ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND
MERGHI’S SAVOY INN
4940 E. LANDIS AVENUE
VINELAND, NEW JERSEY
January 20, 2010 - 3:00 P.M.

OPEN SESSION MINUTES

The Reorganization Meeting of the Atlantic County Municipal Joint Insurance Fund (ACMJIF) was held on January 20, 2010, at Merighi’s Savoy Inn, Vineland, New Jersey, at 3PM, prevailing time. Fund Chairman Raymond Townsend, City of North Wildwood, presiding. The meeting was called to order at 3:10 PM.

IT IS ASKED AT THIS TIME THAT ALL MEMBERS PLEASE SILENCE ALL ELECTRONIC NOTIFICATION DEVICES...

FLAG SALUTE

STATEMENT OF COMPLIANCE WITH OPEN PUBLIC MEETING ACT

Notice of this meeting was given by: (1) Sending sufficient notice herewith to The Press of Atlantic City (Atlantic and Cape May editions), The Gloucester County Times, Berlin, New Jersey, and Courier Post, Cherry Hill, New Jersey; (2) filing advance written notice of this meeting with the Clerks/Administrators of all member municipalities of the Atlantic County Municipal Joint Insurance Fund; and (3) posting notice on the public bulletin boards of all member municipalities of the Atlantic County Municipal Joint Insurance Fund.

ROLL CALL OF THE 2009 FUND COMMISSIONERS

Those in attendance were:

Terrence Dolan, Absecon

Andrew Bednarek, Avalon

Karen Thomas, Brigantine

Joseph Santagata, Buena Borough

Ronald Trebing, Buena Vista

Carl Schupp, Cape May Point

Judson Moore, Commercial

Carol Foster, Corbin City

Karen Seifrit, Deerfield

Glenn Clarke, Dennis

Alison Bradford, Downe

Peter Miller, Egg Harbor Township

Kim Hodsdon, Estell Manor

Dennis Krause, Galloway

Edward Sasdelli, Hamilton

Frank Zuber, Alternate, Hammonton

Edward Beck, Linwood

Richard Hirsch, Longport

Lisa McLaughlin, Margate

Lewis Thompson, Millville

Dawn Stollenwerk, Mullica

Joseph Cucio, III, Alternate, Newfield

James Dickinson, Northfield

Raymond Townsend, North Wildwood

Joann Cioeta, Ocean City

James Nicola, Stone Harbor

Theresa Smuz, Upper Township

James Goos, Alternate, Ventnor

Maryann Merlino, Waterford

Bonnie Yearsley, Weymouth

Louis Ferrera, Wildwood

Absent were:

Robert Smith, Cape May

Jodi Kahn, Egg Harbor City

George Eckhardt, Folsom

Claudia Kammer, Lower

Mark Mattlett, Middle

Chief Robert Hoffman, Pleasantville

Lucy Samuelson, Port Republic

George Savastano, Sea Isle City

Ralph Triboletti, Somers Point

Roy Spoltore, Upper Deerfield

Robert Flynn, West Cape May

Herbert Frederick, West Wildwood

Kevin Yecco, Wildwood Crest

Lisa Garrison, Woodbine

Also present were:

Paul J. Miola, CPCU, ARM, Executive Director, AJG Risk Management Services, Inc.

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services, Inc.

David DeWeese, Esquire, Fund Solicitor

Ted Freedman, Treasurer

Joann Hall, Safety Director, Conner Strong Risk Control

Alice Lihou, Vice President of Account Management, Scibal Associates

Jen Pard, Account Manager, CSG

Also present were the Risk Management Consultants from the following agencies:

Donald C. Cost

D’Agostino Agency

William R. Mintz Agency

McMahon Agency, Inc.

Siracusa-Kauffman Insurance

Glenn Insurance

ML Ruberton Realty

C. J. Adams Company

Robert Sames Agency

Atlantic Associates

J. Byrne Agency, Inc.

Kerry G. Thompson Insurance

NIA Group Associates

Hardenberg Insurance

National Associates of Cape May

Richard Gerber

Alternate Executive Member Bednarek will move up to Executive Committee
in the absence of Executive Committee Member Spoltore.

APPROVAL OF MINUTES – OPEN SESSION

Chairman Townsend entertained a motion to adopt the meeting minutes of the December 16, 2009 Executive Committee Meeting as presented in the agenda packet.

Motion by Mr. Sasdelli, seconded by Mr. Moore, to approve the meeting minutes of the December 16, 2009 Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

APPROVAL OF MINUTES – CLOSED SESSION

Confidential Closed Session Meeting Minutes were distributed to the Executive Committee Members.

Chairman Townsend entertained a motion to adopt the meeting minutes of the December 16, 2009 Closed Session Meeting of the Fund as presented in the agenda packet.

