HomeMy WebLinkAbout1996.10.29_OPGA Agenda_SpecialNOTICE OF PUBLIC MEETING OF THE
OWASSO PUBLIC GOLF AUTHORITY
TYPE OF MEETING:
Special
DATE:
October 29, 1996
TIME:
6:00 p.m.
PLACE:
Owasso City Hall Conference Room
Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin
board at 4:00 p.m. on Friday, October 25, 1996.
Marcia outwell, Authority Secretary
AGENDA
1. Call to Order
2. Roll Call
3. Consideration and Appropriate Action Relating to Golf Course Workers Compensation
Coverage.
Ms Parsons
Attachment #3
The staff will recommend that the golf course employees be covered by the city's self -
insured workers compensation program and that use of the state fund be terminated.
1 4. Adjournment
I MEMORANDUM
I
r TO: OWASSO PUBLIC GOLF AUTHORITY
IFROM: REGENA PARSONS
I
SUBJECT: WORKERS' COMPENSATION INSURANCE
DATE: OCTOBER 24, 1996
BACKGROUND:
At this time, the golf course is insured for its workers' compensation coverage through the State
' Insurance Fund at an approximate annual cost of $12,000 (based on estimated payroll). Since
the course employees are City employees they can be added to the self-insurance program of the
City of Owasso. The course would benefit in a direct reduction in premium cost by adding the
course employees to the self-insurance program for the City of Owasso.
ANALYSIS:
The City of Owasso and the Owasso Public Works Authority transfer to the workers'
compensation self-insurance fund an amount equal to 60 % of what a private insurance carrier
would charge for the "manual premium" to provide a workers' compensation policy. It is
' recommended that the golf course also transfer 60% of "manual premium", or approximately
$7300 to the self-insurance fund. This amount serves to fund the administrative fees, re-
insurance premiums, medical, claim settlement, compensation and builds a reserve for future
expenses. This formula will save the course 40% of their premium, approximately $ 4,800 for
1996-97.
A cost sheet detailing the estimated fees to add the golf employees to the City self -insured plan
is attached for your review. The administration fee annual cost would be $1,295 and the cost
for excess insurance would be $1,794, a projected cost of $3,089 in actual expenses. A review
I
WORKERS' COMPENSATION INSURANCE
OCTOBER 24, 1996
PAGE TWO
of prior claims experience of the golf course indicates that claims are well within guidelines for
acceptable self-insurance purposes. The total claims submitted to the State Fund for payment
during 1996 for injuries total $ 474.
The addition of course employees to the self-insurance program benefits both the course and the
City. The course would receive the same rate for excess insurance and the same fee for
administration costs as the City. As was the case with the previous combining of the course
property and equipment coverage with the City insurance policy, the City would receive the
the City benefit of increased size for "marketability" purposes and competitive rate structures.
COMMENTS:
The procedure to place the golf course employees into the City of Owasso workers'
compensation self-insurance fund would involve adding the annual estimated payroll to the Third
Party Administrator for fee calculation ($1,295) and adding the same annual estimated payroll
to the Excess Insurance policy for premium calculation ($1,794), and notifying the State Fund
of our request to cancel coverage.
RECOMMENDATION:
Staff recommends that the State Insurance Fund workers' compensation insurance policy be
immediately canceled and the employees added to the City of Owasso workers' compensation
self-insurance program at an annual rate of $ .41 per $100 of payroll for administration fees and
$ .5680 per $100 of payroll for excess insurance costs.
COSTS TO ADD THE GOLF COURSE TO THE SELF-INSURANCE FUND
Estimated Payroll: $ 315,800
Administrator Fee $ 1,295
Excess Insurance Premium 1,794
Annual Cost: $ 3,089
Est. Annual State Insurance Fund
Premium: $12,000
1996 Claims submitted to State
Insurance Fund For
Payment $ 474
1