NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND July 25, 2018 Perth Amboy Housing Authority Birchwood at Perth Amboy 10:30 AM

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1 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND July 25, 2018 Perth Amboy Housing Authority Birchwood at Perth Amboy 10:30 AM 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 Present Douglas Dzema Perth Amboy Housing Authority Present 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 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 Present Co-Treasurers Execu-Tech, Inc. William Snyder Louis Riccio Absent Present 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 Absent Marketing Warren Risk Marketing, LLC Jack Warren Present

2 ALSO PRESENT Stephen McNamara, Qual-Lynx Jack Zisa, RMC Kathy Young, RMC Shakirah Stanford, RMC Thomas Holt, Sterling National Bank Patti Fahy, RMC Robyn Walcoff, Perma Jaqueline Cardenosa, Perma Tracy Lopez, Perma Salute to American Flag In the absence of Commissioner Mahon, Commissioner Chubenko served as a voting alternate during the July meeting. APPROVAL OF MINUTES: June 13, 2018 Open Minutes MOTION TO APPROVE THE OPEN MINUTES AS REFERENCED ABOVE MOTION: SECOND: VOTE: Commissioner Billy Commissioner Clarke Unanimous Correspondence None Underwriting Manager In the absence of the Underwriting Manager, Executive Director referred to the letter outlining the filing of all 2018 Excess Insurance and Reinsurance policies with the State and further reviewed 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 April Financial Fast Track, noting that the Fund currently has decreased the statutory surplus by $649,977 for the month and $892,136 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 $2,842,283. Executive Director said claim data was reviewed with the Fund office as well as with Fund Attorney; within the first 6 months of this year, the Fund has exceeded the loss funds for property. Executive Director advised that a preliminary 2019 budget workshop will be scheduled for early September for

3 which claim data, assessments, deductibles and other options will be reviewed; there will be decisions that will need to be made moving forward especially for those member that are performing poorly. Auditor and Actuary Year-End Reports Ms. Lopez said the 2017 Year End Audit Report, Group Affidavit, Actuarial Valuation and Actuarial Certification have been filed with the Departments of Insurance and Community Affairs. The annual filing was also sent to HUD and the Synopsis of Audit was published in the Fund designated newspapers. Membership Renewals Ms. Lopez said there are 41 members that are scheduled to renew their three-year membership at year end. Membership renewal notices will be mailed to each respective member. We will keep the Board informed of our progress. 2019/2020 Employment Practices Program Ms. Lopez said correspondence was mailed to Fund Commissioners and Risk Management Consultants outlining 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 have been scheduled for members of the NJPHA JIF. A copy of the original notice was distributed to all respective Fund Commissioners and Risk Management Consultants. A copy of the notice is also enclosed. (Pages 17-18) 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. Risk Management Information/Operating System (RMIS) Ms. Lopez said members and Risk Managers will receive an with a link to renewal worksheets - to begin the 2019 underwriting renewal; there has been a slight delay to this process due to the electronical download of information from our Southern JIFs, in an effort to avoid multiple downloads, we expect the renewal links to be distributed shortly Coverage Documents Ms. Lopez said the 2018 coverage documents were distributed to all Fund Commissioners and Risk Managers via during the last week of June. Any member that has not received the

