Res 22-02Jeff Atwa er
District 83 -
Florida House of Representatives
FEB ! 5 2002
ClT'i :'d .... "'
10337 North Milita~' Trail
Palm Beach Gardens, FL 33410
(561) 625-5101 Fax (561) 625-5103
atwater, j eff(q)leg, state, fl.us
402 North Monroe St.
Tallahassee FL 32399
(850) 488-0322 Fax 1-888-5~t4-0397
February 12, 2002
David W. Schmidt, Mayer '
100 N.W. 1st Avenue
Delray Beach, FL 33444-2698
Dear David:
With session in full swing, I wanted to relay information about two issues of vital importance to Palm
Beach County that are currently being raised here in Tallahassee. The matters at hand are the
renourishment of our beaches and the structure of the windstorm insurance industry.
Beach reriourishment, an issue significant to both our residents and our tourism industry, needs your
support in order to not only maintain funding but to also facilitate a more user-friendly permitting
process.
It is my desire to bnng a competitive marketplace back into the windstorm protection insurance business
~n order to promote affordabfiity, accessibihty and improved customer service.
In order to accomphsh these goals, I am appealing for your support in the form of a resolution approved
by your municipality. It is my hope that these resolutions could be sent directly to my office in
Tallahassee at which time we will make sure they are placed in the proper hands of involved committee
members. I have included with this request points of ~mportance regarding each ~ssue that could be used
as a guide in the resolution-writing process. I hope they prove to be helpful.
Thank you in advance for your attention to this matter and also for your continued support of all issues
important to the residents, businesses and municipalities of Palm Beach County.
If my office can be of further assistance on this matter, please don't hesitate to contact us.
Sincerely,
Jeff Atwater
Vice-Chair, EconollHc ])er & lnt'l Trade
Elder and Long-Term Cea'e
I~hseal Pohcy & Besources
Goancfl for Competitive Comme~e
Windstorm Insurance
Citizens Property Insurance Corporation is the new entity resulting from the merger of the
Florida Windstorm Underwriting Association into the Florida Residential Property and Casualty
Joint Underwriting Association. Citizens will offer significant enhancements over these
entities, while maintaining their critical elements. The following are the major features of the
proposal:
Less Government - Florida has two separate residual property markets. The
FRPCJUA - Florida Residential Property & Casualty Joint Underwriting Association,
and the FWUA - Florida Windstorm Underwriting Association. Currently these markets
have separate computer systems, separate management teams, separate headquarters, as
well as two sets of consultants, law firms, actuaries, regulations, and legislative agendas.
Under CPIC this duplication is eliminated by using one entity to handle these functions.
Improved customer service - Currently, many Florida citizens that participate in the
residual markets must complete two applications and write two checks each month. After
a loss the policyholder may have to deal with two companies, two agents and two
separate adjusters. The coverage that is obtained often times is inferior to coverage
available in the private market. Also, consumers may be forced to move all of their
insurance coverage to a take-out company, regardless of the consumer's previous
relationship with their agent and prior insurer. Under CPIC, consumers will be able to
purchase comparable coverage to the voluntary market and have the opportunity to
maintain the relationship with their current agent and insurer.
Significant Tax Savings - Citizens is structured to be a tax-exempt entity. This will
allow CPIC to collect revenues tax-free and issue tax-free bonds. According to a 2001
Senate Interim Report, this would reduce debt service costs by as much as $1 billion on a
$2.5 billion 20-year bond.
Reduces Subsidy - Florida's residual markets burden all homeowners by levying
assessments on carriers who pass the cost on to policyholders through higher premiums.
As the residual markets grow, so does the potential assessment burden on all
homeowners. The CPIC proposal reduces the need for assessments by allowing the
residual market surplus to accumulate tax-free while ensuring that its rates cannot be less
than the voluntary market. CPIC also creates a broader and more equitable assessment
base by including surplus lines insurers and policyholders. Currently homeowners
insured through surplus lines carriers are exempt from assessments.
Why is beach renourishment important?
Beach projects protect property - property that is some of the most
valuable real estate in Florida from a tax base standpoint as well as
important public lands and roadways.
Healthy beaches contribute to a healthy economy, i.e. tourism.
Beach projects can be completed without environmental damage or
with
appropriate mitigation.
What can the State of Florida do to facilitate
beach renourishment projects?
Continue to fund beach renourishment projects at a level consistent
with the essential needs of coastal regions.
Permitting should be made easier to facilitate the faster completion
of environmentally responsible projects and the Federal and State
permit requirements should be coordinated for consistency.
Areas downdrift from inlets should receive special consideration for
projects mitigating inlet-caused erosion.
RESOLUTION NO. 22-02
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, SUPPORTING THE
CONTINUED FUNDING SUPPORT AND EASE OF
PERMITTING OF BEACH RENOURISHMENT PROJECTS IN
COASTAL MUNICIPALITIES IN THE STATE OF FLORIDA.
