ATLANTIC COUNTY MUNICIPAL JOINT INSURANCE FUND
OCEAN CITY LIBRARY
1735 SIMPSON AVE
OCEAN CITY, NEW JERSEY
September 21, 2011 - 3:00 P.M.

OPEN SESSION MINUTES

The meeting of the Atlantic County Municipal Joint Insurance Fund (ACMJIF) was held on September 21, 2011, at Ocean City Library, 1735 Simpson Ave, Ocean City, New Jersey, at 3PM, prevailing time. Fund Chair Yearsley, Weymouth, presiding.  The meeting was called to order at 3:01 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

Andy Bednarek, Avalon (arrived 3:04pm)

Joseph Santagata, Buena Borough

Robert Smith, Cape May City

Connie Mahon, Cape May Point (arrived 3:08pm)

Jud Moore, Commercial

Carol Foster, Corbin City

Karen Seifrit, Deerfield

Glenn Clarke, Dennis

Linda Kent, Estell Manor

Greg Schenker, Folsom

Ray Farrell, Alternate, Galloway

Ingrid Perez, Alternate, Hamilton

Frank Zuber, Hammonton

Edward Beck, Linwood

Richard Hirsch, Longport

Daniel Adams, Alternate, Margate

Mark Mallett, Middle

Susan Robostello, Millville

Dawn Stollenwerk, Mullica

Chief Robert Matteucci, North Wildwood

James Dickinson, Northfield

Joann Cioeta, Ocean City

Chief Robert Hoffman, Pleasantville

George Savastano, Sea Isle City

James Nicola, Stone Harbor

Roy Spoltore, Secretary, Upper Deerfield

Theresa Smuz, Upper Township

Sandra Biagi, Ventnor

William Richardson, Alternate, Waterford

Chris Ridings, Alternate, West Wildwood

Bonnie Yearsley, Chair, Weymouth

Kim Hodsdon, Wildwood

Kevin Yecco, Wildwood Crest

Absent were:

Karen Thomas, Brigantine

Richard DeVillaSanta, Downe

Peter Miller, Egg Harbor Twp

Claudia Kammer, Lower

Michael Carrow, Newfield

Lucy Samuelson, Port Republic

Howard Dill, Somers Point

Robert Flynn, West Cape May

Lisa Garrison, Woodbine

Also present were:

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

David DeWeese, Esquire, Fund Solicitor

Ted Freedman, Treasurer

Joanne Hall, Safety Director, J.A. Montgomery Risk Control

Alice Lihou, Director of Acct Mgmt, Scibal Associates

Karen Beatty, Client Service Manager, QualCare

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

Atlantic Associates

C. J. Adams Company

Chris Ferry Insurance Agency

Conner Strong & Buckelew

Donald C. Cost

D’Agostino Agency

Gerber Insurance

Glenn Insurance

Hardenberg Insurance

J. Byrne Agency, Inc.

Maran Corporation Risk Associates

Marsh & McLennan Agency

McMahon Agency, Inc.

William R. Mints Agency

MLR Risk Management

Robert Sames Agency

Siracusa-Kauffman Insurance

Kerry G. Thomson Insurance Agency

Alternates Karen Seifrit, Deerfield and Ed Beck, Linwood and Terrance Dolan, Absecon, were moved to the Executive Committee in the absence of Lisa McLaughlin, Margate, and Karen Thomas, Brigantine and Dennis Krause, Galloway.

APPROVAL OF MINUTES – OPEN SESSION

Chair Yearsley entertained a motion to adopt the meeting minutes of the August 17, 2011 Executive Committee Meeting as presented.

Motion by Mr. Moore, seconded by Mr. Spoltore, to approve the meeting minutes of the August 17, 2011 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.

Chair Yearsley entertained a motion to adopt the Closed Session Meeting Minutes of the August 17, 2011 Meeting of the Fund as presented.

