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BE IT REMEMBERED, that the White County Commissioners held a regular meeting on Monday July 3, 2006, at 8:00 a.m. in the Commissioners Conference room in the White County Courthouse.

Commissioners present were: President John C. Heimlich, Vice President Steve Burton, and Member O.D. “Bud” Ferguson. Also present was the White county Auditor Mary Jo Pool, White County Attorney George Loy and the Commissioners Assistant Donya Tirpak.

Commissioner John C. Heimlich called the meeting to order.

MINUTES

  • Commissioner Ferguson made a motion to approve the minutes from the regular meeting on June 19, 2006, as presented, seconded by Commissioner Burton. Vote: Unanimous

PAYROLL

  • Commissioner Burton made a motion to approve the payroll as presented for July 3, 2006, seconded by Commissioner Ferguson. Vote: Unanimous

CLAIMS

  • Commissioner Ferguson made a motion to allow and pay the claims as advertised, seconded by Commissioner Burton. Vote: Unanimous

HOSPITAL- CONSIDERATION OF RESOLUTION FOR THE TERMS AND CONDITIONS OF THE HOSPITAL LEASE JOINT WITH COUNTY COUNCIL

At this time, County Council President James Mann called the County Council to order as a special meeting in joint session with the County Commissioners. Council members present were:

James Mann Dennis Cain Dennis Carter

Richard “Buzz” Horton Kevin “Casey” Crabb Faye Lowring

Ronald Schmierer

At the last Commissioners meeting held on June 19th, the Council and Commissioners were given copies of Resolutions and a Lease agreement to be reviewed and discussed at today’s meeting.

Commissioner Heimlich said that he and Attorney George Loy went to Indianapolis last Friday to meet with the county’s financial advisor, Todd Samuelson of H.J. Umbaugh & Associates; Lisa Lee, the county’s legal counsel from Ice Miller; and representatives of the hospital to iron-out the details of this very complicated lease procedure.

Attorney George Loy said that the first concern was where the $180,000 payment to the hospital will come from once the hospital pays off the old bonds.

The county is pledging a tax back-up to secure the letter of credit for the hospital, but in addition, the county will also continue paying $180,000 per year which is currently paying off an existing bond. The existing bond has ten more years to go and the new proposal will reduce this to five years. The question has always been on how this can be financed.

Attorney Loy said that everyone at the meeting agreed that instead of having a bond for the $180,000 payment, that an annual additional appropriation loan to finance this would be best. This would be a five year loan, which the county will shop around for. The county would appropriate the funds necessary to payoff the loan. The maximum exposure for the county will realistically be 3 ½ years period because it’s going to take 1 ½ to construct the new hospital.

The second issue that was reviewed was the overall exposure to the county, in a worse case scenario. Rick Hall, bond counsel for the White County Memorial Hospital said that if the tax backup will have to be used on a temporary basis, the county would have to replenish the Reserve Fund. Regions Bank is requiring a Reserve Fund as part of a security that is equal to one year’s debt service, $1.5 million. This money would be used first to pay Regions Bank, but Regions is also requiring that this money remain in place. Mr. Hall explained that at any time these funds are tapped into they will have to be replenished. If the county doesn’t have any other money that they would want to use, they would have to levy a tax, which would take some time. It is possible that for a short term, you could tap into it slightly and the hospital could make up the difference and the county wouldn’t have to levy the tax. When there is a significant draw on the fund, than the county would have to accept it.

Councilman Dennis Cain asked that if the hospital should default, does the hospital go back to the county. Mr. Hall said that up to $750,000 a year up to five years will go back to the county. If the hospital is unable to pay during the course of the five year period the county agrees that they will levy in property tax up to $750,000 a year make up for the hospitals payment.

Attorney George Loy said that they are also confident of the county having the ultimate say-so of the disposition of the old facility, as well as, in the future of the new facility. The county will not have any control in running the hospital, but by statue the County Commissioners have ultimate say so over the disposition of the hospital. For example, the commissioners will have to approve any sale of the hospital to another entity.

