Meeting was called to order by Chairman Friedman. Ms. Dodd read the Open Public Meetings notice into record. CraigAnninBaxter Law Robert Baxter, Esq.

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1 BURLINGTON COUNTY INSURANCE COMMISSION OPEN MINUTES MEETING County Administration Building 49 Rancocas Road Mt Holly, NJ :00 PM Meeting was called to order by. Ms. Dodd read the Open Public Meetings notice into record. ROLL CALL OF COMMISSIONERS: Sander Friedman Eve A. Cullinan Damon Burke Present Present Present FUND PROFESSIONALS PRESENT: Executive Director Claims Services PERMA Risk Management Services Joseph Hrubash PMA Management Corp. Christina Grabowski Conner Strong & Buckelew Michelle Leighton Attorney Treasurer Underwriting Manager CraigAnninBaxter Law Robert Baxter, Esq. Edward Troy Conner Strong & Buckelew Safety Director Employee Benefits J.A. Montgomery Risk Control Glenn Prince PERMA Risk Management Services Paul Laracy AJM Insurance Management Innovative Risk Solutions, Inc. Rob Henry Risk Manager EJA Capacity Insurance Agency Steve Walsh 1

2 ALSO PRESENT: Carolyn Havlick, Burlington County Joe DiBella, Conner Strong & Buckelew Emily Koval, PERMA Risk Management Services Cathy Dodd, PERMA Risk Management Services Ms. Cullinan advised she wanted to take this opportunity to introduce and welcome Sander Friedman who was the new solicitor for the County and also the Chairman of the Burlington County Insurance Commission. Mr. Friedman thanked everyone and stated he would be happy to meet with everyone after the meeting and was appreciative of everyone s welcoming. Mr. Friedman reported he would also like to introduce Carolyn Havlick, the new CFO of the County. Ms. Cullinan asked everyone to introduce themselves to Mr. Friedman and Ms. Havlick. APPROVAL OF MINUTES: OPEN & CLOSED MINUTES OF DECEMBER 6, 2018 In response to Ms. Dodd s inquiry about approving the minutes, Commission Attorney advised the Board only consisted of 3 members. Commission Attorney explained Mr. Collins was no longer a member, Ms. Cullinan was not in attendance for the December meeting and Mr. Friedman just started his new role. Therefore, Commission Attorney reported after Mr. Burke reviewed and verified the minutes, Ms. Cullinan and Mr. Friedman could move and accept the minutes. MOTION TO APPROVE THE OPEN & CLOSED MINUTES OF DECEMBER 6, 2018 CORRESPONDENCE: NONE COMMITTEE REPORTS: SAFETY COMMITTEE: Mr. Prince reported the Safety Committee last met on December 13, 2018 and was scheduled to meet again on March 21, Mr. Prince advised the committee would meet on a quarterly basis as in the past. CLAIMS COMMITTEE: Ms. Leighton reported the Claims Committee did not meet in December, however there was one PAR to discuss during closed session. EXECUTIVE DIRECTOR REPORT: Executive Director advised today was the Reorganization Meeting of the Commission and a copy of his report was included in the agenda. REORGANIZATION RESOLUTIONS: Executive Director referred to the Reorganization Resolutions which were included in the agenda and reviewed the following resolutions: Resolution 1-19 Certifying the Appointment of Chairperson and Vice Chair Resolution 2-19 Appointing A Commissioner to the New Jersey Counties 2

