BURLINGTON COUNTY MUNICIPAL JOINT INSURANCE FUND

HAINESPORT TOWNSHIP MUNICIPAL BUILDING

1 HAINESPORT CENTRE, RT. 537

HAINESPORT, NEW JERSEY

October 20, 2009 - 4:00 PM

OPEN SESSION MINUTES

The regular meeting of the Burlington County Municipal Joint Insurance Fund (BURLCOJIF) was held at the Hainesport Township Municipal Building, 1 Hainesport Centre, Rt. 537, Hainesport, New Jersey, on Tuesday, October 20, 2009 at 4:00 PM, prevailing time. Chairman Joseph Broski, Mansfield Township, presiding. The meeting was called to order at 4:05PM.

STATEMENT OF COMPLIANCE WITH OPEN PUBLIC MEETING ACT

Notice of this meeting was given by: (1) sending sufficient notice herewith to the Burlington County Times, Mt. Holly, NJ, and to the Courier Post, Cherry Hill, NJ; (2) filing advance written notice of this meeting with the Clerks/Administrators of all member municipalities of the Burlington County Municipal Joint Insurance Fund; and (3) posting notice on the public bulletin boards of all member municipalities of the Burlington County Municipal Joint Insurance Fund.

ROLL CALL

Those in attendance were:

Hal Robertson, Alternate, Beverly

Leonard Klepner, Bordentown Township

Glenn McMahon, Chesterfield

Michael Templeton, Delanco

Jeffrey Hatcher, Delran

Richard Brook, Florence

Edward Ruggiano, Alternate, Hainesport

Michael Mansdoerfer, Lumberton

Joseph Broski, Mansfield

Kathy Burger, Medford

Monica Zur, North Hanover

Michael McFadden, Southampton

Meghan Jack, Riverside

David Matchett, Shamong

Doug Cramer, Tabernacle

Donna Ryan, Westampton

Absent were:

Richard Bethea, Bass River

Heather Cheesman, Bordentown City

Linda Dougherty, Edgewater Park

Debra Fourre, Mt. Laurel

J. Paul Keller, Springfield

Those also in attendance were:

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services

Samuel Reale, Jr., Esquire, Acting Fund Solicitor, Kearns, Reale & Kearns

John Saville, Senior Loss Control Consultant, Conner Strong Risk Services

Joseph Harvey, Senior Vice President of Account Management, Scibal Associates

Jen Pard, Senior Account Representative, CSG

Also present were the following Risk Management Consultant agencies:

EJA & Associates

Insurance Agency Management

Conner Strong

James Tunney Insurance

The Barclay Group

MONTHLY MEETING CONDUCT

Chairman Broski entertained a motion to allow that this monthly meeting be conducted directly by the Fund Commissioners present with all matters to be decided upon by a combined majority vote of all Fund Commissioners.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to allow the meeting to be conducted directly by the Fund Commissioners present. All in favor. Motion carried by unanimous vote.

APPROVAL OF THE MINUTES

Chairman Broski presented the meeting minutes of the September 15, 2009 Executive Committee Meeting, as found in the agenda packet, for approval.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

Chairman Broski entertained a motion to approve the meeting minutes of the September 15^th Executive Committee Meeting as presented.

Motion by Mr. Mansdoerfer, seconded by Mr. Matchett to approve the meeting minutes of the September 15^th Executive Committee Meeting as presented. Abstentions were heard from Chairman Broski, Secretary Ryan, Ms. Zur, and Mr. McFadden. Motion carried.

APPROVAL OF CLOSED SESSION MINUTES

There was a distribution of the Closed Session Meeting minutes to the Executive Committee at this time.

Chairman Broski presented the Closed Session Meeting minutes of the September 15, 2009 Executive Committee Meeting for approval.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

Chairman Broski entertained a motion to approve the Closed Session Meeting minutes of the September 15^th Executive Committee Meeting.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to approve the Closed Session Meeting minutes of the September 15^th Executive Committee Meeting as presented. Abstentions were heard from Chairman Broski, Secretary Ryan, Ms. Zur, and Mr. McFadden. Motion carried.

The Closed Session Meeting minutes of the September 15^th meeting shall not be released to the public until the reason(s) for their remaining closed is no longer applicable and the Fund Solicitor has had the opportunity to review them.

