Microsoft Word - Central June AgendaCENTRAL JERSEY JOINT INSURANCE FUND AGENDA
MEETING OF FUND COMMISSIONERS CALLED TO ORDER OPEN PUBLIC MEETING ACT STATEMENT
In accordance with the Open Public Meetings Act, notice of the meeting was provided by: 1. Sending sufficient notice to the Fund’s designated newspaper, the Home News Tribune; 2. Filing Advanced written notice of this meeting with each member municipality; and 3. Posting notice of this meeting on the Public Bulletin Board of all member municipalities.
PLEDGE OF ALLEGIANCE ROLL CALL OF FUND COMMISSIONERS APPROVAL OF MINUTES
May 16, 2018 Open …. ................................................................................ …….Appendix I
CORRESPONDENCE – None REPORTS:
.Monthly Voucher List - Resolution No. 22-18 ................................................ ……… Page 19
.Treasurers Report……………………………………………………………...…….Page 21
UNDERWRITING MANAGER – Conner Strong & Buckelew .Monthly Report ............................................................................................................. . Page 36
MARKETING MANAGER – Reliance Insurance Group
SAFETY DIRECTOR – J.A. Montgomery Risk Control .Monthly Report ............................................................................................................... Page 39
RISK MANAGERS
EXECUTIVE SESSION - FOR CERTAIN SPECIFIED PURPOSES FOR PERSONNEL, SAFETY, PUBLIC PROPERTY OR LITIGATION
Motion to go into closed session (if necessary) OLD BUSINESS NEW BUSINESS PUBLIC COMMENT MEETING ADJOURNMENT
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Central Jersey Joint Insurance Fund 9 Campus Drive – Suite 216
Parsippany, NJ 07054
Date: June 20, 2018 Memo to: Fund Commissioners Central Jersey Joint Insurance Fund From: PERMA Risk Management Services Subject: Executive Director's Report
Audit Report as of December 31, 2017 – The Auditor’s Report as of December 31, 2017 has been sent to the Executive Committee under separate cover. A representative from Hodulik & Morrison will be at the JIF meeting to review the Audit Report. Following the presentation and approval of the report, both Resolution 18-17 and Group Affidavit must be executed. (Pages 3-5)
Motion to Approve Year-End Financials as of December 31, 2017 as Presented, Adopt Resolution 18-17 and execute the Group Affidavit indicating that members of the Executive Committee have read the General Comments Section of the Audit Report.
2018/2019 Employment Practices Program: Correspondence was mailed to Fund
Commissioners and Risk Management Consultants concerning updates to member Employment Practices Programs. Updated Model Personnel Manuals have been posted to the MEL’s webpage www.njmel.org. Deadline to complete program compliance is October 1, 2018. We are working with Lori Dvorak’s office to schedule Managers & Supervisory Training Seminars. Two sessions of Police Command Staff Training were conducted. The “We must respect each other in local government” video has been added to the MEL Safety Institute to meet training for “non-supervisory” employees.
Residual Claims Fund – The RCF met on June 7, 2018 at the Forsgate Country Club in Jamesburg, NJ. Commissioner Northgrave’s report on the meeting is enclosed. (Appendix II)
The Actuary was asked to review the impact of changing the current transfer of open liabilities to the RCF from 54 months to 60 months. The RCF Executive Committee approved changing the transfer period to 60 months starting with Fund Year 2014. The RCF will take formal action at their September meeting and provide local JIFs with the resolution initiating the transfer at that time. Unlike in the past, no action is required at this time.
EJIF- The EJIF met on June 7, 2018 at Forsgate in Jamesburg, NJ. Commissioner Northgrave’s report on the meeting is enclosed. (Appendix II)
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MEL JIF – The MEL met on June 7, 2018 at the Forsgate County Club in Jamesburg, NJ. Commissioner Northgrave’s report on the meeting is enclosed. (Appendix II)
Risk Management Information/Operating System (RMIS): The online underwriting database through Origami was launched mid-March; Fund Commissioners and Risk Management Consultants were provided login information, as well as, links to short training videos.
Origami is hosting training webinars on how to utilize the online platform. Origami conducted 2 training webinars in May and 1 webinar on June 6th. Over 150 people attended and the response was positive. Full recordings of the webinars are available online.
Members and Risk Managers will receive an email with a link to renewal worksheets - to begin the 2019 underwriting renewal during the month of June.
Safety Expo – The MEL continues to work with the New Jersey Utility Authorities Joint Insurance Fund (NJUA) to conduct its Annual Safety Expo which includes MEL member town’s water & sewer employees. The Safety Expos will be held on June 29th at the Middlesex County Fire Academy and September 28th at the Camden County Emergency Services Training Center. Registration is through the MEL Safety Institute. Registration information is on Pages 6-10.
