OPEN SESSION MINUTES

ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND
OCEAN CITY LIBRARY
1735 SIMPSON AVE
OCEAN CITY, NEW JERSEY
April 20, 2011 - 3:00 P.M.

OPEN SESSION MINUTES

The meeting of the Atlantic County Municipal Joint Insurance Fund (ACMJIF) was held on April 20, 2011, at Ocean City Library, 1735 Simpson Ave, Ocean City, New Jersey, at 3PM, prevailing time. Fund Chairperson Bonnie Yearsley, Weymouth Twp, presiding.  The meeting was called to order at 3:02 PM.

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.

Those in attendance were:

Terrance Dolan, Absecon

Andrew Bednarek, Avalon

Karen Thomas, Brigantine

Robert Smith, Cape May

Connie Mahon, Cape May Point

Jud Moore, Commercial

Carol Foster, Corbin City

Richard DeVillaSanta, Downe

Karen Seifrit, Deerfield

Glenn Clarke, Dennis

Peter Miller, Egg Harbor Township

Linda Kent, Representing, Estell Manor

Michael Jacobs, Hamilton

Frank Zuber, Hammonton

Richard Hirsch, Longport

Claudia Kammer, Lower

Lisa McLaughlin, Margate

Tracey Taverner, Alternate, Middle

Susan Robostello, Millville

Dawn Stollenwerk, Mullica

James Dickinson, Northfield

Joann Cioeta, Ocean City

George Savastano, Sea Isle City

Roy Spoltore, Secretary, Upper Deerfield

Theresa Smuz, Upper Township

James Goos Alternate, Ventnor

Bonnie Yearsley, Chair, Weymouth

Kim Hodsdon, Representing, Wildwood

Janelle Holzmer, Alternate, Wildwood Crest

Lisa Garrison, Woodbine

Absent were:

Joseph Santagata, Buena Borough

Greg Schenker, Folsom

Dennis Krause, Galloway

Edward Beck, Linwood

Michael Carrow, Newfield

Robert Matteucci, North Wildwood

Chief Robert Hoffman, Pleasantville

Lucy Samuelson, Port Republic

Howard Dill, Somers Point

James Nicola, Stone Harbor

Ralph Condo, Waterford

Robert Flynn, West Cape May

Herbert Frederick, West Wildwood

Also present were:

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

David DeWeese, Esquire, Fund Solicitor

Ted Freedman, Treasurer

Joanne Hall, Safety Director, J.A. Montgomery

Kathy Tyler-Schohl, Scibal Associates

Karen Beatty, Client Service Manager, QualCare

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

D’Agostino Agency

William R. Mints Agency

McMahon Agency, Inc.

Maran Corporation Risk Associates

Siracusa-Kauffman Insurance

Glenn Insurance

MLR Risk Management

C. J. Adams Company

Atlantic Associates

J. Byrne Agency, Inc.

Marsh & McLennan Agency

Hardenberg Insurance

Gerber Insurance

Conner Strong Insurance

First Alternate Karen Seifrit, Deerfield, was moved up to Executive Committee

 in the absence of Dennis Krause.

APPROVAL OF MINUTES – OPEN SESSION

Chair Yearsley entertained a motion to adopt the meeting minutes of the March 16, 2011 Executive Committee Meeting as presented.

Motion by Mr. Moore, seconded by Ms. McLaughlin, to approve the meeting minutes of the March 16, 2011 Executive Committee Meeting as amended.  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.

Chair Yearsley entertained a motion to adopt the Closed Session Meeting Minutes of the March 16, 2011 Meeting of the Fund as presented.

Motion by Mr. Clarke, seconded by Ms. McLaughlin, to approve the Closed Session minutes of the March 16, 2011 Executive Committee Meeting as presented.  All in favor.  Motion carried by unanimous vote.

The Closed Session meeting minutes of the March 16, 2011 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.

Confidential Closed Session Meeting Minutes were collected.

CLOSED SESSION - RESOLUTION #2011-28

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.

Chair Yearsley entertained a motion to adopt Closed Session Resolution 2011-28 as presented.

