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BE IT REMEMBERED, that the White County Commissioners held a regular meeting on August 20, 2007, at 8:00 a.m., in the White County Courthouse, 2nd floor, Commissioners’ Conference Room.

Commissioners’ present was: President John C. Heimlich and Vice President Steve Burton. Commissioner Ron Schmierer was absent. Also present was the White County Auditor Jill Guingrich, White County Attorney George Loy and the Commissioners’ Assistant Donya Tirpak.

Commissioner Heimlich called the Commissioners’ meeting to order.

MINUTES

  • Commissioner Burton made a motion to approve the minutes as presented for the August 6, 2007, meeting, seconded by Commissioner Heimlich. Vote: Unanimous

PAYROLL

  • Commissioner Burton made a motion to approve payroll as presented for the August 27, 2007, payment, seconded by Commissioner Burton. Vote: Unanimous

SUPPLEMENTAL AGREEMENT NO. 1 FOR CR 50 EAST

Don Ward, Representing H. Stewart Kline and Associates, appeared before the County Commissioners presenting them a Supplemental Agreement No. 1. for County Road 50 East. The new agreement covers the following:

WHEREAS, the COUNTY and the CONSULTANT did on April 2, 2007, enter into an Agreement for Design Services for the construction of County Road 50 East, and

WHEREAS, the COUNTY now desires to amend the AGREEMENT to include

  • Revision of the roadway alignment to accommodate the shift of the VeraSun railroad spur location.

  • Design of a new culvert crossing of the Diener Ditch required due to the roadway shift

  • Preparation of a separate set of contract documents for the construction of the CR 50E – US24 and the CR 100W – US24 intersections

WHEREAS, the COUNTY desires the CONSULTANT to provide said Additional Engineering Services enumerated, and

NOW, THEREFORE, it is agreed by and between the parties hereto as follows:

PART IV COMPENSATION, Paragraph 3 is amended as follows:

  1. The total compensation paid the Consultant for design services shall not exceed $78,000 unless approved in writing by the COUNTY.

  1. In addition the Consultant shall be reimbursed for outside services at the approved fees established through the solicitation of said services. The estimated total costs of outside consultants, geotechnical and survey services is $30,000

PART III OBLIGATIONS OF COUNTY, is amended to include:

The COUNTY shall obtain any permits required for the construction of the Ditch

crossing.

Except as herein modified, changed and supplemented, all terms of the original agreement, dated April 2, 2007, shall continue in full force and effect.

Commissioner Heimlich asked if this is an additional $78,000 on top of the previous agreement. Mr. Ward said that it was not an additional, it is just raising the limits, amending the original agreement.

Commissioner Heimlich said that before the Commissioners act on it, he would like to have the Highway Superintendent and the County Attorney look it over first.

REPORTS

AT THIS TIME, Council President Richard “Buzz” Horton called the County Council members to order in joint session with the Commissioners. Board members present were:

President, Richard “Buzz” Horton Raymond “Butch” Kramer Dennis Carter

Kevin “Casey” Crabb Dennis Cain Gary Hendryx

Bruce Clear

BUILDING INSPECTOR

White County Building Inspector Dave Anderson appeared reporting that there were 88 permits issued last month and 64 of those permits will be inspected.

E-911

E-911 Director, Terri Conwell, appeared presenting her monthly report.

She said that the London-Witte Group is gathering information from all 92 counties in the State to put together information for the Wireless Board discussing the funding issues. Terri said that she attended a meeting in Warsaw at which Senator Brandt Hershman attended and she was very impressed. Senator Hershman chairs the regulatory flexibility committee and was surprised with his interest in the 911 issues.

Terri said that last month she reported that she had a dispatcher from Cass County interested in working in White County part-time. Terri said that she hired her and she only lasted two days.

Statistics: June July

911 Calls 1177 1170

Admin Calls 8778 9003

Amb Runs 209 234

ENVIRONMENTAL OFFICER

White County Environmental Officer John Raines appeared and presented the Complaints and Violations report for July, 2007.

He reported that the County Attorney George Loy sent two cases to court recently. The first case was completely cleaned up to the expectations of the court. The original fine was $15,000 which was reduced to $3,000. The fine will not be collected unless the property owner allows the property to return to its original condition.

The second case there is a $12,000 fine assessed on the property owner and he did not even show up for court. He’ll be fined this month if he doesn’t get it cleaned up.

