MONMOUTH MUNICIPAL JOINT INSURANCE FUND MINUTES OCTOBER 11, 2018 WALL TOWNSHIP MUNICIPAL BUILDING 1:30 P.M.

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1 MONMOUTH MUNICIPAL JOINT INSURANCE FUND MINUTES OCTOBER 11, 2018 WALL TOWNSHIP MUNICIPAL BUILDING 1:30 P.M. Meeting Called to Order by Chairman Dempsey. Open Public Meeting Statement read into the record. Pledge of Allegiance ROLL CALL OF 2018 EXECUTIVE COMMITTEE: James Rogers Chairman Deal Present Bryan Dempsey SECRETARY Spring Lake Absent EXECUTIVE COMMITTEE MEMBERS Thomas Nolan Boro of Brielle Present Anthony Middletown Present Mercantante Laurie Gavin Allentown Absent Tom Rogers Boro of Rumson Present Lori Cole West Long Branch Absent ALTERNATE EXECUTIVE COMMITTEE MEMBERS: Jonathan Capp Marlboro Township Present Jeffry Bertrand Wall Township Present APPOINTED OFFICIALS PRESENT: Executive Director Perma Risk Management Stephen A. Sacco Present /Administrator Services Attorney Cleary, Alfieri, & Grasso James Cleary, Esq. Present Treasurer Steven Mayer Present Claims Service Qual-Lynx Gemma Armenia Present Safety Director JA Montgomery Paul Shives Present Risk Management Consultants The Danskin Agency Conner Strong & Buckelew Charles Casagrande Mike Avalone Present Present Auditor Hulsart & Company Robert Hulsart Absent Actuary Actuarial Advantage Dennis Henry Absent Underwriting Manager Conner Strong & Buckelew Ed Cooney Absent 1

2 ALSO PRESENT Jason Thorpe, PERMA Suzanne Veitengruber, Shrewsbury Township Jack Keeler, Sea Bright Kathy Kissane, Qual-Lynx Lisa Gallo, Qual Care Peter Soreiro, RMC Dominick Cinelli, RMC Alison Kelly, Danskin Agency John Casagrande, Danskin Agency Lindsay Travali NAIMC Joe Mirarchi, JA Montgomery APPROVAL OF MINUTES: September 13, 2018 MOTION TO APPROVE OPEN & CLOSED MINUTES FOR ABOVE REFERENCED MEETINGS VOTE: Commissioner Bertrand CORRESPONDENCE None TREASURER Mr. Mayer referred to the Bills List contained within the Agenda Packet. FUND YEAR AMOUNT October Bills List 2018 $ 174, TOTAL $ 174, MOTION TO APPROVE RESOLUTION # APPROVAL FOR PAYMENT OF IST AND OCTOBER 2018 BILL LIST Commissioner Capp Commissioner Bertrand EXECUTIVE DIRECTOR: Ad-hoc Finance Committee Mr. Sacco reported the Finance Committee held a Budget workshop on October 4, 2018 and discussed several matters as well. He referred to the minutes from the meeting enclosed within the agenda. Mr. Sacco reminded the Board, per the 2017 RFQ issued for 2

3 Fund Professionals for Fund Year 2018, the positions of Claims Administrator and Managed Care Provider were each granted one year contracts with the option of being extended for an additional two years. He informed the Board that the Finance Committee is recommending extending the contracts for both Qual-Lynx as the Claims Administrator and Qual-Care as the Managed Care Provider for an additional two years contingent on communication from the doctors and nurse case managers continuing to improve in regards to employees returning to work. MOTION TO EXTEND THE CONTRACTS FOR QUAL-LYNX AS CLAIMS ADMINISTRATOR AND QUALCARE AS MANAGED CARE PROVIDER THROUGH DECEMBER 31, 2020 IN ACCORDANCE WITH A FAIR AND OPEN PROCESS PURSUANT TO N.J.S.A. 19:44A-20.4 ET. SEQ Budget/Process Mr. Sacco referred to the 2019 Budget as recommended by the Finance Committee that was enclosed within the agenda. He reported that the fund office is working with the Risk Management Consultants to confirm the renewal data and noted that there may be changes between introduction and adoption. He advised that the loss funds provided by the actuary is slightly decreasing by 1.3%. Mr. Sacco informed the Board that the E-JIF is decreasing its budget by 1% and increasing its dividend to 1.25 million. Mr. Sacco advised that the overall proposed budget being recommended by the Finance Committee has an increase of 1.3%. He asked if there were any comments or questions on the proposed budget. Hearing none, Mr. Sacco asked for a motion to introduce the proposed 2019 budget and schedule a public hearing. MOTION TO INTRODUCE THE 2019 BUDGET FOR THE MONMOUTH MUNICIPAL JOINT INSURANCE FUND IN THE AMOUNT OF $15,173,004 AND SCHEDULE A PUBLIC HEARING FOR NOVEMBER 8, 2018 IN THE WALL TOWNSHIP MUNICIPAL BUILDING AT 1:30 PM. Commissioner Capp 2018 Dividend - Mr. Sacco reported that the Finance Committee is recommending a dividend of $1,000,000 and referred to Resolution # for your consideration. MOTION TO ADOPT RESOLUTION # AUTHORIZING A TOTAL RETURN DIVIDEND OF $1,000,000. Commissioner Capp 3

