ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND
MERIGHI’S SAVOY INN
4940 E. LANDIS AVENUE
VINELAND, NEW JERSEY
February 17, 2010 – 3PM

OPEN SESSION MINUTES

The regular meeting of the Atlantic County Municipal Joint Insurance Fund (ACMJIF) was held on February 17, 2010 at Merighi’s Savoy Inn, 4940 E. Landis Avenue, Vineland, New Jersey, at 3:05 PM, prevailing time. Chairman Carl Schupp, City of Cape May Point, presiding. The meeting was called to order at 3:05 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), and the 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

Those in attendance were:

Terrance Dolan, Absecon

Andrew Bednarek, Avalon

Karen, Thomas, Brigantine

Joseph Santagata, Buena Borough

Ronald Trebing, Buena Vista

Robert Smith, Cape May

Carl Schupp, Cape May Point

Jud Moore, Commercial

Karen Seifrit, Deerfield

Glenn Clarke, Dennis

Alison Bradford, Downe

Peter Miller, Egg Harbor Township

Kim Hodsdon, Estell Manor

George Eckhardt, Folsom

Dennis Krause, Galloway

Edward Sasdelli, Hamilton

Susanne Oddo, Hammonton

Edward Beck, Linwood

Richard Hirsch, Longport

Lisa McLaughlin, Margate

Tracey Taverner, Representative, Middle

Lewis Thompson, Millville

Dawn Stollenwerk, Mullica

James Dickinson, Northfield

Joann Cioeta, Ocean City

Chief Robert Hoffman, Pleasantville

Howard Dill, Somers Point

James Nicola, Stone Harbor

Teri Smuz, Upper Township

Roy Spoltore, Upper Deerfield

James Goos, Alternate, Ventnor

Maryann Merlino, Waterford

Bonnie Yearsley, Weymouth

Kevin Yecco, Wildwood Crest (arrived 3:15pm)

Lisa Garrison, Woodbine

Absent were:

Carol Foster, Corbin City

Claudia Kammer, Lower

Everett Marshall, Newfield

Ray Townsend, North Wildwood

Lucy Samuelson, Port Republic

George Savastano, Sea Isle City

Rob Flynn, West Cape May

Herbert Frederick, West Wildwood

Louis Ferrara, Wildwood

Also present were:

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

David DeWeese, Esquire, Fund Solicitor

Ted Freedman, Treasurer

Joanne Hall, Safety Director, Conner Strong Risk Control

Kathy Tyler-Schohl, Workers’ Compensation Account Management, Scibal Associates

Jen Pard, Senior Account Manager, CSG

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

D’Agostino Agency

McMahon Agency

AJG Risk Management Services, Inc.

Siracusa-Kauffman Insurance

Glenn Insurance

M L Ruberton Realty

C. J. Adams Company

J. Byrne Agency, Inc.

Kerry G. Thompson Insurance Agency

NIA Group Associates

National Associates of Cape May

Gerber Insurance

APPROVAL OF THE MINUTES – JANUARY 20, 2010 OPEN SESSION

Chairman Schupp presented the January 20, 2010 meeting minutes of the Executive Committee Meeting as found in the agenda packet for consideration.

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

Chairman Schupp entertained a motion to adopt the meeting minutes of the January 20, 2010 Executive Committee Meeting.

Motion by Mr. Spoltore, seconded by Mr. Sasdelli, to approve the minutes of the January 20, 2010 Executive Committee Meeting as presented to the Executive Committee. All in favor. Motion carried by unanimous vote.

APPROVAL OF THE MINUTES – JANUARY 20, 2010 – CLOSED SESSION

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

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

Chairman Schupp entertained a motion to approve the meeting minutes of the January 20, 2010 Closed Session Meeting as distributed.

Motion by Mr. Sasdelli, seconded by Mr. Moore, to approve the Closed Session minutes of the January 20, 2010 Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

The Closed Session minutes of the January 20, 2010 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.

CLOSED SESSION – RESOLUTION #2010-19

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 presented Resolution #2010-19. He entertained for a motion to approve the resolution and go into the Closed Session portion of the meeting.

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

Motion by Mr. Spoltore seconded by Mr. Clarke, to adopt Resolution #2010-19.

All in favor. Motion carried by unanimous vote.

REOPEN PUBLIC PORTION OF THE MEETING

Chairman Schupp asked for a motion to Reopen the Public Portion of the Meeting at this time.

