NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND SEPTEMBER 29, 2014 Resorts Hotel & Casino, Atlantic City, NJ 3:30 PM

Transcription

1 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND SEPTEMBER 29, 2014 Resorts Hotel & Casino, Atlantic City, NJ 3:30 PM Meeting Called to Order by Secretary Madeline Cook. Open Public Meeting Statement read into the record. Salute to American Flag ROLL CALL OF EXECUTIVE COMMITTEE: William Cottman CHAIRMAN Pleasantville Housing Authority Present Madeline Cook SECRETARY Edison Housing Authority Present EXECUTIVE COMMITTEE MEMBERS Robert DiVincent W. New York Housing Authority Present Sandra Niemiec Sayreville Senior Housing Corp. Present Mary Harrison Red Bank Housing Authority Present John Mahon Bayonne Housing Authority Present Lillian Ciufo Fort Lee Housing Authority Excused ALTERNATE EXECUTIVE COMMITTEE MEMBERS: Douglas Dzema Perth Amboy Housing Authority Absent Larry Stratton South Amboy Housing Authority Absent Sherry Sims Boonton Housing Authority Present John Clarke New Brunswick Housing Authority Present Grace Dekker Berkeley Housing Authority Present Joseph Billy Summit Housing Authority Present APPOINTED OFFICIALS PRESENT: Executive Director Perma Risk Management Services Steve Sacco Present /Administrator Attorney DeCotiis, Fitzpatrick & Cole, LLP Frank Borin Present 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 Insurance Broker Conner Strong & Buckelew Joseph Hrubash Present Managed Care Consolidated Services Group Stephen McNamara Present Marketing Warren Risk Marketing, LLC Jack Warren Present

2 ALSO PRESENT Tracy Lopez, PERMA Kathy Young, RMC Nancy Nicholson, Brick HA Paul Dice, Millville/Salem/Wildwood HA Karen Holloway, Carteret HA Eric Chubenko, Carteret HA Michelle Rosenth, Brick HA Commissioner Joseph Billy served as a voting alternate in the absence of excused Commissioner Ciufo. Salute to American Flag APPROVAL OF MINUTES: July 9, 2014 Open Minutes MOTION TO APPROVE THE OPEN MINUTES AS REFERENCED ABOVE ALL IN FAVOR: Commissioner Niemiec Commissioner Clarke Correspondence Executive Director referred to the second quarterly update provided by Enquiron on behalf of XL Insurance. This update provides a statistical summary of the JIFs that utilize the Help Line service offered. The feedback on this program has been very positive and helpful to our members not only in the NJPHA JIF but all MEL affiliated JIFs. Underwriting Manager Fund Underwriter reviewed the listing of Certificates of Insurance as distributed. Fund Underwriter added that with respects the to EPL/POL program, XL Insurance had agreed for the past two renewal cycles to remain with the MEL s expiring program and continue with co-insurance and deductibles applicable to members meeting the requirements. XL Insurance will now rate on individual member experience. Fund Underwriter further said that depending on the experience, members will see in increase in the EPL/POL line item of the 2015 Budget. Executive Director added the increase will not be in the overall budget, just the line of coverage; this should not alarm anyone as the overall projection of the 2015 budget appears to be solid. Pro Forma Financial Reports EXECUTIVE DIRECTOR REPORT Monthly report submitted to Executive Committee included the April Financial Fast-track, Fixed Income Interest Rate Summary Comparison, Expected Loss Ratio Analysis, Claim Activity