Motion by Mr. Clarke, seconded by Mr. Moore, to approve the Closed Session minutes of the August 17, 2011 Executive Committee Meeting as presented.  All in favor.  Motion carried by unanimous vote.

The Closed Session meeting minutes of the August 17, 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 #2011-39

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 2011-39 as presented.

Motion by Mr. Beck, seconded by Mr. Spoltore to adopt Resolution 2011-39.

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. Seifrit, 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. Beck seconded by Mr. Spoltore, 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

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 four (4) files as presented in Closed Session and as recommended by the Fund Solicitor.

Motion by Mr. Moore, seconded by Mr. Clarke to approve Abandoning Subrogation on the four (4) files presented in Closed Session and as recommended by the Fund Solicitor.

All in favor.  Motion carried by unanimous vote.

CLAIMS REVIEW COMMITTEE REPORT – OPEN SESSION ITEMS

Mr. Miola reported on the Claims Review Committee meeting minutes from September 8, 2011. He noted they serve as a handout to the membership and are self-explanatory.

He highlighted the following items:

PARs

The Committee reviewed twenty-eight (28) claims at the September 8^th meeting.  Of the claims reviewed, twenty-three (23) Workers’ Compensation (9 Police, 3 Fire, 3 Streets, 8 Other); Three (3) General Liability, and Two (2) Property PARs.

Mr. Miola noted that he was extremely pleased that due to member preparation prior to Hurricane Irene, all the member towns fared very well!  He thanked all the members for their efforts in minimizing claims. 

Ms. Lihou concurred with his statements.  She also noted that risk management is a daily occurrence and with all the programs in place it helps, but we can always do more.

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

EXECUTIVE DIRECTOR’S REPORT

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

Lost Time Accident Frequency Report – Mr. Miola noted that the August Summary Report and Statewide Recap are included in the agenda packet.

Certificates of Insurance – Mr. Miola asked that they become a part of the minutes for the meeting.

2010 Safety Incentive Program Awards – Mr. Miola noted a report detailing the available balance for each member for the 2010 Safety Incentive Program is attached for the members review.  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. Miola noted a report detailing the available balance for each member participating in the 2011 Optional Safety Budget is attached for the members review.    The deadline for claiming or encumbering these funds is December 31, 2011.  All encumbered funds must be claimed by February 1, 2012.

Employment Practices Liability Coverage - Mr. Miola noted that a compliance status report is attached for your review.  He stated that this report was updated effective January 1^st to include EPL loss history for Fund Years 2005 through 2009 to determine member’s individual deductibles.  Mr. Miola stated that the errors in the report were corrected.

EPL Allowance – Mr. Miola reminded the members of the funding that can be used by each member for employment practices related expenses such as training. 

EPL Helpline – Authorized Contact List – Mr. Miola reminded the members to review the contacts and to utilize the EPL Helpline.  He asked members to contact his office if there is a change.

Financial Fast Track Report – Mr. Miola noted that the report provides a snapshot of the JIF’s financial status as of July 31, 2011.

Monthly Activity Calendar – Mr. Miola noted that this is included in the agenda packet and has also been posted on the website.

Skateboard Parks – Mr. Miola mentioned that if you are considering a skateboard park, please contact their office before you begin the process.

Statutory Bond Status – Mr. Miola stated that the MEL is issuing bonds for those positions requiring them.  In order for the employee to be covered, they must have the proper underwriting process completed.  Mr. Miola also noted that these bonds are written in the name of the individual, not the position.  If the individual changes, you must complete a new application.

Renewing Members – Mr. Miola noted that since the agenda packet has gone out:  Corbin City, Egg Harbor Twp, Ocean City are reviewing other quotes; West Wildwood and Weymouth have renewed;  Port Republic has decided to joined the Statewide JIF.

Elected Officials Training – Mr. Miola reminded the members of the $250 credit given to the MEL liability loss funding premium and asked the members to review the schedule for Elected Officials training noting Atlantic County sessions on December 6, 2011 in Vineland and January 31, 2012 in Hammonton.  There will be a session held at the League of Municipalities on Wednesday at 3:45pm and it’s called, Elected Officials Training:  How to Eliminate Liability Claims.  There are several similarly named sessions so please note this title.

