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

OPEN SESSION MINUTES

The regular meeting of the Atlantic County Municipal Joint Insurance Fund (ACMJIF) was held on March 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

Cynthia LoGuidice, Alternate, Buena Vista

Robert Smith, Cape May

Carl Schupp, Cape May Point

Jud Moore, Commercial

Carol Foster, Corbin City

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

Edward Beck, Linwood

Claudia Kammer, Lower

Lisa McLaughlin, Margate

Mark Mallett, Middle

Lewis Thompson, Millville

Dawn Stollenwerk, Mullica

James Dickinson, Northfield

Ray Townsend, North Wildwood

Chief Robert Hoffman, Pleasantville

Eva Feeley, Alternate, Sea Isle City

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

Louis Ferrara, Wildwood (arrived 3:30pm)

Kevin Yecco, Wildwood Crest

Lisa Garrison, Woodbine (arrived 3:10pm)

Absent were:

Susanne Oddo, Hammonton

Richard Hirsch, Longport

Everett Marshall, Newfield

Joann Cioeta, Ocean City

Lucy Samuelson, Port Republic

Rob Flynn, West Cape May

Herbert Frederick, West Wildwood

Also present were:

Paul J. Miola, CPCU, 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

Joanne Hall, Safety Director, Conner Strong Risk Control

Alice Lihou, Vice President, Account Management, Scibal Associates

Jen Pard, Senior Account Manager, CSG

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

Donald C. Cost

Chris Ferry Insurance Agency

D’Agostino Agency

William R. Mintz Agency

McMahon Agency

AJG Risk Management Services, Inc.

Glenn Insurance

M L Ruberton Realty

C. J. Adams Company

Robert Sames Agency

J. Byrne Agency, Inc.

Kerry G. Thompson Insurance Agency

NIA Group Associates

Hardenberg Insurance

National Associates of Cape May

Mr. Miola reported that Richard Hirsch, Longport Fund Commissioner is doing very well after collapsing at a fire scene over the weekend. Hopefully we will see Mr. Hirsch is attendance at the April meeting.

APPROVAL OF THE MINUTES – FEBRUARY 17, 2010 OPEN SESSION

Chairman Schupp presented the February 17, 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 February 17, 2010 Executive Committee Meeting.

Motion by Mr. Clarke, seconded by Mr. Sasdelli, to approve the minutes of the February 17, 2010 Executive Committee Meeting as presented to the Executive Committee. All in favor. Motion carried by unanimous vote.

APPROVAL OF THE MINUTES – FEBRUARY 17, 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 February 17, 2010 Closed Session Meeting as distributed.

Motion by Mr. Spoltore, seconded by Mr. Sasdelli, to approve the Closed Session minutes of the February 17, 2010 Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

The Closed Session minutes of the February 17, 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 #2010-20

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 #2010-20. 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. Clarke seconded by Mr. Spoltore, to adopt Resolution #2010-20.

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. Moore, seconded by Mr. Sasdelli to Reopen the Public Portion of the Meeting. All in favor. Motion carried by unanimous vote.

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 claim(s) 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.

CLAIMS REVIEW COMMITTEE REPORT – Open Session Items

Mr. Sasdelli reported that the Claims Review Committee Meeting minutes from March 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 March 11^th meeting. Of the claims reviewed, seventeen (17) Workers’ Compensation (4 Police, 1 Fire, 6 Streets, 5 Other, and 1 Inclusive of 2 Police and 1 Other), four (4) General Liability, one (1) Automobile Liability, and seven (7) Property PARs were approved for settlement or continuing defense.

Learns Learned from Losses

The “MEL Corner” is reported on this month. In the 4^th Quarter of 2009, the MEL resolved four (4) claims on behalf of the ACMJIF.

CSG

There was a $313,000 savings to the Fund with the repricing of medical bills in February 2009.

Assignment of Case/ Closed Cases

There was 1 New Case and 12 Closed Cases in February 2010. This is not by coincidence, but by design. It is a direct outcome of the posture of the Fund and the approach our Defense Panel has taken on handling claims.

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 February 2010, $54,000 was collected through the hard work of our Fund Solicitor and Fund Professionals.

EHT Claim

Egg Harbor Township is appealing a claim that was denied coverage. Mr. DeWeese is trying to resolve the matter.

Claims Review Committee Forum

A concern arose at the February Executive Committee Meeting regarding Committee Quorums for Sub-Committee Meetings, specially the Claims Review Committee. This was due to only one Fund Commissioner being present at the February Claims Review Committee Meeting.