3 Report, Lost Time Accident Frequency Report, Interest Rate Summary Comparison, All JIFs Lost Time Accident Frequency, Monthly and Annual Regulatory Checklist RENEWAL APPLICATIONS ONLINE UNDERWRITING DATABASE Ms. Lopez said the new online underwriting database was launched the first week of August. The system Exigis Risk Works issued logins to Fund Commissioners and Risk Management Consultants. In addition to training sessions conducted in July, there were 3 webinars held after the logins were issued. If you did not receive a login/password please contact the fund office at or the Exigis Helpline at Please note per prior to all Fund Commissioners and respective Risk Management Consultants, the deadline to submit underwriting information was extended to September 20, 2014; as of that date, the database will be locked allowing PERMA to make comparisons of the updated exposure data and to begin the 2015 budget process BUDGET PROCESS Executive Director said the Budget introduction is scheduled to take place at the October 8 th meeting. We would like to schedule a budget workshop with the Operations Committee to review the proposed 2015 budget prior to the October meeting. The 2015 budget hearing will take place on Monday November 17, 2014 at The Golden Nugget in Atlantic City, NJ at 3:00 PM. Commissioner Niemiec made a motion to reschedule the October 8, 2014 meeting because it is only two weeks away which appears to be too close to this meeting. MOTION TO RESCHEDULE THE OCTOBER MEETINGFROM OCTOBER 8, 2014 TO OCTOBER 22, 2014 AT MIDDLETOWN HOUSING AUTHORITY AT 10:30 AM. ALL IN FAVOR: Commissioner Niemiec Commissioner DiVincent Executive Director said the Operations Committee will be scheduled and advertised accordingly along with the rescheduled date of the October JIF meeting. RESIDUAL CLAIMS FUND MEETING - (RCF) Executive Director said the Residual Claims Fund met on September 3, 2014 at the Forsgate Country Club in Jamesburg, NJ. The Residual Claims Fund amended 2014 Budget which is attached and the attached proposed 2015 Budget was introduced. The public hearing on the RCF budget will be held on October 15, :30 AM at the Forsgate Country Club. Commissioner Cook had nothing further to add to the report. MEL REPORT Executive Director said the MEL met on September 3, 2014 at the Forsgate Country Club. The MEL s 2015 budget introduction is scheduled for October 15, 2014 at the Forsgate Country Club

4 in Jamesburg NJ. Chairman Cottman added that the RFQ proved to be very competitive within the MEL adding that there were two respondents for TPA and three for Managed Care RFQ Process Executive Director said as authorized during the June meeting, the NJPHA JIF advertised the RFQ for all fund professional positions for fund years pursuant to the Fair and Open process. The results of the July 30, 2014 RFQ were reviewed as distributed. Executive Director added that the RFQ Committee is scheduled to meet immediately following this meeting to review and score the multiple respondents for Managed Care and Claims Administrator. NJPHA JIF Membership Renewals This year numerous members of the JIF are scheduled to renew their membership in the NJPHA JIF. Several members will pass their renewal documents during their scheduled October meetings. We will keep the Board informed of the responses Coverage Manuals The 2014 Coverage Manuals were sent electronically to all Fund Commissioners and respective Risk Management Consultants during the month of August. Financial Disclosures The Division of Local Government Services has contacted the Fund office and asked us to follow up with any commissioner that had not yet completed their filing to advise them that the state will begin issuing fines to commissioners that do not complete their filing by August 29th. All NJPHA JIF Commissioners have completed their filings with the exception of four, for which a reminder was sent. Safety Expo For the ninth year, the MEL is working with the New Jersey Utility Authorities Joint Insurance Fund (NJUA) to conduct its Annual Safety Expo which includes MEL member town s water & sewer employees. The Safety Expos will be held on September 26th at the Camden County Emergency Services Training Center and November 7th at the Middlesex County Fire Academy. The registration information is included for your review as ed to Fund Commissioners and Risk Management Consultants. TREASURERS REPORT Mr. Snyder reported that 100% of 2014 Assessments have been received and also said that he has received a request from two members of the Fund to allow payments of two installments for the 2015 Fund year. It was confirmed that the Fund extends the assessment policy of allowing two installments with the first installment due January 31 st and the second installment due June 30 th of each year.

5 FUND YEAR AMOUNT Closed year (RCF) $437, $ 70, TOTAL $508, MOTION TO ACCEPT RESOLUTION #27-14 BILL LIST AND THE REPORT OF THE TREASURER AS DISTRIBUTED. MARKETING ALL IN FAVOR: Commissioner DiVincent Commissioner Billy Marketing Director said renewal notices were mailed out to all members scheduled to renew their three year membership at year end. We will keep the Board informed of our progress as documents are received. ATTORNEY Fund Attorney reported that a meeting had taken place on September 4, 2014 with the NJ Housing Mortgage Finance Agency which included the members of the Executive Directors office, Legislative Agent, Fund Treasurers, Donna Rendeiro, Chief of Staff (HMFA), Walter Roman, Director of Insurance/Special Services(HMFA) and Bob English, Insurance Agent. The meeting was convened for discussions on minimum insurance requirements for member nonprofits entities within the JIF that are provided financing through HMFA. The minimum insurance requirements required are currently incompatible with the limits of the NJPHA JIF and appear to be somewhat outdated. During the meeting it was determined that the minimum insurance requirements are deviated from the Bond documents with HMFA which date back to Fund Attorney is not convinced that their argument is valid with respects to the bond documents and that his office is currently in the middle of their review of same. A follow up meeting will be scheduled in mid-october with HMFA and we hope to make progress moving forward. Mr. Riccio added that the insurance requirements are impossible to meet and asked that while parties involved are in the negotiating process, perhaps an analysis of HMFA insurance requirements and the JIF s limits can be provided. This should determine, in the interim, if members of the fund must purchase additional insurance; if negotiations with HMFA do not prove to be favorable, we will be prepared to purchase additional insurance. This is a matter that must be completed by December 31 st. It was noted in previous past years HMFA has granted waivers in order to release funding, however, it is now believed that they will enforce their insurance requirements moving forward. SAFETY Safety Director referred to the distributed report which outlined the results of the second quarterly loss analysis indicating that there has been an increase in water damage claims

