KENTON COUNTY FISCAL COURT

M I N U T E S

JUNE 12, 2007, 9:00 A.M.

The regular meeting of the Kenton County Fiscal Court was called to order at the Independence Courthouse.  Present at the meeting were Judge Executive Ralph A. Drees; Commissioners Dan Humpert and Sara Voelker; Deputy Judge Executive Scott Kimmich; Assistant County Attorney Stacey Hege; Special Projects Manager Ralph Bailey; County Treasurer Ivan Frye; Human Resources Director Joe Shriver; Police Chief Ed Butler; Public Works Director Joe Murphy; Jailer Terry Carl; Court Reporter Cathy Johnston; and Guests.

Commissioner Knochelmann was absent from the meeting because he was out of town.

Invocation and Pledge of Allegiance

The invocation was given and pledge of allegiance led by Commissioner Dan Humpert­­­­­­­­­­­­­

Approval of Minutes

Judge Drees asked the court for approval of the minutes dated May 8, 2007, May 29, 2007 and June 5, 2007.  Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker.  The motion was unanimously approved with the vote of aye.

Delegations

Introduction of Mary Lou Franzoni, General Manager, and Andrew C. Aiello, Deputy General Manager, of the Transportation Association of Northern Kentucky (TANK) to the Kenton County Fiscal Court:  Mr. Aiello came before the court and introduced himself and Ms. Franzoni.  Judge Drees asked Mr. Aiello for an explanation of some budget items from TANK that was mailed to the fiscal court members.  Mr. Aiello explained that ridership was up approximately 1.6 percent and revenue was up about 2.9 percent and said there had been no fare increases or major service changes over the past 12 months.  He said one of the things he will be working on over the next two to three months was to get a more concise information packet on TANK that will be available on a quarterly basis.

Report on local law enforcement block grant, Chief Ed Butler reporting:  The allocation for the block grant money is from the Department of Justice and is between the city of Covington and Kenton County which is for $109,246 this year, with Covington getting 70 percent of the money and Kenton County getting 30 percent.  The county has to work with Covington on the grant because they are designated as joint awardees and is based upon crime levels in this area, so Kenton County's share will be $32,773.80.  The fiscal court is being asked to move forward with approval so a memorandum of understanding can be written for the Judge's and Mayor's signature and the grant application can be presented in advance of the deadline on July 2 to the Department of Justice.

Once the funds are received, the court is also being asked for permission from the police department to update the video equipment in police cruisers.  What we now have is outdated technology and there has been a lot of new equipment put out that is needed.

Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker and the motion unanimously passed with the vote of aye.  

General Business

No general business items were brought to the court's attention.

Resolutions

Resolution No. 07-01C

Approval of changes in the line items of the budget because of unanticipated expenses between appropriation accounts to provide necessary funding for these items as identified, Ivan Frye reporting:  As we get closer to the end of the year, some line items in the budget are expended and a request is being made to add money to these items.  The court members have a list of the accounts and the amounts that are being recommended to be moved into these operating accounts.

Judge Drees asked about the line item regarding police communications for $289,000.  Mr. Frye said this is not a new expense but one that has taken a long time to get finalized and approved.  There is one final payment that skipped a whole budget year.  It was thought this would be paid out of the previous year and it was not added back in to this year's budget and is paid to Motorola.  An invoice is expected by the end of June.

Mr. Frye said the other large item listed is in public works showing a $230,000 transfer.  It was previously approved to buy two dump trucks equipped with sander and plows.  It was decided to buy these in the coming budget year but there is a six-month lead time on ordering and receiving this type of truck.  A purchase order has been issued obligating these funds.

Commissioner Humpert made the motion for the budget adjustments followed by a second from Commissioner Voelker.  The motion unanimously passed with a voice vote of aye.

Ordinances

Public hearing on road aid distribution funds:  Mr. Kimmich said the public hearing was formally opened accepting comments regarding the use of county road aid and local government economic assistance funds in the FY 2007-08 budget.  The notice was posted according to state statute and no comments have been received either in writing or verbally in the office of the County Judge concerning the expenditure of these funds.

Mr. Frye said there is a road plan from public works on what the money is being spent for this year.  Typically, 100 percent of the county road aid goes for resurfacing jobs and that list has been prepared by the superintendent if anyone has any questions.  This was previously presented to the court.

Since there were no further comments, Judge Drees asked for a motion to close the public hearing.  Commissioner Voelker made the motion; seconded by Commissioner Humpert and the motion unanimously passed with the aye vote.