Motion by Ms. Thomas, seconded by Ms. McLaughlin, to adopt Resolution 2011-28.

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

REOPEN PUBLIC PORTION OF THE MEETING

Chair Yearsley entertained a motion to reopen the public portion of the meeting.

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

APPROVAL OF CLAIMS PAYMENTS

Chair Yearsley presented the claims for payment as discussed in Closed Session.

Chair Yearsley asked if there were any questions at this time.  No questions were entertained.

Chair Yearsley entertained a motion to approve the claims for payment as discussed in Closed Session.

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

Worker’s Compensation

Property

General

Liability

Auto

Liability

E82801

W83445

U35805

W71019

E70453

W87325

U22054

E78778

W83216

W81192

E79918

W86325

W23057

E80880

U61164

E67504

W56421

W80428

U63510

W80190

U65344

W80308

U46694

W83135

U59899

W69117

U86209

W80193

E73341

W79664

E74648

E66163

W80566

E78120

E81153

W79912

E83217

W85909

E80785

E84081

U59892

E72002

E71068

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

APPROVAL TO ABANDON SUBROGATION

Chair Yearsley presented the claims discussed in Closed Session for Abandonment of Subrogation.

Chair Yearsley asked if there were any questions at this time.  No questions were entertained.

Chair Yearsley entertained a motion to Abandon Subrogation on the following six (6) files as presented in Closed Session and as recommended by the Fund Solicitor.

E70453

$9,038.09

E78778-01

E78778-02

$333.35

$7,480.10

E79918

$2,030.00

E80880

$148.48

E75007

$785.00

E80263

$261.62

Motion by Mr. Spoltore, seconded by Mr. Moore to approve Abandoning Subrogation on the six (6) files presented in Closed Session and as recommended by the Fund Solicitor.

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

CLAIMS REVIEW COMMITTEE REPORT – OPEN SESSION ITEMS

Mr. Forlenza reported on the Claims Review Committee meeting minutes from April 14, 2011 in Mr. Goodreau’s absence. He noted they serve as a handout to the membership and are self-explanatory.

He highlighted the following items:

PARs

The Committee reviewed forty-three (43) claims at the April 14th meeting.  Of the claims reviewed, twenty-eight (28) Workers’ Compensation (11 Police, 4 Fire, 6 Streets, 7 Other) Ten (10) General Liability, One (1) Auto, and Four (4) Property PARs.

Return to Work with Limited Restrictions:  Mr. Forlenza noted that on pg 4 of the minutes it details an important issue.  The Committee discussed that several of the files reviewed, claimants were sustaining injury to the same body part that had been the basis of the prior claim.  Mr. Forlenza noted that he and Ms. Lihou have seen a trend where members are accepting employees back to work with permanent restrictions.  Unfortunately, the employees are not working within those permanent restrictions and the employees are re-injuring the same body part again.  During the meeting Mr. Krause expressed his opinion that members need to stop returning employees back to work that have permanent restrictions.  And noted that although it can be difficult to let an employee go, inevitably, it seems the employee will get injured again.  He also indicated that the members need to take a greater responsibility in this area.

Contract Language – Mr. Forlenza noted that on the top of pg 8 there is a discussion that everyone should review.  Scibal is reporting seeing language in municipal contracts where the municipality is actually waiving its right to pursue subrogation.  Failure to identify and remove this language is very serious and significantly diminishes Scibal’s ability to pursue third parties.  Mr. Forlenza noted that any contract should hold the municipality harmless, indentify you for others negligent acts and provide defense to you.  Make sure someone is reviewing the contratcs before you sign them.  The website has contract language needed to protect you and types of certificates of insurance required.  Please utilize this resource.  Mr. DeWeese added that the RMC’s should be reviewing all of these.  Mr. Forlenza recounted a tragedy from another public entity where the COI was incorrect and now the public entity, who hired a landscaping company, is paying for a significant injury from a very serious accident to a day laborer hired by the landscaping company.  In this case, the public entity has become the default employer of the day laborer because the landscaping company did not have workers compensation insurance.