Motion by Mr. Clarke, seconded by Mr. Sasdelli, to approve the Closed Session minutes of the December 16, 2009 Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

The Closed Session meeting minutes of the December 16, 2009 meeting shall not be released to the public until the reason(s) for their remaining closed is no longer applicable and the Fund Solicitor has had the opportunity to review them.

A Closed Session of the ACMJIF was held and the meeting was then reopened to the public.

Confidential Closed Session Meeting Minutes were collected.

ADJOURN THE SINE DIE MEETING

Motion by Mr. Clarke, seconded by Mr. Sasdell, to adjourn the Sine Die Meeting. All in favor. Motion carried by unanimous vote.

At this time, the gavel was passed to Paul J. Miola, Executive Director, until the election of a Chairperson for the 2010 Fund Year is completed.

Mr. Miola welcomed everyone to the 2010 Reorganization Meeting of the Atlantic County Municipal Joint Insurance Fund.

ROLL CALL OF THE 2010 FUND COMMISSIONERS

Those in attendance were:

Terrence Dolan, Absecon

Andrew Bednarek, Avalon (left 4:55pm)

Karen Thomas, Brigantine

Joseph Santagata, Buena Borough (left 4:35pm)

Ronald Trebing, Buena Vista

Robert Smith, Cape May (left 4:30pm)

Carl Schupp, Cape May Point

Judson Moore, Commercial (left 4:55pm)

Carol Foster, Corbin City

Karen Seifrit, Deerfield

Glenn Clarke, Dennis (left 4:55pm)

Alison Bradford, Downe

Peter Miller, Egg Harbor Township

Kim Hodsdon, Estell Manor (left 4:50pm)

Dennis Krause, Galloway

Edward Sasdelli, Hamilton

Frank Zuber, Alternate, Hammonton

Edward Beck, Linwood

Richard Hirsch, Longport

Joseph Cucio, III, Alternate, Newfield (arrived 4:15pm)

Lisa McLaughlin, Margate (left 4:55pm)

Lewis Thompson, Millville

Dawn Stollenwerk, Mullica

James Dickinson, Northfield

Raymond Townsend, North Wildwood

Joann Cioeta, Ocean City

George Savastano, Sea Isle City (arrived 3:40 pm)

James Nicola, Stone Harbor (left 4:30pm)

Theresa Smuz, Upper Township

Roy Spoltore, Upper Deerfield

James Goos, Alternate, Ventnor

Maryann Merlino, Waterford

Bonnie Yearsley, Weymouth

Louis Ferrera, Wildwood (left 3:40pml)

Kevin Yecco, Wildwood Crest (arrived 3:20pm)

Absent were:

George Eckhardt, Folsom

Claudia Kammer, Lower

Mark Mattlett, Middle

Chief Robert Hoffman, Pleasantville

Lucy Samuelson, Port Republic

Howard Dill, Somers Point

Robert Flynn, West Cape May

Herbert Frederick, West Wildwood

Lisa Garrison, Woodbine

ELECTION OF 2010 OFFICERS

2010 Nomination Slate

Mr. Miola submitted for the membership’s consideration the 2010 Nomination Slate as found in the agenda packet. The slate was submitted by the Nomination Committee at the November and December Executive Committee Meetings.

The 2010 Nomination Slate is as follows.

Chairperson:                                        Carl Schupp, Cape May Point

Secretary:                                            Bonnie Yearsley, Weymouth

Executive Committee Members                     Roy Spoltore, Upper Deerfield

                                                            Edward Sasdelli, Hamilton

                                                            Judson Moore, Commercial

                                                            Lisa McLaughlin, Margate

                                                            Glenn Clarke, Dennis

Executive Committee Member Alternates:

#1                                                        Karen Thomas, Brigantine

#2                                                        Dennis Krause, Galloway

#3                                                        Karen Seifrit, Deerfield

#4                                                        Edward Beck, Linwood

#5                                                        Lisa Garrison, Woodbine

#6                                                        Ronald Trebing, Buena Vista Township

#7                                                        Louis Ferrara, Wildwood

Confirming the Election of a Chairman and Secretary

Mr. Miola Opened the Floor for any additional candidates for Fund Chairman and Fund Secretary for the 2010 Fund Year.

Hearing no additional candidates for Fund Chairman and Fund Secretary for the 2010 Fund Year, Mr. Miola Closed the Floor.

Mr. Miola requested a Roll Call of the full membership to Confirm the Election of a Chairman and Secretary.

Motion carried.

Confirming the Election of an Executive Committee and Executive Committee Alternates

Mr. Miola Opened the Floor for any additional candidates for Executive Committee and Executive Committee Alternates 2010 Fund Year.

Hearing no additional candidates for Executive Committee and Executive Committee Alternates, Mr. Miola Closed the Floor.

Mr. Miola requested a Roll Call of the full membership to Confirm the Election of an Executive Committee and Executive Committee Alternates.

