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EXHIBIT A <br />SCOPE OF SERVICES <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. This <br />will provide important data for the City's comprehensive annual financial report, GASB Statement No. 10 <br />requirements, budgeting and strategic planning. Consultant's specific scope of work is as follows: <br />A. Estimate Outstanding Losses: Estimate outstanding losses including allocated loss adjustment <br />expenses (ALAE) and 4850 benefits for each fiscal year as of June 30, 2013, June 30, 2014, and June 30, <br />2015. Outstanding losses will be shown on a discounted present value basis including separate <br />calculations for incurred but not reported (IBNR) claims. <br />B. Project Financial Position: Project the financial position as of June 30, 2013. The projected <br />financial position is a comparison of funds available with the estimated outstanding losses. <br />C. Project Future Losses: Project future losses including ALAE for 2013/14, 2014/15 and 2015/16 <br />fiscal years. Projected future losses will be shown on a discounted present value basis. The present value <br />reflects future investment income earned on funds held to pay losses. <br />D. Project Losses Paid: Project losses paid (claims disbursements) during fiscal years 2013/14, <br />2014/15 and 2014/15. <br />E. Recommend Funding: Recommend funding for fiscal years 2013/14, 2014/15 and 2015/16. <br />The recommended funding is based on the projected future losses, investment income, expenses and the <br />projected financial position. <br />F. Discuss LossExperience: Discuss loss experience trends and compare the City to similar <br />programs. <br />G. Update the workers' compensation cost allocation system and liability cost allocation system for <br />City departments. <br />Consultant shall deliver a complete written draft report to City as soon as practicable and the final report <br />shall be delivered to City by October 30, 2013. <br />COMPENSATION <br />City agrees to pay, and Consultant agrees to accept Six Thousand Five Hundred Dollars ($6,500.00) as <br />total compensation for services pursuant to items A through l' above. Compensation for work performed <br />to complete item G, updating both the workers' compensation and liability cost allocation systems, shall <br />not exceed Four Thousand Dollars ($4,000.00). <br />Total compensation to Consultant pursuant to this Agreement shall not exceed Ten Thousand Five <br />Hundred Dollars ($10,500.00) during the term of this Agreement.