IS IT TRUE August 9, 2013

IS IT TRUE August 9, 2013
IS IT TRUE the civic center moles tell us that the Mayor wants to call a meeting of the SAC committee (Salary Advisory Committee) next week?…this is the same committee that approved the “Golden 11” big salaries increase last year?…we can’t wait to see who the Mayor wants to give big raises to this coming year?…Evansville “King of Political Patronage” just can’t stop giving our tax dollars to his political buddies.
IS IT TRUE we hear from reliable sources within city government that the Mayor is planning to hold public hearings on the new proposed downtown convention hotel in all 6 political wards of the city?… he is doing this to give the appearance that he wants to get public opinions and input concerning the multi-million dollar hotel project from the citizens of Evansville? …we wonder why he wants to hold public hearings on this subject because he has already announced that he is supporting this project without reservations?…that we guess this is yet another public move on the Mayor part to help his re-election bid?…what these meetings are really about is for Mayor Winnecke to TELL those who have the gumption to get off the couch and attend WHAT HE IS GOING TO DO as opposed to seeking the approval or input of anyone outside of a very small circle of elites?…it is also expected that the Mayor will have the rooms packed with supporters and will have friendly questions and comments pre-loaded into the minds of these supporters?…these six meetings will be the only chance for the general public to speak out on the City of Evansville’s intention to hand out $37.5 Million like it was a Halloween treat?
IS IT TRUE that the published interchange between Councilman Conor O’Daniel and Parks Department Director Denise Johnson sort of took on the aura of a prize fight yesterday?…the topic of the discussion was the early closing of some public pools that according to Ms. Johnson was a budget issue that she could save $72,000 by doing?…Ms. Johnson who is a political patronage appointee who had no background at all in running a municipal parks department prior to her appointment by Mayor Winnecke was pretty short with Councilman O’Daniel who is an elected official but also has no management of a municipal parks department on his resume’?…Councilman O’Daniel as is his nature was respectful in his demeanor but ran into a sharp rebuttal?…this interchange was symptomatic of how Evansville has been run recently?…to have an elected official arguing with a political appointee over something very important that neither have any experience with is just how it goes here in River City?…this is a pathetic way to run anything?
IS IT TRUE the Wall Street Journal is reporting that the recent moves by the caretaker of the City of Detroit to alter the terms of the water and sewer bonds previously issued by the City is having a bad effect on municipal bond markets across the country?…the precedent that will in all likelihood be set by Detroit and other bankrupt cities to alter or default on municipal bonds is making the issuance of new bonds more difficult and more expensive?…this is going to have a material financial effect on all American cities and it will hit Evansville particularly hard when the EPA mandated sewer fix is financed?…if the interest rate ticks up only one percent the additional interest cost that will be borne by the ratepayers of Evansville will increase by between $5.5 Million and $10 Million per year?
IS IT TRUE with uncertainty in the bond markets, no answer on what the City request to do an abbreviated $545 Million repair (the 75% solution), and repairs looming with calcified water pipes, and non-walkable sidewalks of perhaps another Billion dollars, the City of Evansville is being frivolous and irresponsible by pursuing a strategy of maxing out the credit card for fun and games project that have nothing whatsoever to do with local government responsibilities?…it is just another day in the TWILIGHT ZONE?
Vectren announces leadership changes
Vectren Corporation Chairman, President and CEO Carl Chapman announced organizational changes today that will provide continued development for a number of colleagues in Vectren’s core leadership team and align with the company’s succession planning process. Approved by the company’s Board of Directors today and effective immediately, these changes will provide Vectren’s next generation of senior leadership continued exposure to multiple aspects of company operations, as well as align some departments that are better suited in the same business unit in order to operate more efficiently.
“We’re fortunate to have a number of talented, committed colleagues within the Vectren family that comprise our leadership team, and these changes ensure their continued development and ultimately, our company’s continued success,†said Chapman. “The new organization will be achieved essentially within the same cost structure as exists today due to the realignment of reporting structures and the previously announced departure of a senior staff member that was triggered by the June 2013 disposition of our investment in a wholesale natural gas marketing business.â€
Key promotions in the reorganization include Susan Hardwick, Bob Heidorn and Rick Schach, each of whom have assumed a senior vice president role and added responsibilities. In addition, Dan Bugher and Doug Petitt, current vice presidents, are assuming new roles and increased responsibilities, and Patrick Edwards, Chase Kelley, Angila Retherford and Misty Seaton are promoted from director to vice president roles.