Motion carried.

OATHS OF OFFICE

At this time, Mr. DeWeese, Fund Solicitor, administered Oaths of Office to the newly elected Chair, Secretary, Executive Committee, and Alternates.

Mr. Miola congratulated the Chairman, Secretary, Executive Committee Members and Alternates.

At this time, the gavel was passed to Carl Schupp, City of Cape May Point, 2010 Fund Chairman.

WELCOME TO NEW FUND COMMISSIONERS

Chairman Schupp welcomed two newly appointed Fund Commissioners – Howard Dill, Somers Point, and Chief Robert Hoffman, Pleasantville.

RESOLUTION HONORING RAYMOND TOWNSEND, NORTH WILDWOOD

Chairman Schupp read from Resolution 2010-18 - Honoring Raymond Townsend for his contribution to the Fund. Copies of the resolution will be presented to mayor and council.

Chairman Schupp entertained a motion to adopt Resolution 2010-18 – Honoring Raymond Townsend.

Motion by Mr. Spoltore, seconded by Mr. Sasdelli to adopt Resolution 2010-18. All in favor. Motion carried by unanimous vote.

ORGANIZATIONAL RESOLUTIONS

Chairman Schupp presented the following Organizational Resolution for adoption.

Resolution 2010-01 – Confirming the Election of a Chairman and Secretary

Resolution 2010-02 – Confirming the Election of an Executive Committee and Alternates

Resolution 2010-03 – Appointing Professional Staff

Resolution 2010-04 – Appointing Defense Attorneys

Resolution 2010-05 – Appointing Louis J. Greco, Esquire as Conflict Solicitor

Resolution 2010-06 – Adopting Cash and Investment Policy

Resolution 2010-07 – Adopting Procedures in Compliance with the Open Public Meetings Act

Resolution 2010-08 – Adopting Fiscal Polices and Procedures

Resolution 2010-09 – Adopting Administrative Polices and Procedures

Resolution 2010-10 – Designating the Executive Director as Public Agency Compliance Officer

Resolution 2010-11 – Adopting and Establishing a Conflict of Interest Policy

Resolution 2010-12 – Establishing a Fund Records Program

Resolution 2010-13 – Establishing a 2010 Plan of Risk Management

Resolution 2010-14 – Designation of Certifying and Approving Officer for Payment of Claims

Chairman Schupp entertained a motion to adopt Organizational Resolutions 2010-01 through R 2010-14 respectively.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Sasdelli, seconded by Mr. Spoltore, to approve Organizational Resolutions 2010-01 through 2010-14 as presented.

All in favor. Motion carried by unanimous vote.

EXPENSE RESOLUTION

Chairman Schupp presented the following Expense Resolution for adoption.

Resolution 2010-15 – Authorizing Advanced Travel Expenses for Authorized Official Travel

Chairman Schupp entertained a motion to adopt Expense Resolution 2009-15 as presented.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Sasdelli, seconded by Mr. Clarke, to approve Expense Resolution 2010-15 as presented.

All in favor. Motion carried by unanimous vote.

CLOSED SESSION - RESOLUTION #2009-17

Be it moved by the Atlantic County Municipal Joint Insurance Fund that the public be excluded from this portion of the meeting to permit the Executive Committee to consider in closed session matters affecting the safety and property of the public and to discuss pending or anticipated litigation and/or contract negotiations and that the minutes covering these matters and the results of closed session will be released to the public when the reasons for discussing and acting on them in closed session no longer exists as required by the Open Public Meeting Act.

Chairman Schupp entertained a motion to adopt Closed Session Resolution 2010-17 as presented.

Motion by Mr. Sasdelli, seconded by Mr. Moore, to adopt Resolution 2010-17.

All in favor. Motion carried by unanimous vote.

Mr. DeWeese stated the Bona Fide Offer Program discussion would take place in Open Session.

Any individual that has not signed a Confidentiality Agreement with the ACMJIF is requested to leave at this time so that a Closed Session Meeting may take place.

REOPEN PUBLIC PORTION OF THE MEETING

Chairman Schupp entertained a motion to reopen the public portion of the meeting.

Motion by Mr. Spoltore, seconded by Mr. Moore, to reopen the public portion of the meeting. All in favor. Motion carried by unanimous vote.

APPROVAL OF CLAIMS PAYMENTS

Chairman Schupp presented the claims for payment as discussed in Closed Session.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

Chairman Schupp entertained a motion to approve the claims for payment as discussed in Closed Session.

Motion by Mr. Spoltore seconded by Mr. Moore, to approve the claims for payment as discussed in Closed Session. They are as follows:

All in favor. Motion carried by unanimous vote.

APPROVAL TO ABANDON SUBROGATION

Chairman Schupp presented the claims discussed in Closed Session for Abandonment of Subrogation.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

Chairman Schupp entertained a motion to Abandon Subrogation on the following seven (7) files as presented in Closed Session as recommended by the Fund Solicitor.

