The Kentucky Association of Counties held a Board of Directors' meeting at 1:00 p.m. on Thursday, December 15, 2011 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: President John Wilson, Garrard Co. Judge/Executive; Ervine Allen, Breathitt Co. PVA; Ben Brown, Logan Co. PVA; Karen Bushart, Clark Co. PVA; Tim Coleman, Commonwealth Attorney; Tucker Daniel, Johnson Co. Judge/Executive; Larry Foxworthy, Fleming Co. Judge/Executive; Jerry "Peanuts" Gaines, Warren Co. Sheriff; John Goble, Floyd Co. Magistrate; Bruce Hampton, Harrison Co. Sheriff; Chris Harris, Pike Co. Magistrate; Stan Humphries, Trigg Co. Judge/Executive; Dean Johnson, Laurel Co. Clerk; Chuck Korzenborn, Kenton Co. Sheriff; Darrell Link, Grant Co. Judge/Executive; Mike Miller, Marshall Co. Judge/Executive; Buddy Nichols, Lyon Co. Magistrate; David Nicholson, Jefferson Co. Circuit Clerk; Jim Nickell, Rowan Co. Judge/Executive; Marc Robbins, Madison Co. Attorney; Kay Schwartz, Whitley Co. Clerk; Mike Simpson, Oldham Co. Jailer; Stephen Stark, Trimble Co. Magistrate; Randy Stevens, Trimble Co. Judge/Executive (also proxy for Sue Carole Perry, Shelby Co. Clerk); Carl Tolliver, Boyd Co. Commissioner; Jim Townsend, Webster Co. Judge/Executive; Tommy Turner, LaRue Co. Judge/Executive; and Ronald Wright, Casey Co. Judge/Executive.
Others present were: Denny Nunnelley, Executive Director/CEO; Brian Roy, Deputy Director; Tim Sturgill, General Counsel; Carolyn Jones, Chief Financial Officer; Grant Satterly, Director of Financial Services; Mark Miller, Director of Insurance; Roger Recktenwald, Director of Research & Planning; Scott Martin, Director of Member Services; Shellie Hampton, Director of Governmental Relations; Jerry Pace, Marketing Agent; Mack Bushart, Executive Director, KY PVA Association; Rich Ornstein, Attorney; Jesse Penn, Computer Support Specialist; Vince Lang, Executive Director, KY County Judge/Executive Association; Bill Patrick, Executive Director, KY County Attorneys Association; Mike Foster, Christian Co. Attorney; Larry Crigler, Assistant Director of Insurance/Litigation Manager; Gina Schafer, Director of Unemployment Insurance Fund; Cathy Hancock, Information Officer; Lonnie Campbell, Senior Account Analyst; Jerry Wagner, Executive Director, KY Sheriffs Association; Richard Tanner, Executive Director, KY Magistrates & Commissioners Association; Bill May, Executive Director, KY County Clerks Association; Michael Ray, Risk Manager; Shawn Weir, Claims Manager; Rick Smith, Clark Co. Commissioner; Steve Tribble, Christian Co. Judge/Executive; Vicki Pettus, Legislative & Research Assistant; and Sonya Chesser, Executive Secretary.
President Wilson called the meeting to order at 1:00 p.m.
Judge Humphries gave the invocation.
Motion made by Mike Miller, seconded by Tommy Turner, to approve the minutes of the September 22, 2011 meeting as presented. Motion carried.
President Wilson welcomed the following new members to the board: Fleming Co. Judge Larry Foxworthy representing Buffalo Trace ADD; Lyon Co. Magistrate Buddy Nichols, KACo's 2nd Vice President; Kenton Co. Sheriff Chuck Korzenborn representing Northern KY ADD; Whitley Co. Clerk Kay Schwartz, president of the County Clerks Association; and Johnson Co. Judge/Executive Tucker Daniel, president of the KY County Judge/Executive Association. He also recognized former board members Christian County Judge/Executive Steve Tribble and Clark County Magistrate Rick Smith.
