City Councilman Al LindseyTo My Constituents and the People of Evansville,
I have been following the Johnson Controls proposal with much interest. As the agreement was entered into without a vote of the Evansville City Council and before my term of service began, I would like to join my fellow Councilman John Friend in his call to study this very closely and confirm that it will be financially in the best interest of the people of Evansville and the 6th Ward that I represent before this is allowed to go forward.
Councilman Friend has my respect as a CPA and as a good steward of taxpayer dollars. If he says this deal needs to be vetted, he can count on my support for his recommendation.
Al Lindsey
Evansville City Councilman, 6th Ward
This letter published by the CCO without edit, bias, or opinnion.
COMMON COUNCIL OF THE CITY OF EVANSVILLE, IN
CIVIC CENTER, ONE MARTIN LUTHER KING JR BLVD
ROOM 301
EVANSVILLE, IN 47708
June 7, 2012
Umbaugh & Associates,
Certified Public Accountants, LLP
8365 Keystone Crossing
Indianapolis, IN 46240
Attn: Mr. John Seever, CPA
IN RE: Indiana Utility Regulatory Commission
Evansville Water & Sewer Department
Docket Number 44123
Mr. Seever,
In reference to your firm’s testimony per the above matter, as the Finance Chairman for the Common Council of the City of Evansville, I have reviewed the submitted documentation as filed. According to your firm’s expert testimony, as evidenced by your submission, precisely, Exhibit DLB-1, page 7, (Joint Petitioner Case-in_Chief), Mr. Douglas Baldessari, an Expert Witness under the employment of your firm entered testimony whereby his analysis spanned twenty years resulting in savings to the ratepayers of our City equaling $87,492 though out the entire project, not simply each year, but, cumulative. And most amazing, the investment total, including Interest During Construction (IDC) and Allowance for Issuance and Rounding equals approximately $57,000,000 or .15% of the risk capital.
Within the approximate $57,000,000, includes IDC of $4,275,180 plus the allowance for issuance of $1,101,388 totaling $5,376,568. The water portion of the IDC and Allowance per your documents is stated at $1,437,150 and $381,252, respectively. Per your firm’s amortization, page 7 titled Comparison of Guaranteed Savings From JCI (Johnson Control, Inc.) Contract & Estimated Installment Payments, your exhibit starts with the total cost of the project including capitalized interest (IDC) and the allowance for issuance equals $56,690,000 which was previously rounded to $57 million, includes the interest for the two year as capitalized interest amounting to $718,575 per each year, totaling $1,437,150. Now, with the total cost including the IDC & Allowance already included in the amortization, the interest of $1,437,150 would be in error in considering the savings. Thus, instead of the project saving our ratepayers $87,492, in fact, the project will not save but COST them $1,349,658, clearly in violation of the Indiana statutes. This is apparent, and, as the finance chairman of the Council, demands immediate correction to be filed with the IURC. For consistently sake, if the IDC was correctly included, then why not the Allowance? My opinion is supported by several of our CPA colleagues.
In further review, at the time of executing the contract on November 28, 2011 by the president of the utility board, it appears that the cost of the Network Infrastructure was a guaranteed maximum price and the minutes clearly indicate that the cost was not yet determined and, subsequently, when those cost were determined, 21 miles of fiber optics was excluded; thus, addition costs driving the cost vs. savings.
In review of your document, page 137, shows non-measured savings of $468,646 as a result of terminating seven positions, but, in fact, those positions will be relocated. Even though, you may consider attrition, your exhibit fails to phase out those positions though out the periods. We will not instantly save those dollars. Considering the margin of .15%, this, in my, opinion would be material.
Further review reveals that your exhibit (DLB-1, page 4) allocates the new meter cost of $21,684,738, 50% to Waterworks and 50% to Sewer. Obviously, the utility does not meter waste? Then, why would $10,842,369 be associated to Sewer, and, even if, somehow, the allocation could be rationalized, why doesn’t 50% of the savings be allocated to Sewer?
Please indicate the time period for the correction of the capital interest issue. Of course, if you desire to discuss the above my office number is 812-473-3388 extension 229 and the email address is jfriend@johnfriendandco.com.
