KENTON COUNTY FISCAL COURT

M I N U T E S

MAY 9, 2006, 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, Barbara Black and Adam Koenig; Deputy Judge Executive Scott Kimmich; County Attorney Garry Edmondson; County Treasurer Ivan Frye; Human Resources Director Joe Shriver; Emergency Management Director Ed Burk; Police Chief Bill Dorsey; Public Works Director Joe Murphy; Jailer Terry Carl; County Engineer Charles Meyers; Special Projects Manager Ralph Bailey; Assistant Police Chief Ed Butler; Court Reporter Cathy Johnston; and Guests.

Invocation and Pledge of Allegiance

The invocation was given and pledge of allegiance led by Commissioner ­Barbara Black.

Approval of Minutes

Judge Drees asked the court for approval of the minutes dated April 25, 2006.  Commissioner Black made the motion for approval with a correction previously given to the clerk; seconded by Commissioner Humpert.  The motion was unanimously approved with the vote of aye.

Delegations

Judge Drees said the first issue to become before the court is health care evaluation.  He said an Ad Hoc Committee had been put together that had met a number of times.  Judge Drees said three members of the committee were in the courtroom, Joe Michaels, George Sparks, and Ralph Bailey.  The person who put the plan together was Mark Morgan who is here to give the presentation.

Health care evaluation, Mark Morgan, Sherrill D. Morgan & Associates, reporting:  Mr. Morgan said that Lisa Stamm, staff attorney and the person who evaluates the programs for legalities and plan design, was also in court with him.  Also, focus groups of county employees were put together for input into the plan that had an impact on what is being presented.  The county is putting together a three-year program and the goal is to control future costs.  Sherrill D. Morgan & Associates specializes in Kentucky governments and the county plan has been compared to other government plans.  The unit cost took into account all of the employees within the county, took the total gross expenses for the health care plan and divided it by the total number of employees.  In 2000, it was $6,467 and this year the costs are estimated to be $10,497.  This reflects an average inflationary rate of 13.8 percent.  At 13.8 percent average inflation, the plan costs would double in six years.  The 2005 gross estimate is a $3,600,471 budget, in 2006 if nothing is done, it would be $4,097,478, which means that in six years it would be close to $8,000,000.

The plan as it stands today is $100 for a single plan and $200 for a family and the benefit has a lifetime cap on it where no employee, once they have paid out $6,250, would have to pay the deductible anymore.  When all that is owed is $100 for a year, it is hard to get to $6,250.  Currently, the plan is also an 80/20 office visit and an inpatient and out patient stay at 100 percent and emergency room at 100 percent.  The emergency room cost less than an office visit and the focus group realizes this problem.  The prescription drug plan after a $50 deductible is a flat 20 percent for every drug.  There is only one cost for all drugs and the other aspect of the plan is that employees may have to pay $1,000 out of pocket on a single basis plus the deductible in a year for expenses.

On a biweekly payroll, the average employee pays $24 for single coverage and $91 for family coverage.  These are the plans that are recommended to the court to be adopted for the employees.  There is a standard and a traditional plan giving the employees a choice between two different plans.  The standard plan is the one that will cost the least and the traditional plan will cost more because it is based very much upon the current plan.  The employee can have a plan similar to the current one.  If an employee has an emergency room visit to the hospital, it is $100 deductible, but if the patient is admitted, they do not pay the $100.  After the employee pays the deductible there is no more out-of-pocket expenses unless they go for an office visit or the emergency room visit.  The drug plan is $10 for a generic drug or an employee can also purchase a brand preferred or a non-brand preferred.  An employee will not pay more than $100 for a brand preferred drug.  For a non-preferred drug, an employee will pay 25 percent of the drug plus an additional $20 and this also stops at $100.

For over the counter drugs an employee who is on a drug for an allergy or a stomach pill can go buy Claritin or Prilosec with a prescription from a doctor for $5 for a full month's supply.  The plan will be starting over on July 1 that technically started on January 1, and this is to tell you that every employee will be given credit for any deductible they have met toward the new deductibles.

On a biweekly basis for the standard plan an employee will pay $12 out of their paycheck and after taxes this will be $8.56.  Taxes are not paid on the $12.  For an employee and spouse, the charge will be $21.41, $18.11 for an employee and child, and $31.28 for a family.  The focus group brought forth an interesting idea in that they felt if there were smokers, they should have to pay for the health care if they smoke, so a 15 percent difference can be charged for smokers in premium.  The charge is $13.80 for smokers and $50.40 for a family.