3 Excess Joint Insurance Fund for Fund Year 2019 Resolution 3-19 Appointing Agent for Service of Process and Custodian of Records For the Commission For the Year 2019 Resolution 4-19 Designating Official Newspapers for the Commission Resolution 5-19 Designating Authorized Depositories for Fund Assets and Establishing Cash Management Plan Resolution 6-19 Designating Commission Treasurer Resolution 7-19 Designating Authorized Signatures for Commission Bank Accounts Resolution 8-19 Indemnifying Burlington County Insurance Fund Commission Officials/Employees Resolution 9-19 Authorizing Commission Treasurer to Process Contracted Payments and Expenses Resolution Plan of Risk Management for 2019 Executive Director advised the 2019 Plan of Risk Management was included in the appendix section of the agenda. Executive Director reported the plan was an overview of the Commission s coverage, risks retained by the Commission, reserving philosophy, method of assessing member contributions and claim payment authority. Executive Director advised the changes were highlighted in yellow. Executive Director asked if anyone had any questions regarding the resolutions and with the Commissioners approval asked that the resolutions be approved through a consent motion. MOTION TO APPROVE REORGANIZATION RESOLUTIONS NUMBER 1-19 THROUGH PROPERTY AND CASUALTY BUDGET: Executive Director reported at the December meeting the 2019 Property and Casualty Budget was introduced. Executive Director advised in accordance with regulations the budget was advertised in the Commission s official newspaper. Executive Director referred to a copy of the budget in the amount of $5,708,869 which was included in the agenda. Executive Director advised there were no changes to the budget since the introduction. Executive Director stated this was the Public Hearing for the budget and then asked for a motion to open the Public Hearing. MOTION TO OPEN THE PUBLIC HEARING ON THE 2019 PROPERTY & CASUALTY BUDGET In response to Ms. Cullinan s question, Commission Treasurer advised he did not have any questions regarding the budget. 3

4 MOTION TO CLOSE THE PUBLIC HEARING MOTION TO ADOPT THE PROPERTY & CASUALTY BUDGET FOR THE BURLINGTON COUNTY INSURANCE COMMISSION FOR THE YEAR 2019AND CERTIFY THE 2019 ASSESSMENTS 2019 MEETING SCHEDULE: Executive Director referred to a copy of the 2019 Meeting Schedule which was included in the agenda. Executive Director noted the meetings were on the first Thursday of the month. Executive Director advised the meeting dates were presented at the last meeting. Executive Director noted there were no meetings scheduled for April, July and September, however additional meetings could be scheduled with the proper notice. MOTION TO APPROVE RESOLUTION 11-19, 2019 MEETING SCHEDULE CERTIFICATE OF INSURANCE ISSUANCE REPORT: Executive Director reported the certificate of issuance report from the NJCE listing the certificates issued for the month of November was included in the agenda. Executive Director advised there were three certificate of insurances issued during the month of November. MOTION TO APPROVE THE CERTIFICATE OF INSURANCE REPORT NJ COUNTIES EXCESS INSURANCE FUND (NJCE): Executive Director advised the NJCE would hold its Re-Organization Meeting on February 28, 2019 at 1:00 at the Camden County College Regional Emergency Training Center. noted he was hoping to attend the meeting in person. BCIC PROPERTY & CASUALTY FINANCIAL FAST TRACK: Executive Director reported the October Financial Fast Track was included in the agenda. Executive Director advised as of October 31 st, there was a slight deficit in the amount of $191,368, however the figure had improved tremendously over the past few years and was hopeful that the trend would continue. Executive Director referred to line 10 of the report, Investment in Joint Venture and indicated $1,291,846 of the surplus was the BCIC s share of the NJCE equity. 4

5 NJCE PROPERTY & CASUALTY FINANCIAL FAST TRACK: Executive Director reported the October Financial Fast Track for the NJCE was included in the agenda. As of October 31, 2018 the NJCE had a surplus of $14,039,701. Executive Director noted the total cash amount was $23,306,728. Executive Director noted the NJCE did issue a dividend for 2018 in the amount of $500,000 and the Burlington Commission s share of the dividend was $50,343. CLAIMS TRACKING REPORTS: Executive Director reported the agenda included two claim monitoring reports as of October 31, Executive Director advised he reviewed the Claims Activity Report and did not see any anomalies. Executive Director referred to a copy of the Claims Management Report Expected Loss Ratio Analysis Report and explained this report measure how the losses are running compared to the actuary s projections. Executive Director noted Fund Year 2017 was running well. Executive Director advised 2018 was off to a slow start but Executive Director indicated that was the same way 2017 started. Executive Director advised that concluded his report unless there were any questions. Executive Director asked Mr. Laracy to present the Health Benefits Report. FINANCIAL PROCEDURES Mr. Laracy reviewed the Financial Fast Track through November He said the Commission is running well, despite a high claims month for November. He said he believes there may have been some claim catch up because October was very low RISK MANAGEMENT PLAN Mr. Laracy said the 2019 Risk Management Plan for the Health program has been updated with the new stop loss arrangement which was bound at the last meeting. Otherwise, there were no new changes. MOTION TO APPROVE RESOLUTION #14-19 APPROVING THE RISK MANAGEMENT PLAN FOR THE HEALTH PROGRAM FOR 2019, AS SUBMITTED. Executive Director's Report Made Part of Minutes TREASURER REPORT: Mr. Troy advised he reviewed the Bill Lists and recommended their payment. MOTION TO APPROVE RESOLUTION 15-19, DECEMBER HEALTH BILL LIST, RESOLUTION 16-19, JANUARY BILL LIST, AND RESOLUTION JANUARY HEALTH BILL LIST Executive Director advised the Treasurer s monthly reports were included in the agenda. 5

