NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND October 24, 2018 Perth Amboy Housing Authority Birchwood at Perth Amboy Building 10:30 PM

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1 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND October 24, 2018 Perth Amboy Housing Authority Birchwood at Perth Amboy Building 10:30 PM Meeting Called to Order by Chairman Robert DiVincent. Open Public Meeting Statement read into the record. Salute to American Flag ROLL CALL OF EXECUTIVE COMMITTEE: Chairperson Robert DiVincent West New York Housing Authority Present Secretary Sherry Sims Boonton Housing Authority Present Board of Commissioners John Mahon Bayonne Housing Authority Absent Joseph Billy Summit Housing Authority Present John Clarke New Brunswick Housing Authority Absent Douglas Dzema Perth Amboy Housing Authority Absent Kathleen DiTomasso Woodbridge Housing Authority Present ALTERNATE EXECUTIVE COMMITTEE MEMBERS: Larry Stratton South Amboy Housing Authority Present Grace Dekker Berkeley Housing Authority Absent Susan Thomas Middletown Housing Authority Absent Eric Chubenko Carteret Housing Authority Absent Anthony Feorenzo Hackensack Housing Authority Present Michelle Thorne Edison Housing Authority Present APPOINTED OFFICIALS PRESENT: Executive Director Perma Risk Management Services Steve Sacco Present /Administrator Attorney DeCotiis, Fitzpatrick Cole & Frank Borin Present Giblin, LLP Underwriting Mgr Conner Strong & Buckelew Edward Cooney Absent Co-Treasurers Execu-Tech, Inc. William Snyder Louis Riccio Absent Present Claims Service Qual-Lynx Kathleen Kissane Absent Safety Director PMA James Rhoads Present Auditor Nisivoccia & Co. Valerie Dolan Absent Actuary Actuarial Advantage Dennis Henry Absent Managed Care Qual-Lynx Lisa Gallo Present Marketing Warren Risk Marketing, LLC Jack Warren Present ALSO PRESENT Pamela Mitchell, Passaic HA Jack Zisa, RMC Shakira Stanford, RMC Patti Fahy, RMC

2 Claudia Acosta, Qual-Lynx Tracy Lopez, Perma Salute to American Flag In the absence of Commissioner Mahon, Commissioner Thorne served as a voting alternates during the September meeting. APPROVAL OF MINUTES: September 24, 2018 Open Minutes MOTION TO APPROVE THE OPEN MINUTES AS REFERENCED ABOVE Commissioner Mahon Fund Attorney requested a slight adjustment in the order of the agenda as the Managed Care Provider has to leave for another meeting and has asked to be placed first on the agenda. MOTION TO ALLOW MANAGED CARE PROVIDER TO REVIEW AGENDA ITEMS PRIOR TO BEING EXCUSED FOR A SUBSEQUENT MEETING Managed Care Managed Care provider referred to the monthly report for September which outlined total charges of $97,273 which were repriced for $26,218 resulting in a total savings of $66,055 or 72%. The claims pierced the network at a rate of 98%. Managed Care provider also advised that a meeting with Atlantic City Housing Authority had taken place on October 17, 2018 which went very well. The overall savings to Atlantic City Housing Authority utilizing the network providers provided by Qual-Lynx to date is 66%. The staff that we met with was very pleased with the network of providers and they are implementing positive risk management to reduce their claims. Correspondence Executive Director said the Plainfield Housing Authority has provided a letter of intent to consider alternate options inclusive of the Fund for the membership term. Underwriting Manager In the absence of the Underwriting Manager, Executive Director referred to the listing of the recently issued certificates of insurance on behalf of the members of the Fund. ADMINISTRATION REPORT