Motion by Mr. Sasdelli, seconded by Ms. McLaughlin to Reopen the Public Portion of the Meeting. 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 February 11^th serve as a handout to the membership and are self-explanatory. He highlighted the following item.

PARs

The Committee reviewed twenty-nine (29) claims at the February 11^th meeting. Of the claims reviewed, nineteen (19) Workers’ Compensation (10 Police, 2 Fire, 3 Streets, 4 Other), six (6) General Liability, one (1) Automobile Liability, and three (3) Property PARs were approved for settlement or continuing defense.

CSG

There was a $300,000 savings to the Fund with the repricing of medical bills.

Learns Learned from Losses

This month’s report gives a definition to many of the terms used in the handling of workers’ compensation claims, i.e., TTD, MMI, and Section 20 Settlements.

Liens from Subrogation

Located in the Treasurer’s Report, on a monthly basis, is the total amount of moneys received during the month from our subrogation efforts. In January 2010, $18,211.35 was collected.

Chairman Schupp asked if there were any questions at this time.

Due to inclement weather, there was only one (1) Fund Commissioner present during the meeting; that Fund Commissioner being Mr. Sasdelli, the Claims Review Committee Chair. There was also one (1) RMC along with the ACMJIF Fund Professionals in attendance. Mr. Miller asked if there needs to be a quorum for the Claims Review Committee to conduct business.

Mr. DeWeese stated that the Claims Review Committee makes its recommendations to the Executive Committee and does not make any decisions regarding the claims being reviewed without the consent of the Executive Committee.

Mr. Miola will look at the Committee Charter for the Claims Review Committee, consult with the Fund Solicitor, and report back to the Executive Committee at the March meeting.

Since the subject was brought up, Mr. Sasdelli mentioned that the Claims Review Committee does have a light turn out, it seems to be the same few dedicated individuals, and he would like to see more participation. He would also like the Committee Charter reviewed for more information regarding attendance.

Ms. Cioeta stated it is difficult to participate due to the length of the meetings. Mr. Sasdelli stated the meetings have been shortened a fair amount. The meetings will now start at 9AM, finishing up around 11AM.

No further questions were entertained.

APPROVAL OF CLAIMS PAYMENTS

Chairman Schupp presented and entertained a motion for approval the claims payments as discussed in Closed Session.

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

Motion by Mr. Clarke seconded by Ms. McLaughlin, to approve the claims for payment as discussed in Closed Session. The claims are as follows:

All in favor. Motion carried by unanimous vote.

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

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 file(s) as presented in Closed Session as recommended by the Fund Solicitor.

Motion by Ms. Yearsley, seconded by Mr. Spoltore to approve Abandoning Subrogation on the file(s) presented in Closed Session as recommended by the Fund Solicitor.

All in favor. Motion carried by unanimous vote.

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

EXECUTIVE DIRECTOR’S REPORT

Mr. Miola stated that the Executive Directors’ Report found in the agenda packet is self-explanatory.

He highlighted the following items.

§       LTAF Report – This report serves the membership as a handout.

§       Loss Ratio Reports – The Loss Ratio Reports for the MEL and JIF, valued as of December 31, 2009, also serve the membership as a handout.

§       2008 Safety Incentive Program Awards – A report detailing the available balances for each member is made a part of the agenda packet. The deadline for claiming these funds was December 31, 2009. All encumbered funds were to be claimed by February 1, 2010.

§       2010 Optional Safety Budget – A report detailing the available balances for each member is included in the agenda packet. The deadline for claiming or encumbering these funds is December 31, 2010.

§       EPL Hotline – Authorized Contact List – The most recent list of authorized contacts in included in the agenda packet. Members should review the list for accuracy.

§       Monthly Activity Calendar – The monthly activity calendar for the months of February and March are made a part of the agenda packet. The calendar is also posted on the website.

§       Elected Officials Training – A final session was held on January 28, 2010 at Kerri Brooke Caterers in Hammonton. The sign-in sheets from that session can be obtained on the website.

§       Managers and Supervisors’ Training – One additional training session has been scheduled for the morning of March 25^th at the Wildwood Convention Center. A copy of the invitation is made a part of the agenda packet. Sign in sheets from previous training sessions can be obtained on the website.

