PACIF Board of Directors Meeting Minutes 2019 05-24
VLCT Property and Casualty Intermunicipal Fund (PACIF), Inc.
Board of Directors Meeting
Friday, June 21, 2019
VLCT Offices, Montpelier, Vermont
Directors Present: Carl Rogers, Joshua Powers, Jacqueline Higgins, John Lawe, Jerry Storey, Brendan Whittaker, Neal Fox, Aaron Frank, Stuart Hurd (by phone), Patrick Moreland and Bruce Urie (arrived 9:44 a.m.)
Staff Present: Joe Damiata, Maura Carroll, Jeremiah Breer, Fred Satink, Kelly Kindestin and Jim Carrien. Jessica Hill, Vicky Abare, Susan Rowell, Jim Burke, Pam Fecteau and Larry Smith departed the meeting at 10:46 a.m. Jill George departed the meeting at 11:25 a.m.
Others Present: Josh Darr (Guy Carpenter)
Vice President Rogers called the meeting to order at 9:33 a.m.
Upon motion (Storey/Frank) duly adopted, the Board voted unanimously to approve the agenda.
Upon motion (Powers/Hurd) duly adopted, the Board voted unanimously to approve the minutes from the May 24, 2019 meeting as presented.
Joe Damiata and Maura Carroll provided the staff report on the following topics:
- Forms for Town Fair attendance and lodging are available and due by August 30.
- Staff is going through a planning process with a facilitator from Vermont Technical College. There was a kick off meeting held last week and there will be a longer planning session at an all staff meeting in September.
- VLCT has been approached by the State of Vermont Department of Buildings and General Services to assist with oversight of the energy efficiency and weatherization program for municipalities.
Josh Darr, Lead Meteorologist for Guy Carpenter (formerly JLTRe), reviewed recent weather data – including data from Vermont – and provided context for changing weather patterns and implications for future frequency and severity of natural catastrophic events.
Jeremiah Breer provided an overview of VLCT PACIF’s internal control elements, which included key internal controls that address the Fund’s strategic, operational, financial, and compliance risks Adapted from a COSO Framework, Jeremiah explained the primary purpose of implementation is to prevent, detect and mitigate any potential risk to the Fund.
Joe Damiata discussed the 2019 Strategic Plan. This Strategic Plan was developed by the Board several years ago and is updated and approved annually by the Board. There was some discussion on how each goal is measured. Joe explained that a majority of the goals are built into employee performance evaluations, the Enterprise Risk Management process, and Business Plan. Board members directed staff to make several minor changes which will be presented to the Board as a final draft at the next meeting.
Joe Damiata briefly reviewed the 2019 ERM (Enterprise Risk Management) process and results. The Risk Inventory spreadsheet will be distributed to the board after the meeting.
Jeremiah Breer presented a redrafted version of the Board’s Net Position Target Range Policy. The updated policy establishes PACIF BCAR (Best Capital Adequacy Ratio), Risk Based Capital ratio, and IRIS financial metrics as financial benchmarks and proposes to establish a working range for net position. John Lawe requested the definition of “net position” be added to this policy.
Upon motion (Frank/Storey) duly adopted, the Board voted unanimously to approve the Net Position Target Range Policy with the addition of a “net position” definition.
Joe Damiata presented a proposed new Board policy that establishes requirements when PACIF enters into service provider contracts.. The policy implements numerous best practices and is required for Association of Governmental Risk Pools (AGRIP) recognition. No discussion by the Board.
Upon motion (Urie/Higgins) duly adopted, the Board voted unanimously to approve the Contract Service Provider Policy as presented.
Fred Satink discussed the current state of the property reinsurance market and the potential benefit of being able to bind coverage early in the rapidly rising rate environment. Brendan Whittaker commented on the importance of reinsurance especially with catastrophic events such as Tropical Storm Irene.
Upon motion (Whittaker/Fox) duly adopted, the Board voted unanimously to authorize staff to bind property re-insurance coverage prior to the September Board meeting, if it is deemed by staff to be in the best financial interest and/or coverage interests of the Fund.
Vice President Rogers appointed himself, Jacqueline Higgins and Jerry Storey to the Nominating Committee.
Upon motion (Storey/Higgins), duly adopted, the board voted unanimously to adjourn the meeting (12:49 p.m.).