An overview of these changes is as follows:
* Hardwick, vice president and controller, becomes senior vice president of finance and assistant treasurer where she retains responsibilities for the controller group and adds the treasury, investor relations and risk management teams.
* Heidorn, vice president and general counsel, is also promoted to senior vice president, general counsel and chief compliance officer and assistant secretary. He adds environmental affairs and the regulatory affairs teams to his organization.
* Schach, vice president of energy delivery, also assumes a senior vice president role over marketing and energy delivery. In this new position, he retains energy delivery oversight and adds several new areas of responsibility, including conservation, corporate communications, economic development, energy technologies, revenue management and sales.
* Bugher, Vectren’s vice president of performance management, adds the strategic sourcing group to his team.
* Vice President of Marketing and Conservation Petitt moves to chief information officer and vice president of information technology and customer service.
* Edwards, director of corporate audit, is promoted to vice president of corporate audit.
* Promoted to vice president of corporate communications, Kelley, the former director of corporate communications, retains public and media relations responsibilities and adds conservation marketing to her team. She will report to Schach.
* Retherford, the environmental affairs and sustainability director, has been promoted to vice president of environmental affairs and corporate sustainability and will report to Heidorn.
* The director of corporate tax and plant accounting, Seaton, has been promoted to vice president and controller where she will oversee all corporate accounting functions and report to Hardwick.
With this reorganization come new responsibilities for three other colleagues, including:
* Brad Ellsworth, president of Vectren Energy Delivery of Indiana – North, becomes president of Vectren Energy Delivery of Indiana – South and will work out of Vectren’s Evansville headquarters.
* Jon Luttrell, vice president of information technology and customer service, becomes the vice president of energy delivery and will report to Schach.
* Mike Roeder, vice president of corporate communications and government affairs, retains the government affairs role and becomes the president of Vectren Energy Delivery of Indiana – North. He will work in Vectren’s Indianapolis office.
About Vectren
Vectren Corporation (NYSE: VVC) is an energy holding company headquartered in Evansville, Ind. Vectren’s energy delivery subsidiaries provide gas and/or electricity to more than 1 million customers in adjoining service territories that cover nearly two-thirds of Indiana and west central Ohio. Vectren’s nonutility subsidiaries and affiliates currently offer energy-related products and services to customers throughout the U.S. These include infrastructure services, energy services and coal mining. To learn more about Vectren, visit www.vectren.com
Vanderburgh County Democratic Party 2013 Event Schedule
2013 Event Schedule Revised: 08/01/2013 |
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DAY/DATE |
TIME |
EVENT / INFORMATION |
Aug 7 |
8:00am – 9:30am |
Breakfast Honoring Senator Joe Donnelly nd
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Aug 9 |
12:00 Noon |
Missy Mosby’s 39th Birthday Party at the Races in Memory of Red Mosby
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Aug 14 |
6:30pm |
Vanderburgh County Democrat Club Monthly Meeting  Location: Rob Faulkner’s Office – 820 First Avenue Evansville, IN
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Aug 23 – 25 |
IDEA Weekend ï‚· Location: French Lick, IN
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Aug 28
Sep 6
Sep 12 Sep 12
11:30am – 1:00pm
7:00pm TBA
Women’s Equality Day Luncheon Celebrating Women’s Right To Vote
- ï‚· Â Location: The Centre-Ballroom A & B
- ï‚· Â Cost: $18 per person or $180 per table for lunch and Keynote Speaker Dr. Julianne Malveaux
- ï‚· Â Contact: www.womensequalitydayevansville.comEvansville-Vanderburgh County Human Relations Commission Annual Dinner
ï‚· Location: The Centre-Ballroom A
ï‚· Cost: $30 per person, featuring Martin R. Castro, Chairman, U.S. Commission on Civil Rights ï‚· Contact: City-County Human Relations Commission 812-436-4927Jefferson-Jackson Dinner
- ï‚· Â Details TBA
- ï‚· Â Please save the date!