Closed Session Meeting minutes from the September 15, 2009 meeting were collected at this time.

EXECUTIVE DIRECTOR'S REPORT

Mr. Forlenza stated the Executive Director’s Report is found in the October 2009 agenda packet and is self-explanatory. He highlighted the following items from the report.

-       2008 Safety Incentive Program Awards – A letter from the Executive Director’s office describing how to collect the 2008 SIP Awards money was mailed out February 23^rd. Members are asked to follow the instructions for claiming the award. The deadline for claiming these funds is November 30, 2009.

-       2009 Optional Safety Budget – A reporting detailing the available balances for each member for the 2009 OSB is included in the packet. Instructions for claiming the 2009 OSB allowance were mailed on February 6^th. The deadline for expending or encumbering these funds is November 30, 2009.

-       Elected Officials Training – The Fund will again be sponsoring Elected Officials Training.

The MEL will reduce each member’s 2010 loss funding liability claims funding by $250 for each municipal elected official who attends one of the training sessions by May 1, 2010. The total credit is limited to 25% of a member’s liability loss funding premium.

A copy of the e-mail invitation to all Municipal Clerks and Fund Commissioner sent on October 16^th is made a part of the agenda packet.

Training has been scheduled on the following dates.

November 30, 2009 * Nicolosi’s Catering, West Deptford

December 3, 2009 * Merighi’s Savoy Inn, Vineland

January 28, 2010 * Kerri Brooke Caterers, Hammonton

There may possibly be a session held in March 2010. Also, a session will be held during the League of Municipalities Conference.

-       EPL Plan of Risk Management Updates – On October 1^st, the MEL distributed a memorandum regarding the 2010-2011 Employment Practices Liability (ELP) Program. A copy of the memo is made a part of the agenda packet.

Instructions, a checklist, and required policy language changes and training requirements that each member will need to complete to remain, or come into compliance with, have been uploaded to the MEL’s website www.NJMEL.org.

Members without updated loss control program will receive a 20% surcharge on their EPL loss funding assessment and will continue at a deductible of $100,000 per claim plus 20% co-pay with no cap. Members with a poor loss history for this line of coverage will be subject to higher deductibles and/or co-pays depending on the status of their EPL Program.

-       Managers & Supervisors Training – One component of the MEL’s 2010 EPL Program is the training of all managers and supervisors. Four training sessions have been scheduled in conjunction with the ACM and TRICO JIFs for the fall. A formal invitation, including sign in sheets, was e-mailed to all members on October 5^th.

The dates of the training sessions, taking place in the am and pm are as follows.

November 10, 2009 * Bradford Estates, Hainesport

December 1, 2009 * Nicolosi’s Catering, West Deptford

December 9, 2009 * Merighi’s Savoy Inn, Vineland

March 2010 * Wildwood Convention Center, Wildwood – make up session

-       Quarterly Attendance Report – A reporting, taken directly from the Recording Secretary’s month roll call, detailing attendance records through the 3^rd quarter of 2009 is included in the agenda packet.

-       MEL Coverage Bulletin 09-25 – On September 21^st, the Fund Underwriter issued MEL Bulletin 09-25 outlining Workers’ Compensation and Professional Liability coverage for member municipalities and their employees for claims arising out of H1N1 Influenza. Copies were mailed to all Fund Commissioners and RMCs for their review.

-       MEL Coverage Bulletin 09-26 – On September 21^st, the Fund Underwriter issued MEL Bulletin 09-26 outlining coverage for member municipalities that might have suffered losses as a result of the bankruptcy of Ameripay. Copies were mailed to all Fund Commissioners and RMCs for their review.

-       New Member Activity – On October 13^th a concept presentation was made to the Township of Cinnaminson. Cinnaminson was a founding member of the BURLCO JIF in 1991; they left in 1993. The Township is considering application to the Fund for membership effective January 2012.

-       MEL Claims Information Report - This report is currently being developed for distribution to the membership at the November Executive Committee Meeting.

-       JIF Loss Ratio Snapshots (handout) – Members were presented with their individual Loss Ratio Snapshots as of September 30, 2009.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

SOLICITOR'S REPORT

Mr. Reale had nothing to report for Open Session.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

SAFETY DIRECTOR'S REPORT

Mr. Saville reported that the Safety Director’s Report for September Activities is made part of the agenda packet and is self-explanatory. He highlighted a few reminders for members.