Chair Yearsley asked if there were any questions at this time.  No other questions were entertained.

EXECUTIVE DIRECTOR’S REPORT

Mr. Forlenza reviewed the Executive Director’s Report found in the agenda packet with the membership. 

-       2010 Safety Incentive Program Awards Mr. Forlenza noted a report detailing the available balance for each member for the 2010 Safety Incentive Program is attached for the members review.  Individual award letters and instructions on claiming these funds were emailed to members on March 4th.  The deadline for claiming or encumbering these funds is December 31, 2011.  All encumbered funds must be claimed by February 1, 2012. 

-       2011 Optional Safety Budget - Mr. Forlenza noted a report detailing the available balance for each member participating in the 2011 Optional Safety Budget is attached for the members review.  Instructions on claiming these funds were emailed to participating members on February 11th.  The deadline for claiming or encumbering these funds is December 31, 2011.  All encumbered funds must be claimed by February 1, 2012.

Financial Disclosure Forms Mr. Forlenza noted that all Financial Disclosure forms received were filed with the State on April 11th, 2011.  Any received after this date will be submitted under separate cover by the April 30th, 2011 deadline.

-       Payroll Audits – Mr. Forlenza noted that the audits are being conducted by Angelina Paul of Overland Solutions.  If you haven’t already been contacted by Ms. Paul, she will be contacting each member within the next few weeks to schedule an appointment.

-       Property Appraisal ProcessMr. Forlenza noted that Members due for a physical inspection during 2011 will be contacted by a Property Appraiser from ASSETWORKS.  Those that are not receiving a physical inspection in 2011 will have their building and contents values trended accordingly.

-       Quarterly Loss Ratio Snapshots – Mr. Forlenza mentioned that the Loss Ratio Snapshots were handed out this afternoon for each member’s review.  The RMCs were also provided copies for the towns they represent.  The snapshots include claims for JIF, MEL, and EPL/POL claims for Fund Years 2005-2010 and charts how each member is doing compared to the Fund overall.  Included with each Snapshot is a listing of claims that were reported for these years as of March 31, 2011.  Please review the claims listed for their accuracy.

Mr. Forlenza asked if there were any questions at this time.  There were no questions.

Chair Yearsley entertained a motion to approve Resolution 2011-29, Authorizing the Executive Director to Execute the Required New Jersey Division of Records Management Forms for the Destruction of Duplicate Claims Files and Authorizing the Destruction Thereof as presented.

Chair Yearsley asked if there were any questions at this time.  No questions were entertained.

Motion by Mr. Clarke, seconded by Ms. McLaughlin to approve the Resolution 2011-29

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

MEL/RCF REPORTS

Mr. Hirsch had nothing to report noting that the next RCF meeting is scheduled for June 1st, 2011.

SOLICITOR’S REPORT

-       Mr. DeWeese noted he had nothing for open session since all was covered in closed session.  Chair Yearsley asked if there were any questions at this time.  No questions were entertained.

SAFETY DIRECTOR’S REPORT

Ms. Hall stated that the Safety Director's Report is self-explanatory.  She highlighted the following items:

-       Contractor Safety– Ms. Hall reminded members of the Contractor Safety Seminar that is being held on May 18th at 12:30 and it’s being offered in the TRICOJIF on May 23.

Ms. Hall asked if there were any questions at this time.  No questions were entertained.

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

Ms. Tyler-Schohl highlighted the following reports:

-       Lessons Learned from Losses –Ms. Tyler-Schohl noted that the MEL POL/EPL Corner is included.  It includes the statistics from the fourth quarter of 2010.  The MEL paid $4,111,921.00 in the fourth quarter and $17,511,229.00 in 2010 for legal bills and losses.  $2,299,512.00 was paid in settlement amounts.  Four claims were resolved on behalf of the ACMJIF in the fourth quarter amounting to $327,425.00 including legal expenses.  Ms. Tyler-Schohl briefly discussed the four claims. 

-       Contract Language – Ms. Tyler-Schohl reiterated what Mr. Forlenza said earlier regarding contract language.

Chair Yearsley asked if there were any questions at this time.  No questions were entertained.

