HomeMy WebLinkAboutItem #04 Approval of Resolution with Colonial Bank, N.A. for Letter of Credit
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AGENDA ITEM COVER SHEET
Meeting Date: April 1, 2008
Item # 4
Contact Name:
Contact Number:
James Carnicella
1032
Reviewed By:
Department Direc
City Manager:
Subject: Approval of Resolution Required by Colonial Bank, N.A. with
of Letter of Credit for Workers Compensation Insurance
Background Summary:
The workers compensation company PMA requires the City post a $200,000 assurance, while the Company
pays claims for the City in advance of any monthly invoice. These funds would only be called for should the City
default in paying any appropriate invoice from PMA.
Issue:
Approve the issuance of a Letter of Credit in the amount of $200,000 as security in connection with the Workers
Compensation policy.
Recommendations
Staff recommends the commission adopt the Resolution required by Colonial Bank, N.A. with respect to the
issuance of the Letter of Credit and authorize Mayor and staff to execute all necessary documents to effect this
transaction and the issuance of the Letter of Credit.
Attachments:
BankinQ documents.
Financial Impact:
$200,000 from the workers compensation budget was used to fund this. A separate bank account has been
established at Colonial Bank, N.A. with the $200,000 deposited to fund the Letter of Credit.
Type of Item: (please mark with an "x'J
Public Hearing
_ Ordinance First Reading
_ Ordinance Second Reading
x Resolution
_ Commission Approval
Discussion & Direction
For Clerk's DeDt Use:
_ Consent Agenda
_ Public Hearing
_ Regular Agenda
_ Original Document/Contract Attached for Execution by City Clerk
_ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by 0
N/A
N/A
N/A
Item # 4
Forthcoming
Back-up Materials for Letter of Credit
for Workers Compensation Insurance