MONMOUTH MUNICIPAL JOINT INSURANCE FUND MINUTES MARCH 12, 2015 WALL TOWNSHIP MUNICIPAL BUILDING 1:30 P.M.

MONMOUTH MUNICIPAL JOINT INSURANCE FUND MINUTES MARCH 12, 2015 WALL TOWNSHIP MUNICIPAL BUILDING 1:30 P.M. Meeting Called to Order by Acting Chairman Dempsey. Open Public Meeting Statement read into the record. Pledge of Allegiance ROLL CALL OF EXECUTIVE COMMITTEE: James Rogers Chairman Deal Absent Bryan Dempsey Secretary Spring Lake Present EXECUTIVE COMMITTEE MEMBERS Thomas Nolan Boro of Brielle Present Gerald Turning Tinton Falls Absent Anthony Middletown Present Mercantante Laurie Gavin Eatontown Absent Tom Rogers Boro of Rumson Present ALTERNATE EXECUTIVE COMMITTEE MEMBERS: Lori Cole West Long Branch Present Jonathan Capp Marlboro Absent APPOINTED OFFICIALS PRESENT: Executive Director Perma Risk Management Stephen A. Sacco Present /Administrator Services Attorney Cleary, Alfieri, & Grasso James Cleary, Esq. Present Treasurer Steven Mayer Present Claims Service Qual-Lynx Gemma Armenia Present Safety Director JA Montgomery Joanne Hall Present Risk Management Consultants The Danskin Agency Conner Strong & Buckelew Charles Casagrande Mike Avalone Present Present Auditor Hulsart & Company Robert Hulsart Absent Actuary Actuarial Advantage Dennis Henry Absent Underwriting Manager Conner Strong & Buckelew Ed Scioli Absent 1

ALSO PRESENT Jason Thorpe, PERMA John Keynton, Manasquan Laura Engler, Manasquan Jack Keeler, Sea Bright Victor Tuberion, Union Beach Jim Van Nest, Middletown Suzanne Veitengruber, Shrewsbury Twp. Bill Coy, Interlaken Lisa Gallo, Qualcare Amy Pieroni, RMC Dominick Cinelli, RMC Joseph Mirarchi, JA Montgomery APPROVAL OF MINUTES: January 7, 2015 Open MOTION TO APPROVE OPEN MINUTES FOR ABOVE REFERENCED MEETING VOTE: Commissioner Nolan CORRESPONDENCE Mr. Sacco referred to the letter from Qual-Lynx enclosed within the agenda booklet. He indicated that the letter states that Qual-Lynx was acquired by Cigna. Mr. Sacco added that he has been assured that there will be no significant changes and the transition would be seamless. TREASURER Mr. Mayer reviewed the Bills List for the month contained within the Agenda Packet and indicated that there was one change to the list. FUND YEAR AMOUNT February Bills List 2014 $ 5,683.31 2015 $ 650,121.66 TOTAL $ 655,804.97 2

MOTION TO APPROVE THE RESOLUTION # 9-15 APPROVAL FOR PAYMENT OF FEBRUARY 2015 BILLS LIST ROLL CALLVOTE: Commissioner Nolan FUND YEAR AMOUNT March Bills List 2013 $ 9,242.50 2014 $ 1,500.00 2015 $ 150,884.90 TOTAL $ 161,627.40 MOTION TO APPROVE THE RESOLUTION # 10-15 APPROVAL FOR PAYMENT OF MARCH 2015 BILLS LIST ROLL CALLVOTE: Commissioner Nolan EXECUTIVE DIRECTOR: Claims Review Committee - The Claims Review Committee met on Thursday March 12, 2015 at 12:15pm. Report given during closed session. MEL/Residual Claims Fund/E-JIF Meetings Mr. Sacco informed the Committee that the MEL, RCF, and EJIF all met on March 4, 2015 at the Forsgate. He then referred to Commissioner Nolan s reports on the meetings enclosed within the agenda booklet. Commissioner Nolan highlighted the fact that all 3 funds received reports from Wells Fargo regarding the investment policy. He added that all 3 funds also made amendments to the Standard Provision section of the Professional Service Contracts. 2015 MEL & MR HIF Educational Seminar: Mr. Sacco referred to the agenda and registration form for the annual MEL & MRHIF Educational Seminar at to the National Conference Center at the East Windsor Holiday Inn. He indicated that the seminar is scheduled for Friday April 17, 2015. Mr. Sacco added that the Banking and Insurance Commissioner Kenneth Kobylowski will keynote the annual seminar. He further added that continuing education credits are available, or are pending approval, for CFO/CMFO, Clerks, Public Works, Insurance Producers, Purchasing Agents, Accountants, Lawyers, TCH Water Supply, Wastewater, RPPO and QPA. 2015 PRIMA Conference Mr. Sacco informed the Committee that the 2015 PRIMA Annual Conference will take place June 7-10, 2015, at the George R. Brown Convention Center in Houston, Texas. He noted that the Executive Board approved the attendance of two of its members for the 2014 conference. Mr. Sacco added that Chairman Rogers attended. 3