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

Lost Time v. Medical Only Cases

Ms. Beatty presented the ACMJIF Lost Time v. Medical Only Cases (Intake Report) for March 2011.


Month Average

Lost Time

8

Medical Only

40

Record Only

16

Total

64

Record Only % of Total

25%

Medical Only/Lost Time Ratio

83:17

The report shows that the average number of days to report a claim is 2.3 with 4 members over the three (3) day ideal reporting time this month.

Ms. Beatty presented the self-explanatory PPO Penetration Rate Report for March 2011.

PPO Penetration Rate

February

Bill Count

1274

Original Provider Charges

$1,515,717

Re-priced Bill Amount

$654,329

Savings

$850,075

% of Savings

56%

Ms. Beatty noted that the next few pages of the report are the types of providers, who the providers are, and where the Fund is realizing the greatest savings.

Ms. Beatty noted that her report depicts the facilities with the greatest payments followed by the type of facility (Ortho/Neuro) in the first quarter of 2011.  This seems to be a trend throughout the JIFs.

Ms. Beatty stated that the last report is the Nurse Case Management report.  It shows the member, claim number, and the nurse case manager assigned to the claim.

Ms. Beatty also told the members that she has for distribution, the Workplace posters and wallet cards.  There are copies of the WC pamphlet which is now in print.  Please take some upon leaving.

Ms. Beatty asked if there were any questions at this time.  No other comments or questions were entertained.

TREASURER’S REPORT

Mr. Freedman presented the Treasurer’s Report for March 2011.  The report was made part of the April 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 2011 and 2010 are in detail to itemize expenses, all other years are summarized.

The total budget balance, assuming collection of all 2011 assessments, as of March 2011 is $55,874,266. That balance must be reduced by future case reserves for a net balance of $32,384,745.

The actual cash and investment balance is $35,945,170.  The net change in Fund balance was a decrease of $989,778.

The Closed Year’s funds include the budget year 1987-2006.  The Close Years balance is $11,976,093.

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 $34,149 was earned at the blended rate of 1.13% for the month.

The Fund has 9 bond/ notes in the portfolio; 2 mature in less than 2 years; and 7 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 $1,035,160.25.  A total of 685 checks were issued to vendors.  Subrogation and salvage in the amount of $74,350.06 were posted during the month.  Prior period reimbursements and voided checks during the month totaled $28,004.34.

Financial Activity of the ACMJIF

Budget Status

Mr. Freedman reported a Balance of $55,874,266 with Net Reserves of $32,384,745.

Investment Report

Mr. Freedman noted that the actual interest earnings for the month of March 2011, net of any unrealized gain or loss is $34,149.00 at 1.13%. 

Receipts Activity for the Month

Mr. Freedman reported that the Receipts Activity of the month totaled $267,008.69 including the impact of the unrealized loss in interest earnings.

Assessments

$85,727.00

Refunds/Reimbursements/Subrogation

$127,696.01

Investment Payments/Adjustment

$53,250.68

MEL Payments – Closed Years

$335.00

Other (Expense Refunds)

$0.00

Claims Activity

Mr. Freedman reported that the Claims Activity for the month totaled $1,035,160.25.

Direct Loss Payments

$885,167.18

Claims Expenses

$43,847.53

Legal Defense Costs

$106,145.54

Mr. Freedman asked for approval for payment of the above-mentioned Claims Activity for the month of March 2011 in the amount of $1,035,160.25.

Motion by Mr. Moore, seconded by Ms. Thomas, to approve the Claims Activity as submitted by Mr. Freedman.

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

Cash Activity for the Month

Mr. Freedman reported the cash activity for March 2011 as follows:

Opening Balance

$36,862,675

Ending Balance

$35,945,170

Increase/(Decrease)

$(917,505)

Bill List Approval - April 2011

Mr. Freedman presented the Bill List for the month of April 2011 in the amount of $989,778.30 as presented in the agenda. 

Motion by Mr. Clarke, seconded by Mr. Moore, to approve the April 2011 Bill List as presented by Mr. Freedman.

