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Home My WebLink AboutResolutions 86-281 N.C.S. 10/06/1986~~` I ~Zesolution No. ~-281 N.C.S. of the City of Petaluma, California A DEFERRED PREMIUM PLAN FOR WORKERS' COMPENSATION INSURANCE AUTHORIZING EXECUTION OF A PROMISSORY NOTE AND MEMORANDUM OF .AGREEMENT WHEREAS, the City of Petaluma purchases Workers' Compensation Insurance coverage from the State Compensation Insurance Fund; and, WHEREAS, administrative regulations allow local agencies to participate in Deferred Premium Collection Plans;. and, WHEREAS, participation by the City would result in cash flow savings to the City of Petaluma; NOW, THEREFORE, BE IT RESOLVED that the Mayor or City Manager is hereby authorized to issue a Deferred Premium Collection Plan Replacement Promissory Note for Workers' Compensation and enter into a Memorandum of Agreement in the form attached hereto as Exhibit "A" , for the policy period July 1, 1985 to July 1, 1986; and, BE IT FURTHER RESOLVED that State Compensation Insurance Fund is hereby named the beneficiary of the note and pledges revenues, namely Franchise Taxes Revenue and Property Transfer Tax Revenue, in the amount of $295,455 plus interest thereon, per terms of the note. JAB Under the and authority conferred 4hic (!nnnril by +hn (!hartar of caul REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approv-as?ai Council of the City of Petaluma at a (Regular) ~ ~ meeting //~O~ on the .......6th----...... day of ...................OCtOb2T:....................., 19.$6., by the ~.~ following vote: - ----------•-•----~ City Attorney AYES: DAVIS, SOBEL, WOOLSEY, CAVANAC~i, BALSHAW, VICE MAYOR TIIVCER, MAYOR MATTEI NOES: ABSENT: ATTEST: ---... ..... ... .. .. . •- --•--........ :...............-............ City Clerk .r i , ..---•---• ..... .......... .......... r .... ... - -----•---..-...... Mayor (buncil Fil ...... ... . 8 -~~i.......... CA 10-85 Res. No .............. N.C.S. PUBLIC AGENCY DEFERRED PREMIUM CQLLEC,T,I'ON PLAN REPLACEMENT PROMISSORY NOTE 198.5 (po l 'cy year $295,455 (p ace of making SECTION ONE TERMS OF NOTE .For value rece,.ve_d,'City of Petaluma of P.O. Box 6'1, City of Petaluma,.County of Sonoma, State of California, herein referred to as maker, promises to 'pay to the order of State Compens°aton Insurance Fund,. herein referred to as payee, at 1275 Market .Street, City of San Fr'an'cisco, County of San Francisco, State of California, on July 1, 1987, or at the time o;f dividend* calculation for the ,policyholder as provided for in the State Fund authorized dividend plan, whichever occurs first, the principal sum of Two Hundred Ninety-Five Thousand Four Hundred Fifty Five Dollars ($295,455) with int:eresa 'from July 1, 1985, at the rate of Egfit percent (8$),per year, payment to be made in one =lump sum. COMPENSATIOf~I, y = INSURANCE" ; 1275 MFIRKET STREET SAN FRANCISCO, CALIFORNIA 941`,03 SCLF 10099 (NE,W 1,0-77) ~ OLD U; 99 City of Petal:uma RE': Memorandum o'f Agreeme.nt Page 2 of: 2 ' General definitions. of ;selected terms, "used in the plan, promissory note a,nd memorandum of agre:eme-n:t are found in Special Rule V of the California Manual bf Rules, Classifications a`nd Basic Rates for Workers' Compensation Insurance. S'~'' atur.e of; Pol cyholder V n,, Titl. l ~~--~:~- Date of S,igna,ture State Compensation Imsuramce .Fund Underwriting/Marketing Mgr. Tit'Te Date of. S ig;nature 1/'85/V COM;PENSATFON ,~ INSURA-NCE 1275~MARKET STREET SAN FRANCISCO, CALIFORNIA 94I03 ' ,SCI,F 1009,9 (NEW 30=77) CHI ~ I OLD U; 99' ~~ C y of Petaluma. RE: Def:er.r:ed. Premium Co ecton P'la:n Page, 2 of ;3 S',E CT I ON. °TW,O . RECITAL OF' ~CONSIDERAT.ION This instrument is issued pursuant to the terms of the workers' compensation 'insurance con.tracrt policy #28061-85 and memorandums of agreemena entered into on,.S_eptember 18, 1985 and 19 , between 'the.m'aker and payee of this: instrument. SECTION THREE COLLATERAL Maker is furnishing'co lateral security, for the ndebtedne s evidenced by t°h is Note: by Resolution of the City of Petaluma Gove~rn:.ng Board .guava tee°.ng payment. The prncipa-1 and ~i:nterest earned on this Note are due .and payable in cash on demand if this Note ceases to be fully secured. SECTION FOUR WAIVER. OF PRESENTMENT, PROTEST, A,ND NOTICE OF DISHONOR Each maker and each endorser of this Note .waives P presentment., pr-otest, and no-tire of dishonor and any other notice that may be required. - . - COPAP:EPISATLON I N S,U R A N C E 4275 MARKET STREET SAN FRANCISCO, CA LIFORNI'A 94103. :S.CIF 40099 (NEW 1'0=7.7), ~.