HomeMy WebLinkAboutRESOLUTION - 54-86 - 7/22/1986 - HIGH LEVEL EXCESS LIABILITY POOL HELP RESOLUTION NO. 54-86
RESOLUTION EXPRESSING PRELIMINARY INTENT OF THE CORPORATE AUTHORITIES
OF ELK GROVE VILLAGE TO SERVE AS THE HOST MUNICIPALITY FOR THE ISSU-
ANCE OF A DEBT INSTRUMENT BY THE HIGH-LEVEL EXCESS LIABILITY POOL (HELP)
WHEREAS, the Village of Elk Grove Village has taken a leading role in the
organization and development of an inter-governmental self-insurance pool,
in formation, which has been entitled, "High-level Excess Liability Pool
(HELP) ; and
WHEREAS, HELP is intended to be an inter-governmental entity which will
provide joint excess self-insurance coverage for a number of selected munic-
ipalities from the State of Illinois; and
WHEREAS, the chairman of the HELP Study Committee is George Coney, Director
of Finance of Elk Grove Village; and the other members of the study group are:
The Villages of Hanover Park, Hoffman Estates, Glenview, Arlington Heights,
Skokie, Streamwood, Winnetka, and Schaumburg; and the Cities of Des Plaines and
Park Ridge; and
WHEREAS, the study committee has met on numerous occasions and has tentatively
determined that the most effective way of creating an excess liability pool is to
cause the issuance of a debt obligation which will produce sufficient funds to
provide a substantial level of excess liability coverage for the members of the
pool; and
WHEREAS, a debt obligation cannot be issued by the pool itself, but only by
one of the municipal bodies which is a member of the pool; and
WHEREAS, the members of the study committee have requested that Elk Grove
Village consider serving as the host municipality for the issuance of such
a debt instrument in the nature of a revenue bond, general obligation bond, or
a letter-of-credit guarantee; and
WHEREAS, if the funds from a debt instrument were procured such monies would
be available to all of the members of the self-insurance pool, including Elk
Grove Village, to draw upon in a situation where the community sustained a
large-scale loss; and
WHEREAS, the study committee of HELP is currently considering the creation
of a pool of approximately 15 million dollars ($15,000,000) which would
provide coverage for the members for individual claims in excess of 1 million
dollars ($1,000,000) ; and
WHEREAS, the commitment of the corporate authorities of Elk Grove Village,
as expressed in this Resolution, is limited to a statement of the intent of
this community to carefully consider such documentation as is presented to it,
leading towards its serving as a host community for the issuance of and
obligations associated with a bond issue or letter-of-credit; and
WHEREAS, this tentative statement of intent is conditioned upon the
understanding of the corporate authorities that all expenses of Elk Grove
Village, not associated with its own proportional share of the program,
would be fully funded by the pool and that before any bonds would issue
or other commitments were made, the obligation of this community would be
proportionally backed by the contractual obligations of all of the munic-
ipalities which would become members of the pool.
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 corporate authorities ratify and support the concept of
the creation of a high-level excess liability pool to provide a scope of cover-
age to member municipalities above that level which can reasonably be assumed
by individual communities.
Section 2. That the corporate authorities encourage the study committee
members of HELP to continue in the development of the contract and bylaws for
the proposed inter-governmental self-insurance pool, including the possible
funding of the pool through the issuance of revenue or general obligation
bonds, or through the use of a letter-of-credit commitment.
Section 3. That the corporate authorities will strongly consider permitting
Elk Grove Village to serve in the role as the host municipality which would
issue the revenue or general obligation bonds, or provide backing for the
letter-of-credit, which obligation would, in turn, be proportionally assumed
by each of the members of the pool.
Section 4. That the corporate authorities view their major participation
in this project as another indication of the intent of this municipality to
engage in innovative and cost-cutting programs to provide the citizens of this
community with the best government at the least cost.
2.
Section 5. That this Resolution shall be in full force and effect from
and after its passage and approval according to law.
PASSED this 22nd day of July 1986.
APPROVED this 22nd day of July 1986.
VOTE: AYE: 4
NAY: 0
ABSENT: 2
Charles J. Zettek
Village President
ATTEST:
Patricia S. Smith
Village Clerk
3.