Evansville Labor Temple Building Fund Golf Scramble
8:00am ï‚· Location: Fendrich Golf Course 1900 E Diamond Ave Evansville, IN
ï‚· Cost: Individual Golfer $75, Silver Sponsor $350 Foursome and 1 sign, Gold Sponsor $500 Foursome and 2
signs, Hole Sponsor $150, Lunch served immediately following scramble ï‚· Contact: Andrea @ Evansville Labor Temple 812-422-2552
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Sep 21 |
12:00 Noon – 5:00pm |
Rick Riney for Perry Township Trustee Fish Fry
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Sep 27 |
7:30am – 2:00pm |
Latino Summit “The Extraordinary Impact of Latinos in the United States† Location: Southern Indiana Career & Technical Center 1901 Lynch Rd Evansville, IN  Cost: $60 includes Lunch before Aug 31, $75 after Aug 31, Sponsorships are available  Contact: Maura Robinson 812-437-6914
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Oct 7 – 12 |
Westside Nut Club Fall Festival |
Indiana State Police Encourage Motorists to Slow Down in School Zones
Thousands of students will soon be heading back to school and Indiana State Police at Evansville want to remind all motorists the importance of slowing down and keeping a watchful eye for students.
Troopers also want to remind drivers they are required by law to stop and not pass a school bus when the red lights are flashing and the flashing stop arm is extended. Drivers are not required by law to stop for a school bus when they are approaching from the opposite direction and there is a concrete barrier or grassy median dividing the lanes. Drivers traveling on a multiple lane highway with no concrete barrier or grassy media are required to stop in all directions when a school bus stops to load or unload children.
Warrick County – Motorists that travel S.R. 261 between S.R. 66 and Old Plank Road are reminded that construction work and lane restrictions are still present. The speed limit on S.R. 261 in the construction zone is 35 mph. S.R. 261 along with S.R. 66, Oak Grove Road, Vann Road and Casey Road are all roadways that will see an increase number of vehicles in the morning and afternoon when school starts August 12th. Troopers anticipate an unusual high amount of traffic the first several days as parents choose to transport their younger children to school versus riding the school bus. In years past, the unusual heavy traffic has created traffic backups and delays in the area of S.R. 261 and Oak Grove Road near John H. Castle Elementary School and Castle North Middle School. Indiana State Police and Warrick County School Corporation personnel strongly encourage parents to allow their children to ride their designated school bus to school to help alleviate the high volume of traffic. Extra troopers will be present in the morning and afternoon to monitor traffic conditions and to ensure motorists are traveling safely.
Indiana State Police encourage the following safety tips:
• Slow down in school zones.
• Following other vehicles at a safe distance
• Don’t be a distracted driver. Stay off your cell phone.
• Expect brief delays around school areas.
VANDERBURGH COUNTY FELONY CHARGES
 Below is a list of felony cases that were filed by the Vanderburgh County Prosecutor’s Office on Wednesday, August 7, 2013.
