Thursday, September 26, 2019

The Kentucky Association of Counties held a Board of Directors' meeting at 1:00 p.m. on Thursday, September 26, 2019 at 400 Englewood Drive in Frankfort, Kentucky.

The roll was called. The following Directors were present: President Elbert Bennett, Caldwell Co. Magistrate; Jodi Albright, Laurel Co. Attorney; Scott Alexander, Perry Co. Judge/Executive; Alex Barnett, Harrison Co. Judge/Executive; Brad Boyd, Christian Co. Jailer (also proxy for Steve Tribble, Christian Co. Judge/Executive); Todd Cooper, Ballard Co. Judge/Executive; Kevin Corman, Jessamine Co. Sheriff; Randy Dial, Casey Co. Judge/Executive; Larry Foxworthy, Fleming Co. Judge/Executive; Gary Gardner, Hart Co. Magistrate; John Gardner, Commonwealth Attorney; Gary Ginn, Fayette Co. Coroner; Orbrey Gritton, Anderson Co. Judge/Executive; Jeff Hancock, Franklin Co. Clerk; Greg Helton, Knox Co. Circuit Court Clerk (also proxy for Martin Hatfield, Pulaski Co. Attorney); Steve Henry, Webster Co. Judge/Executive; Michael Logsdon, Oldham Co. Magistrate; Mike Malone, Carter Co. Judge/Executive; Amy Milliken, Warren Co. Attorney; David Nicholson, Jefferson Co. Circuit Court Clerk; Sue Carole Perry, Shelby Co. Clerk; Phil Sammons, Boyle Co. Magistrate; Rick Stiltner, Menifee Co. Judge/Executive; Reagan Taylor, Madison Co. Judge/Executive; Tommy Turner, LaRue Co. Judge/Executive; David Voegele, Oldham Co. Judge/Executive; and Mike Welsh, Metcalfe Co. PVA.

Others present were: Jim Henderson, Executive Director/CEO; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Shellie Hampton, Director of Governmental Relations; Roger Recktenwald, Director of Infrastructure Planning & IT; Jennifer Burnett, Director of Research; Scott Martin, Director of Member Services; Christie Dutton, Director of Public Affairs; Vince Lang, executive director, Kentucky County Judge/Executive Association; JC Young, executive director, Kentucky Magistrates & Commissioners Association; Jeremy McCann, Ryan Siemens and Jon Sharp, KACo Enterprise Computer Software Developers, Kyle Hutcherson, Network Engineer; Crystal Hellard, Litigated Claims Specialist; Kris Dunn, Underwriting Manager; Dwayne Litton and Steve Clary, Safety & Loss Control Specialists; Michael Ray, Safety & Loss Control Manager; Jesse Penn, Computer Support Specialist; Marie Skinner, Accountant/U.I. Manager; Bruce Lawson, Senior Accountant; Grant Satterly, Director of Financial Services; Lonnie Campbell, Assistant Director of Financial Services; Rich Ornstein, Staff Attorney; Ellen Williams, KACo Lobbyist; Macy Thompson, Customer Service Representative; Beth Pleasant, Administrative Assistant/Travel Coordinator; Steve Givens, Butler Co. Magistrate; Kim Fenske, Russell Co. Treasurer and KACTFO President; Clint Combs, Peel & Holland Marketing Agent; Ed Bertram, Facilities Manager; Jeremy Head, Claims Manager; Dianne Andrews, Legislative & Research Assistant; Pamela Bollinger, Administrative Assistant; Lauren Sirls, KACo Intern; Dana Nickels, executive director, Kentucky Public Health Association; and Sonya Chesser, Executive Assistant/Events Manager.

President Bennett called the meeting to order at 1:22 p.m.

President Bennett recognized new board members: John Gardner, president of the Kentucky Commonwealth Attorney Association and Gary Ginn, president of the Kentucky Coroners Association.

Motion made by Alex Barnett, seconded by Orbrey Gritton to approve the minutes of the June 20, 2019 meeting.  Motion carried.

Ms. Basham presented and discussed the financial statement for period ending August 31, 2019.

Motion made by Jeff Hancock, seconded by Larry Foxworthy, to acknowledge receipt of the financial statement as presented.  Motion carried.

Ms. Basham presented and discussed the draft audited financial statement for years ended June 30, 2019 and 2018 as prepared by MCM CPAs & Advisors. She said Becky Phillips with MCM, CPAs presented the draft audit to the KACo Audit Committee on Tuesday and it was accepted. The KACo Executive Committee reviewed the draft audit this morning and acknowledged receipt of the audit.

Motion made by Alex, Barnett, Orbrey Gritton to acknowledge receipt of the audited financial statement as presented.  Motion carried.