6 surprisingly. Out of the 21 property claims reported, 12 of them were due to water damage. As previously discussed, this could be due to not knowing where water shut off valves may be within the Authority which can result in a lag time from the time a sprinkler system is set off to the time a water shut off valve is turned off as a result of not being aware of where shut off valves are located. Safety Director said that they are very interested in identifying who currently use Stove Top Firestop Canisters in residents kitchen range hoods. They are small canisters which open when exposed to flame and release an extinguishing agent. They are interested in learning any practices regarding usage, resident education and experience with activations. Anyone with experience with the canisters is asked to reach out to Mr. Rhoads at james_rhoads@pmagroup.com. Lastly, Safety Director reminded everyone due to the upcoming fall and winter months that the topic of space heaters be addressed due to the high risk of use resulting in fires. MANAGED CARE Managed Care provider referred to the report as distributed. CLAIM ADMINISTRATION Claim Review Committee Claims Administrator said that a JIF Claims Workshop was provided this morning and offered available training material to members present. Claims Administrator added that the a total of 6 PARs was presented by Qual-Lynx during the Claims Committee meeting, one claim which exceeded $50,000 and provided to the Board for review. MOTION TO ACCEPT THE REPORT OF THE CLAIMS COMMITTEEE, APPROVE THE PARS AS PRESENTED BY THE CLAIMS ADMINISTRATOR ALL IN FAVOR: Commissioner DiVincent Commissioner Cook Old Business None New Business None Public Comment None

7 Executive Session No MOTION TO ADJOURN THE MEETING VOTE: Commissioner Niemiec Commissioner Sims Meeting adjourned at: 4:15 PM

8 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Resolution No SEPTEMBER 2014 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 CLOSED CheckNumber VendorName Comment InvoiceAmount MUNICIPAL EXCESS LIABILITY RCF 2014 RCF ASSESSMENT 437, , Total Payments Closed Year 437, FUND YEAR 2014 CheckNumber VendorName Comment InvoiceAmount DECOTIIS,FITZPATRICK&COLE, LLP ATTORNEY FEE 08/2014 3, , QUAL-LYNX CLAIMS ADMIN - 09/ , , PERMA POSTAGE FEE 08/ PERMA EXECUTIVE DIRECTOR FEE 09/ , , CONNER STRONG & BUCKELEW UNDERWRITING MANAGER - 09/2014 1, , ALLSTATE INFORMATION MANAGEMNT DEPT: ACT & STOR - 07/31/ EXECU TECH, INC MONTHLY WEBSITE MAINTENANCE 09/ NJ ADVANCE MEDIA ACCT XNJPU /28/14 - PUBLIC NOT NJ ADVANCE MEDIA ACCT XNJPU /11/14 - SPEC MTG THE ACTUARIAL ADVANTAGE ACTUARIAL CONSULTING FEE 09/2014 2, , WARREN RISK MARKETING, LLC MARKETING DIRECTOR FEE 09/2014 2, , PMA COMPANIES, INC. LOSS CONTROL SERVICES - 09/2014 5, ,573.67

9 ALAMO INSURANCE GROUP, INC RMC FEE 2ND 2014 WEST NEW YORK HA 8, , PRINCETON PUBLIC AFFAIRS GROUP PROFESSIONAL SERVICE - 09/2014 5, , NATIONAL PEN CO. LLC PADIANT FLASHLIGHT KEY CHAIN - 9/7/ Total Payments FY , TOTAL PAYMENTS ALL FUND YEARS $ 508,348.81