SUBURBAN ESSEX JOINT INSURANCE FUND SEPTEMBER 20, 2016 NUTLEY ANNEX BUILDING 9:30 AM

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1 SUBURBAN ESSEX JOINT INSURANCE FUND SEPTEMBER 20, 2016 NUTLEY ANNEX BUILDING 9:30 AM The meeting was called to order by Chairman Mauro Tucci. Open Public Meeting Notice read into record. Pledge of Allegiance ROLL CALL OF 2016 FUND COMMISSIONERS: Mauro Tucci, Chair Township of Nutley Present David Drumeler, Sec Town of Secaucus Absent Thomas Duch City of Garfield Absent John Serapiglia, Jr. Passaic Manchester Regional HS Absent Danielle Ireland Borough of Prospect Park Absent Joseph Catenaro Fairfield Township Absent Steve Rovell Belleville Township Present Carrie Nawrocki Hudson Reg l Health Commission Absent Allan Susen Borough of Haledon Absent Karen Yeamans Nutley Board of Education Absent Richard Budris Essex Reg l Health Commission Absent 2016 FUND COMMISSIONER ALTERNATES: Charles Voorhees Town of Secaucus Present Vincent Cozzarelli Belleville Township Absent Andrew J. Pavlica City of Garfield Present Brian Zinn Manchester Regional HS Absent John Marmora Nutley Bd. Of Ed. Present Marisol Leguizamon Hudson Reg l Health Commission Present Leena Abaza Borough of Haledon Absent Grace Murray Essex Reg l Health Commission Present APPOINTED OFFICIALS PRESENT: Executive Director/Administrator Attorney Claim Services Treasurer Safety Underwriter Managed Care Perma Risk Management Services Cathleen Kiernan Piro, Zinna, Cifelli, Paris & Genitempo James Piro Qual-Lynx Robert Fox - Absent William Homa J.A. Montgomery Risk Control David McHale Conner Strong & Buckelew Edward Cooney - Absent FMCO Mary Bresadola

2 OTHERS PRESENT: Caty Lambe, Qual-Lynx Carol Backer, Qual-Lynx Joe Rude, RMC Joe Maurillo, IMAC Insurance Dawn Makowski, Al Alexander Insurance Robert Searle, C. Robert Searle Insurance Marie Vicchiariello, C. Robert Searle Insurance Frank DeMaio, Nutley Township Mary Fenui, Nutley Township Keri Ann Glentowicz, Secaucus Town Thomas Fitzpatrick, Fairview Insurance Frank Covelli, PIA Insurance Ken Schulz, Conner Strong & Buckelew Tracy Lopez, Perma APPROVAL OF MINUTES: July 19, Open Minutes July 19, Closed Minutes MOTION TO APPROVE OPEN AND CLOSED MINUTES AS NOTED ABOVE MOTON: Commissioner Marmora Correspondence - None 2017 Renewal Online Underwriting Database EXECUTIVE DIRECTOR REPORT Executive Director said members were asked to update their underwriting data in the Exigis underwriting database for the 2017 budget. The deadline to complete, review and submit schedules was August 15, 2016; the Fund office will be following up with members to complete the process. Executive Director added that the MEL is in the third year of a three year contract with Exigis; as a result the MEL released an RFQ on August 30, 2016 for Risk Management Information/Operation System (database) with a return date of October 4, RCF/EJIF/MEL Executive Director said the RCF, the MEL and the EJIF each met at their respective times September 7, 2016 at the Forsgate Country Club in Jamesburg, NJ. Residual Claims Fund (RCF) Executive Director said the Residual Claims Fund amended 2016 Budget (copy attached) and the proposed 2017 Budget (copy attached) was introduced during the meeting of September 7, The 2016 amended budget includes the transfer of the 2012 year which included a $23M amendment to budget for which each member JIF transfers all open claims for that year; a portion of that premium is used for the operating budget for the 2017 fund year. The public