Managerial & Supervisors Training – Mr. Miola asked the members to review the schedule for this training.  This helps the members comply with the MEL mandated managers & supervisors training.  The Atlantic County sessions are November 2, 2011 and March 6, 2012.  There are eight (8) different sessions being held.  Invites will be going out shortly.

Annual Planning Retreat – Mr. Miola noted that the ACM JIF Retreat is October 18^th and 19^th at the Flanders Hotel in Ocean City, NJ.   Invitations were emailed out already.  Claims Coordinators are urged to come on day 2 (Oct 19^th) for the workers’ compensation topics.

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

MEL/RCF REPORTS

Mr. Hirsch noted that the MEL met on September 7, 2011.  His report is in the agenda packet, but highlighted the following items:

2012 Budget – There will be a 2% increase in liability claims funds, no rate change for workers’ compensation and 2.5% rate increase for property claims.  Mr. Hirsch noted these rates are preliminary and can change.

McMullen vs. Maple Shade Twp – Mr. Hirsch noted that he brought a copy of the recent court decision with him for review.

Rules and Contract Review – Mr. Hirsch noted the MEL issued a RFQ for professional services for 2012 through 2015.  Due to the multiple responses for the positions of Claims Administrator, Managed Care and Fund Auditor, it was given to a subcommittee for review.

Safety Expo – Mr. Hirsch reminded members that the MEL Safety Expo was being held on September 23, 2011 in Blackwood, NJ.

2012 MEL Budget – Mr. Hirsch noted that the 2012 preliminary budget was released and the budget hearing will be October 19, 2011.  The adjusted budget is $24,236,561.00.

SOLICITOR’S REPORT

Subrogation File Summary Report

Mr. DeWeese noted the following Subrogation File Summary:

Assignment of New Cases

Mr. DeWeese reported that there were six (6) new complaints filed, which have been assigned to defense counsel.  He noted that this is the first time in a while that no files were closed during the month reporting that there are 92 active files.

Mr. DeWeese 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:

2012 MSI Training Program Planning – Ms. Hall noted that the 2012 MSI training schedule is out.  If you are interested in hosting a class, please let her know the date and time.  The date for replying has been extended to September 30.  Your facility needs to hold 50 people and have 15 pre-registered (towns can combine to reach the minimum number).

Safety Expo – Ms. Hall noted that they will be trying a Safety Expo delivery method in 2012.  They will be holding a Safety Expo around Cumberland County offering several different safety sessions.

Police Chief Roundtable- Ms. Hall informed the members that the police chief’s roundtable scheduled for October has been postponed and rescheduled for early December.  Note that a Police Adhoc Committee meeting is scheduled for early November.

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)

Lessons Learned from Losses – September 2011 - Ms. Lihou reported that claims are avoidable.  She noted that risk management and preparedness is a year-round function. Limiting exposure for Atlantic JIF on a daily basis is what really keeps claims in control.  Inspection and documentation programs help defenses under Title 59.  Inspecting, documenting and correcting defective conditions are important in defending these claims.  As a member of our Defense Counsel says, “Documentation is your salvation.”

Ms. Lihou 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 August 2011.

The report shows that the average number of days to report a claim is 2.1 with no claims over the three (3) day ideal reporting time this month.

PPO Penetration Report:

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

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.

Transitional Duty Report

Ms. Beatty presented her self-explanatory Year-to-Date Transitional Duty Report through August 31, 2011.

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 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 August 2011.  The report was made part of the September 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 August 2011 is $47,812,346. That balance must be reduced by future case reserves for a net balance of $22,211,134.

The actual cash and investment balance is $38,266,875.  The net change in Fund balance was an increase of $3,034,349.

The Closed Year’s funds include the budget year 1987-2006.  The Close Years balance is $12,408,217.

