HomeMy WebLinkAboutResolutions 85-260 N.C.S. 08/05/1985~ Resolution No. 85-26oN. C:, S. AUG 5 1985 1 2
of the City of Petaluma, California
A DEFERRED PREMIUM PLAN FOR WORKERS! COMPENSATION INSURANCE
AUTHORIZING EXECUTION QF A~
PROMISSORX 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 Prem'ium Collection Plans; and,
WHEREAS, par"ticipat'iori by the City would result in cash flow savings
to the City of Petaluma;
NOW, THEREF(ORE, BE IT RESOLVED that the Mayor or City Manager
is hereby authorized to issue a Deferred Premium Collection Plan Promissory
Note for Workers' Cornpensation 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 Compensatiori Insurance Fund is
hereby named the beneficiary of the note and. pledges revenues, namely
Franchise Taxes Revenue, in the amount of $198;000 plus interest thereon,
per terms of the note.
Under the power and auth,ority conferred upon this.Council by tlie Charter of said City.
I. hereby certify the foregoing Resolution was, introducecl and adopted by the roved as to
Council;of• the City of Petaluma at a(Regular) ~.ej~c~q{i~yYS~(~~~~J/f ineeting fo ,
ori the .... ..5.~~....... day of ......._..A1xf~]Li:S:~ .....:...........:..:............ 19'8:5..,- by the
' following vote::; ' • • ' ~ ` ~ ' ~
• ~ ••• ---_ - - - -~------•--•-•-•----•--
' y Attorney
AYES: Bond/Cavanagh/Davis/WoolseyfTencer./V.M' Ba'1'shaw/Mayor attei
NOES; None - ~ ~ ~ , ~
•- Non"
AB.S~NT:,
~ ~ ---~---- ' ' 1 .~
ATTEST: .• --- - - - • • ---•.._ :......••--•••--••-•••.---• .... .. .... ..... _....._...._...... . ...: .
••---,•- ••„-••-• •-•-•-•• . ...................
_ . _ _ ~ ._ __ _ ._._, _ ... _ _ ._ _.
Gity Clerk . niayor
. ;: - co~~i F~~~.....-~8°5~-~-64.•_=iJ . C . S.. _ . ,
Form;CA 2 7/81: -. ; Res. No ...........:.....::.....:...•---• , :
PUBLI'C AGENCY
DEFERRED PREMIUM COLLECTION PLAN.
PROM I S S'.ORY NOT.E
198.5
(.policy yea:z:)
$1;98,000
. (place of',making )
SECTION QNE, .
" TERMS OE NOTE
_. For value xeceived, City of Pet'aluma of ,P.O. Box 6I,
City of Petaluma, Coun-ty of ~Sonoma, State of' Cal;ifornia,.
herein referred to as maker:~, promises to pay to the order. of
State Compensa:tio:n I'nsuran'ce. Furid, herein re:ferred to as
payee, at 1275. Market Street, Gity of San Franc-i;s`co, County
of San Francisco, .S.tate of C,a'1'ifornia, on October 1, 1986,
or at the time of dividerid'* cal;culat.ion for the policyholder
as,provided for in the State. Fund authorized "dividend plan.,
wh,'ic:hever occurs first,, the pri.ncipal suum of .On'e,Hundred
Ninety Eig.ht Thousand Do.lla'rs ($198,D00) with interest from
- Jul,.y 1, 1985., a;t the rate. of E i-ght percent ( 8~.) per year,
payme:nt to be made. "in one 'lump sum.
~ COP~A'PENSATION _
1NSURAN"CE '
1275;MARKET STREE'1' • SAN FRANCISCO, CALIFORNIA 9'4103
SCIF'10099 (NEW;1.0-77) ~ •
OCD U 99
City of P.etaluma
RE: Defer-re`d Premium
C'ollect ion Plan
Pag:e 2 of 3
SEGTION'TWO
RECITAL OF CONSIDERATI'ON
This instzument is is'sued pursuant tb the terms of the
workers' compensation insurance co,ntract policy #28061-85
and memorandum of'agreement entered into on ,
19 , between th:e ,maker and paye:e of this ~instrument.
. .~_~
~~ SECTION THREE '~
COLLP,TERAL - '
Maker is_furnishing collate'ral seeuri~ty .for the
indebtedness evidence:d, by this Note by Resol;ution of the
City of Petaluma Governing Board guaranteei~rig payment.
The princi:gal and in:.terest ea:rned on th'is Note are due
and payable in cash on demand if this Note ceases to be
~fully secured.
