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EXHIBIT A <br /> <br />SCOPE OF SERVICES <br /> <br />Consultant shall develop reasonable funding and management guidelines for the City's Workers' <br />Compensation and Liability Programs. Separate information will be provided for each program. <br />This will provide important data for the City's comprehensive annual financial report, GASB <br />Statement No. 10 requirements, budgeting and strategic planning. Consultant's specific scope of <br />work is as follows: <br /> <br />A. Estimate Outstanding Losses: Estimate outstanding losses including allocated loss <br />adjustment expenses (ALAE) and 4850 benefits as of June 30, 2003, June 30, 2004, and June 30, <br />2005. Outstanding losses will be shown on a discounted present value basis including separate <br />calculations for incurred but not reported (IBNR) claims. <br /> <br />B. Project Financial Position: Project the financial position as of June 30, 2003. The <br />projected financial position is a comparison of funds available with the estimated outstanding <br />losses. <br /> <br />C. Project Future Losses: Project future losses including ALAE for 2003/04, 2004/05 and <br />2005/06 fiscal years. Projected future losses will be shown on a discounted present value basis. <br />The present value reflects future investment income earned on funds held to pay losses. <br /> <br />D. Project Losses Paid: Project losses paid (claims disbursements) during fiscal years <br />2003/04, 2004/05 and 2005/06. <br /> <br />E. Recommend Funding: Recommend funding for fiscal years 2003/04, 2004/05 and <br />2005/06. The recommended funding is based on the projected future losses, investment income, <br />expenses and the projected financial position. <br /> <br />F. Discuss Loss Experience: Discuss loss experience trends and compare the City to <br />similar programs. <br /> <br />G. Develop a workers' compensation cost allocation system for City departments and update <br />the liability cost allocation system. <br /> <br />Consultant shall deliver a complete written draft report to City as soon as practicable and the <br />final report shall be delivered to City by September 30, 2003, except for item G above, which <br />shall be completed and delivered to City prior to June 30, 2004. <br /> <br /> <br />