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HomeMy WebLinkAboutResolution 2004 (14) RESOLUTION APPROVING AGREEMENT WITH WISCONSIN MUNICIPAL MUTUAL INSURANCE COMPANY FOR BOND REPAYMENT RESOLUTION NO. i q (ooq) St. Croix County, Wisconsin WHEREAS, Wisconsin Municipal Mutual Insurance Company (WMMIC) is an intergovernmental commission and a municipal insurance mutual formed in 1987; and WHEREAS, St. Croix County is a charter member of WMMIC and has been continuously covered by general liability policies issued by WMMIC since 1987; and WHEREAS, WMMIC and named plaintiffs have reached a settlement in a class- action lawsuit, which has been approved by the U.S. District Court for the Western District of Wisconsin, which alleged certain wrongful actions by agents, employees or officials of St. Croix County resulting in damages to the class members in the amount of $6,965,000; and WHEREAS, the general liability policies issued by WMMIC to St. Croix County will cover $4,545,000 of the settlement amount; and WHEREAS, however it is financially advantageous to both St. Croix County and WMMIC to initially fund WMMIC's portion of the settlement amount through a bond sold by St. Croix County, which bond debt service is then paid by WMMIC through periodic payments to St. Croix County; and WHEREAS, a written Settlement Agreement between St. Croix County and WMMIC has been prepared for this purpose and is attached to this resolution. THEREFORE, be it resolved by the St. Croix County Board of Supervisors that the attached Settlement Agreement between St. Croix County and the Wisconsin Municipal Mutual Insurance Company (WMMIC) is hereby approved this 1 day of April, 2004. Reviewed by Corporation Counsel. Cu% f- 0 ti Greg Timmerman Date This resolution was duly adopted by the St. Croix County Board of Supervisors on April 1, 2004. I hereby certify that the attached Settlement Agreement, dated April 1, 2004, is a true and correct copy of the Settlement Agreement referred to in this resolution. e —ettidAACall-d - af 4 prc._e. / d o0LI Cindy Campbell, County Clerk Date SETTLEMENT AGREEMENT This Settlement Agreement is entered into by and between the County of St. Croix, Wisconsin (the "Insured ") and Wisconsin Municipal Mutual Insurance Company (the "Company") as of April 1, 2004. RECITALS The Company is an intergovernmental commission and a municipal insurance mutual created under Wisconsin law. The Insured is a member of the Company and has, during each of the years 1996 through 2001, been covered by general liability policies issued by the Company, and identified as policy numbers WI96CS09, WI97CS09, WI98CS09, WI99CS09, WI2000CS09, and WI2001CS09 (the "Policies "). Coverage under each of the Policies is subject to an aggregate self - insured retention. The Insured, the Company, and certain plaintiffs have reached a settlement in a class - action lawsuit filed in U.S. District Court for the Western District of Wisconsin and designated 02 -C- 0450 -C, which alleged certain wrongful actions by agents, officials or employees of the Insured resulting in damages to the plaintiff class. Under the settlement, the Insured and the Company have agreed to pay a total of $6,965,000 (the "Award ") to the plaintiffs. The Insured intends to issue its bonds (the "Bonds ") in two series to provide funds to pay the Award. One series of the Bonds, in the principal amount of $4,545,000 (the "Taxable Bonds ") will be attributable to the portion of the Award covered by the Policies, and the related costs of issuing the Taxable Bonds. The payments from the Company hereunder are intended to be sufficient to cover the debt service on the Taxable Bonds. The purpose of this agreement is to set forth the terms of the Company's payments under the Policy in respect of the Award. AGREEMENT 1. Coverage of Claims. The Company and the Insured agree that the Award shall be treated as a covered loss under the Policies (and under no other policies issued by the Company) and that the Company's payments as contemplated under this agreement shall constitute full and complete performance of the Company's obligations under the Policies and Wisconsin law relative to the Award and the circumstances and claims giving rise thereto (including, without limitation, any provisions, laws or regulations concerning the prompt payment of claims). 2. Payment of Award. The Insured agrees to pay to the Company, from the net proceeds of the Bonds or other funds of the Insured, for deposit to the Insured's Self- Insured Retention Account, an amount equal to the entire amount of the Award. Provided such payment is made, the Company shall timely pay the Award to the plaintiffs. 001.1570765.6 3. Timing and Amount of Payments. Subject to the credits set forth in Section 4, the Company agrees to pay to the Insured the following amounts on the following dates as full payment of amounts due under the Policies in respect of the Award: Date Amount December 1, 2004 $979,650 December 1, 2005 983,775 December 1, 2006 981,850 December 1, 2007 993,950 December 1, 2008 1,004,850 4. Investment, Credits. The Insured agrees to hold the amount of each December 1 payment until it is applied to the February 1 principal and interest payment and the August 1 interest payment on the Taxable Bonds during the next calendar year. The Insured agrees to invest such amounts in a separate subaccount within the State of Wisconsin investment pool for local governments. The total earnings on such investment shall be a credit against the amount due the following December. The Insured agrees to provide the Company with copies of all periodic statements relating to such subaccount. 5. Negative Pledge. The Company shall at all times maintain a custody account, which is not subject to any lien, encumbrance or restriction, with a balance equal to no less than 105% of the total remaining amount required to be paid under Section 3 above. The Company shall provide the Insured with quarterly account statements for such custody account. 6. Entire Agreement. This agreement, together with the Settlement Agreement in Brecher, et al. v. St. Croix County, et al., Case No. 02 -C- 0450 -C, U.S. District Court for the Western District of Wisconsin, represents the entire agreement between the parties with respect to the claim under the Policies in respect of the Award. All other prior or contemporaneous negotiations, understandings and agreements with respect to the subject matter hereof are superseded and of no further force or effect. 7. No Liability of Members. No member of the Company shall in any way be liable for the performance of the duties and obligations of the Company hereunder. -2- 001.1570765.6 IN WITNESS WHEREOF, the Insured and the Company have caused this Settlement Agreement to be executed and delivered as of the date set forth above. WISCONSIN MUNICIPAL MUTUAL INSURANCE COMPANY By Its COUNTY OF ST. CROIX, W SCONSIN By `t( County Board Chairperson Attest C--C6A(3-- a Clerk -3 001.1570765.6