SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND MINUTES MEETING JUNE 20, 2018 LODI MUNICIPAL BUILDING 4:30 P.M.

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1 SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND MINUTES MEETING JUNE 20, 2018 LODI MUNICIPAL BUILDING 4:30 P.M. Meeting called to order by Mr. Hansen. Open Public Meeting Act read into Minutes by Chairman. Pledge of Allegiance ROLL CALL OF 2018 EXECUTIVE COMMITTEE: Chairman John Hansen East Rutherford Present Vice Chairman Frank Bianchi Lyndhurst Present Secretary Gregory Franz Borough of Edgewater Present Executive Committee Charles Cuccia Borough of Maywood Absent Peter Van Winkle Borough of Rutherford Absent Dominick Azzolini Borough of Wood Ridge Present Joseph Crifasi Borough of Carlstadt Present ALTERNATES Al Restaino #1 Borough of Fort Lee Present Chris Eilert #2 Borough of South Hackensack Present Steve Lo Iacono #3 Borough of North Arlington Absent Paula Cozzarelli #4 Borough of Little Ferry Present APPOINTED OFFICIALS PRESENT: Executive Director/ Administrator Perma Risk Management Services Stephen Sacco Present Attorney Paul Barbire Present Underwriting Manager Conner Strong & Buckelew Absent Ed Cooney Claims Services Bergen Risk Managers Kathleen McGuire Present Treasurer Joseph Iannaconi, Jr. Present Safety Director JA Montgomery Brian Maitland Absent (1) South Bergen Municipal J I F

2 OTHERS PRESENT: Jason Thorpe, Perma Barry Connolly, RMC Kim Cosimano, RMC Ezio Altamura, RMC Sharon Fallon, RMC Jack Zisa, RMC APPROVAL OF MINUTES: MAY 16, 2018 MOTION TO APPROVE OPEN AND CLOSED MINUTES FOR THE ABOVE REFERENCED MEETING: MOVED: Commissioner Azzolini Commissioner Eilert CORRESPONDENCE: None MEETING OPENED TO PUBLIC FOR COMMENT: None PUBLIC COMMENT PORTION OF THE MEETING CLOSED MOTION TO ENTER INTO EXECUTIVE SESSION FOR CERTAIN SPECIFIED PURPOSES: PERSONNEL - SAFETY & PROPERTY OF PUBLIC LITIGATION Moved: Second: Vote: Commissioner Crifasi Commissioner Eilert MOTION TO ADJOURN EXECUTIVE SESSION MOTION: Commissioner Azzolini Commissioner Crifasi (2) South Bergen Municipal J I F

3 MOTION TO APPROVE PAYMENT OF CLAIMS AS DISCUSSED IN EXECUTIVE SESSION: WC GL GL GL GL GL GL WC WC WC WC WC MOTION: Commissioner Restaino Commissioner Bianchi TREASURER Mr. Iannaconi referred to the Monthly Financial Report which contained an overview of the transactions that took place for the month relative to the financial portfolio of the Fund was introduced. He also referred to the June Bills List enclosed within the agenda packet. RESOLUTION JUNE VOUCHER PAYMENTS (BILL LIST): 2017: $ 15, : $ 319, TOTAL: $ 334, MOTION TO APPROVE CERTIFICATION OF CLAIMS & CONFIRMATION OF CLAIMS PAYMENTS FOR THE MONTH OF MAY AND RESOLUTION JUNE VOUCHER LIST AS SUBMITTED: MOVED: Commissioner Eilert Commissioner Cozzarelli Treasurer's Reports Attached and Made Part of the Minutes (3) South Bergen Municipal J I F

