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County Commissioners June 5, 2012 Meeting Agenda

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1. Call to Order
2. Attendance
3. Pledge of Allegiance
4. Permission to Open Bids
• VC12-05-02: Ohio Street Bridge Approach Repairs
• VC12-05-01: Concrete Repair for Various Roads
5. Action Items
• Evansville ARC Update
• Southwestern Healthcare, Inc. Presentation
• Bohannon Estates
i. Resolution
ii. Inter-local Agreement
iii.Accompanying Grant Application Documents
• First Reading of CO. 06-12-003: An Ordinance Amending Chapter 2.40 of the Vanderburgh County Code Concerning
the County Health Department
• Second/ Final Reading of CO.05-12-004: Ordinance Regulating Public and Semi-Public Swimming Pools
• Contracts, Agreements and Leases
i. Sheriff: County Jail Dental Agreement with Dr. Barbara Perkins
ii. Commissioners:
Byrne Justice Assistance Grant Agreement
Agreement with Harding Shymanski & Company for Financial Review of 2011 Centre Finances
Handled by SMG
iii.Prosecutor: Adult Protective Services Agreement Amendment
iv. Health Department: Memo of Understanding with St. Mary’s Health System of America, Inc., EVSC and
ECHO Community Health Care, Inc. Regarding the Back to School Blitz

6. Department Head Reports
7. New Business
• Keep Evansville Beautiful
• Building Authority Request for Burdette Park Passes
8. Old Business
9. Public Comment
10. Consent Items
• Approval of Prior Minutes
i. May 15, 2012 meeting minutes
ii. May 15, 2012 special meeting minutes
• Employment Changes
• Auditor: Approval of May 2012 A/P Vouchers
• Commissioners:
i. Notice to Abutting owners of 611 E. Maryland Street
ii. 1211 N. Fulton Deed
• Evansville ARC
i. April 2012 Report of Activities
ii. March and April 2012 Meeting Minutes
• County Ozone Officer: March and April Monthly Reports
• Public Defender State Public Defender commission Reimbursement for 1/1/12- 3/3/12
• SWCD: May 2012 Department Head Report

• County Engineer:
i. Pay Request No. 152 for TIF Projects in the amount of $311,368.34
ii. Waiver of Partial Mortgage Release for four properties the County is purchasing for next phase of N. Green
River Road Widening
iii.Department Head Report
11. Rezoning
• Second/ Final Reading of VC-3-2011: JBI Construction, 6000 Millersburg
• Second/ Final Reading of VC-2-2012: Deaconess Hospital, 8600 N. Kentucky Ave
• Second/ Final Reading of VC-3-2012: Green River Investments, 2400-2430 S. Green River Road
12. Adjournment

Weinzapfel for Indiana: Pre-Primary Financial Report

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Former Mayor Jonathan Weinzapfel collected no contributions other than from the Weinzapfel for Mayor campaign that provided over $505,000 to the start-up political action committee.

During the filing period only four candidates for office received any financial contributions from the Weinzapfel for Indiana PAC. The four were Democrat candidates Donnelly and Crooks for Congress, White for State Senate, and Steve Melcher for County Commissioner. The total contributions reported by the PAC were $1,350.00 while operating expenses were only $168.38.

Link to full filing

https://campaignfinance.in.gov/INCF/TempDocs/a599d78f-2e36-42ec-977d-eb4833ace624.pdf

IS IT TRUE June 3, 2012

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The Mole #??

IS IT TRUE June 3, 2012

IS IT TRUE this past week brought a number of things to the table that were bound to have gotten there at some point?…one of those was the public acknowledgement that Earthcare Energy has missed the May installment of $8,000 on the $200,000 loan that was hastily approved by the Economic Development Loan Committee that was formed the day before the vote and populated with people who were primed to vote yes as Mayor Winnecke instructed them to?…when the 3rd payment is missed that is a sure sign that the loan should have never been made in the first place?…anyone including Evansville City Council President Connie Robinson and Mayor Lloyd Winnecke who was naïve enough to express confidence that this loan would be repaid AFTER THE CITY DECIDED TO ABORT THE DEAL must have been intoxicated when they made such a statement?…this Earthcare Energy deal is far from over and the READY, FIRE, AIM mentality that allowed it to go forward without even the basics of VETTING must end forever if Evansville is to even have a fighting chance at competent leadership?…it is time for the City Council to pass some kind of VETTING RESOLUTION as it is clear that the people in charge are either unwilling or incapable of restraining the emotional appeal of the press conference in favor of the deliberate act of investigative VETTING?