§       Police Training Announcement – An additional requirement of the MEL’s 2010 EPL Program is attendance by all Police Chiefs and Command Staff at the Risk Management for Police Executives training seminar. A copy of the invitation, including dates, locations, and registration form is included in the agenda packet.

§       New Fund Commissioner Orientation – An orientation session will take place in the spring. An overview of the JIF will be presented. This is open to all Fund Commissioners and RMCs. Each attendee will receive a Fund Commissioner Handbook.

§       2010 Safety Breakfast – The 21^st Annual Safety Breakfast will be held on February 18^th at Merighi’s Savoy Inn in Vineland beginning at 8:30am. This was postponed from last week due to inclement weather. Almost 400 individuals have registered for this year’s event.

§       Inclement Weather Policy – A copy of the JIF’s Inclement Weather Policy is posted on the website. In addition, members can call 856-446-9148 for a pre-recorded message announcing the cancellation of a meeting.

§       Financial Disclosure Forms – A memo and blank Finance Disclosure were e-mailed on February 4^th to each Fund Commissioner and appointed JIF Official. Two original copies of the completed form should be returned to the Fund Office by April 9, 2010 in order to meet the filing deadline with the state.

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

MEL and RCF REPORTS

There were no MEL or RCF Reports.

The next MEL and RCF Meetings will take place on March 3, 2010.

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

SOLICITOR’S REPORT

The Fund Solicitor had nothing to report in Open Session.

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

SAFETY DIRECTOR’S REPORT

January Activity Report

The Safety Director’s Report is made part of the agenda packet and is self-explanatory. Ms. Hall highlighted the following items from the report.

§       MSI Classes – The training schedule for February, March and April 2010 is included in the report. Pre-registration by phone, fax, or website is required for all MSI classes. A listing of all 2010 MSI Classes can be found on the MEL website, NJMEL.org.

§       Special Training - The Active Shooter in the Workplace: How to Respond Training has one more program to offer on February 26, 2010 at 11AM at the Gloucester County Fire Academy in Clarksboro.

§       2010 Safety Breakfast – This annual safety event takes place on February 18^th at Merighi’s Savoy Inn in Vineland. The 2010 Safety Campaign “Stop & Think to Avoid Back Injury” will be rolled out. The MEL DVD will be distributed at that time.

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

CLAIMS ADMINISTRATOR’S REPORT

Ms. Tyler-Schohl reported on the following items.

• Lessons Learned from Losses for February 2010

-       Workers’ Compensation 101

What is T.T.D.?

T.T.D. is an acronym for temporary total disability and refers to the wage replacement component of typical workers’ compensation benefits. This is based upon 70% of a person’s average weekly wage. For 2010, the maximum wage replacement rate if $794.00. Emergency volunteers, as defined by the Workers’ Compensation Statute, receive the maximum rate regardless of their primary employment wages.

What is Maximum Medical Improvement or M.M.I.?

In cases presented, reference to injured employees reaching M.M.I. or Maximum Medical Improvement. When an injured employee is determined by a physician to have reached their highest medical improvement potential or plateau, they are deemed to have reached M.M.I. When an employee reaches M.M.I., temporary total disability (wage replacement) benefits may be stopped.

Section 20 Settlements Revisited: What Are They?

Section 20 Settlements are often discussed in claims that have questionable causation or multiple body parts or pre-existing conditions. Section 20 Settlements do not concede compensability. Section 20 Settlements do limit a petitioner’s ability to reopen their claim regarding the same injury.

Worker’s Compensation can get very complicated. The State of New Jersey has an excellent resource for common questions as its Department of Labor and Workforce Development website: ttp://lwd.dol.state.nj.us/labor/wc/workers/workers_index.html.

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

MANAGED HEALTH CARE REPORT

Ms. Pard reported on the January 2010 Snapshot (attached to Claims Review Committee Meeting Minutes)

§       First Report of Injury                                                                     79

§       Report Only Claims                                                                                    19

§       Cases Assigned to Case Manager                                                   60

§       Average Number of Days to Report a Claim                                               2.14

§       Year to Date Average Number of Days to Report a Claim              2.14

§       Members Averaging 3-Days or More to Report Claim                    4

§       # of Bills Re-priced                                                                        459

§       Original Bill Amount                                                                     $563,681.51

§       Re-Priced Amount                                                                         $265,880.52

§       Bill Review Savings                                                                              $297,800.99

§       % of Savings                                                                                  52.83%

§       PPO Charge Penetration                                                               93.40%

§       PPO Penetration                                                                            83.22%

Lost Opportunity Days Summary Report – January 2010

The Lost Opportunity Days Summary Report of Open Cases as of January 25, 2010 shows that 81.32% of the Transitional Duty days available were utilized.