3 hearing on the RCF budgets will be held on October 19, :30 AM at the Forsgate Country Club. EJIF Executive Director referred to the EJIF report as distributed noting that the attached 2017 Budget was introduced and will be presented for formal adoption at the October 19, 2016 meeting. In addition, the EJIF has approved a return dividend of $550,000 which will be issued as a premium credit against members 2017 assessment. Executive Director also referred to the EJIF Bulletin distributed by the EJIF Underwriting Manager emphasizing the importance of due diligence relating to various property acquisitions and divestiture. As part of the EJIF services, the Fund offers a property screen as a first step in the necessary due diligence process prior to acquiring property.. MEL Chairman Tucci referred to the MEL report as distributed noting that the 2017 preliminary budget, rate table and experience modification factors were submitted to the Board reflecting an increase of.6% using 2016 exposures and limits. The 2017 budget introduction will take place during the October 19 th meeting. Chairman Tucci noted other highlights within the report namely, the POL/EPL task force which was formed to address issues rising out of POL/EPL policy language on land use claims. The task force consists of representative from the North, Central and South Jersey; coverage council and the underwriting manager. The MEL would like to have the language completed by year end for the January issued policies. Chairman Tucci said the Management Committee is in the process of scheduling interviews with respondents of the Marketing RFQ issued by the MEL. Chairman Tucci added that the MEL Board authorized an amendment to its contract with Rutgers University to assist our members in managing their risks relative to Cyber Security. Employment Practices Program Executive Director said changes to the 2017 POL/EPL Program are posted on the MEL s webpage which details changes to the MEL s Model Personnel Manual and information on training program requirements. Members have until October 1 st to submit checklist to qualify and/or maintain deductible and co-pay incentives. Compliance includes updating Personnel Manuals, Training Managers & Supervisors, Police Command Staff and offering training to non-supervisory personnel. Membership Renewals As of December 31, 2016, Nutley Board of Education is the one member scheduled to renew their three-year membership term within the Fund; required membership renewal documents have been submitted by the Board of Education.

4 New Member Prospects Executive Director said the Township of Montclair and the Town of Kearny have submitted underwriting data for 2017 quotes. We are currently reviewing the underwriting detail and will update the Board of Commissioners during the October meeting. Retrospective Premium Executive Director said in accordance with the Retrospective Premium Program adopted by the Fund in 2010, we are in the process of preparing member reports on their claims experience for Fund years 2012, 2013 and 2014, including reserves and incurred but not reported reserves (IBNR). Haledon Board of Education has triggered the retrospective premium for Fund year 2012 which is now billable since that year is transferring to the RCF. Executive Director reminded members that the year is not billable until the year is transferred to the RCF; if a retrospective premium is paid prior to the year being transferred and billed, there is a possibility that the premium may be adjusted prior to billing based upon the outcome of the claims and IBNR factors; therefore the amount shown in projected premiums within distributed reporting can be budgeted but not payable until billed Policy Member Manuals The Fund office distributed the 2016 Policy Member Manuals to all Fund Commissioners and Risk Managers via on August 18, Pro Forma Financial Reports Executive Director reviewed monthly reports which included Financial Fast-track, Interest Rate Summary Comparison, Loss Ratio Analysis by fund year and line of coverage, Claim Activity Report, Lost Time Accident Frequency, Lost Days Report and MSI Usage report. In addition, the Regulatory Checklist, EPL/POL status report and the current list of Risk Management Consultant agreements were reviewed. Chairman Tucci added that representatives from the MEL met with the Senate Majority office to discuss legislative initiatives that would expand our investments opportunities. TREASURER REPORT CONFIRMATION OF AUGUST PAYMENTS/VOUCHERS FUND YEAR AMOUNT 2015 $ 6, $ 75, Total $ 81, The annualized rate of return on investments as of July 31, 2016 was 0.916%.