This is a new benefit and the county realizes that the deductibles and premiums put forth would be an expense to the employee that was different than before; therefore, the county has instituted an employer funded flexible spending account.  Every employee will be given $175 and a family will be given $375 if they participate in the wellness program that can be spent on any qualified medical expense such as glasses, contacts, dental expenses, etc.  The spouse must also participate in the plan if they are to receive the $375.  This program is one where the employee talks to a nurse and gives the medical professional some blood for which they can be tested for all the things they should be tested for, fills out a questionnaire and talks to the professional, and this information is shared only with the employee and the medical professional.  This information is not given to the county.  Also, the standard plan must be selected which is the less expensive plan.  To receive these amounts if the employee chooses not to participate in the plan, they must have access through another group plan such as a spouse's employer plan.

Judge Drees said the flexible spending account plan will be tried for one year.  The police department has to be involved in an exercise program and it is assumed that this will automatically qualify them.  Mr. Kimmich said the police department would have to do the other things that other employees have to do to qualify for the flexible plan.  Judge Drees asked what else the employee would have to do and Mr. Morgan said there would be an ongoing consultation with a professional, and if they are high risk or disease management situation, they would be managed by a medical professional in addition to participating in the wellness program.  This is more of a care situation and the goal here is to reduce health care costs in the future by keeping an employee healthy as long as possible.

Mr. Shriver said he had been to presentations regarding the wellness program put on by Health Span and the employee receives a one sheet page of results from the tests.  The wellness program will generate a comprehensive report taking in all factors and risks assessments and it will give facts as to what an employee's risks really are.  Another factor is that if an employee has risks they do not know about, the nurse also follows up and calls the employee to do follow up.

Judge Drees asked for the cost of the program and Mr. Shriver said it is applied to the Health Span membership fees and said it was annually $10-11,000.  Mr. Morgan said there is a performance guarantee within the contract that says that if a certain level of results is not seen, then the county will get back a certain portion of that expense.  The normal average for return on investment of the wellness program is about three years.

Judge Drees said the charge to employees for this plan will start on September 1.  For employees at the low end of the spectrum on salary, a one time only increase will be done to offset the cost of the plan.

Commissioner Black asked if Health Span was a local company and Mr. Morgan said it is based in Cincinnati, Ohio, that is a hospital-owned system the county uses to receive physician discounts in the network.  There are also local physicians and nurses on staff to perform these functions.  There may be some duplication of services but this would be for a very small portion of the population.  Commissioner Black asked where an employee would go to receive these services and Mr. Morgan said the nurses come to the location.  Commissioner Black asked when the consultation takes place and Mr. Morgan answered that this will be when the results come back.  There will be additional follow up to see that the employee is doing what was discussed in the initial consultation.  Commissioner Black said this information should be sent to the employees' personal physician and this should be a requirement.  Mr. Morgan said this would be made a part of the application and the health professionals will report to the county the number of persons who have a disease but the county will not know who the persons are by name.  All of the information is brought together to make sure the problems of the county are addressed and the programs that are directed and used are directed toward the employees for their benefit.

Commissioner Humpert said he would assume that the consultation would bring in some health education depending on the problems that are found.  Mr. Morgan said it is important to remember that Health Span is not an insurance company but a doctor and hospital system.  The ownership is through the Mercy Hospital system but the partnership is with every hospital in the Cincinnati marketplace.  Mr. Morgan said they want to see an impact within the first year.  A performance guarantee is put in within the first year and the industry return on investment is three years on the average.

Commissioner Black asked if a percentage in refund was indicated in writing and Mr. Morgan said he thought it was 50 percent of the fee that is charged to the county that is returned if they do not meet the performance guarantee.

Commissioner Koenig said he thought the wellness program was excellent and the concept of participation is also a great idea.  He asked if it was known what the cost of raises and social security, etc. is going to cost.  Judge Drees said it was estimated to be approximately $90,000.  They will also get the normal cost of living raise on July 1.  Mr. Shriver said the $90,000 was more of a budgeting figure and the last estimate was closer to $75,000 which is the salary itself and does not take into account any FICA, etc.

Commissioner Black said the research that went into this and the focus groups were also appreciated.  She also said she thought this was forward thinking and also advanced of what is being offered and we will get the return that is hoped.  Education and information is power and a step in the right direction and the savings will balance out more than any added expense.

Judge Drees said the committee met a number of times and did a great job and that he appreciated the work they did.  He said the court should now vote on Resolution No. 06-12, Approval of health care plan revisions.  Judge Drees read the resolution aloud to the court.  Commissioner Humpert made the motion for approval; seconded by Commissioner Black, and the motion unanimously passed upon roll call vote.

Commissioner Humpert said he was very pleased with the work the group did and that it was very innovative and a lot of hard work and thought went into it and that he was pleased to vote to pass the resolution.

