BURLINGTON COUNTY MUNICIPAL JOINT INSURANCE FUND

HAINESPORT TOWNSHIP MUNICIPAL BUILDING

1 HAINESPORT CENTRE, RT. 537

HAINESPORT, NEW JERSEY

November 16, 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 Monday, November 16, 2009 at 4:00 PM, prevailing time. Chairman Joseph Broski, Mansfield Township, presiding. The meeting was called to order at 4PM.

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:

Richard Ireton, Alternate, Bass River

Hal Robertson, Alternate, Beverly

Heather Cheesman, Bordentown City

Leonard Klepner, Bordentown Township

Glenn McMahon, Chesterfield

Michael Templeton, Delanco

Jeffrey Hatcher, Delran

Linda Dougherty, Edgewater Park (arrived 4:10pm)

Richard Brook, Florence

Maryann Regn, Alternate, Lumberton

Joseph Broski, Mansfield

Kathy Burger, Medford

Michael McFadden, Southampton

J. Paul Keller, Springfield

Meghan Jack, Riverside

David Matchett, Shamong

Doug Cramer, Tabernacle

Donna Ryan, Westampton

Absent were:

Edward Tuliano, Hainesport

Debra Fourre, Mt. Laurel

Monica Zur, North Hanover

Those also in attendance were:

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services

William J. Kearns, Jr. Esquire, 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

Hardenberg Insurance Group

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 Ms. Burger 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 October 26, 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 October 26^th Executive Committee Meeting as presented.

Motion by Mr. Matchett, seconded by Mr. Cramer to approve the meeting minutes of the October 26^th Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

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 October 26^th, 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 meeting minutes of the October 26^th Executive Committee Meeting.

Motion by Mr. Matchett, seconded by Ms. Burger to approve the Closed Session Meeting minutes of the October 26^th Executive Committee All in favor. Motion carried by unanimous vote.

The Closed Session Meeting minutes of the October 26^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 October 26, 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 reporting detailing the available balanced for each member is made a part of the agenda packet. The deadline for claiming or encumbering 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. The deadline for claiming 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 liability loss funding premium by $250 for each municipal elected official who attends one of the training sessions by March 31, 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 be a session held in March 2010. Also, a session will be held during the League of Municipalities Conference on November 18^th at 3:45pm in Room 303 of the Atlantic City Convention Center.

-       EPL Plan of Risk Management Updates – On October 1^st, the MEL distributed a memorandum regarding the 2010-2011 Employment Practices Liability (ELP) Program.

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.

The Executive Director’s office will distribute the updates on CD for the training of employees at the December 2009 Executive Committee Meeting.

-       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 first session was held on November 10^th at Bradford Estates in Hainesport; turnout was good with 80 individuals in attendance in the morning and 50 in the afternoon. Copies of the sign-in sheets will be in future agenda packets.

The dates of the remaining training sessions, with AM & PM sessions are as follows:

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

-       New Member Activity – The Borough of Wrightstown has contacted the Fund stating they are considering making application to the BURLCOJIF for membership effective January 1, 2010.

-       2010 Safety Calendars – Each member was presented with their 2010 Safety Calendars. Members not in attendance will receive their calendars at the December 2009 Executive Committee Meeting or via regular mail. Members needing extra copies can contact the Executive Director’s office.

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

SOLICITOR'S REPORT

Mr. Kearns gave the following report for Open Session.

-       Preservation of Electronic Mail – There has been a move in the courts to impose sanctions on businesses and individuals that are not preserving electronic data. Electronic discovery is separate from what DARM states needs to be preserved.

The Fund Solicitor and Executive Director are exploring if the JIF can be used as a vehicle for towns to come into compliance.

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 October Activities is made part of the agenda packet and is self-explanatory. He highlighted a few reminders for members.

-       MEL Video Library – A list of the members utilizing the MEL Video Library is included in the report. The newest additions for 2009-2010 to the library are also listed.

-       MSI Learning Management System – There is onsite training available through Conner Strong. Also, there are easy to use tutorials accessible through the NJMEL.org website.

-       MSI Classes – A list of the remaining MSI training programs along with CEU’s is contained in the report. Re-registration is required.

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 October 2009 from CSG Solutions, which is contained in the agenda packet.

Lost Opportunity Days Summary Report – October 2009

The Lost Opportunity Days Summary Report of Open Cases as of October 25, 2009 reflected 60.00% 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 October 2008 thru October 2009 reflects the following averages.

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 October 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 $10,487.56. This generated an average annual yield of 1.21%. However, after including an unrealized loss of $1,062.50 in the asset portfolio, the yield is adjusted to 1.08% for this period. The total overview of the asset portfolio for the Fund shows an overall gain of $49,135.00 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 $459,221.38. The claims detail is as follows:

Cash Activity for the Month(s)

During the reporting period the Fund’s “Cash Position” changed from an opening balance of $10,797,661.81 to a closing balance of $10,074,008.08 showing a decrease in the Fund of $723,653.73.

November 2009 Amended Bill List - Approval

For the Executive Committee’s consideration, Mr. Tontarski presented the November 2009 Amended Bill List in the amount of $56,294.74 as provided to the membership as a handout. The amendment is a change in the dollar amount of Item #3 to $36.54.

