Thursday, June 21, 2018

The Kentucky Association of Counties held a Board of Directors' meeting on Thursday, June 21, 2018 at 400 Englewood Drive in Frankfort, Kentucky.

The roll was called. The following Directors were present: President David Nicholson, Jefferson Co. Circuit Court Clerk; Alex Barnett, Harrison Co. Judge/Executive; Bill Bartleman, McCracken Co. Commissioner; Courtney Baxter, Commonwealth Attorney; Elbert Bennett, Caldwell Co. Magistrate; Dennis Brooks, Wolfe Co. Judge/Executive; Jessamine Co. Sheriff Kevin Corman; Chuck Dills, Grant Co. Sheriff; David Fields, Butler Co. Judge/Executive; David Fields, Pendleton Co. Judge/Executive; Larry Foxworthy, Fleming Co. Judge/Executive; Steve Gold, Henderson Co. Attorney; Jeff Hancock, Franklin Co. Clerk; Steve Henry, Webster Co. Judge/Executive; Gary Moore, Boone Co. Judge/Executive; Sue Carole Perry, Shelby Co. Clerk; Vincent Riggs, Fayette Co. Circuit Court Clerk; Eddie Rogers, Taylor Co. County Judge/ Executive; John Settles, Washington Co. Judge/Executive; Rick Stiltner, Menifee Co. Judge/Executive; Terry Stringer, Livingston Co. Magistrate; Reagan Taylor, Madison Co. Judge/Executive; Bruce Todd, Henderson Co. Magistrate; Carl Tolliver, Boyd Co. Commissioner; Steve Tribble, Christian Co. Judge/Executive; and Mike Welsh, Metcalfe Co. PVA.

Others present were: Brian Roy, Executive Director/CEO; Jim Henderson, Deputy Director; Karen Basham, Chief Financial Officer; Roger Recktenwald, Director of Research & Planning; Shellie Hampton, Director of Governmental Affairs; Tim Sturgill, General Counsel; Jesse Penn, Computer Support Specialist; Mark Miller, Director of Insurance; Rich Ornstein, Staff Attorney; Grant Satterly, Director of Financial Services; Christie Dutton, Director of Public Affairs; Bruce Lawson, Senior Accountant; Jennifer Burnett, Director of Research; Marie Skinner, Accountant; Lonnie Campbell, Assistant Director of Financial Services; Susan Riddell, Publications and Social Media Specialist; Kelly Harding and Clint Combs, Peel & Holland/KACo Benefits Group Marketing Agents; Vince Lang, Executive Director, Kentucky County Judge/Executive Association; Jerry Wagner, Executive Director, Kentucky Sheriffs Association; Mack Bushart, Executive Director, Kentucky PVA Association; JC Young, Executive Director, Kentucky Magistrates & Commissioners Association; Bill May, Executive Director, Kentucky County Clerks Association; Stevie Givens, Butler Co. Magistrate; David Livingston, Scott Co. Magistrate; Glenda Harper, Caldwell Co. treasurer and president of the Kentucky Association of County Treasurers/Finance Officers; and Sonya Chesser, Executive Assistant.

President Nicholson called the meeting to order at 1:02 p.m.

Invocation was given by Squire Todd followed by the Pledge of Allegiance by Squire Bennett.

President Nicholson asked all board members, staff and guests to introduce themselves.

President Nicholson recognized Glenda Harper, president of the Kentucky Association of County Treasurers/Finance Officers and KACo Adjunct Member.

Motion made by Alex Barnett, seconded by Carl Tolliver, to approve the minutes of the March 22, 2018 meeting.  Motion carried.

Ms. Basham presented and discussed the financial statement for period ending May 31, 2018.  Judge Settles noted that the Mr. Roy was invited to attend the KACo Audit Committee meeting today to answer some questions. He said it was a lengthy and thorough meeting and he appreciated Mr. Roy's attendance and Ms. Basham for her work. Likewise, President Nicholson said he appreciated the work of the Audit Committee.

Motion made by John Settles, seconded by Dennis Brooks, to acknowledge receipt of the financial statement as presented.  Motion carried.

Ms. Basham presented and discussed the FY 2018/19 proposed budget as recommended by the KACo Executive Committee and reviewed today by the KACo Audit Committee.

Motion made by Alex Barnett, seconded by Eddie Rogers, to adopt the FY 2018/19 budget as presented.  Motion carried.

Ms. Basham provided an update on the contributions to assist with legal costs related to the protection of the pension.  She said payments have been received from the following: County Clerks Association - $10,000; Magistrates/Commissioners Association - $5,000; Circuit Court Clerks Association - $5,000; Sheriffs Association - $5,000; and Jailers Association - $5,000.
Ms. Basham presented and discussed the program administration agreements between KACo and the following KACo programs:  the Insurance Agency, the Workers Compensation Fund, the All Lines Fund, the Leasing Trust, Unemployment Insurance Fund; the Commonwealth Insurance Company, Inc. The agreements are for a one-year term, beginning July 1, 2018 and ending June 30, 2019.