WHEREAS, beach renourishment is important because it provides valuable storm
protection benefits for public and private property and this property is some of the most valuable
real estate in Florida from a tax base standpoint; and
WHEREAS, beach renourishment promotes healthy beaches vital for endangered
sea turtle nesting:
WHEREAS, beach renourishment promotes healthy beaches which contributes to a
healthy economy; and
WHEREAS, all beach renourishment projects are required to be economically
justified and therefore provide a positive benefits to cost ratio; and
WHEREAS, beach renourishment provides incidental recreational benefits for the
citizens and tourists of the State of Florida: and
WHEREAS, the State of Florida can facilitate beach renourishment projects by
continuing to fund these projects at a level consistent with the essential needs of coastal regions; and
WHEREAS, beach projects can be completed without environmental damage or
with appropriate mitigation; and
WHEREAS, permitting should be made easier to facilitate the faster completion of
environmentally responsible projects and the Federal and State permit requirements should be
coordinated for consistency; and
WHEREAS, areas downdrift from inlets should receive special consideration for
projects mitigating inlet-cause erosion; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOI.I.OWS:
Section 1. The City of Deiray Beach, Florida endorses proposed legislation to be
considered in the Florida Legislature in 2002 that supports continued funding and ease of permitting
in beach renourishment projects facilitated in coastal regions/municipalities.
Section 2. The City Clerk is hereby directed to provide copies of the resolution to
Rep. Jeff Atwater, Palm Beach County League of Cities, the Florida League of Cities, and Governor
Jeb Bush.
2002.
PASSED AND ADOPTED in regular session on this the 19~h day of February,
ATTEST:
City Clerk
MAYOR
2 Res. No. 22-02
£1T¥ OF DELRR¥ BEI:ICH
DELRAY BEACH
1993
CITY CLERK
100 N.W. IstAVENUE DELRAYBEACH, FLORIDA 33444
2001
561/243-7000
Febm~ 20, 2002
Florida League of Cities
P.O. Box 1757
Tallahassee, Florida 32302
Dear Florida League of Cities:
Please find attached Resolution 22-02 supporting continued funding and ease of permitting
of Beach Renourishment projects, and Resolution 23-02 supporting the reorganization of
Windstorm Insurance. The City Commission passed and adopted these resolutions in the
Regular Commission Meeting of February 19, 2002.
If we can be of any assistance to you, please call the office 8:00 a.m.- 5:00 p.m. Monday
through Friday at (561) 243-7050.
Sincerely,
Chevelle D. Nubin
Executive Assistant
S:\C,t7 Cletk\chevclle folder\Florida Lc'asuc of Cst~es.02.19.02
Pnnted on Recycled Paper
THE EFFORT ALWAYS MATTERS
[lTV DF DELRRV BEI:I[H
DELRAY BEACH
CITY CLERK
1993
2001
100 N.W. 1st AVENUE
DELRAY BEACH, FLORIDA 33444
5611243-7000
Febtu,u7 20, 2OO2
Palm Beach County League o£ Cities
301 North Olive Avenue, Suite 1002.17
West Palm Beach, Florida 33401
De. at Palm Beach County League of Cities:
Please find attached Re~olution 22-02 supporting continued funding and ease of permitting
of Beach Reno_uri~hment projects, and Resolution 23-02 supporting the reorganization of
Windstorm Insurance. The City Commission passed and adopted these resolutions in the
Reguhr Commission Meeting of February 19, 2002.
If we can be of any assistance to you, please call the office 8:00 a.m.- 5:00 p.m. Monday
through Friday at (561) 243-7050.
Sincerely,
Chevelle D. Nubin
Executive Assistant
~\C~ty Clerk\chevclle foidet\PBC Le~ue olr Ckies re~lufom.02.19.02
THE EFFORT ALWAYS MATTERS
[lTV JIF DELI:II:IV BEI:I£H
DELRAY BEACH
AU-Ame~O~ty
1993
2001
CITY CLERK
100 N.W. 1st AVENUE
DELRAY BEACH, FLORIDA 33444
561/243-7000
February 20, 2002
De~r Representative Atwater:
Please find attached Resolution 2202 supporting continued fimding smd e~se of pem~t~g
of Beach Renourishment projects, smd Resolution 23-02 supporting the reorganization of
Windstorm Insurance. The City Commission passed smd adopted these resolutions in the
Reg-lnr Commission Meeting of February 19, 2002.
If we can be of any assistance to you, please call the office 8:00 a.m.- 5:00 p.m. Monday
through Friday at (561) 243-7050.
Sincerely,
Chevelle D. Nubin
Executive Assistant
\City Clezk \chevdle foider\Anv~e~ t~solutlons..02.19.02
THE EFFORT ALWAYS MATTERS
[IT¥ DF DELRR¥ BEI:I£H
DELRAY BEACH
CITY CLERK
1993
2001
100 N.W. 15t AVENUE - DELRAY BEACH, FLORIDA 33444
561/243-7000
February 20, 2002
Govemor Job Bush
The Executive Office of the Governor
The Capital
Tallahassee, Florida 32399-0001
Dear Governor Bush:
Please find attached Resolution 21-02 supporting increased funding for Regional Planning
Councils, Resolution 22-02 supporting continued funding and ease of pemaitting of Beach
Renoutishment projects, and Resolution 23-02 supporting the reorganization of Windstoma
Insurance. The City Commission passed and adopted these resolutions in the Regular
Commission Meeting of February 19, 2002.
If we can be of any assistance to you, please call the office 8:00 a.m.- 5:00 p.m. Monday
through Friday at (561) 243-7050.
Sincerely,
Chevelle D. Nubin
Executive Assistant
S:\City Cie~\chevelle folder\G~Jeb l~h vesolutiom.02.19.02
l~ff~l ;va Recycled P~oer
THE EFFORT ALWAYS MATTERS