IS IT TRUE the first time Earthcare Energy was supposedly placed into default on the contract with the City of Evansville the method used to communicate the default was the public news conference?…it is widely believed that Earthcare has still not been notified in writing of the two reasons that the loan was not closed by the City?…this is just amateurish on the part of the City of Evansville?…that Earthcare asserts that they are in compliance with the two items the Mayor stated they have failed on AND the words of the contract seem to be in Earthcare’s favor?…we wonder if missing this payment by 5 minutes really constituted a reason for a news release to the Courier Press with other media sources frozen out?…most loan agreements have remedies and late charges and that this may be the first time in history that a payment missed by 5 minutes resulted in a press release?…this is just another example of amateurish policy designed to get a headline by the Winnecke Administration?…the missed payment should have been no surprise to anyone and now is the time to find a real path out of this mess that hopefully does not end with Earthcare Energy owning the Civic Center?

IS IT TRUE one of the biggest early indicators of the trend in the race to be the next President of the United States will happen in Wisconsin on Tuesday?…if Governor Scott Walker prevails over the largely Democrat and Union driven efforts to remove him from office by a healthy margin, that Wisconsin may just go for Romney in the general election?…Romney has passed Obama in every poll that is taken nationally using “likely” voters as opposed to “registered” voters?…in the key battleground state of Ohio Romney has come from a double digit deficit to a 2% lead in the last month?…if Ohio, Wisconsin, and traditionally Republican Virginia flip to Romney it will be very hard for the President to secure a 2nd term?…that the momentum nationally especially with the weak jobs report is clearly with Mr. Romney?…we are about to be treated to an unnecessarily dirty campaign from both sides?…that these two candidates are quite clean as politicians go so the CCO hopes that the campaigns will cease with the single digit failures of Bain Capital investments and the musings of the Reverend Jeremiah Wright and get on with the real issues of whether business or government is the way out of our economic malaise created by 12 years of irresponsible spending?

Earthcare Energy Misses May Loan Payment

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The CCO has learned that Earthcare Energy has missed the third $8,000 loan payment on the $200,000 note that was approved by the Economic Development Loan Committee before the Evansville City Council had an opportunity for public discussion.

Earthcare learned through the media in early May that Mayor Lloyd Winnecke had decided that they had not done what they needed to so the $4.8 Million loan could close. Earthcare disputes Mayor Winnecke’s assertion and has yet to acknowledge reciept of any written notice of default.

Earthcare has put the City on notice of a lawsuit and asserts that they fulfilled the terms of the contract with the City of Evansville.

Dissecting the Contract between the City of Evansville and Earthcare Energy

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The contract between the City of Evansville and Earthcare Energy that was signed by Mayor Winnecke on on behalf of the City and Ken Haney as Chairman and CEO of Earthcare Energyon March 1, 2012 is for the most part standard and easy to understand. There are some items in the contract that merit further review based on the fact that it is now widely reported that the deal is dead.

The first revelation is on page 5 where it clearly states that “Earthcare shall have a period of thirty (30) days to cure such failure, default, or breach.” Contrary to the sentiment in Evansville this deal may not be dead yet. Earthcare may well come back to assert that they have the cure to the items that the city has stated that they are in default for.

The City of Evansville specifically has stated that the default was because of two deficiencies.

The first was Earthcare’s failure to secure a DOE guarantee for the $5 Million loan that the City was committing to make to Earthcare when they had satisfied the pre-funding obligations. Obligation (1) reads “Prior to consummation of the loan transaction contemplated hereby, Earthcare shall APPLY FOR and take all actions necessary to secure from the DOE a loan guarantee of the Loan to be made by the City to Earthcare.” On page 2 of the contract it explicitly states that “The parties hereto both agree and acknowledge that securing a DOE loan guarantee may not be feasible prior to the execution of the agreements” and if it is not secured Earthcare will keep working diligently to try to get a DOE guarantee.

Will making an application for a loan guarantee be that difficult to do to cure Obligation (1)?

