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HomeMy WebLinkAboutOrd 3892 02/02/1988ORDINANCE NO. 3892 AN ORDINANCE AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT PROVIDING FOR THE PAYMENT OF A PROPORTIONATE SHARE OF THE DEBT SERVICE AND RELATED COSTS OF THE BONDS ISSUED TO PROVIDE FUNDING FOR A JOINT SELF- INSURANCE RESERVE FUND FOR THE MEMBERS OF THE HIGH-LEVEL EXCESS LIABILITY POOL (HELP) PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 2nd DAY OF February , 1988.. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 3rd day of February , 1988. ORDINANCE NO. 3892 AN ORDINANCE AUTHORIZING EXECUTION OF AN INTERGOVERN- MENTAL AGREEMENT PROVIDING FOR THE PAYMENT OF A PROPOR- TIONATE SHARE OP THE DEBT SERVICE AND RELATED COSTS OF THE BONDS ISSUED TO PROVIDE °FUNDING FOR A JOINT SELF- INSURANCE RESERVE FUND FOR TEE MEMBERS OF THE HIGH-LEVEL EXCESS LIABILITY POOL (HELP). WI{EREAS, Section 10 of Article VII of the Illinois Constitution of 1970 authorizes units of local government to contract or otherwise associate among themselves in any manner not prohibited by law or by ordinance; and WHEREAS, Chapter 127, Section 741, e__t seq., Illinois Revised Statutes, entitled the "Intergovernmental Cooperation Act," authorizes public agencies to exercise any power or powers, privileges or authority which may be exercised by such public agency individually to be exercised and enjoyed jointly with any other public agency in the State of Illinois; and WHEREAS, Section 746 of the Intergovernmental Cooperation Act, in furtherance of the provisions contained within Article VII, Section 10 of the Constitution, authorizes an intergovernmental contract which, among other undertakings, allows public agencies to jointly self-insure and authorizes each public agency member of the contract to utilize its funds to protect, wholly or partially, itself or any public agency member of the contract against liability or loss in the designated insurable area; and WHEREAS, the Local Governmental and Governmental Employees Tort Immunity Act, Chapter 85, Sections 1-101 through 9-107, of the Illinois Revised Statutes (the "Act") authorizes multi-year contracts for joint self~insurance and allows self- insured governments to assert a range of immunities; and WHEREAS, pursuant to the above laws, a number of Illinois municipalities (the "Members") have created the High- Level Excess Liability Pool (the "Agency") as a joint self- insurance pool for the purpose of seeking the prevention or lessening of liability claims for injuries to persons or property or claims for errors and omissions made against the Members and other parties included within the scope of coverage of the Agency, which scope of coverage may be amended from time to time; and W~EREAS, the Agency was established as of April 1, 1987 under and operates pursuant to an agreement entitled "Contract and By-Laws -- ~igh-Level Excess Liability Pool" (the "Contract and By-Laws") and a "Memorandum of Coverage," bearing the retroactive date of April 1, 1987, as amended from time to time (the "Memorandum of Coverage"); and WIqEREAS, the Agency and the Members have determined to increase the amount of coverage specified in Article VIII of the Contract and By-Laws, to be backed by a joint self-insurance reserve fund initially financed from proceeds of bonds to be issued by the Village of Elk Grove Village, Illinois (the "Elk Grove Village"), as initial host member; and W~EREAS, Elk Grove Village has issued $5,000,000 General Obligation Bonds, Series 1987 (the "Initial Bonds") to provide the initial funding for such joint self-insurance reserve fund; and W~EREAS, it is possible from' time to time that the Agency, one or more .of the Membersf or some other entity may issue additional bonds to replenish or provide further funding for'the joint self-insurance reserve fund; and WHEREAS, the additional bonds and the initial bonds are herein collectively referred to as' the "Bonds"; and WHEREAS, this municipality has bee~ asked to enter into an Intergovernmental Agreement Providing for the Payment of Debt Service (the "Agreement") dated as of March 1, 1988, among the Agency, Elk Grove Village and the other Members of the Agency; and WHEREAS, the purpose of the Agreement is to provide in more detail the manner in which each Member shall be obligated to pay its proportionate share of the retirement or repayment of the Bonds and the interest