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HomeMy WebLinkAboutRESOLUTION - 2-86 - 1/14/1986 - STUDY GROUP FOR SELF INSURANCERESOLUTION NO. 2-86 A RESOLUTION AUTHORIZING THE VILLAGE PRESIDENT TO EXECUTE A LETTER OF AGREEMENT FOR THE VILLAGE TO PARTICIPATE IN THE EXCESS INSURANCE POOL STUDY GROUP AND AUTHORIZE THE SUM OF $5,000.00 BE INITIALLY PAID INTO AN ESCROW FUND TO BE MAIN- TAINED FOR THE COSTS INCURRED BY THE STUDY GROUP NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois: Section 1. That the Village President is hereby authorized to execute the subject Letter of Agreement, a copy of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said document upon the signature of the Village President which authorizes participation by the Village of Elk Grove Village in a Study Group to analyze the feasibility of creating an intergovernmental self-insurance pool to provide a scope of coverage above high self-insured retention amounts covered by individual municipal self-insurance. Section 2. That the Village President and Board of Trustees hereby authorize the sum of $5,000.00 be initially paid into an escrow fund to be maintained for the costs incurred by the Study Group. Section 3. That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 14th day of January 1986. APPROVED this 14th day of January 1986. Charles J. Zettek Village President ATTEST: Patricia S. Smith Village Clerk Elkas i Grove ;. Village Village President CHARLES J. ZETTEK Village Clerk PATRICIA S. SMITH Village Manager CHARLES A. WILLIS LETTER OF AGREEMENT Village Trustees JOSEPH T. HOSSLET RONALD L. CHERNICK DENNIS J. GALLITANO EDWARD R. HAUSER JAMES P. PETRI MICHAEL A. TOSTO WHEREAS, a number of Illinois municipalities have for some time individually self-insured losses and claims which were traditionally protected against through the purchase of conventional insurance; and, WHEREAS, municipalities which individually self- insured often continued to purchase conventional insurance to provide protection for loss or claim amounts at levels above those which the municipalities desired to cover through individual self-insurance; and, WHEREAS, in recent months, the cost of such excess insurance has become extremely high and the availability of such conventional insurance, both on a current and long-term basis, has become highly unreliable; and, WHEREAS, a number of municipalities have held pre- liminary discussions regarding the creation of a joint self- insurance pool to provide coverage at levels above those at which the individual municipalities have self-insured; and, WHEREAS, the municipalities have determined that feasibility studies need to be conducted in order to gauge their legal and practical ability to organize such a joint excess self-insurance pool; and, WHEREAS, this municipality and a number of other municipalities have determined that it is desirable to ini- tially fund such a study with each municipality contributing the sum of $5,000.00; and, WHEREAS, depending upon the number of municipalities which participate in the study, the sum of $5,000.00 per community may be sufficient to accomplish all research and drafting. If the scope of the project should be expanded by its participating municipalities beyond that currently contemplated, additional funding may become necessary. If a joint self-insurance pool is developed out of this study, any future Members will be required to help recoup the research and start-up costs, 901 WELLINGTON AVENUE • TELEPHONE (312) 439-3900 0 ELK GROVE VILLAGE, ILLINOIS 60007 NOW, THEREFORE, IN CONSIDERATION OF THE COMMITMENT OF OTHER MUNICIPALITIES TO MAKE A FINANCIAL COMMITMENT TO THIS STUDY GROUP, THE CORPORATE AUTHORITIES OF THE VILLAGE OF ELK GROVE VILLAGE , COOK AND DUPAGE COUNTY, ILLINOIS, DO HEREBY AGREE, as follows: 1. This municipality agrees to pay the sum of $5,000.00 within 14 days from the signature of this document. That sum will be transmitted in escrow to: George Coney, Director of Finance, Elk Grove Village, 901 Wellington Avenue, Elk Grove Village, Illinois 60007, who will place such money, along with that received from other municipalities in a special account which will be used to fund the costs of the study described above as is authorized by a majority vote of the representatives of the participating municipalities serving on the Study Group or a majority vote of the members of an executive committee of the Study Group in the event that the representatives of the participating municipalities should establish such a committee. The checks will be made out to "The Village of Elk Grove Village". 2. The Study Group shall consist of one representa- tive from each participating municipality. A quorum for conducting the business of the Study Group shall consist of a majority of the representatives of the participating municipalities present at a meeting, the existence of which is made known to the participating municipalities with at least three (3) days' prior notice. The Study Group shall select a Chairman, Vice -Chairman and such other officers as shall be necessary to conduct its business. 3. The funds transmitted by the participating muni- cipalities to the Study Group can be utilized for the adminis- trative costs of the Group and the payment of consultants. The person charged with the holding of the funds of the Group shall keep records regarding the receipt and disbursement of such funds. The funds may be invested in the same manner as other municipal funds. 4. After the Study Group has completed its work and paid all outstanding bills, the person who has been placed in charge of the funds of the Study Group shall prepare a final financial report and in the event that not all of the funds of the Group have been expended, all remaining funds shall be returned to the participating municipalities in the same proportion to which funds were contributed. - 2 - 5. This municipality shall become obligated to participate in the Study Group at such time as eight (8) municipalities have executed letter agreements in all signi- ficant matters identical to the contents of this agreement. Unless the requisite number of municipalities have agreed to participate in this project on or before March 1, 1986, the obligations undertaken by this municipality in this agree- ment shall be void and any funds received by the entity to which payments have been submitted shall be returned. ATTEST: Patricia S. Smith Patricia S. Smith, Village Clerk Charles J. Zettek Charles J. Zettek, Village President - 3 - January 14, 1986 (DATE)