Wilmette Park District
Minutes of Special Meeting of the
Board of Park Commissioners
Monday, September 15, 2014
6:30 p.m. – Village Hall Council Chambers

Attendees Present

Commissioners: President James Crowley; John Olvany, Gary Benz, James Brault, Shelley Shelly, Bryan Abbott and Amy Wolfe

Secretary/Executive Director Stephen Wilson
Superintendents: Ken Eppelheimer and Bill Lambrecht
Executive Administrative Assistant Cindy Felicicchia

Attendees Absent

None

I. Meeting  Called to Order

The meeting was called to order at 6:30 p.m.

A. Roll call taken

II. Communications and Correspondence

None

III. Recognition of Visitors

Charlene Holtz, Tressler LLP, Attorney for Wilmette Park District
Mike Zimmermann, Tressler LLP, Attorney for Village of Wilmette
Mike Braiman, Assistant Village Manager

IV. New Business

A. Resolution 2014-R-8

Commissioner Crowley moved and Commissioner Benz seconded a motion to approve Resolution approving the form, terms and provisions of an intergovernmental agreement between the Wilmette Park District and the Village of Wilmette for construction, operation and maintenance of an underground sanitary sewer reservoir and certain ancillary improvements in West Park, and authorizing its execution on behalf of the Park District.

Attorney for the District, Charlene Holtz stated that at a prior meeting at which this matter was discussed the Board adopted a motion approving the prior draft of the agreement subject to nonmaterial modifications. The Village informed the District that their risk pooling organization IMRA does not provide commercial pollution coverage for its members. The District had required as part of their requirements, that the Village name the District as an additional insured on its insurance policies. The Village feels that the cost of acquiring a stand-alone commercial policy would be cost prohibitive compared to the degree of risk associated with this particular facility. The Village requested that the District rely on the extensive indemnification provision that was contained in the agreement. Attorney Holz did not feel that making this decision was nonmaterial to eliminate the insurance. She stated that in the latest redlined version the District has requested the Village to “beef up” their indemnification language. Accordingly to Illinois law you cannot indemnify someone for their own negligence. She stated that with the “beefed up” language it is clear that it is the intent of the Village that it is extending very broad indemnification to the District. She stated the only thing not covered by the indemnification would be the intentional misconduct.

Attorney Holtz stated the other changes to the agreement are basically nonmaterial, mostly cleanup and clarification items. She stated the main purpose of this meeting is for the Board to approve the revised draft agreement with the substitution of very extensive and broad indemnification language in lieu of requiring pollution insurance coverage. The contractor will have to provide pollution coverage.

Commissioner Crowley opened up conversations with any questions the Commissioners may have with clarification. Commissioner Olvany questioned the cost for this type of insurance. Attorney for the Village Mike Zimmermann, stated it was north of $25,000 a year to carry this insurance. He stated it was IRMA’s advice that it was an unreasonable amount of money to pay for the coverage to fill the small hole of coverage. Assistant Manager for the Village Mike Braiman stated that the Village is still taking on that risk by indemnifying the District. He stated that this is an incredibly remote issue that they are confident is not going to happen. He stated it does not make good business sense to spend over $25,000 a year on something they are confident with not happen. Commissioner Olvany stated he is uncomfortable with the fact that the Village has determined that the market price for that risk is in excess of what the Village is willing to pay. Mike Braiman stated that is correct the Village will not pay that. He stated the Village will still pay for any damages. Commissioner Olvany asked Attorney Holtz if our risk is protected with this agreement. She stated that the risk is protected as much as you can have a risk protected. She feels that the cost of the commercial insurance compared to the risk that we are talking about does not justify the cost. Attorney Zimmermann stated that the Village would have a hard time fighting the all-risk indemnity that has been placed in the agreement. Attorney Holtz assured commissioners that she has added language to be as specific as it can be. Commissioner Abbott asked how big a claim something like this could be. Attorney Holtz stated she approached PDRMA with this question and they stated the limit of coverage would be five million.

By a roll call vote, voting Yes: Commissioners: Benz, Brault, Crowley, Olvany, Abbott, Shelly and Wolfe; voting No: None. Absent: None; motion carried.


V. Adjournment

There being no further business to conduct, the meeting was adjourned at 7:03 p.m.