SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND MINUTES MEETING OCTOBER 17, 2018 LODI MUNICIPAL BUILDING 4:30 P.M.

SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND MINUTES MEETING OCTOBER 17, 2018 LODI MUNICIPAL BUILDING 4:30 P.M. Meeting called to order by Mr. Hansen. Open Public Meeting Act read into Minutes by Chairman. Pledge of Allegiance ROLL CALL OF 2018 EXECUTIVE COMMITTEE: Chairman John Hansen East Rutherford Present Vice Chairman Frank Bianchi Lyndhurst Present Secretary Gregory Franz Borough of Edgewater Present Executive Committee Charles Cuccia Borough of Maywood Present Peter Van Winkle Borough of Rutherford Absent Dominick Azzolini Borough of Wood Ridge Present Joseph Crifasi Borough of Carlstadt Present ALTERNATES Al Restaino #1 Borough of Fort Lee Present Chris Eilert #2 Borough of South Hackensack Present Steve Lo Iacono #3 Borough of North Arlington Present Paula Cozzarelli #4 Borough of Little Ferry Present APPOINTED OFFICIALS PRESENT: Executive Director/ Administrator Perma Risk Management Services Stephen Sacco Present Attorney Paul Barbire Present Underwriting Manager Conner Strong & Buckelew Absent Ed Cooney Claims Services Bergen Risk Managers Kathleen McGuire Present Treasurer Joseph Iannaconi, Jr. Present Safety Director JA Montgomery Brian Maitland Present (1) South Bergen Municipal J I F

OTHERS PRESENT: Jason Thorpe, Perma James Barberio, Englewood Cliffs Kim Cosimano, RMC Sharon McCaffrey, BRM Dave Vozza, RMC Ezio Altamura, RMC Frank Covelli, RMC Jack Zisa, RMC Sharon Fallon, RMC Ken Schulz, JA Montgomery APPROVAL OF MINUTES: SEPTEMBER 19, 2018 MOTION TO APPROVE OPEN AND CLOSED MINUTES FOR THE ABOVE REFERENCED MEETING: Commissioner Azzolini Commissioner Crifasi CORRESPONDENCE: None MEETING OPENED TO PUBLIC FOR COMMENT: None PUBLIC COMMENT PORTION OF THE MEETING CLOSED MOTION TO ENTER INTO EXECUTIVE SESSION FOR CERTAIN SPECIFIED PURPOSES: PERSONNEL - SAFETY & PROPERTY OF PUBLIC LITIGATION Moved: Second: Vote: Commissioner Lo Iacono Commissioner Cozzarelli MOTION TO ADJOURN EXECUTIVE SESSION MOTION: Commissioner Azzolini Commissioner Eilert (2) South Bergen Municipal J I F

MOTION TO APPROVE PAYMENT OF CLAIMS AS DISCUSSED IN EXECUTIVE SESSION: 2018125338 WC 2018145345 WC 2018116234 GL 001238371 GL 001248312 GL 2019152652 PRP 2019149090 PRP 2018129426 WC 2018107885 WC 2019152862 WC 2018132326 WC 2019148127 WC 2019151331 WC 2019148808 WC 2019153672 WC MOTION: Commissioner Restaino Commissioner Eilert TREASURER Mr. Iannaconi referred to the Monthly Financial Report which contained an overview of the transactions that took place for the month relative to the financial portfolio of the Fund was introduced. He also referred to the October Bills List and the October Supplemental Bills List enclosed within the agenda packet. RESOLUTION 28-18 OCTOBER VOUCHER PAYMENTS (BILL LIST): 2018: $ 167,360.00 TOTAL: $ 167,360.00 RESOLUTION 31-18 OCTOBER SUPPLEMENTAL VOUCHER PAYMENTS (BILL LIST): 2018: $ 8,623.50 TOTAL: $ 8,623.50 (3) South Bergen Municipal J I F