Motion made by Terry Livingston, seconded by Rick Stiltner, to approve the program administration agreements as presented.  Motion carried.

President Nicholson thanked Orbrey Gritton, Mike Welsh, Rick Stiltner; Steve Gold; and Vince Riggs for serving on the 2018 KACo Presidential Scholarship Award Committee. He said the Committee selected Ballard High School graduate Nicholas Gudgel to receive KACo's 18th annual award in the amount of $2,000.00. Nicholas will attend the University of Kentucky in the fall where he will major in psychology.

President Nicholson requested approval to ratify resolutions in memory of former Franklin Co. Magistrate William E. "Bill" Lewis; Simpson Co. PVA Pamela Womack; former Mason Co. J/E Billy Ross; former Marion Co. Sheriff Carroll Kirkland; Morgan Co. Magistrate Stanley Riggsby; former Ballard Co. J/E Bob Buchanan; and William Roy, Sr.

Motion made by Steve Gold, seconded by John Settles, to ratify the resolutions. Motion carried.

President Nicholson requested approval to adopt resolutions in memory of former Leslie Co. Sheriff Fred Davidson and former KACo Executive Director Fred Creasey.

Motion made by Terry Stringer, seconded by Alex Barnett, to adopt the resolutions. Motion carried.

President Nicholson asked for a moment of silence in memory of those individuals.

President Nicholson requested approval of a resolution honoring former Jefferson Co. Judge/Executive and United States Senator Mitch McConnell for reaching a milestone on Tuesday to become the longest-serving Republican leader in the chamber's history.

Motion made by Gary Moore, seconded by Steve Gold, to approve a resolution honoring United States Senator Mitch McConnell for his tenure as the longest-serving Republican leader.  Motion carried.

President Nicholson said KACo's celebrated its 44th birthday on Tuesday.

Squire Todd, board member for the KACo All Lines Fund, provided an update on the Program. As of May 31, 2018 total income was $40.8 million; total expenses were $40 million; investments totaled $89.1 million; new claims totaled 2,232; and claim payments totaled $21.7 million.  He said the Fund retained 100% participation for FY 2018/19.

Sue Carole Perry, chair of the KACo Leasing Trust, reported that the various lending programs have completed 91 financings for 2018 for a total of $81,129,363 with 32 of those financings being done through the KACo Finance Corporation bond pool.  She said the newest program in KACo's Financial Services Division is the "Your Kentucky Home" Down Payment Assistance Program.  To date this program has assisted 154 home buyers with the gift of a down payment to purchase their homes valued at over $20,500,000. Ms. Perry also acknowledged her appreciation for today's board orientation.
Judge Foxworthy, board member of the KACo Unemployment Insurance Fund, said invoices for calendar year 2018 were mailed out in February. The Fund has renewed all 479 accounts, including 114 fiscal courts. To date, 1.7 million has been collected of the $2.7 million that was billed.  He said $862,000 in claims have been paid out this fiscal year, which is the lowest in 16 years.  The lower claims have allowed the Fund to decrease rates and as a result, premium billed is down.  The Fund's equity is also in very good shape at just under $12 million, which will allow us to absorb some bad years and also allow us to keep premiums low as long as the claims stay manageable.
Judge Moore, board member of the KACo Workers Compensation Fund, said as of May 31, 2017, total income was $28.2 million; total expenses were $22.8 million; investments totaled $101.4 million. There have been 1,574 new claims with claims payments totaling $11.3 million for the year.  He said the Fund retained 100% participation for FY 2018/19.

Mr. Harding provided an update on the KACo Insurance Agency health insurance program, which included a summary of the KACo Benefits Program and Financial Performance through June 2018. The Program has 184 members made up of 54 fiscal courts, 67 libraries and 63 other political subdivisions for a total annualized premium of $37,302,185 covering 5,158 lives.  He said two new groups were added and the program continues to be strong. He provided an update on new federal guidelines to expand association health plans.  He also provided an update on data analytics and the benefits that it will provide to the Association.

President Nicholson, giving an update on governmental relations, thanked everyone for their work and support during the 2018 session. He said the two lunches provided to members of the General Assembly earlier this year were a huge success and well received. He provided an update on the bills that passed during the session and highlighted legislative issues during the interim.

Ms. Hampton said the KACo Legislative Committee chairs have a tough job and given the past legislative sessions, she offered thanks and appreciation to President Nicholson for his dedication, loyalty and for being a true leader. On behalf of KACo's legislative committee and staff, she presented him with a plaque in token of appreciation for his service as legislative chair.

Mr. Recktenwald provided a brief update on infrastructure planning activities.

Ms. Dutton said KACo's legislative website, "On The Floor", which was created on January 19th, has had 12,700 views.  She encouraged the board to like KACo's Facebook and twitter pages.