3 Pro Forma Reports Executive Director reviewed the monthly Fund monitoring reports as distributed which included the July Financial Fast-Track, Fixed Income Interest Rate Summary Comparison and the November Expected Loss Ratio Analysis, Claim Activity Report, Lost Time Accident Frequency Report and the All JIFs Lost Time Accident Frequency. The status listing of the EPL/POL program compliance and Regulatory Check List was also reviewed Budget Executive Director said normally the Finance Committee meets once prior to the budget introduction meeting of October for the upcoming year, however this year the Finance Committee met in September and October, 2018 to review the proposed 2019 Budget and assessment strategies due to the financial position of the Fund. Based on the recommendation of the Finance Committee, the overall budget has increased over the standard 2%; the first large increase for the NJPHA JIF. Executive Director reviewed the Budget beginning with the lines 1-5 noting that these lines are promulgated by the Fund s actuary and are set aside to pay claims for members of the Fund, the largest increase within these lines is the property loss fund which has increased by 31% or $291,000. Line 6 outlines the loss fund contingency which the Committee decided to increase should one of the other lines fall short during the 2019 Fund year. Executive Director continued noting lines represent the premiums for the MEL with exception to line 16 which is the premium that is billed directly from the carrier-qbe for the Employment Practices/Public Officials coverage. To date the NJPHA JIF has the worst loss ratio for EPL/POL coverage out of the 19 JIFS insured within the MEL; however the overall increase for this line of coverage is $32,577 or 5.76%. Executive Director said the Committee agreed that all professional fees for the Fund will remain flat due to the financial condition of the Fund. Executive Director continued by review of line 46 which represents a surcharge amount, the program which was implemented several years ago wherein a surcharge was applied to poor performing members with high loss ratios of the fund; that amount was then redistributed to better performing members; this year that amount will remain in the budget. The overall budget has increased by $995,978 or 11%. Executive Director asked there were any questions regarding the 2019 Budget. Commissioner Dzema asked for clarification on line 26 of the budget, RAD/Non-Profit review; Executive Director said this amount is set aside, as approved in prior years for additional services provided by the Fund Attorney. With no other questions asked, MOTION TO INTRODUCE THE 2019 BUDGET IN THE AMOUNT OF $10,044,978 AND SCHEDULE A PUBLIC HEARING ON NOVEMBER 13, 2018 AT THE TROPICANA HOTEL CASINO, ATLANTIC CITY, NJ AT 3:00 P.M. MAMBO 4 ROOM.

4 Residual Claims Fund (RCF) ADMINISTRATION Ms. Lopez said the public hearing on the RCF budget was held on October 17, :30 a.m. at the Forsgate Country Club. Commissioner Sims s report was reviewed as distributed. In addition, the Fund should nominate its 2019 representative to the RCF. Currently, Commissioner Sims is the RCF representative. Chairman DiVincent asked Commissioner Sims if she would like to continue as the RCF representative for the 2019 Fund year. Commissioner Sims said is truly happy being involved on the RCF Board; they are very productive and added that she has learned so much. Chairman DiVincent asked for any other nominations, hearing none, MOTION TO NOMINATE COMMISSIONER SHERRY SIMS TO SERVE AS THE FUND'S REPRESENTATIVE TO THE RCF FOR THE YEAR MEL Report Ms. Lopez said the MEL s 2019 budget introduction was held on October 17, 2019 at the Forsgate Country Club in Jamesburg NJ. s report was reviewed as distributed. Also, the MEL's nominating committee will be beginning its deliberations during the November meeting. The Fund should nominate its 2019 representative to the MEL. Currently, is the Fund s MEL representative. Chairman DiVincent asked if he would like to continue as the MEL representative for the 2019 Fund year. s responded yes and added that there have been some successes on legal battles and the MEL is representing all the Funds very well. Chairman DiVincent asked for any other nominations, hearing none, MOTION TO NOMINATE COMMISSIONER JOHN CLARKE TO SERVE AS THE FUND'S REPRESENTATIVE TO THE MEL FOR THE YEAR Commissioner Dzema Membership Renewals Ms. Lopez said there are 41 members that are scheduled to renew their three-year membership at year end. Membership renewal notices were mailed to each respective member; we await formal submittal from 13 member authorities.

5 November/December Meeting Updates Ms. Lopez said the November and December meetings have been confirmed; the date, time and location for each will be advertised and distributed to the members of the fund, fund professionals and risk management consultants (The Claims Committee will meet will meet prior to each meeting): November: December: November 13, 2018 December 7, :00 PM 10:00 AM Tropicana Casino/Hotel (Mambo 4) Perth Amboy HA Birchwood Building 2831 Boardwalk 618 New Brunswick Avenue Atlantic City, NJ Perth Amboy, NJ Treasurers Report Fund Treasurer also confirmed, with exception to Cook s Pond, all 2018 assessments have been received. Fund Treasurer referred to and reviewed the August report as distributed With regards to the 2019 proposed budget; Fund Treasurer said he and Mr. Snyder were heavily involved in the process of the budget; it is unfortunate that we are having a bad year, however we look forward to next year being a better year. We would encourage members to implement training within their authorities, participate in the MEL Safety Institute for training, obtain additional training with maintenance staff etc, and take what is learned and apply it to the work place. There are many losses that are preventable losses and could potentially reduce the Funds claims experience. October Bill List FUND YEAR AMOUNT 2018 Year $ 108, Total $ 108, MOTION TO APPROVE RESOLUTION #24-18 OCTOBER 2018 BILL LIST, AND ACCEPT THE TREASURERS REPORT AS DISTRIBUTED. Marketing Commissioner Thorne Marketing Director said the over-all membership of the JIF is at 89 members throughout the State. As noted previously, there are 41 members scheduled to renew membership within the Fund; we have received renewal submissions from twenty-eight of the members. Follow up is being completed for the remaining 13 members. Marketing Director thanked the Finance Committee and PERMA for the work put into the 2019 budget, although this may be a little tough this coming year, we believe the Fund remains the best option for the members.