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 $28,457 was earned at the blended rate of .93% for the month.

The Fund has seven (7) bond/ notes in the portfolio; one (1) matures in less than one year; none mature in less than two years and six (6) mature in more than two years. 

There were five (5) 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 $917,962.55.  A total of 630 checks were issued to vendors.  Subrogation and salvage in the amount of $29,693.06 were posted during the month.  Prior period reimbursements and voided checks during the month totaled $5,322.96.

Financial Activity of the ACMJIF

Budget Status

Mr. Freedman reported a Balance of $47,812,346 with Net Reserves of $22,211,134.

Investment Report

Mr. Freedman noted that the actual interest earnings for the month of August 2011, net of any unrealized gain or loss is $28,457 at .93%. 

Receipts Activity for the Month

Mr. Freedman reported that the Receipts Activity of the month totaled $4,138,466.03 including the impact of the unrealized loss in interest earnings.

Claims Activity

Mr. Freedman reported that the Claims Activity for the month totaled $917,962.55.

Mr. Freedman asked for approval for payment of the above-mentioned Claims Activity for the month of August 2011 in the amount of $917,962.55.

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 August 2011 as follows:

Bill List Approval - September 2011

Mr. Freedman presented the Bill List for the month of September 2011 in the amount of $167,790.78 as presented. 

Motion by Mr. Beck, seconded by Mr. Spoltore, to approve the September 2011 Bill List as presented by Mr. Freedman.

All in favor.  Motion carried by unanimous vote.

Loss Run Reconciliation

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

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

COMMITTEE REPORTS

FINANCE COMMITTEE – September 9, 2011 meeting

Ms. Stollenwerk reported on the September 9^th Finance Committee meeting.  She noted that as previously reported the 2008 Fund Year’s deficit is approximately $564,000 and 2010 Fund Year’s deficit is $3.2 million.  This is why the Fund has always been conservative with the dividend release so that it has surplus to rely on in difficult times.  Ms. Stollenwerk noted that the deficit in the 2008 Fund Year will be taken care of by June 2012.  The Committee’s recommendation is that the Fund surplus release recognize the possible deficit in 2008.  Ms. Stollenwerk noted that the Finance Committee is therefore recommending the surplus release of $1.25 million.  A copy of the resolution to authorize this release is attached to the Finance minutes.

Ms. Stollenwerk noted that any deficit generated by the 2010 Fund Year will be dealt with around 2013 when it’s transferred to the RCF.

Adoption of Resolution # 2011-40 Authorizing a Release of Surplus

Chair Yearsley entertained a motion to approve the Adoption of Resolution # 2011-40 Authorizing a Release of Surplus as presented.

Motion by Mr. Spoltore, seconded by Mr. Moore, to adopt resolution 2011-40 to Authorizing a Release of Surplus.  All in favor.  Motion carried by unanimous vote.

All in favor.  Motion carried by unanimous vote.

Ms. Stollenwerk noted that the Committee is waiting on the final MEL numbers to complete the 2012 budget.  The Committee will meet at the end of October to look at the final numbers and look to introduce the budget in November.

EHT Renewing Issue

Ms. Stollenwerk noted that there were still four (4) members that have not committed to renewing their membership in the JIF.    She also mentioned that prior to the meeting Egg Harbor Twp had asked for an extension of the renewal deadline of October 1, 2011.  She stated that the members need to find a balance of being able to get quotes from outside JIFs and renewing in the Atlantic JIF.  Egg Harbor Twp has asked that an extension of the October 1^st deadline be considered by the Executive Committee.

Mr. Yecco questioned why the Fund would change its renewal dates and deadlines when those towns have an entire 9 months to get quotes?

Matt Corcoran, RMC for EHT, stated that they are unable to get the quotes from the other JIFs the deadline to renew with the Atlantic JIF.

