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.
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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
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January 14, 1986
(DATE)