By Kathryn Reed

El Dorado County does not require a no compete clause for most employees. This proved to be a profitable turn of events for Alliant Insurance Services and York Risk Services.

When Kim Kerr started with El Dorado County as assistant county administrative officer on June 30, 2011, the contract with Alliant was for $375,000.

In November 2012, Kerr became the county’s contract administer. This meant she was in control of the Alliant contract. The compensation was increased to $470,000.

In January 2014, the compensation was increased to $510,000. By the time Kerr left in December the compensation was increased to $610,000.

Kerr now works for Alliant.

“The prior Board of Supervisors had a bad weakness of not doing background checks on high level managers that they hired. It appears that Alliant Insurance Services has the same serious weakness,” Joe Harn, county auditor-controller, told Lake Tahoe News.

For fiscal year ending June 30, 2014, the state controller’s office in its field review report of the county’s cost allocation plan found that employees were overbilled by more than $5.2 million for the health benefit plan.

Kerr was responsible for managing this program.

“A refund must be processed and refund given to all funds or departments, employees and retirees that contributed to the excess in the Health Benefit Program,” the state report says.

That refund has further contributed to the county’s fiscal woes.

The county in November 2011, under Kerr’s watch, signed a two-year contract with York for $21,750 per month. In November 2013, the county signed a three-year contract with York for a slightly higher rate. It increases every month.

On June 30, 2012, Kerr hired Sherri Adams. The two knew each other from working on California State Association Counties Excess Insurance Authority committees.

Adams left El Dorado County on Oct. 24, 2014. Her last title was principal risk management analyst, making $40.73/hour at step three. She now works for York.