Attorney Loy stressed that the county’s financial advisors feel comfortable with the hospitals financial posture and the ability to fund their commitment and Ice Miller feels comfortable with the terms of the lease agreement that are being discussed.

During last Friday’s meeting, Attorney Loy said that they also discussed the financing of the new medical arts building on the three acres of track. Attorney Loy said that they feel confident over the terms that the hospital agreed to, as far as, financing the new medical arts building.

There will be a new LLC formed where 51% will be owned by the hospital itself and the 49% will be owned by Pat McVady. Mr. McVady is not a member of the board and has no financial stake in the hospital. Mr. McVady will be donating his 49% interest back to the hospital over the course of a 15 year loan. They have requested and received very specific terms as far as the financing of the MAB.

Commissioner Heimlich said that if the commissioners and council feel comfortable with the resolutions and lease agreements then the order of events would be to adopt the resolutions (terms of the lease agreement) today.

Council President James Mann asked Councilman Horton if he had any questions or concerns with anything that he might not be satisfied with while representing the Council members during the conference call meeting. Councilman Horton said that it was a very productive meeting and thanked Commissioner Heimlich and the County Attorney George Loy for attending the meeting in Indianapolis to “iron-out” all of the details. Council Horton pointed out that you can’t totally eliminate risk because it is a county hospital but he truly feels that precautions have been taken in a worst-case-scenario and that the county should continue to move forward.

  • Commissioner Ferguson made a motion to approve Resolution No. 06-07-03-01 approving the terms and conditions of a lease with the White County Hospital Association and the Board of Trustees White County Memorial Hospital, seconded by Commissioner Burton. Vote: Unanimous

RESOLUTION NO. 06-07-03-01

RESOLUTION OF THE BOARD OF COMMISSIONERS OF WHITE COUNTY, INDIANA APPROVING THE TERMS AND CONDITIONS OF A LEASE WITH THE WHITE COUNTY HOSPITAL ASSOCIATION AND THE BOARD OF TRUSTEES WHITE COUNTY MEMORIAL HOSPITAL

WHEREAS, the Board of Commissioners of White County, Indiana (the “Board”) has given consideration to the acquisition, construction and equipping of a new county hospital facility, and related improvements (the “Project”); and

WHEREAS, the Board, being duly advised, finds that it is in the best interests of White County, Indiana (the “County”) and its citizens for the purpose of financing all or any portion of the Project to enter into a lease between the County and The Board of Trustees of White County Memorial Hospital (the “Hospital”), as lessees, and the White County Hospital Association (the “Association”), as lessor (the “Lease”) for all or a portion of the Project, in order to better serve the residents of the County; and

WHEREAS, the form of proposed Lease has been presented to the Board at this meeting; and

WHEREAS, the Hospital has provided the Board with financial information regarding the Hospital, and based on such information and upon the advice of the County’s financial advisor, the Board reasonably expects that the lease rentals under the Lease will be paid by the Hospital from net revenues of the Hospital (the “Net Revenues”); and

WHEREAS, as additional security to the extent the Net Revenues are insufficient to pay such lease rentals under the Lease , such lease rentals shall be payable from ad valorem property taxes to be levied on all taxable property in the County in an amount not to exceed $750,000 per year (the “County Pledge”) and

WHEREAS, the County Pledge automatically terminates on a date which is five (5) years from the date of issuance of bonds issued by the Association to finance the costs of acquisition construction and equipping the Project without further action by this Board in the form of a resolution extending such County Pledge for a term or terms not to exceed the term of the Lease; and

WHEREAS, the Board desires to approve the proposed Lease and publish notice of a public hearing and conduct a public hearing on the proposed Lease pursuant to IC 16-22-6-18; and

WHEREAS, after the public hearing the Board may adopt a resolution pursuant to IC 16-22-6-18 authorizing the execution of the proposed Lease on behalf of the County if it finds that the Lease is necessary and that the lease rentals provided for are fair and reasonable.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF WHITE COUNTY, INDIANA, AS FOLLOWS:

Section 1. Pursuant to IC 16-22-6-18, the Board hereby approves the terms and conditions of the proposed Lease, including the payment of lease rentals under the Lease from ad valorem property taxes to be levied on all taxable property in the County in an amount not to exceed $750,000 per year to the extent the Net Revenues are insufficient to pay such lease rentals. The Board hereby authorizes the publication of a notice of a public hearing of the Board, upon the approval by the Association, the Hospital, and the County Council of the terms and conditions of the Lease.

Section 2. Any member of the Council, the Auditor, and any member of the Board are hereby authorized, empowered and directed, on behalf of the County to take any other action as such individual deems necessary or desirable to effectuate the foregoing resolutions, and any actions heretofore made or taken be, and hereby are, ratified and approved.

Section 3. This Resolution shall be in full force and effect immediately upon adoption.

DULY PASSED on this 3rd day of July, 2006, by the Board of Commissioners of WHITE County, Indiana.

Commissioner Heimlich asked the Council if there is a motion from the County Council to adopt their resolution.

  • Councilman Dennis Carter made a motion to approve Resolution No. 06-07-01 approving the terms and conditions of a lease with the White County Hospital Association and the Board of Trustees White County Memorial Hospital, seconded by Councilwoman Faye Lowring. Vote: Unanimous

RESOLUTION NO. 06-07-01

RESOLUTION OF THE COUNTY COUNCIL OF WHITE COUNTY, INDIANA APPROVING THE TERMS AND CONDITIONS OF A LEASE WITH THE WHITE COUNTY HOSPITAL ASSOCIATION AND THE BOARD OF TRUSTEES WHITE COUNTY MEMORIAL HOSPITAL

WHEREAS, the County Council of White County, Indiana (the “Council”) has given consideration to the acquisition, construction, and equipping a new county hospital facility, and related improvements (the “Project”); and

WHEREAS, the Council, being duly advised, finds that it is in the best interests of White County, Indiana (the “County”) and its citizens for the purpose of financing all or any portion of the Project for the County to enter into a lease between the County and The Board of Trustees of White County Memorial Hospital (the “Hospital”), as lessees, and the White County Hospital Association (the “Association”), as lessor (the “Lease”) for all or a portion of the Project, in order to better serve the residents of the County; and

WHEREAS, the form of proposed Lease has been presented to the Council at this meeting; and

WHEREAS, the Hospital has provided the Council with financial information regarding the Hospital, and based on such information and upon the advice of the County’s financial advisor, the Council reasonably expects that the lease rentals under the Lease will be paid by the Hospital form net revenues of the Hospital (the “Net Revenues”); and

WHEREAS, as additional security to the extend the Net Revenues are insufficient for the payment of lease rentals under the lease, such lease rentals shall be payable from ad valorem property taxes to be levied on all taxable property in the County, in an amount not to exceed $750,000 per year (the “County Pledge”); and

WHEREAS, the County Pledge automatically terminates on a date which is five (5) years from the date of issuance of bonds issued by the Association to finance he costs of acquisition construction and equipping the Project without further action by this Council in the form of a resolution extending such County Pledge for a term or terms not to exceed the term of the Lease; and

WHEREAS, the Council desires to approve the proposed Lease.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNTY COUNCIL OF WHITE COUNTY, INDIANA, AS FOLLOWS:

Section 1. The Council hereby approves the terms and conditions of the proposed Lease pursuant to IC 16-22-6-18 and IC 16-22-6-39. following the holding of a public hearing on the Lease pursuant to IC 16-22-6-18 and the approval of the execution of the Lease by the Department of Local Government Finance, the Board of Commissioners of the County (the “Board”) is authorized to execute and deliver, and the Auditor of the County (the “Auditor”) is authorized to attest to such execution and delivery, the Lease is substantially the form presented at this meeting with such changes as the Board and the Auditor deem necessary or advisable.

