Minutes of the VLCT Property and Casualty Intermunicipal Fund, Inc.
Board of Directors Meeting
Friday, February 17, 2017
VLCT Offices, Monpelier, Vermont
Directors Present: Pat Scheidel, Walker James, Joshua Powers, Mel Adams, Pete Johnson, John Lawe, Brendan Whittaker, Neal Fox, Aaron Frank, Stu Hurd (by phone), Carl Rogers and Jackie Higgins
Staff Present: David Sichel, Jeremiah Breer, Michael Gilbar, Fred Satink and Maura Carroll
Others Present: Chris Kogut and Allison Van Steensburg (Milliman)
The meeting was called to order at 10:00 a.m.
Upon motion (Powers/James) duly adopted, the Board voted unanimously to approve the agenda with the addition of the corrected minutes from the December 9, 2016 meeting being substituted for the minutes sent in the board packet.
Upon motion (Powers/Frank) duly adopted, the Board voted to approve the corrected minutes from the December 9, 2016 meeting as presented.
David Sichel provided an organizational update.
- Staffing updates;
- Ken Canning left VLCT to become the Pool Administrator for the North Carolina League of Municipalities.
- Joe Damiata is the Interim Director of Risk Management Services.
- Fred Satink is now the Manager of Underwriting, Safety and Health Promotion
- Jim Carrien is now a Loss Prevention Representative.
- Recruitment is underway for an Administrative Assistant for Risk Management Services.
- The 2016 financial audit field work will begin next week.
- The NavRisk underwriting software upgrade is progressing well.
- A claims audit has been scheduled for April.
- A VLCT cloud computing RFP was issued and proposals have been submitted. Vendor selection is expected by the end of the month.
- Local Government Day was held earlier this week.
- VLCT is celebrating its 50th anniversary in 2017.
- Board educational opportunities were presented and board members were encouraged to attend.
David Sichel requested that board members fill out the annual conflict of interest disclosure forms.
David Sichel requested that board members complete the Biographical Affidavits.
Jeremiah Breer, Deputy CFO presented unaudited financial results for the 2016 year. Net Position has increased from $17.7 million to $20.8 million.
Fred Satink provided a year end progress update for the board:
- Six PACIF members went out to bid for 2017. Five members remained with PACIF. The City of South Burlington left PACIF.
- The Towns of Cambridge and Swanton joined PACIF.
- The Village of Barton requested a coverage quote. PACIF did not offer a quote but did offer to provide loss prevention services. Reasons for PACIF declining to quote were discussed.
- A quote was provided for adding the Pomfret Volunteer Fire Department to the Town of Pomfret's coverage. PACIF is preparing a quote for the Town of Sheldon, including the volunteer fire department.
- Reinsurance contracts are all set.
- The increase in workers' compensation rates for libraries and parks and recreation were rescinded. A notice was sent to members.
John Lawe presented the report of the Joint Investment Committee. The committee reviewed 2016 investment results with financial advisor Strategic Assets Alliance and our fixed income manager Standish.
Jeremiah Breer introduced Chris Kogut and Allison Van Steensburg from Milliman who presented the actuarial "Analysis of Loss and Loss Adjustment Expense Reserves as of December 31, 2016". The results were overall consistent with the June 30, 2016 study conducted by Milliman.
Upon motion (Powers/Fox) duly adopted, the Board voted unanimously to accept the Analysis of Loss and Loss Adjustment Expense Reserves as of December 31, 2016.
As a result of Ken Canning's departure the position of Assistant Treasurer is vacant. In addition a new resolution is required to add Joe Damiata as a bank account signer. A resolution to add Mr. Damiata and streamline the approval process was reviewed.
Upon motion (James/Adams) duly adopted, the Board voted unanimously to appoint Joe Damiata as Assistant Treasurer.
Upon motion (Rogers/Lawe) duly adopted, the Board voted unanimously:
Resolved that the following individuals are designated as authorized signers on bank accounts for VLCT PACIF, including operating and claim accounts:
B. Michael Gilbar, CFO
Joseph Damiata, Director RMS
Maura Carroll, Executive Director
David Sichel, Deputy Director RMS and Assistant Secretary to the Board
Joshua Powers, Treasurer
Kelly Kindestin for claim account only
As long as this signature list is valid, any bank documentation required now or in the future for any existing or new PACIF bank accounts may be executed by the Assistant Treasurer to the Board and such action reported back to the Board at the next regular meeting.
Should any signer need to be removed for any reason, the Board authorizes the Executive Director to do so at her/his discretion and as circumstances warrant, reporting back to the Board at the next regular meeting.
Fred Satink presented proposed amendments to the Board Underwriting Policy.
Upon motion (Whittaker/Powers) duly adopted, the Board voted unanimously to adopt the proposed changes to the Board Underwriting Policy.
David Sichel provided a legislative report. He reviewed potential legislation relating to independent contractors and workers' and unemployment compensation insurance, a proposed workers' compensation premium discount for employers that adopt a voluntarily a drug-free workplace program. He also reviewed a proposed Marijuana legalization legislation and a bill to allow the legislative body to appoint the clerk or treasurer and to provide that the municipal offices of treasurer and collector of delinquent taxes are incompatible.
Finally, Mr. Sichel reviewed proposed legislation to make Post Traumatic Stress Disorders (PTSD) presumed to be work related for public safety workers. VLCT is working on a proposal to handle presumption type claims outside of the workers' compensation system.
Under other business Brendan Whittaker discussed federal officers being deputized to enforce local laws in New Hampshire.
Upon motion (Fox/Frank) duly adopted, the Board adjourned at 11:58 am.
David Sichel, Assistant Secretary