-       Loss Control Surveys – Nine members were visited during September – Bordentown Township, Delran, Edgewater Park, Florence, Mansfield, Mt. Laurel, North Hanover, Riverside, and Shamong.

-       MSI Training Programs – A list of the upcoming classes through mid-December are included in the report.

-       Pandemic Preparedness Training Program – There will be a series of MSI classes devoted to the Pandemic H1 N1 Flu with the focus on preparation. The announcement is made a part of the report. A PEOSH consultant will be the speaker. The program, oriented towards Managers and Supervisors, will be offered seven times throughout the state. Mt. Laurel will host one of the programs on October 21, 2009 at 1:30pm at the Senior Center.

-       CEU Courses – A list of courses that qualify for CEUs are listed in the report.

-       MEL Video Library – The latest 2009-2010 additions are included in the report.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

CLAIMS ADMINISTRATOR'S REPORT

Mr. Harvey’s report is for Closed Session only.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

MANAGED HEALTH CARE REPORT

Ms. Pard presented the self-explanatory Managed Care Report for September 2009 from CSG Solutions, which is contained in the agenda packet.

Lost Opportunity Days Summary Report – September 2009

The Lost Opportunity Days Summary Report of Open Cases as of September 25, 2009 reflected 69.34% utilization of Transitional Duty days utilized for the BURLCOJIF.

Lost Time v. Medical Only Cases

The BURLCOJIF Lost Time v. Medical Only Cases for the 13-month period of September 2009 thru September 2009 reflects the following averages.

Managed Care Update (handout)

A Managed Care Update is provided to the membership in the agenda packet. This month’s report highlights the following.

§       Medical Case Management – CSG is handling 326 cases for the BURLCOJIF. Staff case assignments and case loads were included in the report.

§       Monitoring Reports – BURLCOJIF average out of work days in comparison to MDA National Industry Standard from July 1^, 2008 through June 30, 2009 is as follows.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

TREASURER'S REPORT

Mr. Tontarski presented an overview of the Treasurer's Report for the one month period of September 2009, a copy of which was included in the agenda packet for members’ consideration.

Investment Interest

Interest received or accrued for the reporting period totaled $9,886.87. This generated an average annual yield of 1.09%. However, after including an unrealized gain of $7,357.50 in the asset portfolio, the yield is adjusted to 1.90% for this period. The total overview of the asset portfolio for the Fund shows an overall gain of $50,520.30 as it relates to market value vs. the amount invested.

Receipt Activity for the Month(s)

Claim Activity for the Month(s)

Claim activity during the period for claims paid by the Fund and claims payable by the Fund at period end in the amount of $213,346.53. The claims detail is as follows:

Cash Activity for the Month

During the reporting period, the Fund’s “Cash Position” changed from an opening balance of $11,004,033.89 to a closing balance of $10,797,661.81 showing a decrease in the Fund of $206,372.08.

October 2009 Bill List - Approval

Also, for the Executive Committee’s consideration, Mr. Tontarski presented the October 2009 Bill List in the amount of $279,614.50 as provided to the membership in the agenda packet.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

Chairman Broski entertained a motion to accept the September 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the October 2009 Bill List in the amount of $279,614.50 as presented.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to accept the September 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the October 2009 Bill List in the amount of $279,614.50 as presented.

All in favor. Motion carried by unanimous vote.

Subrogation Salvage Report

The Subrogation Salvage Report is made part of the September 2009 Treasurer’s Report.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

COMMITTEE REPORTS

Executive Safety Committee Report – September 15, 2009

Mr. Cramer presented a verbal report of the September 15^th Executive Safety Committee meeting at the September Executive Committee Meeting.

The official meeting minutes are contained in the October agenda packet. He presented the following item for the membership consideration.

§       Police Accreditation Interns – The purpose of this policy is to establish a procedure for reimbursing member police agencies for interns used exclusively to assist in the accreditation process.

Chairman Broski entertained a motion to approve the Police Accreditation Interns Policy.

Motion by Mr. Cramer, seconded by Mr. Mansdoerfer to approve the Police Accreditation Interns Policy.

All in favor. Motion carried by unanimous vote.

