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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.