Ordinance No. 225.46

Second reading of Kenton County Fiscal Court budget for the 2007-08 year:  Judge Drees asked Mr. Frye about the changes since the first reading and Mr. Frye said the budget had been forwarded to the State Local Finance Officer for review of substance and classification.  The budget came back to the county approved and there have been a couple of line items significantly changed.  In public works, $800,000 has been added for the St. Elizabeth public access road because of a better estimate which is a pass through from a state grant and any overrun will be paid by St. Elizabeth.  This has to be in our budget in order for the funds to be expended.  In the general fund, the amount has been increased that is available for carryover and raised the total general fund by about $800,000.  The old revolving loan account is being moved back into the general fund and this will be put into a restricted reserve.  This is reflected as a reduction in the CDBG line item into the general fund.

Mr. Kimmich said the CDBG fund is an economic development fund out of which some loans have been made to fire departments.  The largest loan was made to the Oldenberg Brewery 12 to 15 years ago and this money was recovered.  When this money was recovered a significant time had elapsed since the original loan was made and it loses its identity as it travels through the Federal government.   After a period of time it can be used for any public purpose deemed appropriate by the fiscal court.  This is the reason it is being transferred into a restricted reserve account so that only the fiscal court can spend the money.

Judge Drees asked for a motion to accept the ordinance with the changes made.  Commissioner Humpert made the motion followed by a second from Commissioner Voelker.  The motion unanimously passed upon the following roll call vote:  Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Ordinance No. 320.5

Second reading of an ordinance amending the 911 emergency communication surcharge such that the Kenton County Fiscal Court shall receive $2.76 per line per month, effective July 1, 2007:  Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker.  The motion unanimously passed with the following roll call vote:  Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Consent Agenda

Claims List-County Treasurer Ivan Frye:  Commissioner Voelker asked if there were any changes in the one that was provided today and Mr. Frye said no.  Judge Drees said since there were no questions, warrants would be issued and the bills paid.

Administrative Actions

Handout No. 07-40

Approval and authorization for Judge Executive Ralph A. Drees to sign an interlocal agreement creating the LINK-GIS/Kenton County partnership with the Kenton County Fiscal Court, Northern Kentucky Area Planning Commission, Northern Kentucky Water District, and Sanitation District #1:  Mr. Frye said this is a long standing interlocal agreement that is already in place and this will upgrade and clarify that the county, sanitation and water district no longer pay operating expenses, but we are still partners in that system with area planning and will participate in the payment of flyover when that is done, every three years or whatever is necessary.  This agreement formalizes that understanding and indicates the three partners will pay equal shares of the flyover when they are scheduled in the future.  The current flyover cost for the county is $25,000 per year and is in the budget.

Mr. Kimmich said that on page two there is a specific paragraph that says the water district shall be entitled to terminate this agreement if…. and it lists three qualifications, and the sanitation district is entitle to terminate this agreement if… and it lists three qualifications.  There is no such paragraph for the fiscal court.  It is being asked that if this is approved, it be approved with the conditions being placed in it that the fiscal court also has the same escape clause afforded to the other entities.  All of the other three have the escape clause.

Judge Drees asked Mr. Frye how the county is billed for this item and he answered that it is in three annual increments that comes from the Northern Kentucky Area Planning Commission.  Mr. Frye said all three parties are listed in all paragraphs of the article except for that one area.

Commissioner Voelker made the motion to approve the agreement with the stipulation that the county also have the alternative of opting out of the agreement.  Commissioner Humpert seconded the motion and it unanimously passed upon the following roll call vote:  Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes. 

Handout No. 07-41

Requesting authorization of the Kenton County Fiscal Court for the revised amendment of two Community Action Commission contracts, Scott Kimmich reporting:  This contract will be using a different food provider for the assistance program and provide the transfer of $30,000 to shelter and utility costs for persons coming to the Community Action Commission for assistance.

Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker and the motion unanimously passed with the following roll call vote:  Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Handout No. 07-42

Approval of memorandum of agreement by and between Kenton County and Jack Nie, Nie's Pharmacy, for the execution of an easement of right of way for the express purpose of gaining access to a curb cut, Judge Ralph Drees reporting:  Judge Drees said he had met with Mr. Nie and he is paying $10,000 for the easement since this is necessary for him.  Commissioner Voelker made the motion for approval; seconded by Commissioner Humpert and the motion unanimously passed following a roll call vote of Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Handout No. 07-43

Requesting permission to extend the contract for food services for the Kenton County Detention Center with Aramark Correctional Services, Terry Carl reporting:  Mr. Carl said Aramark was still doing a good service and saving the county money.  The cost has gone up three percent and it is recommended that this contract be renewed.