With respect to Earthcare’s failure to deliver to the City of Evansville the “license agreement” with Langson Energy on page 6 under the section titled “Conditions to Closing”, Condition #7 reads as follows: “Prior to the consummation of the Loan transaction, Earthcare shall prvide to the City A LETTER from Langson Energy addressed to Mayor Winnecke which outlines the agreement between Langson Energy and EarthCare with respect to Langson Energy’s intellectual property.”

There is no reference to any license agreement that was cited yesterday as reason for default. Of course the term “intellectual property” could and may be interpretted as meaning both the license agreement and the patent that has been represented as having been applied for. The question will be, can Earthcare come back during the next 30 days with a “license agreement” or a “Letter from Langson Energy” as the contract states and claim that they have cured the deficiency?

What is NOT in the contract that is somewhat confusing is any “Condition” or “Requirement” that the Evansville City Council has to vote to approve the loan. Quite frankly, there is no reference to the City Council anywhere in the contract.

There are other details that seem to have been distorted by public statements including the alleged $2.5 Million payments to be made to the City of Evansville by Earthcare in a profit sharing arrangement. The contract has no reference to any profit sharing but does refer in Article 8 of the Obligations of Earthcare to a $0.005 per kWh fee to be paid to the City by Earthcare for power generated under PPA’s with Vectren or other customers for a period of 15 years and not to exceed a total of $32 Million. A quick calculation reveals that to capture the full $32 Million that Earthcare would have to generate 6.4 Billion kWh through their devices and sell it back to utilities.

Perhaps in view of yesterday’s results the most haunting words in the contract are the words that comprise Item 7 of the Miscellaneous Items.

“Earthcare hereby acknowledges and agrees that (a)the City would be irreparable injured in the event of a breach by Earthcare of its obligations hereunder, and (b)monetary damages may not be an adequate remedy for the City in the event of a beach by Earthcare hereunder and (c) in the event of a breach by Earthcare hereunder, the City shall be entitled to seek specific performance or other injunctive relief with respect thereto (without posting of a bond), in addition to any other remedy that the City may have in equity or at law.”

Well, the breach is upon the City of Evansville and there is now 30 days for Earthcare to cure such breaches. Hopefully, for the sake of the people of Evansville this shall pass without further discourse. There is however plenty of opportunity for discourse if either party wishes to be discourseful.

On Monday night City Councilwoman Stephanie Riley will be introducing a resolution to rescind their loan approval and the Council will once again vote for or against a loan to Earthcare. The omission of Council approval as a condition of consummation is bumfuddling. So what if they rescind it, does that not just turn the clock back to when this was signed in the first place?

Of course the burning question is how was the City of Evansville able to justify making a $200,000 loan to Earthcare through the DMD? It would seem since this contract calls for a $5 Million loan that the City has violated its own contract by making that loan. It will be interesting to see what the $184,000 of those funds that have not yet been recovered were used for.

All of this could have been avoided by requiring that the LICENSE AGREEMENT be on file before signing this contract. Please Evansville, learn something about vetting and due diligence before doing another thing involving the use of taxpayer dollars. Put a process in place that makes sense and make sure that the implementation is done in a way and by people who do not have the potential for conflicts of interest.

Source: Contract Supplied to the CCO by the City of Evansville on May 9, 2012 after a press conference regarding the default of Earthcare

Letter Agreement Between City of Evansville and Earthcare Energy

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the City County Observer has secured and would like to make available to our readers the February 28th letter agreement between Earthcare Energy and the city of Evansville. It is Earthcare’s failure to perform according to the conditions set forth in this agreement that was given by Mayor Winnecke as the reasons for declaring Earthcare to be in default.

Link to Letter:

City_Earthcare_Letter02282012

Source: Office of Mayor Lloyd Winnecke

IS IT TRUE June 1, 2012

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IS IT TRUE June 1, 2012

Better Put our Headstones Back Crypt Keeper

IS IT TRUE Moody’s has downgraded the bonds that were sold to finance the YUM Center in Louisville to JUNK BOND STATUS?…the reasons given for the downgrade are lower than anticipated revenue from the Tax Increment Financing (TIF) District that was established to partially service the debt AND higher than anticipated operating costs?…the YUM CENTER has enjoyed good top line cash flow with the University of Louisville men’s and women’s basketball teams as the anchor tenants both of whom are in the top 5 in the country in their respective sports?…that UL women’s basketball is #2 in the country for attendance and the men sell out every game in the YUM CENTER?…that the concerts at YUM have been the marquee concerts like Lady Gaga and Rush that also sell out the house at over $100 per ticket?…that the magnificent top line is not enough to keep the debt from being downgraded to JUNK?…that we are wondering how long it will be until the Ford Center debt is up for a grade review and how it will stack up to Louisville?

