BOARD OF DIRECTORS MEETING MINUTES October 12-13, 2018 (DRAFT)
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1 BOARD OF DIRECTORS MEETING MINUTES October 12-13, 2018 (DRAFT) The Board of Directors convened at 2:00 p.m. on Friday, October 12, at the Courtyard by Marriott, Carolina Beach, NC with President Larry Phillips presiding: OFFICERS PRESENT President Larry Phillips, Surry County President-Elect Kevin Austin, Yadkin County 1 st Vice President Ronnie Smith, Martin County 2 nd Vice President Frank Williams, Brunswick County Immediate Past President Brenda Howerton, Durham County Executive Director Kevin Leonard DIRECTORS PRESENT District 1 Director District 2 Director District 3 Director District 4 Director District 5 Director District 6 Director District 7 Director District 9 Director District 10 Director District 11 Director District 12 Director District 13 Director District 14 Director District 15 Director Environment Chair General Government Chair Human Services Chair Justice and Public Safety Chair Public Education Chair Joseph Winslow, Jr., Pasquotank County Ed Booth, Beaufort County Mark Price, Onslow County Jonathan Barfield, New Hanover County Tony Hunt, Hoke County Jerol Kivett, Sampson County Viola Harris, Edgecombe County Karen Howard, Chatham County Louis Gregory, Moore County Nate Hall, Caswell County Judy Klusman, Rowan County Mike LaBrose, CaldwellCounty Vern Grindstaff, Mitchell County Johnny Hutchins, Cleveland County Tracey Johnson, Washington County* George Dunlap, Mecklenburg County Gloria Whisenhunt, Forsyth County Kitty Barnes, Catawba County Ronnie Beale, Macon County Darrell Frye, Randolph County Fred McClure, Davidson County Blake Vance, Avery County Tare T Davis, Warren County Renee Price, Orange County Jessica Holmes, Wake County Trevor Fuller, Mecklenburg County Randy Thompson, Brunswick County Allen Thomas, Hoke County Bob Byrd, Alamance County Tammy Lee, Bertie County Gordon Wilder, Vance County
2 Tax & Finance Chair Legislative Goals Co-Chair Legislative Goals Co-Chair Managers Representative-Nonvoting THOSE ABSENT District 8 Director District 16 Director District 17 Director Agriculture Chair Trustees Representative Marshall Faircloth, Cumberland County Johnnie Carswell, Burke County Tracey Johnson, Washington County* Craig Honeycutt, Wayne County Victor Hunt, Warren County Norris Gentry, Madison C.B. McKinnon, Cherokee County Eddie Settle, Wilkes County Ray Jeffers, Person County Glen Webb II, Pitt County Ann Holton, Pamlico County GUESTS Lauren Williams, Johnson Lambert & Co. LLP Andrew Farris, Johnson Lambert & Co. LLP Jackie Newton, Pender County Commissioner Chris Coudriet, New Hanover County Manager Rob Zapple, New Hanover County Commissioner Board Convenes: Welcome and Introductions President Phillips called the meeting to order at 2 p.m. and recognized Immediate Past President Brenda Howerton to give the Invocation and lead the Board in the Pledge of Allegiance. Swearing In of Board of Directors Executive Director Kevin Leonard was called upon to issue the oath of office and swear in new members of the NCACC Board of Directors. President s Report President Phillips thanked all Board members for their willingness to serve on the board. He charged Board members to take the time to talk, listen and build relationships, get to know each other s story and what is happening in each other s counties and to have a great time on this Board, noting that he has made memories he will cherish a lifetime. NCACC Board Orientation Executive Director Kevin Leonard and Deputy Director/General Counsel Amy Bason led the Board through orientation, which included an overview of the Association s internal structure and short presentations by each of the Management Team members: Sara Mogilski, Chief Operation Officer who oversees Operations; Jason King, Director of Education and Conferences and part of the Operations team; Charlie Eaton, Deputy Director of Risk Management who presented on behalf of Director Michael Kelly; Johanna Reese, Director of Government Relations, which is part of the Policy team; and Amy Bason, Deputy Director and General Counsel who oversees the Policy team. Board members were also given handbooks and resources that explained their roles on the Board, resources available to them, and important dates of engagement throughout the year. Learning Library Associate General Counsel Paige Worsham previewed an exciting new initiative, the Learning Library, which will be hosted on the Association s website. This resource is aimed at providing in depth policy
3 resources in multimedia. The vision of the Learning Library is to house easily accessible research on several topics presented in different formats a research paper, a short synopsis, a video and an audio recording for each topic. The Policy and Communications teams are building out the site and hope to launch it in the next few months. This initiative will help forward the strategic plan by providing relevant information on county issues to help empower counties to be effective voices at all levels of government. Presidential Initiative President Phillips previewed his Presidential Initiative which will focus on building leadership skills. The goal of this initiative is three-fold: to provide resources for current leaders to help them be more effective; to help create more pathways for young leaders into careers in local government; and to help educate youth on the benefits of local government. President Phillips outlined his vision in a memo which is available to Board members for their review. The Board meeting recessed at 5:05 p.m. The Board meeting is scheduled to reconvene Saturday, Oct. 13 at 8:00 a.m. at the Courtyard by Marriott. Day 2: Saturday, October 13 The Board of Directors Meeting Reconvened at 8 a.m. Board Business: Approve Meeting Minutes President Phillips asked for any discussion or changes to the minutes from the August 22, 2018 meeting. Action Taken: With no changes offered, President Phillips acknowledged first and second motions to approve the minutes. The minutes were unanimously approved. Officer Vacancy Discussion The Executive Committee presented on the discussions they ve had about the upcoming vacancy on the Committee in the President position, once President Phillips leaves elected office in December. It is up to this Board to set how the vacancy is treated and there was a memo that provided historical context for how the Association has proceeded in the past. The Executive Committee recommended that the Association follow precedent and keep the position of President vacant and ask the president-elect to serve as acting president. President Phillips also indicated that he would be appointing a Bylaws Committee to review the Association s constitution as it relates to vacancies