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The Kentucky Association of Counties held a special executive committee meeting, pursuant to proper notice given in accordance with KRS 61.823, at 1:00 p.m. on Tuesday, May 19, 2020 at 400 Englewood Drive in Frankfort, Kentucky.
The following Directors participated via phone: President Gary Moore, Boone Co. Judge/Executive; President-elect Reagan Taylor, Madison Co. Judge/Executive; 1st Vice President Phil Sammons, Boyle Co. Magistrate; 2nd Vice President Amy Milliken, Warren Co. Attorney; and Immediate Past President Elbert Bennett, Caldwell Co. Magistrate.
Others participating by phone included: Jim Henderson, Executive Director/CEO; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Grant Satterly, Director of Financial Services; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
President Moore called the meeting to order at 1:10 p.m.
Motion made by Elbert Bennett, seconded by Phil Sammons, to approve the minutes of the April 23, 2020 meeting. Motion carried.
The topic of discussion was the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed by Congress with overwhelming, bipartisan support and signed into law by President Trump on March 27th. This over $2 trillion economic relief package protects the American people from the public health and economic impacts of COVID-19. President Moore provided an update on the $1.7 billion of the CARES Act funds that was awarded to Kentucky. Of that money, Jefferson-Louisville Metro Government received a direct allocation of approximately $134 million. He said the CARES Act allows for reimbursement of expenses related to COVID-19 and referenced some of the allowable expenses. Mr. Henderson provided the Committee with a letter from Governor Beshear in response to KACo and the Kentucky League of Cities pledging to make $300 million of the $1.7 billion available to Kentucky's counties and cities to cover necessary expenditures from March 2020 through December 2020. He also provided a copy of a joint letter from KACo and the Kentucky League of Cities to Commissioner Dennis Keene with the Kentucky Department for Local Government outlining a plan for distribution of those funds in two phases over the remainder of the calendar year along with the allocation amounts for each county and city. He said in phase one, cities and counties will divide $250 million equally and each city and county can apply for reimbursement for eligible expenses between March 1 and October 15. If federal action is taken to expand or modify what is considered an eligible expense, such as lost revenue replacement, those new or modified permissible expenses would also become eligible for reimbursement. Any funds not spent on eligible expenses by October 15 shall revert to be placed in phase two, which includes an additional $50 million and will be available October 16 through November 30, 2020. President Moore said the Governor plans to announce the plan today and is hopeful that he will implement KACo's and KLC's formula. President Moore recommended that counties first submit qualifying emergency management expenses to FEMA for reimbursement, then submit all other expenses to the CARES fund. Mr. Henderson said there may also be funding sources available through other state agencies and cabinets for other reimbursable services and expenses.
President Moore asked the Committee to share their perspective as to the biggest challenges their communities are facing in the wake of the COVID-19 pandemic. Major issues included frustration in small businesses and restaurants having to remain closed and unemployment issues among others.
Mr. Henderson provided an overview of the FY 2020/21 draft budget. He said the proposed budget includes no across the board changes to employee salaries beginning July 1, but salaries will be re-evaluated once a compensation study is conducted. Ms. Basham discussed each line item of the draft budget. President Moore said, given the COVID crisis, would KACo receive relevant information from a compensation study or should the study be delayed until the economy is back to normal. Mr. Henderson suggested that the study include a pre-COVID benchmark as well as a post-COVID benchmark and that the study be done in the fall with recommendations for salary adjustments by Jan. 1.
Ms. Basham presented and discussed the 990 tax return for 2018 for the Committee's information.
Motion made by Phil Sammons, seconded by Reagan Taylor, to acknowledge receipt of the 990 tax return for 2018 as presented. Motion carried.
Mr. Henderson, giving executive director's report, said he would reserve his full report and year-end goals and objectives at the next meeting. He also plans to provide a fiscal year-end report to the KACo full board at its June meeting. He said KACo is sending out a survey to all elected county officials asking when and how their county offices plan to reopen during COVID-19. The results from the survey will be shared with the members.
President Moore said the annual NACo Conference & Exposition scheduled to take place in Orlando, FL has been cancelled. However, NACo plans to hold its annual business meeting virtually on Monday, July 20th and will include Judge Moore being sworn in as the NACo President. President Moore said he would prefer participating in the virtual meeting from the KACo office with the executive committee and/or Kentucky's representatives serving on the NACo board being present with a reception to follow, if allowable. Mr. Henderson and the Executive Committee concurred.
There was discussion as to whether or not the June board meetings should be held in-person at the KACo offices or continue holding the meetings virtually.