4 MEL 2019 Budget Meeting - Mr. Sacco reported that the MEL s 2019 Budget will be introduced on Wednesday, October 17, 2018 in Jamesburg, NJ. He added that the public hearing on the MEL budget will be held on November 14, 2018 at 5:00 PM in the Convention Center in Atlantic City. Mr. Sacco advised that the MEL's nominating committee will be beginning its deliberations for the November meeting and indicated that the Fund should nominate its 2019 representative and alternate to the MEL. Currently, is the Fund s MEL representative and is the alternate representative. MOTION TO NOMINATE THOMAS NOLAN TO SERVE AS THE FUND'S REPRESENTATIVE TO THE MEL AND NOMINATE THOMAS ROGERS TO SERVE AS THE FUND'S ALTERNATE REPRESENTATIVE TO THE MEL. Commissioner Bertrand Commissioner Capp 5 ayes, 0 nays, 1 abstention E-JIF/RCF 2019 Budget Meetings Mr. Sacco reported the public hearings to adopt the E-JIF and RCF 2019 budgets will be held October 17 th at 10:50AM in Jamesburg, NJ. He added that the Fund should nominate its 2019 representative and alternate to both Funds. Currently, is the representative and is the alternate representative. MOTION TO NOMINATE THOMAS NOLAN TO SERVE AS THE FUND'S REPRESENTATIVE TO THE E-JIF AND RCF AND NOMINATE THOMAS ROGERS TO SERVE AS THE FUND'S ALTERNATE REPRESENTATIVE TO THE E-JIF AND RCF. Commissioner Bertrand Commissioner Capp 5 ayes, 0 nays, 1 abstention Due Diligence Reports - Mr. Sacco referred the Committee to the Financial Fast Track chart as of August 31 st contained within the agenda booklet. He reported that the Fund s statutory surplus position is 9.8 million and added that the Fund is in healthy financial shape. Chairman Signature - Mr. Sacco informed the Board that the Fund Attorney is recommending that authorization be granted for the Chairman to sign claim releases during the months that the Executive Committee does not meet. He noted that the Fund Attorney will authorize whether authorize whether he is in agreement with a release prior to the Chairman signing. MOTION TO AUTHORIZE THE CHAIRMAN TO SIGN CLAIM RELEASES CONTINGENT ON THE FUND ATTORNEY S APPROVAL. Commissioner Bertrand 4

5 ATTORNEY Mr. Cleary informed the Board that he had nothing to report for the month. SAFETY DIRECTOR Mr. Mirarchi reviewed the September activities and the October agenda. He advised the Committee of upcoming meetings and trainings. He then referred to the Safety Director s bulletins and announcements that were recently released enclosed within the agenda booklet. UNDERWRITING MANAGER Mr. Thorpe reminded the Board that when there are large amounts of certificates issued for the month, they will be made available upon request via . RISK MANAGEMENT CONSULTANTS: List of Certificates made part of the Minutes. Mr. Avalone informed the Board that the 2019 renewal data collection process is coming to a close. He advised that the data is being reviewed and confirmed. Mr. Avalone reported that the Risk Managers are continuing to work with the membership to achieve compliance in the MEL Cyber Risk Management Program. He noted that the goal is to achieve 100% compliance. Mr. Casagrande added that the Monmouth JIF is doing well compared to the rest of the MEL system. Mr. Avalone informed the Board that the final Police Command Staff training session has been scheduled for October 29 th. Mr. Avalone reminded the Board that a lack of reporting exposure changes can jeopardize coverage. Mr. Avalone reported that the MEL Underwriting Manager s office will be contacting municipal clerks for towns renewing their JIF memberships to secure updated bond applications for statutory positions. Mr. Avalone reported that the October 1 st deadline for the POL/EPL checklist is somewhat flexible but noted that there is a risk of member s deductibles and co-insurance increasing dramatically. He added that there will be no extension. Mr. Casagrande referred to MEL Bulletin regarding the new TULIP Program. He noted that the bulletin outlines the updated TULIP program being offered to MEL members scheduled to take effect January 1, Mr. John Casagrande informed the Board that Know Be 4 has offered discounted consortium pricing for all Monmouth JIF members. He noted that the pricing is based on the number of 5

6 users, the level of service, and the length of commitment. Mr. J. Casagrande indicated that three demo sessions were conducted earlier in the month but noted that only 7 members participated. He advised that an additional session has been scheduled for October 23 rd. Report and Attachments of Risk Management Consultants made a part of the Minutes MANAGED CARE: Ms. Gallo referred the Committee to her report enclosed within the agenda booklet. Ms. Gallo informed the Committee that for the month of September, there was a savings of $234,680 resulting in 66% savings. OLD BUSINESS None. NEW BUSINESS None. MEETING OPENED TO PUBLIC FOR COMMENT: None PUBLIC COMMENT PORTION OF THE MEETING CLOSED MOTION TO ENTER EXECUTIVE SESSION FOR THE PURPOSE OF DISCUSSING CLAIMS AND POTENTIAL LITIGATION VOTE: MOTION TO ADJOURN EXECUTIVE SESSION VOTE: MOTION TO APPROVE PAYMENT OF CLAIMS AS DISCUSSED IN EXECUTIVE SESSION AS PRESENTED. Workers Compensation

