HomeMy WebLinkAboutMO # 649MUNICIPAL ORDER NO. 649
A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO EXECUTE AN
APPLICATION FOR MEMBERSHIP IN THE KENTUCKY LEAGUE OF CITIES
WORKER'S COMPENSATION TRUST
WHEREAS, the Kentucky League of Cities (KLC) has
established the KLC Workers' Compensation Trust (KLC Trust) for
the purpose of providing its member city governments and their
boards, agencies, and authorities the opportunity to qualify as
members of a self-insurance group, as authorized by KRS
342.350(4), for purposes of compliance with the Kentucky
Workers' Compensation laws; and
WHEREAS, the City of Paducah, Kentucky desires to
participate as a member of the KLC Trust and to insure its
workers' compensation liability cooperatively with other city
governments and city agencies with which it has common
interests; and
WHEREAS, the Kentucky Revised Statutes and the
regulations of the Kentucky Workers' Compensation Board (Board)
require an application and indemnity agreement from each member
of a workers' compensation self-insurance group.
NOW, THEREFORE, BE IT RESOLVED AND AGREED BY THE CITY
j' OF PADUCAH, KENTUCKY:
-' SECTION 1. The City of Paducah, Kentucky, hereby
submits its application to become a member of the KLC Trust,
and if accepted for membership, hereby appoints the Kentucky
Municipal Risk Management Association (KMRMA) Board of Trustees
as its agent in all matters relating to the Kentucky Workers'
Compensation laws.
SECTION 2. The City of Paducah, Kentucky, agrees
that as a member of the KLC Trust it will at all times comply
with the provisions of the Kentucky Workers' Compensation Act,
the rules and regulation of the Kentucky Workers' Compensation
Board, the KMRMA Bylaws, the Declaration of Trust and Trust
Participation Agreement for the KLC Trust, all service
agreements of the KLC Trust, and the decisions of the KMRMA
Board of Trustees for operation of the KLC Trust.
SECTION 3. The City of Paducah, Kentucky,
-T understands and agrees that before the KLC Trust is issued a
certificate to operate as a self-insurance group by the Board,
the KLC Trust shall post either a surety bond or securities
acceptable to the Board in the aggregate sum of two hundred
fifty thousand dollars ($250,000.00) or 5% of normal annual
premium, whichever is higher, to secure the performance of its
obligations to pay any awards which might be made against the
KLC Trust or any member thereof, and to keep the bond or
securities posted as long as may be required by the Board.
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SECTION 4. The City of Paducah, Kentucky, covenants
and agrees that in addition to the collateral mentioned in
Section 3 above, the KLC Trust and its members will jointly and
severally assume and discharge, by payment, any lawful awards
entered by the Board against any member of the KLC Trust, which
awards shall have been sustained by the courts where an appeal
by either party is taken.
SECTION 5. The City of Paducah, Kentucky covenants
and agrees that each member of the KLC Trust will jointly and
severally pay premiums and assessments established by the KMRMA
Board of Trustees, based upon appropriate classifications and
rates, into a designated cash reserve fund out of which lawful
claims and awards shall be paid and, further, covenants and
agrees jointly and severally with other members of the KLC
Trust that there shall be no disbursements from this fund by
way of dividends or distributions of accumulated reserves to
the members, except at the direction of the KMRMA Board of
Trustees.
SECTION 6. The governing body of the City of
Paducah, Kentucky, has approved the submission of this
Application for Membership in the KLC Trust and has authorized
its chief executive officer to execute this Application and
all other documents that may be necessary to effectuate
membership in the KLC Trust, including the Declaration of Trust
and Trust Participation Agreement for the Kentucky League of
Cities Workers' Compensation Trust.
MEMBER: City of PADUCAH, KY
(City of Paducah, Kentucky)
SIGNED: GERRY B. MONTGOMERY
Mayor
DATE: May 25, 1993
--�?711.1i11,v ro,,u, being first duly sworn, upon oath,
state that the facts set forth in the foregoing Application for
Membership in the KLC Trust are true.
Subscribed and sworn to and before me this /Q� day of
1,11A Y, 1993. T
Notary Public
My commission expires
Adopted on call of the roll, yeas, Commissioners Grumley,
Hornsby, Taylor and Mayor Montgomery (4).
This action -was taken by the City of Paducah, May 18, 1993.
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