IS IT TRUE CCO Mole #14 tells us that earlier this year a highly respected and credible investor floated the idea of doing a complete refurbishment of the McCurdy Hotel into a classic hotel that reflects the era in which it was built?…that this refurbishment idea would result in at least the number of rooms that the Winnecke Administration paid $75,000 to learn were needed by Hunden Strategic Partners?…that we hear they were not even interested enough to return the phone call as they are bound and determined to build a new FREEWAY HOTEL next to the Ford Center as that is the only way they think The Centre can be saved?…the financial package needed to get the McCurdy resurrected will be less than will be needed to attract a developer/operator that meets the desired criteria to do a new hotel?…that we also hear that the financial world in downtown Fort Wayne is not all wine and roses as far as the Convention Center and the new Hotels are concerned?…that there is a growing realization in the convention industry that the days of big conventions going to one horse towns is over?…that as conventions go Evansville is and will always be a one horse town compared to places like Las Vegas, Los Angeles, and New York City?

IS IT TRUE that the CCO has done some follow up on the situation with the overturned grave stones at the City of Evansville cemeteries?…that this is a big problem as there are many tombstones turned over?…that in the case of the Oak Hill Cemetery we have confirmed that the gates are not being locked at the end of the day?…we have had a number of calls and emails from concerned citizens letting us know that they have complained about the fact that the gates are not locked only to be dismissed by the cemetery manager?…we also have a contract and it explicitly states in the contract that the owner of the each grave is responsible for making sure that the monument on that grave is maintained?…we had to read that one a couple of times for it to sink in that in most cases the person or people in the grave are responsible to maintain their own monument?…Jay Leno should come to town and put together a batch of jokes on that little nuance?…we bet they have never gotten one phone call from the dead to complain about the condition of the headstones?…there seems to be some humor in everything?…that the laziness associated with not locking those gates is not one of the things that should be laughed about?…that if the Mayor appointed crypt keeper is too darn lazy to lock the gates at night then Mayor Winnecke should find another crypt keeper?…that finally the contract still states that Jonathan Weinzapfel is the Mayor of Evansville?…we guess the City that was willing to hand $5 Million to an out to town business can’t afford new cover pages to accurately reflect who the Mayor is?…that could just be a lazy manager too?

Mole #3 Learns Winnecke will Recommend Roberts Stadium Demolition

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CCO Mole #3 just called from Margaritaville in Florida to break the long awaited news that Mayor Winnecke will be recommending to the Parks Board that Roberts Stadium should meet the wrecking ball.

This is a developing story so check back for updates.

Roberts Stadium on Parks Board Agenda

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BOARD OF PARK COMMISSIONERS
 
REGULAR MEETING
KEVIN WINTERNHEIMER CHAMBERS
ROOM 301, CIVIC CENTER COMPLEX
WEDNESDAY, JUNE 6, 2012
12:00 NOON
 
AGENDA
 
1.​CALL TO ORDER
 
2.​MINUTES​May 16, 2012
 
3.​CONSENT AGENDA ​    
             a.   Request Re:  Approve and Execute Park Use Application by WNS for “Music on the Hill” on
                   August 11, 2012.  – Foster
             b.   Request Re:  Approve and Execute Park Use Application by WNS for “Wandering Owl Wine          
                   and Beer Trail” on October 20, 2012. – Foster
             c.   Request Re:  Approve Family Camp Out at Wesselman Woods for “Camp Out & About” on
                   July 27 – 28, 2012. – Foster  
             d.   Request Re:  Approve and Execute Independent Skating Pro Contract with Sylvia Niemeier
                   at Swonder Ice Arena. – Crook
             e.   Request Re:  Execute Agreement with Midwest Roofing and Insulation Co. Inc. for Helfrich
                   Pool Bathhouse. – Boberg
              f.   Request Re:  Execute Agreement with JH Rudolph & Co., Inc. for Cart Paths at Fendrich and
                   McDonald Golf Courses. – Boberg
             h.   Request Re:  Approve and Execute Landscape Maintenance License with Steve and Susan
                   Harp for Kids Kingdom Playground. – Boberg
              i.   Request Re:  Approve and Execute Landscape Maintenance License with Freeman, Will &
                   Niemeier, Inc. for Franklin and Wabash Median. – Boberg    
                                                                                             