President Wilson requested approval of the following appointments: Reappoint Shelby Co. Clerk Sue Carole Perry and Christian Co. Attorney Mike Foster to the KACo Leasing Trust Board for a three year term to begin January 1, 2012 and to expire December 31, 2014. Motion made by Mike Miller, seconded by Tommy Turner, to reappoint Shelby Co. Clerk Sue Carole Perry and Christian Co. Attorney Mike Foster to the KACo Leasing Trust Board to a three-year term. Motion carried. Reappoint Clark Co. PVA Karen Bushart and Union Co. Judge/Executive Jody Jenkins to the KACo All Lines Fund Board for a three year term to begin January 1, 2012 and to expire December 31, 2014. Motion made by Jim Nickell, seconded by John Goble, to reappoint Clark Co. PVA Karen Bushart and Union Co. Judge/Executive Jody Jenkins to the KACo All Lines Fund Board to a three-year term. Motion carried. Reappoint Johnson Co. Judge/Executive Tucker Daniel and Barren Co. Sheriff Chris Eaton to the KACo Unemployment Insurance Fund Board for a three year term to begin January 1, 2012 and to expire December 31, 2014. Motion made by Randy Stevens, seconded by Stephen Stark, to reappoint Johnson Co. Judge/Executive Tucker Daniel and Barren Co. Sheriff Chris Eaton to the KACo Unemployment Insurance Fund Board to a three-year term. Motion carried.
Ms. Jones presented and discussed the financial statement for the months ending July 1, 2011 through November 30, 2011.
Motion made by Karen Bushart, seconded by John Goble, to approve the financial statement as presented. Motion carried.
President Wilson requested approval to ratify a resolution honoring the memory of Harlan County Clerk Wanda Clem.
Motion made by Dean Johnson, seconded by Marc Robbins, to ratify the resolution in memory and honor of Harlan County Clerk Wanda Clem. Motion carried.
Mr. Sturgill presented and discussed an amended and restated joinder agreement between KACo and the Employees' 457 Deferred Compensation Plan and Kentucky Public Employees' 4019(k) Deferred Compensation Plan. He also presented a resolution for KACo to enter and adopt the Joinder Agreement for participation in the 457 Plan and the 401(k) Plan for the benefit of its eligible employees.
Motion made by Randy Stevens, seconded by Jim Nickell, to adopt the joinder agreement between KACo and the Employees' 457 Deferred Compensation Plan and Kentucky Public Employees' 401(k) Deferred Compensation Plan and the resolution. Motion carried.
President Wilson presented and discussed the 2012 meeting schedule for the board's consideration.
Motion made by Tommy Turner, seconded by Peanuts Gaines, to approve the following meeting schedule for 2012: March 15; June 28; September 25; and December 13 at 1:00 p.m. at the KACo offices. Motion carried.
Mr. Nunnelley provided an update on KACo's strategic plan. At the next meeting, he will provide data as to the number of visitors viewing KACo's Open Door Site.
Mr. Nicholson, KACo's representative on the NACo board, highlighted the issues that NACo is focusing on as they relate to America's counties and provided an update on actions taken by the NACo board.
Ms. Hampton, giving an update on the governmental relations report, introduced Vicki Pettus, a newly hired part-time employee of KACo. Ms. Pettus will provide legislative and data research assistance to Ms. Hampton and Mr. Recktenwald. Ms. Hampton said the KACo Legislative Committee, chaired by KACo President-Elect Judge John Wilson, met November 10th. President Wilson and KACo President-Elect Tommy Turner testified to the Interim Joint Committee on Local Government November 30th to discuss KACo and its affiliate's legislative issues for the upcoming session. She provided the board with a copy of the 2012 County Legislative Issues that was presented to the Joint Committee on Local Government. She said the next scheduled legislative committee meeting is January 17th at 10:00 a.m. at the KACo office. She welcomed comments and feedback from the board.
Mr. Miller, giving an update on the KACo All Lines Fund, presented an annual report which included the activity, financial overview and investment summaries for 2011. He said 10 new members joined the program for a total of 703 accounts including 113 fiscal courts with rates guaranteed through July 1, 2012. Mr. Miller said a request for Statement of Values updates have been sent to members for policy year 2012. As of June 30, 2011, premiums, including earthquake and endorsements, totaled $29,482,692; assets totaled $89,302,576; liabilities totaled $70,134,477; members' equity totaled $19,168,099; claim reserves totaled $40,354,000; and investments as of September 30, 2011 totaled $68,585,563.
