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HomeMy WebLinkAbout92-9-4814I CITY OF PADUCAH, KENTUCKY ORDINANCE NO. 92-9-4814 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, 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" (the "INTERLOCAL AGREEMENT") UNDER WHICH THE PROGRAM WILL BE ORGANIZED AND FINANCED; AUTHORIZING THE ISSUANCE OF REVENUE BONDS UNDER THE TERMS AND CONDITIONS SET FORTH IN THE INTERLOCAL AGREEMENT. WHEREAS, the City of Paducah has experienced and is likely to continue to experience drastically rising insurance costs and the increasing unavailability of traditional insurance coverages and the elected officials of the City of Paducah are desirous of finding a stable, long-term solution to this problem; and WHEREAS, the City of Paducah is authorized by various sections of the Kentucky Revised Statutes to expend public funds ., ,� to insure its public properties and its officers and employees against various public liability and property damage risks; and WHEREAS, the City of Paducah is authorized by various sections of the Kentucky Revised Statutes to join together with other public agencies for the purpose of self-insuring various public liability and property damage risks and investing public funds; and WHEREAS, the Kentucky Interlocal Cooperation Act (the "Act"), KRS 65.210 to 65.300, inclusive, authorizes the City of Paducah 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 the and the other public agencies which are parties to an interlocal cooperation agreement to create a "separate legal or administrative entity," which may be delegated power for conducting and administering the joint and cooperative City of Paducah and the other public agencies; and WHEREAS, the Act further authorizes the City of Paducah and the other public agencies which are parties to an interlocal cooperation agreement to create a "separate legal or administrative entity," which may be delegated power for conducting and administering the joint and cooperative 590 undertaking for and on behalf of the participating public agencies; and WHEREAS, the elected officials of the City of Paducah have determined that it would be in the best interests and welfare of the citizens of the City and to the advantage of the �.° City in performing its public and governmental functions to join with various cities, urban -county governments and other public agencies of the Commonwealth of Kentucky for the purpose of undertaking joint and cooperative action to create and establish the KENTUCKY MUNICIPAL RISK MANAGEMENT ASSOCIATION (the "Association") as a separate legal and administrative entity and through the Association to create and administer various self- insurance, insurance and investment trusts in order to provide self-insurance and/or third -party insurance coverages against certain public liability and property damage risks, including, but not limited to, general, professional and auto liability and related claims; to provide self-insurance coverage against workers' compensation and unemployment compensation liability; to provide life, health and health-related insurance coverage and to invest public funds; and WHEREAS, the City of Paducah has been provided a copy of the INTERLOCAL COOPERATION AGREEMENT TO ESTABLISH THE KENTUCKY MUNICIPAL RISK MANAGEMENT ASSOCIATION (the "Interlocal Agreement") and a copy of the Articles of Association and By -Laws of the Association and has reviewed said documents and found them to be acceptable. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1: The City of Paducah hereby approves the joint and cooperative program for self-insurance, insurance and the investment of public funds among the City of Paducah and the other cities, urban -county governments and public agencies within the Commonwealth of Kentucky which become signatories to the Interlocal Agreement, including the financing of said program -2- 591 through the issuance of revenue bonds under the terms and conditions of the Interlocal Agreement. Section 2: The Mayor and the City Clerk of the City of Paducah are hereby authorized and directed to execute, acknowledge and deliver, on behalf of the City of Paducah, the Interlocal Agreement, substantially in the form attached hereto. Section 3: The City of Paducah hereby approves and ratifies the Articles of Association and By -Laws of the Association, substantially in the form attached hereto as Exhibit A to the Interlocal Agreement. Section 4• It is understood by the City of Paducah that by executing the Interlocal Agreement and thereby becoming a member of the Association, 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 prior to becoming a "participating member" in any of the self-insurance, insurance or investment trusts which may be created by the Association. Section 5: The effectiveness of this ordinance is expressly conditioned upon the final approval of the Interlocal Agreement, substantially in the form attached hereto, by the Attorney General of the Commonwealth of Kentucky, as required by KRS 65.260(2), and by any other officer or agency of the Commonwealth of Kentucky, as may be required by KRS 65.300. Section 6: Subject to the limitation set forth in Section 5 above, this ordinance shall be in full force and effect upon its passage and approval. GERRY B. MONTGOMERY Mayor Introduced by the Board of Commissioners July 28, 1992 i Adopted by the Board of Commissioner August 11, 1992 Recorded by Lenita Smith, City Clerk, August 11, 1992 Published by The Paducah Sun August 17, 1992 -3- ",-.i, r . 1 . 1, ,_ ..— 7-- -. rrn--nr�rr�,y_ .r_ r1 _. — n_. rrT.,..._,... —11,.- , r ....:-