4 ; please check your junk . If the original copy is not found, please contact the Fund office Assessments Ms. Lopez said the second installment of the 2018 assessments will be due on June 30, Payments should be mailed to the following address: MSI Usage / 2019 Course Listing New Jersey Public Housing Authority JIF LB# 1458 PO Box Philadelphia, PA Ms. Lopez referred to the 2018 Quarterly Usage report indicating low participation of NJPHA JIF members. Ms. Lopez encouraged members to utilize the MEL Safety Institute for safety training for their employees as this is a service available to all MEL members. In addition, the MSI has issued a 2019 Class Request Announcement which outlines courses that will be provided in the 2019 Fund year. All members are encouraged to utilize the MEL Safety Institute. August Meeting Cancellation Ms. Lopez said historically, the Fund has voted to cancel the August meeting, and process any necessary claim payments and professional fees for the month. The Board may want to consider cancelling next month s regular meeting. MOTION TO CANCEL THE AUGUST MEETING OF THE FUND AND AUTHORIZE THE TREASURER TO PROCESS ANY NECESSARY CLAIM PAYMENTS AND PROFESSIONAL FEES FOR THE MONTH OF AUGUST. MOTION: SECOND: VOTE: Commissioner Clarke Commissioner Sims Unanimous Treasurers Report Mr. Riccio said to date 98% of the 2018 assessments have been received; Atlantic City HA and Cook s Pond remain outstanding; Cook s Pond is being held by HMFA due to the Fund not meeting their underwriting requirements even though all requested information has been submitted. HMFA will not advise in writing or otherwise, what of the submission, is not in compliance. Fund Attorney advised that his office is reaching out to HMFA contact on his behalf. Mr. Riccio continued by echoing the report of the Executive Director, as he and Mr. Snyder have been reviewing the checks for the claim payments and the claims are skyrocketing within this

5 Fund. Mr. Riccio said assessments will increase significantly next year to the point where even the good performing members will see increases. As stated previously, we are all in the Fund sharing in claims so no one member should feel the brunt of a claim, however it appears that the good performing members continue to subsidize the poor performing members which must stop. Several options will be discussed during the proposed meeting of the Executive Director, but the Fund Treasurers are in support of deductible options, higher assessments and the review of membership status for poor performing members if necessary. With nothing further, Fund Treasurer referred to the July 2018 Bill List Resolution #20-18 FUND YEAR AMOUNT 2018 Year $ 886, Total $ 886, MOTION TO APPROVE RESOLUTION #20-18 JULY 2018 BILL LIST AND THE TREASURERS REPORT AS DISTRIBUTED. Marketing MOTION: SECOND: VOTE: Commissioner Clarke Commissioner DiTomasso Unanimous Marketing Director referred to the report as distributed, noting that the Fund has distributed an all lines quote to Boonton Housing Authority; we await their response. The Fund was contacted by Phillipsburg Housing Authority to quote on Newton Housing Authority based on a proposed management contract; an application has been provided for completion; we await submission of same along with a copy of the management contract. We will advise the status of each upon receipt. Attorney Fund Attorney referred to the agenda report as distributed. Fund Attorney also concurred with the financial report of the Executive Director and Fund Treasurer and added that heavy consideration will be placed on defense council for the 2019 Fund year; RFQ s are expected for advertisement shortly and will outline specific consideration for defending workers compensation and general liability insurance which may improve our success on the outcome of a potential claim. Safety Safety Director reviewed the most recent listing of consultations as of July which included a visit to Woodbridge Housing Authority. Safety Director also referred to the technical bulletin which reviewed 2019 Right to Know Surveys which NJ PEOSH requires public entities to submit a chemical inventory annually, with the deadline for 2018 just passed on July 15, 2018, public housing authority members should begin planning for the 2019 submission.

6 Safety Director also reminded members that all respective members should have the HUD smoking ban in place no later than August 3, Recalls included the Stanley workbench LED light and power station (shock and electrocution hazard), Werner Multi-Purpose Telescoping Aluminum Ladder-Model MT-1AA-13A (weight restriction), PowerSmart gas-powered 2 stage snow blowers (pulley bolt can loosen and cause the snow blower to get stuck in drive mode, posing an injury hazard) 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%. 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 (16) PARs reviewed by the Claims Committee this morning, (7) of which were over $50,000 and summarized for Board review. MOTION TO ACCEPT THE REPORT OF THE CLAIMS COMMITTEEE AND APPROVE THE SIXTEEN PARS AS PRESENTED BY THE CLAIMS ADMINISTRATOR MOTION: SECOND: VOTE: Commissioner Billy Commissioner DiTomasso Unanimous Ms. Walcoff, Perma Claims Manager introduced Ms. Jacqueline Cardenosa, she is coming from Conner Strong & Buckelew to assist Ms. Walcoff on the claims handling of the Joint Insurance Funds. Old Business None New Business None.