Sincerely,
John E. Friend, CPA, CVA
Finance Chairman
Common Council of Evansville, IN
CC: Indiana Utility Regulatory Commission
Hon Lloyd Winnecke, Mayor of Evansville, IN
Mr. Jeff Hatfield, President of the Utility Board
City Clerk Office for the City of Evansville, IN
Attachments
Source: Anonymous and posted without opinion, edit, or bias by the CCO
IS IT TRUE there is something the CCO had pointed out yesterday that is one rather well developed talent of the Winnecke Administration and that this talent was attributed to Mayor Winnecke himself?…this talent is the talent to find a way out of difficult situations?…one of Mayor Winnecke’s first acts as Mayor was commission a complete review of the downtown Convention Hotel project that had been turned into a compromised and ill-defined mess by Mayor Weinzapfel and his minions in the Evansville Redevelopment Commission?…the end result of that effort is that today we are back to ground ZERO with none of the baggage that came with it?…the Earthcare Energy deal while a mess made by Mayor Winnecke is another example of what one may refer to as a “creative escape†from a self made albatross?…the McCurdy is now destined for private ownership?…that we do not think that this talent as a Houdini of creative escape is coincidence?…that the CCO does recognize and wants to acknowledge Mayor Winnecke’s adeptness at CHEATING THE HANGMAN when nooses have been slipped around his neck?
T-Shirt from the Artful Dodger CollectionIS IT TRUE there is on very large and rotting albatross that is still hanging around the neck of Mayor Winnecke courtesy of the last hour shenanigans of Mayor Weinzapfel?…that albatross is called the Johnson Controls deal?…that once again Mayor Winnecke is faced with a card dealt to him from the bottom of the deck by Mayor Weinzapfel and he needs to put his best “Artful Dodger†hat on to dance through this $80 Million mine field?…it was not Johnson Controls that did this, it was the previous administration?…the Johnson Controls deal may turn out to be okay but that all private VETTING efforts are pointing to unverifiable savings at a significant enough level to justify having a very deep dive into the details of the deal?…if and we do mean if the details of the deal do not deliver what they have been advertised to deliver then this deal like the others can be terminated for cause without any negative consequence?…that we are cheering for you Mayor Winnecke?…we have faith that your talent at dodging bullets will serve you well if you surround yourself with a good VETTING TEAM and get this done?…the mine field is smaller than it was when you took office and that you are only a few more tiptoes through the exploding tulips that Mayor Weinzapfel left for you away from being able to be your own person?
IS IT TRUE the choices that Mayor Winnecke is making with respect to the $2.9 Million windfall that is now in the coffers of the City of Evansville are actually very good choices that will help the City do what it is supposed to do for its citizens?…that spending “found†money on sidewalks and safety infrastructure that are both NEEDED due to years of neglect are good choices?…saving the remaining $1.7 Million for future capital expense needs is also wise?…that such practical thrift should be the rule and not the exception across the board?…the CCO hopes to see more practical decisions that the City of Evansville can afford from the Winnecke Administration?…practicality will do away with the spend everything on games and temples to sport mentality of the Weinzapfel Administration?…things like an $8 Million park at Roberts Stadium and the proposed $2 Million Centennial Park albatross that is another holdover from the last administration are just not practical or affordable at this time?…fixing some of the parks that we already have like Garvin Park may be entirely affordable if the powers that be have the courage to maintain what we have as opposed to building new?…that existing parks are a terrible thing to waste?
IS IT TRUE that Earthcare Energy has continued to perform as they are contractually required to do so with respect to the $200,000 loan that was approved without City Council knowledge (except for Connie Robinson who was on the loan committee) just before the self-congratulatory press conference at Park 41?…that in the two previous months Earthcare saw fit to pay $8,000 per month to retire some of the loan principle but the May installment was interest only in the amount of $381 as required for 24 months?…at this point it is safe to assume that Earthcare Energy can continue to make interest only payments for the next 21 months to keep this account current?…there is another little tidbit with respect to this loan that only requires that the principle be repaid when revenue is produced by Earthcare Energy from the Power Purchase Agreement that was used as collateral for the loan?…it is safe to assume that this number given the current state of confusion will be ZERO for the foreseeable future?…that it is even possible that if the loan agreement is sufficiently terrible as other documents have been that Earthcare may be able to keep making interest only payments in perpetuity (forever) and never have to pay back the City of Evansville?…that the City County Observer calls for the release of this loan agreement so the people of Evansville can see just how well their money is being managed?