7 GL, AL, and Property claims ROLL CALL VOTE: MOTION TO ADJOURN MEETING VOTE: Meeting Adjourned at: 1:54 P.M. NEXT MEETING: November 2018 Wall Township Municipal Building 2700 Allaire Road Wall, NJ :30 P.M. Secretary 7

8 MONMOUTH COUNTY MUNICIPAL JOINT INSURANCE FUND BILLS LIST Resolution No OCTOBER 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Monmouth County 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. FUND YEAR 2018 Check Number Vendor Name Comment Invoice Amount QUAL-LYNX OUTSIDE ADJUSTER 10/18 6, QUAL-LYNX CLAIM ADJUSTING SERVICES 10/18 44, , J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES 10/18 12, , QUALCARE, INC. WORKERS COMP - ACCESS/UM 10/18 16, , PERMA SEPTEMBER POSTAGE PERMA AUGUST POSTAGE PERMA ADMINISTRATION FEE 10/18 30, PERMA LOSS FUND MANAGEMENT 10/18 2, , THE ACTUARIAL ADVANTAGE, INC. ACTUARIAL CONSULTING SERVICES 10/18 3, , CLEARY GIACOBBE ALFIERI & JACOBS, LLC LEGAL SERVICES THRU 9/18 9, , STEPHEN M. MAYER TREASURER FEE 10/18 1, , ASBURY PARK PRESS ACCT: ASB MTG ASBURY PARK PRESS ACCT: ASB RFQ ALLSTATE INFORMATION MANAGEMNT ACCT: ARCH & STOR DANSKIN INSURANCE AGENCY INC. RMC FEE 10/18 44, , CONNER STRONG & BUCKELEW UNDERWRITING MANAGERS FEE 10/

9 CONNELL CONSULTING LLC PROACTIVE POLICE SUP TRAINING 10/ CONNELL CONSULTING LLC EPL SEMINAR 10/ EXECU-TECH, INC. WEBSITE MAINTENANCE 10/ Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $174,

10 RESOLUTION NO RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE MONMOUTH MUNICIPAL JOINT INSURANCE FUND AUTHORIZING REFUND OF CLOSED YEAR ACCOUNTS SURPLUS ACCOUNTS WHEREAS, N.J.A.C. 11: provides that a FUND may seek approval from the Commissioner of Insurance for a refund of excess monies from any FUND year upon compliance with certain requirements; and WHEREAS, the FUND has obtained a calculation from its Actuary and Executive Director as to the amount of money which is available for distribution consistent with the aforementioned regulations, and the financial integrity of the FUND; and WHEREAS, the Executive Committee has determined that it would be in the best interest of the FUND and its member municipalities to make certain refunds; NOW, THEREFORE, BE IT RESOLVED by the Executive Committee of the Monmouth Joint Insurance Fund, As Follows: 1. Section B of N.J.A.C. 11: provides that the FUND may seek approval for refunds from any claim fund that has been completed for not less than twenty-four months. Based upon this requirement, surplus monies in the Closed Year Accounts are eligible for refunds at the discretion of the FUND, the Department of Banking and Insurance and the Department of Community Affairs. 2. The Executive Committee has balanced the interests of the member authorities in obtaining the benefit of such monies as are available for refund against the need for the FUND to protect and preserve its financial integrity. Because the reserve figures and the IBNR figures utilized by the FUND Actuary are conservative, and because the Banking & Insurance Department and the State regulations require a calculation based on the ratio of paid claims to claim reserves creating a margin of error, it is the conclusion of the Executive Committee that $1,000,000 from the closed year accounts and $117,797 from the E-JIF for a total dividend of $1,117,797 surplus can be refunded at this time. Closed Year Account $ 1,000,000 E-JIF $ 117,797 Total $ 1,117, The Executive Director is, therefore, authorized and directed to submit such documents as the regulations require to the Department of Insurance and the Department of Community Affairs for the approval of the refunds in the amounts set forth above. 4. This authorization is based upon the Auditor's Report of the Historical Operating Results as of December 31, The aforementioned refund monies shall be allocated, as required and necessary, from the Closed Year Accounts. 10

11 5. The FUND Treasurer is authorized to prepare and execute checks for the pro-rated amount of the aforementioned refunds due to each member municipalities for the years in question, provided, however, the FUND Treasurer shall deduct the amount owed by the member local unit for any outstanding balances without regard for Fund year, upon receipt of written documentation of approval or acquiescence of these refunds from the Department of Insurance and the Department of Community Affairs. Said refunds shall be made to the municipalities which were members of the FUND for the years in question in the same ratio as said municipalities were assessed for the years in question. MONMOUTH MUNICIPAL JOINT INSURANCE FUND 11