Based upon the Solicitor’s research, there is no requirement to have a quorum. The Claims Review Committee Charter indicates that Fund Commissioners, Fund Professionals and RMCs are all members of the Committee. Sub-Committees of the JIF do not take official action on matters; they make recommendations to the Executive Committee.

Chairman Schupp recommended that this matter be submitted to the Operations and Planning Committee for further review.

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.

§       2009 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 is December 31, 2010. All encumbered funds have to be claimed by February 1, 2011.

§       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. These are the only representatives authorized to access this service. Members should review the list for accuracy.

§       EPL Plan of Risk Management Updates – Members that submit the required checklist by May 1, 2010 will qualify for both the deductible and rate incentives retroactively to January 1, 2010. A copy of the October 1, 2009 correspondence outlining the program is made a part of the agenda packet.

§       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.

§       Payroll Audits – Overland Solutions will be performing workers’ compensation exposure verification audits of members’ year 2009 payrolls. These payrolls will be the basis for the 2011 workers compensation renewal data. A representative from Overland Solutions will be contacting members to set up a mutually convenient date and time for the audit.

§       Property Appraisals – RMCs are asked to advise ASSETWORKS of any additions or deletions of insurable properties that have occurred since these scheduled were last updated by March 31, 2010.

§       Contact Information – Updates have been posted on the JIF website. Members should check the Contact Information and report any inaccuracies to the Executive Director’s office.

§       New Fund Commissioner Orientation – An orientation session will take place, as a webinar, in the near future. 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.

§       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.

§       MEL Coverage Bulletin 2010-24 – This bulletin addresses questions that many member towns are asking regarding the need for a Certificate of Insurance and Hold Harmless & Indemnification Agreement from the US Census Bureau when the Bureau requests to use municipal property as part of the census process.

§       Workers’ Compensation Exit Interview (handout) – Members should try to incorporate this form into the Exit Interview process.

The suggested Workers’ Compensation Exit Interview form will be posted to the JIF website and can be tailored by members when utilized.

Several Fund Commissioners questioned whether utilizing the form could lead to the reporting of false claims at the time the employee is being laid off. Mr. Miola stated that each member can make their own decision as to the use of the form; however, in his opinion, the use of the form will eliminate more false claims then it will cause.

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

MEL and RCF REPORTS

MEL/ RCF Reports – March 3, 2010 Meeting

Mr. Thompson reported that the meeting minutes from the March 3^rd MEL and RCF Meetings are self explanatory and included in the agenda packet. He highlighted the following items.

MEL Secretary

He mentioned that Ronald Angelo from Suburban JIF and the Secretary for the MEL announced his resignation. Mount Ephraim Mayor Joseph Wolk from the Camden JIF will serve as MEL Secretary for 2010.

MEL Financial Results as of December 31, 2009

The 2009 4^th Quarter financial results identify two trends: 1) workers’ compensation experience is improving and 2) the deterioration of the liability claims, particularly in employment practices.

RCF Financials

Trends from the MEL results indicate that workers’ compensation is trending favorably for the RCF. This positive trend is off-set by continuing poor trends in liability. Mary Lou Doner, Scibal, and the Executive Directors of the local JIFs were commended for their efforts on workers’ compensation focus claim programs.

MEL Coverage Committee

The Board accepted an endorsement excluding claims arising from any debt financing – effective March 3, 2010. Recommendation to include the exclusion was made by the Internal Auditor during his reinsurance review as well as the Fund’s excess carrier.

Commissioners also accepted the Coverage Committee’s recommendation to review the excess casualty document to incorporate the “limit of liability endorsement” into the body of the policy as well as the addition of the definition of “occurrence” as recommended by the Internal Auditor. Since these changes do not alter coverage, Commissioners agreed that revisions will be effective January 1, 2010.

PRIMA Conference

The Board adopted a resolution authorizing Commissioners’ attendance at the PRIMA Conference that will take place on June 6^th thru June 9^th in Orlando, Florida.

Next Meeting

The next meeting of the MEL and RCF is scheduled for Wednesday, June 2, 2010 at Forsgate, Jamesburg, New Jersey.

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

February 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.

§       Annual Safety Kick-Off Breakfast – A summary of the results from the safety kick-off are included in the report.

§       Bloodborne Pathogens Training – On March 26^th, a train-the-trainer program will be held in Pleasantville.

§       Advanced Safety Leadership Program – Longport will host this program on April 13^th and April 20^th.

§       Regional Training – Notices will be going out regarding regional training sessions on Personal Protective Equipment. There are four dates available from the members to choose from.

§       MSI Classes – The training schedule for March, April and May 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.