4.       OLD BUSINESS    
           a.   Request Re:  Roberts Stadium Recommendation. – Mayor Lloyd Winnecke
           b.   Request Re:  Award Bids for Paving, Sealing and Striping Parking Lots at Various Parks and
                 Golf Courses. – Boberg
           c.   Request Re:  Approve and Execute Change Order #2 with Natare Corporation for Garvin
                 Pool. – Boberg  
                        
5.       NEW BUSINESS
           a.   Request Re:  Award and Execute Agreement for Grading of Wesselman Park Batting Cages. –
                 Boberg
           b.   Request Re:  Approve Budget Transfers and CIP Reprioritizations. – Boberg  
          c. Request Re:  Any Other Business the Board Wishes to Consider and Public Comments.    
 
6.        REPORTS​
          a.   Dan Schall, Park Maintenance
          b.   Denise Johnson, Executive Director
                   
7.        ACCEPTANCE OF PAYROLL AND VENDOR CLAIMS
 
8.       ADJOURN​

Moody’s Downgrades Evansville Housing Bonds

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MOODY’S DOWNGRADES EVANSVILLE, IN MULTIFAMILY HOUSING REVENUE BONDS (GNMA COLLATERALIZED MORTGAGE LOAN – VILLAGE COMMUNITY PARTNERS III, LP PROJECT) SERIES 2001 FROM Baa1 TO Ba2
Global Credit Research – 16 Jun 2011
APPROXIMATELY $1.5 MILLION OF OUTSTANDING DEBT AFFECTED
Village Community Partners III, L.P.
Fully Supported
IN

Opinion
NEW YORK, Jun 16, 2011 — Moody’s Investors Service has downgraded Evansville, IN Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan – Village Community Partners III, LP Project) Series 2001 from Baa1 to Ba2, affecting approximately $1,481,000 of outstanding debt.

RATING RATIONALE

The bonds are primarily secured by revenues from mortgage-backed securities (“MBS”) guaranteed as to full and timely payment of principal and interest by the Government National Mortgage Association (“GNMA”). Other sources of funds, such as certain accounts held with the trustee and investment earnings on those accounts, also provide security.

The rating action results from a projected revenue deficiency originally identified in our Special Comment titled “Moody’s Completes Review of Housing Transactions Affected by Low Reinvestment Earnings” published in June 2010. A recent cash flow review, assuming 0% reinvestment rates consistent with both the current interest rate environment and our methodology update titled “Change in Interest Rate Assumptions for Housing Transactions Which Rely on Investment Earnings Prompted by Unprecedented Low Interest Rates” published in November 2009, demonstrates that the projected stress date has not changed and is now less than 3 years into the future. Pursuant to our methodology, the transaction’s current cash flow projections are not consistent with its former rating.

DETAILED CREDIT DISCUSSION

We project numerous cash flow insufficiencies throughout the life of the transaction, the earliest of which could occur in 6/2014. Although frequent, the expected losses of these shortfalls are very small relative to the debt service payable during the respective periods. The sum of all present value losses is approximately $4,765, or 0.32% of outstanding bonds.

The projections used to determine the expected loss and stress date assumes 0% reinvestment rates throughout the life of the deal. Higher interest rates would benefit the transaction by providing additional returns on excess cash that would be used to fulfill debt service. At this time we have identified break-even reinvestment rates of approximately 0.25% and 2.30% to avoid a default in 2014 and throughout the life of the deal, respectively.

METHODOLOGY

The principal methodology used in this rating was Methodology Update: Ratings that Rely on Guaranteed Investment Contracts published in December 2008.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings and public information.

Moody’s Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

Moody’s adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody’s considers to be reliable including, when appropriate, independent third-party sources. However, Moody’s is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody’s Investors Service’s Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody’s Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Analysts
Shane Mullin
Analyst
Public Finance Group
Moody’s Investors Service

Gregory W. Lipitz
Backup Analyst
Public Finance Group
Moody’s Investors Service

Contacts

Journalists: (212) 553-0376
Research Clients: (212) 553-1653

Moody’s Investors Service
250 Greenwich Street
New York, NY 10007
USA

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