City Council

The continuation of the December 19, 2011 meeting of the City Council of the City of Hackensack was held at City Hall, 65 Central Avenue, Hackensack, New Jersey, on Friday, December 23, 2011 at 9:45 a.m. Mayor Meneses called the meeting to order and City Clerk, Debra Heck, stated: “In accordance with the Open Public Meetings Act, Chapter 231, Laws of 1975, adequate notice of this meeting was provided by sending a notice to The Record and the County Seat and by posting a copy on the Bulletin Board in City Hall”. Mrs. Heck called the roll: Present – Mayor Jorge E. Meneses, Councilman John P. Labrosse, Councilman Marlin G. Townes, Councilwoman Karen K. Sasso, City Attorney Joseph C. Zisa and City Manager Stephen Lo Iacono. Deputy Mayor Michael R. Melfi was absent. Mayor Meneses asked everyone to stand for the flag salute. Mr. Lo Iacono advised the Council that the City was dropped by Selective Insurance due to all of the police litigation. He said that he had conducted a search for coverage and the City could get all other coverage but not public officials/employment practices liability (PO/EPL). Accordingly, the resolutions that are to be considered this morning will allow the City to participate in the Joint Insurance Fund (JIF). Flood coverage has not been settled upon yet. He further advised that municipalities that are part of the JIF do not have the PO/EPL package and that everyone gets that from Excel, which offered the City coverage but only if it were to be part of the JIF. Mr. Lo Iacono said that the premium increase would amount to approximately $40,000 but that there would be significant changes in the coverage of PO/EPL. The deductible is being raised from $200,000 to $250,000 per claimant, not per claim and there will be no change in defense fees. Mr. Lo Iacono also advised that the coverage will not cover any lawsuits that involve Police Chief Charles Zisa. However, a separate policy can be bought for him in the future. Selective Insurance will have to cover the City for one year for PO/EPL claims and the City could buy back the last four years which would cover the Chief. Mr. Lo Iacono said that if the City gets sued, the JIF picks the attorney. Mr. Lo Iacono explained the contents of the resolutions on the docket that pertain to insurance coverage. He said that two are to allow the City to join the JIF and that there would be a three year commitment to the JIF. He said that there is a lot of support structure from the JIF with reference to personnel manuals, etc. and that elected officials will have to attend once a year courses as well as department heads. Mr. Lo Iacono said that Resolution No. 466-11 names Otterstedt as risk management consultant and that Resolution No. 467-11 names Bergen Risk as the third party administrator. The City Clerk announced that the following items are considered to be routine in nature and will be enacted in one motion; any items requiring expenditure are supported by a Certification of Availability of Funds; any item requiring discussion will be removed from the Consent Agenda; all Consent Agenda items will be reflected in full in the minutes including any exceptions and/or additions. NO. 462-11 OFFERED BY: SASSO SECONDED BY: LABROSSE WHEREAS, N.J.S. 40A:-19 provides authority for appropriating in a temporary resolution the permanent debt service requirements for the coming fiscal year providing that such resolution is not made earlier than December 20 th of the year providing the beginning of the fiscal year; and 12/23/11  WHEREAS, the date of the Resolution is subsequent to December 20, 2011; and WHEREAS, principal and interest will be due on various dates from January 1, 2012 to December 31, 2012, inclusive, on sundry bonds issued and outstanding. NOW, THEREFORE, BE IT RESOLVED, that the following appropriations be made to cover the period January 1, 2012 to December 31, 2012 inclusive: DEBT SERVICE – CITY OF HACKENSACK Payment of Bond Principal $2,165,000 Payment of Bond Interest $ 695,000 Payment of Bond Anticipation Notes $1,285,000 Payment of Bond Anticipation Notes Interest $ 165,000 Waste Water Treatment Bonds Principal $ 287,000 Interest $ 93,000 Bergen County Banc Loan Program Lease Payments Principal $ 135,000 Interest $ 42,000 DEBT SERVICE – PUBLIC PARKING SYSTEM Payment on Bond Principal $ 150,000 Payment on Bond Interest $ 41,150 Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi NO. 463-11 OFFERED BY: SASSO SECONDED BY: LABROSSE _____________________________________________________________________ WHEREAS, the City of Hackensack, (hereinafter the “CITY”) is having difficulty securing Public Officials and Employment Practices Liability insurance and some other property/casualty insurances for 2012; and WHEREAS, the CITY is joining the South Bergen Municipal Joint Insurance Fund (hereinafter the “FUND”), a governmental unit formed pursuant to NJSA 40A:10-36 et. seq.; and WHEREAS, the FUND provides Public Officials and Employment Practices Insurance through