BURLINGTON COUNTY MUNICIPAL JOINT INSURANCE FUND

HAINESPORT TOWNSHIP MUNICIPAL BUILDING

1 HAINESPORT CENTRE, RT. 537

HAINESPORT, NEW JERSEY

September 15, 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, September 15, 2009 at 4:00 PM, prevailing time. Deputy Executive Director, Paul Forlenza, AJG Risk Management Services, 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:

Richard Ireton, Alternate, Bass River

Luis Crespo, Representative, Beverly

Heather Cheesman, 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

Kathy Burger, Medford

Jennifer Blumenthal, Alternate, Mt. Laurel

J. Paul Keller, Springfield

Meghan Jack, Riverside

David Matchett, Shamong

Doug Cramer, Tabernacle

Absent were:

Joseph Broski, Mansfield

Monica Zur, North Hanover

Michael McFadden, Southampton

Donna Ryan, Westampton

Those also in attendance were:

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services

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

Joanne Hall, Safety Director, 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

APPOINTING ACTING FUND CHAIR AND ACTING FUND SECRETARY

Mr. Forlenza entertained a motion to Appoint an Acting Fund Chair and Acting Fund Secretary for the September Executive Committee Meeting.

Acting Fund Chair                      -           Kathy Burger, Medford

Acting Fund Secretary                  -           Jeffrey Hatcher, Delran

Mr. Forlenza asked members for their questions at this time. No questions were entertained.

Motion by Mr. Cramer, seconded by Mr. Mansdoerfer to Appoint an Acting Fund Chair and Acting Fund Secretary for the September Executive Committee Meeting.

All in favor. Motion carried by unanimous vote.

MONTHLY MEETING CONDUCT

Acting Chair Burger 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. Mansdoerfer, seconded by Mr. Matchett 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

Acting Chair Burger presented the meeting minutes of the July 17, 2009 Executive Committee Meeting, as found in the agenda packet, for approval.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Acting Chair Burger entertained a motion to approve the meeting minutes of the July 17^th Executive Committee Meeting as presented.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to approve the meeting minutes of the July 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.

Acting Chair Burger presented the Closed Session Meeting minutes of the July 17, 2009 Executive Committee Meeting for approval.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Acting Chair Burger entertained a motion to approve the meeting minutes of the July 17^h Executive Committee Meeting.

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

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

EXECUTIVE DIRECTOR'S REPORT

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

-        Lost Time Accident Frequency Report – The July and August 2009 LTAF Summary and Statewide Recap are included in the agenda packet for members’ review.

Members should take note that the LTAF rate for the BURCOJIF has increased over last year. There was an in depth discussion regarding this issue at today’s Executive Safety Committee Meeting.

-        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 report 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.

-        EPL Hotline – Authorized Contact List – The most recent list of authorized contacts for the EPL Attorney Hotline is made a part of the agenda packet. Only these individuals have the authority to access this service on behalf of the member municipality.

-        Financial Fast Track Report – The FFT reports for June and July 2009 are included in the agenda packet.

-        Statutory Bond Status – The latest listing of Statutory Bonds issued by the MEL for JIF members is made a part of the agenda packet. The list should be reviewed for accuracy. Questions can be directed to Cate Kiernan at PERMA.

-        Elected Officials Training – The Fund will again be sponsoring Elected Officials Training. The following dates and locations have been established for the training sessions. A “save-the-date” was e-mailed to members recently. Formal notification, including sign up sheets will be sent to members in the near future.

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

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

January 28, 2010 * Kerri Brooke Caterers, Hammonton

-        Managers & Supervisors Training – One of the requirements 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 “save-the-date” was e-mailed to members recently. Formal notification, including sign up sheets, will be sent to all members in the near future. 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

-        Coverage Manuals – All Fund Commissioners and Risk Management Consultants were presented with their 2009 Coverage Manual CD. The MEL is distributing the manuals electronically in a PDF format. It contains the policy documents for the Fund, and should be considered a permanent record and kept on file with the Municipal Clerk.

-        Public Officials Liability DVD – All Fund Commissioners and Risk Management Consultants were presented with the DVD “In the Scope of Your Authority”, including a cover memorandum. The purchase of the DVD was authorized earlier this year by the Fund. The DVD should be viewed by your Governing Body and Zoning and Planning Boards.

Members can obtain extra copies through the Executive Director’s office.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

SOLICITOR'S REPORT

Mr. Kearns had nothing to report for Open Session.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

SAFETY DIRECTOR'S REPORT

Ms. Hall reported that the Safety Director’s Report for July/ August Activities is made part of the agenda packet and is self-explanatory. She highlighted a few reminders for members.

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

-        2010 MSI Class Requests – The 2010 planning process has begun. Members should submit their requests for classes they would like to host from January through December 2010. All requests must be received prior to October 1, 2009. Smaller members that do not have 15 or more participants are encouraged to partner with a neighboring member. Members with questions regarding the courses can contact the Safety Director’s office.

