OPEN SESSION MINUTES

BURLINGTON COUNTY MUNICIPAL JOINT INSURANCE FUND

Hainesport Township Municipal Building

1 Hainesport Centre – Rt. 537

Hainesport, New Jersey

May 18, 2010 - 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, May 18, 2010 at 4:00 PM, prevailing time. Chair Donna Ryan, Westampton 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

Glenn McMahon, Chesterfield

Jeffrey Hatcher, Delran

Richard Brook, Florence

Michael Mansdoerfer, Lumberton

Dawn Bielec, Alternate, Medford

Patricia Halbe, Alternate, Mt. Laurel

Meghan Jack, Riverside

David Matchett, Shamong

Michael McFadden, Southampton

J. Paul Keller, Springfield

Doug Cramer, Tabernacle

Donna Ryan, Westampton

Freda Gorman, Wrightstown

 

Absent were:

Dawn Human, Beverly

Heather Cheesman, Bordentown City

Frank Nucera, Bordentown Township

Michael Templeton, Delanco

Linda Dougherty, Edgewater Park

Paul Tuliano, Hainesport

Arthur Puglia, Mansfield

Monica Zur, North Hanover

 

Those also in attendance were:

Paul J. Miola, CPCU, Executive Director, AJG Risk Management Services

Paul Forlenza, Deputy Executive Director, AJG Risk Management Services

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

Tom Tontarski, Fund Treasurer

Joanne Hall, Safety Director, Conner Strong Risk Services

Alice Lihou, 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

The Barclay Group

 

MONTHLY MEETING CONDUCT

Chair Ryan 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 Ms. Jack to allow the meeting to be conducted directly by the Fund Commissioners present. All in favor. Motion carried by unanimous vote.

 

ACTING FUND SECRETARY

Due to Secretary Burger being absent, Chair Ryan entertained a motion for Executive Committee Member Hatcher to serve as Acting Secretary for the May 2010 Executive Committee Meeting.

Motion by Mr. Mansdoerfer, seconded by Mr. Keller for Executive Committee Member Hatcher to serve as Acting Secretary for the May 2010 Executive Committee Meeting. All in favor. Motion carried by unanimous vote.

APPROVAL OF THE MINUTES

Chair Ryan presented the meeting minutes of the April 20, 2010 Executive Committee Meeting, as found in the agenda packet, for approval.

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

Chair Ryan entertained a motion to approve the meeting minutes of the April 20^th Executive Committee Meeting as presented.

Motion by Mr. Mansdoerfer, seconded by Mr. Cramer to approve the meeting minutes of the April 20^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.

Chair Ryan presented the Closed Session Meeting minutes of the April 20, 2010 Executive Committee Meeting for approval.

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

Chair Ryan entertained a motion to approve the meeting minutes of the April 20^th Executive Committee Meeting.

Motion by Mr. Mansdoerfer, seconded by Ms. Jack to approve the Closed Session Meeting minutes of the April 20^thExecutive Committee All in favor. Motion carried by unanimous vote.

The Closed Session Meeting minutes of the April 20^th meeting shall not be released to members of 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 April 20, 2010 meeting were collected at this time.

 

EXECUTIVE DIRECTOR'S REPORT

Mr. Miola stated the Executive Director’s Report is found in the May 2010 agenda packet and is self-explanatory. He highlighted the following items from the report.

-       2009 Safety Incentive Program Awards – A letter describing how to collect the 2009 SIP award moneys was mailed out February 12^th. Members should follow the instructions for claiming awards. The deadline for claiming these funds is November 30, 2010.

-       2010 Optional Safety Budget – A reporting detailing the available balances for each member for the 2010 OSB is included in the packet. The deadline for claiming or encumbering these funds was November 30, 2010.

-       EPL Plan of Risk Management – A copy of the October 1, 2009 correspondence outlining the program is made a part of the agenda packet. The deadline to quality for both the deductible and rate incentives retroactively to January 1, 2010 has been moved back to May 31, 2010.

-       Police Training Announcement – Three final make-up sessions have been scheduled. A copy of the invitation including dates, locations, and registration form is made a part of the agenda packet. Again, this training is an additional requirement of the MEL’s 2010 EPL Program.

-       Payroll Audits – Overland Solutions has completed the workers’ compensation exposure verification audits of each member’s year 2009 payrolls.

-       Property Appraisals – Assetworks has completed the appraisal process. Members should be receiving a copy of their appraisal by mail shortly.

-       2010 BURLCO Planning Retreat – This year’s retreat will take place on May 21, 2010 at the Bradford Estates in Hainesport. A formal invitation was mailed to all members.

-       Member Visitation Program – Ms. Jackie Parsons from AJG will be contacting renewing members to schedule an appointment with the Fund Commissioner.

-       Exposure Data Management System Training – The system is now complete and ready to be implemented for the 2011 Renewal. Training has been scheduled for May 25^th & May 27^th. This training is recommended for Funds Commissioners and RMCs. This system will allow members and their RMCs to review and manage their exposure information via the internet. A copy of the invitation and response form is made a part of the agenda packet. The Executive Director will look into locations in Burlington County. BURLCO members have already signed up for the scheduled sessions.