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

Mr. Yecco commented that he and Mr. Townsend tried to spearhead a wellness initiative in the Fund with information that was obtained during a previous PRIMA Conference they attended in Boston, Massachusetts. He feels that the model that has been established in Onondaga, New York should be brought forward by the safety professionals. There were tremendous strides made in this program that have a ripple effect for employees, not only from a health insurance standpoint but from a workers’ compensation standpoint.

Ms. Hall stated that the Executive Safety Committee asked this year that extra credit be awarded for wellness. That idea has been opened up to the membership. Promoting wellness does promote better health and safer employees.

Ms. Hall will place Mr. Yecco’s suggestion on the agenda for the March Executive Safety Committee Meeting.

No further questions were entertained.

CLAIMS ADMINISTRATOR’S REPORT

Ms. Lihou reported on the following items.

• Lessons Learned from Losses for March 2010

-       MEL Corner

Each quarter the MEL provides a “snapshot” of claims that resolved in the prior quarter. For the 4^th quarter of 2009, the MEL resolved 22 cases arising out of 13 MEL JIF Funds. The MEL payments totaled $3,198,738. In the 4^th quarter of 2009, the MEL resolved 4 claims on behalf of the AMCJIF. The MEL payments totaled $344,646.

• Scibal Correspondence

Correspondence dated February 1st regarding Scibal’s senior management team is made a part of the agenda packet.

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

MANAGED HEALTH CARE REPORT

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

§       First Report of Injury                                                                     164

§       Report Only Claims                                                                                    58

§       Cases Assigned to Case Manager                                                   106

§       Average Number of Days to Report a Claim                                               1.97

§       Year to Date Average Number of Days to Report a Claim              2.06

§       Members Averaging 3-Days or More to Report Claim                    5

§       # of Bills Re-priced                                                                        617

§       Original Bill Amount                                                                     $562,315.29

§       Re-Priced Amount                                                                         $249,266.91

§       Bill Review Savings                                                                              $313,048.38

§       % of Savings                                                                                  55.67%

§       PPO Charge Penetration                                                               88.39%

§       PPO Penetration                                                                            80.23%

Lost Opportunity Days Summary Report – February 2010

The Lost Opportunity Days Summary Report of Open Cases as of February 25, 2010 shows that 81.64% of the Transitional Duty days available were utilized.

Managed Care Update

This month’s report highlights the following.

§       Workers’ Compensation Prompt Reporting

o      Why claims should be reported in 3 days or less

o      Financial impact to the JIF

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 February 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 February 2010 is $55,888,792. That balance must be reduced by future case reserves for a net balance of $38,502,864. The actual cash and investment balance is $37,504,857. The net change in Fund balance was a decrease of $2,300,148.

The Closed Years funds include the Budget Years 1987 – 2005. The Closed Years balance is $8,337,159.

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 $43,211 was earned at the blended rate of 1.34% for the month.

The Fund has 14 bond/ notes in the portfolio; 1 investment matures in less than 1 year; 4 investments mature in less than 2 years; 9 investments mature in more than 2 years.

There were 9 transactions posted to the portfolio including purchases, sales and interest income.

Claims Payment & Subrogation

Claims were paid on all active Fund Years and totaled $823,562.74. A total of 552 checks were issued to vendors. Subrogation and salvage payments in the amount of $53,999.32 were posted during the month. Prior period reimbursements and voided checks totaled $21,860.40.

Financial Activity of the ACMJIF

Budget Status

Mr. Freedman reported a Balance of $58,888,792 with Net Reserves of $38,502,864.

Investment Report

Mr. Freedman noted that the actual interest earnings for the month of February 2010 were $37,528 at 1.17%. He further noted that the after net of market value adjustment was $43,211 at 1.34%.

Receipts Activity for the Month

Mr. Freedman reported that the Receipts Activity of the Month totaled $99,859.10.

Claims Activity

Mr. Freedman reported that the total Claims Activity for the Month totaled $823,562.74.

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 February 2010 in the amount of $823,562.74.

Motion by Mr. Clarke seconded by Mr. Moore 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 February 2010 as follows:

Bill List Approval – February 2010

Mr. Freedman presented the Bill List for the Month of March 2010 for the operating expenses of the Fund in the amount of $216,287.49 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 Bill List for March 2010 in the amount of $216,287.49.

Chairman Schupp entertained a motion for approval for payment of the Bill List for March 2010 in the amount of $216,287.49.

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

Motion by Mr. Spoltore, seconded by Mr. Sasdelli, to approve payment of the Bill List for March 2010 in the amount of $216,287.49.

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 February 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 March 17, 2010 Executive Committee Meeting of the ACMJIF.

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

The meeting was adjourned at 4:15 PM.