Mr. Satterly, giving an update on the KACo Leasing Trust, explained the new lending program offered by CoLT, which utilizes a bank buying pool alleviating the need for a letter of credit. He also explained the county bond pool program offered by the KACo Finance Corporation. He thanked the members of the CoLT board and Mr. Nunnelley for offering a broad arrange of products and options to its borrowers.
Ms. Schafer, giving an update on the KACo Unemployment Insurance Fund, said third quarter charges totaled roughly $865,000. The Fund's balance, as of November 30th, totaled approximately $8 million and all premiums have been received.
Mr. Miller, giving an update on the KACo Workers Compensation Fund, presented an annual report which included the activity, financial overview and investment summaries for 2011. For FY 2010/11, the Fund had a total of 620 members including 113 fiscal courts. For policy year 2010/11, assets totaled $83,880,988; liabilities totaled $66,741,122; members' equity totaled $17,139,866; claim reserves totaled $44,364,000; and investments as of September 30, 2011 totaled $69,753,489. He said underwriting is collecting data to determine the renewal pricing for policy year 2012. In October of this year, the Workers Compensation Board voted to declare a $2 million dividend for policy year 2006/07 for those members participating in the program at that time.
Mr. Pace, giving an update on the health insurance program through the KACo Insurance Agency, presented an annual report which included the activity as of November 2011 and a financial overview as of June 30, 2011. He said beginning January 1, new members will include Anderson, Calloway and Graves counties for a total of 41 fiscal courts; 62 libraries and 32 political subdivisions.
Mr. Recktenwald, giving an update on research and planning, said with regards to Water and Wastewater Infrastructure he is working on a proposed voluntary approach to setting of wholesale rates for sewage treatment services between multiple wastewater systems, including both municipal and sanitation districts - which provides an alternative approach to that provided by the Public Service Commission. He is also working with Garrard County Fiscal Court in development of a RFQ relating to the use of one water plant to be shared between the cities of Danville and Lancaster and the Garrard County Water Association. Also, he is working with Perry County toward a countywide water district and sanitation district. He said work continues with the centrally managed on-site wastewater project for Pike County and with the Green County Sanitation District No. 1 for management improvements. Finally, Hopkins County Fiscal Court and the cities of Nortonville, Mortons Gap and White Plains are forming the South Hopkins Wastewater Authority to resolve long standing problems with their shared wastewater plant. Mr. Recktenwald also noted that our IT staff continues to develop its Information Technology and Enterprise Development Plan as outlined in KACo's Strategic Plan. He encouraged board members to secure a copy of their respective county's geologic map, now that all 120 county maps have been completed by the Kentucky Geologic Survey.
Mr. Martin, giving an update on Member Services, provided the topics and locations for KACo's Leadership Institute classes for 2012. He said the next issue of County Line magazine will focus on the legislative session; it is scheduled to be mailed out in January. The magazine also features an article and request form for a reverse auction for road salt. He encouraged the board to fill out the request for estimated tonnage of road salt needed for 2013. He said in 2011, 58 counties and 1 city participated in the reverse auctions. The 2012 KACo calendar is almost complete and is expected to be mailed out in early January to all members. A reverse auction took place December 1 on behalf of Garrard County Fiscal Court for the purchase of an ambulance. He said 74 bids were received.
Mr. Nunnelley, giving the executive directors' report, said the County Officials Legislative Reception will be held February 8th at the Frankfort Convention Center. KACo has a block of rooms reserved at the Capital Plaza Hotel. Notices have been sent to all ten affiliates requesting their participation as a co-sponsor of the event. He said KACo has received 100% of its membership dues for FY 2011/12. He said KACo is working on an Elementary Civic Education project that will be provided to third grade students in Kentucky with plans to disperse this project in time for National County Government Month in April 2012. He said staff is working with the Kentucky Department of Education to set the lesson plan. Mr. Nunnelley recognized the executive directors of the affiliate associations and said he appreciated their help.
Motion made by Ronald Wright, seconded by Tommy Turner, to adjourn the meeting at 2:17 p.m. Motion carried.
