Thursday, December 20, 2018

The Kentucky Association of Counties held a Board of Directors' meeting on Thursday, December 20, 2018 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; Kenny Barger, Madison Co. Clerk; Alex Barnett, Harrison Co. Judge/Executive; Brad Boyd, Christian Co. Jailer; Kevin Corman, Jessamine Co. Sheriff; Logan Chick, Logan Co. Judge/Executive; Todd Cooper, Ballard Co. Judge/Executive; David Fields, Pendleton Co. Judge/Executive; Casey Ellis, Owen Co. Judge/Executive; Larry Foxworthy, Fleming Co. Judge/Executive; Orbrey Gritton, Anderson Co. Judge/Executive; Jeff Hancock, Franklin Co. Clerk; Steve Henry, Webster Co. Judge/Executive; Michael Logsdon, Oldham Co. Magistrate; Gary Moore, Boone Co. Judge/Executive; David Nicholson, Jefferson Co. Circuit Court Clerk; Sue Carole Perry, Shelby Co. Clerk; Jimmy Pollard, Henry Co. Coroner; Vincent Riggs, Fayette Co. Circuit Court Clerk; Eddie Rogers, Taylor Co. Judge/Executive; Phil Sammons, Boyle Co. Magistrate; Victor Slone, Martin Co. Magistrate; Rick Stiltner, Menifee Co. Judge/Executive; Terry Stringer, Livingston Co. Magistrate; Reagan Taylor, Madison Co. Judge/Executive; Steve Tribble, Christian Co. Judge/Executive; Tommy Turner, LaRue Co. Judge/Executive; David Voegele, Oldham Co. Judge/Executive; Jim Ward, Letcher Co. Judge/Executive; Mike Welsh, Metcalfe Co. PVA; and Shane Young, Commonwealth Attorney;

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; Rich Temple Juett, Director of Insurance; Ornstein, Staff Attorney; Grant Satterly, Director of Financial Services; Christie Dutton, Director of Public Affairs; Jennifer Burnett, Director of Research; Kris Dunn, Underwriting Manager;, Crystal Hellard, Claims Support Specialist; Marie Skinner, Accountant; Michael Ray, Safety & Loss Control Manager; Lonnie Campbell, Assistant Director of Financial Services; 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; JC Young, Executive Director, Kentucky Magistrates & Commissioners Association; Mack Bushart, Executive Director, Kentucky PVA Association; Bill May, Executive Director, Kentucky County Clerks Association; Jerry Wagner, Executive Director, Kentucky Sheriffs Association; Stevie Givens, Butler Co. Magistrate; Beth Pleasant, Administrative Assistant/Travel Coordinator; Bruce Lawson, Senior Accountant; and Sonya Chesser, Executive Assistant/Conference & Events Manager.

President Bennett called the meeting to order at 1:00 p.m.

The Pledge of Allegiance was led by Judge Moore.

President Bennett offered a moment of silence in memory of Nicholas Co. Judge/Executive Mike Pryor, Allen Co. Magistrate Roman Perry and Woodford Co. Judge/Executive John Coyle followed by an invocation.

President Bennett Recognize the following new board members: KACo 2nd VP and Boyle Co. Magistrate Phil Sammons; Ballard Co. Judge Todd Cooper representing Purchase ADD; LaRue Co. Judge Tommy Turner representing Lincoln Trail ADD; Oldham Co. Magistrate Michael Logsdon representing the NACo Board; Letcher Co. Judge Jim Ward representing KY River ADD; Logan Co. Judge Logan Chick representing Barren River ADD; Madison Co. Clerk Kenny Barger representing Bluegrass ADD; Martin Co. Magistrate Victor Slone representing Big Sandy ADD; Oldham Co. Judge David Voegele representing KIPDA ADD; and Owen Co. Judge Casey Ellis representing Northern KY ADD. President Bennett also recognized Katie Ethington, great niece of Fayette Co. Circuit Court Clerk Vince Riggs.

President Bennett offered to swear in any board members that may have missed the installation ceremony on November 15th during the 44th Annual KACo Conference & Exposition. There were no board members requiring an oath of office. 
Motion made by Alex Barnett, seconded by Kevin Corman, to approve the minutes of the September 27, 2018 meeting.  Motion carried.

Ms. Basham presented and discussed the financial statement for period ending November 30, 2018.  She said the loan on the KACo building will be paid off in January 2019.

Motion made by Alex Barnett, seconded by Orbrey Gritton, to approve the financial report as presented. Motion carried.