6 ATTORNEY: Mr. Baxter advised the discussions on the legal counsel should take place during closed session. CLAIMS SERVICE. Ms. Grabowski advised PMA s monthly reports were included in the appendix section of the agenda. Ms. Grabowski referred to the WC Claims by Quarter Report valued as of 1/1/19. Ms. Grabowski advised the claim counts for 2018 were slightly lower than Ms. Grabowski referred to the Year to Date Containment Savings Report which was included in the agenda for the period of 1/1/18 to 1/1/19 and advised PMA billed charges were in the amount of $971,116. Ms. Grabowski indicated the total net savings was $413,805. Ms. Grabowski noted the network penetration was 97% which was absolutely outstanding. Ms. Grabowski complimented the County for the phenomenal job they do keeping everyone in the network. Ms. Grabowski also reviewed the WC Claims Frequency and Severity by Location and Top 5 Locations by Claim Frequency reports which were included in the agenda. Ms. Grabowski advised that concluded her report unless anyone had any questions. NJCE SAFETY DIRECTOR: Mr. Prince reviewed the November to January Risk Control Activity Report which was included in the agenda. Mr. Prince noted there were three Safety Director Bulletins which were included in the agenda and discussed recently at the Safety Committee Meeting. Mr. Prince advised the information received from the PMA reports were also discussed at the Safety Committee Meetings. Mr. Prince advised that concluded his report unless anyone had any questions. OLD BUSINESS: None NEW BUSINESS: Commission Treasurer stated he received some good news and advised the interest rate for the Commission Bank Accounts would increase this year. Commissioner Treasurer advised they were able to negotiate a rate of 1.85 to PUBLIC COMMENT: MOTION TO OPEN MEETING TO THE PUBLIC Seeing no members of the public wishing to speak, asked for a motion to close the public comment portion of the meeting. MOTION TO CLOSE MEETING TO THE PUBLIC CLOSED SESSION: read Resolution 18-19, Resolution for Closed Session, and requested a Motion for Executive Session (in accordance with the Open Public Meetings Act, N.J.S.A. 10:4012) to discuss payment authority requests. 6

7 MOTION TO APPROVE RESOLUTION FOR CLOSED SESSION MOTION TO TABLE THE PAR PRESENTED DURING CLOSED SESSION MOTION TO APPROVE RESOLUTON TO TERMINATE ASSURED PARTNERS CONTRACT EFFECTIVE APRIL 9, 2019: MOTION TO APPROVE RESOLUTION AWARDING BENEFITS PROGRAM MANAGER CONTRACT TO CONNER STRONG & BUCKELEW EFFECTIVE APRIL 10, 2019 MOTION TO AUTHORIZE THE FUND OFFICE TO ISSUE AN RFQ TO EXPAND THE DEFENSE PANEL MOTION TO ADJOURN: advised the next Commission meeting was scheduled for February 7, 2019 at 2:00 PM. MEETING ADJOURNED: 3:15 PM Minutes prepared by: Cathy Dodd, Assisting Secretary Emily Koval, Health Benefit Report 7