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HomeMy WebLinkAbout2011-12-7887ORDINANCE 2011-12-7887 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY OF PADUCAH, KENTUCKY, TO ENTER INTO AND SATISFY A STIPULATED JUDGMENT IN BARRY CARTER, ET AL. v. THE CITY OF PADUCAH, KENTUCKY, McCRACKEN CIRCUIT COURT CIVIL ACTION # 06 -CI -00072 IN THE AGGREGATE SUM OF $1,280,742.64 WHEREAS, on January 26, 2006, certain current and former firefighters of the City of Paducah, Kentucky filed a lawsuit for unpaid wages against the City of Paducah, Kentucky, which lawsuit was styled Barry Carter et. al. v. City of Paducah, Kentucky, McCracken Circuit Court Civil Action #06 -CI -00072; and WHEREAS, the legal liability of the City of Paducah, Kentucky for the damages claimed by the plaintiffs was established by the McCracken Circuit Court's rulings contained in a Memorandum and Order entered on April 7, 2011 and a Memorandum and Order entered on September 19, 2011. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY THAT: SECTION 1. Approval and Authorization for Stipulated Judgment. The City of Paducah, Kentucky, hereby authorizes its legal counsel to enter into a stipulated judgment against the City of Paducah, Kentucky in Barry Carter, et al. v. City of Paducah, Kentucky, McCracken Circuit Court Civil Action #06 -CI -00072 in the aggregate sum of $1,280,742.64, which sum is comprised of $ 805,188.19 in back wages and $ 475,554.45 in interest. The stipulated judgment shall be in a form substantially similar to the form attached hereto as Exhibit `A.' SECTION 2. Approval and Authorization for Satisfaction of Stipulated Judgment. Once the stipulated judgment described in Section 1 hereof is entered by the McCracken Circuit Court, the City's Finance Director is hereby authorized and directed to expend funds to satisfy the stipulated judgment in full for the aggregate amount of $1,280,742.64. SECTION 3. Approval and Authorization for Pension Contributions. Once the stipulated judgment described in Section 1 hereof is entered by the McCracken Circuit Court, the City's Finance Director is hereby authorized and directed to expend funds required for pension contributions due on account of the additional wages paid under the stipulated judgment described in Section 1 hereof, in the approximate amount of $173,000.00. SECTION 4. Approval and Authorization for Medicare Contributions. Once the stipulated judgment described in Section 1 hereof is entered by the McCracken Circuit Court, the Finance Director is further authorized and directed to make any necessary contributions for Medicare required under the law due on account of the additional wages paid under the stipulated judgment described in Section 1 hereof, in the approximate amount of $12,000.00. SECTION 5. Approval and Authorization for Unemployment and Workers Compensation Contributions. Once the stipulated judgment described in Section 1 hereof is 1 1 1 1 1- 1 11 T . -]- - entered by the McCracken Circuit Court, the Finance Director is further authorized and directed to make any necessary contributions for Unemployment and Workers Compensation required under the law due on account of the additional wages paid under the stipulated judgment described in Section 1 hereof, in the approximate amount of $17,000.00. SECTION 6. Approval and Authorization to Transfer Funds from Various Projects, and Funds and Notes. The Finance Director is hereby authorized to transfer $400,000 from Project MR0038, and $550,000 from the General Fund (General Funds' Note Receivable - Loan to Health Insurance Fund), and an amount sufficient to cover the balance of the aforementioned judgments and contributions described in Sections 1 through 5 from the Fleet Trust Fund to the Fire Department budget. SECTION 7. Approval and Authorization to Set up a General Fund Note Pam to Fleet Trust Fund and Establish Terms. The Finance Director is hereby authorized to establish a Note Payable to the Fleet Trust Fund from the General Fund in an amount described in Section 6. The terms of the note shall be as follows: zero (0) percent interest, to be paid back in equal amounts over 5 years starting in Fiscal Year 2013. SECTION 8. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 9. Compliance with Open Meetings Laws. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. SECTION 10. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. SECTION 11. Emergency. Pursuant to KRS 83A.060, the City Commission suspends the requirement of a second reading of this Ordinance. As grounds therefore, the City Commission does hereby declare an emergency to exist as the City's legal liability for the stipulated judgment has been established by the McCracken Circuit Court any delay in the entry and satisfaction of the stipulated judgment described in Section 1 hereof could result in additional interest owed by the City of Paducah, Kentucky, potentially in an amount of 12% per annum. SECTION 12. Effective Date. This Ordinance shall take effect from and after its passage, as provided by law. G ATTEST: 6. gA-6c_�- Tammara S. Brock, City Clerk Introduced and Adopted by the Board of Commissioners, December 13, 2011 Recorded by Tammara S. Brock, City Clerk, December 13, 2011 Published by The Paducah Sun, December 17, 2011 \ord\fire\lawsuit-wages FINAL ORDINANCE APPROVING STIPULATED JUDGMENT (00143145) 3 --,, , � r. -- , _ ..,a- ..., _..,_._ _.