Mr. Sturgill presented and discussed a newly proposed investment policy for KACo.  He said the updated policy is based largely upon statutory restrictions imposed upon KACo's insurance programs.

Motion made by Orbrey Gritton, seconded by Michael Logsdon, to adopt KACo's investment policy as presented.  Motion carried.

President Bennett requested approval of memorial resolutions for Nicholas Co. Judge/Executive Mike Pryor and Allen Co. Magistrate Roman Perry and to ratify a resolution in memory of Woodford Co. Judge/Executive John Coyle.

Motion made by Rick Stiltner, seconded by Michael Logsdon, to approve memorial resolutions for Nicholas Co. Judge/Executive Mike Pryor and Allen Co. Magistrate Roman Perry and to ratify a resolution in memory of Woodford Co. Judge/Executive John Coyle. Motion carried.

President Bennett requested approval to adopt the following meeting schedule for 2019: March 28 at 1:00 p.m.; June 20 at 1:00 p.m.; September 26 at 1:00 p.m.; and December 19 at 1:00 p.m. All meetings will be held at the KACo offices.

Motion made by Steve Tribble, seconded by Victor Slone, to adopt the 2019 meeting schedule as presented.  Motion carried.

Ms. Chesser, providing a post conference summary, said roughly 1,100 attended this year's 44th Annual Conference & Exposition in Lexington. This number is the second highest for attendees with 2007 holding the record with 1,115, also held in Lexington. The number of exhibitors increased this year with 132 exhibitors purchasing 145 booth spaces and monetary support from sponsors also increased. To date, expenses total roughly $318,000 with revenue being approximately $341,000, of which, approximately $23,000 remains outstanding.

Ms. Chesser said KACo sent out a request for proposal for the 2022 KACo Conference & Exposition. Responses were received from the Lexington, Northern Kentucky and Owensboro properties. A proposal from the Galt House Hotel in Louisville was received after the deadline. The Louisville Downtown Marriott and Hyatt were unable to bid due to the Kentucky International Convention Center being unavailable. Lexington submitted a proposal for the dates of Nov. 16 - 18 with a room rate of $137 at the Hyatt Regency Hotel, a room rate of $144 at the Hilton Downtown with rebates to help offset the rental of the soon to be newly renovated Convention Center. She said based on the rental fee in 2022, KACo will be have to pay the difference of $7,000 or more to cover the cost of rental. However, should the board decide to contract with Lexington, Ms. Chesser will work to negotiate the best rates, rebates and rental fee. She provided information on each of the properties submissions with Northern Kentucky and Owensboro both requiring four hotels and a convention center. She said the KACo Conference will be held at the Galt House the next three years and, given that the 2018 conference in Lexington was highly successful, staff recommends returning to Lexington in 2022.

Motion made by Sue Carole Perry, seconded by Rick Stiltner, to approve staff's recommendation to hold the 2022 KACo Conference in Lexington at the Hyatt Regency, Hilton Downtown and Lexington Convention Center.  Motion carried.

Mr. Juett, director of the KACo All Lines Fund, provided an update on the Program. As of November 30, 2018, assets totaled $111 million; equity totaled $43 million and the total billed premium for FY 2018/19 is roughly $41 million. He said the Fund has approximately 800 members and 113 out of a possible 117 fiscal courts as the three other fiscal courts are self-insured. The Fund insures $6 billion in property, $2 billion in budgets, $763 million in payroll, 13,000 vehicles and 6,000 in law enforcement officers.  He said, to date, losses are trending downward for the current year. New coverages include: damage coverage for planning and zoning, drone coverage, violent events coverage and investigation defense coverage for sheriffs and deputies. As of November 30, 2018, income totaled $17.1 million, expenses totaled $16.8 million for a net income of $342,000 and investment totaled $100 million, claims payments totaled $8.1 million and new claims totaling 931.

Sue Carole Perry, chair of the KACo Leasing Trust, reported that the financial services department has completed 39 financings in the first five months of fiscal year 2019 totaling $27,323,715. This was strong performance considering this was an election year, which is historically a weak lending period.  She said fourteen of those financings were done through the KACo's 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. To date down payment assistance program has assisted 168 home buyers with the gift of a down payment to purchase their homes valued at over $22,500,000. CoLT is in the process of kicking off its new overnight investment program. The Insured Cash Sweep Program provides 100% FDIC insurance on deposits of any amount up to $110 million per entity, which means no more having to manage collateral for your deposits. You can withdraw money as needed up to six times each month.  Most importantly the rate today is approximately 1.67%.
Squire Sammons, chairman of the KACo Unemployment Insurance Fund, said the program has 479 accounts including 114 fiscal courts. As of November 30, 2018, the Fund is running at a net profit of $576,000 and, to date, the Fund has paid out three quarters of claims for the calendar year, totaling $824,451.80. He said claims are lower than they have been since 2001. For calendar year 2018, members were billed a total of $2,700,000 and have collected all but $11,000.  Members' equity is currently $12,500,000.

