KENTON COUNTY FISCAL COURT

MINUTES

AUGUST 24, 2004

The Kenton County Fiscal Court meeting was called to order in Independence, Kentucky, at the Kenton County Courthouse in Independence on August 24.  Commissioner Barbara Black presided at the meeting in Judge Ralph Drees' absence.  Present at the meeting were Commissioners Dan Humpert, Adam Koenig and Barbara Black; Deputy Judge Executive Scott Kimmich; Assistant County Attorney Brandon Voelker; Brenda Spare representing the County Treasurer's Office; Emergency Management Director Ed Burk; Police Chief Bill Dorsey; Animal Shelter Director Dan Evans; Public Works Director Joe Murphy; Jailer Terry Carl; Court Reporter Cathy Johnston; and Guests.

The invocation was given and the pledge of allegiance led by Commissioner Koenig.

The approval of the minutes of the meeting on August 17, 2004, were postponed until the next meeting and asked that they be placed on that agenda.

Delegations

There were not any delegations to come before the court.

Ordinances

Deputy Judge Kimmich said he would like to point out that the ordinances approved on the second reading at our last meeting would not come out for publication until after the approval of the minutes.  The ordinances could not be made effective until after the approval of both sets of minutes by the legislative body and the ordinance published by title and summary.  The approved ordinances will be held up for publication until such time as those minutes have been approved.

Resolutions

RESOLUTION NO. 04-16-Authorize the issuance of bonds in the amount of $3.0 million for Redwood Rehabilitation Center.  Commissioner Black asked if this was the first time for this bond.  Deputy Judge Kimmich said a bond addition resolution was done over a year ago and this is proceeding with the final adoption of the resolution to allow the issuance of the bond.

Attorney Voelker said Mr. Richard Spoor was present at court as bond counsel for Redwood and he would answer any questions by speaking about the project.  Commissioner Black asked Mr. Spoor to come forward to give his report.

Mr. Spoor said they were present at court over a year ago for the inducement resolution and now they are ready to close the bond issue.  He also stated that by Federal law they have to have a public hearing and he was acting as the proponent.

Deputy Judge Kimmich said that for the purpose of record keeping, the court needs to call to order a public hearing and take testimony if there is anyone to speak against it.  Commissioner Black called the public hearing open regarding the issuance of the $3.0 million bond for the Redwood Rehabilitation Center project.

Mr. Spoor said the project is basically as originally described to the court.  The bond proceeds are to be used to expand the facility by permitting an additional 40,000 square feet plus interior space improvements for the purposes of the Redwood School and rehabilitation.  He introduced Ms. Barbara Howard, the Executive Director of Redwood, who will answer any questions on specifics about the program.

The total project cost will be approximately $6 million and the borrowing is only for $3 million.  The reason for the increase from $2.75 million is because the Redwood School and the bank have decided to do more interior improvements rather than wait to do them in the future.  Many of the expenditures have already been collected from donors so they are borrowing only about 50 percent of the needs.  These are industrial revenue bonds meaning that there is no obligation on the part of Kenton County or any other government to repay the bonds.  Kenton County is acting as the issuer of the bonds in order for the interest rate to be lower for the school.  The closing will be in approximately one week if the bonds are approved.

Commissioner Black asked for any other comments.  Deputy Judge Kimmich said that for the record he had one question, and asked Mr. Spoor if this counts against the county's bond cap.  Mr. Spoor answered that it does not count against any of the county's debt limits.

Since there was no one present to speak against the bond, Commissioner Black declared the public hearing closed and asked for a motion of approval.  Commissioner Humpert made the motion for approval; seconded by Commissioner Koenig.  The motion was unanimously approved upon roll call.

Commissioner Humpert asked when the project is expected to be completed and Ms. Howard answered in September, 2005.

RESOLUTION NO. 04-18-Authorizing formulation and implementation of a plan for refunding the Kenton County garage bonds at a lower interest rate, Scott Kimmich reporting:  Mr. Kimmich announced that Mr. Bob Cooper, local agent, was also present to answer any questions from the court.  Mr. Kimmich also said that the reissuance of the bonds on the county parking garage were talked about at the last meeting as a means of saving money.  The county has since been notified by the jail bond allocation committee in Frankfort that there is an opportunity to refinance the jail bonds at 303 Court Street.  Mr. Cooper and his financial team have looked at this and will give the court the particulars as to why we should proceed.  This will get the county out of a situation where the state has condominium rights in our building making it a county building, and will make it much easier for the county should we choose to make any changes in the property.  It is being asked to combine both series in one resolution and authorize the fiscal agent to proceed.