Commissioner Voelker asked if other vendors had been looked at for this service and Mr. Carl said yes and this is the best one.  Commissioner Voelker made the motion for approval; seconded by Commissioner Humpert and the motion unanimously passed with the roll call vote of Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Handout No. 07-44

Requesting approval to award the contract for gasoline and diesel fuel for the Kenton County Fleet Department to Petroleum Traders Corporation for gasoline and Lykins Companies for diesel fuel, Ivan Frye reporting:  It was authorized that bids be taken and these were evaluated and these two companies were found to be the low bidders.  Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker and the motion unanimously passed with the roll call vote of Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Handout No. 07-45

Requesting approval to award the contract for concrete for Kenton County Public Works Department to All-Rite Ready Mix, Inc., Ivan Frye reporting:  Bids were taken this year and this company was the lowest bidder.  Commissioner Voelker made the motion to approve followed with a second from Commissioner Humpert and the motion unanimously passed with the following roll call vote:  Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Handout No. 07-46

Requesting approval to extend the contract for paving to the Eaton Asphalt Paving Company, Inc., Ivan Frye reporting:  This contract had extension provisions and the company proposed to extend it with an increase of $2.00 per ton on the asphalt and a five percent increase in trucking costs.  They are paid a per mile fee from the company to where work is being done on a road.  Commissioner Humpert made the motion followed with a second from Commissioner Voelker and the motion unanimously passed with the roll call vote of Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Handout No. 07-47

Requesting approval to extend the contract for stone to Hilltop Stone, LLC for the period of July 1, 2007 – June 30, 2008, Ivan Frye reporting:  This is an extension contract with a two percent increase for fuel costs.  Commissioner Voelker made the motion to approve with a second from Commissioner Humpert and the motion unanimously passed with the following roll call vote:  Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Handout No. 07-48

Memorandum of understanding between the Commonwealth of Kentucky Environmental and Public Protection Cabinet and Kenton County Fiscal Court for the waste tire amnesty program, Scott Kimmich reporting:  This is a contract that is entered into each year with the Commonwealth.  The county is responsible for providing multi-media advertisement of the event and having three people on site the day of the event to collect the tires.  The state pays for disposal of the tires.  The county's responsibility is the same it has been in the past and we strongly urge the passage of this contract.

Commissioner Humpert asked if these tires were recycled and Mr. Kimmich said yes.  Mr. Frye said dealers who sell tires are required to charge a fee for disposal of the tire and that money gets paid into the state and goes into the disposal fund.  This is where the funding for this project originates and sent back to the counties.  Commissioner Voelker made the motion for support followed by a second from Commissioner Humpert and the motion passed with the roll call vote of Commissioner Voelker, yes; Commissioner Humpert, yes; and Judge Drees, yes.

Handout No. 07-49

Requesting permission to convert to a grant a loan of $170,000 that was made to the Senior Services of Northern Kentucky (SSNK) in 1992 for renovation work on the former Landmark Baptist Temple purchased by SSNK to move their offices into from Fifth Street, Ivan Frye reporting:  This was called a loan at the time it was done but should have been a grant because they had no way to repay the loan.  If this is now called a grant, it can be cleared from the books and does not have to be carried over year by year.

Commissioner Humpert made the motion to approve; seconded by Commissioner Voelker and the motion was unanimously passed with a roll call vote of Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Executive Orders

Executive Order No. 07-71

Appointment of Jerry Neuhaus to the Rosedale Manor Nursing Home Board to replace Richard Noah, effective June 12, 2007:  Commissioner Voelker made the motion for approval with a second from Commissioner Humpert and the motion was unanimously approved with the aye vote.

Executive Order No. 07-72

Reappointment of Stella Herzog to the Northern Kentucky Area Development District on Aging for a period of two years, effective July 1, 2007:  Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker and the motion was unanimously passed with a vote of aye.

Executive Order No. 07-70

Request approval of reorganization of the Kenton County Treasurer's Office, Scott Kimmich reporting:  Judge Drees executed an executive order with the retirement of Mr. Frye and it was determined that it would be appropriate to realign some of the functions that had been in the treasurer's office.  The first is that information technology should be a stand alone agency and report directly to the Judge Executive's Office and to place golf course supervision under the direction of Mr. Frye in his capacity as special assistant to the Judge.