5 CONFIRMATION OF CLAIMS PAYMENTS/CERTIFICATION OF TRANSFERS FOR THE MONTH OF JULY 2016: 2012: $ 5, : $ 13, : $ 27, : $ 77, : $ 56, RESOLUTION #19-16 SEPTEMBER PAYMENTS/VOUCHERS: FUND YEAR AMOUNT 2012 $ 274, $ 74, Total $ 348, The annualized rate of return on investments as of August 31, 2016 was 0.825%. CONFIRMATION OF CLAIMS PAYMENTS/CERTIFICATION OF TRANSFERS FOR THE MONTH OF AUGUST 2016: 2012: $ 9, : $ 22, : $ 40, : $ 83, : $ 86, MOTION TO APPROVE THE REPORT OF THE TREASURER, CONFIRMING THE AUGUST BILL LIST, ADOPT RESOLUTION #19-16 APPROVING THE SEPTEMBER BILL LIST AND APPROVE CONFIRMATION & CERTIFICATION OF CLAIM TRANSFERS, AS SUBMITTED. MOTION: Commissioner Pavlica Treasurer's Report & Investment Report made part of the minutes. ATTORNEY Fund Attorney referred to and reviewed the agenda report as distributed. UNDERWRITING MANAGER Attorney report made part of the minutes Underwriting Manger s report was reviewed as distributed outlining the certificate of insurance listing as previously issued. Executive Director added that the marketing of excess insurance is moving forward and expected to be at or below expiring premiums.

6 MANAGED CARE Managed Care Provider reviewed agenda report as distributed for the month of August 2016 indicating $174,261 in provider bills which were repriced at $72,072 for a total savings of $102,189 or 59%. Managed Care Report made part of the minutes. SAFETY DIRECTOR Safety Director reviewed the report as distributed which reviewed activities for the months of July and August outlining loss control services, safety announcements, MSI Classes and Safety bulletins distributed. Safety Director reviewed a bulletin addressing ladder safety and resources for school crossing guard safety programs. Safety Director further noted that an Active Shooter Workshop is scheduled for September 21, 2016 and September 22, 2016 from 9:00 AM 11:00 AM at the Fair Lawn Community Center, Fair Lawn, NJ; all are invited to attend. Edwin Moore of Homeland Security will provide a discussion to attending municipalities. Safety Director said the Safety Committee will meet at 11:00 AM following the JIF meeting and invited members to attend. CLAIMS SERVICE Closed Session RESOLUTION - EXECUTIVE SESSION FOR CERTAIN SPECIFIED PURPOSES: PERSONNEL - SAFETY & PROPERTY OF PUBLIC LITIGATION. MOVED: Commissioner Marmora MOTION TO RETURN TO OPEN SESSION: MOVED: Commissioner Pavlica MOTION TO APPROVE PAYMENT AUTHORITY REQUESTS FOR FILES NUMBERS AS SUBMITTED MOVED: Commissioner Marmora OLD BUSINESS: None NEW BUSINESS: None

7 PUBLIC COMMENT: Fund Attorney said that we are happy for David Drumeler in his choice to accept a position with the County; however he was a very important person to this JIF and did a great job for the Fund. MOTION TO ADJOURN: MOVED: Commissioner Marmora MEETING ADJOURNED: 10:05 AM NEXT MEETING: October 18, 2016 Nutley Parks & Recreation Building 9:30 AM