and will ask that they determine if any changes should be presented to the Board and membership for consideration. A motion was not needed for President Phillips to appoint the Constitution and Bylaws Committee due to article 5, section 2, as that is an authority the President has. Action Taken: A motion was made and seconded to follow the recommendation that the president-elect will serve as acting president in the absence of a president and that the office of president remains vacant. The Motion passed. US Attorney Subpoena Update Deputy Director and General Counsel Amy Bason gave a brief presentation on the status of the US Attorney s August subpoenas of 44 counties and the State Board of Elections. The Association has been working closely with county attorneys, the State Board of Elections, and the NC Attorney General s office on how to proceed given the unprecedented nature of the subpoenas and truncated timeline for compliance. After walking through the timeline of events and actions that have been taken over the last two months, Amy informed the Board that the deadline for the subpoena is extended to January 2019 and that there is no expected action from counties to comply with the subpoena until after the upcoming November election. Regardless, the potential burden on counties to comply with the subpoena is
4 unprecedented and NCACC is working with the 44 affected counties to gather information on the burden of production. The NC Attorney s General office has confirmed that it will be acting on behalf of the state and all affected in this matter. The Association will continue to engage on this issue and will report back as the situation evolves. Government Relations Update Government Relations Director Johanna Reese and Legislative Counsel Adam Pridemore presented on the latest updates at the General Assembly, which called an extra session on October 2 to address Hurricane Florence needs. During the special session, they approved a Hurricane Florence disaster recovery fund, which appropriated $56.5 million (HB4). Also included were election provisions, including delayed voter registrations and relocation of polling locations damaged by flood, among other measures aimed at lessening the burden of recovery and providing more state resources for recovery efforts. Legislators plan to return October 15 to focus on any additional appropriations needed for hurricane disaster recovery. The Association surveyed affected counties to assist the General Assembly and Office of State Budget and Management to assess the affected counties needs. Johanna also presented on the upcoming November election, when all 170 General Assembly seats are up for election, with most seats in contested races. There are also six constitutional amendments on the ballot. The General Assembly is set to return to Raleigh shortly after the November elections. In the November continuation of the short session, legislators can take action on the constitutional amendments that may pass and can take up any issue at that time. Adam Pridemore reviewed the Association s legislative goals process. The deadline for submitting goals was extended to October 5 due to Hurricane Florence. The Association received 235 goals from 30 counties. An requesting boards submit proposed federal goals went out Friday, October 12. Both the state legislative goals and the federal goal proposals will be reviewed at the Board of Directors December meeting, ahead of the Legislative Goals Conference in January. The Board took a 15-minute break at 9:45. Hurricane Florence Update and Q&A The Board welcomed a panel of Commissioners and a County Manager from counties impacted by Hurricane Florence: Commissioner Jackie Newton of Pender County, Commissioner Rob Zapple and County Manager Chris Coudriet from New Hanover County, and Brunswick County Chair and NCACC Second Vice President Frank Williams. Each panelist presented on how the county was impacted by the storm, updated the Board on their recovery efforts and highlighted the continued challenges as they looked towards rebuilding. The Association stayed in close contact with county and state officials as the storm approached and in the immediate aftermath and served as a resource for counties by posting pertinent recovery relief effort information on its website and assisting counties in securing recovery and relief resources at the state and federal levels. The Association will continue to advocate for counties to secure state and federal funding for recovery and will be available to affected counties for additional support as needed. NCACC Finance Report, Audit Report, Fund Balance Discussion August financials show a surplus of $329,523. Expense variances are attributable to timing. The Association is in good financial shape. Action Taken: There was a Motion and seconded to approve the finance report. The motion was approved.
5 NCACC Audit Report Lauren Williams and Andrew Farris with Johnson Lambert & Co. presented the audit report. With a clean audit, there is typically no internal control weakness, as was the case this year. The statement of cash flows were reported as positive. There were no significant changes in policies from last year. There was one audit adjustment due to the Coates building impairments. There are new reporting standards for financial statements for not for profit entities, in which we will see a different breakdown of expenses. Johnson Lambert staff will meet with Elizabeth and Scott to review the new guidelines that are set to come out in 2019 and Action Taken: After discussion, there was a motion and second to approve the audit report as presented; the audit report was approved. NCACC Fund Balance Discussion Based on audit numbers, the recommendation on how to disburse the surplus amount of $367,006 due to the write-off of the Albert Coates building -- is as follows: $20,000 to the NACo 2019 fund in the event we have a candidate; $48,525 to Education, Conference and Leadership Training; $83,250 to the Capital Reserve; and $215,231 in Contingency Reserve due to Medicaid transformation and expected changes with the EMS Medicaid program. Action Taken: After discussion, there was a motion and second to accept the recommendations to the fund balance as presented. The motion was approved. Conclusion and Adjournment The next meeting will be December at Research Triangle Park. In closing, President Phillips remarked that it has been his honor and privilege to serve, he has tremendous confidence in this Board moving forward, and that we ll always have a friend in him and wished everyone Godspeed. A motion and second were made to adjourn the meeting at 11:44 a.m.; the motion was approved. Larry Phillips President Kevin Leonard Executive Director
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