BURLINGTON COUNTY MUNICIPAL JOINT INSURANCE FUND

HAINESPORT TOWNSHIP MUNICIPAL BUILDING

1 HAINESPORT CENTRE, RT. 537

HAINESPORT, NEW JERSEY

March 17, 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, March 17, 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:

T. Richard Bethea, Bass River

Don Arter, Beverly

John William Collom, III, Bordentown City

Leonard Klepner, Bordentown Township

Glenn McMahon, Chesterfield

Michael Templeton, Delanco

Jeffrey Hatcher, Delran

Linda Dougherty, Edgewater Park

Richard Brook, Florence

Edward Ruggiano, Alternate, Hainesport

Michael Mansdoerfer, Lumberton

Joseph Broski, Mansfield

Kathy Burger, Medford

Debra Fourre, Mt. Laurel

Monica Zur, North Hanover

J. Paul Keller, Springfield

Meghan Jack, Riverside

David Matchett, Shamong

Michael McFadden, Southampton

Doug Cramer, Tabernacle

Donna Ryan, Westampton

Absent were:

Those also in attendance were:

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services

William J. Kearns, Jr., Esquire, Fund Solicitor, Kearns, Reale & Kearns

Tom Tontatski, Fund Treasurer

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

Alice Lihou, 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

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 February 17, 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.

Note: Mr. Brook did not attend the January 20^th Reorganization Meeting of the Fund, and therefore abstained at the February Executive Committee Meeting during roll call.

Chairman Broski entertained a motion to approve the meeting minutes of the February 17^th Executive Committee Meeting as presented.

Motion by Mr. Matchett, seconded by Mr. Cramer to approve the meeting minutes of the February 17^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 February 17, 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 February 17^th Executive Committee Meeting.

Motion by Mr. Matchett, seconded by Mr. Hatcher to approve the Closed Session Meeting minutes of the February 17^th Executive Committee Meeting as presented. All in favor. Motion carried by unanimous vote.

The Closed Session Meeting minutes of the February 17^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 February 17, 2009 meeting were collected at this time.

EXECUTIVE DIRECTOR'S REPORT

Mr. Forlenza stated the Executive Director’s Report is found in the March 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 2009 SIP Awards money was mailed out February 23^rd. Members are asked to follow the instructions for claming the award. The deadline for claming 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 claming the 2009 OSB allowance were mailed on February 6, 2009. The deadline for expending or encumbering these funds is November 30, 2009.

-       Financial Disclosure Forms – The forms were mailed on February 12^th to each Fund Commissioner and appointed JIF officials. All Fund Commissioners, the Executive Director, Solicitor, and Treasurer are asked to complete these forms and provide two copies with original signatures to the Fund Office by April 20, 2009 in order to meet the filing deadline with the State.

-       Payroll Audits – On March 3^rd a letter was e-mailed to all Municipal Clerks, with a copy to the Fund Commissioners, advising that once again Overland Solutions, Inc. will be performed workers’ compensation exposure verification audits of members’ year 2008 payrolls. This will serve as the basis for your 2010 workers’ compensation renewal data. The Payroll Auditor will be contacting each member to set up a date and time.

-       Property Appraisals – On March 6^th, a copy of the 2009 Property Schedules as updated by our property appraisers ASSETWORKS(MAXIMUS) were mailed to all RMCs asking that they advise ASSETWORKS of any additions or deletions of insurable properties that have occurred since these schedules were last updated. RMCs are asked to respond to ASSETWORKS by April 3, 2009.

-       New Fund Commissioner Orientation – A survey was sent to all Fund Commissioners in February seeking interest in the New Fund Commissioner Orientation. The response was good, with 4-5 interested Fund Commissioners. The thought is to perform an on-line meeting in combination with the ACM and TRICO JIF. Details will be forthcoming.

-       Agenda Packets – For the third month in a row, the Executive Director’s office has been able to consolidate and e-mail out the agenda packet. Since there are still a good number of agenda packets being printed, another survey will be sent to members, to see if the number of agenda packets being mailed can be reduced.

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

SOLICITOR'S REPORT

Mr. Kearns’ report is for Closed Session only.

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

-       Web- Based Learning Management System – Web-based training instructions are included in the report.

-       Upcoming MSI Training – The listing for the upcoming MSI training programs for March and April 2009 are included in the report. A listing of all 2009 MSI Classes can be found on the MEL website www.njmel.org. Members should visit the website for up-to-date class information. Also, there is a 2009 MSI Registration Form included in the report for pre-registration.

-       Train-the-Trainer Class- Bloodborne Pathogens – A list of the classes being held in 2009 is included in the report.

-       CEUs/ TCHs – A list of the programs that qualify for CEUs/ TCHs is included in the report.

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

CLAIMS ADMINISTRATOR'S REPORT

Ms. Lihou’s presented the following report.

