Ordinance 2001-53 October 25, 2001
STATE OF ILLINOIS )
ss
COUNTY OF KENDALL )
ORDINANCE NO. 2001- S3
ORDINANCE AUTHORIZING THE EXECUTION OF THE
IMLRMA MINIMUM/MAXIMUM
CONTRIBUTION AGREEMENT
WHEREAS,the City Council of the UNITED CITY OF YORKVILLE, a member in
good standing of the Illinois Municipal League Risk Management Association and party to the
IMLRMA Intergovernmental Cooperation Contract, has been fully apprised of the IMLRMA
Minimum/Maximum Contribution Agreement which amends and supplements the IMLRMA
Declarations pages dated 12/31/01 to 12/31/02 and all endorsements thereto.
WHEREAS,the City Council of the UNITED CITY OF YORKVILLE finds it to be in
the best interest of the municipality to make its IMLRMA contribution in accordance with the
IMLRMA Minimum/Maximum Contribution Agreement.
BE IT ORDAINED by the City Council of the UNITED CITY OF YORKVILLE:
1. That the execution of the IMLRMA Minimum/Maximum Contribution
Agreement for a one (1) year period beginning 12/31/01 and ending 12/31/02 is hereby
authorized.
2. That the Mayor and the Treasurer are hereby granted authority to execute the
IMLRMA Minimum/Maximum Agreement which amends and supplements the IMLRMA
Declarations pages dated 12/31/01 to 12/31/02 and all endorsements thereto.
3. That this ordinance shall take effect immediately upon its passage and signing by
the mayor and attesting by the City Clerk, as herein provided, this O day of
2001.
I"
PAUL JAMES MARTY MUNNS _
RICHARD STICKA MIKE ANDERSON
VALERIE BURD ROSE SPEARS 1
LARRY KOT �_ JOSEPH BESCO
APPROVED by me, as Mayor of the UNITED CITY OF YORKVILLE, Kendall County,
Illinois, this day of�S» e., , A.D. 2001.
MAYOR
PASSED by the City Council of the UNITED CITY OF YORKVILLE, Kendall County,
Illinois this day of Qom, , A.D. 2001.
Attes _
CI Y CLERK
ord minmax
ILLINOIS MU,— dCIPAL LEAGUE—
Risk Management Association
Kenneth A. Alderson
Managing Director
IMLRMA MINIMUM/MAXIMUM CONTRIBUTION AGREEMENT
This Agreement is entered into this ':�T,_ day of tic,,)u� !, rz�lbetween the Illinois
Municipal League Risk Management Association (IMLRMA), an intergovernmental association
formed pursuant to Article VII, Section 10 of the Illinois Constitution of 1970 and the City/Village of
Yorkville, a member of the IMLRMA. This Agreement amends and supplements the Declarations
Pages dated December 31, 2001 to December 31, 2002 and all endorsements thereto.
1. DEFINITIONS
The following definitions shall apply for purposes of this Agreement:
"Loss Fund" --Those dollars set aside for the payment of claims excluding reinsurance and
excess premiums and administrative costs.
"Minimum Loss Fund" -- 80 percent of those dollars set aside for the payment of claims
excluding reinsurance and excess premiums and administrative costs.
"Maximum Loss Fund" -- 120 percent of those dollars set aside for the payment of claims
excluding reinsurance and excess premiums and administrative costs.
"Paid Claim Dollars" --Those payments made by IMLRMA on claims including defense costs
against the City/Village of Yorkville minus recovery from subrogation,deductible or salvage credited
against those claim payments.
"Minimum Contribution"-- Minimum Loss Fund including reinsurance and excess premiums
and administrative costs.
"Maximum Contribution"--Maximum Loss Fund including reinsurance and excess premiums
and administrative costs.
2. MINIMUM/MAXIMUM CONTRIBUTION BREAKDOWN
The CityNillage of Yorkville hereby agrees to the following schedule of contributions:
Minimum Contribution Maximum Contribution
Reinsurance and Excess
Premiums and Administrative
Costs $28,943 $28,943
Loss Fund @ 80% $67,646 @ 120% $101,468
Contribution $96,589 $130,411
3. Based upon a comparison of paid claim dollars against the Loss Fund, IMLRMA will
determine whether additional contributions beyond the minimum contribution will be required up to
the maximum contribution.
4. For purposes of determining paid claims, IMLRMA will complete a quarterly review of
paid claim dollars.
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I.M.L/RISK MANAGEMENT
500 EAST CAPITOL AVE.
P.O.BOX 5180
SPRINGFIELD,IL 62705
217/525-1220
5. NOTICE
IMLRMA hereby agrees to send, through its agents, written notice when paid claim dollars
are equal to or greater than 60 percent of the Minimum Loss Fund.
IMLRMA agrees, through its agents, to send a second written notice when paid claim dollars
equal or exceed 85 percent of the Minimum Loss Fund.
IMLRMA hereby agrees to send, through its agents, a written letter of impending billing when
paid claim dollars equal or exceed 100 percent of the Minimum Loss Fund.
6. BILLING/PAYMENT -- The parties to this Agreement hereby agree to the following
terms:
When paid claim dollars reach or exceed 100 percent of the Minimum Loss Fund, billing will
be instituted on a yearly basis for those paid claim dollars in excess of the Minimum Loss Fund and
billing will continue on a yearly basis until the Maximum Loss Fund limit is attained or all claims
initiated during the coverage period are closed. Billings will be completed in April of each year for
paid claim dollars through March 31.
The CityNillage of Yorkville hereby agrees to make payment within 30 days of its receipt of
billing.
7. All other definitions, conditions and coverages of the IMLRMA remain the same under
this Agreement, including the handling of all claims.
8. This Agreement is to be interpreted and construed in accordance with the laws of the
State of Illinois.
9. If any one portion or portions of this Agreement is found to be invalid or unenforceable,
the remainder shall remain valid and binding on the parties.
The undersigned hereby affirm that they are duly authorized as agents to bind the parties to
this Agreement.
MayorNillage President Date
i
Treasurer/d6mptroller Date
IMLR , Man g Director Date
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