Commissioner Humpert asked if the golf course reported to Mr. Frye before and Mr. Kimmich said they reported to the Judge's office prior to this executive order.  Commissioner Humpert made the motion for approval; seconded by Commissioner Voelker and the motion unanimously passed with an aye vote.

Executive Order No. 07-73

Resignation of Renee Black from the Dispatch Center in the Kenton County Police Department, effective May 17, 2007:  Commissioner Voelker moved for approval with a second from Commissioner Humpert and the motion unanimously passed with the vote of aye.

Executive Order No. 07-74

Resignation of Richard Cecil as a parks trustee from the Department of Parks and Recreation, effective May 29, 2007:  Commissioner Humpert made the motion followed by a second from Commissioner Voelker and the motion unanimously passed with an aye vote.

Executive Order No. 07-75

Resignation of Robert Owens from the County Treasurer's Office of the County Occupational License Tax Department:  Commissioner Voelker moved for approval; seconded by Commissioner Humpert and the motion was unanimously approved with the vote of aye.

Executive Order No. 07-76

Approval of hiring of Jack Woods as a part-time park trustee in the Department of Parks and Recreation, effective May 25, 2007:  Commissioner Voelker made the motion for approval with a second from Commissioner Humpert and the motion unanimously passed with an aye vote.

Executive Order No. 07-77

Approval of employment of Thomas Gabbard as part-time hire for the Kenton County Golf Courses:  Commissioner Humpert made motion for approval with a second from Commissioner Voelker and the motion unanimously passed with an aye vote.

Executive Order No. 07-78

Approval of employment of Jerome Knochelmann as the Kenton County Treasurer, effective July 1, 2007:  Judge Drees said a process was gone through with two interviewers outside county offices in the consulting business along with Judge Drees.  Commissioner Knochelmann sat in on one interview but not on the one with Jerome Knochelmann.  Judge Drees asked Mr. Shriver how the ads were published and how the nominees were picked for interviews.

Mr. Shriver said this advertising was extended to the local media and other outside media.  Once applications were received, a follow-up questionnaire was sent out because there is a lot of technical knowledge needed for this position.  At that point all questionnaires were reviewed and applied to a point factor and it came down to three external applicants that were turned over to Judge Drees and the committee for review.

Judge Drees said three questionnaires were reviewed and after going through this step, there was an  extra step taken of going through all applications that were received and one other person was reviewed.  Everyone basically had the same qualifications and the Judge got together with the three Commissioners and they took at least half an hour with each candidate and the end result was made to hire Jerry Knochelmann.  Judge Drees asked Mr. Knochelmann to come forward and address the court.

Mr. Knochelmann said he wanted to thank the court for the process that was gone through and it made him feel good that he was chosen.  He said he appreciated the opportunity to serve the court and the county and hoped he could stand up to the court's expectations.

Commissioner Voelker made the motion to approve the employment of Mr. Knochelmann; seconded by Commissioner Humpert and the motion unanimously passed with the following roll call vote of Commissioner Humpert, yes; Commissioner Voelker, yes; and Judge Drees, yes.

Citizens Address

Ms. Carol Franzen came before the court to talk about the ball fields for knothole baseball.  An attempt was made to play a game at Mills Road Park.  Some of the fields were open but they were told they were not allowed to use them because they were strictly for the use of district 29.  It is realized that district 29 pays extra money for the insurance.  The parks department was called and they were told that district 29 has exclusive use of the park.  Some of the other districts have inner city kids that play and cannot afford to pay some of the higher fees that district 29 charges.  Basically, the question is who would be addressed or talked to about coming up with some solutions for all of the leagues in Kenton County being able to use the fields at Mills Road.

Judge Drees said a little time would have to be taken to research this problem to see what a solution would be and someone would be back in touch with Ms. Franzen.  Judge Drees asked Ms. Franzen to give to the court a list of the teams and where they are headquartered.

Mr. Kimmich said he thought the contract provided that if a team needs to use the field on a night or a day when Dixie Knothole was not using the field, they would be made available to other teams.  He said he would find out where the problem is in the contract.  Ms. Franzen was told that someone from the court would be back in touch with her.

Commissioner Humpert said Donna Yeager was there and welcomed her to the court.