~~-.~., u ;~ H kl _ OLD'U; 99! City of .Petaluma RE: Deferred .Premium Collection Plan. Page 3 of 3 SECTION. FTVEi CHOICE OF LAWS -This `Note 'sfiall be governed by and construed in accordance with laws of the State of California in all respects, including matters of construction, validity, and performance. SECTION SIX ACKNOWLEDGMENT- OF RECEIPT OF NOTE Maker acknowledges receipt of a true copy of this Note and certifies that all blank spaces herein were completed and filled in before it was signed. °Under California law it is unlawful for an insurer to promise the future payment of dividends undex an unexpired workers' com,pensat°ion policy or to mis°represent the conditions for dividend payment. Dividends are payable only pursuant to~,condit;ions de ermined by~the Board of Directors or other Governing Board of the company following policy expiration. It is.a misdemeanor for any i.nsu_rer or officer or agent tYie:reof, or any insuurance broker or solicitor, to ,promise the ,payment of future workers' compensation dividends. 'Past dividend performance is no, guarantee of an usurer's future d'ivi-lend performan.ce.. A signature of maker ~V Titles- ¢l- D~ 1 ,19U(f (da, e of signature ) 1/85 V COMPENSATION 1275 MARKET STR I M S U R A 1~I,C E EET SAN FRANCISCO, CA LIFORNhA 941A3 ~fl~ g $CIF 1-009.9 (NEW 10-77) ~ OLD: U 99 Public Agency D_ eferred Premium Co--laect~on Plan Memos"and:um .of Agreement fihe State ;Compensation Insurance Fund doe hereby agree. with City °of P,e>tal-uma,:, the .undersigned pol cyho'lder, that In co;nsid`"eration~of the receip of a promissory note, colaateralized by a Resolution of the "C'i,t,y of Petaluma Governing Board guaranteeing payment in `the amount of Two .H.undred Ninety-Five Thousand Four Hundred Fifty- F`ive Dollars ('.$,2;95,, 455,) at Eight pe-scent (8 ), interest . . per annum,: we have extended a, deferred premium colleet~ion p'lan~for your workers' compensation insurance, policy :period July 1, 19'85 to July 1, 1986. The plan includes the;. folTow,ng' elements: - The e~leme'nts. of the plan as stated in thi ~ Memorandum of Agreement are presented in conjunction with those eleinen:ts of the plan previously 's;ta:ted in the Memorandum of Agreeme t dated September 18, :1985. - The interest ear°rted during the policy period is due anal payable in cash at t:he: time of the final audit but in no c-ase more than one Yiund'red fifty (15,0:) days after policy expiration. The'"nte;rest earned after the exprat-ion date of the policy is due a;nd pa'yab-le in cash no later than sixty ",(60) days of er the last day .of ~ the month in which the prommissory note. matures. - A replacement instrument of collater:aliz~at-ion must be delivered to St°aae :Fund at least t'hrt,y (30) days prior to th'e expiration of the. exs ing ins-trument of collater'alization. If this condition is" not met, State Fund may demand pa:y"menu in. cash of ,all principal and interest earned. The interest .fo•r each ;period 'followi.ng the expiration of the policy during which the prem=um owed: and the rate of. int'e~re;st.ap'.plicable remain unchanged shall be the product of the applicable .r.aae of interest, 'the premium owed, and T; where. 'T _ the number of days' during which the premium owed arid. the rate of inter.e t ap.pl:cab.le remained un°changed, divided by three ,hundred' and sixty-five (3"65) . - 'The ob:l;g.at'ion to uncond,i.tional and unlawful collect ,interest" in any repre entaton cash is to the contrary is CNSURANICE 1275 MARKET STREET SAN FRANCISCO, GALIFO;RNIA 94103 SCIF 1'0099; (NEW 10=Z7) OLD. U, 99