Mr. Miola commented that in order to introduce the budget in November, we need to know the renewing member’s intentions to develop the budget.  This is stated in the bylaws, which are governed by the Dept of Insurance.  He also stated that the Finance Committee released an indication of premiums to the renewing members.  Other JIFs can also provide rate indication as well.  Mr. Miola’s concern was that some of these members where merely price shopping and nothing else.  They should be concerned about the financial condition of the pool, getting a proper coverage analysis, finding out who is on the defense panel, and who handles their claims.  This should be done with a full RFP.

Mr. Yecco noted that our number one priority is to protect the members.  Mr. Bednarek noted that with the 16 members up for renewal, 11 indicated their preference already.  He noted that Avalon was able to get their quotes and make their decision well before the October 1^st deadline.

Mr. Miola also stated that this JIF is financially stable.  There is $12 million in surplus to protect the membership.

Mr. Corcoran commented that the Garden State JIF won’t release their numbers until October 15^th and Atlantic JIF wants the renewal indication by October 1 so it’s a “Catch 22” situation. 

Mr. DeWeese explained to the members that they can’t amend or change the Fund Bylaws by October 1^st.  A Committee needs to review the proposed Bylaw changes; the changes then need to be presented to the Department of Community Affairs/Banking and Insurance; then they need to go in front of every governing body of every member of this JIF for approval and three-quarters of the members need to approve the change which is dictated by the state regulations.

Further discussion ensued and Ms. Stollenwerk asked if there was anything we can do.  Mr. DeWeese noted that in his professional opinion, due to the Fund Bylaws which dictate the procedure, there is no provision for an extension or waiver this year.

Ms. Stollenwerk asked that we add this to the Retreat agenda.

Hamilton Twp

Ms. Stollenwerk reported that Hamilton Twp asked to be considered for a premium reduction this year due to a reduction in exposures. Mr. Jacobs, Township Administrator, Hamilton Twp, still has some questions about this matter.  Ms. Stollenwerk noted the next Finance meeting is October 27 and she invited Mr. Jacobs to attend.

OPERATIONS AND PLANNING COMMITTEE

Mr. Bednarek stated that the Ops and Planning Committee met on September 14, 2011.  The minutes will be included in the October Agenda packet.  He highlighted the following items from the Committee meeting agenda: 

Elected Officials training

Mr. Bednarek noted that the Elected Officials training is coming up and please review the dates.

Website

Mr. Bednarek commented that the JIF website was being redesigned and to make it more user friendly.

Meeting Location

Mr. Bednarek mentioned that the Executive Committee locations are still being discussed for 2012.  He thanked Ocean City and Cape May Technical School for hosting the meetings in 2011.

RMC Model Agreement

Mr. Bednarek noted that the RMC Model Agreement is a draft of the new agreement has been reviewed in Committee.  He also commented that a RMC Confidentiality Agreement is being discussed as well.

December Dinner

Mr. Bednarek reported that there will be no December Dinner Meeting due to lack of funding.

Name Change

Mr. Bednarek stated that the Ops and Planning Committee has recommended that they changed their name to the Strategic Planning Committee to better suit what the Committee’s purpose.

Annual Reports

Mr. Bednarek noted that the annual reports will not be printed and will only be posted to the website to save money.

Planning Retreat

Mr. Bednarek reminded the members to attend the Planning Retreat on Oct 18^th and 19^th in Flanders Hotel, Ocean City, NJ.

MISCELLANEOUS BUSINESS

Next Meeting

The next regular ACMJIF Meeting will be held on Wednesday, October 19, 2011 at 11:00AM, at The Flanders Hotel, Ocean City, NJ after the retreat.

PUBLIC COMMENT

Mr. Yecco asked if the Finance Committee was not prepared to finalize an assessment strategy because of the members that have not indicated they are renewing in the Fund.  Ms. Stollenwerk noted that we are not voting on the budget this evening.

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

MOTION TO ADJOURN

Motion by Mr. Moore seconded by Mr. Clarke, to adjourn the September 21th, 2011 Meeting of the ACMJIF.  Motion carried by unanimous vote.

The meeting was adjourned at 3:59 PM.