Administrative Reporting

DEPUTY JUDGE EXECUTIVE-Scott Kimmich:  Mr. Kimmich said that in approving the budget, there was one sentence that was left out that could impact the operation of the treasurer's office over the year.  The court is being asked for approval to authorize the treasurer to solicit bids for any item that has already been budgeted.  If there is a budgeted item, the treasurer's office would be authorized by this motion to go to bid for any budgeted item and bring back tabulation sheets and recommendations to the fiscal court.  (See attached Resolution # 15.)

Commissioner Voelker made the motion for approval; seconded by Commissioner Humpert and the motion unanimously passed with the voice vote of aye.

Mr. Kimmich asked the court to approve a standing order authorizing the treasurer and Judge Executive's office to pay utility bills and insurance upon presentation of the claims.  Commissioner Voelker moved for approval with a second from Commissioner Humpert and the motion unanimously passed with the aye vote.  (See attached Resolution #16.)

Mr. Kimmich said the next item was to ask the court to approve the equipment line of the Department of Fleet Management for the purpose of buying a security van to be used by the jailer and/or the sheriff for the transportation of inmates.  There is only one van and Judge Drees has seen this process gone through and it is clear that a second van is absolutely essential for this function.  An amount of $30,000 is being asked for to be transferred for the fleet line item to proceed for the acquisition of this van and issuance of the purchase order in this fiscal year.

Judge Drees said when he went over and spent the morning with the jailers delivering prisoners up to the jail, there were too many to go up at one time so they have to haul some of them in cars and this is inefficient. 

Commissioner Voelker moved for approval with a second from Commissioner Humpert and the motion unanimously passed with the voice vote of aye.

COUNTY TREASURER-Ivan Frye:  Said he looked forward to working with Jerry to go forward with the programs the court wants to carry out and improve the county's standing in the community in ways that we can.  He said the county was a very nice place to work and the county is finishing 63 years with two treasurers.

Commissioner Humpert said this was his last meeting with Mr. Frye as treasurer because he could not be at the next one and wanted to thank him for his service to the county.

Mr. Kimmich said that Mr. Frye had served as treasurer for 27 years under six Judge Executives.

HUMAN RESOURCES DIRECTOR-Joe Shriver:  Said he wished to welcome Mr. Knochelmann to the county and looked forward to working with him.

COUNTY ATTORNEY'S REPORT-Stacey Hege:  Nothing further to report.

Commissioners' Reports

COMMISSIONER DAN HUMPERT-Wished to also welcome Jerry to the county and said he had known of his work for the city of Erlanger and the citizens of Erlanger always valued his work and was unhappy that he was leaving.

COMMISSIONER SARA VOELKER-Nothing to report.

COMMISSIONER KRIS KNOCHELMANN-Absent.

Judge-Executive's Report

The court needs to have an executive session to talk about lawsuits in which the county is involved.   Mr. Kimmich said the court needs to retire to executive session pursuant to KRS 61.810(C), discussion of proposed or pending litigation against on or behalf of the public agency.  There are three lawsuits that will be discussed in executive session.

Executive Session

Judge Drees advised that he would entertain a motion of the fiscal court to executive session pursuant to KRS 61.810 (c), regarding pending litigation. 

Commissioner Humpert moved approval of the recommendation to enter into executive session. Commissioner Voelker seconded the motion and upon a voice vote, all members voted aye.  There being no nays or abstentions, the motion carried.

Judge Drees called for a motion to reconvene in open session. Commissioner Humpert moved approval of the request to return to open session and Commissioner Reeder Voelker seconded the motion. Upon a voice vote roll call, all members voted aye.  There being no nays or abstentions the motion carried.

Regular Session

Commissioner Humpert moved for approval of the recommendation of the County Judge-Executive that he be authorized to proceed in seeking outside legal counsel in the insurance premium tax case to avoid the appearance of potential conflicts that may arise out of this case as it relates to the county attorney and members of his staff who have become attorney's of record in cases concerning the overall issue of the collection and remittance of insurance premium taxes. Commissioner Voelker seconded the motion. Upon a roll call vote, Judge Drees voted yes, Commissioner Humpert voted aye and Commissioner Voelker voted aye.  There being three ayes and no abstentions, the motion carried.

Adjournment

There being no further business to come before the court, Judge Drees asked for a motion to adjourn.  Commissioner Humpert made the motion; seconded by Commissioner Voelker and the motion carried with the unanimous vote of aye.