Section 2. Any member of the Council, the Auditor, and any member of the Board are hereby authorized, empowered and directed, on behalf of the County to take any other action as such individual deems necessary or desirable to effectuate the foregoing resolutions including, but not limited to, the publication of notice of a public hearing on the proposed Lease and the holding of such a public hearing in accordance with IC 16-22-6-18, and any actions heretofore made or taken be, and hereby are, ratified and approved.

Section 3. This Resolution shall be in full force and effect immediately upon adoption.

DULY ADOPTED on this 3rd day of July, 2006, by the County Council of White County, Indiana.

APPOINTMENT TO WHITE COUNTY HOSPITAL ASSOCIATION BOARD

Commissioner Heimlich explained that now a meeting of the Hospital Association needs to be held, but before this can be done appointments need to be made. The five member Hospital Association board was formed in 1994 for the last hospital addition project. Being a part of that board in 1994, Phil Gutwein and Harry Voorhis have agreed to serve again. New appointing members agreeing to serve are Jeff Milligan and Chris Dold, both of Monticello.

Rick Hall said that a notice was published for the Hospital Association board to hold a public meeting today. Four members were present during the meeting (Voorhis, Gutwein, Milligan and Dold) which Commissioner Heimlich explained that this constitutes a quorum for a meeting.

The terms for the appointments will be:

Harry Voorhis, 209 S. Countrybrook Drive, Monticello 4 yr - expiring January 17, 2010

Phillip Gutwein, 1307 Indian Hills, Monticello 1 yr - expiring January 17, 2007

Jeff Milligan, 4339 E. Fairway Ct, Monticello 3 yr - expiring January 17, 2009

Chris Dold, 226 N. Illinois, Monticello 3 yr - expiring January 17, 2009

  • Commissioner Burton made a motion to appoint Phil Gutwein, Harry Voorhis, Jeff Milligan and Chris Dold to the White County Hospital Association board, seconded by Commissioner Ferguson. Vote: Unanimous

Rick Hall announced that in order to stay on track with time the Commissioners need to hold another public hearing to have the final approval of the lease before July 27, 2006. After a short discussion, the Commissioners agreed to hold a Special Meeting on July 21, 2006, at 1:00 p.m. to hold a public hearing.

APPOINTMENT - COMMON CONSTRUCTION WAGE BOARD

Commissioner Heimlich said that the Commissioners are required to make appointments to the Common Construction Wage Board for the hospital project. In the past the Commissioners have appointed Dave Diener and he has agreed to serve again for this project.

  • Commissioner Heimlich made a motion to appoint Dave Diener and Steve Burton to serve on the Common Construction Wage board for the hospital project, seconded by Commissioner Ferguson. Vote: Unanimous

There being no further business to come before the County Council, Council President James Mann adjourned the council’s meeting.

At this time, the Commissioners and Council recessed for break while the Hospital Association board held their public meeting in the Commissioners Conference room.

At 9:15 a.m., Commissioner Heimlich called the Commissioners meeting back to order.

TOBACCO PREVENTION GRANT – DEBBIE BOWSHER

Debbie Bowsher, White and Jasper County Tobacco Prevention Coordinator, appeared before the Commissioners requesting White County to serve as the lead agency to continue the tobacco prevention grants and funding for 2007. In the past the White County Partners for Drug Free White County was the lead agency but now they have sent notification to her stating that they no longer want to have this role. Debbie said that she will prepare and submit the grant (approving signatures from the Auditor) every year and file all of the necessary reports required. Claims will be submitted to the Commissioners approving her salary. Debbie said that there is a coalition that meets quarterly and everyone is invited to attend.

  • Commissioner Burton made a motion for White County to become the lead agency for the White County Tobacco Prevention Grant, seconded by Commissioner Ferguson. Vote: Unanimous

APPOINTMENT - WHITE COUNTY HOSPITAL BOARD

Commissioner Heimlich announced that the appointments for Janet Faker and Gary Cooley on the White County Hospital Board have expired on June 30th. The two board members do wish to be reappointed to serve another term for four years.

