Thursday, June 20, 2019

The Kentucky Association of Counties held a Board of Directors' meeting at 1:00 p.m. on Thursday, June 20, 2019 at 400 Englewood Drive in Frankfort, Kentucky.

The roll was called. The following Directors were present: President Elbert Bennett, Caldwell Co. Magistrate; Scott Alexander, Perry Co. Judge/Executive; Kenny Barger, Madison Co. Clerk; Alex Barnett, Harrison Co. Judge/Executive; Kevin Corman, Jessamine Co. Sheriff; Logan Chick, Logan Co. Judge/Executive; Randy Dial, Casey Co. Judge/Executive; David Fields, Pendleton Co. Judge/Executive (also proxy for Casey Ellis, Owen Co. Judge/Executive); Larry Foxworthy, Fleming Co. Judge/Executive; Gary Gardner, Hart Co. Magistrate; Greg Helton, Knox Co. Circuit Court Clerk; Steve Henry, Webster Co. Judge/Executive; Michael Logsdon, Oldham Co. Magistrate; Mike Malone, Carter Co. Judge/Executive; Gary Moore, Boone Co. Judge/Executive; David Nicholson, Jefferson Co. Circuit Court Clerk; Sue Carole Perry, Shelby Co. Clerk; Jimmy Pollard, Henry Co. Coroner; Phil Sammons, Boyle Co. Magistrate; Victor Slone, Martin 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; Mike Welsh, Metcalfe Co. PVA; and Shane Young, Commonwealth Attorney.

Others present were: Jim Henderson, Deputy Director; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Temple Juett, Director of Insurance; Rich Ornstein, Staff Attorney; Grant Satterly, Director of Financial Services; Christie Dutton, Director of Public Affairs; Jennifer Burnett, Director of Research; Shellie Hampton, Director of Governmental Relations; Scott Martin, Director of Member Services; Kelly Harding, Jerry Pace, and Clint Combs, Peel & Holland/KACo Benefits Group Marketing Agents; Vince Lang, Executive Director, Kentucky County Judge/Executive Association; Mack Bushart, Executive Director, Kentucky PVA Association; JC Young, Executive Director, Kentucky Magistrates & Commissioners Association; Stevie Givens, Butler Co. Magistrate; Jesse Penn, Computer Support Specialist; Beth Pleasant, Administrative Assistant/Travel Coordinator; Bruce Lawson, Senior Accountant; Kim Penske, Russell Co. Treasurer and KACTFO President; Bill Bartleman, McCracken Co. Commissioner; Ellen Williams, KACo Lobbyist; Jeremy Head, Claims Manager; Michael Ray, Loss Control Manager; Susan Riddell, Social Media & Publications Specialist; Jacob Blevins and Lauren Sirls, Interns; Mike Young; and Sonya Chesser, Executive Assistant/Conference & Events Manager.

President Bennett called the meeting to order at 1:03 p.m.

The Pledge of Allegiance was led by President Bennett

The invocation was given by President Bennett.

President Bennett recognized Russell Co. Treasurer Kim Fenske, president of the Kentucky Association of County Treasurers and Finance Officers.

Motion made by Alex Barnett, seconded by Mike Malone to approve the minutes of the March 28, 2019 meeting.  Motion carried.

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

Motion made by Alex Barnett, seconded by Victor Slone, to acknowledge receipt of the financial statement as presented.  Motion carried.

Ms. Basham presented and discussed the proposed budget for FY 2019/20. President Bennett said the KACo Executive Committee has reviewed the proposed budget and recommends its approval.

Motion made by Victor Slone, seconded by Rick Stiltner, to adopt the FY 2019/20 budget as presented. Motion carried.

Ms. Basham presented and discussed the program administration agreements between KACo and the following KACo programs: the Kentucky Association of Counties Insurance Agency, Inc.; the Kentucky Association of Counties Workers Compensation Self-Insurance Fund; the Kentucky Association of Counties All Lines Fund; the Kentucky Association of Counties Leasing Trust; the Kentucky Association of Counties Unemployment Insurance Fund; and the Commonwealth Insurance Company, Inc. The agreements are for a one-year term, beginning July 1, 2019 and ending June 30, 2020.

Motion made by Randy Dial, seconded by Larry Foxworthy, to approve the program administration agreements as presented. Motion carried.

