HomeMy WebLinkAboutResolutions 9797 N.C.S. 06/06/1983{~
Resolution l~to. 9 79 7 N. ~•.~~:
of the City of Petaluma, Galifornia
A RESULUTION OF THE CITY CUUNGIL OF PETALUMA
PERTAINING TO A DEFERRED PREMIUM PLAN FOR
WORKERS' COMPENSATION IN'SU:RANC.E A'ND
AUTHORIZIN:G THE MAYOR OR CITY MANAGER TO
EXECUTE A PROMISSORY NOTE EAND MEMORANDUM OF
AGREEMENT THEREFOR
WHEREAS, the City of Petaluma purchases Workers' Compensation
Insurance coverage from the 5tate 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]7eferred 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 l, 1983 to
June 30, 1984; and,
BE IT FURTHER RESOLVED that State Compensation Insurance Fund is
hereby named the beneficiary of the note and pledges revenues, namely
Franchise Taxes Reuenue, in the amount of $207, 235, plus interest thereon,
per terms of the note .
ler the power;and authority conferred upon this Council by the Charter of said City.
to
I'hereby certify the foregoing Resolution was introduced:and adopted by the
,
Council of'the City of Petaluma at.a (Regular) (At~gS~d~Xf.~~l~ meeting
on the •--=•.~~Xl........._. day of ..._,.....~tl~~ ...................... _.... .~ 19....g.y3by the
following vote:
AYES: Balshaw, Batta~lia, ~ond, Cavanagh, Harberson,
NOES:
ABSENT:
ATTEST:
Council File ....................................
~'orm cn 2 ~~s1 ~ xes. xo._......:.`.~..:7:g:7...:._..
~,,,r "` City Attorney
rry, b2ayor 11Zattei
- e
-••• -••••••-•-•••-•• ..... ... .......••••- - •-- •-••--••- •- ••-••......_.
Mayor
, o PUBLIC A~ENCY
DE:FER-RED PRFMI.UP'I COLI~ECTION PLAN
PROMI~~ORY NOTE
1983
(pol~ic~y year)
$207,235 --
,19
( date of making )
place of making )
SECTION ON-E
TERMS OF NOTE
For value receive~d, City of Petaluma of City Hall, City
of Petaluma, County of Sonoma, State of Cali;fornia, herein
referred to as maker, promises to pav to the order of State
Compensatio.n Ins.urance Fund, herein referred to as payee, at
127 5 Market S,tr.eet, Ci ty of San Francisco, County of San
Francisco, State of California, on Octobe.r l, 1984, the
principal sum, of Two Hundred Seven Thousand Two H,undr.ed
Thirty Five Dollars ($207,235) with..interest from July l,
1983, at the rate of One. and one-half (1 1/2) percentage
points below the Bank of America prime rate 'of interest
effective JuTy 1.,.,,,~~1983, payment to be made in one lump sum.
;~r.~ ~.
This Note will .:be',~,~mended effective July 1, ~1983 to provide
the fixed rate of interest. '
Fffective January 1, 198~, the interest rate on this
Note will ~ change. t~ te:n percen t(10% ) per year• unless a
higher ra.te i.s perin;i'tted by law and i;n no ev-ent shall the
interest on thi s Note exceed one and one-h;ai f(1 1/2 )
percentage poirits below the Bank of America prime rate of
interest effectiye July l, 1983, per year.
COMPE'PlSATION ~~~~~~~ ~
~~ 1NSURANCE ~
, ,,
1275 MARKET STREET - SAN FRi4NCi5CO, CALIFORNIA 94103
SCIF FORMU-99 ((VEW 10=77) ~
City of Petaluma
RE: Deferred Premium
Collection Plan
Page 2 of 3
Effective July 1, 1984, the deferred portion of the
deposit premium of Eighteen Thousand Eight Hundred Forty
Dollars ($1II,840.) will be credited to the accrued deferred
premium and the face value of this Note will be reduced by
the same amount, amending the face value of this Note to One
Hundred Eighty Eight Thousand Three Hundred Ninety Five
Dollars ($188,395).
SECTION TWO
RECITAL OF CONSIDERATION
This instrument is issued pursuant to the terms of the
workers' compensation insurance contract and memorandum of ,
agreement entered into on
, 19 ,
between the maker and payee of this instrument.
SECT ION THFtFE
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 priricipal and interest earned on this Note are due
and payable 'in cash on demand if this Note ceases to be
fully secured.
T~~~ CNSURANCE ~~Q~~ ~~~~~i~~
1275 MARKET STREET • SAN FRANCISCO, CALIFORNIA 94103
SCIF FORM U-99 (NEW 10-77) ~
City of Petaluma
RE: Deferred Premium
Collection Plan
Page 3 of 3
SECTION FOUR
[n'AIVER OF PRESFPJTMEDIT, PROTEST, AND NOTICE OF DISHO~IOR
Each maker and each endorser of this Note waives
presentment, pr,otest, and notice of dishonor and any other
notice that may be rec~ui.red.
