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ei <br /> Risk -Management <br /> Consultants <br /> American Risk Services,Inc, Northwest Business Campus <br /> 3033 Campus Drive <br /> Suite A 418 <br /> June 4, 1990 <br /> Minnespc,lis, MN 5.5441-2620 <br /> (612) 559-7300 <br /> Post-It"brand fax transrn ital m <br /> Mr. Thomas D. Burt <br /> N60 <br /> City Manager City of St. Anthony 3301 Silver Lake RoadSt. Anthony, Minnesota 55418 <br /> Re; 6/1/90-91 Workers ' Compensation Program <br /> Dear Tom: <br /> Enclosed is a loss projection worksheet indicating that the projected losses <br /> for the term 6/1/90-91 are $44,209.00. This is predicated upon losses for the <br /> years 1985, inclusive , through 1989. As a point of reference, the City of St. <br /> Anthony began an aggressive loss prevention claims management program 6/1/86. <br /> Therefore , it appears that in three out of the last four years, losses are <br /> very good. <br /> The concern I have with the new LMCIT retrospective program is that their <br /> fixed costs increase substantially to a factor of 47% of discounted standard <br /> Premium. As you will note in page 3 of the exhibits , the breakpoint between <br /> the guaranteed cost and the retrospective program is losses less than <br /> $40,665.00. <br /> My recommendation is to maintain the retrospective rated program for the term <br /> 6/1/90-91 only if the City has segregated the risk management/insurance <br /> savings for prior years. If you have not segregated those funds , I would opt <br /> for the guaranteed cost program. <br /> I will contact you later today to discuss this matter further. <br /> Best regards. <br /> Sincerely, <br /> "A" 4-4�4 <br /> Mark T. Flaten <br /> President <br /> MTF/mm <br /> Enclosures <br /> 6:50 <br />