6 Attorney Fund Attorney said the RFQ/RFPs were received on October 23, 2018 at 2:00 PM and noted the responses for Fund Attorney, Fund Auditor, Subrogation Attorney and Defense Attorney positions. The RFQ/RFPs will be reviewed and a recommendation will be made at the January Reorganization meeting. Following the January meeting Fund Attorney will meet with defense attorneys to review expectations for the 2019 Fund year. Safety Safety Director reviewed the most recent listing of consultations as of September which included a visits to several member Housing Authorities. Safety Director also referred to the second quarter loss analysis outlining Workers Compensation and All Lines coverage. Safety Director also commented on the fire canisters discussed last month, there are two members that have contacted the vendor at September conference to move forward on the purchase of the fire canisters. Recalls included the All-pro and defiant solar-powered outdoor LED light fixtures, Merge Playground Climbers and Ozark Trail Camp Axes. Safety Director said there was a recent serious workplace work place injury associated with the use of a circular saw; a lessons learned document will be distributed on the proper use of a circular saw. In addition, as a matter of immediate notification, there is a requirement within the PEOSH Standard that requires the reporting of any insured worker admitted to a hospital due to a workplace injury. Safety Director said that all technical bulletins are outlined within the agenda but was concerned that perhaps they are not reaching the appropriate departments for member Authorities; it was requested that the Fund office distribute bulletins electronically to Fund Commissioners to distribute to their respective personnel. Claim Review Committee Claims Administrator said there were a total of six (6) PARs reviewed by the Claims Committee this morning, one (1) of which was over $50,000 and summarized for Board review. MOTION TO ACCEPT THE REPORT OF THE CLAIMS COMMITTEEE AND APPROVE THE PARS AS PRESENTED BY THE CLAIMS ADMINISTRATOR Commissioner Sims Old Business None

7 New Business None. Public Comment None MOTION TO ADJOURN THE MEETING Commissioner Thorne Commissioner DiTomasso Meeting adjourned at: 11:00 AM

8 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Resolution #24-18 OCTOBER 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the New Jersey Public Housing Auth. 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. FUND YEAR 2018 CheckNumber VendorName Comment InvoiceAmount QUAL-LYNX MANAGED CARE SERVICES 10/18 6, , DECOTIIS, FITZPATRICK, COLE & GIBLIN LLP SEPTEMBER GENERAL COUNSEL RETAINER 3, , QUAL-LYNX CLAIM ADJUSTING SERVICES 10/18 16, , PERMA EXECUTIVE DIRECTOR FEE 10/18 26, PERMA SEPTEMBER POSTAGE , CONNER STRONG & BUCKELEW UNDERWRITING FEE 10/18 1, , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES 10/18 3, , NJ ASSOC OF HOUSING & REDEVELO 4TH QTR SPONSOR FEE 10, , ASBURY PARK PRESS ACCT: ASB LEGAL ASBURY PARK PRESS ACCT:ASB FC MTG EXECU TECH, INC FINANCE COMM MTG EXECU TECH, INC 4TH QTR TREASURER FEE 10/18 19, , EXECU TECH, INC WEBSITE MAINTENANCE 10/ NJ ADVANCE MEDIA ACCT: XNJPU MTG CNCL

9 WARREN RISK MARKETING, LLC MARKETING 10/18 2, , PMA COMPANIES, INC. RISK CONTROL SERVICES 10/18 6, , NJ NAHRO 3RD QTR INSTALLMENT , , ALLSTATE INFORMATION MANAGEMNT ACCT#862 - ARC & STOR SHERRY L. SIMS PHA MEETING ATTENDANCE 9/ GRACE DEKKER PHA MEETING ATTENDANCE 9/ JOSEPH M. BILLY, JR. PHA MEETING ATTENDANCE 9/ SUSAN THOMAS PHA MEETING ATTENDANCE 9/ WEST NEW YORK HOUSING AUTHORIT PHA MEETING ATTENDANCE 9/ LARRY STRATTON PHA MEETING ATTENDANCE 9/ BAYONNE HOUSING AUTHORITY PHA MEETING ATTENDANCE 9/ CARTERET HOUSING AUTHORITY PHA MEETING ATTENDANCE 9/ HACKENSACK HOUSING AUTH. PHA MEETING ATTENDANCE 9/ EDISON HOUSING AUTH. PHA MEETING ATTENDANCE 9/ WOODBRIDGE HOUSING AUTHORITY PHA MEETING ATTENDANCE 9/18 Total Payments FY ,709.15