MOTION TO APPROVE CERTIFICATION OF CLAIMS & CONFIRMATION OF CLAIMS PAYMENTS FOR THE MONTH OF SEPTEMBER, RESOLUTION 28-18 OCTOBER VOUCHER LIST AND RESOLUTION 31-18 OCTOBER SUPPLEMENTAL VOUCHER LIST AS SUBMITTED: Commissioner Cuccia Commissioner Bianchi EXECUTIVE DIRECTOR: Treasurer's Reports Attached and Made Part of the Minutes FINANCIALS Mr. Sacco referred the Committee to the Financial Fast Track enclosed within the agenda booklet. He reported that the Fund is continuing to monitor deficits in the 2015 and 2017 fund years but noted that there is surplus in the other fund years to extinguish those deficit. He informed the Board that the Fund s overall statutory surplus for all fund years combined is 7.2 million. NOVEMBER MEETING DATE CHANGE Mr. Sacco advised that due to the Thanksgiving holiday, the November JIF meeting will be moved to Tuesday, November 20, 2018 at 4:30pm. Please mark your calendars accordingly. Mr. Thorpe added that a motion was needed to change the meeting date. MOTION TO CHANGE THE NOVEMBER JIF MEETING DATE TO NOVEMBER 20, 2018 AT 4:30PM IN THE LODI MUNICIPAL BUILDING. Commissioner Crifasi Commissioner Cozzarelli SOUTH BERGEN JIF 2019 BUDGET Mr. Sacco indicated that the proposed 2019 Budget would be introduced during this meeting. He informed the Board that the Operations Committee met on October 9, 2018 and thanked the members of the committee for their participation in preparing the budget. He then referred to the proposed 2019 budget that was enclosed within the agenda. Mr. Sacco informed the Board that the loss funds provided by the actuary are increasing slightly by 1.01%. He advised that the MEL premiums are increasing as a result of the Fund s claims experience. Mr. Sacco informed the Board that budget is increasing by 2.58% before including the EPL/POL premium line. He reminded the Board that the JIF goes to commercial market for EPL/POL coverage and if a member has a bad loss experience in that line they are rated separately. He noted that including EPL/POL the overall budget is increasing 3.22%. Mr. Sacco asked if there were any comments or questions. 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 SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND IN THE AMOUNT OF $16,120,586 AND TO SCHEDULE A PUBLIC HEARING TO BE HELD AT THE NOVEMBER 20, 2018 MEETING IN THE LODI MUNICIPAL BUILDING AT 4:30PM. Commissioner Azzolini (4) South Bergen Municipal J I F

Commissioner Bianchi ROLL CALL DIVIDEND RECOMMENDATION Mr. Sacco informed the Board that the Operations Committee is recommending a dividend of $675,000 and referred to Resolution # 29-18 MOTION TO ADOPT RESOLUTION #29-18 AUTHORIZING A REFUND IN THE TOTAL AMOUNT OF $675,000 Commissioner Bianchi Commissioner Crifasi MEL 2019 Budget Meeting- Mr. Sacco reported that the MEL s 2019 Budget was 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, Commissioner Cuccia is the Fund s MEL representative MOTION TO NOMINATE CHARLES CUCCIA TO SERVE AS THE FUND'S REPRESENTATIVE TO THE MEL. Commissioner Bianchi Commissioner Azzolini E-JIF/RCF 2019 Budget Meetings Mr. Sacco reported the public hearings to adopt the E- JIF and RCF 2019 budgets were held on October 17 th at 10:50AM and 10:30AM respectively, in Jamesburg, NJ. He added that the Fund should nominate its 2019 representative to both Funds. Currently, Commissioner Franz is the representative. MOTION TO NOMINATE GREGORY FRANZ TO SERVE AS THE FUND'S REPRESENTATIVE TO THE E-JIF AND RCF. Commissioner Cozzarelli Commissioner Cuccia SEWER BACKUP CLAIMS Mr. Sacco referred to the listing of sewer backup claims for the period of July 1, 2018 through September 30, 2018 enclosed within the agenda. He then advised Resolution# 30-18 authorizing the assessments needed to be adopted. MOTION TO ADOPT RESOLUTION #30-18 AUTHORIZING THE ASSESSMENTS FOR THE PERIOD OF JULY 1, 2018 THROUGH SEPTEMBER 30, 2018. Commissioner Azzolini Commissioner Cuccia (5) South Bergen Municipal J I F

