NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND June 13, 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 June 13, 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 Present Joseph Billy Summit Housing Authority Present John Clarke New Brunswick Housing Authority Present Douglas Dzema Perth Amboy Housing Authority Absent Kathleen DiTomasso Woodbridge Housing Authority Absent 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 Present 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 Present Marketing Warren Risk Marketing, LLC Jack Warren Present ALSO PRESENT Jack Zisa, RMC

2 Pamela Mitchell, Passaic HA Tracy Lopez, Perma Salute to American Flag In the absence of Commissioners Dzema and DiTomasso, Commissioners Stratton and Feorenzo served as voting alternates during the June meeting. APPROVAL OF MINUTES: May 21, 2018 Open Minutes MOTION TO APPROVE THE OPEN MINUTES AS REFERENCED ABOVE MOTION: SECOND: VOTE: Commissioner Clarke Commissioner Billy Unanimous (2 abstentions, Commissioners Feorenzo and Sims) Correspondence None Underwriting Manager Underwriting Managers listing of recently issued certificates of insurance were reviewed as distributed. Pro Forma Reports ADMINISTRATION REPORT Executive Director referred to the financial reports as distributed beginning with the March Financial Fast Track, noting that the Fund currently has increased the statutory surplus by $10,582 which is very positive from prior months however the year to date deficit is $242,160. Executive Director noted that continued deficits in the 2014, 2015 and 2017 Fund years continue to drive the decrease in the statutory surplus which now stands at $3,492,259. Executive Director also referred to the expected loss ratio analysis report which outlines claim increases of 10% from this time last year. Executive Director said we will continue to monitor the financials; now that the winter has passed which brought serious claims resulting in one fire and a small explosion; among other claims we would expect the claims to improve as we move along in the 2018 Fund year. Auditor And Actuary Year-End Reports Executive Director said the Audit Report as of December 31, 2017 and the Reserve Valuation Report was ed to the Executive Committee prior to the June 13th meeting. Ms. Jenna Bauer from Nisivoccia, LLC is present to provide the report of same. Following the presentation, the enclosed Resolution and Group Affidavit must be executed. Ms. Bauer referred to the 2017 year-end audit report advising that Fund is in positive financial position and noted the total assets at year-end were $12.9M. There was a decrease in joint ventures of $166,889; noting in 2016 the total was $747,294 compared to 2017 $580,405. Overall the total net position of the Fund resulted in $4,314,828.

3 Ms. Bauer said all recommendations made during the 2016 audit have been met; namely Qual- Lynx claim reporting as the change-over to their new system has concluded. In additional all outstanding claim checks have been resolved. With nothing further, Ms. Bauer completed the review of the 2017 year-end audit and asked if there were any questions. Hearing none, MOTION TO APPROVE YEAR-END FINANCIALS, ADOPT RESOLUTION #18-18 AND EXECUTE GROUP AFFIDAVIT INDICATING THAT MEMBERS OF THE EXECUTIVE COMMITTEE HAVE READ THE GENERAL COMMENTS SECTION OF THE AUDIT REPORT. MOTION: SECOND: VOTE: Commissioner Billy Commissioner Mahon Unanimous RCF/MEL Reports Executive Director said the RCF and the MEL each met on Thursday, June 7, respective reports were reviewed as distributed. The ADMINISTRATION 2017 Payroll Audit Ms. Lopez said as authorized by the Board, the payroll audit process is underway. NEIS, Inc. will be in contact with each respective member of the Fund to perform the 2017 payroll audit in preparation of the 2019 Budget. The audit will also request total number of units each housing authority member has insured through the Fund. NJAHRA Workshop Ms. Lopez referred to the enclosed information and agenda for a sponsored workshop session provided by NJAHRA for housing authority commissioners, executive directors and support staff. The workshop will take place on June 14, 2018 at the Brick Township Housing Authority, Brick, NJ and will focus on cyber security and awareness. Information and registration form is included for your submission as previously distributed. 2019/2020 Employment Practices Program Ms. Lopez said Court decisions made personnel training for managerial and supervisory employees "mandatory". The notice distributed in May was reviewed and also outlined a listing of dates and locations for the scheduled Managers/Supervisors training. We ask that all respective members register for one of the four sessions.