-        Pandemic Preparedness Training Program – There will be a series of MSI classes devoted to the Pandemic H1N1 Flu with the focus on preparation. 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. Announcements will go out shortly.

-        DPW Roundtable – This program took place today, September 15^th, with a good showing. An interactive session on Electric Arc Flashes was conducted.

Acting Chair Burger 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.

Acting Chair Burger 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 July/ August 2009 from CSG Solutions, which is contained in the agenda packet.

Lost Opportunity Days Summary Report – August 2009

The Lost Opportunity Days Summary Report of Open Cases as of August 25, 2009 reflected 74.03% 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 August 2008 thru August 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 monitors the length of time files remain open in Medical Case Management in comparison to the total files being managed. The BURLCOJIF had just over a 100 cases open, and on average they stayed open 26.19 days

§       Bill Review Savings Breakdown for August 2009

CSG Negotiated Reduction – Out of Network           -           $0.00

UCR Reductions                                     -           $1,103.41

PPO Reductions                                      -           $41,326.52

Code Review Reductions                          -           $924.04

CSG Logic Reductions                                         -           $197.20

Total Reductions for August 2009              -           $43,551.07/ 45.70%

Acting Chair Burger 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 two month period of July and August 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 $17,558.49. This generated an average annual yield of .98%. However, after including an unrealized gain of $4,092.50 in the asset portfolio, the yield is adjusted to 1.18% for this period. The total overview of the asset portfolio for the Fund shows an overall gain of $43,162.80 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 $428,285.29. 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 $9,156,979.99 to a closing balance of $11,004,033.89 showing an increase in the Fund of $1,847,053.90.

August 2009 Bill List - Ratification

Mr. Tontarski presented the August 2009 Bill List in the amount of $167,226.50 as provided to the membership in the agenda packet. The August 2009 Bill List consists of administrative costs for operating the Fund.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Acting Chair Burger entertained a motion to ratify the August 2009 Bill List in the amount of $167,226.50 as presented.

Motion by Mr. Mansdoerfer, seconded by Mr. Matchett to ratify the August 2009 Bill List and in the amount of $167,226.50 as presented.

All in favor. Motion carried by unanimous vote.

September 2009 Bill List - Approval

Also, for the Executive Committee’s consideration, Mr. Tontarski presented the September 2009 Bill List in the amount of $45,187.74 as provided to the membership in the agenda packet.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Acting Chair Burger entertained a motion to accept the August 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the September 2009 Bill List in the amount of $45,187.74 as presented.

Motion by Mr. Cramer, seconded by Mr. Mansdoerfer to accept the August 2009 Treasurer’s Report, approve the Loss Run Payment Register, and the September 2009 Bill List in the amount of $45,187.74 as presented.

All in favor. Motion carried by unanimous vote.

Subrogation Salvage Report

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

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Committee REPORTS

Strategic Planning Committee Meeting Report – July 21, 2009

The Strategic Planning Committee report was presented verbally at the July Executive Committee Meeting. The official meeting minutes are contained in the agenda packet for the memberships’ review.

Finance Committee Meeting Report – July 30, 2009

Mr. Hatcher reported on the Finance Committee Meeting that took place on July 30^th. The official meeting minutes are contained in the agenda packet for the membership’s review. He highlighted the following items.

§       2010 Budget

§       Return of Surplus of $375,000

§       2009 Assessment Allocation

§       2010 Service Provider Contracts

§       Exposure Data Management

Resolution Authorizing the Release of Surplus

Mr. Hatcher presented Resolution 2009-24 – Authorizing Refund of Closed Year Accounts 1995 – 2005 Surplus for approval. It is the Finance Committee’s recommendation that $375,000 representing Closed Years surplus be refunded to the membership.

Acting Chair Burger entertained a motion to adopt Resolution 2009-24 – Authorizing Refund of Closed Year Accounts 1995 – 2005 Surplus as presented.

Motion by Mr. Ruggiano, seconded by Mr. Matchett to adopt Resolution 2009-24 – Authorizing Refund of Closed Year Accounts 1995 – 2005 Surplus.

All in favor. Motion carried by unanimous vote.

Resolution Authorizing the Purchase of an Exposure Data Management System from Exigis, Inc.

Mr. Hatcher presented Resolution 2009-25 – Appointing Exigis, LLC as the Exposure Data Manager and Authorizing the Configuration, Deployment, and Support of the Riskworks Exposure Data Management System for approval. It is the Finance Committee’s recommendation that the Fund move forward with the purchase of the Exigis Data Management System for collecting, management, and warehousing accurate exposure data. The amount of $8,403.15 will be taken from the current budget, and $6,016.15 from the 2010 budget.

Acting Chair Burger entertained a motion to adopt Resolution 2009-25 – Appointing Exigis, LLC as the Exposure Data Manager and Authorizing the Configuration, Deployment, and Support of the Riskworks Exposure Data Management System as presented.