IS IT TRUE that many among us are starting to put Earthcare Energy behind us as just another dumb butt attack by City of Evansville governance and may even be breathing a sigh of relief that this one was only a small mistake in terms of dollars and the big picture?…the deal made by Mayor Weinzapfel with Johnson Controls during his last days in power is an $80 Million deal that carries more risk, less accountability, and an ill-defined benefit?…as is becoming an Evansville tradition THIS DEAL WAS NOT VETTED EITHER?…there are private VETTORS much in the same spirit as City Councilwoman Stephanie Riley was on the Earthcare deal who are exposing many questionable claims in the nearly 300 page Johnson Controls deal?…that before selling a single bond or writing a single check this Johnson Controls deal needs to be professionally VETTED by someone of competence who is not beholding to the City or stands to benefit from Johnson Controls?…that VETTING this proposal will probably cost much less than the $105,000 that Hunden Strategic Partners has billed the City of Evansville regarding a downtown Convention Hotel that is thus far only VAPOR?
IS IT TRUE City Councilman John Friend, CPA has been advocating for a VETTING fund for over a year now and it is time for him to start demanding that VETTING efforts be funded and done before bringing any resolution forward to fund any capital project at all?…Councilman Friend’s squawking did not stop the ERC from getting a hotel deal through the City Council on 3 different occasions and did not stop the City Council from voting 5 – 4 to make a $4.8 Million loan to Earthcare Energy?…that it seems as though the elected representatives of the City of Evansville from the Mayor’s office to the Council, to the appointed boards and surrogates do not have the sense to VET nor the willingness to pay for VETTING with the sole exception of the hotel that was only VETTED when the CCO and the public exposed it for being delusional?…it is time to start taking the spending of taxpayer dollars seriously and the people who have acted cavalier or obstructive to VETTING efforts need to get busy and support good stewardship of public money?
Comedian Ron “Tater Salad†White, best known as the cigar smoking, scotch drinking
funnyman from the “Blue Collar Comedy†phenomenon returns to Evansville with his new
stand-up show, Moral Compass.
White has achieved two Grammy nominations, a Gold Record, two of the top rated one-
hour specials in Comedy Central history, a book that appeared on the New York Times
Best Seller List, and CD and DVD sales of over 10 million units.
Tickets are $44.75 and $54.75, and available at The Centre Box Office, and all Ticketmaster
outlets.
Welcomes Hoosiers to World War II Memorial on D-Day Anniversary
(Washington, D.C.) – Congressman Larry Bucshon (IN-08) released the following comment after meeting with World War II veterans from Indiana’s 8th Congressional District at the World War II Memorial in Washington, D.C. The veterans were participating in an Honor Flight that coincided with the 68th Anniversary of D-Day.
Congressman Bucshon (IN-08) states:
“It was an honor to greet World War II veterans from Indiana on the 68th Anniversary of D-Day. We should continue to honor the Greatest Generation that fought for our freedoms. I would like to thank the Honor Flight network for bringing these heroes to Washington, D.C. Also, I would like to thank all World War II veterans for their service.â€
Background:
The Honor Flight was sponsored by the Ford Motor Company Fund. This year they supported two flights of WWII veterans that traveled to Washington, D.C. on the Anniversary of D-Day, Wednesday, June 6, 2012 to see the WWII Memorial- free of charge.
Four residents from the 8th District were on a flight from Louisville, KY that brought 30 WWII veterans from Indiana and Kentucky to Washington, D.C.
A drawing for an attendance prize will be awarded at the close of the meeting… you must be present to win.
The Tri-State Genealogical Society will have a brief business meeting including Nomination and Election of Officers for the forthcoming fiscal year, followed by our program:
Becky West, TSGS Program Chair, has announced that the program will feature
“Genealogy Humor” and an appearance by Indiana Bones.
This is a program you don’t want to miss, we will be looking forward to seeing you at the meeting and enjoying a very interesting and entertaining program.
You do not have to be a member to come and participate at the society’s monthly meetings (except, no meetings in July and August).
IMPORTANT NOTICE: This time of the year, weather conditions may cause the society to cancel meetings… the decision to cancel usually is determined the day of the meeting, providing short notice. Since a bad weather system may develop later in the day (or that night), check our blog (http://tsgsblog.blogspot.com/) for cancellation notice or call Willard Library (812-425-4309).
Jordan Baer of Tri-State-Tomorrow and the author of the blog dedicated to saving Roberts Stadium has created a great video in tribute to Roberts. Enjoy!