President Bennett thanked Mike Welsh, Rick Stiltner; Mike Malone, Kenny Barger and Scott Alexander for serving on the 2019 KACo Presidential Scholarship Award Committee. He said the committee selected Caldwell High School graduate Parker Parrent to receive KACo's 19th annual scholarship award in the amount of $2,000.00. Ms. Parrent will attend the University of Kentucky in the fall where she will major in psychology.

President Bennett requested approval to ratify resolutions in memory of former Daviess Co. Jailer Arthur Hale; former Lawrence Co. Judge/Executive Clyde Johns, Jr.; former Trigg Co. Circuit Clerk and County Clerk Virginia Alexander; and former Knox Co. Judge/Executive Don I. Bingham.

Motion made by Logan Chick, seconded by Mike Malone, to ratify the resolutions. Motion carried.

President Bennett requested approval to adopt resolutions in memory of former Mason Co. Commissioner and KACo President F. J. "Bear" Finn; former Muhlenberg Co. Sheriff Eddie Perry; and former Cumberland Co. Magistrate Sherman "Tack" Branham.

Motion made by Kevin Corman, seconded by Gary Gardner, to adopt the resolutions.  Motion carried.

Mr. Juett, director of the KACo All Lines Fund, said for FY 2018/19, the Fund has 800 members and 113 counties participating. As of May 30, 2019, premium income totaled $37.5 million; investment income totaled $2.8 million; total income was $40.3 million; total expenses were $39 million; net income total, to date, is $1.3 million; and total program equity is $43.7 million. For FY 2019/20, Mr. Juett stated that the KALF and Workers Comp insurance programs will be submitting quotes to two counties currently not in the KACo insurance program pools. He anticipates the Fund receiving $40 million in premiums in FY 2019/20, which is on par with what was billed last year. He said the overall rates stayed about the same as last year.  New car replacement coverage has been added to the FY 2019/20 policy and additional coverages are being discussed.  The board is reviewing a grant program to allow members to apply for limited financial assistance to purchase equipment, training or consulting services, which will help reduce losses to the program. This is designed to be a win-win strategy that will increase incentives to promote a safety culture within our counties.

Grant Satterly, director of financial services, provided an update on the current market trends.  He said the various KACo Financial Services programs have completed 70 financings in the first eleven months of this fiscal year for a total of $41.2 million. In total, 15 financings were done through the KACo Finance Corporation Bond Pool.  Each of these borrowers, many of which were political subdivisions, were able to borrow at lower rates than they would have expected due to the AA- status they achieved by participating in the bond pool. He said his department is currently working on more than $44 million in proposed capital projects.

Squire Sammons, chairman of the KACo Unemployment Insurance Fund, said the Fund has 477 members, including 114 fiscal courts, with net profits totaling $938,000 as of May 31, 2019. Premiums billed for calendar year 2019 totaled $2.5 million of which $1.5 million has been collected to date.  He said members have until July 31^st to pay their premiums.  The first quarter claims totaled $570,926, which is a 59 percent increase as compared to the first quarter of 2018.  This increase is due to it being an impact year given the election cycle. He said total member's equity is $12.8 million and is financially secure to handle the increase in claims due to the impact year.

Squire Logsdon, board member of the KACo Workers Compensation Fund, said for FY 2018/19, the Program has roughly 600 members with 30,000 employees and $791 million in payroll.  As of May 30, premium income totaled $24 million; investment income totaled $3.6 million; total income was $27.6 million; total expenses were $26 million; total net income, to date, is $1.6 million; and total program equity is $43.5 million. For FY 2019/20, he anticipates maintaining approximately the same number of members as the prior fiscal year. Approximately $23 million in premiums have been billed, which is roughly 87 percent of the amount billed last previous fiscal year. He said members are receiving the same coverage for less money due to a combination of good performance and a $2 million rate reduction that the board voted for last year as part of an overall $5 program dividend. In August, the Program will distribute the remaining $3 million dividend to the eligible recipients.  Squire Logsdon said the Program will have a nurse triage service in place on July 1, 2019, which means nurses will receive the first report of injury to help guide treatment in the early stages of a claim. This will be a great benefit for members and injured workers.  The board is also reviewing a grant program to allow members to apply for some limited financial assistance to purchase equipment, training or consulting services, which will help reduce losses to the program. This is designed to be a win-win strategy that will increase incentives to promote a safety culture within our counties.

Squire Givens, board member of the KACo Insurance Agency health insurance program, provided a summary of the KACo Benefits Program and Financial Performance through June 13, 2019. Effective July 1, 2019, the Agency will add five new accounts; one account was terminated. The Agency received a 12.9% increase in benefits commission for FY 2018/19 as compared to FY 2017/18.

