay the current
windstorm premiums much less the substantial increase proposed by Citizen's
Property Insurance. and may have to consider moving from the Keys; and
WHBRBA8, there is an affordable housing crisis in the Keys and a
shortage of affordable rental housing, and any increase in windstorm
premiums no doubt will be passed-on by landlords to their tenants resulting in
even higher residential rental rates; and
WIIBRBA8, the building codes in Monroe County were for many years
much more stringent than in other parts of the State and consideration of the
heightened building code standards should be incorporated and heavily
weighted in the calculation of windstorm rates; and
WHBRBAB, the deductib1es on windstorm policies are so high the
homeo\\-"I1ers generally are unable to make claims for windstorm damage or to
pay for windstorm repairs, thereby making windstonn policies impractical and
unaffordable; and
WHBRSAS. the: dramatic increases in windstorm insurance premiums
will result in fewer people purchasing windstorm insurance if they are not
required to have casualty insurance. with the result that catastrophic
windstorm damage to those homes will either not be repaired or in many
AcluaJY
1
instanCes will be repaired at the expense of local, state and federal govemment
taXpayers; and
'WIIBJtBa.8. the history of the last tWO years reflects that the entire state
of Florida Is vulnerable to windstorm damal\<8. especiallY those parts of tbe
state wbere bumcane shutterS and other storm-proofing teCbnlques are not in
common practice; and
WJlBIIBAII, the State of F\oridS bas estimated that the State bas and will
receive a "windfall" sales tax revenue in ex<:eS8 of $3 billion from hurricane
rebuilding efforts;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, that:
1. The Board of County Commissioners shall hire an independent
actuary to review Citizens Property Insurance rate rding lor Monroe county and
to hire legal counselor other appropriate professional consultant review
current legislation regarding Citizens Property Insurance to dele1"lt>ine what
affect it would have on homesteaded property and non-homesteaded property
being used as affordable housing in Monroe County.
2. The Board of County Commissioners staff shall work with FIRM to
coordinate FIRM's activities with the Board of County Commissioners,
3. This resolution shall become effective on date of adoption.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe
County, Florida. at a meeting of said Board held on the fifteenth day of March.
A.D, 2006.
Mayor Charles "Sonny. McCoy
Mayor Pro Tem Murray Nelson
Commissioner George Neugent
commissioner Oavid Rice
Commissioner Dixie Spehar
BOARD OF COUN1Y COMMISSIONERS
OF MONROE COUNTY, FLORIDA
(Seal)
Attest: DANNY L. KOLHAGE, Clerk
By:
Mayor jChairman
By:
Deputy Clerk
2
h;Ul.lr)'
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Wed" March 15,2006
Division: BOCC
Bulk Item: Yes
No XX
Department: Commissioner David Rice, District 4
Staff Contact Person: Tamara Lundstrom
AGENDA ITEM WORDING: Approval of Resolution to Governor Bush, Cabinet, and Florida
Legislature urging use of hurricane-generated revenue windfall to provide relief to Florida
homeowners from expected $1.5 billion assessment.