MOTION TO ADOPT RESOLUTION #11-15 AUTHORIZING TRAVEL AND RELATED EXPENSES FOR ATTENDANCE OF TWO MEMBERS AT THE ANNUAL RISK MANAGEMENT CONFERENCE. ROLL CALLVOTE: Commissioner Cole Professional Service Agreements - Mr. Sacco indicated that in 2006, the Monmouth JIF adopted standard contract language for professional service agreements. He advised that the MEL Fund Attorney has recommended all standard contracts be updated to track to language in the law on Political Contributions, Affirmative Action and Records. Mr. Sacco noted that the MEL, EJIF, RCF, and several local JIF have adopted this change. He then referred to Resolution 12-15 which included the recommended form with tracked changes. MOTION TO ADOPT RESOLUTION #12-15 AMENDED THE FUND S STANDARD CONTRACT PROVISIONS. ROLL CALLVOTE: Commissioner Nolan 2015 Financial Disclosure Forms - Mr. Sacco advised that the Division of Local Government Services has indicated that online filing will be implemented again for 2015. He noted that the deadline to file is April 30 th. Mr. Sacco further noted that Mr. Thorpe will distribute instructions to commissioners on how to file once a roster is finalized. Due Diligence Reports - Mr. Sacco referred the Committee to the Financial Fast Track chart contained within the agenda booklet. He advised the Committee on the Fund s statutory surplus position. He added that since inception, the Fund has returned $22,814,235 to its members in way of dividends. With nothing further, Mr. Sacco concluded his report. ATTORNEY Mr. Cleary informed the Board that the fund office has received notification from Fairview Insurance Agency indicating that they were appointed as Risk Management Consultants for the Borough of Keyport. He noted that he has reviewed the contract that Fairview Insurance Agency provided and determined that the contract did not comply with the by-laws as it was not received within the required 30 day notice of change. Mr. Cleary informed the Board that he wrote a letter to Fairview Insurance Agency informing them that they had not complied with the by-laws and that the fund would not honor their agreement. He indicated that Fairview Insurance Agency then contacted him via a phone call and a follow-up letter attempting to argue that the by-laws meant 30 business days and not 30 calendar days. Mr. Cleary stated that he believes that they are incorrect in their 30 day notice argument and indicated that he is seeking the Board s approval to issue a follow-up letter to Fairview 4

Insurance Agency stating that they are incorrect. Commissioner Mercantante asked if a situation like this has ever happened before where the Fund took the 30 day position. Mr. Cleary informed the Board that there was a similar situation involving Hazlet Township. He indicated that Hazlet Township attempted to change Risk Management Consultants for the 2014 Fund Year but did not comply with the 30 day notice of change within the by-laws. Mr. Cleary added that the township subsequently provided notice of change within the 30 day window and the Fund honored the change for the 2015 fund year. He then asked for a motion to approve his request. MOTION TO AUTHORIZE THE FUND ATTORNEY TO ISSUE A FOLLOW-UP LETTER TO FAIRVIEW INSURANCE AGENCY INFORMING THEM THAT THE REQUIRED 30 DAY NOTICE FOR CHANGE OF RISK MANAGEMENT CONSULTANT IS INDEED 30 CALENDAR DAYS ROLL CALLVOTE: Commissioner Mercantante SAFETY DIRECTOR Mr. Mirarchi reviewed the January and February activities and the March agenda. He referred to the Safety Director Bulletins and announcements that have been sent to the membership. Lastly, Mr. Mirarchi referred to the list of upcoming MSI training seminars and advised of the CEUs available. UNDERWRITING MANAGER Mr. Sacco indicated that Mr. Scioli was unable to attend the meeting and referred to the list of certificates enclosed within the agenda booklet. CLAIMS SERVICE List of Certificates made part of the Minutes. Ms. Armenia indicated that her report would be done in closed session. RISK MANAGEMENT CONSULTANTS: Mr. Avalone advised that there are in-person Public Officials Risk Management seminars still available as well as the online training. He noted that the $250 credit will be granted whether the seminar is completed in person or online. Mr. Avalone then referred to the online instructions enclosed within his report. 5

