Custer County Commissioners abandoned their original health insurance reinsurance provider over offshore banking complications and approved Berkeley Captive at $856,983 during their January 14 meeting, making a last-minute decision required by a January 15th deadline for retroactive coverage. The board also authorized spending $81,403 in county funds for a new $178,403 Peterbilt water truck after investigations revealed used vehicles had insufficient axle ratings and questionable maintenance histories. Commissioners approved $249,623 in accounts payable including $51,000 for emergency dispatch services and $23,000 for document scanning and website hosting. The board addressed federal funding threats to early childhood programs affecting five states and received updates on multiple infrastructure projects including a $180,000 courthouse sidewalk project and Highway 69 reconstruction from Hillside to Gardner.
Insurance Provider Emergency Switch
The county was forced to abandon Captive Resources despite its lowest cost of $813,000 because the provider required $42,488 in payments to offshore accounts that the county bank cannot process. Bob Smith from Human Resources and insurance consultant Brian Hilliard presented Berkeley Captive as the solution with domestic banking and $58,455 in collateral requirements rather than capital investment.
Commissioners considered four options during the emergency evaluation: continuing with Captive Resources despite offshore banking issues, going directly with HCC domestic reinsurer which rejected single-group policies, alternative captives Berkeley and Pareto, or standalone carrier policies costing approximately $1 million.
Berkeley makes the county a member instead of owner to address County Attorney Dan Slater’s constitutional concerns about counties purchasing corporate stock under Colorado law. Pareto required capital investment making the county an owner, potentially violating constitutional restrictions. The decision had to be made by January 15th for retroactive January 1st coverage.
Commissioners unanimously approved the switch after Hilliard worked to develop alternatives in the short timeframe following the offshore banking discovery during contract finalization. The 12-month Berkeley contract with 3-month tail coverage aligns with the county budget cycle. Smith will work with Hilliard to begin setup immediately.
Water Truck Purchase Approved
Road and Bridge supervisor Vince Koch presented the need for a new Peterbilt water truck from Custom Trucks in Denver costing $178,402.68, requiring approximately $81,403 in county funds beyond available insurance money. Used truck investigations revealed 1990s-2000s vehicles had only bottom-side overhauls rather than complete overhauls.
Koch explained used trucks were converted tractor-trailers with insufficient 14,500-pound front and rear axle ratings. The new truck features 20,000-pound front and 41,000-pound rear axle ratings, making it legal to haul 4,000 gallons on county roads and state highways.
Commissioner Kander confirmed Road and Bridge has capital improvement funds available. The purchase addresses equipment replacement needs while ensuring proper load capacity for county operations.
Federal Funding Threats
Commissioner Paul reported funding challenges for Colorado Department of Early Childhood programs after a federal judge issued a two-week stay on cuts. Affected programs include Child Care Development Fund, Colorado Child Care Assistance Program, TANF, and Social Services Block Grant.
A staff member participating remotely clarified federal warning letters targeted only five states—Colorado, Illinois, California, Minnesota, and New York—not all states as initially reported. The clarification provided important context for understanding the scope of federal action.
Paul also reported the Fair Board is ahead of schedule for 2026 preparations despite ongoing funding uncertainty at state and federal levels.
Major Financial Approvals
Lucas presented the accounts payable report totaling $249,623.03. Major payments included $51,000 to Combined Regional Communications for first quarter emergency dispatch services and $23,000 to CIPPA for 2026 dues covering document scanning and website hosting.
Additional significant payments included $18,330 for airport fuel, $12,705 to Fremont County for December inmate housing, $12,608 for the District Attorney’s February budget, $10,540 to PDS for IT computers, $10,000 to Cypher Enterprises for Road and Bridge materials, $8,000 in Upper Arkansas Area Council of Government dues, $6,400 to LexiPol for Sheriff’s 2026 policy manual, and $6,346 for Road and Bridge supplies.
The board also approved payments to Schneider Geospatial for assessor website and mapping hosting. Commissioners unanimously approved the accounts payable report.
Infrastructure Projects Advance
Commissioner Kander reported the courthouse sidewalk project will go to bid in spring with $180,000 remaining from $300,000 total funding including an additional $50,000 allocation. Highway 69 from Hillside to Gardner is scheduled for reconstruction with safety improvements through the Central Front Range Transportation Planning Region.
Buildings and grounds work includes dock improvements between jury room and main hall for temperature control. Old split unit materials are being removed from roofs in preparation for the new roof project going to bid in spring. The county is seeking generator bids for Wet Mountain and other locations, with courthouse roof cost estimates still needed.
Workforce housing received a $50,000 planning grant to make the project shovel-ready, with staff and Planner West non-profit developer conducting environmental studies and surveys. A $750,000 Family Resource Center grant from Colorado Opiates Abatement Council is being submitted.
Kander attended two Community Wildfire Protection Plan meetings—one via Zoom and one in-person in Gardner with approximately 30 attendees—addressing wildfire prevention and mitigation strategies.
Emergency Services and Airport
The board renewed Colorado Incident Qualification System terms allowing qualified county personnel to respond to fires through the Division of Fire Prevention and Control. Staff members are building credentials in the system though none are currently qualified. The account requires no charge from the state division.
Airport Board public officials liability insurance dropped dramatically from $7,900 to $1,700 after Gallagher Insurance reviewed actual airport budget figures instead of total county budget. The board is updating capital investment plans with $16 million in state funding available for airports. The county may rearrange priorities to include lighting improvements before other runway work.
Administrative Actions and Personnel
Commissioners unanimously approved minutes from four previous meetings: December 15 special meeting, December 18, December 31, and January 7. The board addressed various administrative issues including accounts payable process reviews and ACE account examinations.
Commissioner Kander clarified the undersheriff is on medical retirement through February, after which the sheriff will appoint an interim replacement pending permanent hire. The clarification addressed community rumors about the undersheriff situation.
Issues with Fair Board accounts using county tax ID numbers but operating outside county jurisdiction need IRS resolution. Contract renewals are needed for various positions including accounting and finance roles.
A tour with court system representatives examined potential break room use and future courthouse space needs. County Attorney Dan Slater reported no legal items requiring board action at the meeting.
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