Squire Logsdon, board member of the KACo Workers Compensation Fund, provided an update on the Program. He said due to changes in the law, improvement in losses, and good investment performance, the Fund was able to add $16 million to its surplus in fiscal year 2018. The Fund currently has $118 million in assets with $42 million in equity. He said equity is the cornerstone for a strong insurance pool and because of the increase in the Fund's equity, the board declared a $3 million dividend and voted to use another $2 million to reduce rates for the upcoming year.  He said the Fund has roughly 600 members, including 113 fiscal courts, and these members include 30,000 employees and $791 million in payroll. He said the Program is strong and remains a good example of county cooperation.  As of November 30th, income totaled $10.7 million, investments totaled $112 million, claims totaled $6.3 million and new claims totaled 634.  He thanked Judge Moore for serving on the Workers Compensation Fund Board and Mr. Nicholson for his work as KACo president.

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 2018. The Program has 190 members made up of 57 fiscal courts, 69 libraries and 64 other political subdivisions for a total annualized premium of $40 million covering 5,144 lives. He said Paducah-McCracken Co. Convention & Expo joined the program August 2018 and Bell County Fiscal Court joined October 2018. Effective January 1, 2019, six new accounts will be added totaling approximately $1.5 million.

Squire Bennett, chairman of the KACo Legislative Committee, said staff is preparing for the thirty day 2019 session, which begins January 8th.  KACo and its affiliates will begin its weekly committee meetings in mid-January. Copies of the KACo's Legislative Preview document was presented to the board and was also shared with the Interim Joint Committee on Local Government when KACo and all the affiliates testified on their top issues for 2019.  President Bennett said the Tax Reform committee met in October in Bell County for a day in conjunction with the monthly executive committee meeting.  The purpose was to begin digging into the details of what local tax reform might look like for counties.  He said KACo's Research Director sent two surveys to county judges to share with their other local officials, to get direction as to their top tax and revenue priorities.  The committee will be working hard during the session and over the interim, with other stakeholders in local government when possible, to formulate legislation to present to the legislature by 2020.  He said, the Governor called a hastily assembled Special Session this past Monday in response to last week's Supreme Court decision on the 2018 pension reform bill, Senate Bill 151.  The legislature gaveled in at 8pm Monday, and adjourned with no bill passed by Tuesday night, just shy of 24 hours later. President Bennett called on Ms. Hampton to provide an update on the pension bill and phase-in bill.

Mr. Roy, giving the executive director's report, provided an update on improvements to the boardroom including additional tables made by Kentucky Correctional Industries. He said the number of members on the KACo board increased due to KACo being 100% state with NACo, which added two additional spots on the Board. He said a financial disclosure and conflict of interest statement will be sent out in January to all KACo Board and program board members for each member to complete and return to KACo. The County Officials Legislative Reception will be held February 14th.  A block of rooms have been reserved at the Capital Plaza Hotel. He asked each affiliate group to let Ms. Chesser know if they planned to be a co-sponsor of the reception. He said KACo would sponsor a lunch for the legislators during the upcoming session.  Mr. Roy asked that the board verify that KACo has the most to update information on file for the elected offices in each of their counties. He said the KACo Insurance Forums will be held in conjunction with the DLG budget this year at ten locations across the state. Mr. Roy provided the topics for this year's County Leadership Institute training, which runs April through October. He presented the board with a copy of KACo's new brochure manual. He said it has been honor for the KACo staff to have worked with the outgoing board members and that he appreciates their service.

President Bennett recognized the following board members leaving office: Taylor County Judge/Executive Eddie Rogers for seven years of service; Livingston Co. Magistrate Terry Stringer for two years of service; and Letcher Co. Judge/Executive Jim Ward for his service on the board. Judge Rogers said it has been an honor to serve on the KACo Board and, since being elected judge in 1999, he has been a KACo promoter because it belongs to its members. Squire Stringer thanked everyone for twenty-nine years of friendship. He said KACo is a great organization and in good hands.  Judge Ward thanked everyone for what they do for the counties and the services they provide and KACo, Brian Roy and staff for their hard work in making their jobs easier.