4 EXECUTIVE DIRECTOR: FINANCIALS Mr. Sacco referred the Committee to the Financial Fast Track enclosed within the agenda booklet. He reported that the Fund is continuing to monitor deficits in the 2015, 2017 and 2018 fund years but noted that there is surplus in the other fund years to extinguish those deficit. He informed the Board that the Fund s overall statutory surplus for all fund years combined is 7.2 million. Mr. Sacco advised that claims are running approximately 4% higher than at the same point in He noted that the majority of claims are Workers Comp and Property due to the winter. RESIDUAL CLAIMS FUND Mr. Sacco said the Residual Claims Fund met on June 7, 2018 at the Forsgate in Jamesburg and referred to Commissioner Franz s report on the meeting. He reported that the RCF Board voted to accept a recommendation to transfer open liabilities from local JIFs at 60 months instead of 54 months, which will allow claims to develop longer and provide greater certainty on reserves. He advised that the RCF will take formal action confirming this transfer at their September meeting. He further advised that local JIFs will be asked to pass a resolution transferring their Fund Year 2014 liabilities at their September/October meetings. EJIF MEETING Mr. Sacco said the E-JIF also met on June 7, 2018 and referred to Commissioner Franz s report enclosed in the agenda. EJIF MEMBERSHIP RENEWAL Mr. Sacco informed the Board that the South Bergen JIF is scheduled to renew their membership in the EJIF effective January 1, He then referred to Resolution #20-18 renewing the JIF s membership. MOTION TO ADOPT RESOLUTION #20-18 RENEWING THE SOUTH BERGEN JIF S MEMBERSHIP IN THE NJ MUNICIPAL ENVIRONMENTAL RISK MANAGEMENT FUND EFFECTIVE JANUARY 1, MOVED: Commissioner Bianchi Commissioner Cozzarelli MEL MEETING Mr. Sacco said the MEL met on June 7, 2018 and referred to Commissioner Cuccia s report on the meeting. LEGISLATIVE ALERT Mr. Sacco informed the Board that during the month of June, the Fund Office distributed a Legislative Alert on three bills pending action. He advised that the bills, as presently constituted, will cause major increases in municipal insurance costs. Mr. Sacco noted that members are being asked to adopt resolutions in support of amendments to those bills. He then referred to Resolution #21-18 and asked if there were any questions and/or comments. Commissioner Eilert commented that while the goal of mitigating risk and mitigating exposure makes perfect sense, he feels that there are elements of the resolution that may not reflect favorably on the Fund in terms of public perception and how first responders are treated. (4) South Bergen Municipal J I F

5 MOTION TO ADOPT RESOLUTION #21-18 URGING THE LEGISLATURE TO AMEND S-716; S-477 AND S-1766 MOVED: Commissioner Restaino Commissioner Bianchi 7 ayes, 0 nays, 1 abstention Commissioner Eilert ADMINISTRATIVE: 2018 PROPERTY APPRAISALS Mr. Thorpe reported that property appraisals are scheduled to begin during the month of June. He then referred to the list of members having their property appraised during 2018 and noted that AssetWorks will be contacting those members to schedule their fieldwork appointments. SAFETY EXPO Mr. Thorpe informed the Board that the MEL is working with the New Jersey Utility Authorities Joint Insurance Fund (NJUA) to conduct its Annual Safety Expo which includes MEL member town s water & sewer employees. He noted that the Safety Expos will be held on June 29 th at the Middlesex County Fire Academy and September 28 th at the Camden County Emergency Services Training Center. ATTORNEY: Mr. Barbire referred the Committee to his report contained in the agenda booklet. SAFETY REPORT: Mr. Sacco informed the Board that Mr. Maitland and Mr. Schulz were unable to attend the meeting. He then referred to the May activities and the April agenda. UNDERWRITING MANAGER: Safety Report Attached and Made Part of the Minutes Mr. Thorpe referred to the list of certificates issued for the month. (5) South Bergen Municipal J I F

6 Underwriting Certificates made part of the Minutes MANAGED CARE: Ms. McGuire referred the Committee to her report contained in the Agenda packet. She informed the Committee that during the month of May there was a savings of $243, or 55% on the medical billing for Workers Compensation claims. Ms. McGuire reported that the Nurse Case Manager currently has a caseload of 28. She added that during the month of May the Nurse assisted in returning 2 employees to either light duty or full duty. OLD BUSINESS: None. NEW BUSINESS: None MOTION TO ADJOURN MEETING MOTION: Commissioner Azzolini Commissioner Bianchi MEETING ADJOURNED: 4:40 pm NEXT MEETING: July 2018 Lodi Borough Hall Jason Thorpe, Assisting Secretary For Gregory Franz, SECRETARY (6) South Bergen Municipal J I F

7 SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND BILLS LIST Resolution No JUNE 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the South Bergen Municipal Joint Insurance Fund s Executive Board, hereby authorizes the Fund treasurer to issue warrants in payment of the following claims; and FURTHER, that this authorization shall be made a permanent part of the records of the Fund. (7) South Bergen Municipal J I F