SECTION FOUR -
WAIVER OF PRESENTMEN.T, PROTEST, AND NOTICE OF DISHONOR
~ Each maker~ and each endorsex -of~ this Note waives
preseritment, p;rotest, and notice of dishonor and any other
not:iee .that .may be required.
.,~ . ~ CO.MPEPISAT.J,ON .~
I N S U R A N C E
~ 1275 MA'RKET STREET • SAN FRANCISCO, CA'LIFORNIA 94103 ~
SCIF 10099 (NEW:IO-ZZ.)' ~
OLD U 99~ •
City of Petaluma
RE: Deferred Premium
Collect ion Plan
~ Page 3 of 3
SECTION FIVE
CHO:iCE OF LAWS
This Note shall be governed by and construed in
accordance with laws of th.e State of Cal~ifornia in all
respects, including ma°tters of coristruction, vali~dity, and
performance. ~
SECTION SIX .
ACKN:OWLEDGMENT.OF.RECEIPT_OF NOTE
Maker acknowledges. receipt of a tr-ue copy of this Note
~~ and certifies that all bla-nk spaces herein were completed
and filled in bef'ore it was signed.
*Under California law it is unlawful f.or an i.rrsurer to
promise the ~future payment of dividends under an unexpired
workers' compe.ns.ation policy or to misreprese:nt the
conditions for divide.nd payment. Dividend5 are pa.yable only
pursuant to conditio.ns determined by the Boa~rd of Directors
or other Governing: Board of the company fo'llowing policy
expiration. It is a m'isdemeanor for ariy insurer oz officer
, or agent thereof:, or a~ny insurance .broker or solicitor, to
promise the payment of fut.uze workers' compensation
dividends.. Past dividend performance is no guarantee of an
insurer's future dividend performarnce.
s'igna~cure of maker
Title
,19
(date of signature)
1/85 V
' - COfViPEPVSATION
~ INSURANCE •
127;5 MARKETSTREET ~ SAN FRANCISCO, CALIFORNIA 94103 ~
SCIF'10099 (NEW 10-77) ~
OLD U`99
~ Public Agency
Deferred Prem:i,um CoTlection Plan
M•emo ra ndum of Ag r.e:eme mt
The State Compensation I,nsurance•Fund does hereby agree with
City of. Petaluma,, the unders,igned pol.icyholder, that:
In conside,ration of the receipt of-a p~omissory°note,~
col'lateral`ized by a Re>solut,ion of the City o.f' Petaluma
Governing Board guaranteeing pa,yme:nt i-n 'the amount of
Ohe Hundred Nine'ty Ei,ght Thousand Dollars ($198,000) at
Eight.percent (8'0) in.terest: per annum, we will extend a
deferre:d premium collect,ion plan for your workers'
compensation insurance, pol'icy per.iod July 1, 1985 to
July 1, 1986. ~
The plan ineludes the follow`ing elements:
- A minimum of -f-orty `p_ercent ( 40:~) . of 'tYie annual, workers'
compe:ns;ation premium and fo,rty pe.rcent (~4;0$) o:f the
required"deposit ~'p,remium. will :be~ paid' ~during the policy
period. The pa,id, po~rtion of the deposit' pr-em'ium is due .
and payable in- c`ash at policy- in,cept:io`n, The paid
, portion of the ,premium is divi.ded over the policy period.
If a payroll. audit r-e,~eal~s that les:s than~ forty percent
~( 40~ ) of the premium "was;. paid., the balanee„ o`f that amount
will be billed=and will'be.due and pa.yab3e in cash at
-° ~ ~ that time. ~ _
- In the eve;nt tha.t ,payroll audit reve>a:l~s that more .than _
Six.ty pe-rcent (60'~) of the required prem-ium wa's deferred,
the policyholder agrees to make up th:e, ba_lance by signing
an amendment to t~h~e P.zomissor.y Note and Memorandum of ~
Agreeme.nt or by paying the bala-nce 'i,n, cash at the time of
payroll audi,t. _.
- At the opt':ion of t'he p'o~licyholder, S€ate 'Fund will accept
a replacement Note fzom the policy~holde~-'for the premium
owed if s~uch Note is executed thi.r,,ty ( 30) d`ays prior to
the maturity date of the Note it ;replaces. If the
policyholder opts to exeaute a rep"laeement Note, sueh
Note shall'be effective from the matu'rity date o_f the
Note it,replaces,,:ma.ture no more than fourteen (14)
months from that d'a'te and be written. pursuant to the- same
ter-ms as .the Note it replaces.