Motion by Secretary Yearsley, seconded by Mr. Sasdelli to approve Abandoning Subrogation on the seven (7) files presented in Closed Session as recommended by the Fund Solicitor.

All in favor. Motion carried by unanimous vote.

CLAIMS REVIEW COMMITTEE REPORT – OPEN SESSION ITEMS

Mr. Sasdelli reported that the Claims Review Committee Meeting minutes from January 14, 2010 serve as a handout to the membership and are self-explanatory.

He highlighted the following items.

PARs

The Committee reviewed thirty-four (34) claims at the January 14^th meeting. Of the claims reviewed, there were twenty-one (21) Workers’ Compensation (7 Police, 1 Fire, 5 Streets, 8 Other), two (2) Automobile Liability, seven (7) Property Liability and four (4) General Liability.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

EXECUTIVE DIRECTOR’S REPORT

Mr. Miola thanked the membership for the re-appointment as Executive Director. He stated that his report is included in the agenda packet.

He asked members to take note of the following items.

-       AJG – Disclosure Statement –

Cashan & Company has served as Administrator for the Atlantic County Municipal Joint Insurance Fund, hereinafter referred to as “Fund”, since January 1, 1987. On November 1, 2001, Arthur J. Gallagher & Company, Inc. acquired the assets of Cashan & Company. Effective January 1, 2006, the company name has changed to Arthur J. Gallagher Risk Management Services, Inc. The Public Entity Practice within our firm presently confines its practice to providing professional administration, brokerage, and consulting service to large individual and pooled public entity self-insureds.

The Brokerage Division of our firm provides a full range of conventional insurance sales and service, including personal and commercial property, casualty, and employee benefits. Additionally, our firm provides Risk Management Consulting Services to individual municipalities having membership in joint insurance funds. Some of the municipalities hold membership in joint insurance funds administered by Arthur J. Gallagher Risk Management Services, Inc.

In the case of this Fund, AJG Risk Management Services, Inc. serves as Risk Management Consultant for the following members:

Folsom Borough                                    Hamilton Township

Newfield Borough                                    Upper Deerfield Township

The purpose of the disclosure statement is to publicly advise the Officers, Executive Committee, and Commissioners that AJG Risk Management Services, Inc. fulfills the roles of Fund Administrator and in some cases, members’ Risk Management Consultants. Paul J. Miola of Arthur J. Gallagher Risk Management Services, Inc. also serves as the Deputy Executive Director of the MEL RCF. In addition, Paul J. Miola of Arthur J. Gallagher Risk Management Services, Inc. also serves as the Producer for the placement of Excess Insurance for the Municipal Excess Liability Joint Insurance Fund.

The only revenue derived from the Atlantic County Municipal Joint Insurance Fund is the fee that we are paid under contract to provide administrative services to the Fund.

The Fund Secretary has been asked to incorporate this memo into the minutes of the January Reorganization meeting and make it a permanent record of the Fund.

-       2008 Safety Incentive Program Awards – A report detailing the available balances for each member is included in the agenda packet. The deadline for claiming or encumbering funds was December 31, 2009. All encumbered funds must be claimed by February 1, 2010. Members should contact the Executive Director’s office with questions on how to collect the Safety Incentive Awards moneys. Moneys not claimed will revert to Fund Surplus.

-       2009 Optional Safety Budget – A report detailing the available balances for each member is included in the agenda packet. The deadline for claiming or encumbering funds was December 31, 2009. All encumbered funds must be claimed by February 1, 2010. Members should contact the Executive Director’s office with questions on how to collect the Operation Safety Budget moneys. Moneys not claimed will revert to Fund Surplus.

-       EPL Hotline – Authorized Contact List – Members should review the list provided in the agenda packet for accuracy. New appointments should be forwarded to the Executive Director’s office by resolution. These designated individuals will have access to the EPL Hotline. Instructions are posted on the JIF website.

-       Financial Fast Track – The report for November 2009 is made a part of the agenda packet. The JIF surplus as of November 30, 2009 was $13,357,052. Dividend returns will be discussed at the spring Finance Committee Meeting.

-       Elected Officials Training – A final session will be held on January 28, 2010 at Kerri Brooke Caterers in Hammonton, NJ. The invitation for the January session as well as the sign in sheets from previous sessions held can be found at the JIF’s website.

-       Managers & Supervisors Training – A final session will be held on March 25, 2010 at the Wildwood Convention Center. The invitation for the March session as well as the sign in sheets from previous sessions held can be found at the JIF’s website.

-       Police Training Announcement – An additional requirement of the MEL’s 2010 EPL Program is attendance by all Police Chiefs and at least one additional member of Command Staff at the Risk Management for Police Executives training seminar. The invitation, including dates and location is made a part of the agenda packet.