Motion by Mr. Mansdoerfer, seconded by Mr. Matchett to adopt Resolution 2009-25 – Appointing Exigis, LLC as the Exposure Data Manager and Authorizing the Configuration, Deployment, and Support of the Riskworks Exposure Data Management System.

All in favor. Motion carried by unanimous vote.

Executive Safety Committee Report – September 15, 2009

Mr. Cramer briefly outlined the Executive Safety Committee meeting that took place today, September 15^th. The official meeting minutes will be contained in the October agenda packet. He highlighted the following items.

§       Review of Semi-Annual Safety Director’s Report

§       Review of Loss Ratio Reports

§       Review of MEL EPL Training

§       Review of 2009 Safety Incentive Program

§       Review of 2010 proposed Safety Incentive Program

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

MEL/RCF/ E-JIF REPORT

MEL Report – September 2, 2009

Mr. Hatcher reported that the MEL met on September 2^nd. The meeting minutes are self-explanatory and made a part of the agenda packet. He highlighted the following items.

2010 Rate Table & Budget – The 2010 preliminary Rate Table and Budget were reviewed. The budget reflects an overall increase of 4.2% when applying the 2009 exposures.

The Committee discussed the impact of recent court decisions on EPL coverage and noted there are a number of member departments that have become almost “uninsurable” for employment-related claims.

Strategic Planning Committee – The Committee met in July and August to discuss the MEL’s loss experience and to develop alternative pricing structures. The MEL Board accepted the recommendation of the Committee that include the following.

§       Increasing minimum local fund retention to $250,000

§       Double deductibles and co-insurance provisions for employment practices

§       Implement surcharge based on overall loss experience

§       Develop separate EPL rate for police and non-police

§       Remove EPL co-insurance cap when a town is placed on probation

RCF Report – September 2, 2009

Mr. Matchett reported that the RCF met on September 2^nd. The meeting minutes are self-explanatory and made a part of the agenda packet. He highlighted the following item.

2010 Budget The budget was introduced. A public hearing will take place on October 21, 2009.

E-JIF Report – September 2, 2009

Mr. Brook reported that the E-JIF met on September 2^nd. The meeting minutes are self-explanatory and made a part of the agenda packet. He highlighted the following items.

2010 Budget The budget was introduced. A public hearing will take place on November 18, 2009.

NJ SEM – Currently, the NJ SEM has 93 members. There will be another meeting in the near future to determine the course of action for the group.

MISCELLANEOUS BUSINESS

Health Insurance Fund – Update

Mr. Forlenza reported that in early-2008 the Executive Director’s office was approached about the creating a health insurance fund that would operate very similarly to that of the JIF.

A very extensive study was conducted by the Executive Director’s office in conjunction with the ACM and TRICO JIFs. A Steering Committee was appointed made up of 7-8 Fund Commissioners.

It was determined that the only way a health insurance fund would be successful is if the network involved was top quality. The network of choice at the time was AmeriHealth, and they were not available to the Fund.

Interest has been reignited due to the increases posed by the State Health Benefits Plan. And, AmeriHealth is now willing to offer the Fund its premium network. This would not work as a traditional health insurance fund, in the way that the JIF operates. It would more be along the lines of a cooperative purchasing arrangement. Wellness will be a major component if an agreement is established.

A meeting will be scheduled the first week of October, most likely at Kerri Brooke Caterers in Hammonton, with morning and afternoon sessions, to discuss the cooperative purchasing agreement with AmeriHealth. Invitations will go out shortly.

Next Meeting

The next Executive Committee Meeting of the BURLCOJIF will be held on Tuesday, October 20, 2009 at 4:00 PM at the Hainesport Township Municipal Building, Hainesport, NJ.

PUBLIC COMMENT

Acting Chair Burger opened the meeting to the public for comment.

Hearing no comments, Acting Chair Burger closed the public portion of the meeting.

EXECUTIVE SESSION MEETING – Resolution 2009-26

Acting Chair Burger presented Resolution 2009-26 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. Matchett seconded by Mr. Ruggiano, to approve Resolution 2009-26. 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

Acting Chair Burger entertained a motion to Reopen the Public Portion of the Meeting.

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

CLAIMS PAYMENTS - APPROVAL

Acting Chair Burger asked for a motion for Approval of Claims Payment on the following claims as presented in Closed Session.

Acting Chair Burger asked if there were any questions at this time. No questions were entertained.

Motion by Mr. Cramer, 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 were no matters presented for Abandonment of Subrogation by Mr. Harvey.

MOTION TO ADJOURN

Acting Chair Burger entertained a motion to adjourn the September 15, 2009 Executive Committee Meeting of the BURLCOJIF.

Motion by Mr. Matchett, seconded by Mr. Mansdoerfer to adjourn the September 15, 2009 Executive Committee Meeting of the BURLCOJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 4:45PM.