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The Kentucky Association of Counties held a Board of Directors' meeting at 1:00 p.m. on Thursday, December 19, 2019 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Directors were present: President Gary Moore, Boone Co. Judge/Executive; Jodi Albright, Laurel Co. Attorney; Hollis Alexander, Trigg Co. Judge/Executive; Alex Barnett, Harrison Co. Judge/Executive; Elbert Bennett, Caldwell Co. Magistrate; Don Blevins, Fayette Co. Clerk; Logan Chick, Logan Co. Judge/Executive; Kevin Corman, Jessamine Co. Sheriff; Randy Dial, Casey Co. Judge/Executive; Chuck Dills, Grant Co. Judge/Executive; Casey Ellis, Owen 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; Greg Helton, Knox Co. Circuit Court Clerk; Steve Henry, Webster Co. Judge/Executive; John Hunt, Floyd Co. Sheriff; Kenny Imes, Calloway 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; John Phelps, Cumberland Co. Judge/Executive; 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; Tim Sturgill, General Counsel; Temple Juett, Director of Insurance; Karen Basham, Chief Financial Officer; 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; Rich Ornstein, Staff Attorney; Bruce Lawson, Senior Accountant; Marie Skinner, Accountant/UI Manager; Jesse Penn, Computer Support Specialist; Beth Pleasant, Administrative Assistant/Travel Coordinator; Vince Lang, Executive Director, Kentucky County Judge/Executive Association; Steve Givens, Butler Co. Magistrate; Kim Fenske, Russell Co. Treasurer and KACTFO President; Tabatha Clemons, Grant Co. Clerk; Jerry Wagner, Executive Director, Kentucky Sheriffs Association; Lauren Hogan and Dana Nickels, Kentucky Health Departments Association; Todd Ruckel, Lewis Co. Judge/Executive; Bill Burch, Lobbyist, Kentucky Sheriffs Association; Lauren Sirls, KACo Intern; JC Young, Executive Director and Lauren Germond, Association Manager, Kentucky Magistrates & Commissioners Association; Kelly Harding, Peel & Holland/KACo Benefits Group; and Sonya Chesser, Executive Assistant/Events Manager.
President Moore called the meeting to order at 1:04 p.m.
Motion made by Alex Barnett, seconded by Orbrey Gritton to approve the minutes of the September 26, 2019 meeting. Motion carried.
Judge Taylor gave the invocation and led the Pledge of Allegiance.
President Moore installed the following board members who were unable to attend the swearing in ceremony on October 24th during the 45th Annual KACo Conference & Exposition: Greg Helton, J. L. Albright, John Gardner, John Phelps, Don Blevins, Rick Stiltner, and Mike Malone.
Motion made by Orbrey Gritton, seconded by Alex Barnett, to approve the minutes of the September 26, 2019 meeting as presented. Motion carried.
Ms. Basham presented and discussed the financial statement for period ending November 30, 2019.
Motion made by Alex Barnett, seconded by Tommy Turner, to acknowledge receipt of the financial statement as presented. Motion carried.
President Moore requested approval to ratify resolutions in memory of former Muhlenberg Co. Coroner and State Representative Charles Nelson, former Daviess Co. Jailer and Sheriff Charles Norris, former Gallatin Co. Coroner Jasper "Jack" Lowder, former Laurel Co. Sheriff Louis "Buster" Smith, and former Boone Co. PVA Chester Henderson and approve resolutions for former Madison Co. Sheriff Nelson O'Donnell, former Johnson Co. Judge/Executive R. T. "Tucker" Daniel, and former Lyon Co. Circuit Court Clerk and Judge/Executive Jimmy Campbell.
Motion made by Larry Foxworthy, seconded by David Voegele, to ratify resolutions in memory of former Muhlenberg Co. Coroner and State Representative Charles Nelson, former Daviess Co. Jailer and Sheriff Charles Norris, former Gallatin Co. Coroner Jasper "Jack" Lowder, former Laurel Co. Sheriff Louis "Buster" Smith, and former Boone Co. PVA Chester Henderson and approve resolutions for former Madison Co. Sheriff Nelson O'Donnell, former Johnson Co. Judge/Executive R. T. "Tucker" Daniel, and former Lyon Co. Circuit Court Clerk and Judge/Executive Jimmy Campbell. Motion carried.