ADMINISTRATIVE: POLICE COMMAND STAFF TRAINING Mr. Thorpe informed the Board that a makeup session for the mandatory NJMEL Police Command Staff Training is been scheduled for October 29 th. He noted that the training session is open to agencies that missed their local or regional JIF Training session and fulfills the requirement for all Police Chiefs / Police Directors. Mr. Thorpe added that he has contacted the three members that have not attended a session. ATTORNEY: Mr. Barbire referred the Committee to his report contained in the agenda booklet. SAFETY REPORT: Mr. Maitland was present and reviewed the September activities and the October agenda. He referred the Committee to the listing of upcoming MSI training days scheduled through the end of November 2018. He then referred to the various Safety Director bulletins and other correspondence that have been recently distributed to the membership. Mr. Maitland asked if there were any questions about his report. Commissioner Cuccia requested that a report on the Driving Simulator usage be provided at the next meeting. Mr. Schulz advised that he will have a report. Safety Report Attached and Made Part of the Minutes 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 email. Underwriting Certificates made part of the Minutes MANAGED CARE: Ms. McGuire referred the Committee to her report contained in the Agenda packet. She informed the Committee that during the month of September there was a savings of $ 592,686.49 or 68% on the medical billing for Workers Compensation claims. Ms. McGuire reported that the Nurse Case Manager currently has a caseload of 28. She added that during the month of September the Nurse assisted in returning 3 employees to either light duty or full duty. OLD BUSINESS: None. (6) South Bergen Municipal J I F

NEW BUSINESS: Chairman Hansen informed the Board that he had two sub-committee nominations. He advised that Commissioner Eilert is being appointed to the Operations Committee and Commissioner Franz is being reported to the Nominating Committee. Chairman Hansen said that there have been discussions among Board Members regarding the parking situation in Lodi on meeting dates. He recommended that the Board give some thought to moving the meeting location and perhaps take action at the November meeting. MOTION TO ADJOURN MEETING MOTION: Commissioner Azzolini Commissioner Crifasi MEETING ADJOURNED: 4:53 pm NEXT MEETING: November 2018 Lodi Borough Hall Jason Thorpe, Assisting Secretary For Gregory Franz, SECRETARY (7) South Bergen Municipal J I F

SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND BILLS LIST Resolution No. 28-18 OCTOBER 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the South Bergen 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 001550 001550 BERGEN RISK MANAGERS, INC. COST CONTAINMENT SERVICES 10/18 32,377.42 32,377.42 001551 001551 CONNELL CONSULTING LLC POLICE SUPERVISION TRAINING 9/18 100.00 100.00 001552 001552 BERGEN RISK MANAGERS, INC. TPA SERVICES 10/18 50,508.66 001552 BERGEN RISK MANAGERS, INC. COMPUTER TIME SHARE 10/18 3,572.00 54,080.66 001553 001553 J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES 10/18 9,344.50 9,344.50 001554 001554 RIDGEFIELD PARK VILLAGE OF EXEC LEADER PRGRM - PUBLIC SFTY PERSNL 1,125.00 1,125.00 001555 001555 PERMA RISK MANANAGEMENT SERVICES LOSS FUND MANAGEMENT 10/18 6,338.20 001555 PERMA RISK MANANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 10/18 31,930.45 38,268.65 001556 001556 SGRISK, LLC ACTUARIAL SERVICES - 4THQTR - 10/18 9,574.50 9,574.50 001557 001557 ALLSTATE INFORMATION MANAGEMNT ACCT: 414 - ARCH & STOR - 8.31.18 79.52 79.52 001558 001558 CONNER STRONG & BUCKELEW UNDERWRITING FEE 10/18 1,464.00 1,464.00 001559 001559 EXECU-TECH, INC. WEBSITE MAINTENANCE 10/18 200.00 200.00 001560 001560 PFUND MCDONNELL, PC PALISADES PARK FIREHOUSE 3-10/18 1,000.00 001560 PFUND MCDONNELL, PC EDGEWATER COMMUNITY CENTER 10/18 1,000.00 (8) South Bergen Municipal J I F