8 (8) South Bergen Municipal J I F

9 RESOLUTION NO RESOLUTION TO RENEW MEMBERSHIP NEW JERSEY MUNICIPAL ENVIRONMENTAL RISK MANAGEMENT FUND WHEREAS, the New Jersey Municipal Environmental Risk Management Fund ( E- JIF ), a nonprofit public entity in the State of New Jersey, was formed pursuant to N.J.S.A. 40A:10-36 et seq. to provide risk management for member Joint Insurance Funds ( JIF ) against bodily injury and property damage claims arising from environmental impairment liability and legal representation therefor to the extent and for coverages approved by the Commissioner of Banking and Insurance; and WHEREAS, in accordance with N.J.S.A. 40A:10-42, the E-JIF may provide coverage to its member JIFs by self-insurance, the purchase of commercial insurance or reinsurance, or any combination thereof; and WHEREAS, such coverage more specifically includes Third Party Liability, First Party Coverage, Public Officials Liability, De Minimus Abandoned Toxic Waste Sites Buy-Out, Legal Services and Storage Tank Systems Coverages; and WHEREAS, the purchase of such coverage by the E-JIF is exempt from public advertising and bidding requirements pursuant to N.J.S.A. 40A:11-5(1)(a)(ii) and 40A:11-5(1)(m) as an extraordinary unspecifiable service ( EUS ) so long as the contract entered into is awarded in accordance with the requirements for EUSs; and WHEREAS, pursuant to N.J.S.A. 40A:65-14, the governing bodies of two or more Local Units may enter into an agreement to provide for the formation of the joint operation of any public services, public improvements, works, facilities, or undertakings which the local units are empowered to operate; and WHEREAS, pursuant to N.J.S.A. 40A:65-9 et seq. the E-JIF shall obtain coverage on behalf of its members JIFs in accordance with the Local Public Contracts Law; and WHEREAS, in accordance with N.J.S.A. 40A:10-36 et seq., a JIF wishing to join the E-JIF to obtain the benefits of joint public entity membership may do so by adopting a resolution; and WHEREAS, the Executive Committee/Fund Commissioners of the South Bergen Municipal Joint Insurance Fund has determined that membership in the E-JIF is in the best interests of the member Local Unit. NOW THEREFORE BE IT RESOLVED that the Executive Committee/Fund Commissioners of the South Bergen Municipal Joint Insurance Fund do hereby resolve and agree to renew their membership in the E-JIF for a period of three (3) years, effective January 1, 2019; and (9) South Bergen Municipal J I F

10 BE IT FURTHER RESOLVED that the application for membership is for the purpose of obtaining the following types of coverages: Section I Section II Section III Section IV Section V Third Party Liability On-Site Clean-up Costs Public Officials Pollution Liability De Minimus Abandoned Waste Sites Storage Tank Systems BE IT FURTHER RESOLVED that the Chairman of the South Bergen Municipal Joint Insurance Fund or other authorized representative, is authorized and directed to execute any and all written agreements necessary for membership in the E-JIF including, but not limited to, the Indemnity and Trust Agreement in order to implement membership by the South Bergen Municipal Joint Insurance Fund in the E-JIF according to its Bylaws, N.J.S.A. 40A:10-36 et seq.), administrative regulations and any other statutes or regulations pertaining thereto. SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND (10) South Bergen Municipal J I F

11 RESOLUTION NO RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND URGING THE LEGISLATURE TO AMEND S-716, S-477 AND S-1766 Whereas: The South Bergen Municipal Joint Insurance Fund insures 23 municipalities, and Whereas: While it is commendable that legislation is being considered to provide additional compensation to Firefighters with cancer, S-716 as currently written, without responsible amendments, will prove to be very expensive to municipalities and taxpayers, and Whereas: While it is also commendable that the statute of limitations is being extended for claims involving sexual abuse, S-477 as currently written would eliminate the statute of limitations entirely leaving officials and volunteers with the near impossible task of defending a claim that is decades old. Whereas: Under current law family members can already collect substantial compensation for actual losses such as medical bills, lost income as well as loss of companionship. Whereas: Without appropriate amendments, the combined impact of these bills would devastate local government insurance budgets at a time when the local taxpayers are being squeezed because of changes in the Federal Tax code. Now therefore be it resolved by the South Bergen Municipal Joint Insurance Fund that: S-716 be amended to provide that the cancer presumption be limited to types of cancer that scientific evident establishes that Firefighters develop at a higher rate than the general public, and S-716 be amended to end the presumption at age 65 when the firefighter becomes eligible for Medicare. Alternatively, S-716 should be amended to remove volunteers and establish a special program for them along the lines recently adopted by New York, Connecticut, Michigan, Colorado and Georgia, and S-716 also be amended so that the standard to rebut the presumption remains at the current preponderance of the evidence, and S-477 be amended to increase statute of limitation on claims involving sexual molestation against public entities to 7 years, subject to no limitation against the molester, and S-1766 be amended to remove public entities from emotional distress compensation for wrongful death claims subject to Title 59, and A copy of this resolution be forwarded to the Governor, the legislative delegation representing Bergen County, the Governor, the Senate President and the Speaker of the Assembly. SOUTH BERGEN JOINT INSURANCE FUND (11) South Bergen Municipal J I F