Medicare, Medicaid, and SCHIP Extension Act of 2007

A letter penned by Scibal’s President, Ann L. Noble to the Fund’s Executive Director, Paul Miola dated March 4, 2009 was presented to the membership as a handout.

Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA) adds new mandatory reporting requirements for both group health plans and non-group health plans, which includes Liability, No-Fault Insurance and Workers’ Compensation Plans. This recently passed legislation requires that all claim payers coordinate with the Medicare program. The new requirements involve a registration phase and a reporting phase that apply to insurers and self-insured entities. It is important to note that for self-insured “non group health plans” registration cannot be delegated to a Third Party Administrator (TPA). Ultimate responsibility for complete and timely submission of data will be the responsibility of the self-insurer. The registration process must be completed by the self-insured entity of the “Responsible Reporting Entity” by June 30, 2009.

As your designated TPA for “non group health plans”, Scibal Associates has thoroughly reviewed the updates generated to date by the Centers for Medicare & Medicare Services (CMS) regarding these reporting requirements. There are certain elements of Section 111 that has not yet been finalized. However, it is certain that the new reporting requirements will necessitate the collection of additional information from claimants. In an effort to assist our client, Scibal is currently working on system programming that will facilitate the collection and storage of mandatory data in our claims system. Additionally, we are evaluating reporting mechanisms.

There are many organizations which have/are developing expertise to fulfill organizations’ needs related to these new requirements as a new product line. Scibal Associates does not look at these requirements as a new revenue producing opportunity. Alternatively, we are evaluating programming needs for direct reporting to CMS as well as partnering with third parties in an effort to offer our clients cost savings and process efficiencies.

We will continue to provide you with updates on this matter designed to assist our clients in complying with registration and reporting requirements as a Responsible Reporting Entity.

In the meantime, we highly recommend that you visit the Centers for Medicare and Medicare Services (CMS) website for the most updated information about your responsibilities under Section 111. To learn more about how these new requirements affect you as a self-insured entity, we encourage you to visit the Centers for Medicare and Medicare Services website: https://www.cms.hhs.gov/MandatoryInsRep/.

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

Ms. Pard has the reports for those members averaging 3 or more days to report a claim.

Lost Opportunity Days Summary Report – February 2009 (handout)

Ms. Pard presented the Lost Opportunity Days Summary Report of Open Cases as of February 25, 2009. The percentage of Transitional Duty days utilized for the BURLCOJIF was 76.52%. (The Lost Opportunity Days for Mt. Laurel may not be accurate and is presently being investigated. If a correction is made, it will be noted on forthcoming reports.)

Managed Care Update (handout)

Ms. Pard presented the Managed Care Update as a handout to the membership. This month’s report highlights the following.

§       Case Management: BURLCO Average OOW Days vs. MDS National Industry Standard

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 February 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 $10,793.09. This generated an average annual yield of 1.25%. However, after including an unrealized loss of $1,820.00 in the asset portfolio, the yield is adjusted to 1.04% for this period. The total overview of the asset portfolio for the Fund shows an overall gain of $19,812.80 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 $81,495.16. 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 $10,428,220.30 to a closing balance of $10,283,464.26 showing a decrease in the Fund of $144,756.04.

March 2009 Bill List - Approval

For the Executive Committee’s consideration, Mr. Tontarski presented the March 2009 Bill List in the amount of $63,309.57 as provided to the membership in the agenda packet. The March 2009 Bill List consists of administrative costs for operating the Fund.

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

Chairman Broski entertained a motion to accept the February 2009 Treasurer’s Report, and approve the Loss Run Payment Register and the March 2009 Bill List in the amount of $63,309.57 as presented.

Motion by Mr. Hatcher, seconded by Mr. Mansdoerfer to accept the February 2009 Treasurer’s Report, and approve the Loss Run Payment Register and the March 2009 Bill List in the amount of $63,309.57 as presented.

All in favor. Motion carried by unanimous vote.

Subrogation Salvage Report

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

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

COMMITTEE REPORTS

Finance Committee Report – Budget Amendment

Mr. Hatcher, on behalf of the Finance Committee, presented the proposed Amendment to the 2009 Budget that is made part of the agenda packet. The amendments incorporate into the budget Bordentown Township and North Hanover Township plus RMC Fee Adjustments. The total proposed 2009 Amended Budget for the BURLCOJIF is $5,943,403.

Further, Mr. Hatcher presented the 2009 Amended Assessment Certification for 21 members.

2009 Budget Amendment Public Hearing – Open

Chairman Broski entertained a motion to Open the 2009 Budget Amendment Public Hearing.

Motion by Mr. Mansdoerfer, seconded by Ms. Ryan to Open the 2009 Budget Amendment Public Hearing. All in favor. Motion carried by unanimous vote.