-       RMC Resolution and Agreements – RMC payments will be placed on the February Bill List for all RMCs that have forwarded fully executed resolutions and agreements for each town represented to the Executive Director’s office.

-       2010 JIF Appointment and Contact Information – Members should provide updated information at their earliest convenience so that a 2010 Fund Directory can be prepared. If no changes were made, please indicate such.

-       Attendance Record - Members are asked to review this year-end report for any data entry errors. This is taken directly from the Recording Secretary’s monthly roll call.

-       PRIMA Conference – This year’s conference will take place June 7^th – June 9^th in Orlando, Florida. Those Fund Commissioners who have first priority for attendance will receive information from the Executive Director’s office shortly.

-       New Fund Commissioner Orientation - Training will be held in the spring of 2010. An overview of the JIF will be presented and attendees will have an opportunity to ask questions. Each attendee will also receive a Fund Commissioner Handbook.

-       2010 Annual Safety Kickoff Breakfast – This year’s breakfast will be held on February 11, 2010 at Merighi’s Savoy Inn, Vineland, NJ beginning at 8:30am. Invitations were mailed and responses are due no later than January 28, 2009.

Chairman Schupp encouraged new Fund Commissioners to browse our website www.ACMJIF.org. and to reach out to fellow Fund Commissioners with any questions.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

MEL REPORTS

MEL Reorganization Report – January 6, 2010 Reorganization

Mr. Hirsch reported that the MEL 2010 Reorganization Meeting took place on January 6^th. The minutes from that meeting are self-explanatory and made part of the agenda packet. He highlighted the following items.

-       Meeting Dates – The 2010 MEL Meeting Dates are listed in the report. On November 17^th the MEL will hold its meeting at the Atlantic City Convention Center at 5PM.

RCF Reorganization Report – January 6, 2010 Reorganization

Mr. Thompson reported that the RCF 2010 Reorganization Meeting took place on January 6^th. The minutes from that meeting are self-explanatory and made part of the agenda packet.

SOLICITOR’S REPORT

Mr. DeWeese thanked the membership for their confidence in re-appointing him 2010 Fund Solicitor. He looks forwarded to working with Fund members in the coming year.

-       Bona Fide Offer Program

Mr. DeWeese welcomed the group of Petitioners’ Attorneys in attendance, as well as two members of the ACMJIF Workers’ Compensation Defense Panel, Michael Affanato, Esquire and James Pietras, Esquire.

A handout describing the Bona Fide Offer Program was included in the agenda packet for the membership. Mr. Affanato and Mr. Pietras can answer any questions members may have regarding the Bona Fide Offer Program.

The Claims Review Committee gave a mandate to the Fund Professionals to try and find ways to save money on workers’ compensation.

Mr. DeWeese brought these instructions to our Defense Panel Members at the Annual Defense Panel Breakfast in June 2009.

The Workers’ Compensation Panel Members informed Mr. DeWeese of the NJSA 35:15-64 provision under the Workers’ Compensation Act. It allows an employer to pay a reduced amount of counsel fees to the employee if the employers make a good faith offer of compensation for an employee’s injury. He received from Counsel references to case law in New Jersey that deals with this statute. The purpose of the statute, as described in the case law, was to benefit the employee and not the employer. The statute was enacted so that employees could get money early on after they were injured. The reduction of attorney’s fee on the good faith offer fees was put in as an incentive to the employer to get money to the employees early on after they had been injured.

Mr. DeWeese read what the court indicated in two cases.

Case One –

The purpose of the statute is to encourage the employer to offer a settlement and start paying the employee at an early date. Thus, litigation may be avoided and the employee may receive prompt compensation. To the extent the statute removes the employees and counsels incentive to fight for the preverbal last dollar because fees will not be awarded except on the amount of the award in exceed of the employers offer. That appears to have been the legislature’s intent.

Case Two -

The statute represents a compromise and clearly was enacted to encourage employers to offer compensation at a reasonable time prior to a hearing by reducing the amount of attorney’s fees that may be aware then the employer has made such as offer in good faith.

This was the backdrop by which the Bona Fide Offer Program was introduced to Mr. DeWeese. He was unaware of the existence of the program before that time. When Mr. DeWeese learned this information, he brought it back to the Claims Review Committee, and suggested that a meeting should occur between the Defense Panel Members, Claims Administrator, and Fund Solicitor.

The Workers’ Compensation Defense Panel Members, Claims Administrator, and Fund Solicitor met to discuss the parameters of the program and what would be proposed with regards to the program. It was at that time that Mr. DeWeese learned that Scibal Associates had already been utilizing this statute in cases for the ACMJIF. They had been making bona fide offers in many cases and had been reviewing cases to make bona fide offers. The thought process then was to create a more formalized program that would be presented to the membership for adoption.