SECTION FIVE
CHOICE OF LAWB
This Note shall be governed by and coristrued in
accordance with la~as of the State of Californ-ia in all
respects, includ.i:ng 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 f il led in be fore it was s igned .
( s ignature of maker)
Title
12/82 V
'~ ~~. CN S U R A N C E ~~~IY~I i~ ~
- 1'275 MARKET STREET • SAN FRANCISCO, CALIFORNIA 94103
SCIF FORM U-99 (NEW 10,7Z) ~
. P-ublic Agency
Deferr.ed Premium Collection Plan.
Memorandum of Agreement
The State Compensatio.n Insurance Fund d`oes hereby agree with
City of Petaluma the und'ersign.ed policyholde:r, that:
In consideration of- the reeeipt o=f a promissory note,
collater~a~lized by a Resolution of the C~ity of Petaluma
Gover.ni':ng• Boarc~ guaranteeing payment i,n the amount of
Two Hundred Seven Thousand Two Hundrecl Thirty Five
Dollars C$20~7,235) at One and one-half (l~ 1/2)
perc,entage points per annum below the Bank of America
prime rate of int~erest effecti~ve July ,l,'1983, we ~~ill
extend a paid loss premium colle,ction p.lan for your
wor}cers' compens~at.ion insurance; policy period July l,
1983 to July l., 1984.
The plan includes the following elements:
= A minimum of forty percent C40%) of the an.nual workers'
aompensation premium and fo.rty pereent (40%) of 'the
required deposi.t. premium will be pa'.id. dur.ing the policy
period. The paid~ partion of the de;po"sit premium is due
and payab,l.e 'in cash at policy inception. After policy
e'xpirat.ion the paid portion of the, deposit will be
cred,ited to the policyholder. The ga:id portion of the
premium ~S a~~.~aea equally over the poli.cy, period. If
a payroll aud.i't reveals that less, than forty percent
( 40 0) of the premium was paid, the ;balance of that amount
will be billed and will be due and payable in eash at
that time.
- At the option of the pol.icyholde:r, Sta:te Fund will accept
a replacemen.t Note f.rom the policyholder for the premium
owed if such Note is~ executed th irt:y ( 30.) days pr ior to
the maturity date of the Note .it repl.aces. I'f the
policyholder opts to execute a replacement Note, such
Note shall be effective €rom the matur°i,ty date of the
Note it repla:ces, mature no more than fourteen (14)
months from th<at date and' be written pursuant to the same
terms as the Note it replaces,
- The interest ea-rned during the ,po1-icy pe.riod is due and
payable in ca~sfi a:t the t-ime of the ~f inal; aud i t~ but in no
case mo;re than. one hundred twenty, (.12,0:) days after policy
exp-irat:ion. Th_e in,terest earned afte~r the expiration
e7ate o;f the poli:cy is due and payable in cash fifteen
{15.) months after policy expiration bu;t in no case later
than the date the promissory note matures..
COF~IPE~NSA-TION_
. INSURA-N'C'E '
1'275' MfiRKET STREET • SAN FRANEISCO, CALIFO.RNIA 941-03 ~
SGIF FORM U-99 (NEW'10-Z7) ~ ~~"~~~~ ~+ ~
City of Petaluma
RE: Memorandum of Agreement
Page 2 of 3 ~
- A rep~lacement instrument of eollateralization must be
delivered to State Fun'd at least thirty (30) days prior
to the expiration of the existing ins,trument of
collateralization. Tf this cond~ition is not met, State
Fund _may demand payme-nt in cash of all principal and
interest earned.
- Interest is to be earned in an amount which shall be not
le:ss than the sum of the in:tere'st 'computed in accordance
with the following:
The interest for the policy period shall be the product
of the appl.icab.le rate of, int.erest a'nd the average
premium owec~, wYiere the average pr.emium owed shall be
taken as the. less;er of the following two amounts :
50% of the sum of the deposit prem'ium not collected
in cash and the la,rgetist amount of premium owed
during the po.licy pe,riod, or
The s-um of the prer~ium owec~ a-t the ;beg~inning of each
monthly pe,riod the Policy rema`ined in foree divided
by the total number of s`uch~ manth~ly periods; and
The inte,rest for eaeh pe~riod follow.ing the expiration
of the poli:cy during which the premium owed and the
rate of inter:est applicable rema:-in unehanged shall be
the product of the ap~?licab:l.e rate of interest, the
premium owed,; and T; where T= the number of days
during which the premium owed and the rate of interest
applicable remained unchanged., divided by three hundred
a"nd sixty-f ive ( 365 ) .