Joint Coverage Committee Meeting Report – September 30, 2009 (handout)

Mr. Forlenza presented the Joint Coverage Committee Meeting minutes from September 30^th as a handout to the membership. He stated that the minutes are very detailed and should be reviewed carefully by Fund Commissioners and RMCs.

He highlighted the following items from the meeting.

§       Coverage for Volunteers

o      CERT Teams – The ACMJIF Coverage Committee determined that CERT Teams are eligible for Workers Compensation coverage under specific conditions. A memo was originally only distributed in the ACMJIF members describing the conditions under which coverage could be provided. This memo will now be distributed to the BURLCO and TRICO JIFs.

o      Emergency Management Volunteers – A memo that was distributed only in the ACMJIF will be distributed to BURLCO and TRICO JIFs containing pertinent information regarding Emergency Management Volunteers. The memo outlines that each authorized worker (rostered) who is not a member of the volunteer fire company within which first air or rescue squad may have been created, providing a public first aid or rescue duty under the control or supervision of any commission, council, or any other governing body of any municipality is covered. These conditions require the member to appoint Emergency Management Volunteers by resolution and keep a roster of employees.

o      Ambulance Non-Profit – The 1/12/09 correspondence referring to Coverage for Ambulance Non-Profits purpose was to advise all members and RMCs that any Non-Profit ambulance squad operating within their municipality and paying their own personnel to provide ambulance coverage services must obtain separate workers compensation, property, and liability coverage. Municipalities are authorized to insure their volunteer ambulance squads; however, there is no statutory authority for a municipality to insure an independent non-profit organization. A memo will be sent to all three Funds with clarifications.

o      Mutual Aid Agreements – A Coverage Bulletin was issued on 1/12/09 from Davis D. DeWeese, Esquire, Fund Solicitor for the ACM and TRICO JIFs regarding coverage issues for County Task Force Teams. The bulletin outlines the importance of adopting a written agreement between the County and municipality relative to General Liability and Workers Compensation Coverage. These agreements should be approved by Resolution, and once adopted, a copy sent to the Executive Director’s office.

§       MEL EPL Program Updates – The recent correspondence – 2010-2011 Employment Practices Liability Program – mailed to all members by the MEL was discussed. The process to continue in compliance with the EPL Plan of Risk Management is identical to that of two years ago with the exception of the Police Command Staff Training.

§       Quarterly MEL Reporting – The Executive Director, Claims Administration, and PERMA have been gathering member-specific loss data to be shared with individual members. A sample quarterly report of MEL Claims was reviewed by the Joint Coverage Committees. The report depicted open and closed claims at the MEL-level. It is hope that this information can be distributed to the membership on a quarterly basis.

§       MEL Loss Ratio Surcharge – There will be changes to deductibles and co-pays in the EPL line of coverage, an implementation of JIF surcharges, and experience rating in Fund Year 2010.

§       The MEL surcharge amounts based on the Fund’s 5-year average loss ratio are as follows.

Finance Committee Meeting Report – October 8, 2009

Mr. Hatcher reported on the Finance Committee Meeting that took place on October 8^th. The official meeting minutes serve the membership as a handout. He highlighted the following items.

§       Interim Financial Summary as of June 30, 2009 – Incorporated in minutes

§       2010 Budget – Introduce at November Executive Committee Meeting

Strategic Planning Committee Meeting Report – October 20, 2009 (verbal)

Ms. Burger presented a verbal report of the Strategic Planning Committee Meeting that took place today, October 20^th. She highlighted the following items.

§       Member Visitation Program – Visits to renewing members

§       Electronic Mailing of Monthly Agenda Packets

§       2009 Planning Retreat Review

§       2010 Planning Retreat – Look for new location.

The official meeting minutes will be contained in the November agenda packet.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

MEL/RCF/ E-JIF REPORT

Renewal of Membership in the NJ MEL JIF

Mr. Forlenza presented Resolution #2009-27 – Renew Membership in the Municipal Excess Liability Joint Insurance Fund for the membership’s consideration.

Adoption of this resolution would renew the BURLCOJIF’s membership in the MEL for a period of three (3) years commencing in January 1, 2010.

Chairman Broski entertained a motion to adopt Resolution #2009-27 – Renew Membership in the Municipal Excess Liability Joint Insurance Fund.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to adopt Resolution #2009-27 – Renew Membership in the Municipal Excess Liability Joint Insurance Fund.