The alternative way to approach this was that it did not necessarily have to be presented to the membership and adopted. This could have been implemented via the Litigation Management Guidelines that were instituted through Mr. DeWeese’s office, the Defense Panel, and Scibal Associates. It did not need formal adoption by the Fund. However, the group felt it was best to get the program out in front of the membership to make them aware of the existence of the program and to have the membership make the determination as to whether a program such as this should be adopted and put into place.

The program itself was discussed at the October 2009 and November 2009 Claims Review Committee Meetings as well as the Executive Committee Meetings. Updates were provided to the entire membership during those meetings. In early November 2009, the program was drafted and all members were presented with a copy in the December 2009 agenda packet along with a proposed resolution for consideration.

At the December 2009 meeting, the program was on the agenda for adoption when word filtered down to individuals’ attorneys that are affected by the program. There was quite a stir that caused some politicians (assemblymen and senators) to send correspondence regarding the program indicating they wished the Fund to hold off on the vote so that there would be a full opportunity for opposition to be heard.

It was Mr. DeWeese’s suggestion that these attorneys attend this evening’s meeting to voice their opposition.

Mr. DeWeese stated that the program is being presented in response to a mandate from the Claims Review Committee and Fund membership to explore ways to save taxpayers dollars. This program has been presented and recommended as having that potential. The program itself provides that Scibal Associates and Mr. DeWeese’s office will closely monitor the program if it is adopted. That they will report to the membership on a quarterly basis as to how the program is working.

-       Public Comment

At this time, Chairman Schupp entertained a motion to Open the Floor to the public to speak solely on the Bona Fide Program issue.

Motion by Mr. Sasdelli, seconded by Mr. Moore to Open the Floor to the public to speak solely on the Bona Fide Program issue. All in favor. Motion carried by unanimous vote.

Two attorneys in attendance, Kenneth Mackler, Esquire and Frank Pietro, Esquire, gave their perspective on the Bona Fide Offer Program.

Chairman Schupp asked if there were any further comments at this time. No questions were entertained.

Chairman Schupp entertained a motion to Close the Floor to the public.

Motion by Mr. Spoltore, seconded by Mr. Clarke to Close the Floor to the public. All in favor. Motion carried by unanimous vote.

-       Adoption – Bona Fide Offer Program

Comments were made at this time by Michael Affanato, Esquire and James Pietras, Esquire as well as several Fund Commissioners.

Mr. Miola stated that the ACMJIF has been on the cutting edge of workers’ compensation programs since its inception. The Fund has a physicians’ panel of specialists, all claims get assigned to case nurse management, all claims are reported within 3-days, effective early return to work programs have been implemented, personal visits made to loss time claimants, Claims Coordinators’ training seminars are held, aggressive subrogation effects have collected $1.8 million in recoveries since 2006. These are only workers’ compensation programs; the Fund has unprecedented safety program as well. This year a tremendous initiative will be rolled out on soft tissue injury.

Mr. Sasdelli suggested modifying the resolution to a one-year pilot program with quarterly reports being presented to the Executive Committee and at the end of Fund Year 2010 make a final determination regarding the program.

Chairman Schupp entertained a motion to adopt Resolution 2010-16 – Adopting the Bona Fide Offer Program as a one-year pilot program with quarterly reports being presented to the Claims Review Committee, with a final determination as to its continuance made at the end of Fund Year 2010.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Sasdelli, seconded by Mr. Moore to adopt Resolution 2010-16 – Adopting the Bona Fide Offer Program as a one-year pilot program with quarterly reports being presented to the Claims Review Committee, with a final determination as to its continuance made at the end of Fund Year 2010.

All in favor. Motion carried by unanimous vote.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

SAFETY DIRECTOR’S REPORT

Ms. Hall thanked the JIF for re-appointment as Safety Director on behalf of Conner Strong Risk Control Services.

Ms. Hall reported that the Safety Director’s Report is self-explanatory. She mentioned the following items:

-       2010 SIP Distribution – Copies of the 2010 Safety Incentive Program was presented to all Fund Commissioners.

-       MEL Safety Institute – A listing of the MSI classes that will be offered through the end of the March is made a part of the report. This listing is also e-mailed to all Fund Commissioners and Safety Coordinators on a monthly basis. Registration can be performed on-line or by fax.

-       Special Program – This year a special program will be offered – Active Shooter in the Workplace: How to Respond. Course dates and times are listed in the announcement. Pre-registration is required.

-       2010 Safety Coordinator Roundtable – The roundtable will be held immediately following the 2010 Safety Kickoff Breakfast on February 11^th at Merighi’s Savoy Inn, Vineland, NJ.

-       Safety Campaign – A new safety campaign will be rolled out this year entitled Stop and Think. This program will address how to avoid back injuries. Campaign materials, such as DVDs and posters will be presented to each member municipality.