2,000.00 001561 001561 GJEM INSURANCE AGENCY INC. RIDGEFIELD PARK - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. PALISADES PARK - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. SADDLE BROOK - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. BOGOTA BORO - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. FAIRVIEW BORO - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. LITTLE FERRY - EPL TRAINING 10/18 1,000.00 001561 GJEM INSURANCE AGENCY INC. HACKENSACK - EPL TRAINING 10/18 1,000.00 7,000.00 001562 001562 PROFESSIONAL INSURANCE N ARLINGTON- RMC FEE_EPL-POL 6.12.18 1,000.00 001562 PROFESSIONAL INSURANCE RUTHERFORD- RMC FEE_EPL-POL 8.8.18 1,000.00 001562 PROFESSIONAL INSURANCE MOONACHIE- RMC FEE_EPL-POL 9.28.18 1,000.00 001562 PROFESSIONAL INSURANCE S HACKENSACK- RMC FEE_EPL-POL 9.28.18 1,000.00 001562 PROFESSIONAL INSURANCE CARLSTADT- RMC FEE_EPL-POL 6.21.18 1,000.00 001562 PROFESSIONAL INSURANCE ELMWOOD PARK- RMC FEE_EPL-POL 8.7.18 1,000.00 001562 PROFESSIONAL INSURANCE LYNDHURST- RMC FEE_EPL-POL 9.13.18 1,000.00 001562 PROFESSIONAL INSURANCE LODI- RMC FEE_EPL-POL 6.19.18 1,000.00 8,000.00 001563 001563 NORTH JERSEY MEDIA GROUP ACCT: 1121131 - AD - 9.24.18 21.75 21.75 001564 001564 PAUL S. BARBIRE, ESQ. ATTORNEY FEE 10/18 3,724.00 3,724.00 Total Payments FY 2018 167,360.00 TOTAL PAYMENTS ALL FUND YEARS $167,360.00 (9) South Bergen Municipal J I F

RESOLUTION NO. 29-18 RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND AUTHORIZING REFUND OF THE CLOSED FUND YEAR ACCOUNTS SURPLUS WHEREAS, N.J.A.C. 11:15-2.21 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 South Bergen Joint Insurance Fund, As Follows: 1. Section B of N.J.A.C. 11:15-2.21 provides that the FUND may seek approval for refunds from any claim fund which has been completed for not less than twenty-four months. Based upon this requirement and the closure of old Fund Years, surplus monies in the closed Fund Years Accounts are eligible for refunds. 2. The Executive Committee has balanced the interests of the member municipalities 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, it is the conclusion of the Executive Committee that $6,042,963 is available from closed fund year accounts. In addition, it is the conclusion of the Executive Committee that the following amount can be refunded at this time: Closed $ 675,000 Total $ 675,000 3. 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, 2017. The aforementioned refund monies shall be allocated, as required and necessary, from the Closed Years. (10) South Bergen Municipal J I F

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. SOUTH BERGEN JOINT INSURANCE FUND (11) South Bergen Municipal J I F

RESOLUTION NO. 30-18 SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND CERTIFICATION TO RATIFY ASSESSMENT MODIFICATION WHEREAS, the following municipalities have incurred sewer backup claims in excess of the maximum as defined under the rules of the South Bergen Municipal Joint Insurance Fund; and WHEREAS, such modifications require amendments to the assessments of said municipalities; NOW, THEREFORE, BE IT RESOLVED that the Executive Committee hereby certifies the modifications as presented in the attached memo dated October 10, 2018 and, ratifies the action of the Executive Director/Administrator in making these changes. The South Bergen Municipal Joint Insurance Fund at a public meeting held on October 17, 2018 adopted the foregoing Resolution. SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND (12) South Bergen Municipal J I F

SOUTH BERGEN MUNICIPAL JOINT INSURANCE FUND SUPPLEMENTAL BILLS LIST Resolution No. 31-18 OCTOBER 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the South Bergen 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 001565 001565 JOSEPH IANNACONI TREASURER FEE - 3RD QTR 8,623.50 8,623.50 Total Payments FY 2018 8,623.50 TOTAL PAYMENTS ALL FUND YEARS $8,623.5 (13) South Bergen Municipal J I F