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

Chairman Broski entertained a motion to accept the October 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the November 2009 Amended Bill List in the amount of $56,294.74 as presented.

Motion by Mr. Matchett, seconded by Mr. Hatcher to accept the October 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the November 2009 Amended Bill List in the amount of $56,294.74 as presented.

All in favor. Motion carried by unanimous vote.

Subrogation Salvage Report

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

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

COMMITTEE REPORTS

Strategic Planning Committee Meeting Report – October 20, 2009

Ms. Burger presented a verbal report of the Strategic Planning Committee Meeting on October 20^th. The self-explanatory minutes from the meeting are made a part of the agenda packet for the members’ review.

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

Finance Committee Meeting Report

Mr. Hatcher reported that the 2010 Budget Message is contained in the agenda packet. He presented for Introduction the 2010 Budget, 2010 Assessment Certification and the 2010 Assessment Allocation Strategy.

The Fund Year 2010 Draft Budget of $4,375,872 represents an increase of 7.00%. Loss Funds increased $285,827 or 8.62% as a result of increasing claims costs and raising the JIF Self Insured Retention from $200,000 to $250,000 while Operating Expenses increased $520 or 0.07%.

Mr. Forlenza referred by the membership to an article included in the agenda packet entitled States of Disparity.

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

Chairman Broski entertained a motion to Introduce the 2010 Budget, 2010 Assessment Certification and the 2010 Assessment Allocation Strategy. A Public Hearing will be advertised for the 2010 Budget Adoption at the December 22, 2009 Executive Committee Meeting.

Motion by Mr. Matchett, seconded by Ms. Ryan to Introduce the 2010 Budget, 2010 Assessment Certification and the 2010 Assessment Allocation Strategy.

All in favor. Motion carried by unanimous vote.

Nominating Committee Meeting Report – November 4, 2009

Ms. Dougherty presented the Nominating Committee Meeting minutes from November 4^th as a handout to the membership. She stated the Committee is recommending the following Nomination Slate for 2010. Roll call election of the slate, following acceptance of nominations from the floor, will occur at the January 2010 Reorganization Meeting.

Any member wishing to discuss the 2010 Nomination Slate can contact Ms. Dougherty or any member of the Nominating Committee as well as the Executive Director’s office.

MEL/RCF/ E-JIF REPORT

MEL Report – October 21, 2009

Mr. Hatcher reported on the October 21^st MEL Meeting. The self-explanatory minutes are made a part of the agenda packet for members’ review.

The Board introduced its 2010 Budget for member municipalities based on the 2010 rate table against 2009 exposures. Initial actual projections for EPL coverage reflected an 85% increase in the rate. There are suggested increases in deductibles and co-insurance provisions to reduce the projection. There will be rate differentials for police and non-police personnel established in the budget. The budget also includes a graduated surcharge for member JIFs with loss ratios in excess of 90%. Professional fee increases will be 2%. A public hearing is scheduled for November 18^th at 5PM at the League of Municipalities Convention in Atlantic City.

Any member interested in MEL Committee participation can contact the MEL, Executive Director’s office or Mr. Hatcher.

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

DECEMBER 2009 EXECUTIVE COMMITTEE MEETING

Chairman Broski entertained a motion to authorize the Executive Director to re-advertise the December 2009 Executive Committee Meeting to the Medford Public Safety Building, 91 Union Street, Medford, New Jersey.

Motion by Mr. Matchett, seconded by Mr. Cramer to authorize the Executive Director to re-advertise the December 22, 2009 Executive Committee Meeting to the Medford Public Safety Building, 91 Union Street, Medford, New Jersey.

All in favor. Motion carried by unanimous vote.

MISCELLANEOUS BUSINESS

Next Meeting

The next Executive Committee Meeting of the BURLCOJIF will be held on Tuesday, December 22, 2009 at 4:00 PM at the Medford Township Public Safety Building, Medford, NJ..

PUBLIC COMMENT

Chairman Broski opened the meeting to the public for comment.

Ms. Mary Anne Reinhart, Burlington County Freeholder and Shamong Township resident posed questions regarding the increase in the 2010 Self Insured Retention and how member municipalities are assessed; the 2009 MEL EPL Elected Officials $250 training credit, the 2010 JIF Budget increases, and 2010 Professional Fees.

Mr. Forlenza answered Ms. Reinhart’s questions to her satisfaction. She did request a copy of the total dollar amount for the credit awarded to elected officials to attend the 2009 EPL training. Mr. Forlenza will contact the MEL and forward to information to Ms. Reinhart.

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

EXECUTIVE SESSION MEETING – Resolution 2009-31

Chairman Broski presented Resolution 2009-31 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. Cramer seconded by Ms. Burger, to approve Resolution 2009-31. 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. Matchett seconded by Ms. Burger, 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 Ms. Burger, seconded by Mr. Matchett, to approve the following claims as discussed in Closed Session.

All in favor. Motion carried by unanimous vote.

AUTHORIZATION TO ABANDON SUBROGATION - APPROVAL

There was one (1) matter 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 Ms. Burger, seconded by Mr. Matchett, 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 November 16, 2009 Executive Committee Meeting of the BURLCOJIF.

Motion by Mr. Matchett, seconded by Ms. Burger to adjourn the November 16, 2009 Executive Committee Meeting of the BURLCOJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 5PM.