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

TREASURER’S REPORT

Mr. Freedman presented the Treasurer’s Report for January 2010. The report is made part of the 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 2010 and 2009 are in detail to itemize expenses; all other years are summarized.

The total budget balance, assuming collection of all 2010 assessments, as of January 2010 is $58,188,939. That balance must be reduced by future case reserves for a net balance of $40,668,998. The Fund is presently expended at 76.15%. The actual cash and investment balance is $39,805,005. The net change in Fund balance was an increase of $2,026,060.

The Closed Years funds include the Budget Years 1987 – 2005. The Closed Years balance is $8,317,563.

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 $47,718 was earned at the blended rate of 1.48% for the month.

The Fund has 15 bond/ notes in the portfolio; 1 investment matures in less than 1 year; 4 investments mature in less than 2 years; 10 investments mature in more than 2 years.

There were 5 transactions posted to the portfolio including purchases, sales and interest income.

Claims Payment & Subrogation

Claims were paid on all active Fund Years and totaled $949,575.79. A total of 583 checks were issued to vendors. Subrogation and salvage payments in the amount of $18,211.35 were posted during the month. Prior period reimbursements and voided checks totaled $21,248.54.

Financial Activity of the ACMJIF

Budget Status

Mr. Freedman reported a Balance of $58,188,939 with Net Reserves of $40,668,998.

Investment Report

Mr. Freedman noted that the actual interest earnings for the month of January 2010 were $82,393 at 2.55%. He further noted that the after net of market value adjustment was $47,718 at 1.48%.

Receipts Activity for the Month

Mr. Freedman reported that the Receipts Activity of the Month totaled $4,387,572.44.

Claims Activity

Mr. Freedman reported that the total Claims Activity for the Month totaled $949,575.79.

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

Chairman Schupp asked for approval for payment of the above-mentioned Claims Activity for the Month of January 2010 in the amount of $949,575.79.

Motion by Mr. Moore seconded by Mr. Sasdelli 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 January 2010 as follows:

Bill List Approval – January 2010

Mr. Freedman presented the Bill List for the Month of February 2010 for the operating expenses of the Fund in the amount of $1,412,983.17 as presented to the membership in the agenda packet. This month’s Bill List includes the MEL 1^st Installment.

Mr. Freedman stated he would entertain any questions at this time. No questions were entertained.

Mr. Freedman requested approval for payment of the Bill List for February 2010 in the amount of $1,412,983.17.

Chairman Schupp entertained a motion for approval for payment of the Bill List for February 2010 in the amount of $1,412,983.17.

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

Motion by Mr. Moore, seconded by Mr. Sasdelli, to approve payment of the Bill List for February 2010 in the amount of $1,412,983.17.

All in favor. Motion carried by unanimous vote.

RMC Bill List Approval – January 2010

Mr. Freedman presented the RMC Bill List for the Month of February 2010 for the 1^st quarter RMC payments in the amount of $183,698.00 as presented to the membership in the agenda packet.

Mr. Freedman stated he would entertain any questions at this time. No questions were entertained.

Mr. Freedman requested approval for payment of the RMC Bill List for February 2010 in the amount of $183,698.00.

Chairman Schupp entertained a motion for approval for payment of the RMC Bill List for February 2010 in the amount of $183,698.00.

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

Motion by Mr. Moore, seconded by Mr. Spoltore, to approve payment of the RMC Bill List for February 2010 in the amount of $183,698.00.

All in favor. Motion carried by unanimous vote.

Loss Run Reconciliation

Mr. Freedman reported the reconciliation of all three reports from the Lost Run for the month of January 2010.

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

COMMITTEE REPORTS

None.

MISCELLANEOUS BUSINESS

Next Meeting

PUBLIC COMMENT

Chairman Schupp opened the meeting for public comment.

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

MOTION TO ADJOURN

There being no further business, Chairman Schupp entertained a motion to adjourn the February 17, 2010 Executive Committee Meeting of the ACMJIF.

Motion by Mr. Moore seconded by Ms. McLaughlin, to adjourn the February 17, 2010 Executive Committee Meeting of the ACMJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 4:15 PM.