a master policy negotiated by another governmental entity, the Municipal Excess Liability Joint Insurance Fund (hereinafter the MEL);and WHEREAS, the FUND and the MEL have been able to secure Public Officials and Employment Practices Insurance for the CITY from the XL insurance company subject to certain terms and conditions that are different from the normal policy provided by XL through the JIF; and WHEREAS, as a condition for the issuance of said policy, the CITY’s governing body must adopt a resolution agreeing to the different conditions. NOW THEREFORE, BE IT RESOLVED, that the City of Hackensack hereby agrees and accepts that among other terms and conditions in the policy of insurance to be issued by the XL Insurance Company covering public officials and employment practices insurance for the year 2012 that: 1. The Limit of liability is $1,000,000 per claim and $1,000,000 annual aggregate 2. The deductible is $250,000 per claimant (not per claim) 12/23/11  3. Defense fees are inside (eroding) the limit 4. The policy has what is known as laser exclusion for any claims arising out of the actions of, or brought by, Chief Charles “Ken” Zisa. 5. The retroactive date is the date from inception and therefore there is no prior acts coverage 6. XL and its claims administrator Summit shall make all decisions concerning defense counsel assignments 7. The MEL’s Executive Director will meet with the city within the next 30 days to implement MEL’s Risk Management training standards and model policies and procedures pertaining to EPLI. 8. The premium is $106,000 per year BE IT FURTHER RESOLVED, that the City of Hackensack recognizes that because of a series of claims experienced by the CITY over the past few years, it is not otherwise able to secure public officials and employment practices insurance with the terms and conditions normally available. Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi NO. 464-11 OFFERED BY: SASSO SECONDED BY: LABROSSE _____________________________________________________________________ WHEREAS, a number of municipalities in the state of New Jersey have joined together to form a Joint Insurance Fund as permitted by chapter 372 Laws of 1983 (40A:10-36); and WHEREAS, said Fund was approved to become operational by New Jersey Department of Insurance and the Department of Community Affairs and has been in operation since that date; and WHEREAS, the statutes and regulations governing the creation and operation of a Joint Insurance Fund contain elaborate restrictions and safeguards concerning the safe and efficient administration of the public interest entrusted to such a Fund. NOW, THEREFORE , BE IT RESOLVED, that the Governing Body of the City of Hackensack does hereby agree to join the Fund subject only to the right to approve the initial assessment when the same is received from the Fund following processing of the application; and BE IT FURTHER RESOLVED, that the City of Hackensack is applying to the Fund for the following types of coverages: 1. Workers' Compensation and Employer's Liability; 2. Liability, other than motor vehicle; 3. Property Damage, other than motor vehicle; 4. Motor Vehicle. 5. Public Officials Liability/Employment Practices Liability 6. Environmental Impairment Liability BE IT FURTHER RESOLVED that the Governing Body hereby adopts and approves of the bylaws of the Fund; and BE IT FURTHER RESOLVED, that Stephen Lo Iacono is authorized to execute the application for membership and the accompanying certification on behalf of the Governing Body; and BE IT FURTHER RESOLVED, that the Governing Body is authorized and directed to execute the Indemnity and Trust Agreement and such other documents signifying membership in the Fund as are required by the Fund's bylaws and to deliver 12/23/11 same to the Executive Director of the Fund with the express reservation that said document shall become effective only upon the applicant's admission to the Fund following approval by the Fund, passage by the Governing Body of a Resolution Accepting Assessment and approval by the New Jersey Department of Insurance and the Department of Community Affairs. Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi NO. 465-11 OFFERED BY: SASSO SECONDED BY: LABROSSE _____________________________________________________________________ THIS AGREEMENT, made this day of December 23, 2011 in the County of Bergen, State of New Jersey, By and Between the South Bergen Municipal Joint Insurance Fund, hereinafter referred to as "FUND", and the Governing Body of the City of Hackensack, a duly constituted local unit of government hereinafter referred to as "GOVERNING BODY"; and WHEREAS, several local governmental units have collectively formed or are in the process of forming a Joint Insurance Fund as such an entity is authorized and described in NJSA 40A:10-36 et seq. and the administrative regulations promulgated pursuant thereto ;and WHEREAS, the GOVERNING BODY has agreed to become a member of the FUND in accordance with and to the extent provided for in the bylaws of the FUND and in consideration of such obligations and benefits to be shared by the membership of the FUND. NOW THEREFORE ,BE IT RESOLVED, it is agreed as follows: 1. The GOVERNING BODY accepts the FUND'S bylaws as approved and adopted and agrees to be bound by and to comply with each and every provision of the said bylaws and the pertinent statutes and Administrative Regulations pertaining to same and as set forth in the Risk Management Plan. 2. The GOVERNING BODY agrees to participate in the FUND with respect to the types of insurance listed in the City of Hackensack's Resolution. 