DeCotiis, Fitzpatrick Cole & Frank Borin

Transcription

1 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND September 24, 2018 Resorts Hotel & Casino, Atlantic City, NJ 4:00 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 Present 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 Present Susan Thomas Middletown Housing Authority Present Eric Chubenko Carteret Housing Authority Present 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 Present Absent Claims Service Qual-Lynx Kathleen Kissane Present 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 Robert Conner, RMC Claudia Acosta, Qual-Lynx Tracy Lopez, Perma

2 Salute to American Flag In the absence of Commissioners Clarke and Dzema, Commissioners Chubenko and Thomas served as a voting alternates during the September meeting. APPROVAL OF MINUTES: July 25, 2018 Open Minutes MOTION TO APPROVE THE OPEN MINUTES AS REFERENCED ABOVE MOTION: SECOND: VOTE: Commissioner Billy Commissioner Mahon Unanimous Correspondence Executive Director said the Orange Housing Authority has provided a letter of intent to consider alternate options inclusive of the Fund for the membership term. Executive Director confirmed a meeting on September 14, 2018 that had taken place with Commissioners and Executive Director of the Authority; we await their decision. Executive Director also noted contact from Plainfield Housing Authority for which they are also considering other options relative to their insurance program; a form letter will be provided. 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. Pro Forma Reports ADMINISTRATION REPORT Executive Director referred to the financial reports as distributed beginning with the June Financial Fast Track, noting that the Fund currently has decreased the statutory surplus by $6,612 for the month and $910,957 for the year. Executive Director referred to the surplus/deficits by fund year which each evidence deficits for 2018, 2017, 2016, 2015 & 2014; the statutory surplus now stands at $2,823,461. Executive Director said that a preliminary 2019 budget workshop was held on September 7, 2018 for which claim data, assessments, deductibles and other options was reviewed; there will be decisions that will need to be made moving forward addressing members with high claim activity. Executive Director had also commented on the possibility of receiving a grant or partial grant from the property excess carrier for implementation of the fire preventing canisters. The Fund has encountered several fires resulting from unattended cooking and this may prevent a large fire and the start of some. We are hopeful for a good response from the carrier however it is not guaranteed. RCF Report Executive Director said the RCF met on September 5, 2018 at the Forsgate Country Club; a copy of Commissioner Sims s report was reviewed as distributed. A copy of the 2018 amended budget and 2019 proposed budget are each included in the report and scheduled for adoption during the October 17, 2018 meeting.

3 Executive Director also referred to Resolution #21-18 as distributed and authorizes the transfer of the NJPHA JIF s Fund Year 2014 liabilities to the Residual Claims Fund as of December 31, 2018 valuation. Motion to adopt Resolution #21-18 authorizing the transfer of Fund Year 2014 Liabilities to the Residual Claims Fund. MOTION: SECOND: VOTE: Commissioners Billy Commissioner Chubenko Unanimous RCF JIF Membership Renewal Ms. Lopez said the NJPHA JIF s three-year membership in the Residual Claims Fund is scheduled to expire on December 31, Enclosed is Resolution #22-18 renewing the membership term effective January 1, 2019 through December 31, Motion adopt Resolution #22-18 renewing the NJPHA JIF s membership in the Residual Claims Fund for a three-year term effective January 1, MOTION: SECOND: VOTE: Commissioner Billy Commissioner Sims Unanimous MEL Report Ms. Lopez said the MEL also met on September 5, 2018 at 11:15 am at the Forsgate Country Club in Jamesburg, NJ; enclosed is a copy of Commissioner Clarke s report. The MEL s 2019 Budget introduction is scheduled for October 17, 2018 at the Forsgate Country Club in Jamesburg NJ. 2019/2020 Employment Practices Program Ms. Lopez said correspondence was mailed to Fund Commissioners and Risk Management Consultants concerning updates to member Employment Practices Programs. Updated Model Personnel Manuals have been posted to the MEL s webpage Deadline to complete program compliance is October 1, As a reminder on the training components: Managers & Supervisors Training Four sessions were scheduled over the months of July and August for members of the NJPHA JIF. A copy of the original notice was distributed to all respective Fund Commissioners and Risk Management Consultants. The Fund is in the process of scheduling an additional training for members that could not attend the sessions originally provided. Members will be notified of the scheduled training. All other/ non-supervisory employees - the video We must respect each other in local government has been added to the MEL Safety Institute to meet this training. Since the Model Personnel Manual was finalized, there has been a decision concerning the Open Public Meetings Act regarding notification to employees that they or their position might be discussed at council meeting. A bulletin provided by the MEL Fund Attorney advising members to adopt amended language was reviewed as distributed.