-       3^rd Quarter Safety Director’s Report – A summary of the report can be found in the agenda packet.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

CLAIMS ADMINISTRATOR’S REPORT (attached to Claims Review Meeting Minutes)

On Scibal’s behalf, Ms. Lihou thanked the membership for renewal of the Claims Administrator’s contract. She highlighted the following reports:

-       Lessons Learned from Losses for January 2010

The MEL Year in Review

Each year the MEL provides an annual claim activity report and 2009 proved to be a very busy year, with significant claim outcomes and resolutions.

Nationwide, jury verdicts and fee awards to plaintiff’s attorneys continue to rise. The MEL Special Corporate Claims Committee meets routinely to discuss strategy designed to ultimately reduce municipal and taxpayer exposure. This has resulted in early identification of claims for resolution as well as claim trends.

The MEL reports a slight decrease in claims reported in 2009 compared to the number of claims reported in 2008. A total of 421 new POL and EPL claims were reported to the MEL in 2009. Of these, the largest percentage of claims reported were POL claims followed by EPL claims. To date, of the 398 claims made in the 2009 Fund Year, only 178 remain open. Over 55% of the 2009 Fund Year files are not closed. For all years, 470 claims were closed in 2009. This represents a closing ratio of 112%.

In 2009, the MEL reports that 15 POL claims were settled for a total of $651,000; 33 were dismissed by the Court and 26 claims were resolved via a coverage “buy-out”. On behalf of the ACMJIF, the MEL settled an alleged civil rights violation POL claim filed against a member municipality in the amount of $5,000. Two ACMJIF claims were dismissed; one involved an ordinance challenge and the other a towing operator dispute. There were nine ACMJIF claims resolved via coverage “buy-out”; all of these were POL claims. The total “buy-out” paid by the MEL was $39,500.

For all MEL Funds, the MEL reports that 71 EPL claims resolved via settlement or trial. The MEL paid a total of $11,620,316.64 in settlements and verdicts. The MEL won at trial in one case alleging Failure to Accommodate. The MEL also resolved 23 EPL claims through dismissal by the Court.

One behalf of the ACMJIF, a total of 14 claims filed against seven towns resolved through settlements amounting to $2,832,567.64. Additionally, four EPL claims were dismissed by the Court, without any loss payment. Allegations included wrongful demotion, hostile work environment, improper job reclassification, retaliation and harassment. No EPL claims resolved via coverage “buy-out”.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

MANAGED HEALTH CARE REPORT (attached to Claims Review Meeting Minutes)

Ms. Pard reported on the following items for December 2009:

CSG Solutions – December 2000 Snapshot (attached to Claims Review Committee Meeting Minutes)

§       First Report of Injury                               83

§       Report Only Claims                                     20

§       Cases Assigned to Case Manager                           63

§       Average Number of Days to Report a Claim                    1.96

§       Year to Date Average Number of Days to Report a Claim        2.16

§       Members Averaging 3-Days or More to Report Claim        2

§       # of Bills Re-priced                                      578

§       Original Bill Amount                                   $530,204.98

§       Re-Priced Amount                                         $217,989.75

§       Bill Review Savings                                         $312,215.23

§       % of Savings                                         58.89%

§       Year to Date % of Savings                                   50.57%

§       PPO Charge Penetration                                    85.09%

§       PPO Penetration                                           83.74%

Ms. Pard has the list of claims for those members averaging 3-days or more to report a claim for any members with questions.

Lost Opportunity Days Summary Report – December 2009

Ms. Pard presented the Lost Opportunity Days Summary Report of Open Cases as of December 25, 2009. The report shows that 67.30% of the Transitional Duty days available were utilized.

Managed Care Report

Medical Case Management

Field Case Management Success Story – Case history of a 37 year old male who was involved in a motor vehicle accident while on duty as a police officer and his diagnosis related to injury.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

TREASURER’S REPORT

Mr. Freedman looks forwarded to the continued success of the JIF in 2010, and thanked the membership for his re-appointment as Fund Treasurer.

Mr. Freedman presented the Treasurer’s Report for December 2009. The report was made part of the January agenda packet for members’ review.

Executive Summary

Budget Status

The budget information reflects month to date and “Fund” to date history of each budget year and all closed years funds. There is a summary, or final comprehensive total for all budget years. The reports for 2009 and 2008 are in detail to itemize expenses, all other years are summarized.

The total budget balance, assuming collection of all 2009 assessments, as of December 2009 is $39,681,082. That balance must be reduced by future case reserves for a net balance of $22,142,180.

The Fund is presently expended at 82.07%. The actual cash and investment balance is $37,778,945. The net change in Fund balance was a decrease of $833,948.

The Closed Year’s funds include the budget year 1987-2004. The Close Years balance is $8,619,890.