All in favor. Motion carried by unanimous vote.

Renewal of Membership in the NJ MEL RCF

Mr. Forlenza presented Resolution #2009-28 – Renew Membership in the Municipal Excess Liability Residual Claims Fund for the membership’s consideration.

Adoption of this resolution would renew the BURLCOJIF’s membership in the RCF for a period of three (3) years commencing in January 1, 2010.

Chairman Broski entertained a motion to adopt Resolution #2009-28 – Renew Membership in the Municipal Excess Residual Claims Fund.

Motion by Mr. Matchett, seconded by Mr. Hatcher to adopt Resolution #2009-28 – Renew Membership in the Municipal Excess Residual Claims Fund.

All in favor. Motion carried by unanimous vote.

Appointment of 2010 MEL, RCF, E-JIF Representatives

Mr. Forlenza presented Resolution #2009-29 – Appointing 2010 MEL, RCF, E-JIF Representatives for the membership’s consideration.

Adoption of this resolution would appointment Jeffrey Hatcher as the Fund’s Representative to the Municipal Excess Liability Joint Insurance Fund, David Matchett as the Fund’s Representative to the Residual Claims Joint Insurance Fund, and Richard Brook as the Fund’s Representative, and David Matchett as the Alternate Representative to the New Jersey Municipal Environmental Risk Management Fund for the 2010 Fund Year.

Chairman Broski entertained a motion to adopt Resolution #2009-29 – Appointing MEL, RCF, E-JIF Representatives.

Motion by Mr. Mansdoerfer, seconded by Ms. Burger to adopt Resolution #2009-29 – Appointing MEL, RCF, E-JIF Representatives.

All in favor. Motion carried by unanimous vote.

MISCELLANEOUS BUSINESS

Next Meeting

The next Executive Committee Meeting of the BURLCOJIF will be held on Monday, November 16, 2009 at 4:00 PM at the Hainesport Township Municipal Building, Hainesport, NJ.

PUBLIC COMMENT

Chairman Broski opened the meeting to the public for comment.

Mr. Tunney of James Tunney Insurance requested clarification on how the Fund determines whether to settle or defend police liability claims. Two specific cases were in question.

Mr. Harvey stated that each case is independently evaluated for its level of liability. Fund Commissioners as well as Risk Management Consultants can contact the adjusters directly at any time. The Fund Solicitor, Executive Director, and Claims Administrator are also always available for questions regarding claims.

Hearing no further comments, Chairman Broski closed the public portion of the meeting.

EXECUTIVE SESSION MEETING – Resolution 2009-30

Chairman Broski presented Resolution 2009-30 and entertained a motion to go into a Closed Session to discuss matters effecting the protection and safety in the public and to discuss pending or anticipated litigation and/or contract negotiations.

Motion by Mr. Ruggiano seconded by Mr. Hatcher, to approve Resolution 2009-30. All in favor. Motion carried by unanimous vote.

A Closed Session of the BURLCOJIF was held and the meeting was then reopened to the public.

REOPEN PUBLIC PORTION OF THE MEETING

Chairman Broski entertained a motion to Reopen the Public Portion of the Meeting.

Motion by Mr. Hatcher seconded by Mr. Cramer, to reopen the public portion of the meeting. All in favor. Motion carried by unanimous vote.

CLAIMS PAYMENTS - APPROVAL

Chairman Broski asked for a motion for Approval of Claims Payment on the following claims as presented in Closed Session.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Hatcher, seconded by Ms. Ryan, to approve the following claims as discussed in Closed Session.

All in favor. Motion carried by unanimous vote.

AUTHORIZATION TO ABANDON SUBROGATION - APPROVAL

There were two matters presented for Abandonment of Subrogation by Mr. Harvey. The Fund Solicitor reviewed each matter and recommends subrogation abandonment.

Chairman Broski asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Ruggiano, seconded by Mr. Mansdoerfer, to approve the following claims as discussed in Closed Session.

All in favor. Motion carried by unanimous vote.

MOTION TO ADJOURN

Chairman Broski entertained a motion to adjourn the October 20, 2009 Executive Committee Meeting of the BURLCOJIF.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to adjourn the October 20, 2009 Executive Committee Meeting of the BURLCOJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 5PM.