2011-1109 Special City Commission Meeting

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Summary Minutes: Special City Commission Meeting November 9, 2011 Sunny Isles Beach, Florida builders risk are fully termed so that they can't be cancelled or prorated but he agrees as to whatever the appropriate time is. It was a rather difficult policy to try and obtain, they actually went to 13 different insurance carriers and most of them declined totally but we were able to get a quote to cover this project. Vice Mayor Thaler said this may again fall into the two hurricane seasons by the time we get this thing, what are we gaining by approving this now, and Commissioner Scholl said if we got the permit tomorrow and the demo got done, staff needs the ability to bind the policy, and so we are going to need it at some point but we are just giving staff the authority to bind it when it is necessary. Commissioner Aelion said he does not agree because as noted by the Vice Mayor and by the Mayor that this can be a valuable amount depending on circumstances beyond our control, and so he doesn't think an amount should be voted upon today. Mayor Edelcup asked if we can create a resolution today that is effective for the next 30 days, so we can give the Manager the authority between Commission meetings to do this. City Attorney Ottinot said the Resolutionjust expresses the Commission and you can put any conditions you want on it, that one is not precluded by law. City Manager Cohen said he had spoken with Mr. Hollander and the rate will not be going down regardless ofthe time frame, it can only go up. Weare asking for this dollar amount so that we are not going to be overspending, we might have to come back to the Commission if this gets dragged out and the rate is impacted. The point is if we get the permit approved within a reasonable period of time, then we can start mobilizing immediately. If you are going to vote on it today, then he would say to do it for 40 days because the next Commission meeting is actually 40 days from now. Commissioner Aelion said if the City Manager believes that this is the minimum threshold and it won't go down but only up, then he would ask Brown and Brown if this amount can be locked in for an amount of time that according to the City Manager is feasible. Mr. Hollander said the insurance underwriters can be difficult about extending dates, we have done that a few times because of various issues like turtle eggs, they always say to him that we need to extend the proposal to a certain date, they give us a deadline usually, and he wants to make sure that when the proper time comes that the permit is issued, the coverage is effective, and there will not be an increase in the premium, and so he wants to be able to get back to his underwriter and tell them that he was at the Commission meeting and it has been delayed for 30-45 days so that we can at least have communication with them. Commissioner Scholl said he doesn't think we need to delay it, we can just give staff the authority to bind it in the next 40 days, and if they don't bind it in 40 days then it comes to the next meeting. Mayor Edelcup said that the Manager is saying that he is not going to move forward until he has the permit, and we are saying that we want to lock in the rate but we don't want to buy the insurance until we know that we need it, and we don't know when we are going to start needing it, and so the only way we can accommodate that is to take it down the line that this Commission will give the Manager the authority to buy that insurance at $108,578.96 as long as it is still available when he is able to buy it. We can handle it that way in the resolution and then you don't have to come back, we can set a limit of no greater than $108,578.96 and no less than one year of coverage, the resolution has a sunset date of a year from now just in case we haven't moved forward and we get the opportunity to revisit it. Commissioner Scholl moved and Commissioner Aelion seconded a motion to approve the resolution, as amended. Resolution No. 2011-1796 was adopted by a voice vote of5-0 in favor. 6