Mr. Roy, giving the executive director's report, said the KACo Legislative Committee members do an excellent job and that he appreciates their service.  He thanked the board members for attending the board orientation this morning. He introduced Ms. Burnett, KACo's director of research, to the board. He presented a map, which she compiled, that showed 21 staff visiting 97 counties this past year. He also provided an update on member services. He said KACo's 44th annual conference will be held November 14-16 at the Lexington Convention Center. Anyone interested in running for KACo 2nd Vice President will be able to find the information on KACo's website after today. The information will also be included in the next issue of County Line. Note:  No more than one member of the Executive Committee shall be from the same county and no more than two members of the Executive Committee shall be members of the same affiliate association. During the upcoming term, there will be two judge/executives, one magistrate, and one circuit clerk returning to the Executive Committee from Boone, Caldwell, Jefferson and Madison Counties. Deadline to submit the Letter of Intention is October 15th. Anyone interested in running for a positon on the KACo Board representing an Area Development District for the upcoming year, please see the KACo Nominating Committee.  In August, the Committee will begin selecting the candidates; the deadline to submit candidates to the KACo office is September 1. Ballots will go out in mid-September to all elected officials within the respective ADD regions and ballots must be received in this office by October 30. He said Daviess Co. Sheriff Keith Cain was elected National Sheriff of the Year. The annual NACo Conference will be held July 13-16 in Nashville, TN with Boone Co. Judge/Executive Gary Moore running for 2nd Vice President.  Counties who were non-members of NACo last year, will receive a one free registration to attend this year's annual NACo Conference. He said Fred Creasey, KACo's Executive Director from 1977-88, passed away on June 10th at the age of 83. Mr. Roy said Mr. Creasey was committed and instrumental with the formation of some of its program and would be missed. Mr. Roy called on Judge Moore to give an update on his campaign for NACo 2nd Vice President.

Judge Moore said it is an honor to be a candidate for the national office.  He said KACo has not had a NACo President since 1981 when Kenton Co. Commissioner Bob Aldemeyer served.  He said the KACo team and the many county officials that have assisted him with the campaign have been amazing and he appreciates their efforts.

President Nicholson asked the affiliate directors and presidents to let Ms. Chesser know the dates and locations of their newly elected official trainings.  He congratulated Mr. Young on the new addition to his family in December. He said the KACo Executive Committee is holding quarterly meetings across the state and noted that the next meeting is scheduled for July 27th in Caldwell County.

President Nicholson said Kentucky gets three appointments to the National Association of Counties (NACo) Board for the 2018-2019 term due to being a 100% membership state, and based on the weighted vote formula, Kentucky is now also a Top 12 state. He deferred the three recommendations to the NACo Board to president-elect Elbert Bennett.  Squire Bennett requested approval of the following appointments:

Reappoint Boone Co. Judge/Executive Gary Moore and Jefferson Co. Circuit Clerk David Nicholson as the KACo representatives to the NACo Board of Directors for a one-year term to begin July 2018 and to expire at the annual NACo conference in July of 2019 and to appoint Warren Co. Attorney Amy Milliken as the KACo representative to the NACo Board of Directors for a one-year term to begin July 2018 and to expire at the annual NACo conference in July of 2019.

Motion made by Eddie Rogers, seconded by Dennis Brooks, to reappoint Boone Co. Judge/Executive Gary Moore as the KACo representative to the NACo Board of Directors for a one year term.  Motion carried.

Motion made by Dennis Brooks, seconded by Vince Riggs, to reappoint Jefferson Co. Circuit Clerk David Nicholson as the KACo representative to the NACo Board of Directors for a one year term.  Motion carried.

Motion made by Steve Gold, seconded by John Settles, to appoint Warren Co. Attorney Amy Milliken as the KACo representative to the NACo Board of Directors for a one year term.  Motion carried.

President Nicholson requested approval of the following appointments:

Reappoint reappoint Carlisle Co. Judge/Executive Greg Terry and Boone Co. Judge/Executive Gary Moore to the KACo Workers Compensation Fund Board for a three year term to begin July 1, 2018 and to expire June 30, 2021.

Motion made by Carl Tolliver, seconded by Alex Barnett, to reappoint Carlisle Co. Judge/Executive Greg Terry and Boone Co. Judge/Executive Gary Moore to the KACo Workers Compensation Fund for a three-year term.  Motion carried.

Appoint Fleming Co. Judge Larry Foxworthy, Floyd Co. Magistrate John Goble, Franklin Co. Clerk Jeff Hancock, Metcalfe Co. PVA Mike Welsh and Christian Co. Jailer Brad Boyd to the KACo Nominating Committee for 2018.

Motion made by Sue Carole Perry, seconded by Eddie Rogers, to appoint Fleming Co. Judge Larry Foxworthy, Floyd Co. Magistrate John Goble, Franklin Co. Clerk Jeff Hancock, Metcalfe Co. PVA Mike Welsh and Christian Co. Jailer Brad Boyd to the KACo Nominating Committee for 2018.  Motion carried.

The next scheduled board meeting will be held September 27th at 1pm.

Motion made by Dennis Brooks, seconded by Eddie Rogers, to adjourn the meeting at 2:12 p.m.  Motion carried.