Mr. Avalone informed the Board that the coverage bulletins for 2015 have been updated and posted to the MEL website. He noted that critical coverage information is detailed in these documents. He then referred to the announcement bulletin, MEL 15-01, enclosed within his report. Mr. Avalone referred to the E-JIF Alert that was originally issued to the membership in December 2013/January 2014. He advised that when members are planning on building or acquiring new property, they should speak with the Risk Management office so that the member can be guided accordingly. Lastly, Mr. Avalone informed the Board that Chief Denis Connell is providing a three-day training seminar for Sergeants and Lieutenants assigned as Patrol Supervisors. He noted that the training will take place from April 22-24, 2015 at the Atlantic County Police Academy. He then referred to the registration materials enclosed within his report. Mr. Avalone indicated that an additional training session has been scheduled for May 19 th at the Monmouth County Police Academy. Report and Attachments of Risk Management Consultants made a part of the Minutes MANAGED CARE: Ms. Gallo referred the Committee to her report contained in the Agenda packet. She informed the Board that during the month of January, there was a savings of $129,080 resulting in 65% of savings. Ms. Gallo added that during the month of February, there was a savings of $190,497 resulting in 64% of savings. Monthly Report Made Part of Minutes. OLD BUSINESS None NEW BUSINESS None PUBLIC COMMENT None 6

MOTION TO ENTER EXECUTIVE SESSION FOR THE PURPOSE OF DISCUSSING CLAIMS AND POTENTIAL LITIGATION VOTE: Commissioner Nolan MOTION TO ADJOURN EXECUTIVE SESSION VOTE: Commissioner Mercantante MOTION TO APPROVE PAYMENT OF CLAIMS AS DISCUSSED IN EXECUTIVE SESSION AS PRESENTED X51436 WC Z05550 WC E14175 WC E18291 WC Z09483 WC W70060 WC Z06271 WC X32093 GL X90626 GL X57079 GL X42728 GL X75078 GL X74930 GL X00534 GL X69098 GL ROLL CALL VOTE: Commissioner Nolan MOTION TO ADJOURN MEETING VOTE: Commissioner Cole 7

Meeting Adjourned at: 1:48 P.M. NEXT MEETING: May 2015 Wall Township Municipal Building 2700 Allaire Road Wall, NJ 07719 1:30 P.M. Secretary 8