- The obligation to collect interest in ea,sh is
unconditional and any representation to the contrary is
unlawful.
- Monthly payments of Ten Thousand Four Hundred Sixty Seven
Dol lars ($10 , 46'7 ) wi'll commence th irt<y' ( 3.0 ) days af te r
the in,ce:ption date of the policy and a•r.e due and paya~ble
ten (10) days after receipt of statement..
- I;n the event of e'ancellation of thi,s pqlicy prior to
completing the policy period, this agreement will be null
~ and vo:id._ .All deferred premium, and any accrued
interest, will be due and payable iri ca~sh on the
effective daTte of cancellation.
- COiWPEP~lSATION ~
~ ~~ 1 N S U F3 A N;C E ~~~""~~~~~ ~
1'275 MARKET STREET • SAN FRANCISCO, GALIFORNIA 94T03
SCIF FORM U-99 (NEW, 10=7:7.), ~
City of Petaluma
RE: MemorandLUn of Agreement
Page 3 of 3
General definitions of selected terms used in the plan,
promissory note and. memorandum of agreement are found in
6pecial` Rule V of the California Manual of Rules,
Classifications and Basic Rates for Workers' Compensation
Insurance.
Signature of Policyho.lder 5tate Compensation
Insurance Fund
Title
Underwriting/Marketing 1~~qr.
Title
Date Date
Attachmen t: Monthly payment d ispl ay .
12/8 2/V
~ ~ . COPAPENSATIDPV
I N5U62AI~ACE . . ~~~N~~ H ~.
5275' MARKET STREET • SAN FRANCISCO, CALIFORNIA 94103
SGF FORM U-99 (NEW 10-77) ~
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DEFEP,RrD PR~Y;ICJN COLL~..,~''CTIO^I PI~~~N
l~Fcr~P.~D FC7R: CITY Or PETAL[JMA
PR~~ICM: Y3I4@0L~ L~SES: $i0990~ (35$ L/R} DEP~SIT: $31~(~t~
iSTIT~i~TID ESTL^1ATEL ~STi'?LAT~
MUIvTPi3LY ?~10?~tTHLY CU^1ULA'PIVE F7-~R?~Ziv~ i~
tiiOrJTH PAYP1En{`C DEF~:~~~~P[' DEF`EP~~lEI~t'I' L~~F£R~IE:v'T AT I~.S$
DEPOSIT ~1256(3 I884'~ ~I&Fi4~ ~
165
,IULY 1~46, 15E99 3..539
3
~ $
3~4
AUGI;ST ~1~45? 15093 5
54~2 $
SEPT~":BER $1~46? ~1:56a9 65y3~ 5444
OC`POBER y~°4"6? 15699 8I638 585
~O~r ~IBER IG46? 15699 9?3'38 ~727
DECII~IEER 1~467 156~9 ~ 3c~3~ 8~1
~:~NVARY
FEBRJA.RY 1~95?
~1F~~6? $15699
S15699 I2873?
I4443? S1~lE
~1162
hgARCH ~1045?
' ~15599
~ '16G~? :?5
83~
~? $13I~'
Yi~S'9
APRIL 46?
I3 iSb99 5
$
~AAy ~~45^ 515699 ~I9I~36 Tie~~9
JUI•:~ $I~4E" $156°9 2a?23'5 Si?6u
~EP~I`i'** -Si2~6?~ -$188~~ -$i884~;
512~6i~~ Si8o395 $1~~355 ~1i~1~
~STL'~1A'1'r~ INTERFST 0'~ N,.l~~ AT
3 ULY
AU~~'i,
sEPTt~~,BER
OC'I"~Lx3ER
Nt3VENtUL *~.
17E:. ~rU-_ ~
JANUA P,Y
F'E~RU:%~ RY
}r1ARCn
APR IL
9.~~: $9326 ***
$183395 S~?=~8
~.~~.~~7 $~~'~~
~18'~ 395 i??`3
lsa3~s ~~~y~
$I8~ 395 1Siti~
~I83395 18~E
.I8&395 1842
18a395 1~5~s
~
1~33~5 18?5
188395 $?39~
$125534 ~I8t3395 $296~~
ESTIl~'tA'PED I1~tTEREST ~ ~f`E, .~T 9. ~~: 51413~ ***
**PAZfl P~~TI03v OF ~Er'~SIT IS CRE~JITr..'TD TO FOI.ICYHOLDER ~F'TEi2.~QL;ICI' £XPIRr~TIIXv . .
***'PriE t~3LIGATIQ?~l 'It~ COLI,ECT I~Jrc~P,EST IS (]NCONDITI~~[~L AND ~.~,tdY ;Rr:t~Et~~TIOiJ ,
.
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TO '.I'HE C~NTR.A~Y IS U'riLAWF`JL
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