General Business

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

Resolutions

Resolution No. 06-11

Approval of flexible spending account plan amendment, Joe Shriver reporting:  This is basically an amendment for the third party administrator.  A short plan year was done so the county could reflect possible changes and we are doing another short plan year so that we can get back on the calendar year.

Commissioner Koenig made the motion for approval followed by a second from Commissioner Black.  The motion was unanimously approved upon roll call.

Ordinances

Public Hearing

A hearing for LGEA county road aid funds contained within the county budget, Ivan Frye reporting:  This is a state requirement that prior to the adoption of the budget, the county conducts a public hearing which has been duly advertised.  Comments were solicited from the public as to  objections on the county's use of the road aid funds.

Judge Drees asked for a motion to open the public hearing.  Commissioner Black made the motion; seconded by Commissioner Humpert and the hearing was opened by the unanimous vote of aye.  Mr. Frye read into the record that the county anticipates the potential receipt of $395,000 in county road aid monies and $30,000 in local government economic assistance funds.  These funds will and must be spent on county roads and there is a list of roads that the public works superintendent has already selected for improvement.  If there is any person present that has a comment on these roads or wishes additional information, they should so state it.  No comments were received and none were received in the Judge's office.

Judge Drees asked for a motion to close the public hearing and Commissioner Humpert made the motion; seconded by Commissioner Black and the hearing was closed with the unanimous vote of aye.

Ordinance No. 225.43

First reading of an ordinance setting the county budget for Fiscal Year 2006-07, Ivan Frye reporting:

Mr. Frye said the budget is one that is relatively even with last year's money.  The total shows that it is $12,000 less because KACo advance revenue program participation is not shown.  The county may or may not participate in this program and it does not have to be shown in the budget.  In the past, it appeared as both revenue and expenses so the budget is almost the same as it was last year.  Significant cuts have been made in areas where they could be made because of certain areas going up.

Commissioner Black asked if the commissioners could be e-mailed more information from the court instead of receiving hard copies.  Mr. Frye said the claims list could be e-mailed to the commissioners and all individual orders could also be e-mailed.

Mr. Kimmich said that sufficient funds have been budgeted and that if it is the pleasure of the court, we could have paperless meetings with the exception of the documents submitted by outside third parties.  Anything generated by the county could go electronically to the commissioners and the clerk could control what is coming up next on the agenda on a monitor.

Judge Drees said this was being read by title and summary today and it would be voted on at the next meeting.  Commissioner Black asked for the date of the second reading and it was announced that the next meeting will be on May 23.

Commissioner Humpert said there would be a problem with some of the meetings in June and Mr. Kimmich said the schedule would be worked out and an announcement will be made at the May 23 meeting.

Consent Agenda

Claims List-County Treasurer Ivan Frye:  Since there were no questions or comments on the claims list, Judge Drees said warrants will be issued and the bills paid.

Administrative Actions

Handout No. 06-22

Approval of county clerk's claim for calculation of vehicle tax bills, Ivan Frye reporting:  This is an annual requirement.  By law the clerk receives a fee for the preparation of the tax bills.  The court must approve the payment of its own share and its approval is recorded in the minutes and forwarded to the state.  The clerk also receives the same amount from the state.

Commissioner Koenig moved for approval with a second from Commissioner Black and the motion unanimously passed with the aye vote.

Handout No. 06-23

Permission to surplus various items in the detention center:  Commissioner Black made the motion for approval; seconded by Commissioner Humpert and the motion unanimously passed with vote of aye.

Executive Orders

Executive Order No. 06-32

Approval of hiring of various employees as part-time and seasonal hires for the golf courses:  Commissioner Humpert made the motion for approval; seconded by Commissioner Koenig.  The motion unanimously passed with the vote of aye.

Executive Order No. 06-33

Acceptance of resignation of Edward Burk as the Director of Homeland Security and Emergency Management, effective May 16, 2006:  Mr. Burk said he was leaving to become the Chief of Police for Cold Springs.  Commissioner Humpert congratulated him on his new appointment and said he would be missed.  Commissioner Humpert made the motion to accept the resignation; seconded by Commissioner Black and the motion unanimously passed with the vote of aye.

Executive Order No. 06-34

Acceptance of resignation of Roswald Richardson as license inspector in the treasurer's office, effective April 29, 2006:  Judge Drees said Rollie was moving back to Arkansas with his family.  Commissioner Koenig made the motion to accept with a second from Commissioner Humpert and the motion unanimously passed with the aye vote.