  • Commissioner Ferguson made a motion to appoint Janet Faker and Gary Cooley to serve on the White County Hospital Board effective July 1, 2006 and expiring on June 30, 2010, seconded by Commissioner Burton. Vote: Unanimous

APPOINTMENT TWIN LAKES REGIONAL SEWER DISTRICT

The appointing committee for the Twin Lakes Regional Sewer Board met on July 3, 2006, at 10:00 a.m. in the White County Courthouse, 2nd floor of the Commissioners Chambers.

Committee members present were: White County Commissioner John C. Heimlich, Commissioner Steve Burton, Commissioner O.D. “Bud” Ferguson, Union Township Trustee Erwin "Bernie" Cook, Liberty Township Trustee Walt Hough and Monon Township Trustee Nancy Downey.

Commissioner President Heimlich called the committee meeting to order.

Commissioner Heimlich announced that the purpose of today's meeting was to accept the resignation of a TLRSD board member and to make an appointment for the open seat.

Commissioner Heimlich said that Charles Burke, 4423 E. Penrod Drive, has submitted a letter of resignation back in April 2006 due to health problems. The Commissioners received two letters of interest for the vacancy which was advertised in the local papers. One of the applicants was a resident of Carroll County and the other applicant was from Thomas A. Pasquale, 4295 E. Penrod Drive, Monticello.

  • Commissioner Ferguson made a motion to accept the resignation of Charles Burke from the Twin Lakes Regional Sewer Board, seconded by Commissioner Burton. Vote: Unanimous

Commissioner Heimlich asked if there was anyone present today that is interested in serving on the board or have any questions or comments about this appointment.

Nancy Downey asked if this appointment was for a Carroll County appointment or White County. Commissioner Heimlich explained that there is now one Carroll County board member serving on the TLRSD board and that appointment is done by the Carroll County Commissioners and the Jefferson Township Trustee. Today’s appointment is for a White County resident only.

Tom Spackman, Manager of Indiana Beach, spoke in opposition to the appointment of Thomas Pasquale in terms of biased. Mr. Spackman said that Mr. Pasquale has voiced his opposition in court to Indiana Beach’s intent to render itself independent of the sewer district. He feels that Mr. Pasquale has a “lack of willingness to compromise”. Mr. Spackman would like to see someone appointed that is “more open-minded”.

Commissioner Heimlich said that Mr. Pasquale is the only letter of interest that has been received from the notice that was done two months ago and the committee can either make this appointment or keep the position open. This position has been vacant since February or March.

Commissioner Burton asked the committee if they know Mr. Pasquale. Mr. Hough said that he has know him for a while and found him to be sincere. Mr. Hough would like to know why Mr. Pasquale is against Indiana Beach.

Nancy Downey said that she knows Mr. Pasquale through the Lakes Association and up to this point she had thought that he was an excellent appointment. Nancy feels that he is a good business man.

Commissioner Burton asked if they (committee) felt that Mr. Pasquale is the type of person to “sit at the table” exchanging information and truly listen to the situation.

Commissioner Heimlich suggested to the committee members that know Mr. Pasquale to talk with him and encourage him to be open minded.

  • Commissioner Burton made a motion to accept the appointment of Thomas Pasquale to fill the unexpired term of Charles Burke on the Twin Lakes Regional Sewer Board expiring on December 31, 2009, seconded by Monon Township Trustee Nancy Downey. Vote: 5 Yes and 1 No (Commissioner Ferguson)

There being no further business to come before the appointing committee of the Twin Lakes Regional Sewer District board, their meeting was adjourned.

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

__________________________ ____________________________ ____________________________

John C. Heimlich, President Steve Burton, Vice President O.D. “Bud” Ferguson, Member

ATTEST: __________________________________

White County Auditor Mary Jo Pool