4 Additionally, members should closely review their Sick Leave policies, since the law changed effective October 29 th concerning sick leave. Request for Qualifications Ms. Lopez said based on prior criteria, the Fund will advertise RFP/RFQ notifications for the positions of Fund Attorney, Subrogation Attorney, Defense Panel and Fund Auditor for the 2019 Fund year. The response date is October 23, 2018 at 2:00 PM. 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 and we will keep the Board informed as they are received. Risk Management Information/Operating System (RMIS) Ms. Lopez said members and risk management consultants received an on August 13 th with a link to renewal worksheets - to begin the 2019 underwriting renewal. Members had until September 15 th to complete the worksheets. Underwriting data is currently being reviewed for the 2019 Budget process. The deadline to complete the schedules was September 15, October Meeting (2019 Budget Introduction) Ms. Lopez said the next meeting is scheduled for October 24, 2018 and will be held at the Perth Amboy Housing authority-birchwood at Perth Amboy, 618 New Brunswick Avenue, Perth Amboy, NJ Treasurers Report Fund Treasurer referred to and reviewed the report as distributed. Fund Treasurer also confirmed the August payments and reviewed the September 2018 bill list - Resolution #23-18

5 Confirmation of August Payments: FUND YEAR AMOUNT 2018 Year $ 68, Total $ 68, September Bill List FUND YEAR AMOUNT 2018 Year $ 91, Total $ 91, MOTION TO APPROVE RESOLUTION #23-18 SEPTEMBER 2018 BILL LIST, CONFIRM AUGUST PAYMENT AND ACCEPTE THE TREASURERS REPORT AS DISTRIBUTED. Marketing MOTION: SECOND: VOTE: Commissioner DiTomasso Commissioner Billy Unanimous 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 will keep the Board apprised of the status of returned renewal documents. Attorney Fund Attorney referred to the agenda report as distributed. 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 as mentioned earlier by the Executive Director; installing the canisters have been proven to lesson and/or prevent fires as a result of unattended cooking. Recalls included the Vornado VH101 Personal Vortex electric heater and the Ridgit NXT HD06000 and HD wet/dry vacuums. Managed Care Managed Care provider referred to the monthly report for June which outlined total charges of $67, which were repriced for $32, resulting in a total savings of $35, or 52%. The claims pierced the network at a rate of 95%.

6 Executive Director commented on the Board s decision to switch the managed care provider for the 2018 Fund year noting in reviewing claims analysis the workers compensation claims have remained steady in comparison to last year however there have been decreases in the cost per claim. Claim Review Committee Claims Administrator said there were a total of seventeen (17) PARs reviewed by the Claims Committee this morning, eight (8) of which were over $50,000 and summarized for Board review. MOTION TO ACCEPT THE REPORT OF THE CLAIMS COMMITTEEE AND APPROVE THE SEVENTEEN PARS AS PRESENTED BY THE CLAIMS ADMINISTRATOR MOTION: SECOND: VOTE: Commissioner Billy Commissioner Mahon Unanimous Old Business None New Business None. Public Comment None MOTION TO ADJOURN THE MEETING MOTION: SECOND: ALL IN FAVOR: Commissioner Sims Commissioner Thomas Unanimous Meeting adjourned at: 4:20 PM

7 RESOLUTION #21-18 OF THE NJ PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND TO TRANSFER TO MUNICIPAL EXCESS LIABILITY RESIDUAL CLAIMS FUND WHEREAS, the Municipal Excess Liability Residual Claims Fund was organized pursuant to N.J.S.A. 40A:10-36, et seq., to provide residual risk coverage to its member joint insurance funds; and, WHEREAS, the Board of Fund Commissioners of the NJ Public Housing Authority Joint Insurance Fund determined that membership in the Residual Claims Fund is in the best interest of the member local units and joined the Residual Claims Fund. NOW, THEREFORE, BE IT RESOLVED that the Executive Committee of the NJ Public Housing Authority Joint Insurance Fund does hereby resolve and agree to transfer the following residual risks. Fund Year Lines of Coverage Member Fund S.I.R WC/GL/AL & PROPERTY Varies BE IT FURTHER RESOLVED that the actual transfer of claim liabilities to the Municipal Excess Liability Residual Claims Fund shall be based upon the following formula: Case Reserves and IBNR as of 12/30/18 NJ PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND

8 RESOLUTION # RESOLUTION TO RENEW MEMBERSHIP MUNICIPAL EXCESS LIABILITY RESIDUAL CLAIMS FUND WHEREAS, the Municipal Excess Liability Residual Claims Fund ( RCF ), 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 residual risk management to its member Joint Insurance Funds ( JIF ); and WHEREAS, in accordance with N.J.S.A. 40A:10-42, the RCF may provide coverage to its member JIFs by self-insurance, the purchase of commercial insurance or reinsurance, or any combination thereof; and WHEREAS, the purchase of such coverage by the RCF 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 RCF 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 RCF to obtain the benefits of joint public entity membership may do so by adopting a resolution; and WHEREAS, the Executive Committee of the NJ Public Housing Authority Joint Insurance Fund has determined that renewing their membership in the Residual Claims Fund is in the best interests of the member local units. NOW, THEREFORE, BE IT RESOLVED that the Fund Commissioners of the NJ Public Housing Authority Joint Insurance Fund does hereby resolve and agree to renew its membership in the Residual Claims Fund for a period of three (3) years, the commencement of which shall be January 1, For the purpose of determining the term, any portion of the Fund year shall be considered a full year; and BE IT FURTHER RESOLVED that the NJ Public Housing Authority Joint Insurance Fund hereby adopted the Bylaws of the Residual Claims Fund. Coverage will be provided in accordance with the terms, conditions and limitations as contained in the Residual Claim Fund's Commercial Excess Insurance or Reinsurance, and Bylaws; and, BE IT FURTHER RESOLVED that the Chairman of the NJ Public Housing Authority Joint Insurance Fund, or other authorized representative, is authorized and directed to execute any and all written agreements necessary for membership in the Residual Claims Fund including, but not limited to, the Indemnity and Trust Agreement in order to implement membership by the NJ Public Housing Authority Joint Insurance Fund in the Residual Claims Fund according to its Bylaws, N.J.S.A. 40A:10-36 et seq.), administrative regulations, and any other statutes or regulations pertaining thereto.

9 NJ PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND

10 MUNICIPAL EXCESS LIABILITY RESIDUAL CLAIMS FUND INDEMNITY and TRUST AGREEMENT THIS AGREEMENT made this 24TH day of September, 2018, in the County of by and between the Municipal Excess Liability Residual Claims Fund, hereinafter referred to as the "Residual Claims Fund", and the NJ Public Housing Authority Joint Insurance Fund, hereinafter referred to as the "FUND". WITNESSETH: WHEREAS, several local governmental units have formed a residual claims joint insurance fund as authorized and described in N.J.S.A. 40A:10-36 et seq., and the administrative regulations promulgated pursuant thereto; and, WHEREAS, the FUND has agreed to become a member of the Residual Claims Fund and to share in the obligations and benefits flowing from such membership with other members of the Residual Claims Fund in accordance with and to the extent provided for in the Bylaws of the Residual Claims Fund, and in consideration of such obligations and benefits to be shared by the membership of the Residual Claims Fund. NOW, THEREFORE, be it agreed as follows: 1.) The FUND accepts the Residual Claims Fund's Bylaws as approved and adopted and agrees to be bound by and to comply with each and every provision of the said Bylaws, the pertinent statutes and administrative regulations pertaining to same and as set forth in the Risk Management Plan. 2.) The FUND agrees to participate in the Residual Claims Fund with respect to the Fund years and types of insurance listed in the FUND's Resolution to Join. 3.) The FUND agrees to become a member of the Residual Claims Fund for an initial period not to exceed three (3) years, the commencement of which shall commence effective January 1, ) The FUND certifies that it has not defaulted on any claims if self-insured and has not been cancelled for non-payment of insurance premiums for a period of at least two (2) years prior to the date hereof.