Joshua Alexander           Possession of Cocaine-Class D Felony
Possession of Paraphernalia-Class A Misdemeanor
Visiting a Common Nuisance-Class B Misdemeanor
David Austin                     Receiving Stolen Property-Class D Felony
Ronald Berthold              Possession of Marijuana-Class A Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Public Intoxication-Class B Misdemeanor
Frank Elsperman             Operating a Vehicle While Intoxicated-Class C Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Beverly Greenwell        Neglect of a Dependent Resulting in Bodily Injury-Class C Felonies (Two Counts)
Operating a Vehicle While Intoxicated-Class C Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Operating a Vehicle While Intoxicated Endangering a Person
with a Passenger less than 18 Years of Age-Class D Felony
False Informing-Class B Misdemeanor
Frank Jackson                   Possession of Methamphetamine-Class D Felony
Resisting Law Enforcement-Class A Misdemeanors (Two Counts)
Tracy King                          Operating a Vehicle While Intoxicated-Class C Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Kayla Mangold                 Neglect of Dependent-Class C Felony
Maintaining a Common Nuisance-Class D Felony
Amber Martin                  Dealing in Methamphetamine-Class A Felony
Maintaining a Common Nuisance-Class D Felony
Possession of Paraphernalia-Class A Misdemeanor
Jennifer Majors               Unlawful Possession or Use of a Legend Drug-Class D Felony
Possession of Paraphernalia-Class A Misdemeanor
Robert Myers                   Dealing in Methamphetamine-Class A Felony
Maintaining a Common Nuisance-Class D Felony
Possession of Paraphernalia-Class A Misdemeanor
(Habitual Offender Enhancement)
Matthew Pedigo             Operating a Vehicle with an ACE or .15 or More-Class A
Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Operating a Vehicle While Intoxicated-Class C Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Stephen Rainey               Possession of Methamphetamine-Class D Felony
Receiving Stolen Property-Class D Felony
Teddy Roy                          Theft-Class D Felony
Possession of Methamphetamine-Class D Felony
Tevin Woodruff              Dealing in Methamphetamine-Class B Felony
Conspiracy to Commit Dealing in Methamphetamine-
Class B Felony
Neglect of Dependent-Class C Felony
Dealing in a Look-a-Like Substance-Class C Felony
Maintaining a Common Nuisance-Class D Felony
Criminal Recklessness-Class B Misdemeanor
(Habitual Offender Enhancement)
Theresa Alexander        Theft-Class D Felony
Jeffrey Bates                    Theft-Class D Felony
Receiving Stolen Property-Class D Felony
(Habitual Offender Enhancement)
Henry Boclair                   Maintaining a Common Nuisance-Class D Felony
Possession of Paraphernalia-Class A Misdemeanor
Harold Byer                       Child Molesting-Class C Felony
Attempted Child Molesting-Class C Felony
James Smith Jr                 Battery Resulting in Bodily Injury-Class A Misdemeanor
(Enhanced to D Felony Due to Prior Convictions)
Genean Young                 Theft-Class D Felony
For further information on the cases listed above, or any pending case, please contact Kyle Phernetton at 812.435.5688 or via e-mail at KPhernetton@vanderburghgov.org
Under Indiana law, all criminal defendants are considered to be innocent until proven guilty by a court of law.
Updated from 2010: The Executive Inn Dilemma When Valuations and Costs are Miles Apart

By Joe J. Wallace
Update: On Monday Mayor Winnecke announced a plan to start a downtown hotel by giving an out of town developer a gift of $37.5 Million with $20 Million of that amount as a direct supplement for the hotel itself. The article below is republished from 2010 as a reminder that planning and competence back in 2008 when the first of four rounds of half-baked announcements were made could have avoided the 5 years of false starts and embarrassments for the City of Evansville. In the end the subsidy of $20 Million was predicted to the penny by the article in the CCO years ago. Please recognize that at the time there was hope that the Ford Center would bring enough business downtown to attract a developer without a subsidy. Alas that did not happen and here we are in 2013 being asked to write a check for $20 Million as if it were 2008. In short valuations have not changed at all. The question of real interest is why the people of Evansville will not be 50% shareholders in this hotel as they are being asked to make an investment of 50% of the capital right up front.
Original Article: We all have encountered a time in life when there is something that we desire that just isn’t worth the cost associated with acquiring that object of our affection. It may be a toy for a child, an automotive accessory for a young man, that perfect pair of shoes, or an overpriced bauble of success for a captain of industry. The choice of whether to knowingly and deliberately overpay for what one desires in all of these cases has personal consequences but fortunately these consequences are only personal.
In decisions where taxpayer’s money is involved the consequences are distributed over the population at large, yet the decisions always seem to be made by the few or the one. Such a decision is facing the City of Evansville. The City-County Observer accurately predicted months ago that the Executive Inn would have to be torn down and that the financing for the project would not be secured.
