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Res 23-02RESOLUTION NO. 23-02 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, SUPPORTING THE REORGANIZATION OF THE WINDSTORM INSURANCE PROTECTION BUSINESS AS STATED IN HOUSE BILL 1361. WHEREAS, CPIC (Citizens Property Insurance Corporation) would be the resulting entity of the merger between the FRPCJUA and the FWUA; and WHEREAS, customer service would greatly improve because customers would no longer have to deal with two companies and would have the opportunity to maintain their relationship with the current agent and insurer; and WHEREAS, there would be significant tax savings as Citizens is structured to be a tax-exempt entity; and WHEREAS, subsidy would be reduced as CPIC would reduce 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 and would also create a broader and more equitable assessment base by inchding surplus lines insurers and policyholders. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. The City of De[ray Beach endorses proposed legislation that would create the Citizens Property Insurance Corporation to be considered by the Florida Legislature in 2002. 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~ day of February, MAYOR City Clerk RESOLUTION NO. 2302 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DRIRAY BEACH, FLORIDA, SUPPORTING THE REORGANIZATION OF THE WINDSTORM INSURANCE PROTECTION BUSINESS AS STATED IN HOUSE BII.IJ 1361. WHERF_,AS, CPIC (Citi2ens Property Insurance Corporation) would be the resulting entity of the merger between the FRPCJUA and the FWUA; and WHEREAS, customer service would greatly improve because customers would no longer have to deal with two companies and would have the opportunity to maintain their relationship with the current agent and insurer; and WHEREAS, there would be significant tax savings as Citizens is structured to be a tax-exempt entity; and WHEREAS, subsidy would be reduced as CPIC would reduce the need for assessments by allowing the residual market surplus to accumulate mx-free while ensuring that its rates cannot be less than the voluntary market and would also create a broader and more equitable assessment base by including surplus lines insurers and policyholders. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOIJ.OWS: Section 1. The City of Delray Beach endorses proposed legislation that would create the Citizens Property Insurance Corporation to be considered by the Florida Legislature in 2002. 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~ day of February, MAYOR city Clerk [ITY OF I]ELIig¥ BEI [H DELRAY BEACH CITY CLERK 1993 2001 100 N.W. 1st AVENUE · DELRAY BEACH, FLORIDA 33444 - 561/243-7000 Febma~7 20, 2002 Governor Jeb Bush The Executive Office of the Governor The Capital Tallahassee, Florida 32399-0001 Deaz Governor Bush: Please find attached Resolution 21-02 supporting increased funding for Regional Planning Councils, Resolution 22.02 supporting continued funding and ease of permitting of Beach Renourishment projects, and Resolution 23-02 supporgng the reorganization of Windstoma Insurance. The City Commission passed and adopted these resolutions in the Reg~d~r 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:\Cit7 Clerk\chevelle folder\Governor Jeb ~ ~solu~m.02.19.02 THE EFFORT ALWAYS MATTERS [lTV JIF DELRI:IV BEI:I[H DELRAY BEACH CITY CLERK lll-lmeflcaCity 1993 2001 100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 561/243-7000 February 20, 2002 Representative Jeff Atwater District 83, Florida House of Representatives 402 North Monroe Street T~lhh~ssee, Florida 32399 Dear Representative Atwater. 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~ty Clez'k\chevelle folder\Atwater resoluuons..02.19.02 Pnnfed on Recycled Paper THE EFFORT ALWAYS MATTERS [IT¥ OF I]ELRR¥ BER£H DELRAY BEACH F ~ o · B O A A,-Am~City 1993 CITY CLERK 100 N.W. 1st AVENUE 2001 DELRAY BEACH, FLORIDA 33444 561/243-7000 Febma~7 20, 2002 Palm Beach County League of Cities 301 North Olive Avenue, Suite 1002.17 West Palm Beach, Florida 33401 Dear Palm Beach County 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,ty Clerk\chevell¢ folder\PBC League of C~ties r~ooluoons.02.19.02 Pnnted on Recycle~ Paper THE EFFORT ALWAYS MATTERS £1TV UF lZELRI:IV BEI:I£H DELRAY BEACH CITY CLERK 1993 2001 100 N.W. 15t AVENUE - DELRAY BEACH, FLORIDA 33444 561/243-7000 February 20, 2002 Florida League of Cities P.O. Box 1757 Tallahassee, Florida 32302 Dear Florida League of Cities: Please find attached Resolution 22-02 supponiug continued funding and ease of permitting of Beach Renourishment projects, and Re~olution 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 $:\City CK~\~ foider\Flotlda League of Ci6m.02.19.02 THE I~FFORT ALWAYS MATTERS Pnnt~ ~fl Recycled Jeff Atwater District 83 Florida House of Representatives 10337 North Military Trail Palm Beach Gardens, FL 33410 (561) 695-5101 Fax (561) 625-5103 atwater, ieff(~leg, state~fl, us 40~ North Monroe St Tallahassee FL 3~399 (850) 488-0322 Fax 1-888-544-0397 February 12, 2002 Da;fid W. Schmidt, Mayer 100 N.W. 1st Avenue Delray Beach, FL 3340A-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 ~n Tallahassee. The matters at hand are the renourishment of our beaches and the structure of the w~ndstorm insurance industry. Beach renourishment, 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 affordability, accessibility and improved customer service. In order to accomplish 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 ~nvolved committee members. I have included with this request points of importance regarding each issue that could be used as a guide in the resolution-writing process. I hope they prove to be helpful. Thank you ~n advance for your attention to this matter and also for your continued support of all issues ~mportant to the residents, businesses and munimpalities 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, Economic Dev. & Int'l Trade Elder and Long-Term Care Fiscal Pohcy & Resources Council for Competitive Commerce 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 FRPCJIJA - 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 carders 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.