3. The GOVERNING BODY agrees to become a member of the FUND for an initial period of three (3) years, the commencement of which shall coincide with the effective date of the FUND'S operation and coverage, or the effective date of membership, whichever occurs later. 4. The GOVERNING BODY certifies that it has never defaulted any claims if self-insured and has not been canceled for non-payment of insurance premiums for a period of at least two years prior to the date hereof. 5. In consideration of membership in the FUND the GOVERNING BODY agrees that it shall jointly and severally assume and discharge the liability of each and every member of the FUND, all of whom as a condition of membership in the FUND shall execute a verbatim counterpart of this Agreement and by execution hereof the full faith and credit of the GOVERNING BODY is pledged to the punctual payment of any sums which shall become due to the FUND in accordance with the bylaws thereof, this Agreement the Fund's Risk Management Plan or any applicable Statute. 6. If the FUND in the enforcement of any part of this Agreement shall incur necessary expense or become obligated to pay attorney's fees and/or Court costs the GOVERNING BODY agrees to reimburse the FUND for all such reasonable expenses, fees and costs on demand. 12/23/11 7. The GOVERNING BODY and the FUND agree that the FUND shall hold all monies paid by the GOVERNING BODY to the FUND as fiduciaries for the benefit of FUND claimants all in accordance with NJAC 11:15 2.1 et seq. 8. The FUND shall establish separate Trust Accounts for each of the following categories of risk and liability: a) Workers' Compensation and Employers' Liability b) Liability, other than motor vehicle c) Property Damage, other than motor vehicle d) Motor Vehicle e) Public Officials/Employment Practices Liability f) Environmental Impairment Liability The FUND shall maintain Trust Accounts aforementioned in accordance with NJSA 40A: 10-36, NJAC 11:15.2 et seq, NJSA 40A: 5-1 and such other statutes as may be applicable. More specifically, each of the aforementioned separate Trust Accounts shall be utilized solely for the payment of claims, allocated claim expense and excess insurance or reinsurance premiums for each such risk or liability or as "surplus" as such term is defined by NJAC 11:15-2.2. 9. Each GOVERNING BODY who shall become a member of the FUND shall be obligated to execute this Agreement. Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi NO. 466-11 OFFERED BY: SASSO SECONDED BY: LABROSSE _____________________________________________________________________ WHEREAS, the City of Hackensack has resolved to join the South Bergen Municipal Joint Insurance Fund, following a detailed analysis; and WHEREAS, the bylaws of said Funds require that each Governing Body appoint a RISK MANAGEMENT CONSULTANT to perform various professional services as detailed in the bylaws; and WHEREAS, the Board of Fund Commissioners established a fee equal to six percent (6%) of the Municipal assessment which expenditure represents reasonable compensation for the services required and was included in the cost considered by the Governing Body; and WHEREAS, the judgmental nature of the Risk Management Consultant's duties renders comparative bidding impractical. NOW THEREFORE, BE IT RESOLVED, be it resolved that the City of Hackensack does hereby appoint Otterstedt Insurance Agency, Inc. of Hasbrouck Heights as its Risk Management Consultant in accordance with the Fund's bylaws; and BE IT FURTHER RESOLVED, that the Governing Body is hereby authorized and directed to execute the Risk Management Consultant's Agreement annexed hereto and to cause a notice of this decision to be published according to NJSA 40A:11-5 (1) (a) (i). Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi 12/23/11  NO. 467-11 OFFERED BY: SASSO SECONDED BY: LABROSSE _____________________________________________________________________ THIS AGREEMENT, entered into this 1st day of January 1, 2012, between the City of Hackensack (hereinafter referred to as GOVERNING BODY) and Otterstedt Insurance Agency, Inc. of Hasbrouck Heights (hereinafter referred to as the CONSULTANT); and WHEREAS, the CONSULTANT has offered to the GOVERNING BODY professional risk management consulting services as required in the bylaws of the South Bergen Municipal Joint Insurance Fund ; and WHEREAS, the GOVERNING BODY desires these professional services pursuant to the resolution adopted by the governing body of the GOVERNING BODY at a meeting held December 23, 2011. NOW, THEREFORE, BE IT RESOLVED, the parties in consideration of the mutual promises and covenants set forth herein, agree as follows: 1. For and in consideration of the amount stated hereinafter, the CONSULTANT shall: a) Assist the GOVERNING BODY in identifying its insurable Property & Casualty exposures and to recommend professional methods to reduce, assume or transfer the risk or loss. b) Assist the GOVERNING BODY in understanding the various coverages available from the South Bergen Municipal Joint Insurance Fund and the Municipal Excess Liability Joint Insurance Fund. c) Review with the GOVERNING BODY any additional coverages that the CONSULTANT feels should be carried but are not available from the FUND and subject to the GOVERNING BODY's authorization, place such coverages outside the FUND. d) Assist the GOVERNING BODY in the preparation of applications, statements of values, and similar documents requested by the FUND, it being understood that this Agreement does not include any appraisal work by the CONSULTANT. e) Review Certificates of Insurance from contractors, vendors and professionals when requested by the GOVERNING BODY. f) Review the GOVERNING BODY's assessment as prepared by the FUND and assist the GOVERNING BODY in the preparation of its annual insurance budget. g) Review the loss and engineering reports and generally assist the safety committee in its loss containment objectives. Also, attend no less than one (1) municipal safety committee meeting per annum to promote the safety objectives and goals of the GOVERNING BODY and the FUND. h) Assist where needed in the settlement of claims, with the understanding that the scope of the CONSULTANT's involvement does not include the work normally done by a public adjuster. i) Perform any other risk management related services required by the FUND's bylaws. 2. In exchange for the above services, the CONSULTANT shall be compensated in the following manner: 12/23/11  a) The CONSULTANT shall be paid by the GOVERNING BODY a fee as compensation for services rendered, an amount equal to six percent (6%) of the GOVERNING BODY's annual assessment as promulgated by the FUNDs. Said fee shall be paid to the CONSULTANT within thirty (30) days of payment of the GOVERNING BODY's assessment. b) For any insurance coverages authorized by the GOVERNING BODY to be placed outside the FUND, the CONSULTANT shall receive as compensation the normal brokerage commissions paid by the insurance company. The premiums for said policies shall not be added to the FUND's assessment in computing the fee outlined in 2 (a). c) If the GOVERNING BODY shall require of the CONSULTANT extra services other than those outlined above, the CONSULTANT shall be paid by the GOVERNING BODY a fee at the rate of N/A per hour, in addition to actual expenses incurred. 3. The term of this Agreement shall be one (1) year. However, this Agreement may be terminated by either party at any time by mailing to the other written notice, certified mail return receipt, calling for termination at not less than thirty (30) days thereafter. In the event of termination of this Agreement, the CONSULTANT's fees outlined in 2 (a) above shall be prorated to date of termination. Roll Call – Ayes: Labrosse, Townes, Sasso, Meneses Absent: Melfi A motion was made by Councilwoman Sasso and seconded by Councilman Townes to open the meeting to the public. As no one wished to be heard, a motion was made by Councilwoman Sasso and seconded by Councilman Townes to close the public portion of the meeting. Councilwoman Sasso said that for years the Council has sat here and listened to disparaging comments about the City Manager, but due to his experience and contacts, the insurance issue was resolved and that the Council owes a great debt to him. She further said that a lot of political things go on at the meetings and that the police lawsuits were an unprecedented event. Councilwoman Sasso said that the Council had made the right decision by putting Mr. Calo on these cases, which were allegations of officers being moved into the Housing Authority, the use of authority, not being promoted before retirement, etc. She said that it is disgraceful for these people to hold the City as hostage. Mayor Meneses requested a copy of the termination letter fhat had been received from Selective Insurance. As there was no further business, a motion was made by Councilwoman Sasso and seconded by Councilman Labrosse to adjourn the meeting at 10:30 a.m. _____________________________ Mayor Jorge E. Meneses absent________________________ Deputy Mayor Michael R. Melfi ______________________________ Councilwoman Karen K. Sasso ______________________________ Councilman Marlin G. Townes 12/23/11  ______________________________ Councilman John P. Labrosse __________________________ Debra Heck, City Clerk 12/23/11