President Moore asked for a moment of silence in remembrance of those elected officials that have passed.
President Moore requested approval of the following meeting schedule for 2020: March 25, June 25, September 24 and December 17 at the KACo offices.
Motion made by Orbrey Gritton, seconded by Logan Chick, to adopt the 2020 meeting schedule as presented. Motion carried.
Ms. Chesser gave an update on KACo's 45th Annual KACo Conference & Exposition held at the Galt House on October 14-16. She said the event was a huge success with over 1,000 attendees, 130 booths sold and 56 sponsors. This year, Mr. Henderson made the decision to reduce the member registration fee from $260 down to $200. To date, we have collected approximately $300,000 in registration fees, sponsorships and exhibitor registration fees and roughly $13,000 remains outstanding. To date, our expenses total roughly $270,000. She said while it is not the goal of KACo to make money from its annual conferences, KACo should clear more than $40,000. One reason for the amount of profit was due to errors made by the Galt House, which they acknowledge and, therefore, reduced the bill by $17,000.
Ms. Chesser said KACo sent out a request for proposal for the 2023 KACo Conference & Exposition. The Hyatt Regency Hotel, the Hilton Downtown and Convention Center in Lexington was the only proposal submitted by the deadline. They offered the preferred dates of Nov. 15-17 with room rates of $145 and $10 rebates per guestroom night to help offset the rental fee of $30,300 for the soon to be renovated convention center. With the rebates, KACo will have pay roughly $17,000 for rental space. However, after Ms. Chesser spoke with the Lexington Convention Center, the Center agreed to subtract $5,000 from the rental fee based on the amount of food and beverage in which the Convention Center will be in charge of going forward. She has also requested a contribution from VisitLEX toward the 2023 event. In 2022, VisitLEX is contributing $1,000 toward to the rental cost. She said the Galt House Hotel in Louisville submitted a proposal after the deadline. Therefore, the only proposal to consider is the Lexington properties unless the board desired to reject Lexington's proposal and go out to bid again. She said KACo conferences held in Lexington are highly successful and staff recommends going to Lexington in 2023. Ms. Chesser plans to negotiate with Hyatt and Hilton on the hotel room rates, rebates and other concessions should the board decide to return in 2023.
Motion made by Orbrey Gritton, seconded by Gary Gardner, to accept the proposal by the Hyatt Regency Hotel, the Hilton Downtown, and Lexington Convention Center for the 2023 KACo Conference & Exposition. Motion carried.
Mr. Sturgill presented and discussed proposed amendments to the KACo bylaws as recommended by the KACo Executive Committee. (See attachment).
Motion made by David Nicholson, seconded by Orbrey Gritton, to adopt the KACo bylaws as recommended by the KACo Executive Committee. Motion carried.
Don Blevins asked for an update on KACo hiring a human resource person. President Moore said no action has been taken but is under consideration with discussions centered on providing human resource assistance not only to KACo but to the counties as well. Mr. Henderson said KACo may be able to contract for this service and the goal is to have a recommendation by the end of the fiscal year.
Judge Gritton, board member of the KACo All Lines Fund, reported that as of November 30th, the Fund has a net income of $2.6 million. Revenues are approximately 4% higher than expected due to strong investment performance for the year. He said the 2020-21 renewal is underway and members should have received their renewal packets. Appraisals were conducted this year at the request of the reinsurer for buildings over $100,000 in value. This is the first time this has been done since 2011. Overall, values increased by less than 3% which confirms that our current model has been working well to keep values updated. Members have received or will soon receive copies of their appraisals for their records. He said Pulaski County Fiscal Court joined the program bringing the current member roster to 114 fiscal courts, the highest number ever. Beginning January 13th, Phillip Crumpton will be KACo's new law enforcement specialist to work with the sheriffs and jailers to develop strategies for reducing losses in the law enforcement program. Mr. Crumpton has an extensive background in law enforcement training and management. Judge Gritton thanked Jerry Wagner, Executive Director of the Kentucky Sheriff's Association for his assistance in serving on the selection committee. He said the loss control department is working to make available to members in January, at no cost, training videos for their use in developing and conducting a training and safety program for their employees.