HOSPITAL

White County Memorial Hospital CEO Paul Cardwell appeared presenting the Financial Report for July 2007.

Mr. Cardwell reported that it continues to be a consistent month with the revenue even though the expenses have been up.

They are trying to finish up the payment to Morrison Kattman Menzie, Inc., architecture firm for the Hospital project. Their goal before the end of this year was to have them paid off from the cash and operations account.

They continue to put away the $75,000 a month into the bond reserve, which is currently showing about $600,000+. Their first payment will be due in October 2008, which will be $1.5 million.

Paul discussed the health insurance costs continue to spiral for them and this continues to be a high concern. He also pointed out that the contractual allowances for the year are up to $660,000.

Construction seems to be going very well and the recent bid opening went very well.

LAKEVIEW HOME

Lakeview Home Director Kae Fuller said that the main thing that she needs taken care of right now at the home is the gas leak. Commissioner Burton said that he will have Larry Lear come out to fix it.

Kae mentioned that they are having a “Bean Blast” on the lakeside on September 8th from 4 p.m. to 7 p.m. The money raised will be used to help pay for the residents co-pay for prescriptions.

ECONOMIC DEVELOPMENT

White County Economic Development Director Connie Neininger presented the Director’s Report for July 2007’s Activity.

Connie said that she has started going around to the businesses with John MacOwan, Business Consultant hired thru the WIRED grant, requesting them to fill out a lengthy survey which will give them the information to put together a data base for all of the economic development businesses in the 14 Region. Their first industry was Marian/Polymer Science and the tour/survey took them about two hours.

Connie said that she continues to receive several internet leads looking for existing buildings up to 200,000 sq. feet.

Connie, Tracey, and Bob attended the Buyer’s Job Fair in Lafayette to see how other communities put their job fair together compared to ours. Currently, the Economic Action Team is working on our Career Fair which will be on Thursday, September 13, 2007, at the Brandywine.

Connie has been working with an Indiana Wind Working Group from Indianapolis looking at potential wind farms and looking at potential manufactures for the wind turbans.

With the WIRED group, Connie is working with a group on Bio-Energy which is related to bio-town but also bio-renewable resources in the region. They are looking at developing a “green worker certification”. There are blue collar and white collar workers and she is working with Ivy Tech to produce curriculum for green collar workers. If they can accomplish this, they will be the first in the nation!

A new project that the state has come out with is the “Hometown Competitiveness”. Connie said that she attended a conference and learned that it is a county-wide strategic comprehensive plan all rolled into one. They are looking at four components: entrepreneurship, youth involvement, leadership and asset development. They want to pull in community foundations, community development and economic development organizations. Connie said that she has put in our name, White County, as a potential six pilot communities in the state to help with this project.

CONTRACT BETWEEN THE COUNTY AND THE ECONOMIC DEVELOPMENT ORGANIZATION

Economic Development Director Connie Neininger explained that while she attended the last conference with the Indiana Economic Development Association, she found that the association has a group that is very involved with the legislation. From the last legislation session, the group has informed the association that if an Economic Development Organization is receiving public funds, such as CEDIT dollars, into their budget they will have to have a contract for services in order to exempt themselves from the Open Door Policy.

White County Attorney George Loy said that he did look the contract over and he said that he doesn’t have any problems with the contract at all. He noted that it has been revised to a one (1) year basis for calendar year 2007.

Connie said that the contract presented today is for the calendar year 2007. The Economic Development Organization did received $99,000 in CEDIT funds this year from the county, $10,000 in funds from the City of Monticello, and funds from the Town of Wolcott and the Town of Monon. The contract will be effective January 1 thru December 31 and it will be subject to renewal upon annual review by all parties.

White County Attorney George Loy said that this is nothing that the Commissioners and Council haven’t already committed themselves to. This is just a contract for their convenience so that the negotiations aren’t an open door.