President Bennett requested approval of the following appointments:

Move to reappoint the following to the KACo Leasing Trust Board: Warren Co. Attorney Amy Milliken to a three year term effective January 1, 2019 and to expire December 31, 2021 and to appoint McCracken Co. Commissioner Bill Bartleman for a term to begin January 1, 2019 and to expire December 31, 2019 filling the unexpired term of Ballard Co. Clerk Lynn Lane who is retiring from office.

Motion made by Rick Stiltner, seconded by Tommy Turner, to reappoint Warren Co. Attorney Amy Milliken and to appoint McCracken Co. Commissioner Bill Bartleman to the KACo Leasing Trust. Motion carried.

Move to reappoint the following to the KACo All Lines Fund Board: Greenup Co. Judge/Executive Bobby Carpenter and Garrard Co. Judge/Executive John Wilson to a three year term effective January 1, 2019 and to expire December 31, 2021; to appoint Anderson Co. Judge/Executive Orbrey Gritton to a term beginning January 1, 2019 and expiring December 31, 2020 filling the unexpired term of Clark Co. PVA Karen Bushart who is leaving office; to appoint Boone Co. Commissioner Charles Kenner to a term beginning January 1, 2019 and expiring December 31, 2019 filling the unexpired term of Shelby Co. Magistrate Tony Carriss who is leaving office; and to appoint Union Co. Judge/Executive Adam O'Nan to a term beginning January 1, 2019 and expiring December 31, 2020 filling the unexpired term of Henderson Co. Magistrate Bruce Todd who is also leaving office.

Motion made by Jim Ward, seconded by Michael Logsdon, to reappoint Greenup Co. Judge/Executive Bobby Carpenter and Garrard Co. Judge/Executive John Wilson and to appoint Anderson Co. Judge/Executive Orbrey Gritton, Boone Co. Commissioner Charles Kenner and Union Co. Judge/Executive Adam O'Nan to the KACo All Lines Fund Board.  Motion carried.

Move to appoint the following to the KACo Workers Compensation Fund Board: Harlan Co. Judge/Executive Dan Mosley for a term beginning January 1, 2019 and expiring June 30, 2021 filling the unexpired term of seat vacated by Boone Co. Boone Co. Judge/Executive Gary Moore; Caldwell Co. Magistrate Elbert Bennett for a term beginning January 1, 2019 and expiring June 30, 2019 filling the unexpired term of Shelby Co. Magistrate Michael Riggs who is leaving office; and appoint Owen Co. Judge Casey Ellis to a term beginning January 1, 2019 and expiring June 30, 2019 filling the unexpired term of Martin Co. Judge Kelly Callaham who is leaving office.

Motion made by Alex Barnett, seconded by Tommy Turner, to appoint Harlan Co. Judge/Executive Dan Mosley, Caldwell Co. Magistrate Elbert Bennett and Owen Co. Judge/Executive Casey Ellis to the KACo Workers Compensation Fund Board. Motion carried.

Move to appoint the following to the KACo Unemployment Insurance Fund Board: Caldwell Co. Clerk Toni Watson for a term effective January 1, 2019 and to expire December 31, 2019 filling the unexpired term Morgan Co. Magistrate Anthony Lykins, who is leaving office; Hardin Co. Sheriff John Ward for a term effective January 1, 2019 and to expire December 31, 2020 filling the unexpired term of Warren Co. Sheriff Jerry "Peanuts" Gaines who is leaving office; and Jefferson Co. Circuit Court Clerk David Nicholson for a term effective January 1, 2019 and to expire December 31, 2020 filling the unexpired term of Johnson Co. Judge/Executive R. T. "Tucker" Daniel who is leaving office.

Motion made by Orbrey Gritton, seconded by Gary Moore, to appoint Caldwell Co. Clerk Toni Watson; Hardin Co. Sheriff John Ward and Jefferson Co. Circuit Court Clerk David Nicholson to the KACo Unemployment Insurance Fund Board. Motion carried.

Move to appoint Franklin Co. Clerk Jeff Hancock to the KACo Audit Committee effective January 1, 2019 and to expire December 31, 2019 filling the unexpired term of Washington Co. Judge/Executive John Settles who is leaving office and to appoint Oldham Co. Magistrate Bob Dye for a term effective January 1, 2019 and to expire December 31, 2021 filling the unexpired term of Johnson Co. Judge/Executive R. T. "Tucker" Daniel who is leaving office.