Executive Order No. 06-35

Appointment of William Dorsey as Director of Public Safety and Homeland Security and Emergency Management, effective May 17, 2006:  Mr. Kimmich said that sometime ago the animal shelter, the public safety communications, and the county police was placed under an umbrella agency, the Department of Public Safety.  Homeland Security and Emergency Management was allowed to stand as an independent agency.  Colonel Burk's decision to leave left the county with a void of needing someone with administrative skills to step in and run the agency and to take it to the next step to make first responders more ready to deal with the issues that need to be dealt with in that area.  The best way to do this was to move the Department of Homeland Security and Emergency Management under the Department of Public Safety with Colonel Dorsey at the helm and to promote his assistant chief to the rank of chief which will allow the two of them to work closely together to make the county police the first responders trained to deal with specific issues that may affect any city in Kenton County and not just the unincorporated areas.  We believe the working relationship that Chief Dorsey and Chief Butler have will serve the county's best interests in the long term and will be cost efficient.

Commissioner Humpert asked what Chief Dorsey's new title will be and Mr. Kimmich said the working title would be the Director of Public Safety, but because of certain quirks in state statutes he has to have the Director of Homeland Security and Emergency Management title in order to receive partial reimbursement for his salary.

Commissioner Humpert said this was a very creative and innovative way to approach this issue.  The potential is to create something that is new that can really serve the citizens of Kenton County well.  Commissioner Humpert made the motion for approval; seconded by Commissioner Koenig and the motion unanimously passed with the vote of aye.

Executive Order No. 06-36

Appointment of Edward Butler as Chief of Police for the Kenton County Police Department, effective May 17, 2006:  Mr. Kimmich said that five years ago the previous police chief stepped down and Colonel Burk was asked to stand in as the acting chief which he admirably did.  At that time we had a relatively young department and those people with rank were relatively young and they needed more training to become ready to step in and be police chief.  One of the charges given to Colonel Dorsey on the day he was sworn in was to prepare someone to step in and fill his shoes.  When Mr. Butler was interviewed, who was at that time a Captain, he was asked the question that if the chief stepped off the curb tonight and got hit by a TANK bus, are you ready to become chief and his answer was no, but I can get ready.  Over the past five years, Colonel Butler has seasoned well and has demonstrated in the face of adversity the leadership skills it will take to run the department.  Colonel Butler worked well with the men in dealing with the loss of Sgt. Kevin Spille and also with Kevin's family during Chief Dorsey's absence.  I was able to go to Judge Drees and concur without any reservations that Colonel Butler be given this position.

Commissioner Humpert made the motion for the appointment; seconded by Commissioner Black and the motion unanimously passed with the aye vote.

Judge Drees congratulated Colonel Butler on behalf of the court and said he knew that he would do a good job.

Citizens Address

There were not any citizens present that wished to address the court.

Administrative Reporting

DEPUTY JUDGE EXECUTIVE-Scott Kimmich:  Mr. Kimmich said that when you look on the documentation received from the State Revenue Cabinet, the Director of Property Assessments, Beth Rossmore, who served as a Deputy PVA in Kenton County over a period of almost 30 years of service, name is on the documents coming from the state and it is nice to find one of our own heading that division.

COUNTY TREASURER-Ivan Frye:  Nothing else to report.

HUMAN RESOURCES DIRECTOR-Joe Shriver:  Nothing to report.

COUNTY ATTORNEY'S REPORT-Garry Edmondson:  Nothing except that the court needs to go into executive session.

Commissioners' Reports

COMMISSIONER BARBARA BLACK-Wanted to once again thank everybody for their participation in the recycling effort for the animal shelter and raising funds for the adoption center.  Also, encouraged everyone to consider bequeathing funds through their will or in memory of a loved one so that the county can provide a facility they can be proud of where more animals can be adopted and obedience training can be held, and perhaps, a low cost spay and neuter clinic for citizens who cannot afford to have this done.  She also said she looked forward to recognizing these individuals at a future meeting.

COMMISSIONER DAN HUMPERT-Wanted to compliment the Judge and the staff for the work on the budget.  Also, said he thought the two innovative programs that came out today would definitely help the budget.

COMMISSIONER ADAM KOENIG-Said he also felt the same way as the other two commissioners.

Judge-Executive's Report

Nothing further to report.

Executive Session

Judge Drees asked for a motion to go into executive session pursuant to KRS 61.810, Subsection (1) (C).  Commissioner Humpert made the motion; seconded by Commissioner Black and the court went into executive session with the unanimous vote of aye.

The motion was made by Commissioner Koenig to reconvene in open session and Commissioner Humpert seconded the motion.  Upon a voice vote, all members present voted aye.

Adjournment

The motion was made by Commissioner Black with a second from Commissioner Humpert to adjourn the meeting.  Upon a voice vote, all members present voted aye and the meeting was adjourned.