thereon; and WHEREAS, the Corporate Authorities of this municipality have further determined that the funding of the joint self- insurance reserve fund provided for under the Agreement is essential to the preservation and fostering of the health, safety and property rights of the citizens of this municipality; and W~EREAS, the cost of funding such reserve fund has been determined by Corporate Authorities of this municipality to be more than offset by the anticipated benefits and economies to be realized by the pooling of risks and losses pursuant to the Contract and By-Laws and the Agreement; and -2- WHEREAS, Sections 9-105 and 9-107 of the creation of reasonable reserves which may joint self-insurance entity; and the Act authorize be utilized by a WHEREAS, it is a matter for the Corporate Authorities of this municipality to determine the amount of reasonable reserves which each Member should contribute to provide for proper joint self-insurance coverage; and WHEREAS, the Corporate Authorities of this municipality have heretofore determined and do hereby confirm that, in view of the foregoing facts and circumstances, the amounts to be required hereunder are reasonable and advantageous and to the public benefit of the citizens of this municipality~ and W~EREAS, the Corporate Authorities have reviewed the Agreement and find that the repayment of the Bonds and the obligations imposed upon this municipality under the Agreement are in accordance with the philosophy and public policy objectives of this municipality; and WHEREAS, the Corporate Authorities of this municipality' find that it is in the best interests of its citizens that it execute and deliver the Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE Board of Trustees OF THE Village OF Mount Prospec~ Cook COUNTY~ ILLINOIS, as follows: SECTION 1. That the form, .terms and provisions of the Intergovernmental Agreement Providing for the Payment of Debt Service in substantially the form submitted to this meeting are hereby approved, and the [President of the Board of Trustees/ Mayor] is hereby authorized and directed to execute and deliver said Agreement with such changes therein as shall be approved by the [President of the Board of Trustees/Mayor]t the execution of such document by the [President of the Board of Trustees/Mayor] to constitute conclusive evidence of such approval, and the [Village/City] Clerk is hereby authorized and directed to affix to said Agreement the official seal of this municipality° SECTION 2. That the Corporate Authorities of this municipality hereby ratify and confirm and agree to be bound by the provisions of the Contract and By-Laws. SECTION 3. That the [President of the Board of Trustees/ Mayor] and [Village/City] Clerk are hereby empowered and d~rected to execute and deliver all documents and other instruments necessary to further the intent and purpose of this Ordinance. -3- SECTION 4. That it is the intention of the Corporate Authorities of this municipality that this Ordinance shall bind future members of the Corporate Authorities of this municipality and shall remain in effect for the full term provided therein. It is further understood that the Members shall have no right to terminate, cancel or rescind the Intergovernmental Agreement Providing for the Payment of Debt Servicer no right to withhold from the Agency payments due or to become due under said Agreement, no r'ight to recover from the Agency amounts previously paid under said Agreement unless paid in error or contrary to the provisions of said Agreement or law, no right of reduction or set-off against the amounts due or to become due uqder said Agreement~ to the Agency, and no lien on any amounts in any fund established by the Agency for any reason or on account of the existence or occurrence of any event, condition or contingency, whether foreseen or unforeseen or foreseeable or unforeseeable by the Members or the Agency or any other person; it being the intent of said Agreement that the Members shall be absolutely and unconditionally obligated to make all payments thereunder. SECTION 5. That this Ordinance shall be in full force and effect from and after its passage and approval as provided by law.. PASSED this 2nd day of Februar~ 1988o AYES: Arthur, Farley, Floros, Van ~eem, Wattenberg NAYS: None ABSENT: Murauskis APPROVED this 2nd day O~ebruar¥ , 1988. - [Village/Cit~] Clerk [P of the Board of Trustees/Mayor ] -4-