7 Public Comment Commissioner DiTomasso asked if the withholding of dividends will be included in the budget process for the 2019 Fund year. Executive Director said it will be a recommendation but the decision will have to come from the Executive Committee; Fund Treasurer concurred with the Executive Director noting that the Fund Treasurers will highly recommend the Fund not to provide a dividend during the 2019 Budget process. MOTION TO ADJOURN THE MEETING MOTION: SECOND: ALL IN FAVOR: Commissioner Sims Commissioner Clarke Unanimous Meeting adjourned at: 10:51 AM

8 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Resolution No July 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 MUNICIPAL EXCESS LIABILITY JIF FAITHFUL PERF 3RD QTR , MUNICIPAL EXCESS LIABILITY JIF MEL PROPERTY 3RD QTR , , QUAL-LYNX MANAGED CARE PROVIDER SERVICES - 07/2018 6, , DECOTIIS,FITZPATRICK&COLE, LLP JUNE GENERAL COUNSEL RETAINER 07/18 3, , QUAL-LYNX CLAIM ADJUSTING SERVICES - 07/ , , SHERRY L. SIMS NJPHA JIF MEETING ATTENDANCE 06/ JOSEPH M. BILLY, JR. NJPHA JIF MEETING ATTENDANCE 06/ PERMA POSTAGE FEE 06/ PERMA EXECUTIVE DIRECTOR FEE 07/ , , CONNER STRONG & BUCKELEW UNDERWRITING MANAGERS FEE 04/2018 1, , THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING SERVICES 07/18 3, , PERTH AMBOY HOUSING AUTHORITY REIMBURSEMENT FOR BREAKFAST 06/13/ WEST NEW YORK HOUSING AUTHORIT NJPHA JIF MEETING ATTENDANCE 06/ LARRY STRATTON NJPHA JIF MEETING ATTENDANCE 06/

9 BAYONNE HOUSING AUTHORITY NJPHA JIF MEETING ATTENDANCE 06/ NJ ASSOC OF HOUSING & REDEVELO 3RD QTR SPONSORSHIP FEE 10, , ASBURY PARK PRESS AFFIDAVIT OF PUBLICATION 07/ ASBURY PARK PRESS SYNOPSIS OF AUDIT 07/ EXECU TECH, INC TREASURER FEE 3RD QTR 07/18 19, , EXECU TECH, INC WEBSITE MAINTENANCE 07/ HACKENSACK HOUSING AUTH. NJPHA JIF MEETING ATTENDANCE 06/ NJ ADVANCE MEDIA AD # I MUNICIPAL EXCESS LIABILITY JIF MEL 3RD QTR , MUNICIPAL EXCESS LIABILITY JIF MSI 3RD QTR , , WARREN RISK MARKETING, LLC MARKETING - 07/2018 2, , PMA COMPANIES, INC. RISK CONTROL SERVICES - 07/2018 6, , EDISON HOUSING AUTH. NJPHA JIF MEETING ATTENDANCE 06/ NJ NAHRO 2ND QTR INSTALLMENT , , ALLSTATE INFORMATION MANAGEMNT MONTHLY ARCH SERVICE & STORAGE 06/ ALLSTATE INFORMATION MANAGEMNT MONTHLY ARCH SERVICE & STORAGE 03/ ALLSTATE INFORMATION MANAGEMNT MONTHLY ARCH SERVICE & STORAGE 05/ WILLIAM KATCHEN ACCOUNTING FEE 06/ REGIONAL RISK MANAGERS LLC RMC FEE GUTTENBERG HOUSING AUTH 01/18 9, , NEW BRUNSWICK HOUSING AUTH. NJPHA JIF MEETING ATTENDANCE 06/18

10 Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $ 886,650.53