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

 

SOLICITOR'S REPORT

The Fund Solicitor presented the following resolutions for the memberships’ consideration.

Resolution Authorizing the Fund Chair and Fund Secretary of the Burlington County Municipal Joint Insurance Fund to Execute an Agreement to Participate in a Share Services Agreement for Managed Care Services

Chair Ryan entertained a motion to adopt Resolution #2010-17 - Authorizing the Fund Chair and Fund Secretary of the Burlington County Municipal Joint Insurance Fund to Execute an Agreement to Participate in a Share Services Agreement for Managed Care Services as previously discussed at the April 2010 Executive Committee Meeting.

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

Motion by Mr. Keller, seconded by Mr. Mansdoerfer to adopt Resolution #2010-17 - Authorizing the Fund Chair and Fund Secretary of the Burlington County Municipal Joint Insurance Fund to Execute an Agreement to Participate in a Share Services Agreement for Managed Care Services.

All in favor. Motion carried by unanimous vote.

Resolution Authorizing the Release of 2009 Executive Committee Closed Session Meeting Minutes

Chair Ryan entertained a motion to adopt Resolution #2010-18 - Authorizing the Release of 2009 Executive Committee Closed Session Meeting Minutes as recommended by the Fund Solicitor.

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

Motion by Mr. Mansdoerfer, seconded by Ms. Jack to adopt Resolution #2010-18 – Authorizing the Release of 2009 Executive Committee Closed Session Meeting Minutes.

 

All in favor. Motion carried by unanimous vote.

 

SAFETY DIRECTOR'S REPORT

The Safety Director’s Report is made part of the agenda packet and is self-explanatory. Ms. Hall highlighted the following items from the report.

-       Monthly Activity Report – April’s activities along with JIF Meeting participation is made a part of the report.

-       Regional Training Workshop (handout) – An invitation to the upcoming Traffic Safety Workshops is included in the report. This training will be in place of the DPW Roundtable that was scheduled in June.

Training will be conducted by the NJ Division of Highway Traffic Safety and is geared towards Traffic Safety Officers, Traffic Engineers, Administrators, Safety Coordinators, Fund Commissioners, and Public Works Supervisors.

-       Advanced Safety Leadership Class – Mt. Laurel will host this class on July 13^th and 20^th at the Mt. Laurel Senior Center. Registration information is included in the report. Pre-registration is required.

Persons with safety leadership responsibilities, including Managers, Supervisors, Safety Coordinators, Fund Commissioners, DPW or Utility Management Department Superintendents are invited.

-       Conner Strong Risk Control Name Change – A correspondence from David Grubb dated May 4^th is included in the report announcing that the Risk Control Unit will own a trade name to highlight the importance of risk control in the Conner Strong organization. The new name is J.A. Montgomery Risk Control.

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

 

CLAIMS ADMINISTRATOR'S REPORT

The Claims Administrator’s reported on the following item.

-        Lessons Learned from Losses – May 2010 (handout)

Can Your Reduce Workers’ Compensation Claims?

Every municipality can help reduce the cost of Workers’ Compensation claims. The first step is prevention. The best way to accomplish that is to establish a strong safety program, with employee participation. Employees should be encouraged to identify harmful situations, work practices, and hazardous conditions of areas and equipment. Once identified, the recommendations should be addressed and put into practice where appropriate.

Studies have demonstrated that the frequency and cost of Workers’ Compensation claims can be reduced by establishing and maintaining good communication with injured employees and providing prompt medical treatment by the right medical provider. The establishment of an effective Transitional Duty Program is also essential in reducing the cost of these claims.

Recreational Activities

In some Workers’ Compensation claims received, employees are injured while playing ball or other recreational pursuit during or after work hours. These claims are typically denied as the injuries do not occur while in the performance of the employee’s duties.

The test for compensability under the recreational activities defense is very high; most employees cannot meet their burden of proof. To be determined compensable under N.JH.S.A. 34:15-7, (1) an employee must prove that the recreational or social activity must be a regular incident of employment and (2) the recreational or social activity must produce a benefit to the employer beyond improvement in employee health and moral.

The Wage Replacement Aspect of Workers’ Compensation

Title 34 is the law that governs Workers’ Compensation in Jew Jersey. Under Title 34: 15-14, “no compensation other than medical aid shall accrue and be payable until the employee has been disabled seven (7) days, whether the days of disability immediately follow the accident, or whether they be consecutive or not”.

This means that most employees will not be compensated for their lost wages until they have satisfied the waiting period of seven (7) days lost from work. An exception to this waiting period is made for emergency volunteers, fire, EMS.