President Moore cancelled the special Executive Committee meeting scheduled for Thursday, May 21. He said he would call another special meeting within the next two weeks or so for consideration of the FY 2020/21 budget.
Motion made by Reagan Taylor, seconded by Elbert Bennett, 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 2:43 p.m. Motion carried.
Motion made by Reagan Taylor, seconded by Amy Milliken, to return to open session at 2:55 p.m. Motion carried. No action was taken in closed session.
Motion made by Reagan Taylor, seconded by Amy Milliken, to adjourn the meeting at 2:55 p.m. Motion carried.
The Kentucky Association of Counties held a special executive committee meeting, pursuant to proper notice given in accordance with KRS 61.823, at 11:30 a.m. on Friday, June 12, 2020 at 400 Englewood Drive in Frankfort, Kentucky and via teleconference.
The following Directors were present: President Gary Moore, Boone Co. Judge/Executive; President-elect Reagan Taylor, Madison Co. Judge/Executive (via teleconference); 1st Vice President Phil Sammons, Boyle Co. Magistrate; 2nd Vice President Amy Milliken, Warren Co. Attorney (via teleconference); and Immediate Past President Elbert Bennett, Caldwell Co. Magistrate.
Others present: Jim Henderson, Executive Director/CEO; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Jennifer Burnett, Director of Research (via teleconference); Jeremy McCann, Web Programmer; and Sonya Chesser, Chief Administrative Officer/Executive Assistant to CEO.
President Moore called the meeting to order at 11:33 a.m.
Motion made by Phil Sammons, seconded by Elbert Bennett, to approve the minutes of the May 19, 2020 meeting. Motion carried.
Ms. Basham presented and discussed the following financial reports: statement of financial position as of April 30, 2020; consolidated budget report for period July 1, 2019 through April 30, 2020; statement of activities for period July 1, 2019 through April 30, 2020; and FY 2019/20 PAF budget reports for July 1, 2019 through April 30, 2020. She also presented and discussed the credit card reports for the month of April 2020 and the out of state travel report for the month of April. She also provided a summary of investments for KACo and its programs by month from period December 2019 through June 2020.
Motion made by Elbert Bennett, seconded by Phil Sammons, to acknowledge receipt of the financial reports as presented. Motion carried.
Ms. Basham presented and discussed the FY 2020/21 final draft budget.
Motion made by Phil Sammons, seconded by Reagan Taylor, to recommend approval of the FY 2020/21 budget as presented to the KACo Board of Directors. Motion carried.
Mr. Henderson provided the Committee with a copy of his monthly executive director's report for May as well as a year-end report. He highlighted that the focus over the past month was lobbying for funding for counties and cities through the CARES Act. He said Mr. Sturgill solicited proposals seeking a compensation study and, after review of the responses, Mountjoy Chilton and Medley (MCM) was selected. MCM will begin the study in August with hopes of having it completed by fall. Mr. Henderson provided an update on the teleworking schedule for staff during COVID-19. He said all employees will be returning to the office on June 22nd. He said is looking at the possibility to offer staff the ability to work remotely from home. President Moore said this may also open an opportunity for KACo to hold virtual meetings with county members rather than visit in person. Mr. Henderson said the Department for Local Government is now allowing live web-based training for county officials to earn training credit and KACo is looking to offer virtual trainings for its members. Ms. Chesser said the KACo Leadership Institute classes will resume in-person beginning in July. Additional in-person classes will be scheduled, as needed.
President Moore said he has been told if counties are updating technology and computer equipment in order to provide necessary services during COVID-19 then it is a qualified expense reimbursable through the CARES Act. He suggested KACo sending out a survey to the counties asking if they have struggled with technology updates and let them know of this benefit to reimbursement.
The Committee agreed to move the next meeting from June 25th at 10:30 a.m. to a special time at 11:00 a.m. The Committee also agreed that members may attend either in-person or by video teleconference for both the Executive Committee and quarterly Board of Director's meetings.
Motion made by Phil Sammons, seconded by Reagan Taylor, 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 12:38 p.m. Motion carried.
Motion made by Elbert Bennett, seconded by Phil Sammons, to return to open session at 1:43 p.m. Motion carried. No action was taken in closed session.
Motion made by Phil Sammons, seconded by Amy Milliken, to approve a $10,000 performance award to Jim Henderson. Motion carried.
Motion made by Phil Sammons, seconded by Reagan Taylor, to recommend to the KACo Board an employment agreement between Jim Henderson and KACo. Motion carried.
Mr. Henderson said he was very appreciative of the actions taken by Committee.
Motion made by Phil Sammons seconded by Reagan Taylor, to adjourn the meeting at 1:48 p.m. Motion carried.