4 Risk Management Information/Operating System (RMIS) Ms. Lopez said the online underwriting database through Origami was launched mid-march; Fund Commissioners and Risk Management Consultants were provided login information, as well as, links to short training videos. Origami is hosting training webinars on how to utilize the online platform. Origami conducted 2 training webinars in May and 1 webinar on June 6 th. Over 150 people attended and the response was positive. Full recordings of the webinars are available online. Members and Risk Managers will receive an with a link to renewal worksheets - to begin the 2019 underwriting renewal during the month of June Coverage Documents Ms. Lopez said the Fund office will begin distributing the 2018 coverage documents to all Fund Commissioners and Risk Managers via by mid-june Assessments Ms. Lopez said the second installment of the 2018 assessments will be due on June 30, Statements of accounts were provided to members outlining their balances, if any. Statement of accounts also outlined the newly added lock box; payments should be mailed to the following address: New Jersey Public Housing Authority JIF LB# 1458 PO Box Philadelphia, PA July Meeting Ms. Lopez said the next Fund meeting will take place on July 25, 2018 and will take place at Perth Amboy Housing Authority Birchwood at Perth Amboy, 618 New Brunswick Avenue, Perth Amboy, NJ. Treasurers Report Mr. Riccio referred to the Treasurers report as distributed and informed the Board that in comparison to last year, the Fund has collected 55-60% of the annual assessments wherein last year the Fund collected 85% at this time. A listing was provided to Ms. Lopez for follow up of the balance of assessments. In addition and as a reminder, Mr. Riccio informed the members to mail their payments to the new lock box which is different from the one originally provided in December for the 2018 Assessments: New Jersey Public Housing Authority JIF LB# 1458 PO Box Philadelphia, PA

5 Mr. Riccio also advised that based on the past 16 years the Fund has been in great financial shape with significant profits evidenced, however the past five years has evidenced losses which are impacting the Fund s financial position, not that we are in a bad financial position, but enough to really begin to do something to impact the high claims members. Mr. Riccio advised that as the Fund Treasurer, Execu-Tech would be interested in reviewing options such as higher deductibles, self-insured retentions and higher assessments for respective members. Executive Director said the Fund has experienced, very recently an extensive fire claim in one authority and an explosion of a small tank in another, while these are very expensive claims, the majority of the claim experience is coming from prior years with claim activity from very bad winters. Executive Director noted that while we will review all options during the 2019 budget process, it is also very important for all members to remember that they participate in the concept of a pooling system which means every member shares in the loss another member may have and while one member may have a great year, they may have a bad year down the line where other members will share in their loss. In addition, two of the four members imposed with higher deductibles in 2018 have only had one loss each thus far. We, as a self-insured joint insurance fund are all in the program together. With nothing further, Fund Treasurer referred to the June 2018 Bill List Resolution #19-18 FUND YEAR AMOUNT 2017 Year $ 22, Year $ 79, Total $ 101, MOTION TO APPROVE RESOLUTION #19-18 JUNE 2018 BILL LIST AND THE TREASURERS REPORT AS DISTRIBUTED. MOTION: SECOND: VOTE: Commissioner Mahon Commissioner Billy Unanimous Marketing Marketing referred to the report as distributed. Executive Director added that after the agenda was issued, the Fund was contacted by representative from Phillipsburg Housing Authority possibly having Newton Housing Authority join the Fund by way of their management contract. We will advise the Board when the Fund will quote based on the application being returned. Attorney Fund Attorney said they are in the process of creating an incident form to be used at the time of loss wherein the authority would be responsible to complete and return to the claims administrator. The form should be completed as soon as an incident happens and would outline several notes of information needed such as pictures from the location at the time of loss, conditions of the site where incident occurred, witnesses, lighting etc.

6 One of the things we have noticed is that if time passes on a claim, conditions of the site may change, sidewalks may be updated, lighting fixtures may be updated etc.. These items are crucial at the time of a loss and would need to be recorded accurately to the claims administrator. Claims Administrator added that after 1 or 2 attempts at a follow up phone call regarding a claim, the Fund attorney is contacted to see if they can get cooperation from the insured. Chairman DiVincent suggested a Best Practices for claim handling; perhaps that something that is informational that can be gathered and shared with other member authorities. Safety Safety Director reviewed the most recent listing of consultations as of June which included visits to Hoboken, Bergen County, Bridgeton and Trenton Housing Authorities. Safety Director also referred to the technical bulletin which reviewed Summer Hazards relative to swimming pools, outdoor cooking and heat exposure. Recalls included Playground SuperMax Triple Slides. Managed Care Managed Care provider referred to the monthly report for May which outlined total charges of $123, which were repriced for $52, resulting in a total savings of $70, or 57%. The claims pierced the network at a rate of 96%. Managed Care provider noted that the majority of members are utilizing the network which is very beneficial to the Fund. There was one claim that some expenses were outside of the network due to the patient relocating out of the State. Claim Review Committee Claims Administrator said there were a total of (11) PARs reviewed by the Claims Committee this morning, (4) of which were over $50,000 and summarized for Board review. MOTION TO ACCEPT THE REPORT OF THE CLAIMS COMMITTEEE AND APPROVE THE EIGHT (8) PARS AS PRESENTED BY THE CLAIMS ADMINISTRATOR MOTION: SECOND: VOTE: Commissioner Sims Commissioner Mahon Unanimous Old Business None New Business None. Public Comment

