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Human Resources
Action Item
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DATE: Friday, April 28, 2006
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the purchase of the quoted property insurance policy with limits and deductibles as outlined for a quoted premium of $7,411,400 plus state surcharges as required (Attachment A).
There is an additional assessment from the state of Florida for Citizens Property Insurance Corporation of 6.84 percent for a total of $506,160 (Attachment B).
EXECUTIVE SUMMARY
The School District of Hillsborough County purchases insurance coverage for its property for loss due to perils such as fire, flood, windstorm, etc. This coverage renews on May 1, 2006. Coverage limits will be set at $100,000,000 which is lower than the $350,000,000 from the previous year. A revised Property Insurance History is captured in Attachment C. Our deductible for named windstorm loss will be five percent. The minimum deductible remains at $1,000,000. The deductible for all other perils remains at $100,000. Our insured values have increased by $102,192,440 to $2,742,817,025. A list of insurance companies contacted is included as Attachment D.
The School District has experienced a tremendous increase in property insurance premiums. Our insured values have increased by over $100,000,000. Property insurance in the state of Florida has risen by over 100 percent and the state of Florida has assessed a premium on all insurance policies to alleviate the short fall of Citizen Property Insurance Corporation. A. J. Gallagher & Company has obtained the coverage available at this time. The reduction in the amount of insurance the District could obtain is a reflection of the inability or unwillingness of the insurance companies to provide greater capacity in the amount of coverage they will offer. There still remains several gaps in coverage at the highest levels and A. J. Gallager & Company continues to negotiate with insurance companies to obtain coverage. The premium listed below reflects the premium inclusive of those gaps if we are able to obtain those limits.
Final program participant limits, and structure may be found on Attachment E. The May 1, 2006 property quote is for $7,411,400, plus taxes and assessments and that is an increase of $3,563,470 from May 1, 2005.
ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)
Contain costs for property insurance.
FINANCIAL IMPACT (Budgeted: Yes)
The property insurance premium in the 2005/2006 School District of Hillsborough County General Fund budget reflects a fifteen percent projected increase from 2004/2005. The premium of $7,411,400 represents an increase for $2,988,000 in the 2005/2006 General Fund budget. Property insurance is $7,411,400, plus taxes and assessments. The Citizens Property Insurance Corporation assessment is $506,160.
EVALUATION
Yearly renewal.
SUBMITTED BY:
Richard M. Martinez
General Manager of Employee Relations & Benefits
(813) 272-4227
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Daniel J. Valdez
Deputy Superintendent
(813) 272-4166
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3.01
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Hillsborough County Public Schools (Florida) * Mtg.#20060428_207 * Section E Item# 3.01
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