Mr. Cooper said Mr. Frye was approached approximately two weeks ago because of the lower interest rate that is now in effect.  The debt of the county has been monitored looking for refunding opportunities that may occur and the refunding is based on where the rates are today.  Obviously, if the rates move it could change the opportunity.  We are looking at present potential value savings of approximately $560,000 which is a five percent savings well above the benchmark savings used to justify refunding.  Last week the opportunity came up with the Local Corrections Facility Construction Authority regarding refunding opportunities.  This resolution gives us an opportunity to look at all opportunities that are out there.  If this is combined and interest rates hold, we estimate some annual debt service savings of about $100,000 per year.  This would give us direction to go forward and further investigate and put a structure together to put all the wheels in motion.  There are a lot of meetings that have to be scheduled and approvals in Frankfort that have to be done.  Obviously this is not binding and if the interest rates get away from us, we will reevaluate and let the court know what would be in the best interest of the county.

Commissioner Humpert said his only concern was that Judge Drees asked this resolution to be tabled so he could look at it in more detail.  He felt he did not have enough information to make the decision on it and the Judge is not here tonight.  Mr. Kimmich said the County Treasurer and he had met with Judge Drees on Friday and went over the information presented to the court and he authorized it be placed back on the agenda for action.  Mr. Kimmich said the Judge had authorized him to voice his support of the resolution.

Commissioner Black asked Mr. Cooper if the county is looking at a savings of $100,000 per year and the interest rates hold, is the county looking at a savings of $560,000 for the garage and the refunding for the jail bonds at approximately $440,000.  She also asked if he anticipated it is near the five percent and saving money by doing both bonds at the same time that is making it worthwhile.  Mr. Cooper said the actual saved dollar amount savings is over $600,000 on the garage but to place a present value number reduces it somewhat as to the current dollars.  Mr. Kimmich said this is aggregate savings over the life of the bonds.  The $100,000 on the jail construction is an annual savings.  Mr. Cooper said combining the parking garage and the jail refunding together would save the county $100,000 per year over the life of the bonds.  Commissioner Black asked if the other was aggregate over the life of the bonds and Mr. Cooper answered in the affirmative.  Mr. Kimmich said it is approximately $76,000 on the jail bonds annualized and the $500,000 on the parking garage was in the aggregate amount.

Commissioner Humpert asked how many years were left on the jail bond.  Mr. Cooper answered 2014 which is ten years.  Commissioner Humpert asked how many years the bonding issue is for and Mr. Cooper said it would also be 2014.  Mr. Cooper said the refunding on the garage would be 2016.  He also said it would be decided on what is done by the life of the debt, and if it is carried out longer, the payments would be lower.  Commissioner Humpert said he would prefer to pay the jail off sooner and asked if the parking garage was 20 years in 1996, carrying it to 12 years from now would keep the same maturity.  Mr. Cooper answered this was correct.

Mr. Kimmich said that it was Judge Drees' wish as well not to extend any of the bonds beyond their current life.

There being no further comments, Commissioner Black asked for a motion for approval.  Commissioner Koenig made the motion for approval; seconded by Commissioner Humpert.  The motion unanimously passed following roll call.

Ordinances

There were not any ordinances to come before the court.

Consent Agenda

Operations

CLAIMS LIST-Commissioner Black said that a copy of the County Treasurer's report for the fiscal year ending June 30, 2004, was also included in the court's packet.  Commissioner Humpert said there was an attachment to the claims list dated August 20, that says it is a part of the claims list.

Ms. Spare said the reason for the attachments to the claim list was because of an error in the office of a batch of bills being entered that were included with an approved batch of warrants.  When this happens the checks are automatically run and the checks were held out and attached to the audit to indicate these bills were entered.  These no longer appear on the claims list.  The checks are in the safe pertaining to the audit pending approval, and this is the only option came up with to make the court aware of approval for the warrants.

There being no further comments or questions, the award will be issued and the claims paid.

Administrative Actions

Commissioner Black asked the court if there were any particular items in the consent agenda the court would like to discuss.  Handout Nos. 04-62, 04-63, 04-64 and 04-65 were announced to the court.  Commissioner Humpert asked if the words "execute the contract for a school resource officer" could be added to Handout No. 04-63.  The words were added to the handout.