MONMOUTH COUNTY MUNICIPAL JOINT INSURANCE FUND BILLS LIST Resolution No. 9-15 FEBRUARY 2015 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Monmouth County Municipal 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 2014 Check Number Vendor Name Comment Invoice Amount 000351 000351 ATLANTIC HIGHLANDS BOROUGH 2014 SIP MOST IMPROVED AWARD 500.00 500.00 000352 000352 PERRY TROPHY CO. PLAQUES - 12/22/14 449.00 449.00 000353 000353 WATERVIEW PAVILION ANNUAL SAFETY BREAKFAST - 1/8/15 1,888.60 1,888.60 000354 000354 PERMA POSTAGE FEE 12/2014 368.26 000354 PERMA E-FILING 2014 1099 MISC. 14.95 383.21 000355 000355 CLEARY GIACOBBE ALFIERI & LITIGATION MANAGEMENT - 12/2014 2,346.00 2,346.00 000356 000356 ASBURY PARK PRESS ACCT ASB-040013-12/28/14 - BUDGET 68.00 000356 ASBURY PARK PRESS ACCT ASB-040013-12/23/14 - MTG 1/8/15 48.50 116.50 Total Payments FY 2014 5,683.31 FUND YEAR 2015 Check Number Vendor Name Comment Invoice Amount 000357 000357 APEX INSURANCE SVS, c/o XL INS TECH ERRORS & OMISSIONS - 1OF2 INSTALL 11,400.00 000357 APEX INSURANCE SVS, c/o XL INS POL & EPL - 1 OF 2 INSTALLMENT 2015 442,597.00 000357 APEX INSURANCE SVS, c/o XL INS VOLUNT EMRG SERV DIR & OFFCR - 1OF2 INST 4,560.00 458,557.00 000358 000358 QUAL-LYNX OUTSIDE ADJUSTER - 02/2015 5,443.58 000358 QUAL-LYNX CLAIMS ADMIN - 02/2015 38,250.00 43,693.58 000359 000359 J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES - 02/2015 11,587.98 11,587.98 000360 000360 QUALCARE, INC. MANAGED CARE SERVICES - 02/2015 14,277.58 14,277.58 000361 9

000361 PERMA POSTAGE FEE 01/2015 70.01 000361 PERMA EXECUTIVE DIRECTOR FEE 02/2015 26,345.00 26,415.01 000362 000362 THE ACTUARIAL ADVANTAGE, INC. ACTUARIAL CONSULTING SERVICES - 02/2015 3,359.00 000362 THE ACTUARIAL ADVANTAGE, INC. ACTUARIAL CONSULTING SERVICES - 01/2015 3,359.00 6,718.00 000363 000363 CLEARY GIACOBBE ALFIERI & LITIGATION MANAGEMENT - 1/29/15 6,163.50 6,163.50 000364 000364 STEPHEN M. MAYER TREASURER FEE 02/2015 1,563.00 1,563.00 000365 000365 ASBURY PARK PRESS ACCT ASB-040013-1/28/15 - MTG NOTICE 66.50 000365 ASBURY PARK PRESS ACCT ASB-040013-01/19/15 - MTG 2/9/15 46.25 112.75 000366 000366 DANSKIN INSURANCE AGENCY INC. RMC FEE - 02/2015 39,854.34 000366 DANSKIN INSURANCE AGENCY INC. RMC FEE - 01/2015 39,854.34 79,708.68 000367 000367 CONNER STRONG & BUCKELEW UNDERWRITING MANAGER FEE 02/2015 924.58 924.58 000368 000368 EXECU-TECH, INC. MONTHLY WEBSITE MAINTENANCE FEE 02/2015 200.00 000368 EXECU-TECH, INC. MONTHLY WEBSITE MAINTENANCE FEE 01/2015 200.00 400.00 Total Payments FY 2015 650,121.66 TOTAL PAYMENTS ALL FUND YEARS $ 655,804.97 MONMOUTH COUNTY MUNICIPAL JOINT INSURANCE FUND BILLS LIST 10

Resolution No. 10-15 MARCH 2015 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Monmouth County Municipal 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 2013 Check Number Vendor Name Comment Invoice Amount 000369 000369 J.A. MONTGOMERY RISK CONTROL 2013 FULL SURVEY - RIGHT TO KNOW 9,242.50 9,242.50 Total Payments FY 2013 9,242.50 FUND YEAR 2014 Check Number Vendor Name Comment Invoice Amount 000370 000370 MARLBORO TOWNSHIP 14 SIP: SAFETY LEADERSHIP AWARD - 1/2015 1,000.00 1,000.00 000371 000371 OCEANPORT BOROUGH 2014 SIP: MOST IMPROVED AWARD 01/2015 500.00 500.00 Total Payments FY 2014 1,500.00 FUND YEAR 2015 Check Number Vendor Name Comment Invoice Amount 000372 000372 QUAL-LYNX PERFORMANCE BOND - 2015 2,295.00 000372 QUAL-LYNX CLAIMS ADMIN - 03/2015 38,250.00 000372 QUAL-LYNX OUTSIDE ADJUSTER - 03/2015 5,443.58 45,988.58 000373 000373 J.A. MONTGOMERY RISK CONTROL LOSS CONTROL SERVICES - 03/2015 11,587.98 11,587.98 000374 000374 QUALCARE, INC. MANAGED CARE SERVICES - 03/2015 14,277.58 14,277.58 000375 000375 PERMA POSTAGE FEE 02/2015 6.92 000375 PERMA EXECUTIVE DIRECTOR FEE 03/2015 26,345.00 26,351.92 000376 000376 THE ACTUARIAL ADVANTAGE, INC. ACTUARIAL CONSULTING SERVICES - 03/2015 3,359.00 3,359.00 000377 000377 CLEARY GIACOBBE ALFIERI & LITIGATION MANAGEMENT - 03/2/2015 8,269.90 8,269.90 000378 000378 STEPHEN M. MAYER TREASURER FEE 03/2015 1,563.00 1,563.00 000379 000379 ALLSTATE INFORMATION MANAGEMNT ACCT: 410 - ACT & STOR - 1/31/15 49.54 11