Grant Satterly, director of financial services, reported for July 2019 through December 2019, the program has closed a total of $26,321,254.32 in traditional governmental leases; $3,028,618.30 from its internal loan pool; and $18,130,000.00 in the KACo Finance Corporation Bond Pool. He said CoLT has completed a comprehensive orientation for its board members. The annual audits for CoLT and Commonwealth Insurance Company have been filed and Commonwealth Insurance Company has a great year with no claims. In accordance with new Municipal Security Rulemaking Board (MSRB) rules, Mr. Satterly has begun studying for the new Principal license test.
Squire Sammons, chairman of the KACo Unemployment Insurance Fund, said the Fund has 476 members, including 114 fiscal courts. As of November 30th, the Fund has a net profit of $347,000. Premiums billed for calendar year 2019 totaled $2.5 million of which all has been collected except one outstanding account.
Squire Logsdon, board member of the KACo Workers Compensation Fund, reported for policy year 2019/20, the Fund has a net income of $1.5 million as of November 30th. The renewal process has begun for the 2020-21 policy year and the renewal packets have been sent to members. The underwriting staff is working on calculating experience modifiers for each member in accordance with Kentucky law and the actuaries are working on the rate study, which are needed to determine premium that will be completed around the first or second week of April. The Fund continues to see benefits from the Nurse Triage program that was introduced to members in July allowing injured workers to consult with a registered nurse immediately after an injury. Utilization for November was at 81%; the highest rate yet. Staff is in the process of determining the members not utilizing this process in order educate them more on the issue. He said this program is saving money primarily on unnecessary ER visits and providing the employee with better care. He said the Fund has completed the first year of its very successful safety grant program. He said 128 applications were received for loss control equipment, training and/or consulting services requesting over $900,000 in funding. A total of 48 grants were funded ranging from $500 to $7,000 for a grand total of $150,000 in which the Workers Comp and KALF programs allotted for the year. The board will review the budget for next year to determine whether to repeat the program for 2020-21.
Squire Givens, board member of the KACo Insurance Agency, provided a summary of the KACo Benefits Program and performance as of December 2019. He said from December 2017 to December 2019, the Association plan grew 42% in employee lives and 69% in total insured lives and commissions paid to KACo increased by 29.1%. He said fourteen new accounts were added this year totaling approximately $8.8 million in additional premium.
President Moore, giving the governmental relations report, said he and Judge Taylor had the opportunity to testify on behalf of KACo before the Interim Joint Committee on Local Government in November. Discussed were the top legislative priorities that were captured through surveys that were conducted at the KACo conference and by other means seeking the input of elected local officials. Those priorities include increase revenue for transportation funding in which a bill is expected to be filed in mid to late January by Rep. Sal Santoro; jail relief including per diem increase, closed jail county's budget support, increase staff training andpretrial release; and local tax reform including oversight over special purpose governmental entities. He said a bill has been prefiled that gives counties the option to accept, reject or take no action in response to rate increases by taxing districts. He said the session begins Tuesday, Jan. 7th.
President Moore discussed the structure of KACo's legislative committee and its process during the session. He said the legislative committee consist of eleven members made up of ten affiliates and the KACo president. The amended KACo bylaws adds the KACo President-elect bringing the total to twelve committee members. The KACo Executive Committee proposes adding the remaining KACo executive committee members as part of the KACo legislative Committee for a total of fifteen members. He proposes that the legislative committee, which is made up of only elected county officials, meet as often as weekly with the option to participate and vote via phone. The executive directors of the affiliates will assist in compiling the agenda and making recommendations to the legislative committee. He said the goal is give the elected county officials a greater voice within the legislative process. It also gives the legislative recommendations increased effectiveness with members of the General Assembly given that the legislative committee and KACo executive committee support the positions. He said in order for the KACo Legislative Committee to either support or oppose legislation, 75% of the members present must vote to take that position. He said the KACo legislative committees are open meetings and invited the board members to attend should they have a legislative issue.