ITEM BACKGROUND: Citizens Property Insurance Co. has a current debt of $1.3 billion
dollars due to losses from last hurricane season and is assessing Florida property owners at
extremely high rates to offset the debt. The relief could be provided to property owners in the
form of a direct rebate of their assessments.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH Year
APPROVED BY: County Atty _ OMBIPurchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL:
9)cwid [f. 9lice
(David p, Rice, Commissioner)
DOCUMENTA TION:
Included XX
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 2/05
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DlSURA.-CB RATa,
WJIBRBA8, a group of concerned citizens F.I.R.M. (Fair Insurance Rates
for Monroe County) has brought countyWide attention to the fact that there is a
windstorm insurance premium crisis in Monroe County; and
WJIBRBA8, the cost-of-living in Monroe County is the highest in the
State of Florida; and
WJIBRBA8, a home in Monroe County with an insurable value of
$350,000 in 2005, on average paid $5,747 for windstorm insurance, will in
2006 pay nearly double at $10,539 annually or $878.26 per month for
",indstorm coverage after Citizen's Property Insurance proposed rate increase,
The net annual cost of windstorm insurance on the $350,000 home would be
in the range of $17,539 to $28,039, if the deductible of 2% or 5% is included in
the cost of the insurance; and
WJIBRBA8. a school teacher, law enforcement officer, government
employee, social worker, nurse, fisherman or fIXed.income retiree who owns a
home in the Florida Keys does not have sufficient income to pay the current
windstorm premiums much less the substantial increase proposed by Citizen's
Property Insurance, and may have to consider moving from the Keys; and
WHBRBA8. there is an affordable housing crisis in the Keys and a
shortage of affordable rental housing, and any increase in v.indstorm
premiums no doubt will be passed-on by landlords to their tenants resulting in
even higher residential rental rates; and
WHBRBA8. the building codes in Monroe County were for many years
much more stringent than in other parts of the State and consideration of the
heightened building code standards should be incorporated and heavily
weighted in the calculation of windstorm rates; and
WBBRBAS, the deductibles on windstonn policies are so high the
homeowners generally are unable to make claims for windstorm damage or to
pay for windstorm repairs, thereby making windstorm policies impractical and
unaffordable; and
WIIERBAS, the dramatic increases in windstorm insurance premiums
will result in fewer people purchasing windstonn insurance if they are not
Use or HlIr. recolllilnK:bon Sales Tax
1
required to have casualty insurance, with the result that catastrophic
windstorm damage to those homes will either not be repaired or in many
instances will be repaired at the expense of local, state and federal government
taXpayers; and
~, the history of the last two years reflects that the entire state
of Florida is vulnerable to windstonn damages, especially those parts of the
state where hurricane shutters and other storm-proofing techniques are not in
common practice; and
W'IIBRBA8. the State of Florida has estimated that the State has and will
receive a "windfall" sales tax revenue in excess of $3 billion from hurricane
rebuilding efforts;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, that:
1. The Board of County Commissioners urges Governor Bush, the Cabinet and
the State Legislature to use the $3.2 billion hurricane reconstruction sales tax
windfall to provide relief to Citizens' insureds from the expected $1,5 billion
assessment.
2. The Clerk shall send a copy of this resolution to the Honorable Jeb Bush,
the Honorable Charlie Crist, the Honorable Tom Gallagher. the Honorable
Charles H. Bronson, State Senators Larcenia Bullard and Rudy Garcia. and
State Representatives Ken Sorensen and Dennis Ross. and the members of the
Board of Governors for Citizens Property Insurance Corporation.
3. This Resolution shall become effective on the date adopted.
PASSED AND ADOPI'ED by the Board of County Commissioners of Monroe
County, Florida, at a meeting of said Board held on the fifteenth day of March,
A.D. 2006.
Mayor Charles "SQnny>' McCoy
Mayor Pro Tern Murray Nelson
Commissioner George Neugent
Commissioner David Rice
Commissioner Dixie Spehar
[Seal)
Attest: DANNY L. KOLHAGE, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUN1Y, FLORIDA
By:
By:
Mayor/Chairman
Deputy Clerk
u~ or Hur. recunstructiOR Slles Tax
2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Wed" March 15,2006
Division: BOCC
Bulk Item: Yes
No XX
Department: Commissioner David Rice, District 4
Staff Contact Person: Tamara Lundstrom
AGENDA ITEM WORDING: Approval of Resolution requesting reductions to Citizen's
Property Insurance rate computations, specifically the additional costs of, A. Industry Expense
Equalization Factor, and B. Assessment Reduction Provision.
ITEM BACKGROUND: The net effect of the recommended reductions from the Citizen's rate
computations should reduce rates commensurate with the 2005 rates,
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH Year
APPROVED BY: County Atty _ OMBIPurchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL:
9)cwid [f. 9lice
(David p, Rice, Commissioner)
DOCUMENTA TION:
Included XX
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 2/05