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Home My WebLink AboutResolutions 85-318 N.C.S. 09/30/1985- ~~~ Resolution No.85-3T8 N. C. S. • of the City of Petaluma, California A DEFERRED PREMIUM PLAN FOR WORKERS' COMPENSATION INSURANCE AUTHORTZING EXECUTION OF A PROMTSSORY NO.TE 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 Plaris; arid, WHEREAS, participation by. the City w.ould 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 Defer~red 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 l, 1984 to July 1, 1985; and, BE IT FURTHER RES.OLVED 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 $305,315 plus interest thereon, per terms of the note. f i ~` l ,` .1ir "' ' ~ ~,~ JAB Under the power and authority conferred upon this Council by the Charter of said City. I hereby certify the foiegoing, Resolution was intioduced and adopted by the Approved as to Council of the City of Petaluma at a(Regular) (Adjourned) ~8~~meeting form on the _......._:3_~th... day of ...........Se~tember ...... i9..85, by the --.... ...•••--•• .....:......... . following vote: .. :. . ••-••-•• .......:.. .:.. . .....•--••--•-• Ci At rney AYES: Bond, Davis, Woolsey, Tencer, Vice Mayor Balshaw, Mayor tei NOES: None ABS~NT: Cava a %~ ATT~ST: •-,••-••... . _, ... _.~ ~ . ..:. --•..........-•-•--•••-._.. .......:........... '..:....._ ....:: . . .................. . _ •„--°- ••-••• -- -. ...............••-•-•--• City'Clerk Mayor ' Council File.._ ....................:........... Foim CA.2' 7/81 . Res. No...........~.~ -.~.~.:~ N. C. S'. , PUBLIC AGENCY DEFERRE`D PREMIUM COLLECT,ION PLAN REPLACEMENT FROMiSS'ORY NOTE 1984 (,policy year) $305,315 (place of making). S.ECTTON ONE TERMS OF NOTE For value received, City ,of Petal.uma of P.O. Box 61, City of Petaluma, County of Sonoma, State of California, herein referred to as maker, promises to pay to the order of State Compensation Insurance Fund, herein referred to as payee, at 127'5 Market Street, Ci~ty of San Francisco, County of .San Francisco, State of California, on July 1, 1986, or -~ at the time of dividend* calculation for the policyholder as. ~provided for in the`State Fund authorized dividend plan, whichever occurs first, the principal sum of Three Hundred Five Thousand Three Hundred Fifteen Dollars ($305,315) with interest from July 1, 1984, at the.rate of Ten percerit (10~.) per year, payment to be made in one lump sum. ~~~~~ ~NSURAN'CE ~.~~D ° 1275 MARKET'STREET •'SAN FRANCISCO, CALIFORNIA 94T03 SGIF'10099 (NEW 1-0r77) ~ OLD U 99 Cit,y of Pe•taluma RE: D"eferred Premium Collection P~lan Page 2 of 3 SECTION TWO RECITAL OF CONSIDERATION This instrume'nt is issued pursua:nt to the terms of the workers' compensation insurance contract policy #28061-84 and memorandums of agreement entered into on June 4, 1984 and , 19 , between the maker and payee of this instrument. S~ECTI~~ON THREE COLLATERAL Maker is furnis'hing collateral security for the indebtedness evidenced by this Note by.Resolution of the City of Petaluma Governing Board guaranteeing payment. The principal a~nd interest earned on this Note are due and payable ir~ cash on dema,nd if this Note ceases to be fully secured. SECTION FOUR WAIV°ER OF PRESENTMENT', PROTEST, AND NOTICE OF DISHONOR Each maker and eaeh endorser of this Note waives presentment, protest, and notice of dishonor and any other notice that may be requi:red. ~" , G,OPViPENS;ATION INSUFtANCE F275,MA'RKETSTREET • SAN FRANGISCO, CALIFORNIA 94103 SCIF 10099 (NEW, 10-77) ~ OLD U 99 City of Petaluma RE.: Deferred Premium Collection Plan Page 3 of 3 SE'.CTION FIVE CHO.ICE OF LAWS This Note shall be gover.ned by and construed in accordance with laws of the State of Califor:nia in all respects, including matters of eonstru.ction, validity, and performance. SECTION SIX ACKNOWLEDGMENT' OF RE'CEIPT OF NOTE