Investment Status

TD Investment Advisors manage the investments of the Fund. Investment vehicles are limited to those permitted by state statute. Interest, net of unrealized gains or losses, in the amount of $50,955 was earned at the blended rate of 1.60% for the month.

The Fund has 16 bond/ notes in the portfolio; 1 matures in less than 1 year, 4 mature in less than 2 years, and 11 mature in more than 2 years.

There were two transactions that were posted to the portfolio including purchases, sales and interest income.

Claims Payment & Subrogation

Claims were paid on all active fund years and totaled $1,121,768.23. A total of 763 checks were issued to vendors. Subrogation and salvage in the amount of $16,041.23 were posted during the month. Prior period reimbursements voided checks during the month totaled $2,477.43.

Financial Activity of the ACMJIF

Budget Status

Mr. Freedman reported a Balance of $39,681,082 with Net Reserves of $22,412,180.

Investment Report

Mr. Freedman noted that the actual interest earnings for the month of December 2009 were $(68,770) at -2.16%. He further noted that the net of unrealized gain/ loss was $50,955 at 1.65%.

Receipts Activity for the Month

Mr. Freedman reported that the Receipts Activity of the month totaled $532,052.33.

Claims Activity

Mr. Freedman reported that the total Claims Activity for the month totaled $1,121,768.23.

Mr. Freedman asked for approval for payment of the above-mentioned Claims Activity for the month of December 2009 in the amount of $1,121,768.23.

Motion by Mr. Sasdelli, seconded by Mr. Spoltore, to approve the Claims Activity as submitted by Mr. Freedman.

All in favor. Motion carried by unanimous vote.

Cash Activity for the Month

Mr. Freedman reported the cash activity for December 2009 as follows:

Bill List Approval - January 2010

Mr. Freedman presented the Bill List for the month of January 2010 in the amount of $1,425,536.60 as found in the agenda packet. The Bill List includes MEL payments and expenses of the Fund.

At this time Mr. Freedman requested approval for payment of the Bill List for January 2010 in the amount of $1,425,536.60.

Motion by Mr. Spoltore, seconded by Mr. Sasdelli, to approve the Bill List for January 2010 as presented by Mr. Freedman.

All in favor. Motion carried by unanimous vote.

Assessment

Mr. Freedman reminded members that 1^st Quarter Assessments were due January 15th. There is a grace period until January 25^th. There are several member towns that have not submitted their payment – Buena Vista, Cape May Point, Commercial, Downe, Linwood, Waterford, Weymouth, Wildwood, and Woodbine. Any members having Treasurers needing to contact Mr. Freedman may do so by calling 609-484-3622.

Loss Run Reconciliation

Mr. Freedman reported the reconciliation of all three reports from the Loss Run for the month of December 2009.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

COMMITTEE REPORTS

New Member Review Committee Report – December 16, 2009

The December 16^th New Member Review Committee Report was presented verbally at the December Executive Committee Meeting. The minutes are self-explanatory and made a part of the agenda packet for members’ review.

Executive Safety Committee Report – December 11, 2009

The December 11^th Executive Safety Committee Report was presented verbally at the December Executive Committee Meeting. The minutes are self-explanatory and made a part of the agenda packet for members’ review.

Committee Chairs Meeting Report – January 14, 2010 (handout)

Chairman Schupp reported on the January 14^th Committee Chairs Meeting. He designated the following Fund Commissioners to Committee Chair.

2010 Committee Assignments

Edward Sasdelli, Hamilton            -            Claims Review Committee

Kevin Yecco, Wildwood Crest            -            Coverage Committee

Dawn Stollenwerk, Mullica            -            Finance Committee

Andrew Bednarek, Avalon            -            Operations and Planning Committee

Joann Cioeta, Ocean City            -            Safety Committee

JIF EPL/POL Committee Creation

The Committee Chairs discussed the large number of EPL/ POL claims that have been occurring. Individual members have been receiving surcharges over the last few years. This year the entire Fund has received a surcharge.

As a result, a new JIF EPL/POL Committee will be formed. Its members will consist of the 2010 Committee Chairs, Fund Commissioners, and several Fund Professionals.

Chairman Schupp asked if there were any questions at this time. No questions were entertained.

MISCELLANEOUS BUSINESS

Next Meeting

The next regular ACMJIF Meeting will be held on Wednesday, February 17, 2010 at 3PM, at Merighi’s Savoy Inn, Landis Avenue, Vineland, NJ

PUBLIC COMMENT

Chairman Schupp opened the meeting for public comment.

Hearing no comments, Chairman Schupp closed the meeting for public comment.

MOTION TO ADJOURN

Motion by Mr. Spoltore seconded by Secretary Yearsley, to adjourn the January 20, 2010 Reorganization Meeting of the ACMJIF. Motion carried by unanimous vote.

The meeting was adjourned at 5:10 PM.