League Magazine – Enclosed on Page 11 is the latest in the series of “Power of Collaboration” ads to appear in the League of Municipalities magazine.
Pro Forma Monitoring Reports:
Financial Fast Track Page 12 Fixed Income Summary & Rate Comparison Page 13 Pure Loss Ratio Report Page 14 Claims Activity Report Page 15 Lost Time Accident Frequency Reports Page 16 EPL/POL Status Page 17 Regulatory Checklist Page 18
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RESOLUTION NO. 21-18
CENTRAL JERSEY JOINT INSURANCE FUND
Resolution of Certification Annual Audit Report for Period Ending December 31, 2017
WHEREAS, N.J.S.A. 40A:5-4 requires the governing body of every local unit to have made an annual audit of its books, accounts and financial transactions, and WHEREAS, the Annual Report of Audit for the year 2017 has been filed by the appointed Fund Auditor with the Secretary of the Fund as per the requirements of N.J.S.A. 40A:5-6 and N.J.S.A. 40A:10-36, and a copy has been received by each member of the EXECUTIVE COMMITTEE, and WHEREAS, the Local Finance Board of the State of New Jersey is authorized to prescribe reports pertaining to the local fiscal affairs, as per R.S. 52:27BB-34, and WHEREAS, the Local Finance Board has promulgated a regulation requiring that the EXECUTIVE COMMITTEE of the Fund shall, by resolution, certify to the Local Finance Board of the State of New Jersey that all members of the EXECUTIVE COMMITTEE have reviewed, as a minimum, the sections of the annual audit entitled: General Comments and Recommendations and WHEREAS, the members of the EXECUTIVE COMMITTEE have personally reviewed, as a minimum, the Annual Report of Audit, and specifically the sections of the Annual Audit entitled: General Comments and Recommendations as evidenced by the group affidavit form of the EXECUTIVE COMMITTEE. WHEREAS, such resolution of certification shall be adopted by the EXECUTIVE COMMITTEE no later than forty-five days after the receipt of the annual audit, as per the regulations of the Local Finance Board, and
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WHEREAS, all members of the EXECUTIVE COMMITTEE have received and have familiarized themselves with, at least, the minimum requirements of the Local Finance Board of the State of New Jersey, as stated aforesaid and have subscribed to the affidavit, as provided by the Local Finance Board, and WHEREAS, failure to comply with the promulgations of the Local Finance Board of the State of New Jersey may subject the members of the EXECUTIVE COMMITTEE to the penalty provisions of R.S. 52:27BB-52 - to wit: R.S. 52:27BB-52 - "A local officer or member of a local governing body
who, after a date fixed for compliance, fails or refuses to obey an order of the director (Director of Local Government Services), under the provisions of this Article, shall be guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one year, or both, in addition shall forfeit his office."
NOW, THEREFORE, BE IT RESOLVED, that the EXECUTIVE COMMITTEE of the Central Jersey Joint Insurance Fund, hereby states that it has complied with the promulgation of the Local Finance Board of the State of New Jersey, dated July 30, 1968, and does hereby submit a certified copy of this resolution and the required affidavit to said Board to show evidence of said compliance.
WE HEREBY CERTIFY THAT THIS IS A TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING HELD ON JUNE 20, 2018.
WILLIAM NORTHGRAVE, Chairman NANCY COSTA, Secretary
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GROUP AFFIDAVIT FORM
CERTIFICATION OF EXECUTIVE COMMITTEE of the CENTRAL JERSEY JOINT INSURANCE FUND We members of the Executive Committee of the Central Jersey Joint Insurance Fund, of full age, being duly sworn according to law, upon our oath depose and say: 1.) We are duly elected members of the Executive Committee of the Central Jersey Joint Insurance Fund. 2.) In the performance of our duties, and pursuant to the Local Finance Board Regulation, we have familiarized ourselves with the contents of the Annual Fund Audit filed with the Secretary of the Fund pursuant to N.J.S.A. 40A:5-6 and N.J.S.A. 40A:10-36 for the year 2017. 3.) We certify that we have personally reviewed and are familiar with, as a minimum, the sections of the Annual Report of Audit entitled: GENERAL COMMENTS - RECOMMENDATIONS
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Attest:
____ Nancy Costa, Secretary to the Fund The Secretary of the Fund shall set forth the reason for the absence of signature of any members of the Executive Committee.
