HomeMy WebLinkAboutResolutions 84-115 N.C.S. 06/04/1984. ~ ;_ ..; . ,JJN - 4 1984
. F~eSOILItIOrl ~Q. 8 4 -.115 N: ~.. S.
- of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL PERTAINING TO
A DEFERRED PREMIUM PLAN FOR WORKERS'- COMPENSATION INSURANCE
AND AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE A
PROMISSORY NOTE AND .MEMORANDUM OF AGREEMENT THEREFOR
WHEREAS, the City of Petaluma purchases Workers' Compensation
Insurance coverage from the State Compensation Insurance Fund; and,
WHEREAS, recent changes to administrative regulations now 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 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,
1984 to June 30, 1985; 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, in the amount of $.18'8, 400 plus interest thereon,
per terms of the note.
Under the power and authority conferred upon this Council by the Charter of said City.
_ I hereby certify the foregoing Resolution was introduced and adopted by the ApiSrov s o
Council of the City of. P-etaluma at a (Regular) (~~~iyFi~e~~ QS~i~ci'al!) meeting fo
~ y ....-..... 19... $.~} by the
on the .......----- :~tl..._. da of ..............:~laSl~...................... ,
following vote: •- . . .. ..... ...:...•-
AYES: Cavanagh/Balshaw/V.M. Harberson/Mayor Mattei
NOES: None
ABSENT: per Batta ~ a/ d
-• .
ATTEST: - ' .. _ _~ ~_l -~~. ~,::. ~ :_
City Clerk Mayor
Council File.....-:..:....._ .......:...........
:Form CA;2 7J81 Ites..No ...$ 4 1,1,x,,, N . C . S .
P(`RLIC AGENCY
DEFERRED PREMI[i_~~ COLLE'CTION' PLAN
PROP9ISSORY NOTE
JUN - 4 1984
5 :~
• 198,4
( po 1 i cy year )
S188,400
19
date of making)
(place of making)
SECTION ONE
TERMS OF' NOTE
For value received, City of Petaluma of P.O. Box 61,
City of Petaluma, Coun y of Sonoma, State of California,
herein referred to as' maker, promises to day to the order of
State Compensation Insurance Fund, herein ref erred to as
payee, at 1275 Market Street, City of San Francisco, County
of San Francisco, State of California, on July 1, 1986, or
at the time of d,ivide`nd* calculation for the, policyholder as
provided' for in the State Fund authori'z.ed dividend plan,
whichever occurs first, the principal sum of One Hundred
Eighty Eight Thousand Four Hundred Dollars {51.88,400) with
interest from July 1, 19"84, a,t the rate of One and one-half
(1 1/2) percentage points below the Bank of America prime
rate of interest effective July 1, 1984, payment to be made
in one lump s,um. This Note will he amended effective July
1, 1984, to provide the fixed rate bf interest.
Effective January 1, 1984., Government Code Section
53531. allows that the maximum interest rate allowable on
this Note is ten percent, (10~) per year unless a higher rate
is permitted by law.
COMPENSATION
I N S U R A N C E
1275 MARKET STREET SAN FRAtVCi5C0, CAIFFORNIA 94103
S'CIF FORM U-99 .(NEW 10-77} :~~
City, of Petaluma
RE: Deferred' Premium
Co..llecti~n Plan
Page 2 of 3
SECTION .TWO
R`FCITAL Of CnNSIDERATION
This instrument is issued pursuant to the terms of the
workers' compensation insurance contract policy X28061-8~
.and memorandum of agreement entered into on ,
19 between the maker and payee of this instrument.
SECTION THREE
COLLATERAL
Maker is furnishing collateral security for the
indebtedness evidenced by this Note by Resolution of the
City of Petaluma Governing Board guaranteeing .payment.
The principal and interest earned on this Note are dtae
and payable in cash on demand if this Note ceases to be
fully secured.
SECTION FOUR
WAIVE+R OF PRESENTMENT, PROTEST, AND NOTICE OF DISHONOR
Each maker and each endorser of this Note waives
presentment, protest, and notice of dishonor a`nd any other
n otice that may be required.
COMPE'NSATIO-N
~ NSURAN.:CE
]275,MARKET-STREET SAN FR AN CISCO,CAUFORNIA 94103 -
S;CIF-FORM u•9.9 (NEw ]0-77) =
City of Pe tal i~ma
RE: Deferred Premium
Collection Plan
Page 3 of 3
SECTION FIVE
CHUICE OF LAWS
This Note shall be governed by and canstrued in
accordance with laws of the State of. California in all
respects, inclining matters of construction, validity, and
performance.
SECTION S:IX
ACK!NnWLEDGMENT OF RECEIPT OF NOTE
Maker acknowledges receipt of a tr.u.e 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 under an unexpired
workers' compensation policy or to misrepresent the
conditions 'for dv'ide~nd payment.. Dividends are payable only
pursuant to conditions ~determined,by the. Board of Directors
or other Governing Board of the company following policy
expiration. It is' a misdemeanor for any insurer or officer
or agent thereof, ~r any insura,nc,e broker or solicitor, to
promise the payment of future workers' compensation
dividends. Past dividend performance is no guarantee of an
insurer's future dividend performance.