Fraud Investigation

Unfortunately, many municipalities and other public entities have had to implement reductions in force, lay-offs or furloughs. As a result, Scibal is seeing an increase in Workers’ Compensation claims related to these events. Some claimants are alleging “job loss tress” claims. While these are not compensable under the Workers’ Compensation law, there may be other questionable types of claims being filed.

If your municipality has camera surveillance in your buildings, parking lots, etc. and you are made aware of an incident that resulted in an injury (to an employee or other third party), do not erase the video. Place it is a protected area and advise Scibal that you have potential evidence. If you only keep camera surveillance for 10-15 days, you may want to increase that time in case a claim is filed. Likewise, if you are suspicious about any claim that is filed, let the claims adjuster know and a strategy to identify the fraud will be employed.

The remainder of the Claims Administrator’s report is for Closed Session.

Chair Ryan 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 April 2010 from CSG Solutions, which is contained in the agenda packet.

Lost Opportunity Days Summary Report – April 2010

The Lost Opportunity Days Summary Report of Open Cases as of April 25, 2010 reflected 80.60% 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 April 2010 thru April 2010 reflects the following averages.

 

 

Chair Ryan 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 April 2010, a copy of which was included in the agenda packet for members’ consideration.

 

Investment Interest

Interest received or accrued for the reporting period totaled $8,167.84. This generated an average annual yield of .97%. However, after including an unrealized gain of $2,520 in the asset portfolio, the yield is adjusted to 1.27% for this period. The total overview of the asset portfolio for the Fund shows an overall gain of $35,977.50 as it relates to market value vs. the amount invested.

 

Receipt Activity for the Month(s)

None.

 

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 $306,757.90. The claims detail is as follows:

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

Chair Ryan asked for approval for payment of the above-mentioned Claims Activity for the Month of April 2010 in the amount of $306,757.90.

Motion by Mr. Hatcher seconded by Mr. Mansdoerfer to approve the Claims Activity as submitted by Mr. Tontarski.

All in favor. Motion carried by unanimous vote.

 

Cash Activity for the Month(s)

During the reporting period the Fund’s “Cash Position” changed from an opening balance of $10,512,501.96 to a closing balance of $9,747,528.57 showing a decrease in the Fund of $764,973.39.

 

May 2010 Bill List - Approval

For the Executive Committee’s consideration, Mr. Tontarski presented the May 2010 Bill List in the amount of $69,481.50 as provided to the membership in the agenda packet. The May 2010 Bill List consists of professional fees and administrative costs for operating the Fund.

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

Chair Ryan entertained a motion to accept the April 2010 Treasurer’s Report, and approve the May 2010 Bill List in the amount of $69,481.50 as presented.

Motion by Mr. Hatcher, seconded by Mr. Mansdorfer to accept the April 2010 Treasurer’s Report, and approve the May 2010 Bill List in the amount of $69,481.50 as presented.

All in favor. Motion carried by unanimous vote.

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

 

COMMITTEE REPORTS

None.

 

MEL/RCF/ E-JIF REPORT

None.

 

MISCELLANEOUS BUSINESS

Health Insurance Fund Study

Mr. Miola reported that the Steering Committee, comprised of representatives appointed from the three Municipal Joint Insurance Funds and the three School District Joint Insurance Funds overseen by AJ Gallagher, met May 11^th to discuss the creation of a HIF.

A meeting will be set up with representatives from the South Jersey Health Insurance Fund to determine whether an off-shoot HIF can be created for the Municipal and School JIFs.

Mr. Miola will report further to the membership after the meeting has taken place.

Next Meeting

The Regular Meeting of the BURLCOJIF will be held on Tuesday, June 15, 2010 at 4:00 PM at the Hainesport Township Municipal Building, Hainesport, New Jersey.

 

PUBLIC COMMENT

Chair Ryan opened the meeting to the public for comment.

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

 

EXECUTIVE SESSION MEETING – Resolution 2010-19

Chair Ryan presented Resolution 2010-19 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. Mansdoerfer seconded by Ms. Jack, to approve Resolution 2010-19. 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

Chair Ryan 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

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

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

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

 

All in favor. Motion carried by unanimous vote.

 

AUTHORIZATION TO ABANDON SUBROGATION - APPROVAL

Chair Ryan asked for a motion to Approve Abandonment of Subrogation on the following claim(s) as presented in Closed Session.

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

Motion by Mr. Mansdoerfer, seconded by Ms. Jack, to approve the following claim(s) for Abandonment of Subrogation as discussed in Closed Session.

 

All in favor. Motion carried by unanimous vote.

 

MOTION TO ADJOURN

Chair Ryan entertained a motion to adjourn the May 18, 2010 Executive Committee Meeting of the BURLCOJIF.

Motion by Ms. Jack, seconded by Mr. Mansdoerfer to adjourn the May 18, 2010 Executive Committee Meeting of the BURLCOJIF. All in favor. Motion carried by unanimous vote.

The meeting was adjourned at 4:40 PM.

_______________________________ Colleen Ross, Recording Secretary for

_____________________________________________ JEFFREY HATCHER, ACTING FUND SECRETARY