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Central Joint Insurance Fund Annual Regulatory Filing Check List
Year 2018 as of June 1, 2018
Item Filing Status
Budget Filed 2/15/18
Reinsurance Policies To be Filed Fund Commissioners Filed 2/15/18
Fund Officers Filed 2/15/18
Withdrawals None
2018 Risk Management Plan Filed 2/15/18
2018 Cash Management Plan Filed 2/15/18 2018 Risk Manager Contracts In process of
Collecting
Unaudited Financials To be Filed
State Comptroller Audit Filing To be Filed
Annual Audit To be Filed
Ethics Filing On Line Filing
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RESOLUTION NO. 22-18
BILLS LIST – JUNE 2018
WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Central Jersey Joint Insurance Fund’s Executive Board, hereby authorizes the Fund treasurer to issue warrants in payment of the following claims; and FURTHER, that this authorization shall be made a permanent part of the records of the Fund.
FUND YEAR 2018 Check Number Vendor Name Comment Invoice Amount
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__________________________________ Chairperson Attest: ____________________________________ Dated:______________________________ Secretary I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. ____________________________________ Treasurer
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APPENDIX I - MINUTES
May 16, 2018 PISCATAWAY MUNICIPAL BUILDING
PISCATAWAY, NJ MEETING OF THE EXECUTIVE COMMITTEE CALLED TO ORDER AT 2:00 P.M. OPEN PUBLIC MEETING STATEMENT READ INTO RECORD ROLL CALL OF THE 2018 EXECUTIVE COMMITTEE
William Northgrave, Chairman, Township of Edison Present Daniel Frankel, Vice Chairman, Borough of Sayreville Absent Nancy Costa, Secretary, Township of Hillsborough Absent Robert Vornlocker, Township of Franklin Present Michael Gross, City of South Amboy Present Timothy Dacey, Piscataway Absent John Bennett, Township of Woodbridge Present Colleen Connolly, Borough of Belmar Absent
ALSO PRESENT:
Jeremy Solomon, Bob Smith & Associates Richard Lorentzen, Treasurer Donna Setzer, Qual Lynx Kathy Kissane, Qual Lynx Tony Jones, Qual Lynx Jay McManus, North American Insurance Management Amy Pieroni, North American Insurance Management Paul Shives, JA Montgomery Risk Control Vincent Quatrone, JA Montgomery Risk Control Edward Cooney, CS&B Joseph Hrubash, Perma Brad Stokes, Perma Rachel Chwastek, Perma
MINUTES: April 18, 2018 Open Minutes
MOTION TO APPROVE MINUTES FOR APRIL 18, 2018
Moved: Commissioner Bennett Second: Commissioner Vornlocker Vote: Unanimous
CORRESPONDENCE: None. EXECUTIVE DIRECTOR: Elected Officials Training Course: Every year, the MEL holds training seminars for elected officials and reduces a member’s assessment by $250 for each municipal elected official and Administrator completing the course by May 31st. The fund office is in the process of scheduling sessions for each member; additional courses are expected to be offered throughout the state. This course is also available on-line; enclosed in the agenda were directions to take the class. 2018/2019 Employment Practices Program: Included in the agenda was a copy of the correspondence mailed to Fund Commissioners and Risk Management Consultants concerning updates to member Employment Practices Programs. Updated Model Personnel Manuals have been posted to the MEL’s webpage www.njmel.org. Members have until October 1st to submit their checklist to qualify and/or maintain deductible and co-pay incentives. Compliance includes updating Personnel Manuals, Training Managers & Supervisors, Police Command Staff and offering training to non-supervisory personnel. Police Command Staff Training – Risk Management Training for Police Command Staff has been scheduled for May 22nd & June 5th. Chief Vincent Quatrone (Ret.) and Chief Keith Hummel (Ret.) will present this revised training for all member Police Chiefs, Captains and Lieutenants. Managers & Supervisors Training – The Program also includes mandatory training of management. We are working with the offices of Lori Dvorak to develop a schedule for these classes and will coordinates with member towns for available dates. Non-Supervisory Training - “We must respect each other in local government” video has been added to the MEL Safety Institute to meet the training requirement for “non-supervisory” employees. Law Enforcement Services – The Fund office issued a memorandum highlighting new Law Enforcement services being offered to member entities. Retired Chief’s Vincent Quatrone and Keith Hummel will be meeting with member’s Police command staff to help coordinate these service enhancements. MEL Cyber Risk Management Program – The MEL adopted a Cyber Risk Management Program that developed minimum risk control standards for member entities. The JIFs’ policies with XL Caitlin carries a $10,000 deductible. To encourage members to implement risk control, the MEL Board of Fund Commissioners voted to participate in a deductible based reimbursement plan based on the member’s level of compliance with minimum standards.