11 5.) In consideration of membership in the Residual Claims Fund, the FUND agrees that it shall jointly and severally assume and discharge the liability of each and every member of the Residual Claims Fund, all of whom as a condition of membership in the Residual Claims Fund shall execute a verbatim counterpart of this agreement, and by execution hereof the full faith and credit of the FUND is pledged to the punctual payment of any sum which shall become due to the Residual Claims Fund in accordance with the Bylaws thereof, this agreement, the Residual Claims Fund's Risk Management Plan, or any applicable statute. 6.) If the Residual Claims Fund in the enforcement of any part of this agreement shall incur necessary expense, or become obligated to pay attorney's fees and/or court costs, the FUND agrees to reimburse the Residual Claims Fund for all such reasonable expenses, fees, and costs on demand. 7.) The FUND and the Residual Claims Fund agree that the Residual Claims Fund shall hold all monies paid by the FUND to the Residual Claims Fund as fiduciaries for the benefit of Residual Claims Fund claimants, all in accordance with administrative regulations. 8.) The Residual Claims Fund shall establish a Trust Account entitled "Claims or Loss Retention Fund". The Residual Claims Fund shall maintain the Trust Account in accordance with N.J.S.A. 40A:10-36 et seq., N.J.S.A. 40A:5-1, and such other regulations or statutes as may be applicable. More specifically, the Trust Account shall be utilized solely for the payment of claims, allocated claim expense, and excess insurance or reinsurance premiums for such risk or liability or as "surplus" as such term is defined by the administrative regulations. 9.) Each FUND who shall become a member of the Residual Claims Fund shall be obligated to execute this agreement. NJ PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND

12 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Confirmation of Payments August 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 PROVIDER SERVICES 8/ DECOTIIS, FITZPATRICK, COLE & GIBLIN LLP 6, , ATTORNEY FEE 7/18 3, , QUAL-LYNX CLAIM ADJUSTING SERVICES 8/18 16, , SHERRY L. SIMS JIF MEETING ATTENDANCE 7/ JOSEPH M. BILLY, JR. JIF MEETING ATTENDANCE 7/ VOID CONNER STRONG & BUCKELEW UNDERWRITING MANAGER FEE 8/18 1, , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES 8/18 3, , DOUGLAS G. DZEMA JIF MEETING ATTENDANCE 7/ WEST NEW YORK HOUSING AUTHORIT JIF MEETING ATTENDANCE 7/ LARRY STRATTON JIF MEETING ATTENDANCE 7/ ASBURY PARK PRESS ACCT: ASB /8/18 MTG CNCLLD

13 EXECU TECH, INC WEBSITE MAINTENANCE 8/ CARTERET HOUSING AUTHORITY JIF MEETING ATTENDANCE 7/ WARREN RISK MARKETING, LLC MARKETING - JANUARY , , PMA COMPANIES, INC. RISK CONTROL SERVICES 8/18 6, , EDISON HOUSING AUTH. JIF MEETING ATTENDANCE 7/ WOODBRIDGE HOUSING AUTHORITY JIF MEETING ATTENDANCE 7/ HACKENSACK HOUSING AUTHORITY JIF MEETING ATTENDANCE 7/ NEW BRUNSWICK HOUSING AUTH. JIF MEETING ATTENDANCE 7/ PERMA EXECUTIVE DIRECTOR FEE 8/18 26, PERMA POSTAGE FEE 7/ , Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $68,964.00

14 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Resolution #23-18 SEPTEMBER 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 PROVIDER SERVICES 9/18 6, , DECOTIIS, FITZPATRICK, COLE & GIBLIN LLP ATTORNEY FEE 8/18 3, , QUAL-LYNX CLAIM ADJUSTING SERVICES 9/18 16, , PERMA AUGUST POSTAGE PERMA EXECUTIVE DIRECTOR FEE 9/18 26, , CONNER STRONG & BUCKELEW UNDERWRITING FEE 9/18 1, , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES 9/18 3, , JOHN MAHON PRIMA CONFERENCE 9/18 1, , ASBURY PARK PRESS ACCT: ASB /24/18 - FIN MTG EXECU TECH, INC WEBSITE MAINTENANCE 9/ NJ ADVANCE MEDIA ACCT: XNJPU /24/18 - MTG WARREN RISK MARKETING, LLC MARKETING 9/18 2, , PMA COMPANIES, INC. RISK CONTROL SERVICES 9/18 6, ,058.00

15 EDISON HOUSING AUTH. MANAGERS/SUPERVISORS TRAINING-BFAST 8/ ALLSTATE INFORMATION MANAGEMNT MONTHLY ARCH SERV & STOR ALLSTATE INFORMATION MANAGEMNT MONTHLY ARCH SERV & STOR THE CANNING GROUP LLC MANAGERS/SUPERVISORS TRAINING 9/18 3, , BROWN & BROWN METRO, LLC 2018 RMC FEE - BRIDGEVIEW MANOR 4, HOUSING BROWN & BROWN METRO, LLC 3RD&4TH RMC FEE - BAYONNE HOUSING AUTH 14, , Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $91,172.21