The contract read as follows:

MEMORANDUM OF AGREEMENT FOR ASSISTANCE

IN PLANNING AND IMPLEMENTING

ECONOMIC DEVELOPMENT PROGRAMS

WHEREAS, the White County Council did adopt the County Economic Development Income Tax as set forth in Indiana Code 6-3.5-7, and

WHEREAS, the County of White, Indiana, shall receive funds from such tax, and

WHEREAS, the White County Economic Development Organization, Inc. is a not-for-profit corporation recognized as such by the Internal Revenue Service and the Indiana Department of Revenue, and

WHEREAS, the White County Economic Development Organization’s purpose is to assist the people and communities within the County of White, to develop and implement economic development projects and related activities, and

WHEREAS, the County Economic Development Income Tax Legislation permits the Board of Commissioners of White County and White County Council to contract with a not-for-profit corporation for the purpose of planning and implementing economic development programs, and

WHEREAS, the White County Economic Development Organization has the necessary expertise to advise and aid the Board of Commissioners and County Council of White County in the development of its economic plan and the implementation of the necessary economic development programs,

NOW THEREFORE, WITNESSETH:

The Board of Commissioners of the County of White and the White County Council, State of Indiana, do hereby retain the services of the White County Economic Development Organization, Inc. for the following purposes:

(a) Economic development planning,

(b) Economic development marketing,

(c) Industrial park planning and marketing,

(d) Tourism planning and promotion,

(e) Industrial/business retention and expansion,

(f) Economic development grant writing,

(g) Strategic Planning,

(h) Community revitalization and development consulting and planning.

The effective dates of this Memorandum of Agreement shall be January 1, 2007 to December 31, 2007, and is subject to renewal upon an annual review by the Board of Commissioners of White County and the White County Council.

As compensation to the White County Economic Development Organization, the County of White, State of Indiana, shall pay to the White County Economic Development Organization not less than 15% of White County’s Economic Development Income Tax allocation for the prior year, with the amount to be paid in 2007 to be $99,000.

After a short discussion, Council members suggested that they would like the 15% taken out of the contract and acknowledge that it’s $99,000 given for 2007.

  • Commissioner Burton made a motion to approve the contract between the County and the Economic Development Organization as amended with the 15% for 2007, seconded by Commissioner Heimlich. Vote: Unanimous

  • Councilman Kramer made a motion to approve the contract between the County and the Economic Development Organization as amended with the 15% for 2007, seconded by Councilman Crabb. Vote: Unanimous

VERASUN

Commissioner Heimlich said that this week they are signing the closing documents for the bonds on the VeraSun project. Jerimi Ullom, Barnes & Thornburg, and Todd Samuelson, Umbaugh and Associates, are here today with the documents to explain how this is all going to work.

Commissioner Heimlich reminded everyone that all of the documents have already been approved and today the documents are ready to be signed.

Jerimi Ullom, Barnes & Thornburg, presented the Trust and ??? Loan agreement. Mr. Ullom said that the revisions have been made on the interest on how the construction funds are allocated. The document that you are signing today includes the interest earnings on the construction which are funds that will approve the county’s benefit.

Mr. Ullom has also presented for signatures the closing certificates regarding the proceedings. He said that the plan as of today is to close and fund on August 23, 2007.

Commissioner Heimlich asked the Council members if they had any questions at this time. No response.

DISCUSSION OF THE LOCAL INCOME TAX

Angie Dvorak, Legislative Director with the Association of Indiana Counties, appeared before the Commissioners and Council distributing packets for the HEA 1478 – New Local Income Tax Option.

Angie stated that the legislator has provide HEA 1478 as an option to the county to move away from property taxes and move toward income taxes for funding services in their county. There are three different income taxes that a county can do. The county can choose the first option, the second option, or they can choose to do both of them. She said that you can’t do the third option “public safety”, unless you’ve done the other two.

Option A- “Levy” Growth Income Tax

If White County would want to do “Option 1”, we would basically be freezing our property tax levy’s, for a two year period, with the exception of the schools general, debt service and schools transportation, and receive our growth and funding for our budgets from income taxes. To do this, the State Department of Revenue and the Department of Local Government Finance says that White County would need a rate of .3. We would freeze the property tax and then start collecting the .3 income tax in October.

Angie said that the rate (.3) might seem a little high right now but the reason for this is because the first year the state is basically collecting double the rate to collect enough funds to set up a stabilization fund in case you had a major change in the county (employer moving out and incomes moving down).

Option B – Property Tax Relief Income Tax

Our county would be raising income taxes, up to 1%, and then providing that relief as property tax relief either to homestead properties, homestead and rental properties, or all classes of property.

If our county has done both options then we do have the option to do Option C.