Maker acknowledges rece,ipt of a true copy of this Note and ce'rtifies that all bla;nk space`s he.rein were completed and filled in before it was signed. *Under California law.it is unlawful for an insurer to promise the fu`ture payment of dividends under an unexpired workers' compensation policy or to misre:present the e.onditions for dividend paymerit. D;ivide:nds are payable only pursuant to comditions dete;rmined by the Board of Directors . or other Governing Board of "t-he company followi:ng policy expiration. It :is a misdemeanor for any insurer or officer. or agent thereo:f, or any insurance broke:r or solicitor, to promi."se the payment of f;uture workers' compensation d'ividends. Past dividend performance is no guarantee of an ~ insurer's future dividend performance,. (signature of maker) Title ,19 date of signature) 1/85 V • CO~APEPVSAT~I.ON ~• 1 N SURi4NCE ~ 1275 MARKET STREET • SAN FRANCISCO, CALIFORNIQ 94103 SCIF 10099 (NEW'1'Or77): ~ OLD U 99 ~ Pu:blic Ageney Defer-red~Premium C'olleetion Plan .Memorandum of Agreement The State Compensation ,Insuranee Fund does here.by agree with City of Petaluma the unders'igned .policyholder, that: In consider:ation of the receipt "of a' promissory note., collatera,li,zed by a Resoluti,ori of the C~ity of 'Petaluma Governing Board guaran.teeirig payment ,in "the amo.unt of Three Hu;ndred' Five Thousand Three Hundred Fiftee:n Dollars ($305~, 315 ) a~t Ten percent (,10 0) iri.terest per annum, ~we have e'xtended a defe~rred premium col.lection plan for your workers' compensa.tion insurance, policy period` JuTy 1:, 1984 to July 1, 19-85. The plan includes the following elementss - The elements of the plan as sta,ted in this Memorandum of Agreement are pr'esent'ed in conjunction with those elements of the plan prev-,iously stated in the Memorandum of Agreement dated June 4, 1984. - T:he interest ea"rned' during, the policy period is due and payable in cash: at the time of the firial au:dit but in no case more than 'one hun.d"red f~ifty ~( 150`) da:p.s after ,policy expiration. The intere;s:t earned after the expi:rati.on date of the policy is due and payable in cash no later than sixty (60) day,s after. the last day of the month in which the promis;sory note mature;s. ~ - A replacement instrument of ~ collateralizat-ion must be delivered to State Fund :at least thirty°(30) days prior to the expirat.ion of the existing ins'tr-ument of eoT.lateraliza`tion. If th~is eondi'tion is not met, State Fund may demand payme~nt in cash of all pri,ncipal and interest earned; . The interest fo:r ea•ch,,period following the expiration of the policy during wh~ich the:premium owed and the ra:te of interest appl;i_c.a'ble rema°in unchanged shall be the product o.f; the; applicable rate. of inter.'e,st, the premi~um owed, and T;; where T= the number of days du_ring-wh-i.ch the premium owed and the rate of inte.rest appl:icable remained unchanged, divided by thr:ee hundred a,nd sixty-five (365). - The ob:liga'tion to colle:ct in,terest in cas'h 'is ~ un condit:ional and any repr.eseritation ~o the eontrary is unlawful. ~ ~ COMPENS'ATION ,~ I NSURAIVCE , 1275:MARKET STREET • SAN FRANCISCO, CALIFO'RNI'P, 94103 SCIF 10099'(NEW 10-7,;7,) ~ OLD U 99 City of Petaluma RE: Memorandum of Agreement Page 2 of 2 General definitions of selected terms used in the plan, promissory note and memorandum of agreement are found in Special Rule V of the California Manual of Rules, Classifications and Basic Rates for Worke.rs' Compensation Insurance. Signature of Policyholder Title State Compensation Insurance Fund Underwriting/Marketing Mgr. Title Date of S ignature ~ , ~, ~ t ~ ~ , j ~t ~~ ' •r, ~ ~ ~ . t , "~~ '~ ~ . ; . , `i ~~ , Date of S ignature 1/85/V ~~~~~ CNSURAN'CE ~~~ D 1275 MARKET STREET • SAN FRANCISCO, CALIFORNPA 94103 SCIF 10099 (NEW 10-77) ~ OLD U 99