Motion made by David Nicholson, seconded by Michael Logsdon, to adopt the recommendation as outlined by increasing the KACo Legislative Committee to fifteen members. Motion carried.
Mr. Henderson, giving the director's report, said the 2020 County Officials Legislative Reception will be held on Thursday, Feb. 20th from 4:30 p.m. to 7 p.m. at the Kentucky History Center. A block of rooms has been reserved at the Capitol Plaza Hotel. Online registration opens Jan. 20th. He said all ten affiliates have agreed to co-sponsor the event. The KACo Insurance Forums will begin in February and are being held in conjunction with the Kentucky Department for Local Government budget workshops. In January, KACo will be sending out financial disclosure forms to all board members to complete and return to Mr. Ornstein. He thanked the board for the opportunity given to him to serve as the executive director and noted that KACo has a great staff. He provided the board members with a written copy of his quarterly report.
President Moore requested approval of the following appointments:
To reappoint Boone Co. Commissioner Charles Kenner to the KACo All Lines Fund Board to a three year term effective January 1, 2020 and to expire December 31, 2022.
Motion made by Orbrey Gritton, seconded by Hollis Alexander, to reappoint Boone Co. Commissioner Charles Kenner to the KACo All Lines Fund Board to a three year term. Motion carried.
To appoint the following to the KACo Audit Committee who are made up of the current KACo Board for a term beginning January 1, 2020: Fayette Co. Clerk Don Blevins to a one year term expiring December 31, 2020; Metcalfe Co. PVA Mike Welsh to a two year term expiring December 31, 2021; and Grant Co. Judge/Executive Chuck Dills to a three year term expiring December 31, 2022.
Motion made by Orbrey Gritton, seconded by Hollis Alexander, to appoint Fayette Co. Clerk Don Blevins to a one year term; Metcalfe Co. PVA Mike Welsh to a two year term; and Grant Co. Judge/Executive Chuck Dills to a three year term on the KACo Audit Committee. Motion carried.
To reappoint LaRue Co. Judge/Executive Tommy Turner and McCracken Co. Commissioner Bill Bartleman to the KACo Leasing Trust Board for a three year term beginning January 31, 2020 and expiring December 31, 2022.
Motion made by Logan Chick, seconded by Orbrey Gritton, to reappoint LaRue Co. Judge/Executive Tommy Turner and McCracken Co. Commissioner Bill Bartleman to the KACo Leasing Trust Board for a three year term. Motion carried.
To reappoint Boyle Co. Magistrate Phil Sammons and Fleming Co. Judge/ Executive Larry Foxworthy to the KACo Unemployment Insurance Fund Board for a three year term and appoint Grant Co. Magistrate Jacqalynn Riley to a three year term replacing Caldwell Co. Clerk Toni Watson effective January 1, 2020 and expiring December 31, 2022.
Motion made by Rick Stiltner, seconded by Michael Logsdon, to reappoint Boyle Co. Magistrate Phil Sammons and Fleming Co. Judge/Executive Larry Foxworthy to a three year term and appoint Grant Co. Co. Magistrate Jacqalynn Riley to the KACo Unemployment Insurance Fund Board. Motion carried.
President Moore recognized the following guests: Judge Todd Ruckel, Clerk Tabatha Clemmons, Bill Burch, Lauren Hogan and Dana Nickels.
President Moore recognized Roger Recktenwald who is retiring from KACo at the end of this month. Mr. Recktenwald was presented with a resolution and plaque for his years of service. All were invited to stay for Mr. Recktenwald's retirement reception at 3:30 p.m.
Motion made by Orbrey Gritton, seconded by David Nicholson, to adopt the resolution honoring Roger Recktenwald for his years of service to KACo and county government. Motion carried.
President Moore said the new commissioner for the Kentucky Department for Local Government, Dennis Keene, was invited to address the board today. However, was unable to do so due to a prior commitment. Commissioner Keene was wished well in his new position.
Motion made by Orbrey Gritton, seconded by Michael Logsdon, to adjourn the meeting 2:12 p.m. Motion carried.