Option C- Public Safety Income Tax

White County can pass up to a .25% of CAGIT which can be distributed to the county and any cities and towns. It’s a smaller income tax rate but it’s only going to counties, cities and towns, not schools, townships or libraries. This tax will provide funding for public safety to counties, cities and towns.

Public safety is very broadly defined, and includes court costs, probation, operating, pensions, communications systems, equipment, police and fire salaries and pensions, ambulance and emergency medical services, community corrections, etc.

Angie pointed out that the only way we could do the .25% is if we did at least a .25% on the second option. Whatever the rate you do on Option “B” will be the rate that you will use on Option “C”.

Angie provided a list of Counties that have adopted the new Local Option Income Tax:

Brown County: A: “Levy Growth” Income Tax (.2%); B: Property Tax Relief Income Tax (.5%) to homestead properties; C: Public Safety Income Tax (.25%)

Jasper County: A: “Levy Growth Income Tax (.3%); B: Property Tax Relief Income Tax (1.0%) to uniform PTRC; C: Public Safety Income Tax (.25%)

Jay County: A: Levy Growth Income Tax (.4%); B: Property Tax Relief Income Tax (.5%) to qualified residential property. C: Public Safety Income Tax (.05%)

Pulaski County: A. Levy Growth Income Tax (.4%); B: Property Tax Relief Income Tax (1.0%) to uniform PTRC; C: Public Safety Income Tax (0%)

Marion County: A: Levy Growth Income Tax (.2% 1st year/.3% 2nd year); C: Public Safety Income Tax (.45%)

Montgomery County: B: Property Tax Relief Income Tax (.10%) to homestead properties

Morgan County: A: Levy Growth Income Tax (.2%); B: Property Tax Relief Income Tax (1.0%) to uniform PTRC; C: Public Safety Income Tax (.25%)

Warren County: A: Levy Growth Income Tax (.3%); B: Property Tax Relief Income Tax (.25%) to uniform PRTC; C: Public Safety Income Tax (.25%)

Angie did say that we do have until October 1st to make the decision. If we choose not to do any of these options, she said that it is fine and we could wait until next year and adopt the ordinance between April thru August.

Council President Horton asked if there were any incentives for counties that act on this before October 1st. Angie explained that there are no incentives but there is the worry of what the changes will be from the legislatures from now and until then with the statue. She is hoping that these options will still be available for next year.

DISCUSSION OF THE IVY TECH LEASE AGREEMENT

White County Economic Development Director Connie Neininger appeared before the Commissioners and Council members saying that she continues to meet with Ivy Tech representatives asking them to consider putting an instructional center in the old Medical Arts building in Monticello.

Connie updated everyone on how this project started a year ago, spring of 2006. She presented supporting informational sheet showing why Ivy Tech is needed in White County. In her graphs, she showed that if a satellite center was located in Monticello it could serve 6 other counties (White, Carroll, Benton, Jasper, Pulaski and Newton). She said that there are 355 students from White County currently traveling to the Lafayette campus.

Connie pointed out that an Ivy Tech center just opened in Crawfordsville two years ago and they have exceeded all of their expectations for their enrollment. The enrollment that they had planned over a five year period has been met in two years. She said that we are anticipating 255 students in the first year and have 360 students in five years.

Connie presented a breakdown of the cost (prepared by Fanning/Howey Associates, Inc.) to renovate the building. At a worst case scenario, the total cost to renovate the Medical Arts building will be $1,461,267.06 plus another $440,000 that will be needed for the equipment and technology. A grant has been applied for from the WIRED grant in the amount of $441,600 to pay for all of the technology and equipment in the building.

The next step for the county would be to make a formal request to Ivy Tech. Connie said appraisers have performed a market analysis on the rent/lease payments that we could receive on the building. The appraisers looked at Monticello and reported that in downtown Monticello there are some buildings renting at $6 per square-foot, out on the North main area the rate is $8-$10 per square foot, and on 6th Street the totals are running $10-$12 per square foot.

Ivy Tech has told Connie that if we are within the market rate and we can justify what we are asking, then they would be more apt to approve that rate. Connie said that she has already talked to them about an $8 per square foot lease rate. The building is 11,800 square feet, so the County would be looking at a yearly lease of $94,400. The $8 per square foot now needs to be put in a formal offer along with the gross square footing.

