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ORDINANCE NO. 93-5-4935
AN ORDINANCE APPROVING A JOINT AND COOPERATIVE
PROGRAM FOR SELF-INSURANCE, INSURANCE, AND THE INVESTMENT OF
PUBLIC FUNDS AMONG VARIOUS CITIES, URBAN -COUNTY GOVERNMENTS,
AND OTHER PUBLIC AGENCIES WITHIN THE COMMONWEALTH OF KENTUCKY;
AUTHORIZING THE EXECUTION OF THE "INTERLOCAL COOPERATION
( AGREEMENT TO ESTABLISH THE KENTUCKY MUNICIPAL RISK MANAGEMENT
ASSOCIATION;" APPROVING THE ARTICLES OF ASSOCIATION AND BYLAWS
OF THE KENTUCKY MUNICIPAL RISK MANAGEMENT ASSOCIATION; AND
DECLARING AN EMERGENCY
WHEREAS, Section 82.082 of the Kentucky Revised
Statutes (KRS) authorizes cities to perform any function and
exercise any power within their boundaries that is in
furtherance of public purpose of the city and not inconsistent
with a constitutional provision or statute; and
WHEREAS, cities are authorized by KRS 65.150 to
expend public funds to insure their officers, employees, and
properties against any liability or property damage and to
associate with other public agencies pursuant to the Kentucky
Interlocal Cooperation Act, KRS 65.120 to 65.300, for insurance
purposes; and
WHEREAS, KRS 65.210 to 65.300 authorizes cities to
jointly exercise with other public agencies under an interlocal
cooperation agreement any power or powers, privileges or
authority exercised or capable of exercise by cities, and
further authorizes the parties to an interlocal cooperation
agreement to create an administrative entity which may be
delegated powers for conducting and administering joint and
cooperative undertakings on behalf of the participating public
agencies; and
WHEREAS, the elected officials of this city have
determined that it would be in the best interests of the city
to join with other cities, urban -county governments, and public
agencies for the purpose of taking joint and cooperative action
to create and establish the Kentucky Municipal Risk Management
Association (KMRMA) as a separate administrative entity, and
through KMRMA to create and administer various self-insurance,
insurance, and investment programs to provide self-insurance
,r and third party insurance coverages against all types of
liability and property damage, and to establish programs for
the investment of public funds; and
WHEREAS, the elected officials of this city have been
provided copies of the Interlocal Agreement to Establish the
KMRMA and the Articles of Association and Bylaws of the KMRMA
and have reviewed these documents and found them to be
acceptable.
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121
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF
PADUCAH, KENTUCKY:
SECTION 1. The City hereby approves the joint and
cooperative program for self-insurance, insurance, and the
investment of public funds as set forth in the Interlocal
Agreement to Establish the KMRMA.
SECTION 2. The Mayor and the City Clerk are hereby
authorized and directed to execute the Interlocal Agreement to
Establish the KMRMA on behalf of the City.
SECTION 3. The City hereby approves and ratifies the
Articles of Association and Bylaws of the KMRMA, as amended.
SECTION 4. It is understood by the City that by
executing the Interlocal Agreement to Establish the KMRMA the
City shall incur no liability for the payment of any funds, and
that it shall be necessary for the City to take further action
before becoming a participating member in any of the
self-insurance, insurance, or investment programs which may be
created and operated by KMRMA.
SECTION 5. The City's current workers' compensation
insurance coverage is due to expire on June 30, 1993. Under
the laws of the Commonwealth of Kentucky, the City is required
to maintain workers' compensation insurance coverage on its
employees. It is understood that KMRMA will begin operating a
workers' compensation self-insurance group effective July 11
i
1993, which will enable the City to obtain the necessary
workers' compensation insurance coverage. However, unless the
City acts immediately to enact this ordinance, there will be
insufficient time for the City to take the steps necessary to
become a member of KMRMA and a participant in the workers'
compensation self-insurance group to be operated by KMRMA.
Therefore, an emergency is declared to exist by the legislative
body of the City. This ordinance shall become effective after
its first reading and upon the affirmative vote of two-thirds
(2/3) of the members of the legislative body.
SECTION 6. The City Clerk shall cause this ordinance
to be published in accordance with KRS 83A.060(6) and KRS
Chapter 424 within ten (10) days of its enactment by the
legislative body.
Ma r
Introduced and adopted by the Board of Commissioners May 18,
1993
Recorded by Lenita Smith, City Clerk, May 18, 1993
Published by The Paducah Sun, May 24, 1993
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