President Bennett, chairman of the KACo Legislative Committee, provided the governmental relations report. He said staff have given presentations at three KACo Leadership Institute classes on legislative process and the importance of county official advocacy. He provided an update on the special session that the Governor plans to call for the purpose of the pension bill and reminded the affiliates to firm up their legislation and stances on issues prior to the next legislative committee meeting in July.

Squire Bennett requested approval of the following appointments:

Reappoint Jefferson Co. Circuit Clerk David Nicholson, Oldham Co. Magistrate Michael Logsdon and Warren Co. Attorney Amy Milliken as the KACo representatives to the NACo Board of Directors for a one-year term to begin July 2019 and to expire at the annual NACo conference in July of 2020.

Motion made by Phil Sammons, seconded by Michael Logsdon, 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 Michael Logsdon, seconded by Rick Stiltner, to reappoint Warren Co. Attorney Amy Milliken as the KACo representative to the NACo Board of Directors for a one year term.  Motion carried.

Motion made by Phil Sammons, seconded by David Voegele, to reappoint Oldham Co. Magistrate Michael Logsdon as the KACo representative to the NACo Board of Directors for a one year term.  Motion carried.

Reappoint Owen Co. Judge/Executive Casey Ellis and Caldwell Co. Magistrate Elbert Bennett to the KACo Workers Compensation Fund Board for a three year term to begin July 1, 2019 and to expire June 30, 2022.

Motion made by Michael Logsdon, seconded by Victor Slone, to reappoint Owen Co. Judge/Executive Casey Ellis and Caldwell Co. Magistrate Elbert Bennett to the KACo Workers Compensation Fund for a three-year term.  Motion carried.

Appoint Carter Co. Judge/Executive Mike Malone, Christian Co. Jailer Brad Boyd, Oldham Co. Judge David Voegele, Laurel Co. Attorney J. L. Albright, and Madison Co. Clerk Kenny Barger to the KACo Nominating Committee for 2019.

Motion made by Michael Logsdon, seconded by Alex  Barnett, to appoint Carter Co. Judge/Executive Mike Malone, Christian Co. Jailer Brad Boyd, Oldham Co. Judge David Voegele, Laurel Co. Attorney J. L. Albright, and Madison Co. Clerk Kenny Barger to the KACo Nominating Committee for 2019.  Motion carried.

Mr. Henderson, giving the executive director's report, expressed his appreciation and gratitude for the opportunity to serve as executive director/CEO. He recognized staff in attendance and complimented the great team of professionals that work for KACo.  His vision is to focus on how KACo can better serve the counties. Mr. Henderson will provide a written quarterly report to the board as well as a monthly email update following each executive committee meeting. He said staff is working to create a county employment position salary database.  A salary survey will be sent out soon and he asked that each one respond. Mr. Henderson is seeking input on another survey in which the board will soon receive pertaining to what information the board would like communicated to them that they may not currently receive or don't receive as often as desired and what information do they receive that is less relevant or unnecessary. The survey will also include questions about the top three issues that counties in their area face and the top three issues that their county faces. He said a strategic planning session with the board will be planned at a later date. Mr. Henderson will be traveling to each ADD region as part of a listening tour to meet with elected county officials across the state to discuss their concerns about issues of importance to their office and county. Each session will be hosted by a KACo Board member representing their ADD region. Letters of intention for KACo 2^nd vice president will be available on KACo's website tomorrow.

Ms. Perry asked for an update on the opportunity to host a future National Association of Counties (NACo) conference in Jefferson County. Mr. Nicholson said due to the financial requirements it was not beneficial to commit at this time.

Judge Moore said he will become president-elect of NACo at this year's NACo Conference in July and thanked each one for helping him to get elected at the annual NACo Conference last year. He encouraged the board to attend next year's annual conference in Orlando in July 2020 when he becomes president. He said the incoming NACo president will be working on appointments to NACo's committees and asked the board to let him know if they would like to serve on a committee.

The next regularly scheduled board meeting will be held September 26^th at 1:00 p.m.

President Bennett said a note burning ceremony is being planned in conjunction with the September board meeting. He also said KACo is gearing up for its 45^th Annual Conference & Exposition and encouraged the board to let staff know of specific topics and issues to be considered.

Motion made by Sue Carole Perry, seconded by Victor Slone to adjourn the meeting at 2:02 p.m.  Motion carried.