Motion made by Michael Logsdon, seconded by Alex Barnett, to appoint Franklin Co. Clerk Jeff Hancock and Oldham Co. Magistrate Bob Dye to the KACo Audit Committee.  Motion carried.

President Bennett thanked everyone for working with him and he looks forward to serving as President. He asked the board to feel free to reach out to him with any questions or concerns.

Mr. Nicholson reminded the board that at its June meeting the board approved paying the NACo membership dues for all 120 counties. He said a payment will be issued to the National Association of Counties soon. Judge Moore said if any board member wanted to get involved by serving on a NACo Steering Committee, to let Brian know.

The next scheduled board meeting will be held March 28th at 1pm.

Motion made by Michael Logsdon, seconded by Eddie Rogers to adjourn the meeting at 2:00 p.m.  Motion carried.

Monday, March 25, 2019

The Kentucky Association of Counties held a special Board of Directors' meeting at 2:00 p.m. on Monday, March 25, 2019 at 400 Englewood Drive in Frankfort, Kentucky.

The roll was called. The following Directors were present: President Elbert Bennett, Caldwell Co. Magistrate; Kenny Barger, Madison Co. Clerk; Alex Barnett, Harrison Co. Judge/Executive; Brad Boyd, Christian Co. Jailer; Kevin Corman, Jessamine Co. Sheriff; Logan Chick, Logan Co. Judge/Executive; Todd Cooper, Ballard Co. Judge/Executive; David Fields, Pendleton Co. Judge/Executive; Casey Ellis, Owen Co. Judge/Executive; Larry Foxworthy, Fleming Co. Judge/Executive; Gary Gardner, Hart Co. Magistrate; Orbrey Gritton, Anderson Co. Judge/Executive; Jeff Hancock, Franklin Co. Clerk; Steve Henry, Webster Co. Judge/Executive; Michael Logsdon, Oldham Co. Magistrate; Gary Moore, Boone Co. Judge/Executive; David Nicholson, Jefferson Co. Circuit Court Clerk; Sue Carole Perry, Shelby Co. Clerk; Jimmy Pollard, Henry Co. Coroner; Vincent Riggs, Fayette Co. Circuit Court Clerk; Phil Sammons, Boyle Co. Magistrate; Rick Stiltner, Menifee Co. Judge/Executive; Reagan Taylor, Madison Co. Judge/Executive; Steve Tribble, Christian Co. Judge/Executive; Tommy Turner, LaRue Co. Judge/Executive; David Voegele, Oldham Co. Judge/Executive; and Mike Welsh, Metcalfe Co. PVA.

Others present were: Rich Ornstein, Staff Attorney; Mack Bushart, Executive Director, Kentucky PVA Association; Vince Lang, Executive Director, Kentucky County Judge/ Executive Association; Barry Stilz and Lynn Zellen, Kinkead & Stilz Law Firm, PLLC; and Sonya Chesser, Executive Assistant/Events Manager.

President Bennett called the meeting to order at 2:02 p.m.

Motion made by Jeff Hancock, seconded by Orbrey Gritton, to go into closed session to conduct a discussion or hearing which might lead to the appointment, discipline or dismissal of an individual employee as authorized by KRS 61.810(1)(f) at 2:04 p.m.  Motion carried.

Motion made by Tommy Turner, seconded by Gary Gardner, to return to open session at 3:55 p.m.  Motion carried.  Orbrey Gritton asked that the record reflect that no action was taken in closed session.

Motion made by Tommy Turner, seconded by Orbrey Gritton, to place Brian Roy on paid administrative leave pending negotiations between KACo's attorney, Barry Stilz and Brian Roy and/or his representatives. Further, Mr. Stilz is directed to negotiate a financial settlement subject to board approval, with the settlement agreement to include a waiver and release of all potential claims against KACo, KACo-affiliated organizations, all board members and staff with the agreement to include non-compete and non-disparagement provisions. Motion carried with Steve Henry voting nay. 

Motion made by Rick Stiltner, seconded by David Fields, to ratify the Saturday, March 23, 2019 retention of Barry Stilz of Kinkead & Stilz to represent KACo in the Brian Roy matter.  Motion carried.

Motion made by Orbrey Gritton, seconded by Jeff Hancock to adjourn the meeting at 3:58 p.m.  Motion carried.