[tidy error]
The Kentucky Association of Counties Leasing Trust held a special Board of Trustees' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 1:00 p.m. on Tuesday, June 25, 2019 at 400 Englewood Drive in Frankfort, Kentucky.
The roll was called. The following Trustees were present: Chair Sue Carole Perry, Shelby Co. Clerk; Vice-Chair Amy Milliken, Warren Co. Attorney (via phone); Tommy Turner, LaRue Co. Judge/Executive; Gary Moore, Boone Co. Judge/Executive; and Bill Bartleman, McCracken Co. Commissioner.
Others present were: Grant Satterly, Director of Financial Services; Jim Henderson, Executive Director/CEO; Sue Blakeman, Assistant Director; Lonnie Campbell, Assistant Director; Kelly Mittler, Finance Officer; B. J. White, Accounts Receivable Officer; Karen Basham, Chief Financial Officer; Tim Sturgill, General Counsel; Rich Ornstein, Staff Attorney; Temple Juett, Director of Insurance; R. J. Palmer, Compass Municipal Advisors, LLC; Daniel Briscoe, Counsel, Dinsmore & Shohl, LLP; Roger Recktenwald, Director of Infrastructure Planning & IT; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant/Events Manager.
Chair Perry called the meeting to order at 1:06 p.m.
Motion made by Bill Bartleman, seconded by Gary Moore, to approve the minutes of the May 23, 2019 meeting as presented. Motion carried.
Ms. Blakeman presented and discussed the following operational reports: check detail and deposit detail for May 2019; transactions by account as of May 31, 2019; and FY 2018/19 PAF budget for period July 1, 2018 - May 31, 2019.
Motion made by Gary Moore, seconded by Bill Bartleman, to approve the operational reports as presented. Motion carried.
Ms. Blakeman presented a list of invoices to be paid totaling $35,360.39.
Ms. Basham said the board counsel agreement with Dinsmore & Shohl, LLP contains an error within the agreement that states Dinsmore shall be paid a fee for each funded lease or similar transaction of $0.20 per $1,000 of amount borrowed. She said the agreement should read $2.00. An amendment will be presented to the board at the next meeting.
Motion made by Tommy Turner, seconded by Gary Moore, to approve payments of the invoices with the exception of Dinsmore & Shohl's invoice for $1,410.00. Motion carried.
Mr. Satterly presented and discussed the FY 2019/20 program administration agreement between KACo and the KACo Leasing Trust for a term commencing on July 1, 2019 and ending June 30, 2019.
Motion made by Tommy Turner, seconded by Bill Bartleman to approve the FY 2019/20 program administration agreement between KACo and the KACo Leasing Trust. Motion carried with Judge Moore abstaining.
Mr. Satterly presented and discussed the consolidated financial statement as of May 31, 2019.
Mr. Satterly presented and discussed the FY 2019/20 proposed administration budget.
Motion made by Tommy Turner, seconded by Gary Moore, to adopt the FY 2019/20 proposed administration budget as presented. Motion carried.
Mr. Satterly presented and discussed five options for the board to consider concerning the loss leader leases. He suggested raising the limit on internal loans to $3.5 million and be given the authority to raise or lower the administration fees on a case to case basis to make a fair and equitable loan to minimize or eliminate any potential loss.
Motion made by Tommy Turner, seconded by Gary Moore, to raise the cap to $3.5 million on loans in the internal loan pool making no changes to the small loan program at this time; that the board receive a monthly report of the loans and the cost associated with those loans; and to negotiate in lowering the fees in order to make it more equitable. Motion carried.
Mr. Satterly presented and discussed the investment report summary as of May 31, 2019 including the security position changes for the month of May and his personal view of the economic outlook for June 2019.
Motion made by Tommy Turner, seconded by Amy Milliken, to approve the security positions changes as presented. Motion carried.
Mr. Satterly presented and discussed the lease activity report for FY 2018/19 including the leases closed in the internal loan program.
The next scheduled board meeting will be held July 25th at 9:00 a.m.
Motion made by Gary Moore, seconded by Tommy Turner, to adjourn the meeting at 1:52 p.m. Motion carried.