Cs ignature of maker )
Title
5/84 V
-~
GOMPfNSATION
I N S U R A N C E
1275 MARKET STREET SAN FRANCISCO, CALIFORNIA 94103
SCiF'FORM U-99 (NEW 1-0=77) ~~=
Pub 1 i c Ag.e ncy
Deferred. Premium Collection Plan
Memorandum of .Ag reeme nt
The State Compensation Insurance F'un~3 does hereby agree with.
City of Petaluma, the und'e;rsign:ec~ policyholder, _that:
In consic~-e ration of the receipt of a promissory note,
collateralized by a Resolution of the City of Petaluma
Governing Aoard guaranteeing payment in the amount of
One Hundred Eighty Eight Thousand Four Hundred Dollars
(S188,400') at One and one-half (1 1/2) percentage
points per annum 'below the Bank of America prime rate
of interest effective July 1, 1984, we will extend a
deferred premium collection plan. for your workers'
compensation insurance, policy period July 1, 1984 to
July 1 , 198 5.
The plan includes the following elements:
- A minimum of forty percent (40$) of the annual workers'
compensation prern,ium and forty pe.rce:nt (40%) of the
required depgsit premium will be paid. during the policy
period. The .paid portion of the de`po it premium is due
and payable in cash at po,.licy inception. The paid
portion of the premium is divided over the policy period.
If a payroll audit reveals that less than forty percent
(40~) of the prem-ium w•as paid, the balance. of that amount
will he billed anal will be due and payable in cash. at
that time.
- In the event that payroll and-it reveals that more than
Sixty percent (60€} of the required premium was deferred,
the poaicyholder agrees to make up the balance by signing
an amendment to th•e Promissory 'Note. and temorandum of
Agreement.
- At the option of. the policyholder, State Fund will accept
a replacement Note. from the policyholder for the premium
owed .f such Note is executed thirty (30) days prior to
the matu-city date of the .Note it replaces. If the
policyholder opts to execute a replacement Note, such
Note: sha-11 be effective frgm the maturity date of the
Note it 'replace ;, :mature no more than fourteen (I4)
months' from t`ha.t date and be written ,pursuant. to the same
terms as the 'rote it replaces.
- The interest earned during the policy period is due and
payable in cash. at the time of the final audit but .in no
case more than one hundred fifty (150) days after policy
expiration. The interest earned after the expiration
date of the policy is due and payable in cash twelve (12)
months after policy expiration but in .no case later than
sixty (60) days after the Last day of the month in which
the promissory note matures.
CO M P EN SATFO'N
INS,IJRANCE
1275 N,A.RKET SY;REET SAN FRANCISCO, CALIFORNIA 94103
'SCI:F F:OR'M U•99 (-NEw 10-77) ~=~!
City of Pe ta,luma
RF : P9emoran dam of Agre emen t
Page 2 of 3
- A replacement instrument of c.ollateraT:izatio:n must be
delivered to State~Fund at least thirty (30) days prior
to the expira°t ion of the existing instrumen of
collateralizatii~n. If this condition is not met, Rate
Fund may demand payment in cash- of all principal and
interest earned.
- Interest is to be. earned in an amount which shall he not
less than the sum of the interest computed, in accordance
with the following:
The interest f:or the policy period shall be the product
of. the applic.abie rate of nter.eat and the average
premium owed, where the average premium owed shall he
taken as the lesser of the following two amounts:
50% of the sum of the deposit.. premium. not collected
in cash and the largest amount of premium owed
during the policy period, or
The sum of the premium owed at the tregnn.ng of each
monthly period the policy remained in .force divided
by the total number of such monthly periods; and
The interest for each period following the expiration
of the policy during w.h.ich the premium owed and the
rate of intere 't applicable remain unchanged shall be
the prodUet of t;he applicable rate of interest, the
premium owed, and T; where T the number of days
during which the premium ,owed and the r-ate of interest
applicable remained unchanged, divided by three hundred
and sixty-five (365).
- The obligation to collect .interest in cash is
unconditional and ariy representation to the contrary is
unlawful.
- Monthly payments are as indicated on the attached
schedu e of paymen€s and are due and payable 10 days
after receipt of b.ill..
- In the event of cancellation of this .policy prior to
completing the policy period, ths.a;greement will be null
and void. All def:er.red premium, and any accrued
interest, will tre due and payable in cash on the
effective date of cancellation.
GOMPENSATLON
I N S U R A N C E
1275 MARKET STREET SAN FRANCiSCO,.CA~L6FORNIA94103
SCIF FORM U-99 (NEw 10-77)
~,
City of. Petaluma
RE: Memorand•tim of Agreement
Page 3 o.f 3 .
General definitions- of selected terms used in the plan,
promissory note and memorandum of agreement are found in
Special Rule V of the Caafor,nia Manual of Rules,
Classifications and Basic Rate's for 4dorkers' Compensation
Insurance.
Signature of Policyholder
Title
State Compensation
Insurance Fund
Underwriting/Marketing Mgr.
Title
D,at e Dat e
Attaehme:nt;: Monthly payment display.
5/8.4!V
COMIPENSATI,O:N
INSURANCE `
1275 MARIKET STREET ~ SAN F-RANCISCO., CAGFORMA 9aL03
SCLF FOP.M U,99 (NEW 10.77) `:~~.-