Broward County Commission Regular Meeting


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AI-26004 18.       
Meeting Date: 01/09/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Risk Management

Information
Requested Action
MOTION TO APPROVE Release and Assignment of Claim for the benefit of Fidelity and Deposit Company of Maryland; and authorize the Mayor and Clerk to execute the same.

ACTION:  (T-10:20 AM)  Approved, as amended, with the Yellow-Sheeted Additional Material, dated January 9, 2018, submitted at the request of the Office of the County Attorney.

VOTE: 8-0.  Commissioner Geller was not present.
Why Action is Necessary
Fidelity and Deposit Company of Maryland requires the execution of the Release and Assignment of Claim prior to payment of all identified losses to date, excluding the $10,000 deductible, relating to Claim No. 6380073068.
What Action Accomplishes
This release and assignment of claim will reimburse Broward County for the losses incurred from a fraud perpetrated against Broward County.
Is this Action Goal Related
Previous Action Taken
None. 
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE RISK MANAGEMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.

Funds paid in excess of the minimum statutory bid amount for properties sold at a tax deed sale (Surplus Tax Deed Funds) are held by Broward County for the benefit of statutorily-identified lien-holders of record and the prior property owner. As a result of fraudulent activities, Surplus Tax Deed Funds were incorrectly paid to unauthorized entities. The County was insured for these losses and filed a claim for reimbursement with its insurer, Fidelity and Deposit Company of Maryland (Fidelity). The applicable insurance policy has a $10,000 deductible for the claim.  The cost described herein is considered a singular incident with a singular $10,000 deductible.

Fidelity has completed its investigation of the claim and has substantiated the full amount of the County’s calculation of identified losses in the amount of $2,412,308, and approved that amount as covered under the insurance policy. Fidelity requires the execution of the Release and Assignment of Claim (Release) prior to payment of the substantiated claim. The Release is limited to losses identified to date (itemized on Exhibit A of the Release) and does not prohibit the County from supplementing its claim for later-discovered losses.
Source of Additional Information
Kevin B. Kelleher, Deputy CFO/Deputy Director, Finance and Administrative Services Department, (954) 357-7132

Fiscal Impact
Fiscal Impact/Cost Summary:
The deductible amount of $10,000 has been funded by the appropriate self-insurance fund, and the reimbursed funds will be returned to the tax deed surplus funds.
Attachments
Exhibit 1 - Release and Assignment of Claim
Additional Material - Information


    

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