President Bennett requested approval to ratify resolutions in memory of former Kenton County Judge/Executive Clyde Middleton; former Marshall County Sheriff Jerry English; former Perry County Sheriff Pearl Couch; Grayson County Magistrate Robby Higdon; former Rockcastle Co. Judge/Executive and Circuit Court Clerk Money Ed Cummins; Pendleton Co. Jailer Ken Kells; Todd Co. Clerk Leslie Cunningham; Metcalfe Co. Sheriff Ricky Brooks; and former Perry Co. Magistrate and former KACo President Freddie Combs.

Motion made by Mike Welsh, seconded by Randy Dial, to ratify resolutions as presented.  Motion carried.

President Bennett requested approval of resolutions in memory of former Logan Co. Judge/Executive Johnny Guion, III and former Commonwealth Attorney Allen Trimble.

Motion made by Rick Stiltner, seconded by Larry Foxworthy, to approve the resolutions as presented.  Motion carried.

Mr. Ginn noted that former Gallatin Co. Coroner Jack Lawler had passed and that a resolution be sent to the family.

President Bennett requested approval for Sonya Chesser, Crystal Hellard, and Kris Dunn, with alternate of Jennifer Burnett, to serve as the credentials committee for the election of KACo 2nd Vice President at the 2019 Annual KACo Conference & Exposition. He said the deadline to submit a Letter of Intention has passed with one Letter of Intention being received from Warren Co. Attorney Amy Milliken.

Motion made by Orbrey Gritton, seconded by Larry Foxworthy, to approve Sonya Chesser, Crystal Hellard, and Kris Dunn, with alternate of Jennifer Burnett, to serve as the credentials committee for the election of KACo 2nd Vice President at the 2019 Annual KACo Conference & Exposition.  Motion carried.

President Bennett thanked Carter Co. Judge/Executive Mike Malone, Christian County Jailer Brad Boyd, Oldham Co. Judge/Executive David Voegele, Laurel Co. Attorney J. L. Albright and Madison Co. Clerk Kenny Barger for volunteering to serve on the KACo Nominating Committee. The Committee compiled a list of candidates to run from each ADD district. The board ballots were mailed out last week to all elected officials whose counties have paid dues for the current fiscal year and all counties have paid their dues. President Bennett requested approval for Jennifer Rhoades to serve as the disinterested party to open the ballots and tabulate the votes for each seat on the KACo Board representing the ADD regions for the upcoming term.
Motion made by Scott Alexander, seconded by Amy Milliken, to approve Jennifer Rhoades as the official vote tabulator.  Motion carried.

Squire Logsdon, board member of the KACo Workers Compensation Fund, said the Program had a great renewal season adding five accounts and losing six, all of which were small political subdivisions with the exception of Pike County. The Program will be adding Pulaski County as a new member on Oct. 1. The Program has 661 members with 30,064 employees, and $796 million in payroll. He said the Program should receive approximately $22.7 million in premiums this year, which is roughly 87% of what was received during the previous fiscal year. The lower amount is due to a significant rate reduction resulting from reduced losses overall and the board voted to put $2 million toward the reduction of premiums. So essentially, the members are receiving the same coverage this year for approximately 13% less than they paid last year. He said staff has completed the delivery of all checks to members for the dividend that the board voted for last year. Between the dividend and the premium reduction, a total of $5 million was given back to the members. The Nurse Triage program was introduced to the members in July. This program allows injured workers to speak with a registered nurse immediately after being injured to determine what treatment, if any, is needed and appropriate. The goal of the program is to provide easy access to medical information for the employee while eliminating unnecessary visits to the emergency room. Last month, the utilization rate was 75% for an estimated savings to the program of approximately $170,000 in August alone, which paid for the program in one month. The Program, in conjunction with the KALF program, also has rolled out a new grant program that allows members to apply for a grant up to $10,000 for equipment, training or consulting services designed to reduce losses to the Workers' Compensation and/or KALF Programs. To date, 30 applications have been received and the application period will remain open until October 15. After that date, the loss control team will meet and determine which proposals offer the greatest opportunity for controlling losses to the program.

Judge Gritton, board member of the KACo All Lines Fund, said the Fund had a good renewal for the 2019-20 policy year with overall rates staying about the same as last year. Approximately $41 million in premiums are to be received this fiscal year, which is on par with last year. The Fund added nine accounts and lost six for a net gain of three accounts bringing the number of total members to 813 for FY 2019/20. The Program will be adding Pulaski County as a new member on Oct. 1. He said the Fund had added two additional coverages for this year including: New Car Replacement coverage replaces a totaled vehicle which is less than 2 years old and has less than 40,000 miles with a new vehicle and Non-Monetary Legal Defense covers up to $50,000 in legal defense costs for injunctive relief claims or other claims that are not otherwise covered. The Fund has hired a firm to conduct property appraisals at no cost to members for property over $100,000 in value. He said the appraisals ensure that all buildings are insured at their appropriate replacement value and is done every three years or so to keep values updated appropriately. He said staff is currently interviewing to fill a new loss control position for a Law Enforcement Specialist. This person will be responsible for working with the sheriffs and jailers to develop strategies for reducing losses in the law enforcement area. This is our largest loss category and accounts for approximately 40% of our overall claims.