Executive Orders

Executive Orders No. 04-74, 04-75, 04-76, 04-77, 04-78, 04-79, 04-80 and 04-81 were also presented to the court for consideration that included the board appointment of Janice Toebben and personnel issues.  Commissioner Black asked if there were any questions, and there being none, a motion was entertained for approval.  Commissioner Humpert made the motion to approve; seconded by Commissioner Koenig.  The consent agenda was unanimously approved following roll call.

Citizens Address

There were not any citizens present to address the court.

Administrative Reporting

Deputy Judge Executive Scott Kimmich-Said the court had received in the packet a green sheet of paper indicating bids have been received on Garvey Avenue, Phase II, ranging in the amount of  $948,000 to $1,000,582.  Ray Erpenbeck, the engineer for the city of Elsmere who was responsible for the evaluation of these bids, has recommended the acceptance of the contract for Hale Contracting Co., Inc. in the amount of $948,193.61.  It is staff recommendation that the court proceed the awarding of the bid so the construction can begin without delay.

Commissioner Black asked if this was the final phase for this road project.  Mr. Kimmich said that this was phase two but we had already completed two other phases that were actually worked on together.  The consideration for this project as required by the Supreme Court ruling is that the county and the city are equally splitting the cost of the road project with the city bearing the cost for any overruns.  Once completed, the city of Elsmere will take over Garvey Avenue for perpetual care and maintenance.  The construction of Phase II will open up Garvey Avenue all the way over to Foundation Drive which will go over to Industrial Road, opening up almost 400 acres of ground that is prime commercial land adjacent to the currently existing industrial park.

Commissioner Black asked if there was an expected completion date for the phase of this project.  Mr. Kimmich said he had not reviewed the bids but was acting on the recommendation of the engineers.

Commissioner Koenig said he wished to state how well the city of Elsmere had worked on this program above the opposition.  Mayor Bradford and other members of the council had persevered and they should be commended.

Commissioner Koenig made the motion for approval with Commissioner Humpert's second.  The motion was unanimously approved following roll call.

Brenda Spare (for Treasurer Ivan Frye) – Nothing further to report.

County Attorney's Report – Mr. Voelker stated there was nothing further to report.

Commissioner Humpert – Nothing to report.

Commissioner Koenig – Said he would like to make a report for the cable board.  The residents of Crescent Springs, Erlanger, Florence, Union and Walton may be interested in knowing that they are about to loose public cable access unless the cities decide to join the cable board.  The cities will loose access to public television programs and if this is something that interests you, it is urged that you call your city and ask them to join the telecommunications board.

Commissioner Black – Commissioner Black said she wished to speak about the animal shelter.  In addition to encouraging the spaying or neutering of a pet to control the pet population, there is a very great need to get the dogs and cats licensed in order to provide the funds needed to run the shelter.  Everyone is looking forward to getting the adoption center built and we are going out now to bid for architectural plans.

There is another serious matter to be brought out and for which the citizens' cooperation is asked.  The animal shelter is open to the public from 10:00 a.m. – 4:30 p.m. and on some days until 6:00 p.m.  During the hours when the shelter is not open, it is being asked that no one drop off unwanted cats or dogs or other animals behind the fenced-in area.  There have been some really very horrible situations that have developed for the animals when left unattended overnight and none of the animal shelter employees should have to deal with this situation.  It is being asked that no animals be dropped off after hours and to help the public remember this, the parking lot will be monitored with cameras and signs will be posted as a gentle reminder.  If someone pulls into the parking lot and dumps an animal when the shelter is not open, the license plate number and the action will be recorded and prosecuted.  The lives of the animals that are already there will be protected and the employees who have to come in the next day will not have to deal with a horrible situation.  The parking lot will be monitored and a statute is already on the books that deal with this occurrence and it will be prosecuted.  After the architectural plans are received, a campaign will be put together to raise funds for the adoption center.

The public is encouraged to visit the shelter and adopt an animal and it is very important to have pets spayed or neutered for a long, healthy live.

Executive Session

There was no executive session called.

Adjournment

Since there was no further business to come before the court, Commissioner Humpert made the motion to adjourn; seconded by Commissioner Koenig.  The meeting was adjourned.