Last week, The City of Evansville came face to face with what I will refer to as the Executive Inn Dilemma when Browning Investments of Indianapolis announced that they will be returning the Executive Inn to the City of Evansville on Monday August 17, 2010 at a meeting of the Evansville Redevelopment Commission. The reasons given were cost overruns due to some structural issues with the building and the fact that they have not been able to secure financing for the project after exhausting their options over many months.
Upon hearing this I did what I always do when curiosity gets the best of me and dug out some books from graduate school and did a little research on the internet. Given the conditions that David Dunn articulated to Dan Shaw of the Courier Press for a 250 room hotel, with rooms that rent for $120 per night, and an average occupancy of 60%, I used these initial conditions and assumed a 3% growth rate for the next 10 years. These assumptions lead to a value for the proposed hotel in the range of $18M to $22M with the variation coming from the efficiency range assumptions of the overall operation.
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Browning is on record from its 2008 announcement that a three star hotel of this size will cost around $35M to complete and that the recently disclosed problems will add several million dollars to the price tag. It is safe to conclude that undertaking this task will require a budget of at least $40M to complete.
A dilemma is a problem offering at least two solutions or possibilities, of which none is practically acceptable. One in this position has been traditionally described in America as being “between a rock and a hard place”. Here is the Executive Inn Dilemma:
• The Centre is Currently Losing Convention and Entertainment Revenue
• When the Arena is Built, Both will continue to Suffer Financially with no Convention Hotel
• Taxes from the Hotel are Committed to Pay off the Arena Bonds
• The Taxpayers were Promised a Three Star Hotel Financed Privately
• The Convention Hotel will Cost $40M+
• The Convention Hotel on Completion will have a Value of $20M +/- 10%
What Are We Going to Do???
First, given the value vs. cost proposition it is highly unlikely that there is going to be a white knight with deep pockets come to the rescue and take on a project that has a high probability of many years of losses and an instant $20M negative hit to the company balance sheet. For the same reason that a solid business like Browning could not find a way to make this happen, other for-profit entities will be quite bearish when deliberating on such an investment.
Secondly, If it is determined that Evansville must have a hotel right now, then the City of Evansville and Vanderburgh County, that owns the Centre are going to have to consider finding some way to arrange for financing for the Convention Hotel. This could come in the form of a bond issue to cover the construction with a leaseback agreement with an operator, a combination loan and grant to a developer, or a combination of other creative financing alternatives. The bottom line is that the City of Evansville probably can find a way to do this. The $40M question then becomes, is it prudent for the City of Evansville to pay $40M for something that has a value of $20M? As odd as it may seem, the answer is maybe. The aggregate economic benefit to the Arena, the Centre, and other Downtown tax generating businesses may just justify this.
The third option as pointed out so eloquently by Mizell Stewart in his Sunday editorial is to wait and see if the Arena delivers on the economic impacts that were so highly touted in the meetings that lead to the decision to build it. It is quite reasonable given the hyperbole surrounding the $128M Arena that it will have a $20M positive impact on the investment potential for a Convention Hotel. If that is the case, in a couple of years a private entity will eagerly embark upon this project.
I did a few more iterations on my valuation routine and here is what is needed to make a 250 room hotel achieve a value of $40M. The Convention Hotel will need to command between $250 and $300 per night and achieve an 80% – 90% occupancy rate. If the Arena can create commercial success that allows the rack rate to double and the occupancy to increase by 50% over the current assumptions, private investors will find this project attractive. That is no small requirement as Evansville has never been considered to be a market for $300 rooms.
Could the Executive Inn Dilemma have been avoided? No, but it could have been known before any shovel struck the ground for the Arena or any wrecking ball hit the Big E. The value calculations did not just appear. The value resulting from the assumptions that have been published has not changed in the last two years. There have been rumors of structural problems with the Executive Inn for many years. A test to have assessed that could have been done. It may have been done. The construction cost has also not changed dramatically. I must conclude that the Executive Inn Dilemma was unavoidable.
What is baffling though is why the analysis and the structural testing were not done three years ago when the planning process was begun. They could have been. If they had been, there may very well be a Convention Hotel under construction right now ready for a fall 2011 opening along with the Arena. A little more planning and testing could have avoided the anxieties of the last week along with any ire that the citizens of Evansville may feel if another bond issue is undertaken.