7 None. MOTION TO ADJOURN THE MEETING MOTION: SECOND: VOTE: Commissioner Mahon Commissioner Clarke Unanimous Meeting adjourned at: 10:55 AM

8 GROUP AFFIDAVIT FORM CERTIFICATION OF FUND COMMISSIONERS of the NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND We the Fund Commissioners of the New Jersey Public Housing Authority Joint Insurance Fund of full age, being duly sworn according to law, upon our oath depose and say: 1.) We are duly elected Fund Commissioners of the New Jersey Public Housing Authority Joint Insurance Fund. 2.) In the performance of our duties, and pursuant to the Local Finance Board Regulation, we have familiarized ourselves with the contents of the Annual Fund Audit filed with the Secretary of the Fund pursuant to N.J.S.A. 40A:5-6 and N.J.S.A. 40A:10-36 for the year ) We certify that we have personally reviewed and are familiar with, as a minimum, the sections of the Annual Report of Audit entitled: GENERAL COMMENTS - RECOMMENDATIONS The Secretary of the Fund shall set forth the reason for the absence of signature of any members of the Executive Committee. Important: This certificate must be sent to the Division of Local Government Services, CN 803, Trenton, NJ

9 Resolution No Resolution of Certification Annual Audit Report for Period Ending December 31, 2017 WHEREAS, N.J.S.A. 40A:5-4 requires the governing body of every local unit to have made an annual audit of its books, accounts and financial transactions, and WHEREAS, the Annual Report of Audit for the year 2017 has been filed by the appointed Fund Auditor with the Secretary of the Fund as per the requirements of N.J.S.A. 40A:5-6 and N.J.S.A. 40A:10-36, and a copy has been received by each Fund Commissioner, and WHEREAS, the Local Finance Board of the State of New Jersey is authorized to prescribe reports pertaining to the local fiscal affairs, as per R.S. 52:27BB-34, and WHEREAS, the Local Finance Board has promulgated a regulation requiring that the Fund Commissioners of the Fund shall, by resolution, certify to the Local Finance Board of the State of New Jersey that all Fund Commissioners have reviewed, as a minimum, the sections of the annual audit entitled: and General Comments and Recommendations WHEREAS, the Fund Commissioners have personally reviewed, as a minimum, the Annual Report of Audit, and specifically the sections of the Annual Audit entitled: General Comments and Recommendations as evidenced by the group affidavit form of the Fund Commissioners.

10 WHEREAS, such resolution of certification shall be adopted by the Fund Commissioners no later than forty-five days after the receipt of the annual audit, as per the regulations of the Local Finance Board, and WHEREAS, all Fund Commissioners have received and have familiarized themselves with, at least, the minimum requirements of the Local Finance Board of the State of New Jersey, as stated aforesaid and have subscribed to the affidavit, as provided by the Local Finance Board, and WHEREAS, failure to comply with the promulgations of the Local Finance Board of the State of New Jersey may subject the Fund Commissioners to the penalty provisions of R.S. 52:27BB-52 - to wit: R.S. 52:27BB-52 - "A local officer or member of a local governing body who, after a date fixed for compliance, fails or refuses to obey an order of the director (Director of Local Government Services), under the provisions of this Article, shall be guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one year, or both, in addition shall forfeit his office." NOW, THEREFORE, BE IT RESOLVED, that the Fund Commissioners of the New Jersey Public Housing Authority Joint Insurance Fund, hereby state that they have complied with the promulgation of the Local Finance Board of the State of New Jersey, dated July 30, 1968, and does hereby submit a certified copy of this resolution and the required affidavit to said Board to show evidence of said compliance. I HEREBY CERTIFY THAT THIS IS A TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING HELD ON: June 13, 2018

11 NEW JERSEY PUBLIC HOUSING AUTHORITY JOINT INSURANCE FUND BILLS LIST Resolution No June 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 Invoice Amount

12 TOTAL PAYMENTS ALL FUND YEARS $ 101,461.91