Members who meet certain Technical Competencies (Tier 1 or Tier 2), will be eligible for lower deductibles in the event of a covered claim. Included in the agenda was the program information and certifications that need to be completed and returned to the Underwriting office. 2018 Coverage Documents – The fund office will begin distributing the 2018 coverage documents to all Fund Commissioners and Risk Managers via email by the end of the month. Risk Management Information/Operating System (RMIS): The online underwriting database through Origami was launched mid-March; Fund Commissioners and Risk Management Consultants were provided login information, as well as, links to short training videos. Members and Risk Managers will receive an email with a link to renewal worksheets - to begin the 2019 underwriting renewal – which is expected to begin in early June. Investment Legislation: The bill that would expand the JIF and MEL’s investment opportunities is now on the Governor’s desk. The law would authorize certain joint insurance funds to invest in certain bonds, notes, and other obligations of State and Federal agencies and to form joint cash management and investment programs as a means to broaden the types of securities joint insurance funds may invest in and to reduce the amount of assets that must be held in short-term investments to cover the cash flow needs of the funds. Auditor & Actuary Year-End Reports: The financial audit for the period ending December 31, 2017 will be ready for review and approval at the June meeting and will be filed with the Departments of Insurance and Community Affairs by the June 30th deadline. EJIF Stormwater Bulletin – Attached are copies of two Environmental Alerts from the EJIF— one concerning NJDEP revisions to Tier A and B Stormwater Permits; and one concerning changes to New Jersey Underground Storage Tank Regulations. Central JIF Monitoring Reports – The Executive Director reviewed the Fund’s Pro Forma Monitoring Reports, and advised the fund is doing well. As of 3/31/2018, the Central’s surplus is $8,040,285 and the expected loss ratio is running ahead of actuary’s targets, which correlates with the financial fast track. The Fund’s LTAF is 1.67 over three years, which is very good. The Executive Director then asked if there were any questions and concluded his report.
Reports Made Part of Minutes. TREASURER: The Treasurer, Mr. Richard Lorentzen, presented the Bill’s List.
RESOLUTION 20-18 MAY 2018 VOUCHER PAYMENTS
2018 $ 293,068.75
MOTION TO ADOPT RESOLUTIONS 20-18 APPROVING THE VOUCHER PAYMENT LISTS, AS SUBMITTED:
Moved: Commissioner Gross Second: Commissioner Vornlocker Vote: 4 Ayes, 0 Nays
Voucher Lists, Treasurer Report & Investment Portfolio Reports Made Part of Minutes.
CLAIMS/ MANAGED CARE:
CLAIMS – Kathy Kissane reported the Claims Committee reviewed the PAR’s for May today. She respectfully requested a motion to ratify the PAR’s that were approved by the Claim Committee today for May.
PAYMENT AUTHORIZATION REQUESTS: Executive Committee reviewed payment authorization requests presented by Claims Service in May. Claims Review Committee reviewed and recommended as submitted.
MOTION TO APPROVE PAYMENT AUTHORIZATION REQUESTS FOR MAY CLAIMS PRESENTED IN EXECUTIVE SESSION BY QUAL-LYNX:
Moved: Commissioner Vornlocker Second: Commissioner Gross
Vote: 4 Ayes, 0 Nays MANAGED CARE:
CLAIMS – Donna Setzer reported a total number 373 bills totaling $384,105.71 came in, $115,994.42 was paid yielding a savings of $268,111.29 or 70% with a network penetration of 99%.
UNDERWRITING MANAGER
LIST OF CERTIFICATES ISSUED – Mr. Cooney advised 63 certificates were issued 2/22/2018 to 3/22/2018 and 18 certificates issued 3/22/2018 to 4/22/2018. Mr. Cooney also advised they are working on the cyber program and reminded everyone about the fireworks and amusements checklist for summer events.
MARKETING MANAGER: – Ms. Amy Pieroni advised she had met with Princeton Marketing prior to the JIF Meeting and they are going to develop marketing materials for the JIF. She advised that commissioners will be contacted regarding their personal testimony for the JIF.
SAFETY DIRECTOR: - Paul Shives advised the Safety Director’s report was included in the agenda. The report included a list of loss control activities for the month of April and a list of MSI training through July. He advised the Fund on upcoming training, the law enforcement initiative, asked if there were any questions and then concluded his report. Mr. Cooney advised in his review of the scope of services on law enforcement contracts with schools need to be monitored very closely and they range widely. Vincent Quatrone advised the board of educations are interested in class three officers and are having similar contractual issues. He advised the policy needs to be strong and clear as to where the police starts and ends and where the school administration starts and ends. There are plans to discuss this at the MEL level and the information will be brought back to the JIF. RISK MANAGERS: NONE OLD BUSINESS: NONE NEW BUSINESS: NONE PUBLIC COMMENT: NONE
MOTION TO ADJOURN
APPENIX II