Grant Satterly, director of financial services, said the program has seen an increase in volume in the traditional leasing program with eight loans, eleven loans in the internal loan pool and eight in the bond pool for a total of 27 financings in 55 working days. He said the internal loan pool has $3.5 million available, and last month, the board approved lowering the interest rate by 1%.  Two bond issues sold recently including eight customers. He said the lowest interest rate for a seven year bond was 1.7% and the highest rate for a twenty-eight year loan was 2.6%. The program also issued a taxable bond for two customers for a fixed term for fifteen years borrowed at 2.65%.  He said the program is wrapping up its annual audit.

Squire Sammons, chairman of the KACo Unemployment Insurance Fund, said the Fund has 476 members, including 114 fiscal courts, an annual surplus of $89,193.78 as of August 31, 2019. Premiums billed for calendar year 2019 totaled $2.5 million of which all has been collected except one outstanding account. The first quarter claims totaled $537,830 and member's equity is at $13.1 million resulting in a financially secure position to handle increase in claims due to the impact year.
Squire Givens, board member of the KACo Insurance Agency, provided a summary of the KACo Benefits Program and performance through September 7, 2019. He said there are 194 entities participating in the health insurance program covering 5,421 lives for a total annualized premium of over $40 million. New accounts this quarter include an additional 408 employees including Magoffin, McCracken, Metcalfe and Muhlenberg County Fiscal Courts with three account leaving the program.  He said commissions paid to KACo for FY 2019/20 total $106,169 as compared to $90,764 in FY 2018/19 and $76,656 in FY 2017/18.  From October 2018 to September 2019, the Agency has received benefit commissions totaling $394,700. He said the program remains strong and continue to look at bringing new products to the members.
President Bennett provided the governmental relations report. He said jail overcrowding and the state's incarceration rates as a whole has been a primary focus for the last two Local Government committee meetings. Christian County Jailer Brad Boyd, president of the KY Jailers Association, and Oldham County Jailer Mike Simpson testified at the Interim Joint Committee on Local Government this month in response to the Herald-Leader news articles concerning county jail overcrowding. Campbell County Judge/Executive Steve Pendery testified as well on the impact of jail costs on a county's budget. Since the last board meeting, KACo Legislative Committee has met twice.  He said he passed the gavel to Judge Moore in July, and as the new chairman, Judge Moore has challenged the committee to become more proactive in filing more of our own bills on issues we need to lead on for counties. Other topics being discussed this interim include: transportation funding; the 2020-2022 state budget; coal severance funding; bail reform legislation; and interim Task Forces discussing electronic recording of official documents, water and wastewater, and area development districts; and ambulance service funding. The 2020 session begins Tuesday, January 7th and is the sixty-day budget session.

Mr. Henderson, giving the director's report, said he is providing monthly reports electronically to the board and, if anyone is not receiving those reports, to let him know. The 45th Annual KACo Conference & Exposition will be held Oct. 23-25 at the Galt House Hotel in Louisville and includes a jam-packed agenda, having to turn away several requests to speak. He said the exhibit hall is already sold out and we have received over $100,000 in sponsorships to date. He said an annual board orientation will be scheduled in the near future. The annual County Officials Legislative Reception will be held February 20th at the Kentucky History Center. He provided a map highlighting the responses received from the counties concerning a salary survey.  He said seven regional listening tours have been conducted to date; the remaining will be conducted by the end of the year. Mr. Henderson has visited 21 counties since June and staff has visited another 30 counties to date. He said KACo will be hiring a law enforcement specialist in its insurance department to work directly with sheriff offices and county police departments. He said Jerry Wagner, executive director of the Kentucky Sheriffs Association and Mark Filburn, law enforcement specialist for the Kentucky League of Cities and former DOCJT Commissioner were on the panel to interview seven candidates. He said the board will be receiving KACo logo shirts and asked the board to complete the order form for color and size. He thanked the board for the opportunity to serve as executive director/CEO. He asked the staff to stand and be recognized for the work they do.

President Bennett said this year has been rewarding and challenging and that he has learned so much about counties. This year past year has reaffirmed how much counties need and benefit from KACo's programs and services. He said it has been an honor to serve as president.

The next regularly scheduled board meeting will be held December 19th at 1:00 p.m.

Motion made by Michael Logsdon, seconded by Rick Stiltner, to adjourn the meeting at 2:07 p.m.  Motion carried.