Connie said that they have proposed for a 5-year lease with an additional 5-year renewal at an escalated rate for inflation. Originally, Ivy Tech talked about a 2-year lease but she has since gone back to them and said that 2 years will not work. Connie said, “We want a commitment of 10 years considering the amount of money the county is going to be putting in for the renovations.” Ivy Tech has met with their people in Indianapolis and requested her to prepare the proposal.

Ivy Tech is having a Regional Board meeting on September 10th, where they can take the proposal for approval. Since the lease agreement is over the $50,000 annually lease range, Ivy Tech will have to take it to Indianapolis for final approval. The State Board will have to make the final decision which they are meeting in October.

Connie said that depending on how much the County will support the project; donations from local businesses will be needed. She has already put packets together asking for donations from White County businesses.

Connie said that she would like the County Commissioners and Council to consider an actual dollar amount to support the project and also grant her approval of submitting the lease for a 5-year plus an additional 5 year lease for an estimate of $95,000 to Ivy Tech.

Commissioner Heimlich asked, “For the September 10th meeting, do they need the amount of our local commitment or do they need the lease with the $8 per square foot.” Connie said that they do need the lease for sure.

Councilman Horton asked Connie if she was looking for a cash donation from the County because he remembers $500,000 being discussed before.

Commissioner Heimlich said that discussion have been made before on how the money was going to be arranged for the renovation of the building. At one time, we had discussed $500,000 being borrowed from the landfill fund and then paying it back with the rent payments from Ivy Tech.

Connie said that the $500,000 was discussed when they were looking at the lease payment being $48,000 annually but since they are now talking about an $8 per square foot lease amount we are now up to $94,400 for the actual lease that they will be paying. With a lease payment of $95,000 annually for the next 10 years from Ivy Tech, Connie said that this is why she is asking the county to commit to the $950,000, to help support the renovation project.

Commissioner Heimlich said, “I don’t know where the Council is with this right now and I don’t know if we’re ready for this today, committing to a dollar figure, but we could submit the lease with the proposed $8 per square foot lease fee.”

Council Horton asked if the $8 per square foot with the lease would suffice Ivy Tech. Connie said that this would get us to the State Board meeting which is in October.

Councilman Kramer said that he doesn’t feel that they (Ivy Tech) are expecting the County to make a dollar commitment at this time. He knows that it would help Connie out tremendously!

Connie said that knowing the dollar amount that the County is going to put in will let us know exactly how much we need to raise and what work we need to do to get to that point. It’s very difficult to apply for grants and request money from the donors when we don’t know where a lot of the money is going to come from.

Commissioner Heimlich said that he has recently talked with Todd Samuelson, Umbaugh & Associates, about the work that they are doing for us on planning our future and he indicated that they are pretty well prepared to sit with us and give us their thoughts. Commissioner Heimlich would like to meet with them first before we commit a certain dollar amount.

Commissioner Heimlich asked if we need a motion for this formal offer on the contract.

Attorney George Loy said “I don’t think that there is anything that we can formally do today other than we have a consensus that $8 per square foot is okay for a lease amount.

Connie said that a cover letter could be submitted with the lease detailing the $8 per square foot lease amount and a commitment from the county with the terms of the lease being five years at $95,000 with an additional five years, increased according to the escalation based on the consumer price index, will be sent.

Attorney George Loy said that the additional five year is an option to Ivy Tech. Connie said that she has told Dr. David A. Bathe, Chancellor with Ivy Tech, that the County does not want it to be an option; it has to be a commitment.

Commissioner Heimlich stated that in the letter from Ivy Tech it states that they will only sign a lease for a five year term. Connie said that Dr. Bathe has told them (Ivy Tech) that if the County is expected to make a contribution to this project, then they need a long term commitment.

LOCAL INCOME TAX

Council President Horton told the Commissioners that Councilman Carter, Councilman Kramer and himself will be talking with Todd Samuelson, Umbaugh & Associates, to help them analyze some numbers for White County before they make a LOIT decision. Councilman Horton said that they will have the bill for this sent to the Commissioners and paid out of their budget.

At this time, there being no further business to come before the joint session, the Council adjourned to their own meeting room.

At this time, there being no further business to come before the Commissioners, their meeting was adjourned.

_______________________________ ____________________________ ____________________________

John C. Heimlich, President Steve Burton, Vice President Ron Schmierer, Member

ATTEST: _______________________________

Jill Guingrich, White County Auditor