ROLL CALL

Yeas:

Judson Moore, Commercial

Lisa McLaughlin, Margate

Glenn Clarke, Dennis

Karen Thomas, Brigantine

Karen Seifrit, Deerfield

Roy Spoltore, Upper Deerfield

Bonnie Yearsley, Weymouth

Nays:

None

Abstained:

None

All in favor.  Motion carried by unanimous vote.

Assessments

Mr. Freedman reminded members that the due date for the 2nd Quarter Assessment is May 16th, 2011.  Any members having Treasurers needing to contact Mr. Freedman may do so by calling 609-484-3622.

West Wildwood still needs to make the 1st Quarter Assessment payment.  Mr. Freedman will contact them.

Loss Run Reconciliation

Mr. Freedman reported on the reconciliation of all three reports from the Loss Run for the month of March 2011.

Mr. Freedman asked if there were any questions at this time.  No questions were entertained.

COMMITTEE REPORTS

SAFETY COMMITTEE REPORT

In Mr. Beck’s absence, Mr. Forlenza noted that on pg 130 of the agenda packet you can find the Safety Committee Meeting minutes.  He explained that much of the meeting was spent discussing the Safety Director’s 2010 Annual report.   He noted that anyone wanting a copy of the Safety Director’s 2010 Annual report should contact Ms. Hall and she will email it to the member.

Mr. Forlenza noted that on pg 135 the Safety Director highlights some towns where she has concerns with their current performance.

Mr. Forlenza stated that on pg 137 members can review discussions regarding members up for renewal on January 1, 2012.  A Safety Director survey for renewing members is currently in process.

Mr. Forlenza asked if there were any questions.  No questions were entertained.

EPL COMMITTEE MEETING REPORT

Loss Ratio Reports - Ms. Cioeta noted that the meeting was held prior to today’s Executive Committee meeting so the report is verbal.  She stated that the Committee reviewed the Loss Ratio reports which the members just received.  The Committee also reviewed the number of claims (16) in the first quarter.  Ms. Cioeta noted that this is not bad.  Of those sixteen, four (4) are going to mediation, two (2) that may go to mediation, two (2) were declined for coverage, one (1) was assigned to defense counsel, and one (1) was  withdrawn.

Member Visits

Ms. Cioeta noted that on February 16th, Estell Manor was visited by Ms. Tyler-Schohl, Mr. DeWeese, Mr. Forlenza and Mr. Miola.  A written response was received after the visit listing what they learned and what they planned to do to improve their loss ratio.

Ms. Cioeta noted that on February 22nd, they visited Wildwood.  A written response was also received.

Ms. Cioeta noted that on April 8th, they visited West Wildwood.  There was no response received as of yet.

The next scheduled meetings are Egg Harbor Twp on April 22nd, Ocean City on May 12th and Margate still TBD.

The next meeting for this Committee will be held on July 20th, 2011 at 1:30pm.

MISCELLANEOUS BUSINESS

New Fund Commissioners

Chair Yearsley welcomed new Fund Commissioner Greg Schenker of Folsom and Robert Matteucci of North Wildwood.

Next Meeting

The next regular ACMJIF Meeting will be held on Wednesday, May 18, 2011 at 3:00PM, at Ocean City Public Library, 1735 Simpson Ave, Ocean City, NJ.

PUBLIC COMMENT

Chair Yearsley opened the meeting for public comment.  Hearing no comments, Chair Yearsley closed the meeting for public comment.

MOTION TO ADJOURN

Motion by Mr. Moore seconded by Ms. McLaughlin, to adjourn the April 20th, 2011 Meeting of the ACMJIF.  Motion carried by unanimous vote.

The meeting was adjourned at 3:46 PM.

_________________________________
Tracy Forlenza, Recording Secretary for

__________________________________________
ROY SPOLTORE,

FUND SECRETARY


 

© 2012 Atlantic County Joint Municipal Insurance Fund. All rights reserved.


ACMJIF
ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND

www.acmjif.org



Site Navigation Map









site developed by
JoyceMedia Web Design


JoyceMedia Web Design



problems with this website?
email webmaster