49.54 000380 000380 CONNER STRONG & BUCKELEW UNDERWRITING MANAGER - 03/2015 924.58 924.58 000381 000381 EXECU-TECH, INC. MONTHLY WEBSITE MAINTENANCE FEE 3/2015 200.00 000381 EXECU-TECH, INC. WEBSITE - SQUARE SPACE-HOSTING SERV 2015 192.00 392.00 000382 000382 NORTH AMERICAN INSURANCE MGMNT RMC FEE 1ST 2015 - MARLBORO TWP 20,663.67 20,663.67 000383 000383 ACRISURE, LLC RMC FEE 1ST 2015 - HAZLET TWP 17,457.15 17,457.15 Total Payments FY 2015 150,884.90 TOTAL PAYMENTS ALL FUND YEARS $ 161,627.40 12

MONMOUTH COUNTY MUNICIPAL JOINT INSURANCE FUND RESOLUTION #11-15 RESOLUTION AUTHORIZING ADVANCED TRAVEL EXPENSES FOR AUTHORIZED OFFICIAL TRAVEL WHEREAS, N.J.S.A. 40a:5-16.1 permits the governing body of any local unit to authorize payment in advance toward expenses for authorized official travel; and WHEREAS, certain Commissioners of the Monmouth County Municipal Joint Insurance Fund may need to travel to the PRIMA Conference on or about June 7, 2015 for the purpose of attending a seminar on public entity risk management and pooling, and; WHEREAS, the Treasurer has certified that funds are available from the 2015 miscellaneous contingency budget not to exceed $3,500 per attending commissioner, and; WHEREAS, the Commissioners representing the Monmouth County Municipal Joint Insurance Fund will verify their expenses and any excess cash will be repaid to the Monmouth County Municipal Joint Insurance Fund along with a detailed bill of items or demand, and the certification of affidavit required by N.J.S.A. 40A:5-16 which will be submitted within 10 days after the completion of the travel for which the advance was made; NOW THEREFORE BE IT RESOLVED, that the Treasurer is hereby instructed to make up to $3,500 in advance or reimbursement payment for the attending Commissioners of the Monmouth County Municipal Joint Insurance Fund. Monmouth County Municipal Joint Insurance Fund 13

RESOLUTION NO: 12-15 MONMOUTH COUNTY MUNICIPAL JOINT INSURANCE FUND (hereafter referred to as THE FUND ) AMENDING THE FUND S STANDARD PROFESSIONAL SERVICE AGREEMENT WHEREAS, THE FUND is duly constituted as a Municipal Joint Insurance Fund, as permitted under the laws promulgated by the State of New Jersey, (N.J.S.A. 40A-36, et.seq WHEREAS, the Fund approved contract language for the standard provisions that pertain to every provider unless specifically altered in the front section on January18, 2006; and WHEREAS, changes in the state law necessitates modifications to the standard contract; in particular language for Political Contributions, Affirmative Action and Recordkeeping; NOW, THEREFORE, BE IT RESOLVED that the amendments to the standard contract, attached heretofore, shall be adopted by the FUND for all contracts until this resolution is amended or appealed. ADOPTED this day; Chairman date Secretary date 14

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