8 SUBURBAN ESSEX JOINT INSURANCE FUND BILLS LIST CONFIRMATION OF PAYMENTS AUGUST 2016 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Suburban Essex 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 2015 CheckNumber VendorName Comment InvoiceAmount LERCH, VINCI & HIGGINS LLP AUDITOR FEE 06/30/2016 6, , Total Payments FY , FUND YEAR 2016 CheckNumber VendorName Comment InvoiceAmount FIRST MANAGED CARE OPTION MANAGED CARE SERVICES - 08/ , , QUAL-LYNX CLAIMS ADMIN - 08/ , , J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES - 08/2016 4, J.A. MONTGOMERY RISK CONTROL FOCUS CLAIMS - APR & JUL , PERMA POSTAGE FEE. 07/ PERMA EXECUTIVE DIRECTOR FEE 08/ , , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES - 08/2016 2, , PIRO, ZINNA, CIFELLI, PARIS & ATTORNEY FEE 07/2016 6, , WILLIAM M. HOMA, CPA TREASURER FEE 08/2016 1, , NEWTECH SERVICES, INC. MONTHLY WEBSITE MAINTENANCE/HOSTNG 8/ CONNER STRONG & BUCKELEW UNDERWRITING MANAGER FEE 08/ ALLSTATE INFORMATION MANAGEMNT ACCT: ACT & STOR 06/30/

9 RUSSO & ASSOCIATES LLC INTERNAL AUDITOR FEE 7/23/2016 3, , EMPLOYEE BENEFITS CONSULTING RMC FEE 2ND MANCHESTER REG HS 1, , NJ ADVANCE MEDIA ACCT: XSUBU /8/16 - SYNOPSIS Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $81,801.78

10 SUBURBAN ESSEX JOINT INSURANCE FUND BILLS LIST Resolution No SEPTEMBER 2016 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Suburban Essex 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 CLOSED CheckNumber VendorName Comment InvoiceAmount MUNICIPAL EXCESS LIABILITY RCF 2016 ASSESSMENT - CLOSURE OF FY , , Total Payments Closed Year 274, FUND YEAR 2016 CheckNumber VendorName Comment InvoiceAmount FIRST MANAGED CARE OPTION MANAGED CARE SERVICES - 09/ , , QUAL-LYNX CLAIMS ADMIN - 09/ , , J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES - 09/2016 4, , DYNAMIC TESTING SERVICES LLC ALCOHOL TESTING - 08/10/16 - BELLEVILLE DYNAMIC TESTING SERVICES LLC DRUG TESTING - 08/31/16 - BELLEVILLE DYNAMIC TESTING SERVICES LLC DRUG TESTING - 08/10/ BELLEVILLE DYNAMIC TESTING SERVICES LLC ALCOHOL TESTING - 08/31/16 - GARFIELD DYNAMIC TESTING SERVICES LLC DRUG TESTING - 08/31/16 - GARFIELD CITY DYNAMIC TESTING SERVICES LLC DRUG TESTING - 7/7&20/16 - SECAUCUS DYNAMIC TESTING SERVICES LLC ALCOHOL TESTING - 7/7&20/16 - SECAUCUS DYNAMIC TESTING SERVICES LLC DRUG TESTING - 7/18/16 - FAIRFIELD DYNAMIC TESTING SERVICES LLC ALCOHOL TESTING - 7/18/16 - BELLEVILLE DYNAMIC TESTING SERVICES LLC DRUG TESTING - 7/18/16 - BELLEVILLE DYNAMIC TESTING SERVICES LLC ALCOHOL TESTING - 7/18/16 - FAIRFIELD , PERMA POSTAGE FEE 08/ PERMA EXECUTIVE DIRECTOR FEE 09/ , , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES - 09/2016 2, , PIRO, ZINNA, CIFELLI, PARIS & EMPLOYEE SAFETY & HARASSMENT TRNG 8/2016 4, PIRO, ZINNA, CIFELLI, PARIS & ATTORNEY FEE 08/2016 6,467.33

11 10, WILLIAM M. HOMA, CPA TREASURER FEE 09/2016 1, , NEWTECH SERVICES, INC. MONTHLY WEBSITE MAINTENANCE/HOSTNG 9/ CONNER STRONG & BUCKELEW UNDERWRITING MANAGER - 09/ ALLSTATE INFORMATION MANAGEMNT ACCT: ACT & STOR - 7/31/ NJ ADVANCE MEDIA ACCT: XSUBU /4/16 AUG MTG CNCL Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $ 348,929.13