Evansville has created another classic paradox. Situations like this where the right hand does not know what the left hand is doing are known as Condorcet’s paradox or a paradox of voting. This is where a group of separately rational individuals or project managers may have preferences that are irrational in the aggregate.
Right now, the Big E has got to come down. The prospect of having this rotting reminder standing there looking like a scene from Will Smith’s “I am Legend†where he would capture zombies for medical research is just not an option. The people of Evansville and Vanderburgh County will have nearly $200M invested in the Centre and the new Arena. Both are showcase facilities and deserve to have something of class adjacent to them even if it is just a memorial garden or a park for the time being.
Notes for the Curious: I have included two websites below that are good tutorials on valuation methods and the equations used to reach valuations. For those who are curious and mathematically inclined valuation is a good skill to have as the same principles apply to parking garages, rental properties, and lease based capital equipment. Enjoy!!
http://www.hvs.com/Bookstore/HotelValuationTechniques.pdf
http://www.entrepreneur.com/tradejournals/article/120350582.html
Public Meeting Schedule Released Regarding Downtown Hotel Project: Mayor Winnecke to Make His Plans Known
Hotel Project Public meetings announced for month of August to share details
(EVANSVILLE, IN) – Members of the Evansville Redevelopment Commission (ERC) voted today to adopt a resolution approving a project development agreement with developer HCW of Branson, MO, for the Downtown Convention Hotel Project. The vote took place at a special ERC meeting.
Evansville Mayor Lloyd Winnecke said he is very pleased with the ERC’s action. He called today’s vote “a critical step†that clears the way for an ordinance approving funding for the project to be presented at the Evansville City Council meeting for first reading Monday, August 12, at 5:30 p.m.
The total cost of the project is $74 Million. The City would contribute $20 million toward the hotel and $17.5 million toward ancillary components, such as Sky bridges, Parking Garage, Retail Building, infrastructure and streetscape improvements and renovations to The Centre. Mayor Winnecke said he is confident the County will be contributing to the project.
The project is projected to create 831 jobs during construction and 235 permanent onsite jobs when the hotel and retail complex opens. The public investment will not impact property taxes and instead will be paid for using a combination of revenues from the Downtown TIF, Food and Beverage Tax, Innkeepers Tax and Riverboat Gaming. HCW will not receive tax abatement.
A series of public meetings have been scheduled throughout the city at various times and days to give the community an opportunity to hear details of the Downtown Hotel Project and ask questions. Mayor Winnecke plans to seek final approval of the deal at the September 9 City Council meeting and break ground on the project by late 2013.
Hotel Public Meeting Schedule
Tuesday, August 13th at 6:00 pm Red Bank Library, Howard Room 120 S. Red Bank Rd., 47712
Wednesday, August 14th at 6:00 pm McCullough Library, 5115 Washington Ave., 47715
Saturday, August 17th at 1:00 pm Concordia Lutheran Church, 2451 Stringtown Rd., 47711
Monday, August 19th at 6:00 pm Dexter Elementary School, Auditorium 917 S. Dexter Ave., 47714
Wednesday, August 21st at 10:00 am, Central Library, Browning Room B 200 S.E. M.L. King Jr. Blvd., 47708
Wednesday, August 21st at 6:00 pm North Park Library 960 Koehler Dr., 47710
Grandmother Arrested for DUI with 2-Year-Old Granddaughter
Vanderburgh County – Wednesday night, August 7, at approximately 11:00 p.m., Trooper Wes Alexander was driving his patrol car northbound on St. Joseph Avenue south of Mohr Road when the driver of a 2003 Chevrolet Tahoe drove left of center and nearly struck his patrol car. Trooper Alexander immediately turned around and stopped the driver, who was identified as Tamara A. Tevault, 49, of Evansville. Tevault’s two-year-old granddaughter was also in the vehicle. Further investigation revealed Tevault had taken Clonazepam, Hydrocodone and a morphine pill earlier. Due to her state of intoxication, she was arrested and taken to the Vanderburgh County Jail where she is currently being held without bond.