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

2009 Budget Amendment Pubic Hearing - Closed

Chairman Broski entertained a motion to Close the 2009 Budget Amendment Public Hearing.

Motion by Mr. Mansdoerfer, seconded by Mr. Hatcher to Close the 2009 Budget Amendment Public Hearing. All in favor. Motion carried by unanimous vote.

2009 Amended Budget Adoption

Chairman Broski entertained a motion to Adopt the 2009 Amended Budget as presented.

Motion by Mr. Hatcher, seconded by Ms. Burger to Adopt the 2009 Amended Budget as presented.

All in favor. Motion carried by unanimous vote.

2009 Amended Assessment Certification

Chairman Broski entertained a motion to Adopt the 2009 Amended Assessment Certification as presented.

Motion by Ms. Ryan, seconded by Mr. Mansdoerfer to Adopt the 2009 Assessment Certification as presented.

All in favor. Motion carried by unanimous vote.

Executive Safety Committee Report – March 17, 2009 Meeting

Mr. Cramer gave a verbal account of the March 17^th Executive Safety Committee Meeting that was held today just prior to the March Executive Committee Meeting. The meeting minutes will be made a part of the April agenda packet. He outlined the following items discussed in Committee.

§       2008 Safety Director’s Annual Report

§       Loss Ratio Reports Distributed January 2009

§       Member Renewals

§       2009 Regional Training

§       2009 Optional Safety Budget

§       2009 Planning Retreat Topics

§       Next Meeting: June 16, 2009

MEL/RCF/ E-JIF REPORT

MEL Report – March 4, 2009 Meeting

Mr. Hatcher verbally reported on the March 4^th MEL Meeting he attended. At the meeting a resolution was passed to increase the SIR to $250,000 January 1, 2010 due to bracket-creep and increased cost of claims.

RCF Report – March 4, 2009 Meeting

Mr. Matchett reported on the March 4^th RCF Meeting he attended. The meeting minutes are made a part of the agenda packet. The issue of Certificates of Insurance was discussed at the meeting. When hiring or contracting outside vendors, such as engineers that are not covered by the JIF, municipalities need to make certain Certificates of Insurance are issued. Members can contact their RMCs, Municipal Solicitor, or Executive Director’s office with questions.

E-JIF Report – March 4, 2009 Meeting

Mr. Brook reported on the March 4^th RCF Meeting he attended. The meeting minutes are made a part of the agenda packet. He highlighted the following item from the meeting.

Establishing a Municipal Sustainable Energy Joint Meeting

In 2007, the EJIF commissioned PMK to conduct a study of nine member municipalities’ gas and electric consumption. They were asked to ascertain if a savings could be achieved by bidding these two energy costs.

Attached to the report is the white paper executive summary that was developed and accepted by the EJIF Board. Using the estimated savings from aggregation in the sample study, a typical municipality would expect to save at least 4% on electric expenditures and around 7% on gas expenditures.

Within the next 3-4 months, Bob Girard of PMK will give a presentation to the BURLCOJIF regarding Establishing a Municipal Sustainable Energy Joint Meeting.

Resolution Authorizing Membership Renewal in the NJ Municipal Environmental Risk Management Fund (E-JIF)

Chairman Brook entertained a motion to adopt Resolution #2009-15 – Authorizing Membership Renewal in the NJ Municipal Environmental Risk Management Fund (E-JIF) as found in the agenda packet.

Motion by Ms. Ryan, seconded by Ms. Burger to adopt Resolution #2009-15 – Authorizing Membership Renewal in the NJ Municipal Environmental Risk Management Fund (E-JIF) as found in the agenda packet.

All in favor. Motion carried by unanimous vote.

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

MISCELLANEOUS BUSINESS

Next Meeting

The next Executive Committee Meeting of the BURLCOJIF will be held on Tuesday, April 21, 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.

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

EXECUTIVE SESSION MEETING – Resolution 2009-16

Chairman Broski presented Resolution 2009-16 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. Hatcher seconded by Ms. Ryan, to approve Resolution 2009-16. 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 Ms. Ryan, 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. Ryan, seconded by Mr. Mansdoerfer, to approve the following claims as discussed in Closed Session.

All in favor. Motion carried by unanimous vote.

AUTHORIZATION TO ABANDON SUBROGATION - APPROVAL

Chairman Broski asked for a motion for Approval of Abandonment of Subrogation on the following claim(s) 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. Hatcher, to approve the following claim(s) as discussed in Closed Session.

All in favor. Motion carried by unanimous vote.

MOTION TO ADJOURN

Chairman Broski entertained a motion to adjourn the March 17, 2009 Executive Committee Meeting of the BURLCOJIF.

Motion by Mr. Hatcher, seconded by Ms. Burger to adjourn the March 17, 2009 Executive Committee Meeting of the BURLCOJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 4:45 PM.