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VLCT Property and Casualty Intermunicipal Fund, Inc.
Board of Directors Meeting
Friday, September 29, 2017
VLCT Offices, Montpelier, Vermont

Minutes

Directors Present: Pat Scheidel, Joshua Powers, John Lawe, Carl Rogers, Brendan Whittaker, Stu Hurd, Pete Johnson, Neal Fox, Jackie Higgins, Aaron Frank, Mel Adams, Bruce Urie, Jerry Storey

Staff Present: Joe Damiata, David Sichel, Maura Carroll, Michael Gilbar, Jeremiah Breer, Fred Satink, Pam Fecteau

Others Present: Brian Monaghan, John Riley

The meeting was called to order by President Scheidel at 9:30 am.

Brendan Whittaker welcomed the two new Alternate Board Members.

Upon motion (Powers/Higgins) duly adopted, the Board voted unanimously to approve the agenda as presented.

Upon motion (Higgins/Johnson) duly adopted, the Board voted to approve the minutes from the August 18, 2017 meeting as presented.

Joe Damiata presented two alternatives to clarify the proposed Bylaw amendment relating to the voting rights of Alternate Board Members. The Board prefers option 1, which allows all alternate board members to vote if a quorum is not present.

Upon motion (Frank/Higgins) duly adopted, the Board voted to approve adopt bylaw amendment option 1 for presentation at the Annual Meeting.

Carl Rogers will present the proposed amendment at the Annual Meeting.

Introductions were made around the room.

Joe Damiata reviewed the preliminary budget for 2018.  This preliminary budget figure was used by the actuary for their study.

Fred Satink and Pam Fecteau reviewed proposed changes to the Coverage Document for 2018.  PACIF's corporate counsel John Riley has reviewed the proposed changes. The Board discussed the fellow employee exclusion for both auto and general liability. Further information will be provided at the next board meeting.

Also reviewed was the proposed Cyber Liability and Data Breach Coverage Document. This new coverage will be effective January 1, 2018 and is fully reinsured by Beazley and NLC Mutual Insurance Company.

Fred Satink updated the board on the reinsurance renewals. Overall reinsurance costs are up due to claims.  The Boiler and Machinery reinsurance will be put out to bid.

Upon motion duly adopted, the Board voted to enter a deliberative session to receive advice from an attorney at 10:10 am.

The Board left their deliberative session at 11:00 am at which time the hearing relating to staff’s recommendation to terminate the Town of Victory’s membership in VLCT PACIF effective December 31, 2017. The hearing was recorded.

In addition to the PACIF Board the following individuals were present at the hearing:

  • VLCT Staff: Joe Damiata, Maura Carroll, David Sichel, Kelly Kindestin, Michael Gilbar, Jeremiah Breer, Fred Satink, Dean Mudgett.
  • Attorney John Riley on behalf of VLCT staff
  • Attorney Brian Monaghan for the PACIF Board
  • Attorneys Dan Richardson, Michael Tarrant and Andrew Marchand representing the Town of Victory.
  • Walt Mitchell (Selectboard Chair) and Carol Easter (Town Clerk) representatives for the Town of Victory.
  • Ferne Loomis, Dawn Peters, Jan Stanley and Sandra Hudson residents of the Town of Victory.
  • Todd Wellington from the Caledonian Record newspaper.

Joe Damiata and John Riley presented staff’s recommendation to terminate the Town of Victory’s membership in VLCT PACIF effective December 31, 2017.

Dan Richardson presented the Town of Victory’s position that the Town’s membership in PACIF should not be terminated.

After the presentations, the Board asked questions and comments were received from others present.

The hearing was concluded at 12:07 pm.

Upon motion (Hurd/Rogers) duly adopted, the Board voted to enter a deliberative session at 12:08 pm.

The board left their deliberative session at 1:35 pm.

Board members present for the reconvened open meeting: Pat Scheidel, Joshua Powers, John Lawe, Carl Rogers, Brendan Whittaker, Neal Fox, Mel Adams, Bruce Urie, Jerry Storey

Pat Scheidel thanked Mel Adams for his service on the PACIF Board and to a round of applause presented Mel with a token of appreciation for his service.

Tara Miller from Milliman presented the Actuarial Reserve and 2018 Funding Study to the Board.

The Board discussed proposed rates for 2018. Fred Satink explained that staff proposes an overall rate increase of 1.5%. More detailed rates by line of coverage were discussed. The Board discussed reduction of rate subsidies between lines of coverage. It was noted that other factors such as changes in exposures, experience modifiers and underwriting debits and credits impact the actual bill for each member.

Joe Damiata presented a request to use up to $1 million in Net Position to allow more underwriting flexibility if needed. The Board supports this request.

Joe Damiata reviewed the proposed distribution credit to members for 2018. Staff is recommending a distribution credit of $700,000 with $500,000 as rate credits and $200,000 to fund the safety grant program.  
Under other business Pat Scheidel announced he will be unable to attend the Annual Meeting.
    
Upon motion (Powers/Adams) duly adopted, the Board adjourned at 2:25 pm.

Respectfully submitted,

David Sichel
Assistant Secretary

Board or Committee: 
PACIF Board of Directors

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