- The interest earned during the policy period is due and
pa;y<ab'Te in~ cash at t'he time of ~the final audit but in no
c'a_s:e more ~`th`an. .one hundred fifty ( 15`0 ),days a'ft,er poliey
ex,pira.tion.. The interest ear.ned afte;z'the ex.piration
date ,of the, po,liep is due and pay'able i:n cash twelve ( 12 )
months•:after pol.icy expiration but in no case later than
s`ixty (:6~0 ) days .after the last da,y of` the morith in which
ttie p~zomissory note matures.
_. _ ..
CON9PENSATION
I N S U R A N C E
1275 MARKET STREET • SAN FRANCISEO, CALIFORNIA 94303
SGIF'10099'.(NEW'10=7^Z), ~ OLD U 99
City ;o'f Pe,taluma
RE: ;Memorandum of Ag,reement~
Page 2 of 3
-. „ A rep,lacement ins:trument of coTlateral;izat~:ion must be
delive~zed to State Fund at le:ast thirty (30) days prior
to the expiration of the existing, ins:trument of ~ --
colla't,er.al;iz;ation. I,f this condit_iori~ ,is .not met, State
Fund may demand paymen:t in cash of all p;rincipal and
interest earned.:. ~ ~ ~
- interest i:s to .be earned i-rr an amou'nt whi.ch shall be not
less than the sum of t~ie;'in:terest computed. i'n.accordanae
with th'e following,:... ~
~ The inte:res;t> for the pol,iey~.pe:ri~od °s.hal:l.~ be the product ~~
of the appl;%cab.Ie -rate of in.tere~st and the average ~
°prem:ium qwed,, where the.averag.e premium owed shall be
taken as the lesser o:f: the f~ollowi~ng .two am'o,unts:
5Qg of th;e sum of ~the deposi-t 'pzem~ium not col-lecteci
in. cash and t~he la'rgest amo,unt of `prem`ium owed
. during the poTicy.pe:riod, or
The sum of the~ pr'emium~ owed a-t the begi.nning of each
mon:thly pe`riod. ~the policy~ r.emaine.d in force divided
'" .~ by the tot'a:l number of such mon.th;ly periods; and
The inte~rest f:or each period following the expiration -
of the policy dur'ing which th°e prem~ium owed' and the
rate of inter.es:t: applic'a~ble r,emain unchanged shall be
the produ,ct of, the applicab'le r'a.t~:e of~ 'i:n,te.r:est, the
prem=ium -owed•, and, T;; where T= the number, of d~ays-
during which the. pr'emium owed and the rate of interest
applic:ab.le rema.ined~ uncYianged, d.ivided by three hundred
and six;ty-five~ (365).
- The obligat~i:on to collect interes-t in cash is
• unconditi~on.al and a;ny r:epze'sentation to the contrary is
unlawful. ~ .
- Monthl_y payments are as. indi.cated, on t'he a;ttachea .
schedu~le of paymen.ts and are due and payable 10 days
after recei;pt of bill. ~
- In tfie ev;ent of cancellation of this policy prior to .
comp'1•et:i:ng the .po~-licy period, this agreement~.will be null
and yoid;.;. All deferred premium, and any accrued -
interes~t, will be due and payable in cash. on the
effe:ctive date of cancel.lation.
. CON9PENSAT'ION -
I NSURANCE
1275 MARKET STREET • SAN' FRAN,EISCO, CALIFORNI`A 94103 '
SCIF'10099~(NEW 10377)'
~ O LD '.U ;99
Ci ty of; Petaluma .
RE: Memorandum"of Agreeme;nt.
, Page 3^ o:f 3, ~
General definit;ions~. o,f, selected terms used in the plan,
pr.omissory note; a'nd.-memo,randum of agre;emerrt. are found in
Special Rule .V of the Cal,iforni-a' Manu'al 'of Riiles,
Classifications and `Ba,s.ic Rates fo~r W.o:rkers:' Compensation
Insurance. ~ • . ~ :
Signature of- Policyholde-r St,ate .Compensation
Insurance Fund
;U:nderw;ri:ti,ng/Marketing Mgr.
Title Title
Date of Signature Date of Signa;ture
l/8 5/V
COMRENSATION '
I N S U R A N C E
127.5 MARKET STREET • SAN FRANCISCO, CALIFORNIA 941-03. ~
SCIF 10099:(NEW'10=77) ~ OLD U 99
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