Thursday, October 18, 2018

The Kentucky Association of Counties held a special executive committee meeting, pursuant to proper notice given in accordance with KRS 61.823, at 10:00 a.m. on Thursday, October 18, 2018 at Bell County Judicial Center in Pineville, Kentucky.

The roll was called. The following Directors were present: President David Nicholson, Jefferson Co. Circuit Clerk; President-Elect Elbert Bennett, Caldwell Co. Magistrate; 1st Vice President Gary Moore, Boone Co. Judge/Executive; 2nd Vice President Reagan Taylor, Madison Co. Judge/Executive; and Immediate Past President Bruce Todd, Henderson Co. Magistrate.

Others present were: Brian Roy, Executive Director/CEO; Jim Henderson, Deputy Director; Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Grant Satterly, Director of Financial Services; Jennifer Burnett, Director of Research; Shellie Hampton, Director of Governmental Affairs; Bell Co. Circuit Court Clerk Colby Slusher; Knox Co. Circuit Court Clerk Greg Helton; and Sonya Chesser, Executive Secretary.

President Nicholson called the meeting to order at 10:00 a.m.

Motion made by Gary Moore, seconded by Bruce Todd, to approve the minutes of the September 27, 2018 meetings.  Motion carried.

Ms. Basham provided the following financial reports: FY 2018/19 consolidated budget report for July 1, 2018 through September 30, 2018; statement of financial position as of September 30, 2018; statement of activities for July 2018 through September 2018; and the FY 2018/19 PAF budgets for all programs for period July 1, 2018 through September 30, 2018. She also presented copies of the credit card reports and the out-of-state travel report for the month of September 2018.

Motion made by Gary Moore, seconded by Reagan Taylor, to acknowledge receipt of the financial reports as presented.  Motion carried.

Mr. Satterly presented and discussed the investment report for September 2018 including the security position changes for the month of July and his personal view of the economic outlook for October 2018.

Motion made by Reagan Taylor, seconded by Bruce Todd, to acknowledge receipt of the investment report and to approve the security position changes as presented.  Motion carried.

Mr. Satterly discussed a new overnight investment program KACo is offering to the counties and public entities. This liquid investment fund allows access to withdraw up to six times per month and is 100% insured by the Federal Deposit Insurance Corporation (FDIC). It offers a superior rate of interest to increase annual earning on temporary funds. Mr. Sturgill said the proposed arrangement is an endorsement agreement KACo and Republic Bank for KACo to market the bank's Insured Cash Sweep product to governmental entities in Kentucky. Mr. Satterly said KACo would receive an initial fee of fifteen basis points per year and as the program grows it could grow to a quarter of a point over a period of years.

Motion made by Gary Moore, seconded by Reagan Taylor, to accept the concept of a KACo overnight investment program and authorize Brian Roy to sign the agreement with Republic Bank as long as it meets the parameters as outlined today and upon review of the general counsel. Motion carried.

Ms. Chesser provided an update on the KACo conference to be held November 14 - 16 at the Lexington Convention Center in Lexington, KY.  She also presented a copy of the tentative agenda for the board's review including a list of the executive board members that will be chairing a portion of the program. A floor plan of the exhibit hall was also provided. Judge Taylor said he was pleased to see the deputy county judge/executives holding a meeting at the conference and encouraged promoting it to other deputy county judge/executives or similar types of officeholders.

President Nicholson presented and discussed a performance appraisal for the board's consideration, which is a guide to review the executive director's performance. Judge Taylor reassured Mr. Roy that this is the preferred tool to evaluate the executive director and nothing else. Judge Moore commented that Mr. Roy has done a lot of great things relating to the programs and staff moves. The board agreed to change the third paragraph of the first page of the Executive Director/CEO Evaluation - Direct Reports Survey to not state the name of the president. Judge Taylor asked who should be deemed the keeper of the document to send out at the appropriate time. President Nicholson said initially two audiences would be surveyed - the direct reports and the KACo Board.  After discussion, the board agreed to only survey the direct reports. The board agreed to designate Mr. Ornstein as the placeholder working with the KACo Executive Committee to determine the dates for the direct reports to complete their survey.  President Nicholson asked Judge Taylor to work with Mr. Ornstein with regards to the process and schedule. Judge Taylor recommend utilizing Survey Monkey as the evaluation tool. He recommended that the topic should be on the agenda for the executive committee meeting in May, sent out in June for the direct reports, and review the information at the July meeting. Judge Taylor said he would make changes to the document and will present it for adoption at the Nov. 29 meeting.

President Nicholson welcomed Mr. Helton and Mr. Slusher to the meeting and thanked them for their hospitality.

Mr. Roy, giving an executive director's report, provided the board with a copy of the current cell phone policy and said work is being done to phase in a new policy beginning in January.  He presented artwork of a challenge coin that KACo would be purchasing and available to the executive committee to hand out to dignitaries. Mr. Henderson is working with Greg Coker to assist in the process of developing a strategic plan; an update was provided.  Mr. Roy said there are four candidates running a position for KACo 2nd Vice President, which led to the discussion of the election process. Mr. Roy provided an update on the upgrades being made to the board room.

Mr. Sturgill, giving an update on the Fulton Co. lawsuit, said the county has made a settlement offer consistent with the proposal as outlined by the KALF board. He believes that the KALF Board will accept the settlement agreement at their meeting on Oct. 24th.

President Nicholson, giving his closing remarks, thanked the KACo team, the professional staff, for their work. He said the friendships that he has made with each of the fellow executive members and staff will stay with him and that it's been an honor and privilege.  He recognized Squire Todd for his service and that it was a privilege to serve with him.

Squire Todd said the time he has served on the executive board has gone by quickly.  He said it was a great opportunity, he learned so much and the staff is like family. He will miss serving on the executive committee the most and is a better person for it.

There being no further business, the meeting was adjourned at 11:37 a.m.